Senate 2816: Relating to Community Associations

CS for CS

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S2816    GENERAL BILL/CS/CS by Community Affairs; Regulated Industries;
Villalobos (Similar CS/H 1373, Compare CS/H 0433, CS/CS/S 0902)
Community Associations [EPCC]; revises required contents of condominium
declaration; provides authorization for condominium associations to
access units for specified purposes; revises procedures used in
preparing association's annual financial report; prohibits associations
from restricting use of hurricane shutters in certain circumstances,
etc. Amends Chs. 718, 720. EFFECTIVE DATE: 07/01/2007.
03/05/07 SENATE Filed
03/20/07 SENATE Introduced, referred to Regulated Industries; Community
                  Affairs; Judiciary; General Government Appropriations
                  -SJ 00196
04/11/07 SENATE On Committee agenda-- Regulated Industries, 04/16/07, 1:30
                  pm, 110-S
04/16/07 SENATE CS by Regulated Industries; YEAS 7 NAYS 2 -SJ 00439; CS
                  read 1st time on 04/18/07 -SJ 00453
04/18/07 SENATE Pending reference review under Rule 4.7(2); Now in Community
                  Affairs -SJ 00439
04/19/07 SENATE On Committee agenda-- Community Affairs, 04/24/07, 1:45 pm,
                  412-K
04/24/07 SENATE CS/CS by Community Affairs; YEAS 7 NAYS 0 -SJ 00545; CS
                  read 1st time on 04/25/07 -SJ 00563
04/25/07 SENATE Pending reference review under Rule 4.7(2)
04/26/07 SENATE Now in Judiciary -SJ 00545

Florida Senate - 2007 CS for CS for SB 2816 By the Committees on Community Affairs; Regulated Industries; and Senator Villalobos 578-2666-07 

1 A bill to be entitled 

2 An act relating to community associations; 

3 amending s. 718.104, F.S.; revising required 

4 contents of a condominium declaration; amending 

5 s. 718.110, F.S.; requiring that notice of 

6 proposed amendments be provided to unit owners; 

7 amending s. 718.111, F.S.; providing 

8 authorization for condominium associations to 

9 access units for specified purposes; requiring

10 that official records of the association be

11 made available at certain locations; providing

12 that certain records may not be accessible to

13 unit owners; removing the requirement that the

14 association's annual financial report be

15 provided only to unit owners providing a 

16 written request for the report; restricting a

17 condominium association from waiving a

18 financial report for more than 2 years;

19 providing duties for condominium boards of

20 administration in the event of certain

21 casualties; providing that certain assessments

22 may be made against unit owners under certain

23 conditions; amending s. 718.112, F.S.;

24 authorizing the board or membership to

25 determine the composition of the board of 

26 administration under certain circumstances;

27 requiring members of the board of

28 administration to be unit owners, absent

29 provisions indicating board member

30 requirements; requiring the board to respond to

31 certain inquiries by certified mail, return 

 

Page

1 receipt requested; authorizing a condominium 

2 association to respond only twice every 30 days 

3 to unit owner inquiries; providing board of 

4 administration and unit owners' meeting 

5 requirements; requiring the board to address 

6 certain agenda items proposed by a petition of 

7 20 percent of the unit owners; revising notice 

8 procedures; revising the terms of office and 

9 reelection of the members of a condominium 

10 association board; providing that certain 

11 persons providing notice of a meeting must 

12 provide an affidavit affirming that the notices 

13 were delivered; authorizing the association's 

14 representative to provide certain notices; 

15 providing for the securing of ballots; revising 

16 procedures relating to the filling of a vacancy 

17 on the board; removing a provision allowing an 

18 association to provide for different voting and 

19 election procedures in its bylaws; providing 

20 unit owners with the right to have items placed 

21 on the agenda of the annual meeting and voted 

22 upon under certain conditions; requiring the 

23 association to prepare an annual budget of 

24 estimated revenues and expenses; requiring the 

25 budget to include reserve accounts for certain 

26 purposes; requiring that certain ballot 

27 statements contain certain statements; 

28 requiring a vote to provide for no reserves or 

29 percentage of reserves to be made at certain 

30 times; authorizing the association to use 

31 reserve funds for nonscheduled purposes under 

Page

1 certain conditions; prohibiting the board from 

2 applying for or accepting certain loans or 

3 lines of credit; requiring that common expenses 

4 be paid by the developer during a specified 

5 time; requiring that assessments be made 

6 against units on a quarter-annual or more 

7 frequent basis; providing that certain 

8 provisions may not preclude the right of an 

9 association to accelerate assessments of 

10 certain owners delinquent in payment of common 

11 expenses; providing that accelerated 

12 assessments are due and payable after the claim 

13 of lien is filed; revising assessment 

14 requirements; deleting the requirement that the 

15 bylaws include an element for mandatory 

16 nonbinding arbitration; amending s. 718.113

17 F.S.; requiring boards of administration to 

18 adopt or restate hurricane shutter 

19 specifications yearly at the annual meeting; 

20 authorizing the board to install hurricane 

21 protection that complies with the applicable 

22 building code; requiring the board to have the 

23 condominium buildings periodically inspected 

24 for structural and electrical soundness by a 

25 professional engineer or professional architect 

26 registered in the state; requiring the 

27 inspector to provide a report to the 

28 association and unit owners; prohibiting the 

29 board from prohibiting the display of certain 

30 religious items on the front-door area of a 

31 unit; creating s. 718.1224, F.S.; prohibiting 

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1 certain lawsuits arising from unit owners' 

2 appearances and presentations before a 

3 governmental entity; providing a definition; 

4 providing for award of damages and attorney's 

5 fees; amending s. 718.1255, F.S.; requiring the 

6 division to promptly refer certain cases to 

7 mediation; creating s. 718.1257, F.S.; 

8 providing that condominium unit owners and 

9 renters have the right to own a companion 

10 animal and to have that animal live with them 

11 under specified conditions; amending s. 

12 718.302, F.S.; conforming provisions; amending 

13 s. 718.3025, F.S.; providing requirements for 

14 certain contracts between a party contracting 

15 to provide maintenance or management services 

16 and an association; amending s. 718.3026, F.S.; 

17 providing that certain contracts between a 

18 service provider and an association may not be 

19 for a term in excess of 3 years and may not 

20 contain an automatic renewal clause; requiring 

21 that certain contracts for construction occur 

22 under the advisement of an attorney; amending 

23 s. 718.303, F.S.; requiring hearings to levy 

24 fines to be held before a committee of unit 

25 owners who are not members of the board; 

26 requiring that persons subject to certain 

27 actions be notified of their violations in a 

28 certain manner; providing a timeframe within 

29 which a person must respond; authorizing the

30 budget to include reserve accounts for capital 

31 expenditures and deferred maintenance; 

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1 providing a formula for calculating the amount 

2 to be reserved; authorizing the association to 

3 adjust replacement reserve assessments 

4 annually; authorizing the developer to vote to 

5 waive the reserves or reduce the funding of 

6 reserves for a certain period; revising 

7 provisions relating to financial reporting; 

8 revising time periods in which the association 

9 must complete its reporting; amending s. 

10 718.404, F.S.; providing for retroactive 

11 application of certain provisions; amending s. 

12 718.501, F.S.; requiring the division to 

13 prepare and disseminate a prospectus and other 

14 information for use by owners, purchasers, 

15 lessees, and developers of residential 

16 condominiums; providing that the board member 

17 training provided by the division shall be 

18 provided in conjunction with recommendations by 

19 the ombudsman; providing powers and duties of 

20 the division with respect to association 

21 violations; requiring associations to provide 

22 certain notice and to participate in certain 

23 educational training; amending s. 718.5011

24 F.S.; restricting location of the Office of the 

25 Condominium Ombudsman; providing that the 

26 ombudsman shall exercise his or her 

27 policymaking and other functions independently 

28 of the Department of Business and Professional 

29 Regulation and without approval or control of 

30 the department; requiring the department to 

31 render administrative support for certain 

Page 5 

1 matters; requiring that revenues collected by 

2 the department for the Office of the 

3 Condominium Ombudsman be deposited in a 

4 separate fund or account under specified 

5 conditions; amending s. 718.5012, F.S.; 

6 removing requirements that the ombudsman 

7 develop certain policies and procedures; 

8 providing additional powers and duties of the 

9 ombudsman; amending s. 718.504,F.S.; revising 

10 and providing information to be contained in 

11 the condominium prospectus or offering 

12 circular; amending s. 720.303, F.S.; revising 

13 procedures used in preparing the association's 

14 annual financial report; amending s. 720.307

15 F.S., relating to transition of association 

16 control in a community; revising criteria with 

17 respect to election of members to the board of 

18 directors; requiring certain developers and 

19 owners to convey title to all common areas 

20 prior to turnover; revising requirements for 

21 turnover of documents; requiring that certain 

22 information be included in the records and that 

23 the records be prepared in a specified manner; 

24 revising application to include certain 

25 associations; amending s. 720.3075, F.S.; 

26 prohibiting associations from restricting the 

27 use of hurricane shutters in certain 

28 circumstances; requiring a developer who rents 

29 or leases any unsold units in a condominium to 

30 pay all monthly maintenance fees on those units 

31 to the association as if the units were owned 

Page 6 

1 by individual owners; providing an effective 

2 date. 

4 Be It Enacted by the Legislature of the State of Florida: 

6 Section 1. Paragraph (f) of subsection (4) of section 

7 718.104, Florida Statutes, is amended to read: 

8 718.104 Creation of condominiums; contents of 

9 declaration.--Every condominium created in this state shall be 

10 created pursuant to this chapter. 

11 (4) The declaration must contain or provide for the 

12 following matters: 

13 (f) The undivided share of ownership of the common 

14 elements and common surplus of the condominium that is 

15 appurtenant to each unit stated as a percentage or a fraction 

16 of the whole. In the declaration of condominium for 

17 residential condominiums created after April 1, 2007 1992, the 

18 ownership share of the common elements assigned to each 

19 residential unit shall be based either upon the total square 

20 footage of each residential unit in uniform relationship to 

21 the total square footage of each other residential unit in the 

22 condominium or on an equal fractional basis

23 Section 2. Paragraph (d) is added to subsection (1) of 

24 section 718.110, Florida Statutes, to read: 

25 718.110 Amendment of declaration; correction of error 

26 or omission in declaration by circuit court.-- 

27 (1) 

28 (d) Notice of a proposed amendment to the declaration 

29 shall be sent to the unit owner by certified mail. 

30 Section 3. Subsection (5), paragraph (b) of subsection 

31 (7), paragraphs (b) and (c) of subsection (12), and subsection 

Page 7 

1 (13) of section 718.111, Florida Statutes, are amended, and 

2 subsection (15) is added to that section, to read: 

3 718.111 The association.-- 

4 (5) RIGHT OF ACCESS TO UNITS.--The association has the 

5 irrevocable right of access to each unit during reasonable 

6 hours, when necessary for the maintenance, repair, or 

7 replacement of any common elements or of any portion of a unit 

8 to be maintained by the association pursuant to the 

9 declaration or as necessary to prevent damage to the common 

10 elements or to a unit or units. Except in cases of emergency, 

11 the association must give the unit owner 24 hours' advance 

12 written notice of intent to access the unit. 

13 (7) TITLE TO PROPERTY.-- 

14 (b) Subject to the provisions of s. 718.112(2)(m), the 

15 association, through its board, has the limited power to 

16 convey a portion of the common elements to a condemning 

17 authority for the purposes of providing utility easements, 

18 right-of-way expansion, or other public purposes, whether 

19 negotiated or as a result of eminent domain proceedings. 

20 (12) OFFICIAL RECORDS.-- 

21 (b) The official records of the association shall be 

22 maintained with the state, the records of the association 

23 shall be made available to a unit owner, at a location within 

24 the county in which the condominium property is located, 

25 within 5 working days after receipt of written request by the 

26 board or its designee. This paragraph may be complied with by 

27 having a copy of the official records of the association 

28 available for inspection or copying on the condominium 

29 property or association property. 

30 (c) The official records of the association are open 

31 to inspection by any association member or the authorized 

Page 8 

1 representative of such member at all reasonable times. The 

2 right to inspect the records includes the right to make or 

3 obtain copies, at the reasonable expense, if any, of the 

4 association member. The association may adopt reasonable rules 

5 regarding the frequency, time, location, notice, and manner of 

6 record inspections and copying. The failure of an association 

7 to provide the records within 10 working days after receipt of 

8 a written request shall create a rebuttable presumption that 

9 the association willfully failed to comply with this 

10 paragraph. A unit owner who is denied access to official 

11 records is entitled to the actual damages or minimum damages 

12 for the association's willful failure to comply with this 

13 paragraph. The minimum damages shall be $50 per calendar day 

14 up to 10 days, the calculation to begin on the 11th working 

15 day after receipt of the written request. The failure to 

16 permit inspection of the association records as provided 

17 herein entitles any person prevailing in an enforcement action 

18 to recover reasonable attorney's fees from the person in 

19 control of the records who, directly or indirectly, knowingly 

20 denied access to the records for inspection. The association 

21 shall maintain an adequate number of copies of the 

22 declaration, articles of incorporation, bylaws, and rules, and 

23 all amendments to each of the foregoing, as well as the 

24 question and answer sheet provided for in s. 718.504 and 

25 year-end financial information required in this section on the 

26 condominium property to ensure their availability to unit 

27 owners and prospective purchasers, and may charge its actual 

28 costs for preparing and furnishing these documents to those 

29 requesting the same. Notwithstanding the provisions of this 

30 paragraph, the following records shall not be accessible to 

31 unit owners: 

Page 9 

1 1. Any record protected by the lawyer-client privilege 

2 as described in s. 90.502; and any record protected by the 

3 work-product privilege, including any record prepared by an 

4 association attorney or prepared at the attorney's express 

5 direction; which reflects a mental impression, conclusion, 

6 litigation strategy, or legal theory of the attorney or the 

7 association, and which was prepared exclusively for civil or 

8 criminal litigation or for adversarial administrative 

9 proceedings, or which was prepared in anticipation of imminent 

10 civil or criminal litigation or imminent adversarial 

11 administrative proceedings until the conclusion of the 

12 litigation or adversarial administrative proceedings. 

13 2. Information obtained by an association in 

14 connection with the approval of the lease, sale, or other 

15 transfer of a unit. 

16 3. Medical records of unit owners. 

17 4. Social security numbers, driver's license numbers,  

18 credit card numbers, and other personal identifying  

19 information of unit owners, occupants, or tenants.  

20 (13) FINANCIAL REPORTING.--Within 90 days after the 

21 end of the fiscal year, or annually on a date provided in the 

22 bylaws, the association shall prepare and complete, or 

23 contract for the preparation and completion of, a financial 

24 report for the preceding fiscal year. Within 21 days after 

25 the final financial report is completed by the association or 

26 received from the third party, but not later than 120 days 

27 after the end of the fiscal year or other date as provided in 

28 the bylaws, the association shall mail to each unit owner at 

29 the address last furnished to the association by the unit 

30 owner, or hand deliver to each unit owner, a copy of the 

31 financial report or a notice that a copy of the financial 

Page 10 

1 report will be mailed or hand delivered to the unit owner,  

2 without charge, upon receipt of a written request from the  

3 unit owner. The division shall adopt rules setting forth 

4 uniform accounting principles and standards to be used by all 

5 associations and shall adopt rules addressing financial 

6 reporting requirements for multicondominium associations. In 

7 adopting such rules, the division shall consider the number of 

8 members and annual revenues of an association. Financial 

9 reports shall be prepared as follows: 

10 (a) An association that meets the criteria of this 

11 paragraph shall prepare or cause to be prepared a complete set 

12 of financial statements in accordance with generally accepted 

13 accounting principles. The financial statements shall be based 

14 upon the association's total annual revenues, as follows: 

15 1. An association with total annual revenues of 

16 $100,000 or more, but less than $200,000, shall prepare 

17 compiled financial statements. 

18 2. An association with total annual revenues of at 

19 least $200,000, but less than $400,000, shall prepare reviewed 

20 financial statements. 

21 3. An association with total annual revenues of 

22 $400,000 or more shall prepare audited financial statements. 

23 (b)1. An association with total annual revenues of 

24 less than $100,000 shall prepare a report of cash receipts and 

25 expenditures. 

26 2. An association which operates less than 50 units, 

27 regardless of the association's annual revenues, shall prepare 

28 a report of cash receipts and expenditures in lieu of 

29 financial statements required by paragraph (a). 

30 3. A report of cash receipts and disbursements must 

31 disclose the amount of receipts by accounts and receipt 

Page 11 

1 classifications and the amount of expenses by accounts and 

2 expense classifications, including, but not limited to, the 

3 following, as applicable: costs for security, professional and 

4 management fees and expenses, taxes, costs for recreation 

5 facilities, expenses for refuse collection and utility 

6 services, expenses for lawn care, costs for building 

7 maintenance and repair, insurance costs, administration and 

8 salary expenses, and reserves accumulated and expended for 

9 capital expenditures, deferred maintenance, and any other 

0 category for which the association maintains reserves. 

11 (c) An association may prepare or cause to be 

12 prepared, without a meeting of or approval by the unit owners: 

13 1. Compiled, reviewed, or audited financial 

14 statements, if the association is required to prepare a report 

15 of cash receipts and expenditures; 

16 2. Reviewed or audited financial statements, if the 

17 association is required to prepare compiled financial 

18 statements; or 

19 3. Audited financial statements if the association is 

20 required to prepare reviewed financial statements. 

21 (d) If approved by a majority of the voting interests 

22 present at a properly called meeting of the association, an 

23 association may prepare or cause to be prepared: 

24 1. A report of cash receipts and expenditures in lieu 

25 of a compiled, reviewed, or audited financial statement; 

26 2. A report of cash receipts and expenditures or a 

27 compiled financial statement in lieu of a reviewed or audited 

28 financial statement; or 

29 3. A report of cash receipts and expenditures, a 

30 compiled financial statement, or a reviewed financial 

31 statement in lieu of an audited financial statement. 

Page 12 

2 Such meeting and approval must occur prior to the end of the 

3 fiscal year and is effective only for the fiscal year in which 

4 the vote is taken. With respect to an association to which the 

5 developer has not turned over control of the association, all 

6 unit owners, including the developer, may vote on issues

7 related to the preparation of financial reports for the first 

8 2 fiscal years of the association's operation, beginning with 

9 the fiscal year in which the declaration is recorded. 

10 Thereafter, all unit owners except the developer may vote on 

11 such issues until control is turned over to the association by 

12 the developer. An association or board of administration may  

13 not waive the financial reporting requirements of this section  

14 for more than 2 consecutive years.  

15 (15) RECONSTRUCTION AFTER CASUALTY.--  

16 (a) If the condominium property and units are damaged  

17 after a casualty, the board of administration shall obtain  

18 reliable and detailed estimates of the cost necessary to  

19 repair and replace the damaged property to substantially the  

20 same condition existing immediately before the casualty and  

21 substantially in accordance with the original plans and  

22 specifications of the condominium as soon as possible and not  

23 later than 60 days after the casualty. If the damage to the  

24 condominium property exceeds 50 percent of the property's  

25 value, the condominium may be terminated unless 75 percent of  

26 the unit owners agree to reconstruction and repair within 90  

27 days after the casualty.  

28 (b) The board of administration shall engage the  

29 services of a registered architect and knowledgeable  

30 construction specialists to prepare any necessary plans and  

31 specifications and shall receive and approve bids for  

Page 13 

1 reconstruction, execute all necessary contracts for  

2 restoration, and arrange for disbursement of construction  

3 funds, the approval of work, and all other matters pertaining  

4 to the repairs and reconstruction required.  

5 (c) If the proceeds of the hazard insurance policy  

6 maintained by the association under paragraph (11)(b) are  

7 insufficient to pay the estimated costs of reconstruction or  

8 at any time during reconstruction and repair, assessments  

9 shall be made against all unit owners according to their share  

10 of the common elements and expenses as set forth in the  

11 declaration of condominium.  

12 (d) Assessments shall be made against unit owners for  

13 damage to their units according to the cost of reconstruction  

14 or repair of their respective units. The assessments shall be  

15 levied and collected as all other assessments are provided for  

16 in this chapter.  

17 Section 4. Subsection (2) of section 718.112, Florida 

18 Statutes, is amended to read: 

19 718.112 Bylaws.-- 

20 (2) REQUIRED PROVISIONS.--The bylaws of the  

21 association shall provide for the following and, if they do 

22 not do so, shall be deemed to include the following: 

23 (a) Administration.-- 

24 1. The form of administration of the association shall 

25 be described indicating the title of the officers and board of 

26 administration and specifying the powers, duties, manner of 

27 selection and removal, and compensation, if any, of officers 

28 and boards. In the absence of such a provision or  

29 determination by the board or membership, the board of 

30 administration shall be composed of five members who are unit  

31 owners, except in the case of a condominium which has five or 

Page 14 

1 fewer units, in which case in a not-for-profit corporation the 

2 board shall consist of not fewer than three members who are  

3 unit owners. In the absence of provisions to the contrary in 

4 the bylaws, the board of administration shall have a 

5 president, a secretary, and a treasurer, who shall perform the 

6 duties of such officers customarily performed by officers of 

7 corporations. Unless prohibited in the bylaws, the board of 

8 administration may appoint other officers and grant them the 

9 duties it deems appropriate. Unless otherwise provided in the 

10 bylaws, the officers shall serve without compensation and at 

11 the pleasure of the board of administration. Unless otherwise 

12 provided in the bylaws, the members of the board shall serve 

13 without compensation. 

14 2. When a unit owner files a written inquiry by 

15 certified mail with the board of administration, the board 

16 shall respond in writing by certified mail, return receipt  

17 requested, to the unit owner within 30 days after of receipt 

18 of the inquiry. The board's response shall either give a 

19 substantive response to the inquirer, notify the inquirer that 

20 a legal opinion has been requested, or notify the inquirer 

21 that advice has been requested from the division. If the board 

22 requests advice from the division, the board shall, within 10 

23 days after of its receipt of the advice, provide in writing by  

24 certified mail a substantive response to the inquirer. If a 

25 legal opinion is requested, the board shall, within 60 days 

26 after the receipt of the inquiry, provide in writing by  

27 certified mail a substantive response to the inquiry. The 

28 failure to provide a substantive response to the inquiry as 

29 provided herein precludes the board from recovering attorney's 

30 fees and costs in any subsequent litigation, administrative 

31 proceeding, or arbitration arising out of the inquiry. The 

Page 15 

1 association may through its board of administration adopt 

2 reasonable rules and regulations regarding the frequency and 

3 manner of responding to unit owner inquiries, one of which may 

4 be that the association is only obligated to respond to two  

5 one written inquiries inquiry per unit in any given 30-day 

6 period. In such a case, any additional inquiry or inquiries 

7 must be responded to in the subsequent 30-day period, or 

8 periods, as applicable. 

9 (b) Quorum; voting requirements; proxies.-- 

10 1. Unless a lower number is provided in the bylaws, 

11 the percentage of voting interests required to constitute a 

12 quorum at a meeting of the members shall be a majority of the 

13 voting interests. Unless otherwise provided in this chapter 

14 or in the declaration, articles of incorporation, or bylaws, 

15 and except as provided in subparagraph (d)3., decisions shall 

16 be made by owners of a majority of the voting interests 

17 represented at a meeting at which a quorum is present. 

18 2. Except as specifically otherwise provided herein, 

19 after January 1, 1992, unit owners may not vote by general 

20 proxy, but may vote by limited proxies substantially 

21 conforming to a limited proxy form adopted by the division. 

22 Limited proxies and general proxies may be used to establish a 

23 quorum. Limited proxies shall be used for votes taken to waive 

24 or reduce reserves in accordance with subparagraph (f)2.; for 

25 votes taken to waive the financial reporting requirements of 

26 s. 718.111(13); for votes taken to amend the declaration 

27 pursuant to s. 718.110; for votes taken to amend the articles 

28 of incorporation or bylaws pursuant to this section; and for 

29 any other matter for which this chapter requires or permits a 

30 vote of the unit owners. A Except as provided in paragraph  

31 (d), after January 1, 1992, no proxy, limited or general, may  

Page 16 

1 not shall be used in the election of board members. General 

2 proxies may be used for other matters for which limited 

3 proxies are not required, and may also be used in voting for 

4 nonsubstantive changes to items for which a limited proxy is 

5 required and given. Notwithstanding the provisions of this 

6 subparagraph, unit owners may vote in person at unit owner 

7 meetings. Nothing contained herein shall limit the use of 

8 general proxies or require the use of limited proxies for any 

9 agenda item or election at any meeting of a timeshare 

10 condominium association. 

11 3. Any proxy given shall be effective only for the 

12 specific meeting for which originally given and any lawfully 

13 adjourned meetings thereof. In no event shall any proxy be 

14 valid for a period longer than 90 days after the date of the 

15 first meeting for which it was given. Every proxy is 

16 revocable at any time at the pleasure of the unit owner 

17 executing it. 

18 4. A member of the board of administration or a 

19 committee may submit in writing his or her agreement or 

20 disagreement with any action taken at a meeting that the 

21 member did not attend. This agreement or disagreement may not 

22 be used as a vote for or against the action taken and may not 

23 be used for the purposes of creating a quorum. 

24 5. When any of the board or committee members meet by 

25 telephone conference, those board or committee members 

26 attending by telephone conference may be counted toward 

27 obtaining a quorum and may vote by telephone. A telephone 

28 speaker must be used so that the conversation of those board 

29 or committee members attending by telephone may be heard by 

30 the board or committee members attending in person as well as 

31 by any unit owners present at a meeting. 

Page 17 

1 (c) Board of administration meetings.--Meetings of the 

2 board of administration at which a quorum of the members is 

3 present shall be open to all unit owners. The board of  

4 administration shall address agenda items proposed by a  

5 petition of 20 percent of the unit owners submitted at least  

6 48 hours before the meeting date, in time for the directors to  

7 study and understand the agenda items, and in time to post the

8 updated agenda before the meeting. A unit owner's facsimile  

9 signature constitutes the unit owner's original signature in  

10 any matter under this chapter that requires the unit owner's  

11 signature. Correspondence from the board of administration to  

12 unit owners shall be accomplished by the same, or a more  

13 secure, delivery method that is as secure as certified mail,  

14 return receipt requested, except as otherwise provided in this  

15 paragraph. Any unit owner may tape record or videotape 

16 meetings of the board of administration. The right to attend 

17 such meetings includes the right to speak at such meetings 

18 with reference to all designated agenda items. The division 

19 shall adopt reasonable rules governing the tape recording and 

20 videotaping of the meeting. The association may adopt written 

21 reasonable rules governing the frequency, duration, and manner 

22 of unit owner statements. Adequate notice of all meetings, 

23 which notice shall specifically incorporate an identification 

24 of agenda items, shall be posted conspicuously on the 

25 condominium property at least 48 continuous hours preceding 

26 the meeting except in an emergency. Any item not included on 

27 the notice may be taken up on an emergency basis by at least a 

28 majority plus one of the members of the board or by a petition  

29 of 20 percent of the unit owners. Such emergency action shall 

30 be noticed and ratified at the next regular meeting of the 

31 board. However, written notice of any meeting at which 

Page 18 

1 nonemergency special assessments, or at which amendment to 

2 rules regarding unit use, will be considered shall be mailed, 

3 delivered, or electronically transmitted to the unit owners 

4 and posted conspicuously on the condominium property not less 

5 than 14 days prior to the meeting. Evidence of compliance with 

6 this 14-day notice shall be made by an affidavit executed by 

7 the person providing the notice and filed among the official 

8 records of the association. Upon notice to the unit owners, 

9 the board shall by duly adopted rule designate a specific 

10 location on the condominium property or association property 

11 upon which all notices of board meetings shall be posted. If 

12 there is no condominium property or association property upon 

13 which notices can be posted, notices of board meetings shall 

14 be mailed, delivered, or electronically transmitted at least 

15 14 days before the meeting to the owner of each unit. In lieu 

16 of or in addition to the physical posting of notice of any 

17 meeting of the board of administration on the condominium 

18 property, the association may, by reasonable rule, adopt a 

19 procedure for conspicuously posting and repeatedly 

20 broadcasting the notice and the agenda on a closed-circuit 

21 cable television system serving the condominium association. 

22 However, if broadcast notice is used in lieu of a notice 

23 posted physically on the condominium property, the notice and 

24 agenda must be broadcast at least four times every broadcast 

25 hour of each day that a posted notice is otherwise required 

26 under this section. When broadcast notice is provided, the 

27 notice and agenda must be broadcast in a manner and for a 

28 sufficient continuous length of time so as to allow an average 

29 reader to observe the notice and read and comprehend the 

30 entire content of the notice and the agenda. Notice of any 

31 meeting in which regular or special assessments against unit 

Page 19 

1 owners are to be considered for any reason shall specifically 

2 state contain a statement that assessments will be considered 

3 and specify the nature, cost, and breakdown of any such 

4 assessments. Meetings of a committee to take final action on 

5 behalf of the board or make recommendations to the board 

6 regarding the association budget are subject to the provisions 

7 of this paragraph. Meetings of a committee that does not take 

8 final action on behalf of the board or make recommendations to 

9 the board regarding the association budget are subject to the 

10 provisions of this section, unless those meetings are exempted 

11 from this section by the bylaws of the association. 

12 Notwithstanding any other law, the requirement that board 

13 meetings and committee meetings be open to the unit owners is 

14 inapplicable to meetings between the board or a committee and 

15 the association's attorney, with respect to proposed or 

16 pending litigation, when the meeting is held for the purpose 

17 of seeking or rendering legal advice. 

18 (d) Unit owner meetings.-- 

19 1. There shall be an annual meeting of the unit 

20 owners. Unless the bylaws provide otherwise, a vacancy on the 

21 board caused by the expiration of a director's term shall be 

22 filled by electing a new board member, and the election shall 

23 be by secret ballot; however, if the number of vacancies 

24 equals or exceeds the number of candidates, no election is 

25 required. If there is no provision in the bylaws for terms of 

26 the members of the board, the terms of all members of the 

27 board shall expire upon the election of their successors at 

28 the annual meeting. Any unit owner desiring to be a candidate 

29 for board membership shall comply with subparagraph 3. The  

30 only prohibition against eligibility for board membership  

31 shall be for a person who has been convicted of any felony by 

Page 20 

1 any court of record in the United States and who has not had 

2 his or her right to vote restored pursuant to law in the 

3 jurisdiction of his or her residence is not eligible for board  

4 membership. The validity of an action by the board is not 

5 affected if it is later determined that a member of the board 

6 is ineligible for board membership due to having been 

7 convicted of a felony. 

8 2. The bylaws shall provide the method of calling 

9 meetings of unit owners, including annual meetings. Written 

10 notice, which notice must include an agenda, shall be mailed, 

11 hand delivered, or electronically transmitted to each unit 

12 owner at least 14 days prior to the annual meeting and shall 

13 be posted in a conspicuous place on the condominium property 

14 at least 14 continuous days preceding the annual meeting. Upon 

15 notice to the unit owners, the board shall by duly adopted 

16 rule designate a specific location on the condominium property 

17 or association property upon which all notices of unit owner 

18 meetings shall be posted; however, if there is no condominium 

19 property or association property upon which notices can be 

20 posted, this requirement does not apply. In lieu of or in 

21 addition to the physical posting of notice of any meeting of 

22 the unit owners on the condominium property, the association 

23 may, by reasonable rule, adopt a procedure for conspicuously 

24 posting and repeatedly broadcasting the notice and the agenda 

25 on a closed-circuit cable television system serving the 

26 condominium association. However, if broadcast notice is used 

27 in lieu of a notice posted physically on the condominium 

28 property, the notice and agenda must be broadcast at least 

29 four times every broadcast hour of each day that a posted 

30 notice is otherwise required under this section. When 

31 broadcast notice is provided, the notice and agenda must be 

Page 21 

1 broadcast in a manner and for a sufficient continuous length 

2 of time so as to allow an average reader to observe the notice 

3 and read and comprehend the entire content of the notice and 

4 the agenda. Unless a unit owner waives in writing the right to 

5 receive notice of the annual meeting, such notice shall be 

6 hand delivered, mailed, or electronically transmitted to each 

7 unit owner. Notice for meetings and notice for all other 

8 purposes shall be mailed to each unit owner at the address 

9 last furnished to the association by the unit owner, or hand 

10 delivered to each unit owner. However, if a unit is owned by 

11 more than one person, the association shall provide notice, 

12 for meetings and all other purposes, to that one address which 

13 the developer initially identifies for that purpose and 

14 thereafter as one or more of the owners of the unit shall so 

15 advise the association in writing, or if no address is given 

16 or the owners of the unit do not agree, to the address 

17 provided on the deed of record. An officer of the association, 

18 or the manager or other person providing the first notice of 

19 the association meeting, and the second notice as provided for  

20 in subparagraph 3., shall provide an affidavit or United 

21 States Postal Service certificate of mailing, to be included 

22 in the official records of the association affirming that the 

23 notices were notice was mailed or hand delivered, in 

24 accordance with this provision. 

25 3. The members of the board shall be elected by 

26 written ballot or voting machine. Proxies shall in no event be 

27 used in electing the board, either in general elections or 

28 elections to fill vacancies caused by recall, resignation, or 

29 otherwise, unless otherwise provided in this chapter. Not less 

0 than 60 days before a scheduled election, the association or  

31 its representative shall mail, deliver, or electronically 

Page 22 

1 transmit, whether by separate association mailing or included 

2 in another association mailing, delivery, or transmission, 

3 including regularly published newsletters, to each unit owner 

4 entitled to a vote, a first notice of the date of the 

5 election. Any unit owner or other eligible person desiring to 

6 be a candidate for the board must give written notice to the 

7 association or its representative not less than 40 days before 

8 a scheduled election. Together with the written notice and 

9 agenda as set forth in subparagraph 2., the association or its  

10 representative shall mail, deliver, or electronically transmit 

11 a second notice of the election to all unit owners entitled to 

12 vote therein, together with a ballot which shall list all 

13 candidates. Upon request of a candidate, the association or  

14 its representative shall include an information sheet, no 

15 larger than 8 1/2 inches by 11 inches, which must be 

16 furnished by the candidate not less than 35 days before the 

17 election, to be included with the mailing, delivery, or 

18 transmission of the ballot, with the costs of mailing, 

19 delivery, or electronic transmission and copying to be borne 

20 by the association. The association or its representative is 

21 not liable for the contents of the information sheets prepared 

22 by the candidates. In order to reduce costs, the association 

23 may print or duplicate the information sheets on both sides of 

24 the paper. The division shall by rule establish voting 

25 procedures consistent with the provisions contained herein, 

26 including rules establishing procedures for giving notice by 

27 electronic transmission and rules providing for the secrecy of 

28 ballots. All ballot envelopes must be placed in a locked or  

29 sealed ballot drop box immediately upon receipt, and the box  

30 may not be opened in advance of the election meeting.  

31 Elections shall be decided by a plurality of those ballots 

Page 23 

1 cast. There shall be no quorum requirement; however, at least 

2 20 percent of the eligible voters must cast a ballot in order 

3 to have a valid election of members of the board. No unit 

4 owner shall permit any other person to vote his or her ballot, 

5 and any such ballots improperly cast shall be deemed invalid, 

6 provided any unit owner who violates this provision may be 

7 fined by the association in accordance with s. 718.303. A unit 

8 owner who needs assistance in casting the ballot for the 

9 reasons stated in s. 101.051 may obtain assistance in casting 

10 the ballot. The regular election shall occur on the date of 

11 the annual meeting. The provisions of this subparagraph shall 

12 not apply to timeshare condominium associations. 

13 Notwithstanding the provisions of this subparagraph, an 

14 election is not required unless more candidates file notices 

15 of intent to run or are nominated than board vacancies exist. 

16 4. Any approval by unit owners called for by this 

17 chapter or the applicable declaration or bylaws, including, 

18 but not limited to, the approval requirement in s. 718.111(8), 

19 shall be made at a duly noticed meeting of unit owners and 

20 shall be subject to all requirements of this chapter or the 

21 applicable condominium documents relating to unit owner 

22 decisionmaking, except that unit owners may take action by 

23 written agreement, without meetings, on matters for which 

24 action by written agreement without meetings is expressly 

25 allowed by the applicable bylaws or declaration or any statute 

26 that provides for such action. 

27 5. Unit owners may waive notice of specific meetings 

28 if allowed by the applicable bylaws or declaration or any 

29 statute. If authorized by the bylaws, notice of meetings of 

30 the board of administration, unit owner meetings, except unit

31 owner meetings called to recall board members under paragraph 

Page 24 

1 (j), and committee meetings may be given by electronic 

2 transmission to unit owners who consent to receive notice by 

3 electronic transmission. 

4 6. Unit owners shall have the right to participate in 

5 meetings of unit owners with reference to all designated 

6 agenda items. However, the association may adopt reasonable 

7 rules governing the frequency, duration, and manner of unit 

8 owner participation. 

9 7. Any unit owner may tape record or videotape a 

10 meeting of the unit owners subject to reasonable rules adopted 

11 by the division. 

12 8. Unless otherwise provided in the bylaws, any 

13 vacancy occurring on the board before the expiration of a term 

14 may be filled by the affirmative vote of the majority of the 

15 remaining directors, even if the remaining directors 

16 constitute less than a quorum, or by the sole remaining 

17 director. In the alternative, a board may hold an election to 

18 fill the vacancy, in which case the election procedures must 

19 conform to the requirements of subparagraph 3. unless the  

20 association has opted out of the statutory election process,  

21 in which case the bylaws of the association control. Unless 

22 otherwise provided in the bylaws, a board member appointed or 

23 elected under this section shall fill the vacancy for the 

24 unexpired term of the seat being filled. Filling vacancies 

25 created by recall is governed by paragraph (j) and rules 

26 adopted by the division. 

27 9. Unit owners have the right to have items not  

28 related to the budget placed on the agenda of the annual  

29 meeting and voted upon if a written request is made to the  

30 board of administration by 20 percent or more of all voting  

31 

Page 25 

1 interests at least 90 days before the date of the annual  

2 meeting.  

4 Notwithstanding subparagraphs (b)2. and (d)3., an association  

5 may, by the affirmative vote of a majority of the total voting  

6 interests, provide for different voting and election  

7 procedures in its bylaws, which vote may be by a proxy  

8 specifically delineating the different voting and election  

9 procedures. The different voting and election procedures may  

10 provide for elections to be conducted by limited or general  

11 proxy.  

12 (e) Budget meeting.-- 

13 1. Any meeting at which a proposed annual budget of an 

14 association will be considered by the board or unit owners 

15 shall be open to all unit owners. At least 14 days prior to 

16 such a meeting, the board shall hand deliver to each unit 

17 owner, mail to each unit owner at the address last furnished 

18 to the association by the unit owner, or electronically 

19 transmit to the location furnished by the unit owner for that 

20 purpose a notice of such meeting and a copy of the proposed 

21 annual budget. An officer or manager of the association, or 

22 other person providing notice of such meeting, shall execute 

23 an affidavit evidencing compliance with such notice 

24 requirement, and such affidavit shall be filed among the 

25 official records of the association. 

26 2.a. If a board adopts in any fiscal year an annual 

27 budget which requires assessments against unit owners which 

28 exceed 115 percent of assessments for the preceding fiscal 

29 year, the board shall conduct a special meeting of the unit 

30 owners to consider a substitute budget if the board receives, 

31 within 21 days after adoption of the annual budget, a written 

Page 26 

1 request for a special meeting from at least 10 percent of all 

2 voting interests. The special meeting shall be conducted 

3 within 60 days after adoption of the annual budget. At least 

4 14 days prior to such special meeting, the board shall hand 

5 deliver to each unit owner, or mail to each unit owner at the 

6 address last furnished to the association, a notice of the 

7 meeting. An officer or manager of the association, or other

8 person providing notice of such meeting shall execute an 

9 affidavit evidencing compliance with this notice requirement, 

10 and such affidavit shall be filed among the official records 

11 of the association. Unit owners may consider and adopt a 

12 substitute budget at the special meeting. A substitute budget 

13 is adopted if approved by a majority of all voting interests 

14 unless the bylaws require adoption by a greater percentage of 

15 voting interests. If there is not a quorum at the special 

16 meeting or a substitute budget is not adopted, the annual 

17 budget previously adopted by the board shall take effect as 

18 scheduled. 

19 b. Any determination of whether assessments exceed 115 

20 percent of assessments for the prior fiscal year shall exclude 

21 any authorized provision for reasonable reserves for repair or 

22 replacement of the condominium property, anticipated expenses 

23 of the association which the board does not expect to be

24 incurred on a regular or annual basis, or assessments for 

25 betterments to the condominium property. 

26 c. If the developer controls the board, assessments 

27 shall not exceed 115 percent of assessments for the prior 

28 fiscal year unless approved by a majority of all voting 

29 interests. 

30 (f) Annual budget.-- 

31 

Page 27 

1. The association shall prepare an annual budget of  

2 the estimated revenues and expenses. The adopted budget of the  

3 previous fiscal year shall remain in effect until the  

4 association has adopted a new budget for the current fiscal  

5 year. The proposed annual budget of estimated revenues and  

6 common expenses shall be detailed and shall show the amounts 

7 budgeted by accounts and expense classifications, including, 

8 if applicable, but not limited to, those expenses listed in s. 

9 718.504(21). A multicondominium association shall adopt a 

10 separate budget of common expenses for each condominium the 

11 association operates and shall adopt a separate budget of 

12 common expenses for the association. In addition, if the 

13 association maintains limited common elements with the cost to 

14 be shared only by those entitled to use the limited common 

15 elements as provided for in s. 718.113(1), the budget or a 

16 schedule attached thereto shall show amounts budgeted 

17 therefor. If, after turnover of control of the association to 

18 the unit owners, any of the expenses listed in s. 718.504(21) 

19 are not applicable, they need not be listed. 

20 2. In addition to annual operating expenses, the 

21 budget shall include reserve accounts for capital expenditures 

22 and deferred maintenance. These accounts shall include, but 

23 are not limited to, structural repairs, roof replacement, 

24 building painting, and pavement resurfacing, regardless of the 

25 amount of deferred maintenance expense or replacement cost,

26 and for any other item for which the deferred maintenance 

27 expense or replacement cost exceeds $10,000. The amount to be 

28 reserved shall be computed by means of a formula which is 

29 based upon estimated remaining useful life and estimated 

30 replacement cost or deferred maintenance expense of each 

31 reserve item. The association may adjust replacement reserve 

Page 28 

1 assessments annually to take into account any changes in 

2 estimates or extension of the useful life of a reserve item 

3 caused by deferred maintenance. This subsection does not apply 

4 to an adopted budget in which the members of an association 

5 have determined, by a majority vote at a duly called meeting 

6 of the association, to provide no reserves or less reserves 

7 than required by this subsection. However, prior to turnover 

8 of control of an association by a developer to unit owners 

9 other than a developer pursuant to s. 718.301, the developer 

10 may vote to waive the reserves or reduce the funding of 

11 reserves for the first 2 fiscal years of the association's 

12 operation, beginning with the fiscal year in which the initial 

13 declaration is recorded, after which time reserves may be 

14 waived or reduced only upon the vote of a majority of all 

15 nondeveloper voting interests voting in person or by limited 

16 proxy at a duly called meeting of the association. If a 

17 meeting of the unit owners has been called to determine 

18 whether to waive or reduce the funding of reserves, and no 

19 such result is achieved or a quorum is not attained, the 

20 reserves as included in the budget shall go into effect. After 

21 the turnover, the developer may vote its voting interest to 

22 waive or reduce the funding of reserves. 

23 3. Reserve funds and any interest accruing thereon 

24 shall remain in the reserve account or accounts, and shall be 

25 used only for authorized reserve expenditures unless their use 

26 for other purposes is approved in advance by a majority vote 

27 at a duly called meeting of the association. Prior to turnover 

28 of control of an association by a developer to unit owners 

29 other than the developer pursuant to s. 718.301, the 

30 developer-controlled association shall not vote to use 

31 reserves for purposes other than that for which they were 

Page 29 

1 intended without the approval of a majority of all 

2 nondeveloper voting interests, voting in person or by limited 

3 proxy at a duly called meeting of the association. 

4 4. The only voting interests which are eligible to 

5 vote on questions that involve waiving or reducing the funding 

6 of reserves, or using existing reserve funds for purposes 

7 other than purposes for which the reserves were intended, are 

8 the voting interests of the units subject to assessment to 

9 fund the reserves in question. The face of all ballots that  

10 involve questions relating to waiving or reducing the funding  

11 of reserves, or using existing reserve funds for purposes  

12 other than purposes for which the reserves were intended, must  

13 contain the following statement in capitalized, bold letters  

14 in a font size larger than any other used on the face of the  

15 ballot: WAIVING OF RESERVES, IN WHOLE OR IN PART, OR ALLOWING  

16 ALTERNATE USES OF EXISTING RESERVES, MAY RESULT IN UNIT OWNER  

17 LIABILITY FOR PAYMENT OF UNANTICIPATED SPECIAL ASSESSMENTS  

18 REGARDING THOSE RESERVE ITEMS.  

19 5. A vote to provide for no reserves or a percentage  

20 of reserves shall be made at the annual meeting of the unit  

21 owners called under paragraph (d).  

22 6. Notwithstanding subparagraph 3., the association  

23 after turnover of control of the association may, in case of a  

24 catastrophic event, use reserve funds for nonscheduled  

25 purposes to mitigate further damage to units or common  

26 elements or to make the condominium accessible for repairs.  

27 7. Except in cases of emergency, or unless otherwise  

28 provided for in the bylaws or approved by a vote of a majority  

29 of the unit owners in advance, the board of administration may  

30 not apply for or accept a loan or line of credit in an amount  

31 

Page 30 

1 that exceeds 10 percent of the association's annual budget for  

2 the current year.  

3 (g) Assessments.--After the declaration has been  

4 recorded, and until such time as the association has been  

5 created, all common expenses shall be paid by the developer.

6 Assessments shall be levied in an amount determined by the  

7 adopted budget or an authorized special assessment. The manner 

8 of collecting from the unit owners their shares of the common 

9 expenses shall be stated in the bylaws. Assessments shall be 

10 made against units on a quarter-annual, or more frequent,  

11 basis not less frequently than quarterly in an amount which is 

12 not less than that required to provide funds in advance for 

13 payment of all of the anticipated current operating expenses 

14 and for all of the unpaid operating expenses previously 

15 incurred. Nothing in This paragraph does not shall preclude 

16 the right of an association to accelerate assessments of an 

17 owner delinquent in payment of common expenses against whom a  

18 lien has been filed. Accelerated assessments shall be due and 

19 payable after on the date the claim of lien is filed. Such 

20 accelerated assessments shall include the amounts due for the 

21 remainder of the budget year in which the claim of lien was 

22 filed. 

23 (h) Amendment of bylaws.-- 

24 1. The method by which the bylaws may be amended 

25 consistent with the provisions of this chapter shall be 

26 stated. If the bylaws fail to provide a method of amendment, 

27 the bylaws may be amended if the amendment is approved by the 

28 owners of not less than two-thirds of the voting interests. 

29 2. No bylaw shall be revised or amended by reference 

30 to its title or number only. Proposals to amend existing

31 bylaws shall contain the full text of the bylaws to be 

Page 31 

1 amended; new words shall be inserted in the text underlined, 

2 and words to be deleted shall be lined through with hyphens. 

3 However, if the proposed change is so extensive that this 

4 procedure would hinder, rather than assist, the understanding 

5 of the proposed amendment, it is not necessary to use 

6 underlining and hyphens as indicators of words added or 

7 deleted, but, instead, a notation must be inserted immediately 

8 preceding the proposed amendment in substantially the

9 following language: "Substantial rewording of bylaw. See 

10 bylaw .... for present text." 

11 3. Nonmaterial errors or omissions in the bylaw 

12 process will not invalidate an otherwise properly promulgated 

13 amendment. 14 (i) Transfer fees.--No charge shall be made by the 

15 association or any body thereof in connection with the sale, 

16 mortgage, lease, sublease, or other transfer of a unit unless 

17 the association is required to approve such transfer and a fee 

18 for such approval is provided for in the declaration, 

19 articles, or bylaws. Any such fee may be preset, but in no 

20 event may such fee exceed $100 per applicant other than 

21 husband/wife or parent/dependent child, which are considered 

22 one applicant. However, if the lease or sublease is a renewal 

23 of a lease or sublease with the same lessee or sublessee, no 

24 charge shall be made. The foregoing notwithstanding, an 

25 association may, if the authority to do so appears in the 

26 declaration or bylaws, require that a prospective lessee place 

27 a security deposit, in an amount not to exceed the equivalent 

28 of 1 month's rent, into an escrow account maintained by the 

29 association. The security deposit shall protect against 

30 damages to the common elements or association property. 

31 Payment of interest, claims against the deposit, refunds, and 

Page 32 

1 disputes under this paragraph shall be handled in the same 

2 fashion as provided in part II of chapter 83. 

3 (j) Recall of board members.--Subject to the 

4 provisions of s. 718.301, any member of the board of 

5 administration may be recalled and removed from office with or 

6 without cause by the vote or agreement in writing by a 

7 majority of all the voting interests. A special meeting of the 

8 unit owners to recall a member or members of the board of 

9 administration may be called by 10 percent of the voting 

10 interests giving notice of the meeting as required for a 

11 meeting of unit owners, and the notice shall state the purpose 

12 of the meeting. Electronic transmission may not be used as a 

13 method of giving notice of a meeting called in whole or in 

14 part for this purpose. 

15 1. If the recall is approved by a majority of all 

16 voting interests by a vote at a meeting, the recall will be 

17 effective as provided herein. The board shall duly notice and 

18 hold a board meeting within 5 full business days of the 

19 adjournment of the unit owner meeting to recall one or more 

20 board members. At the meeting, the board shall either certify 

21 the recall, in which case such member or members shall be 

22 recalled effective immediately and shall turn over to the 

23 board within 5 full business days any and all records and 

24 property of the association in their possession, or shall 

25 proceed as set forth in subparagraph 3. 

26 2. If the proposed recall is by an agreement in 

27 writing by a majority of all voting interests, the agreement 

28 in writing or a copy thereof shall be served on the 

29 association by certified mail or by personal service in the 

30 manner authorized by chapter 48 and the Florida Rules of Civil 

31 Procedure. The board of administration shall duly notice and 

Page 33 

1 hold a meeting of the board within 5 full business days after 

2 receipt of the agreement in writing. At the meeting, the board 

3 shall either certify the written agreement to recall a member 

4 or members of the board, in which case such member or members 

5 shall be recalled effective immediately and shall turn over to 

6 the board within 5 full business days any and all records and 

7 property of the association in their possession, or proceed as 

8 described in subparagraph 3. 

9 3. If the board determines not to certify the written 

10 agreement to recall a member or members of the board, or does 

11 not certify the recall by a vote at a meeting, the board 

12 shall, within 5 full business days after the meeting, file 

13 with the division a petition for arbitration pursuant to the 

14 procedures in s. 718.1255. For the purposes of this section, 

15 the unit owners who voted at the meeting or who executed the 

16 agreement in writing shall constitute one party under the 

17 petition for arbitration. If the arbitrator certifies the 

18 recall as to any member or members of the board, the recall 

19 will be effective upon mailing of the final order of 

20 arbitration to the association. If the association fails to 

21 comply with the order of the arbitrator, the division may take 

22 action pursuant to s. 718.501. Any member or members so 

23 recalled shall deliver to the board any and all records of the 

24 association in their possession within 5 full business days of 

25 the effective date of the recall. 

26 4. If the board fails to duly notice and hold a board 

27 meeting within 5 full business days of service of an agreement 

28 in writing or within 5 full business days of the adjournment 

29 of the unit owner recall meeting, the recall shall be deemed 

30 effective and the board members so recalled shall immediately 

31 

Page 34 

1 turn over to the board any and all records and property of the 

2 association. 

3 5. If a vacancy occurs on the board as a result of a 

4 recall and less than a majority of the board members are 

5 removed, the vacancy may be filled by the affirmative vote of 

6 a majority of the remaining directors, notwithstanding any 

7 provision to the contrary contained in this subsection. If 

8 vacancies occur on the board as a result of a recall and a 

9 majority or more of the board members are removed, the 

10 vacancies shall be filled in accordance with procedural rules 

11 to be adopted by the division, which rules need not be 

12 consistent with this subsection. The rules must provide 

13 procedures governing the conduct of the recall election as 

14 well as the operation of the association during the period 

15 after a recall but prior to the recall election. 

16 (k) Arbitration.--There shall be a provision for  

17 mandatory nonbinding arbitration as provided for in s.  

18 718.1255.  

19 (k)(l) Certificate of compliance.--There shall be a 

20 provision that a certificate of compliance from a licensed 

21 electrical contractor or electrician may be accepted by the 

22 association's board as evidence of compliance of the 

23 condominium units with the applicable fire and life safety 

24 code. Notwithstanding the provisions of chapter 633 or of any 

25 other code, statute, ordinance, administrative rule, or 

26 regulation, or any interpretation of the foregoing, an 

27 association, condominium, or unit owner is not obligated to 

28 retrofit the common elements or units of a residential 

29 condominium with a fire sprinkler system or other engineered 

30 lifesafety system in a building that has been certified for 

31 occupancy by the applicable governmental entity, if the unit 

Page 35 

1 owners have voted to forego such retrofitting and engineered 

2 lifesafety system by the affirmative vote of two-thirds of all 

3 voting interests in the affected condominium. However, a 

4 condominium association may not vote to forego the 

5 retrofitting with a fire sprinkler system of common areas in a 

6 high-rise building. For purposes of this subsection, the term 

7 "high-rise building" means a building that is greater than 75 

8 feet in height where the building height is measured from the 

9 lowest level of fire department access to the floor of the 

10 highest occupiable story. For purposes of this subsection, the 

11 term "common areas" means any enclosed hallway, corridor, 

12 lobby, stairwell, or entryway. In no event shall the local 

13 authority having jurisdiction require completion of 

14 retrofitting of common areas with a sprinkler system before 

15 the end of 2014. 16 1. A vote to forego retrofitting may be obtained by 

17 limited proxy or by a ballot personally cast at a duly called 

18 membership meeting, or by execution of a written consent by 

19 the member, and shall be effective upon the recording of a 

20 certificate attesting to such vote in the public records of 

21 the county where the condominium is located. The association 

22 shall mail, hand deliver, or electronically transmit to each 

23 unit owner written notice at least 14 days prior to such 

24 membership meeting in which the vote to forego retrofitting of 

25 the required fire sprinkler system is to take place. Within 30 

26 days after the association's opt-out vote, notice of the 

27 results of the opt-out vote shall be mailed, hand delivered, 

28 or electronically transmitted to all unit owners. Evidence of 

29 compliance with this 30-day notice shall be made by an 

30 affidavit executed by the person providing the notice and 

31 filed among the official records of the association. After 

Page 36 

1 such notice is provided to each owner, a copy of such notice 

2 shall be provided by the current owner to a new owner prior to 

3 closing and shall be provided by a unit owner to a renter 

4 prior to signing a lease. 

5 2. As part of the information collected annually from 

6 condominiums, the division shall require condominium 

7 associations to report the membership vote and recording of a 

8 certificate under this subsection and, if retrofitting has 

9 been undertaken, the per-unit cost of such work. The division 

10 shall annually report to the Division of State Fire Marshal of 

11 the Department of Financial Services the number of 

12 condominiums that have elected to forego retrofitting. 

13 (l)(m) Common elements; limited power to convey.-- 

14 1. With respect to condominiums created on or after 

15 October 1, 1994, the bylaws shall include a provision granting 

16 the association a limited power to convey a portion of the 

17 common elements to a condemning authority for the purpose of 

18 providing utility easements, right-of-way expansion, or other 

19 public purposes, whether negotiated or as a result of eminent 

20 domain proceedings. 

21 2. In any case where the bylaws are silent as to the 

22 association's power to convey common elements as described in 

23 subparagraph 1., the bylaws shall be deemed to include the 

24 provision described in subparagraph 1. 

25 Section 5. Section 718.113, Florida Statutes, is 

26 amended to read: 

27 718.113 Maintenance; limitation upon improvement; 

28 display of flag; display of religious decorations; hurricane 

29 shutters.-- 

30 (1) Maintenance of the common elements is the 

31 responsibility of the association. The declaration may provide 

Page 37 

1 that certain limited common elements shall be maintained by 

2 those entitled to use the limited common elements or that the 

3 association shall provide the maintenance, either as a common  

4 expense or with the cost shared only by those entitled to use 

5 the limited common elements. If the maintenance is to be by 

6 the association at the expense of only those entitled to use 

7 the limited common elements, the declaration shall describe in 

8 detail the method of apportioning such costs among those 

9 entitled to use the limited common elements, and the 

10 association may use the provisions of s. 718.116 to enforce 

11 payment of the shares of such costs by the unit owners 

12 entitled to use the limited common elements. 

13 (2)(a) Except as otherwise provided in this section, 

14 there shall be no material alteration or substantial additions 

15 to the common elements or to real property which is 

16 association property, except in a manner provided in the 

17 declaration as originally recorded or as amended under the 

18 procedures provided therein. If the declaration as originally 

19 recorded or as amended under the procedures provided therein 

20 does not specify the procedure for approval of material 

21 alterations or substantial additions, 75 percent of the total 

22 voting interests of the association must approve the 

23 alterations or additions. 

24 (b) There shall not be any material alteration of, or 

25 substantial addition to, the common elements of any 

26 condominium operated by a multicondominium association unless 

27 approved in the manner provided in the declaration of the 

28 affected condominium or condominiums as originally recorded or 

29 as amended under the procedures provided therein. If a 

30 declaration as originally recorded or as amended under the 

31 procedures provided therein does not specify a procedure for 

Page 38 

1 approving such an alteration or addition, the approval of 75 

2 percent of the total voting interests of each affected 

3 condominium is required. This subsection does not prohibit a 

4 provision in any declaration, articles of incorporation, or 

5 bylaws as originally recorded or as amended under the 

6 procedures provided therein requiring the approval of unit 

7 owners in any condominium operated by the same association or 

8 requiring board approval before a material alteration or 

9 substantial addition to the common elements is permitted. This 

10 paragraph is intended to clarify existing law and applies to 

11 associations existing on the effective date of this act. 

12 (c) There shall not be any material alteration or 

13 substantial addition made to association real property 

14 operated by a multicondominium association, except as provided 

15 in the declaration, articles of incorporation, or bylaws as 

16 originally recorded or as amended under the procedures 

17 provided therein. If the declaration, articles of 

18 incorporation, or bylaws as originally recorded or as amended 

19 under the procedures provided therein do not specify the 

20 procedure for approving an alteration or addition to 

21 association real property, the approval of 75 percent of the 

22 total voting interests of the association is required. This 

23 paragraph is intended to clarify existing law and applies to 

24 associations existing on the effective date of this act. 

25 (3) A unit owner shall not do anything within his or 

26 her unit or on the common elements which would adversely 

27 affect the safety or soundness of the common elements or any 

28 portion of the association property or condominium property 

29 which is to be maintained by the association. 

30 (4) Any unit owner may display one portable, removable 

31 United States flag in a respectful way and, on Armed Forces 

Page 39 

1 Day, Memorial Day, Flag Day, Independence Day, and Veterans 

2 Day, may display in a respectful way portable, removable 

3 official flags, not larger than 4 1/2 feet by 6 feet, that 

4 represent the United States Army, Navy, Air Force, Marine 

5 Corps, or Coast Guard, regardless of any declaration rules or 

6 requirements dealing with flags or decorations. 

7 (5) Each board of administration shall, at each annual  

8 meeting, adopt or restate hurricane shutter specifications for 

9 each building within each condominium operated by the 

10 association which shall include color, style, and other 

11 factors deemed relevant by the board. All specifications 

12 adopted or restated by the board shall comply with the 

13 applicable building code. Notwithstanding any provision to the 

14 contrary in the condominium documents, if approval is required 

15 by the documents, a board shall not refuse to approve the 

16 installation or replacement of hurricane shutters conforming 

17 to the specifications adopted by the board. The board may, 

18 subject to the provisions of s. 718.3026, and the approval of 

19 a majority of voting interests of the condominium, install 

20 hurricane shutters or hurricane protection that complies with  

21 the applicable building code, and may maintain, repair, or 

22 replace such approved hurricane shutters, whether on or within 

23 common elements, limited common elements, units, or 

24 association property. However, where laminated glass or window 

25 film architecturally designed to function as hurricane 

26 protection which complies with the applicable building code 

27 has been installed, the board may not install hurricane 

28 shutters. The board may operate shutters installed pursuant to 

29 this subsection without permission of the unit owners only 

30 where such operation is necessary to preserve and protect the 

31 condominium property and association property. The 

Page 40 

1 installation, replacement, operation, repair, and maintenance 

2 of such shutters in accordance with the procedures set forth 

3 herein shall not be deemed a material alteration to the common 

4 elements or association property within the meaning of this 

5 section. 

6 (6) Every 5 years, the board of administration shall  

7 have the condominium buildings inspected by a professional  

8 engineer or professional architect registered in the state for  

9 the purposes of determining that the building is structurally  

10 and electrically safe, and determining any immediate  

11 maintenance required as well as any long term maintenance  

12 necessary in the form of a long-term maintenance plan. The  

13 long-term maintenance plan must include an executive summary  

14 that shall be distributed to all unit owners. The engineer or  

15 architect shall provide a report indicating the manner and  

16 type of inspection forming the basis for the report and  

17 description of any matters identified as requiring remedial  

18 action. The report shall become an official record of the  

19 association to be provided to the members upon request  

20 pursuant to s. 718.111(12).  

21 (7) An association may not prohibit the attachment of  

22 religious items at the door or at the entrance of a unit. The  

23 board may adopt reasonable size restrictions for such items.  

24 Section 6. Section 718.1224, Florida Statutes, is 

25 created to read: 

26 718.1224 Prohibition against SLAPP suits.--  

27 (1) It is the intent of the Legislature to protect the  

28 right of condominium unit owners to exercise their rights to  

29 instruct their representatives and petition for redress of  

30 grievances before the various governmental entities of this  

31 state as protected by the First Amendment to the United States  

Page 41 

1 Constitution and s. 5, Art. I of the State Constitution. The  

2 Legislature recognizes that strategic lawsuits against public  

3 participation, or "SLAPP" suits as they are typically referred  

4 to, have occurred when association members are sued by  

5 individuals, business entities, or governmental entities  

6 arising out of a condominium unit owner's appearance and  

7 presentation before a governmental entity on matters related  

8 to the condominium association. However, it is the public  

9 policy of this state that governmental entities, business  

10 organizations, and individuals not to engage in SLAPP suits,  

11 because such actions are inconsistent with the right of  

12 condominium unit owners to participate in the state's  

13 institutions of government. Therefore, the Legislature finds  

14 and declares that prohibiting such lawsuits by governmental  

15 entities, business entities, and individuals against  

16 condominium unit owners who address matters concerning their  

17 condominium association will preserve this fundamental state  

18 policy, preserve the constitutional rights of condominium unit  

19 owners, and ensure the continuation of representative  

20 government in this state. It is the intent of the Legislature  

21 that such lawsuits be expeditiously disposed of by the courts.  

22 As used in this subsection, the term "governmental entity"  

23 means the state, including the executive, legislative, and  

24 judicial branches of government, the independent  

25 establishments of the state, counties, municipalities,  

26 districts, authorities, boards, or commissions, or any  

27 agencies of these branches which are subject to chapter 286.  

28 (2) A governmental entity, business organization, or  

29 individual in this state may not file or cause to be filed  

30 through its employees or agents any lawsuit, cause of action,

31 claim, cross-claim, or counterclaim against a condominium unit  

Page 42 

1 owner without merit and solely because such condominium unit  

2 owner has exercised the right to instruct his or her  

3 representatives or the right to petition for redress of  

4 grievances before the various governmental entities of this  

5 state, as protected by the First Amendment to the United  

6 States Constitution and s. 5, Art. I of the State  

7 Constitution.  

8 (3) If a condominium unit owner is sued by a  

9 governmental entity, business organization, or individual in  

10 violation of this section, the condominium unit owner has a  

11 right to an expeditious resolution of a claim that the suit is  

12 in violation of this section. A condominium unit owner may  

13 petition the court for an order dismissing the action or  

14 granting final judgment in favor of that condominium unit  

15 owner. The condominium unit owner may file a motion for  

16 summary judgment, together with supplemental affidavits,  

17 seeking a determination that the governmental entity's,  

18 business organization's, or individual's lawsuit has been  

19 brought in violation of this section. The governmental entity,  

20 business organization, or individual shall thereafter file its  

21 response and any supplemental affidavits. As soon as  

22 practicable, the court shall set a hearing on the condominium  

23 unit owner's motion, which shall be held at the earliest  

24 possible time after the filing of the governmental entity's,  

25 business organization's or individual's response. The court  

26 may award the condominium unit owner sued by the governmental  

27 entity, business organization, or individual actual damages  

28 arising from the governmental entity's, individual's, or  

29 business organization's violation of this section. A court may  

30 treble the damages awarded to a prevailing condominium unit  

31 owner and shall state the basis for the treble damages award  

Page 43 

1 in its judgment. The court shall award the prevailing party  

2 reasonable attorney's fees and costs incurred in connection  

3 with a claim that an action was filed in violation of this  

4 section.  

5 (4) Condominium associations may not expend  

6 association funds in prosecuting a SLAPP suit against a  

7 condominium unit owner.  

8 Section 7. Paragraphs (e) and (h) of subsection (4) of 

9 section 718.1255, Florida Statutes, are amended to read: 

10 718.1255 Alternative dispute resolution; voluntary 

11 mediation; mandatory nonbinding arbitration; legislative 

12 findings.-- 

13 (4) MANDATORY NONBINDING ARBITRATION AND MEDIATION OF 

14 DISPUTES.--The Division of Florida Land Sales, Condominiums, 

15 and Mobile Homes of the Department of Business and 

16 Professional Regulation shall employ full-time attorneys to 

17 act as arbitrators to conduct the arbitration hearings 

18 provided by this chapter. The division may also certify 

19 attorneys who are not employed by the division to act as 

20 arbitrators to conduct the arbitration hearings provided by 

21 this section. No person may be employed by the department as a 

22 full-time arbitrator unless he or she is a member in good 

23 standing of The Florida Bar. The department shall promulgate 

24 rules of procedure to govern such arbitration hearings 

25 including mediation incident thereto. The decision of an 

26 arbitrator shall be final; however, such a decision shall not 

27 be deemed final agency action. Nothing in this provision shall 

28 be construed to foreclose parties from proceeding in a trial 

29 de novo unless the parties have agreed that the arbitration is 

30 binding. If such judicial proceedings are initiated, the final 

31 

Page 44 

1 decision of the arbitrator shall be admissible in evidence in 

2 the trial de novo. 

3 (e) Either before or after the filing of the 

4 respondents' answer to the petition, any party may request 

5 that the arbitrator refer the case to mediation under this 

6 section and any rules adopted by the division. Upon receipt 

7 of a request for mediation, the division shall promptly refer

8 the case contact the parties to determine if there is  

9 agreement that mediation would be appropriate. If all parties  

10 agree, the dispute must be referred to mediation. 

11 Notwithstanding a lack of an agreement by all parties, The 

12 arbitrator may refer a dispute to mediation at any time. 

13 (h) Mediation proceedings must generally be conducted 

14 in accordance with the Florida Rules of Civil Procedure, and 

15 these proceedings are privileged and confidential to the same 

16 extent as court-ordered mediation. Persons who are not parties 

17 to the dispute are not allowed to attend the mediation 

18 conference without the consent of all parties, with the 

19 exception of counsel for the parties and corporate 

20 representatives designated to appear for a party. If the 

21 mediator declares an impasse after a mediation conference has 

22 been held, the arbitration proceeding terminates, unless all 

23 parties agree in writing to continue the arbitration 

24 proceeding, in which case the arbitrator's decision shall be 

25 either binding or nonbinding, as agreed upon by the parties; 

26 in the arbitration proceeding, the arbitrator shall not 

27 consider any evidence relating to the unsuccessful mediation 

28 except in a proceeding to impose sanctions for failure to 

29 appear at the mediation conference. If the parties do not 

30 agree to continue arbitration, the arbitrator shall enter an 

31 order of dismissal, and either party may institute a suit in a 

Page 45 

1 court of competent jurisdiction. The parties may seek to 

2 recover any costs and attorneys' fees incurred in connection 

3 with arbitration and mediation proceedings under this section

4 as part of the costs and fees that may be recovered by the 

5 prevailing party in any subsequent litigation. 

6 Section 8. Section 718.1257, Florida Statutes, is 

7 created to read: 

8 718.1257 Emotional-support animals.--  

9 (1) Every unit owner or renter of a condominium unit  

10 in this state has the right to own a companion animal and to  

11 have such animal live with him or her in the condominium unit  

12 if the companion animal is deemed helpful to the person's  

13 physical or psychological well-being as attested to by at  

14 least two qualified health care professionals.  

15 (2) Any municipal or county code or ordinance, or any  

16 purported rule, declaration, by-law, or other form of  

17 restriction contrary to the right provided in subsection (1)  

18 contained in any governing document of any condominium  

19 association shall be deemed unconscionable, and thus  

20 unenforceable, invalid, and of no legal effect.  

21 (3) An animal does not require specialized training or  

22 skill in assisting its owner to be classified as a companion  

23 animal under this section. The animal can be a cat, dog,  

24 ferret, bird, gerbil, or any other commonly accepted  

25 domesticated animal. However, if such training can be  

26 documented, a letter from only one qualified health care  

27 professional is required, as per pre-existing federal  

28 disability and fair housing laws.  

29 (4) Qualified health professionals include any  

30 physician or advanced registered nurse practitioner who is  

31 licensed in this state to prescribe medications for emotional  

Page 46 

1 or mental conditions, or any mental health worker, mental  

2 health counselor, psychologist, or social worker who is  

3 licensed in this state to practice counseling therapy. The  

4 letter must say that the animal is necessary to ameliorate and  

5 help with life functions for a condition covered under the  

6 Americans with Disabilities Act. The letter does not have to  

7 give details of the nature of the unit owner's or renter's  

8 disorder, in order not to invade the patient's privacy per the  

9 Health Insurance Portability and Accountability Act. Where the  

10 primary residence of the owner or renter is in another state,  

11 the qualified health care professional is defined as a  

12 qualified health care professional licensed in the owner's or  

13 renter's home state.  

14 (5) If it becomes necessary for an owner or renter of  

15 any condominium unit to enforce this section in court against  

16 an association that has threatened, either orally or in  

17 writing to limit his or her right to own and reside with a  

18 companion animal, the unit owner or renter shall be entitled  

19 to recover his or her reasonable costs and attorney's fees if

20 the unit owner or renter is the prevailing party. This  

21 attorney's fee provision is not reciprocal.  

22 Section 9. Subsection (1) of section 718.302, Florida 

23 Statutes, is amended to read: 

24 718.302 Agreements entered into by the association.-- 

25 (1) Any grant or reservation made by a declaration, 

26 lease, or other document, and any contract made by an 

27 association prior to assumption of control of the association 

28 by unit owners other than the developer, that provides for 

29 services, products, operation, maintenance, or management of a 

30 condominium association or property serving the unit owners of 

31 a condominium shall be fair and reasonable, and such grant, 

Page 47 

1 reservation, or contract may be canceled by unit owners other 

2 than the developer: 

3 (a) If the association operates only one condominium 

4 and the unit owners other than the developer have assumed 

5 control of the association, or if unit owners other than the 

6 developer own not less than 75 percent of the voting interests 

7 in the condominium, the cancellation shall be by concurrence 

8 of the owners of not less than 75 percent of the voting 

9 interests other than the voting interests owned by the 

10 developer. If a grant, reservation, or contract is so 

11 canceled and the unit owners other than the developer have not 

12 assumed control of the association, the association shall make 

13 a new contract or otherwise provide for maintenance, 

14 management, or operation in lieu of the canceled obligation, 

15 at the direction of the owners of not less than a majority of 

16 the voting interests in the condominium other than the voting 

17 interests owned by the developer. 

18 (b) If the association operates more than one 

19 condominium and the unit owners other than the developer have 

20 not assumed control of the association, and if unit owners 

21 other than the developer own at least 75 percent of the voting 

22 interests in a condominium operated by the association, any 

23 grant, reservation, or contract for maintenance, management, 

24 or operation of buildings containing the units in that 

25 condominium or of improvements used only by unit owners of 

26 that condominium may be canceled by concurrence of the owners 

27 of at least 75 percent of the voting interests in the 

28 condominium other than the voting interests owned by the 

29 developer. No grant, reservation, or contract for 

30 maintenance, management, or operation of recreational areas or 

31 any other property serving more than one condominium, and 

Page 48 

1 operated by more than one association, may be canceled except 

2 pursuant to paragraph (d). 

3 (c) If the association operates more than one 

4 condominium and the unit owners other than the developer have 

5 assumed control of the association, the cancellation shall be 

6 by concurrence of the owners of not less than 75 percent of 

7 the total number of voting interests in all condominiums 

8 operated by the association other than the voting interests 

9 owned by the developer. 

10 (d) If the owners of units in a condominium have the 

11 right to use property in common with owners of units in other 

12 condominiums and those condominiums are operated by more than 

13 one association, no grant, reservation, or contract for 

14 maintenance, management, or operation of the property serving 

15 more than one condominium may be canceled until unit owners 

16 other than the developer have assumed control of all of the 

17 associations operating the condominiums that are to be served 

18 by the recreational area or other property, after which 

19 cancellation may be effected by concurrence of the owners of 

20 not less than 75 percent of the total number of voting 

21 interests in those condominiums other than voting interests 

2 owned by the developer. 

23 Section 10. Paragraphs (f) and (g) are added to 

24 subsection (1) of section 718.3025, Florida Statutes, to read: 

25 718.3025 Agreements for operation, maintenance, or 

26 management of condominiums; specific requirements.-- 

27 (1) No written contract between a party contracting to 

28 provide maintenance or management services and an association 

29 which contract provides for operation, maintenance, or 

30 management of a condominium association or property serving 

31 

Page 49 

1 the unit owners of a condominium shall be valid or enforceable 

2 unless the contract: 

3 (f) Requires that all obligations under the contract  

4 be completed within a 1-year period.  

5 (g) Contains a provision expressly prohibiting  

6 automatic renewal of the contract.  

7 Section 11. Paragraph (a) of subsection (2) of section 

8 718.3026, Florida Statutes, is amended to read: 

9 718.3026 Contracts for products and services; in 

10 writing; bids; exceptions.--Associations with less than 100 

11 units may opt out of the provisions of this section if 

12 two-thirds of the unit owners vote to do so, which opt-out may 

13 be accomplished by a proxy specifically setting forth the 

14 exception from this section. 

15 (2)(a)1. Notwithstanding the foregoing, contracts with 

16 employees of the association, and contracts for attorney, 

17 accountant, architect, community association manager, 

18 timeshare management firm, engineering, and landscape 

19 architect services are not subject to the provisions of this 

20 section. 

21 2. A contract executed before January 1, 1992, and any 

22 renewal thereof, is not subject to the competitive bid 

23 requirements of this section. If a contract was awarded under 

24 the competitive bid procedures of this section, any renewal of 

25 that contract is not subject to such competitive bid 

26 requirements if the contract contains a provision that allows 

27 the board to cancel the contract on 30 days' notice. 

28 Materials, equipment, or services provided to a condominium 

29 under a local government franchise agreement by a franchise 

30 holder are not subject to the competitive bid requirements of 

31 this section. A contract with a manager, if made by a 

Page 50 

1 competitive bid, may be made for up to 3 years. A condominium 

2 whose declaration or bylaws provides for competitive bidding 

3 for services may operate under the provisions of that

4 declaration or bylaws in lieu of this section if those 

5 provisions are not less stringent than the requirements of 

6 this section. 

7 3. A contract by and between a service provider and an  

8 association may not be for a term in excess of 3 years and may  

9 not contain an automatic renewal clause.  

10 4. A contract for construction or repair of the  

11 property which exceeds 10 percent of the total annual budget  

12 of the association, including reserves, shall occur under the  

13 written advisement of an attorney.  

14 Section 12. Subsection (3) of section 718.303, Florida 

15 Statutes, is amended, and subsection (4) is added to that 

16 section, to read: 

17 718.303 Obligations of owners; waiver; levy of fine 

18 against unit by association.-- 

19 (3) If the declaration or bylaws so provide, the 

20 association may levy reasonable fines against a unit for the 

21 failure of the owner of the unit, or its occupant, licensee, 

22 or invitee, to comply with any provision of the declaration, 

23 the association bylaws, or reasonable rules of the 

24 association. No fine will become a lien against a unit. No 

25 fine may exceed $100 per violation. However, a fine may be 

26 levied on the basis of each day of a continuing violation, 

27 with a single notice and opportunity for hearing, provided 

28 that no such fine shall in the aggregate exceed $1,000. No 

29 fine may be levied except after giving reasonable notice and 

30 opportunity for a hearing to the unit owner and, if 

31 applicable, its licensee or invitee. The hearing must be held 

Page 51 

1 before a committee of other unit owners who are not members of  

2 the board of administration of the association. If the 

3 committee does not agree with the fine, the fine may not be 

4 levied. The provisions of this subsection do not apply to 

5 unoccupied units. 

6 (4) Anyone subject to an action under this section  

7 shall be notified of the violation by certified mail, return  

8 receipt requested, and, except in the case of imminent danger  

9 to person or property, has 30 days in which to respond in  

10 writing. If no response is provided and the violation  

11 continues or is repeated, the association may proceed under  

12 subsections (1) and (2) without further notice except as  

13 provided in subsection (3).  

14 Section 13. Subsections (1) and (2) of section 

15 718.404, Florida Statutes, are amended to read: 

16 718.404 Mixed-use condominiums.--When a condominium 

17 consists of both residential and commercial units, the 

18 following provisions shall apply: 19 (1) The condominium documents shall not provide that 20 the owner of any commercial unit shall have the authority to 

21 veto amendments to the declaration, articles of incorporation, 

22 bylaws, or rules or regulations of the association. It is  

23 intended that this subsection apply retroactively as a  

24 remedial measure.  

25 (2) Subject to s. 718.301, where the number of 

26 residential units in the condominium equals or exceeds 50 

27 percent of the total units operated by the association, owners 

28 of the residential units shall be entitled to vote for a 

29 majority of the seats on the board of administration. It is  

30 intended that this subsection apply retroactively as a  

31 remedial measure.  

Page 52 

1 Section 14. Paragraphs (e) and (j) of subsection (1) 

2 of section 718.501, Florida Statutes, are amended, and 

3 paragraph (n) is added to that subsection, to read: 

4 718.501 Powers and duties of Division of Florida Land 

5 Sales, Condominiums, and Mobile Homes.-- 

6 (1) The Division of Florida Land Sales, Condominiums, 

7 and Mobile Homes of the Department of Business and 

8 Professional Regulation, referred to as the "division" in this 

9 part, in addition to other powers and duties prescribed by 

10 chapter 498, has the power to enforce and ensure compliance 

11 with the provisions of this chapter and rules promulgated 

12 pursuant hereto relating to the development, construction, 

13 sale, lease, ownership, operation, and management of 

14 residential condominium units. In performing its duties, the 

15 division has the following powers and duties: 

16 (e) The division shall is authorized to prepare and 

17 disseminate a prospectus and other information to assist 

18 prospective owners, purchasers, lessees, and developers of 

19 residential condominiums in assessing the rights, privileges, 

20 and duties pertaining thereto. 

21 (j) The division shall provide training programs for 

22 condominium association board members and unit owners in  

23 conjunction with the recommendations of the ombudsman, at the  

24 associations' expense

25 (n) Upon a finding that any association has committed

26 a violation within the jurisdiction of the division, the  

27 division shall require the association to mail and post a  

28 notice to all unit owners setting forth the facts and findings  

29 relative to any and all violations, as well as a description  

30 of the corrective action required.  

31 

Page 53 

1 Section 15. Subsection (1) of section 718.5011

2 Florida Statutes, is amended to read: 

3 718.5011 Ombudsman; appointment; administration.-- 

4 (1) There is created an Office of the Condominium 

5 Ombudsman, to be located, solely for administrative purposes,  

6 within the Division of Florida Land Sales, Condominiums, and 

7 Mobile Homes. The ombudsman shall exercise his or her  

8 policymaking and other functions delegated by this chapter  

9 independently of the Department of Business and Professional  

10 Regulation and without approval or control of the department.  

11 The department shall render administrative support to the

12 Office of the Condominium Ombudsman in matters pertaining to  

13 budget, personnel, office space, equipment, and supplies. The 

14 functions of the office shall be funded by the Division of 

15 Florida Land Sales, Condominiums, and Mobile Homes Trust Fund. 

16 The ombudsman shall be a bureau chief of the division, and the 

17 office shall be set within the division in the same manner as 

18 any other bureau is staffed and funded. 

19 Section 16. Section 718.5012, Florida Statutes, is 

20 amended to read: 

21 718.5012 Ombudsman; powers and duties.-- 

22 (1) The ombudsman shall have the powers that are 

23 necessary to carry out the duties of his or her office, 

24 including the following specific powers: 

25 (a)(1) To have access to and use of all files and 

26 records of the division. 

27 (b)(2) To employ professional and clerical staff as 

28 necessary for the efficient operation of the office. 

29 (c)(3) To prepare and issue reports and 

30 recommendations to the Governor, the department, the division, 

31 the Advisory Council on Condominiums, the President of the 

Page 54 

1 Senate, and the Speaker of the House of Representatives on any 

2 matter or subject within the jurisdiction of the division. The 

3 ombudsman shall make recommendations he or she deems 

4 appropriate for legislation relative to division procedures, 

5 rules, jurisdiction, personnel, and functions. 

6 (d)(4) To act as liaison between the division, unit 

7 owners, boards of directors, board members, community 

8 association managers, and other affected parties. The 

9 ombudsman shall develop policies and procedures to assist unit 

10 owners, boards of directors, board members, community 

11 association managers, and other affected parties to understand 

12 their rights and responsibilities as set forth in this chapter 

13 and the condominium documents governing their respective 

14 association. The ombudsman shall coordinate and assist in the 

15 preparation and adoption of educational and reference 

16 material, and shall endeavor to coordinate with private or 

17 volunteer providers of these services, so that the 

18 availability of these resources is made known to the largest 

19 possible audience. 

20 (e)(5) To monitor and review procedures and disputes 

21 concerning condominium elections or meetings, including, but 

22 not limited to, recommending that the division pursue 

23 enforcement action in any manner where there is reasonable 

24 cause to believe that election misconduct has occurred. 

25 (f)(6) To make recommendations to the division for 

26 changes in rules and procedures for the filing, investigation, 

27 and resolution of complaints filed by unit owners, 

28 associations, and managers. 

29 (g)(7) To provide resources to assist members of 

30 boards of directors and officers of associations to carry out 

31 their powers and duties consistent with this chapter, division

Page 55 

1 rules, and the condominium documents governing the 

2 association. 

3 (h)(8) To order, encourage, and facilitate voluntary

4 meetings with and between unit owners, boards of directors, 

5 board members, community association managers, and other 

6 affected parties when the meetings may assist in resolving a 

7 dispute within a community association before a person submits 

8 a dispute for a formal or administrative remedy. It is the 

9 intent of the Legislature that the ombudsman act as a neutral 

10 resource for both the rights and responsibilities of unit 

11 owners, associations, and board members. 

12 (2)(9) Fifteen percent of the total voting interests 

13 in a condominium association, or six unit owners, whichever is 

14 greater, may petition the ombudsman to appoint an election 

15 monitor to attend the annual meeting of the unit owners and 

16 conduct the election of directors. The ombudsman shall appoint 

17 a division employee, a person or persons specializing in 

18 condominium election monitoring, or an attorney licensed to 

19 practice in this state as the election monitor. All costs 

20 associated with the election monitoring process shall be paid 

21 by the association. The division shall adopt a rule 

22 establishing procedures for the appointment of election 

23 monitors and the scope and extent of the monitor's role in the 

24 election process. 

25 (3) Any unit owner or association acting in good faith  

26 on the advice or opinion of the office of the ombudsman is  

27 immune from any penalties or actions.  

28 Section 17. Subsection (21) of section 718.504

29 Florida Statutes, is amended to read: 

30 718.504 Prospectus or offering circular.--Every 

31 developer of a residential condominium which contains more 

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1 than 20 residential units, or which is part of a group of 

2 residential condominiums which will be served by property to 

3 be used in common by unit owners of more than 20 residential 

4 units, shall prepare a prospectus or offering circular and 

5 file it with the Division of Florida Land Sales, Condominiums,

6 and Mobile Homes prior to entering into an enforceable 

7 contract of purchase and sale of any unit or lease of a unit 

8 for more than 5 years and shall furnish a copy of the 

9 prospectus or offering circular to each buyer. In addition to 

10 the prospectus or offering circular, each buyer shall be 

11 furnished a separate page entitled "Frequently Asked Questions 

12 and Answers," which shall be in accordance with a format 

13 approved by the division and a copy of the financial 

14 information required by s. 718.111. This page shall, in 

15 readable language, inform prospective purchasers regarding 

16 their voting rights and unit use restrictions, including 

17 restrictions on the leasing of a unit; shall indicate whether 

18 and in what amount the unit owners or the association is 

19 obligated to pay rent or land use fees for recreational or 

20 other commonly used facilities; shall contain a statement 

21 identifying that amount of assessment which, pursuant to the 

22 budget, would be levied upon each unit type, exclusive of any 

23 special assessments, and which shall further identify the 

24 basis upon which assessments are levied, whether monthly, 

25 quarterly, or otherwise; shall state and identify any court 

26 cases in which the association is currently a party of record 

27 in which the association may face liability in excess of 

28 $100,000; and which shall further state whether membership in 

29 a recreational facilities association is mandatory, and if so, 

30 shall identify the fees currently charged per unit type. The 

31 division shall by rule require such other disclosure as in its 

Page 57 

1 judgment will assist prospective purchasers. The prospectus or 

2 offering circular may include more than one condominium, 

3 although not all such units are being offered for sale as of 

4 the date of the prospectus or offering circular. The 

5 prospectus or offering circular must contain the following

 6 information: 7 (21) An estimated operating budget for the condominium 

8 and the association, and a schedule of the unit owner's 

9 expenses shall be attached as an exhibit and shall contain the 

10 following information: 

11 (a) The estimated monthly and annual revenues and  

12 expenses of the condominium and the association which that are 

13 earned by the association or collected from unit owners by 

14 assessments. 

15 (b) The estimated monthly and annual expenses of each

16 unit owner for a unit, other than common expenses paid by all 

17 unit owners, payable by the unit owner to persons or entities 

18 other than the association, as well as to the association, 

19 including fees assessed pursuant to s. 718.113(1) for 

20 maintenance of limited common elements where such costs are 

21 shared only by those entitled to use the limited common 

22 element, and the total estimated monthly and annual expense. 

23 There may be excluded from this estimate expenses which are 

24 not provided for or contemplated by the condominium documents, 

25 including, but not limited to, the costs of private telephone; 

26 maintenance of the interior of condominium units, which is not 

27 the obligation of the association; maid or janitorial services 

28 privately contracted for by the unit owners; utility bills 

29 billed directly to each unit owner for utility services to his 

30 or her unit; insurance premiums other than those incurred for 

31 policies obtained by the condominium; and similar personal 

Page 58 

1 expenses of the unit owner. A unit owner's estimated payments 

2 for assessments shall also be stated in the estimated amounts 

3 for the times when they will be due. 

4 (c) The estimated items of expenses of the condominium

5 and the association, except as excluded under paragraph (b), 

6 including, but not limited to, the following items, which 

7 shall be stated either as an association expense collectible 

8 by assessments or as unit owners' expenses payable to persons 

9 other than the association: 10 1. Expenses for the association and condominium: 

11 a. Administration of the association. 

12 b. Management fees. 

13 c. Maintenance. 

14 d. Rent for recreational and other commonly used 

15 facilities. 

16 e. Taxes upon association property. 

17 f. Taxes upon leased areas. 

18 g. Insurance. 19 h. Security provisions. 

20 i. Other expenses. 

21 j. Operating capital. 

22 k. Reserves. 

23 l. Fees payable to the division. 

24 2. Expenses for a unit owner: 

25 a. Rent for the unit, if subject to a lease. 

26 b. Rent payable by the unit owner directly to the 

27 lessor or agent under any recreational lease or lease for the 

28 use of commonly used facilities, which use and payment is a 

29 mandatory condition of ownership and is not included in the 

30 common expense or assessments for common maintenance paid by 

31 the unit owners to the association. 

Page 59

1 (d) The estimated amounts shall be stated for a period  

2 of at least 12 months and may distinguish between the period  

3 prior to the time unit owners other than the developer elect a  

4 majority of the board of administration and the period after  

5 that date.  

6 Section 18. Subsections (6) and (7) of section 

7 720.303, Florida Statutes, are amended to read: 

8 720.303 Association powers and duties; meetings of 

9 board; official records; budgets; financial reporting; 

10 association funds; recalls.-- 

11 (6) BUDGETS.-- 

12 (a) The association shall prepare an annual budget 

13 that sets out the annual operating expenses. The budget must 

14 reflect the estimated revenues and expenses for that year and 

15 the estimated surplus or deficit as of the end of the current 

16 year. The budget must set out separately all fees or charges 

17 paid for by the association for recreational amenities, 

18 whether owned by the association, the developer, or another 

19 person. The association shall provide each member with a copy 

20 of the annual budget or a written notice that a copy of the 

21 budget is available upon request at no charge to the member. 

22 The copy must be provided to the member within the time limits 

23 set forth in subsection (5). 

24 (b) In addition to annual operating expenses, the  

25 budget may include reserve accounts for capital expenditures  

26 and deferred maintenance for which the association is  

27 responsible to the extent that the governing documents do not  

28 limit increases in assessments, including reserves. If the  

29 budget of the association includes reserve accounts, such  

30 reserves shall be determined, maintained, and waived in the  

31 manner provided in this subsection. Once an association  

Page 60 

1 provides for reserve accounts in the budget, the association  

2 shall thereafter determine, maintain, and waive reserves in  

3 compliance with the provisions of this subsection.  

4 (c) If the budget of the association does not provide  

5 for reserve accounts governed by this subsection and the  

6 association is responsible for the repair and maintenance of  

7 capital improvements that may result in a special assessment  

8 if reserves are not provided, each financial report for the  

9 preceding fiscal year required by subsection (7) must contain  

10 the following statement in conspicuous type: THE BUDGET OF THE  

11 ASSOCIATION DOES NOT PROVIDE FOR RESERVE ACCOUNTS FOR CAPITAL  

12 EXPENDITURES AND DEFERRED MAINTENANCE THAT MAY RESULT IN  

13 SPECIAL ASSESSMENTS. OWNERS MAY ELECT TO PROVIDE FOR RESERVE  

14 ACCOUNTS UNDER THE PROVISIONS OF SECTION 720.303(6), FLORIDA  

15 STATUTES, UPON THE APPROVAL OF NOT LESS THAN A MAJORITY OF THE  

16 TOTAL VOTING INTERESTS OF THE ASSOCIATION.  

17 (d) An association is deemed to have provided for  

18 reserve accounts when reserve accounts have been initially  

19 established by the developer or when the membership of the  

20 association affirmatively elects to provide for reserves. If  

21 reserve accounts are not initially provided for by the  

22 developer, the membership of the association may elect to do  

23 so upon the affirmative approval of not less than a majority  

24 of the total voting interests of the association. The approval  

25 may be attained by vote of the members at a duly called  

26 meeting of the membership or upon a written consent executed  

27 by not less than a majority of the total voting interests in  

28 the community. The approval action of the membership shall  

29 state that reserve accounts shall be provided for in the  

30 budget and designate the components for which the reserve  

31 accounts are to be established. Upon approval by the  

Page 61 

1 membership, the board of directors shall provide for the  

2 required reserve accounts for inclusion in the budget in the  

3 next fiscal year following the approval and in each year  

4 thereafter. Once established as provided in this subsection,  

5 the reserve accounts shall be funded or maintained or shall  

6 have their funding waived in the manner provided in paragraph  

7 (f).  

8 (e) The amount to be reserved in any account  

9 established shall be computed by means of a formula that is  

10 based upon estimated remaining useful life and estimated  

11 replacement cost or deferred maintenance expense of each  

12 reserve item. The association may adjust replacement reserve  

13 assessments annually to take into account any changes in  

14 estimates of cost or useful life of a reserve item.  

15 (f) Once a reserve account or reserve accounts are  

16 established, the membership of the association, upon a  

17 majority vote at a meeting at which a quorum is present, may  

18 provide for no reserves or less reserves than required by this  

19 section. If a meeting of the unit owners is called to  

20 determine whether to waive or reduce the funding of reserves  

21 and no such result is achieved or a quorum is not present, the  

22 reserves as included in the budget shall go into effect. After  

23 the turnover, the developer may vote its voting interest to  

24 waive or reduce the funding of reserves. Any vote taken under  

25 this subsection to waive or reduce reserves shall be  

26 applicable only to one budget year.  

27 (g) Funding formulas for reserves authorized by this  

28 section shall be based on either a separate analysis of each  

29 of the required assets or a pooled analysis of two or more of  

30 the required assets.  

31 

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1 1. If the association maintains separate reserve  

2 accounts for each of the required assets, the amount of the  

3 contribution to each reserve account shall be the sum of the  

4 following two calculations:  

5 a. The total amount necessary, if any, to bring a  

6 negative component balance to zero.  

7 b. The total estimated deferred maintenance expense or  

8 estimated replacement cost of the reserve component less the  

9 estimated balance of the reserve component as of the beginning  

10 of the period for which the budget will be in effect. The  

11 remainder, if greater than zero, shall be divided by the  

12 estimated remaining useful life of the component.  

13 

14 The formula may be adjusted each year for changes in estimates  

15 and deferred maintenance performed during the year and may  

16 include factors such as inflation and earnings on invested  

17 funds.                  

18 2. If the association maintains a pooled account of  

19 two or more of the required reserve assets, the amount of the  

20 contribution to the pooled reserve account as disclosed on the  

21 proposed budget may not be less than that required to ensure  

22 that the balance at the beginning of the period for which the  

23 budget will go into effect plus the projected annual cash  

24 inflows over the remaining estimated useful life of all of the  

25 assets that make up the reserve pool are equal to or greater  

26 than the projected annual cash outflows over the remaining  

27 estimated useful lives of all of the assets that make up the  

28 reserve pool, based on the current reserve analysis. The

29 projected annual cash inflows may include estimated earnings  

30 from investment of principal. The reserve funding formula may  

31 not include any type of balloon payments.  

Page 63 

1 (h) Reserve funds and any interest accruing thereon  

2 shall remain in the reserve account or accounts and shall be  

3 used only for authorized reserve expenditures unless their use  

4 for other purposes is approved in advance by a majority vote  

5 at a meeting at which a quorum is present. Prior to turnover  

6 of control of an association by a developer to parcel owners,  

7 the developer-controlled association may not vote to use  

8 reserves for purposes other than those for which they were  

9 intended without the approval of a majority of all  

10 nondeveloper voting interests voting in person or by limited  

11 proxy at a duly called meeting of the association.  

12 (7) FINANCIAL REPORTING.--Within 90 days after the end  

13 of the fiscal year, or annually on a date provided in the  

14 bylaws, the association shall prepare and complete, or  

15 contract with a third party for the preparation and completion  

16 of, a financial report for the preceding fiscal year. Within  

17 21 days after the final financial report is completed by the  

18 association or received from the third party, but not later  

19 than 120 days after the end of the fiscal year or other date  

20 as provided in the bylaws, the association shall prepare an  

21 annual financial report within 60 days after the close of the  

22 fiscal year. The association shall, within the time limits set 

23 forth in subsection (5), provide each member with a copy of 

24 the annual financial report or a written notice that a copy of 

25 the financial report is available upon request at no charge to 

26 the member. Financial reports shall be prepared as follows: 

27 (a) An association that meets the criteria of this 

28 paragraph shall prepare or cause to be prepared a complete set 

29 of financial statements in accordance with generally accepted 

30 accounting principles as adopted by the Board of Accountancy

31 

Page 64 

1 The financial statements shall be based upon the association's 

2 total annual revenues, as follows: 

3 1. An association with total annual revenues of 

4 $100,000 or more, but less than $200,000, shall prepare 

5 compiled financial statements. 

6 2. An association with total annual revenues of at 

7 least $200,000, but less than $400,000, shall prepare reviewed 

8 financial statements. 

9 3. An association with total annual revenues of 

10 $400,000 or more shall prepare audited financial statements. 

11 (b)1. An association with total annual revenues of 

12 less than $100,000 shall prepare a report of cash receipts and 

13 expenditures. 

14 2. An association in a community of fewer than 50 

15 parcels, regardless of the association's annual revenues, may 

16 prepare a report of cash receipts and expenditures in lieu of 

17 financial statements required by paragraph (a) unless the 

18 governing documents provide otherwise. 

19 3. A report of cash receipts and disbursement must 

20 disclose the amount of receipts by accounts and receipt 

21 classifications and the amount of expenses by accounts and 

22 expense classifications, including, but not limited to, the 

23 following, as applicable: costs for security, professional, 

24 and management fees and expenses; taxes; costs for recreation 

25 facilities; expenses for refuse collection and utility 

26 services; expenses for lawn care; costs for building 

27 maintenance and repair; insurance costs; administration and 

28 salary expenses; and reserves if maintained by the 

29 association. 

30 (c) If 20 percent of the parcel owners petition the 

31 board for a level of financial reporting higher than that 

Page 65 

1 required by this section, the association shall duly notice 

2 and hold a meeting of members within 30 days of receipt of the 

3 petition for the purpose of voting on raising the level of 

4 reporting for that fiscal year. Upon approval of a majority of 

5 the total voting interests of the parcel owners, the 

6 association shall prepare or cause to be prepared, shall amend 

7 the budget or adopt a special assessment to pay for the 

8 financial report regardless of any provision to the contrary 

9 in the governing documents, and shall provide within 90 days 

10 of the meeting or the end of the fiscal year, whichever occurs 

11 later: 12 1. Compiled, reviewed, or audited financial 

13 statements, if the association is otherwise required to 

14 prepare a report of cash receipts and expenditures; 

15 2. Reviewed or audited financial statements, if the 

16 association is otherwise required to prepare compiled 

17 financial statements; or 

18 3. Audited financial statements if the association is 

19 otherwise required to prepare reviewed financial statements. 

20 (d) If approved by a majority of the voting interests 

21 present at a properly called meeting of the association, an 

22 association may prepare or cause to be prepared: 

23 1. A report of cash receipts and expenditures in lieu 

24 of a compiled, reviewed, or audited financial statement; 

25 2. A report of cash receipts and expenditures or a 

26 compiled financial statement in lieu of a reviewed or audited 

27 financial statement; or 

28 3. A report of cash receipts and expenditures, a 

29 compiled financial statement, or a reviewed financial 

30 statement in lieu of an audited financial statement. 

31 

Page 66 

1 Section 19. Section 720.307, Florida Statutes, is 

2 amended to read: 

3 720.307 Transition of association control in a 

4 community.--With respect to homeowners' associations: 

5 (1) Members other than the developer are entitled to 

6 elect at least a majority of the members of the board of 

7 directors of the homeowners' association when the earlier of 

8 the following events occurs: 

9 (a) Three months after 75 90 percent of the parcels in 

10 all phases of the community that will ultimately be operated 

11 by the homeowners' association have been conveyed to members; 

12 or 

13 (b) Such other percentage of the parcels has been 

14 conveyed to members, or such other date or event has occurred, 

15 as is set forth in the governing documents in order to comply 

16 with the requirements of any governmentally chartered entity 

17 with regard to the mortgage financing of parcels. 

18 

19 For purposes of this section, the term "members other than the 

20 developer" shall not include builders, contractors, or others 

21 who purchase a parcel for the purpose of constructing 

22 improvements thereon for resale. 

23 (2) The developer is entitled to elect at least one 

24 member of the board of directors of the homeowners' 

25 association as long as the developer holds for sale in the 

26 ordinary course of business at least 5 percent of the parcels 

27 in all phases of the community. After the developer 

28 relinquishes control of the homeowners' association, the 

29 developer may exercise the right to vote any developer-owned 

30 voting interests in the same manner as any other member,

31 except for purposes of reacquiring control of the homeowners' 

Page 67 

1 association or selecting the majority of the members of the 

2 board of directors. 

3 (3) Prior to turnover, the developer or owner of all  

4 common areas shall convey the title to all common areas to the  

5 association immediately upon incorporation of the association.  

6 If additional common areas are acquired prior to transition of  

7 control and subject to the governing documents, title to those  

8 common areas shall also be immediately transferred to the  

9 association.  

10 (4)(3) At the time the members are entitled to elect 

11 at least a majority of the board of directors of the 

12 homeowners' association, the developer shall, at the 

13 developer's expense, within no more than 90 days deliver the 

14 following documents to the board: 

15 (a) All deeds to common property owned by the 

16 association or the developer

17 (b) The original of the association's declarations of 

18 covenants and restrictions. 

19 (c) A certified copy of the articles of incorporation 

20 of the association. 

21 (d) A copy of the bylaws. 

22 (e) The minute books, including all minutes. 

23 (f) The books and records of the association. 

24 (g) Policies, rules, and regulations, if any, which 

25 have been adopted. 

26 (h) Resignations of directors who are required to 

27 resign because the developer is required to relinquish control 

28 of the association. 

29 (i) The financial records of the association from the 

30 date of incorporation through the date of turnover. 

31 (j) All association funds and control thereof. 

Page 68 

1 (k) All tangible property of the association. 

2 (l) A copy of all contracts which may be in force with 

3 the association as one of the parties. 

4 (m) A list of the names and addresses and telephone 

5 numbers of all contractors, subcontractors, or others in the 

6 current employ of the association. 

7 (n) Any and all insurance policies in effect. 

8 (o) Any permits issued to the association by 

9 governmental entities. 

10 (p) Any and all warranties in effect. 

11 (q) A roster of current homeowners and their addresses 

12 and telephone numbers and section and lot numbers. 

13 (r) Employment and service contracts in effect. 

14 (s) All other contracts and agreements in effect to 

15 which the association is a party. 

16 (t) The financial records, including financial  

17 statements of the association, and source documents from the  

18 incorporation of the association through the date of turnover.  

19 The records shall be audited by an independent certified  

20 public accountant for the period of the incorporation of the  

21 association or for the period covered by the last audit, if an  

22 audit has been performed for each fiscal year since  

23 incorporation. All financial statements shall be prepared in  

24 accordance with generally accepted accounting standards and  

25 shall be audited in accordance with generally accepted  

26 auditing standards as prescribed by the Board of Accountancy.  

27 The accountant performing the review shall examine to the  

28 extent necessary supporting documents and records, including  

29 the cash disbursements and related paid invoices to determine 

30 whether expenditures were for association purposes, and the 

31 billings, cash receipts, and related records to determine 

Page 69 

1 whether the developer was charged and paid the proper amounts 

2 of assessments. This paragraph applies to associations with a 

3 date of incorporation after December 31, 2007. 

4 (5)(4) This section applies to any mandatory 

5 homeowner's association existing under this chapter does not 

6 apply to a homeowners' association in existence on the 

7 effective date of this act, or to a homeowners' association, 

8 no matter when created, if such association is created in a 

9 community that is included in an effective 

10 development-of-regional-impact development order as of the 

11 effective date of this act, together with any approved 

12 modifications thereof

13 Section 20. Subsection (5) is added to section 

14 720.3075, Florida Statutes, to read: 

15 720.3075 Prohibited clauses in association 

16 documents.-- 

17 (5)(a) An association may not restrict a homeowner 

18 from mounting or employing shutters or other hurricane 

19 protection on any portion of the home. 

20 (b) Except as provided in paragraph (c), an 

21 association may not restrict a homeowner from mounting or 

22 employing temporary or permanent shutters or other hurricane 

23 protection on any portion of the home during any time that a 

24 hurricane warning has been declared, during any time when an 

25 evacuation order has been given, or for the following period 

26 after conclusion of the hurricane watch or evacuation order: 

27 1. Seven days; or 28 2. Fourteen days if the hurricane watch concerns a 

29 category 4 storm or greater or if the evacuation order lasts 

30 more than 3 days. 

31 

Page 70 

1 (c) If a local government restricts homeowners' 

2 mounting or employing temporary or permanent shutters or other 

3 hurricane protection, the local government may also authorize 

4 associations to adopt and enforce equal or lesser 

5 restrictions. 

6 (d) Except as provided in paragraph (c) or paragraph 

7 (e), an association may not restrict a homeowner from mounting 

8 or employing permanent shutters or other hurricane protection 

9 on any portion of the home. 

10 (e) If the association otherwise properly adopts 

11 restrictions governing color or form of shutters or other 

12 permanent exterior window coverings, the association may adopt 

13 and enforce equal or lesser restrictions that apply to 

14 permanent exterior hurricane protections. 

15 (f) An association may not restrict the time or 

16 duration for shutters or other hurricane protection to be open 

17 or closed during any period and may not restrict homeowners 

18 from mounting or employing temporary shutters or other 

19 hurricane protection on any portion of the home. 

20 Section 21. Notwithstanding any provision to the 

21 contrary contained in a declaration of condominium, 

22 condominium bylaws, or other documents, a condominium 

23 developer who rents or leases any unsold units in a 

24 condominium must pay all monthly maintenance fees on those 

25 units to the association as if the units were owned by 

26 individual owners. 

27 Section 22. This act shall take effect July 1, 2007. 

28 

29 

30 

31 

Page 71 

1 STATEMENT OF SUBSTANTIAL CHANGES CONTAINED IN COMMITTEE SUBSTITUTE FOR 

2 CS for Senate Bill 2816 

4 The committee substitute revises the requirement that association records be kept at a location within 30 miles 

5 driving distance of the condominium property to provide that the records must be kept at a location within the county in 

6 which the condominium property is located.


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