CONDOMINIUM ASSOCIATIONS (FS 718)

CONDOMINIUMS

718.103 718.104 718.105 718.110 718.111 718.112 718.1123
718.113 718.115 718.1255 718.302 718.3025 718.3026 718.303
718.501 718.5011 718.5012 718.502 718.504 718.508 718.509
718.608            

 

     Section 1.  Subsection (17) of section 718.103, Florida

Statutes, is amended to read:

     718.103  Definitions.--As used in this chapter, the term:

     (17)  "Division" means the Division of Florida Land Sales,

Condominiums, Homeowners' Associations, and Mobile Homes of the

Department of Business and Professional Regulation.

     Section 2.  Paragraph (f) of subsection (4) of section

718.104, Florida Statutes, is amended to read:

     718.104  Creation of condominiums; contents of

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

created pursuant to this chapter.

     (4)  The declaration must contain or provide for the

following matters:

     (f)  The undivided share of ownership of the common

elements and common surplus of the condominium that is

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

the whole. In the declaration of condominium for residential

condominiums created after April 1, 2007 1992, the ownership

share of the common elements assigned to each residential unit

shall be based either upon the total square footage of each

residential unit in uniform relationship to the total square

footage of each other residential unit in the condominium or on

an equal fractional basis.

     Section 3.  Paragraph (c) of subsection (4) of section

718.105, Florida Statutes, is amended to read:

     718.105  Recording of declaration.--

     (4)

     (c)  If the sum of money held by the clerk has not been

paid to the developer or association as provided in paragraph

(b) by 3 years after the date the declaration was originally

recorded, the clerk in his or her discretion may notify, in

writing, the registered agent of the association that the sum is

still available and the purpose for which it was deposited. If

the association does not record the certificate within 90 days

after the clerk has given the notice, the clerk may disburse the

money to the developer. If the developer cannot be located, the

clerk shall disburse the money to the Division of Florida Land

Sales, Condominiums, Homeowners' Associations, and Mobile Homes

for deposit in the Division of Florida Land Sales, Condominiums,

Homeowners' Associations, and Mobile Homes Trust Fund.

     Section 4.  Paragraph (d) is added to subsection (1) of

section 718.110, Florida Statutes, to read:

     718.110  Amendment of declaration; correction of error or

omission in declaration by circuit court.--

     (1)

     (d)  Notice of a proposed amendment to the declaration

shall be sent to the unit owner by certified mail.

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

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

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

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

     718.111  The association.--

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

irrevocable right of access to each unit during reasonable

hours, when necessary for the maintenance, repair, or

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

to be maintained by the association pursuant to the declaration

or as necessary to prevent damage to the common elements or to a

unit or units. Except in cases of emergency, the association

must give the unit owner 24 hours' advance written notice of

intent to access the unit and such access must include two

persons, one of whom must be a member of the board of

administration.

     (7)  TITLE TO PROPERTY.--

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

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

a portion of the common elements to a condemning authority for

the purposes of providing utility easements, right-of-way

expansion, or other public purposes, whether negotiated or as a

result of eminent domain proceedings.

     (12)  OFFICIAL RECORDS.-- 

         (a)

11.  Accounting records for the association and separate accounting

records for each condominium which the association operates. All 

accounting records shall be maintained for a period of not less than 

7 years. Any officer, director, or manager who knowingly or intentionally

defaces, destroys or fails to create, or maintain accounting records is

personally subject to a civil penalty pursuant to s. 718.501(1)(d) and

appropriate criminal sanctions. The accounting records shall include,

but are not limited to:

a.  Accurate, itemized, and detailed records of all receipts and

expenditures.

b.  A current account and a monthly, bimonthly, or quarterly statement 

of the account for each unit designating the name of the unit owner,

the due date and amount of each assessment, the amount paid upon

the account, and the balance due.

c.  All audits, reviews, accounting statements, and financial reports 

of the association or condominium.

d.  All contracts for work to be performed. Bids for work to be 

performed shall also be considered official records and shall 

be maintained for a period of 1 year.

     (b)  The official records of the association shall be

maintained within the state county. The records of the association

shall be made available to a unit owner, at a location within 30

miles' driving distance of the condominium property, within 5

working days after receipt of written request by the board or

its designee. This paragraph may be complied with by having a

copy of the official records of the association available for

inspection or copying on the condominium property or association

property.

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

inspection by any association member or the authorized

representative of such member at all reasonable times. The right

to inspect the records includes the right to make or obtain

copies, at the reasonable expense, if any, of the association

member. The association may adopt reasonable rules regarding the

frequency, time, location, notice, and manner of record

inspections and copying. The failure of an association to

provide the records within 10 working days after receipt of a

written request shall create a rebuttable presumption that the

association willfully failed to comply with this paragraph. A

unit owner who is denied access to official records is entitled

to the actual damages or minimum damages for the association's

willful failure to comply with this paragraph. The minimum

damages shall be $50 per calendar day up to 10 days, the

calculation to begin on the 11th working day after receipt of

the written request. The failure to permit inspection of the

association records as provided herein entitles any person

prevailing in an enforcement action to recover reasonable

attorney's fees from the person in control of the records who,

directly or indirectly, knowingly denied access to the records

for inspection. Any officer, director, or manager who knowingly

or intentionally defaces, destroys or fails to create, or maintain

accounting records is personally subject to a civil penalty pursuant

to s. 718.501(1)(d) and appropriate criminal sanctions. The

The association shall maintain an adequate number of copies of

the declaration, articles of incorporation, bylaws, and rules, and all 

amendments to each of the foregoing, as well as the question 

and answer sheet provided for in s. 718.504 and year-end 

financial information required in this section on the 

condominium property to ensure their availability to unit 

owners and prospective purchasers, and may charge its

actual costs for preparing and furnishing these documents to

those requesting the same. Notwithstanding the provisions of

this paragraph, the following records shall not be accessible to

unit owners:

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

described in s. 90.502; and any record protected by the work-

product privilege, including any record prepared by an

association attorney or prepared at the attorney's express

direction; which reflects a mental impression, conclusion,

litigation strategy, or legal theory of the attorney or the

association, and which was prepared exclusively for civil or

criminal litigation or for adversarial administrative

proceedings, or which was prepared in anticipation of imminent

civil or criminal litigation or imminent adversarial

administrative proceedings until the conclusion of the

litigation or adversarial administrative proceedings.

     2.  Information obtained by an association in connection

with the approval of the lease, sale, or other transfer of a

unit.

     3.  Medical records of unit owners.

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

credit card numbers, and other personal identifying information

of unit owners, occupants, or tenants.

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

the fiscal year, or annually on a date provided in the bylaws,

the association shall prepare and complete, or contract for the

preparation and completion of, a financial report for the

preceding fiscal year. Within 21 days after the final financial

report is completed by the association or received from the

third party, but not later than 120 days after the end of the

fiscal year or other date as provided in the bylaws, the

association shall mail to each unit owner at the address last

furnished to the association by the unit owner, or hand deliver

to each unit owner, a copy of the financial report or a notice

that a copy of the financial report will be mailed or hand

delivered to the unit owner, without charge, upon receipt of a

written request from the unit owner. The division shall adopt

rules setting forth uniform accounting principles and standards

to be used by all associations and shall adopt rules addressing

financial reporting requirements for multicondominium

associations. In adopting such rules, the division shall

consider the number of members and annual revenues of an

association. Financial reports shall be prepared as follows:

     (a)  An association that meets the criteria of this

paragraph shall prepare or cause to be prepared a complete set

of financial statements in accordance with generally accepted

accounting principles. The financial statements shall be based

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

     1.  An association with total annual revenues of $100,000

or more, but less than $200,000, shall prepare compiled

financial statements.

     2.  An association with total annual revenues of at least

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

financial statements.

     3.  An association with total annual revenues of $400,000

or more shall prepare audited financial statements.

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

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

expenditures.

     2.  An association which operates less than 50 units,

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

report of cash receipts and expenditures in lieu of financial

statements required by paragraph (a).

     3.  A report of cash receipts and disbursements must

disclose the amount of receipts by accounts and receipt

classifications and the amount of expenses by accounts and

expense classifications, including, but not limited to, the

following, as applicable: costs for security, professional and

management fees and expenses, taxes, costs for recreation

facilities, expenses for refuse collection and utility services,

expenses for lawn care, costs for building maintenance and

repair, insurance costs, administration and salary expenses, and

reserves accumulated and expended for capital expenditures,

deferred maintenance, and any other category for which the

association maintains reserves.

     (c)  An association may prepare or cause to be prepared,

without a meeting of or approval by the unit owners:

     1.  Compiled, reviewed, or audited financial statements, if

the association is required to prepare a report of cash receipts

and expenditures;

     2.  Reviewed or audited financial statements, if the

association is required to prepare compiled financial

statements; or

     3.  Audited financial statements if the association is

required to prepare reviewed financial statements.

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

present at a properly called meeting of the association, an

association may prepare or cause to be prepared:

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

compiled, reviewed, or audited financial statement;

     2.  A report of cash receipts and expenditures or a

compiled financial statement in lieu of a reviewed or audited

financial statement; or

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

financial statement, or a reviewed financial statement in lieu

of an audited financial statement.

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

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

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

developer has not turned over control of the association, all

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

to the preparation of financial reports for the first 2 fiscal

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

year in which the declaration is recorded. Thereafter, all unit

owners except the developer may vote on such issues until

control is turned over to the association by the developer. An

association or board of administration may not waive the

financial reporting requirements of this section for more than 2

years.

     (15)  RECONSTRUCTION AFTER CASUALTY.--

     (a)  In the event the condominium property and units are

damaged after a casualty, the board of administration shall

obtain reliable and detailed estimates of the cost necessary to

repair and replace the damaged property to substantially the

same condition existing immediately prior to the casualty and

substantially in accordance with the original plans and

specifications of the condominium as soon as possible and not

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

condominium property exceeds 50 percent of the property's value,

the condominium may be terminated unless 75 percent of the unit

owners agree to reconstruction and repair within 90 days after

the casualty.

     (b)  The board of administration shall engage the services

of a registered architect and knowledgeable construction

specialists to prepare any necessary plans and specifications

and shall receive and approve bids for reconstruction, execute

all necessary contracts for restoration, and arrange for

disbursement of construction funds, the approval of work, and

all other matters pertaining to the repairs and reconstruction

required.

     (c)  If the proceeds of the hazard insurance policy

maintained by the association pursuant to paragraph (11)(b) are

insufficient to pay the estimated costs of reconstruction or at

any time during reconstruction and repair, assessments shall be

made against all unit owners according to their share of the

common elements and expenses as set forth in the declaration of

condominium.

     (d)  Assessments shall be made against unit owners for

damage to their units according to the cost of reconstruction or

repair of their respective units. The assessments shall be

levied and collected as all other assessments are provided for

in this chapter.

     Section 6.  Subsection (2) of section 718.112, Florida

Statutes, is amended to read:

     718.112  Bylaws.--

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

shall provide for the following and, if they do not do so, shall

be deemed to include the following:

     (a)  Administration.--

     1.  The form of administration of the association shall be

described indicating the title of the officers and board of

administration and specifying the powers, duties, manner of

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

boards. In the absence of such a provision or determination by

the board or membership, the board of administration shall be

composed of five members who are unit owners, except in the case

of a condominium which has five or fewer units, in which case in

a not-for-profit corporation the board shall consist of not

fewer than three members who are unit owners. In the absence of

provisions to the contrary in the bylaws, the board of

administration shall have a president, a secretary, and a

treasurer, who shall perform the duties of such officers

customarily performed by officers of corporations. Unless

prohibited in the bylaws, the board of administration may

appoint other officers and grant them the duties it deems

appropriate. Unless otherwise provided in the bylaws, the

officers shall serve without compensation and at the pleasure of

the board of administration. Unless otherwise provided in the

bylaws, the members of the board shall serve without

compensation.

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

mail with the board of administration, the board shall respond

in writing by certified mail, return receipt requested, to the

unit owner within 30 days after of receipt of the inquiry. The

board's response shall either give a substantive response to the

inquirer, notify the inquirer that a legal opinion has been

requested, or notify the inquirer that advice has been requested

from the division. If the board requests advice from the

division, the board shall, within 10 days after of its receipt

of the advice, provide in writing by certified mail a

substantive response to the inquirer. If a legal opinion is

requested, the board shall, within 60 days after the receipt of

the inquiry, provide in writing by certified mail a substantive

response to the inquiry. The failure to provide a substantive

response to the inquiry as provided herein precludes the board

from recovering attorney's fees and costs in any subsequent

litigation, administrative proceeding, or arbitration arising

out of the inquiry. The association may through its board of

administration adopt reasonable rules and regulations regarding

the frequency and manner of responding to unit owner inquiries,

one of which may be that the association is only obligated to

respond to one written inquiry per unit in any given 30-day

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

be responded to in the subsequent 30-day period, or periods, as

applicable.

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

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

percentage of voting interests required to constitute a quorum

at a meeting of the members shall be a majority of the voting

interests. Unless otherwise provided in this chapter or in the

declaration, articles of incorporation, or bylaws, and except as

provided in subparagraph (d)3., decisions shall be made by

owners of a majority of the voting interests represented at a

meeting at which a quorum is present.

     2.  Except as specifically otherwise provided herein, after

January 1, 1992, unit owners may not vote by general proxy, but

may vote by limited proxies substantially conforming to a

limited proxy form adopted by the division. Limited proxies and

general proxies may be used to establish a quorum. Limited

proxies shall be used for votes taken to waive or reduce

reserves in accordance with subparagraph (f)2.; for votes taken

to waive the financial reporting requirements of s. 718.111(13);

for votes taken to amend the declaration pursuant to s. 718.110;

for votes taken to amend the articles of incorporation or bylaws

pursuant to this section; and for any other matter for which

this chapter requires or permits a vote of the unit owners.

Except as provided in paragraph (d), after January 1, 1992, No

proxy, limited or general, shall be used in the election of

board members. General proxies may be used for other matters for

which limited proxies are not required, and may also be used in

voting for nonsubstantive changes to items for which a limited

proxy is required and given. Notwithstanding the provisions of

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

meetings. Nothing contained herein shall limit the use of

general proxies or require the use of limited proxies for any

agenda item or election at any meeting of a timeshare

condominium association.

     3.  Any proxy given shall be effective only for the

specific meeting for which originally given and any lawfully

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

for a period longer than 90 days after the date of the first

meeting for which it was given. Every proxy is revocable at any

time at the pleasure of the unit owner executing it.

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

may submit in writing his or her agreement or disagreement with

any action taken at a meeting that the member did not attend.

This agreement or disagreement may not be used as a vote for or

against the action taken and may not be used for the purposes of

creating a quorum.

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

telephone conference, those board or committee members attending

by telephone conference may be counted toward obtaining a quorum

and may vote by telephone. A telephone speaker must be used so

that the conversation of those board or committee members

attending by telephone may be heard by the board or committee

members attending in person as well as by any unit owners

present at a meeting.

6.  Votes allocated to units, space, or elements owned by the

association may not be cast for any purpose.

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

board of administration at which a quorum of the members is

present shall be open to all unit owners. No action shall be

taken or resolution made without an open meeting of the board of

administration. The board of administration shall address agenda

items proposed by a petition of 20 percent of the unit owners.

Unless otherwise provided in the bylaws, boards of

administration shall use rules of parliamentary procedure in

conducting all association meetings and business. A unit owner's

facsimile signature shall constitute the unit owner's original

signature in any matter under this chapter that requires the

unit owner's signature. Correspondence from the board of

administration to unit owners shall be accomplished by the same

delivery method used by the unit owner except as otherwise

provided in this paragraph. Any unit owner may tape record or

videotape meetings of the board of administration. The right to

attend such meetings includes the right to speak at such

meetings with reference to all designated agenda items. The

division shall adopt reasonable rules governing the tape

recording and videotaping of the meeting. The association may

adopt written reasonable rules governing the frequency,

duration, and manner of unit owner statements. Adequate notice

of all meetings, which notice shall specifically incorporate an

identification of agenda items, shall be posted conspicuously on

the condominium property at least 48 continuous hours preceding

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

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

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

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

noticed and ratified at the next regular meeting of the board.

However, written notice of any meeting at which nonemergency

special assessments, or at which amendment to rules regarding

unit use, will be considered shall be mailed, delivered, or

electronically transmitted to the unit owners and posted

conspicuously on the condominium property not less than 14 days

prior to the meeting. Evidence of compliance with this 14-day

notice shall be made by an affidavit executed by the person

providing the notice and filed among the official records of the

association. Upon notice to the unit owners, the board shall by

duly adopted rule designate a specific location on the

condominium property or association property upon which all

notices of board meetings shall be posted. If there is no

condominium property or association property upon which notices

can be posted, notices of board meetings shall be mailed,

delivered, or electronically transmitted at least 14 days before

the meeting to the owner of each unit. In lieu of or in addition

to the physical posting of notice of any meeting of the board of

administration on the condominium property, the association may,

by reasonable rule, adopt a procedure for conspicuously posting

and repeatedly broadcasting the notice and the agenda on a

closed-circuit cable television system serving the condominium

association. However, if broadcast notice is used in lieu of a

notice posted physically on the condominium property, the notice

and agenda must be broadcast at least four times every broadcast

hour of each day that a posted notice is otherwise required

under this section. When broadcast notice is provided, the

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

sufficient continuous length of time so as to allow an average

reader to observe the notice and read and comprehend the entire

content of the notice and the agenda. Notice of any meeting in

which regular or special assessments against unit owners are to

be considered for any reason shall specifically state contain a

statement that assessments will be considered and the nature,

cost, and breakdown of any such assessments. Meetings of a

committee to take final action on behalf of the board or make

recommendations to the board regarding the association budget

are subject to the provisions of this paragraph. Meetings of a

committee that does not take final action on behalf of the board

or make recommendations to the board regarding the association

budget are subject to the provisions of this section, unless

those meetings are exempted from this section by the bylaws of

the association. Notwithstanding any other law, the requirement

that board meetings and committee meetings be open to the unit

owners is inapplicable to meetings between the board or a

committee and the association's attorney, with respect to

proposed or pending litigation, when the meeting is held for the

purpose of seeking or rendering legal advice.

     (d)  Unit owner meetings.--

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

held at the location provided in the association bylaws, and if 

the bylaws are silent on the location, the meeting shall be held 

in the State of Florida and within 30 miles of the condominium 

property. Unless the bylaws provide otherwise, a vacancy on the

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

by electing a new board member, and the election shall be by

secret ballot; however, if the number of vacancies equals or

exceeds the number of candidates, no election is required. If

there is no provision in the bylaws for terms of the members of

the board, the terms of all members of the board shall expire

upon the election of their successors at the annual meeting.

A unit owner may not serve on the board as a director for more

than two terms nor longer than four years. A member may not

serve as president or vice president of the corporation for more

 that one term. Co-owners of a unit may not serve as members

of the board of administration during the same fiscal year. Any

unit owner desiring to be a candidate for board membership

shall comply with subparagraph 3. The only prohibition against

eligibility for board membership shall be for a person who has

been convicted of any felony by any court of record in the

United States and who has not had his or her right to vote

restored pursuant to law in the jurisdiction of his or her

residence is not eligible for board membership. The validity of

an action by the board is not affected if it is later determined

that a member of the board is ineligible for board membership

due to having been convicted of a felony.

     2.  The bylaws shall provide the method of calling meetings

of unit owners, including annual meetings. Written notice, which

notice must include an agenda, shall be mailed, hand delivered,

or electronically transmitted to each unit owner at least 14

days prior to the annual meeting and shall be posted in a

conspicuous place on the condominium property at least 14

continuous days preceding the annual meeting. Upon notice to the

unit owners, the board shall by duly adopted rule designate a

specific location on the condominium property or association

property upon which all notices of unit owner meetings shall be

posted; however, if there is no condominium property or

association property upon which notices can be posted, this

requirement does not apply. In lieu of or in addition to the

physical posting of notice of any meeting of the unit owners on

the condominium property, the association may, by reasonable

rule, adopt a procedure for conspicuously posting and repeatedly

broadcasting the