|
(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 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. Unless a unit
owner waives in writing
|
|
the right to receive notice of the
annual meeting, such notice
|
|
shall be hand delivered, mailed, or
electronically transmitted
|
|
to each unit owner. Notice for meetings
and notice for all other
|
|
purposes shall be mailed to each unit
owner at the address last
|
|
furnished to the association by the unit
owner, or hand
|
|
delivered to each unit owner. However,
if a unit is owned by
|
|
more than one person, the association
shall provide notice, for
|
|
meetings and all other purposes, to that
one address which the
|
|
developer initially identifies for that
purpose and thereafter
|
|
as one or more of the owners of the unit
shall so advise the
|
|
association in writing, or if no address
is given or the owners
|
|
of the unit do not agree, to the address
provided on the deed of
|
|
record. An officer of the association,
or the manager or other
|
|
person providing the
first notice of the association meeting,
|
|
and the second
notice as provided for in subparagraph 3., shall
|
|
provide an affidavit or United States
Postal Service certificate
|
|
of mailing, to be included in the
official records of the
|
|
association affirming that the notices
were notice was mailed
or
|
|
hand delivered, in accordance with this
provision.
|
|
3. The
members of the board shall be elected by written
|
|
ballot or voting machine. Proxies shall
in no event be used in
|
|
electing the board, either in general
elections or elections to
|
|
fill vacancies caused by recall,
resignation, or otherwise,
|
|
unless otherwise provided in this
chapter. Not less than 60 days
|
|
before a scheduled election, the
association or its
|
|
representative
shall mail, deliver, or electronically transmit,
|
|
whether by separate association mailing
or included in another
|
|
association mailing, delivery, or
transmission, including
|
|
regularly published newsletters, to each
unit owner entitled to
|
|
a vote, a first notice of the date of
the election. Any unit
|
|
owner or other eligible person desiring
to be a candidate for
|
|
the board must give written notice to
the association or its
|
|
representative
not less than 40 days before a scheduled
|
|
election. Together with the written
notice and agenda as set
|
|
forth in subparagraph 2., the
association or its representative
|
|
shall mail, deliver, or electronically
transmit a second notice
|
|
of the election to all unit owners
entitled to vote therein,
|
|
together with a ballot which shall list
all candidates. Upon
|
|
request of a candidate, the association or
its representative
|
|
shall include an information sheet, no
larger than 81/2 inches
|
|
by 11 inches, which must be furnished by
the candidate not less
|
|
than 35 days before the election, to be
included with the
|
|
mailing, delivery, or transmission of
the ballot, with the costs
|
|
of mailing, delivery, or electronic
transmission and copying to
|
|
be borne by the association. The
association or its
|
|
representative
is not liable for the contents of the information
|
|
sheets prepared by the candidates. In
order to reduce costs, the
|
|
association may print
or duplicate the information sheets on
|
|
both sides of
the paper. The division shall by rule establish
|
|
voting procedures consistent with the
provisions contained
|
|
herein, including rules establishing
procedures for giving
|
|
notice by electronic transmission and
rules providing for the
|
|
secrecy of ballots. All
ballot envelopes must be placed in a
|
|
locked or sealed
ballot drop box immediately upon receipt, and
|
|
the box shall not be
opened in advance of the election meeting.
|
|
Elections shall be decided by a
plurality of those ballots cast.
|
|
There shall be no quorum requirement;
however, at least 20
|
|
percent of the eligible voters must cast
a ballot in order to
|
|
have a valid election of members of the
board. No unit owner
|
|
shall permit any other person to vote
his or her ballot, except
for
|
|
a
person acting under a specific power of attorney,
and any
|
|
such ballots improperly cast shall be
deemed invalid, provided
|
|
any unit owner who violates this
provision may be fined by the
|
|
association in accordance with s.
718.303. A unit owner who
|
|
needs assistance in casting the ballot
for the reasons stated in
|
|
s. 101.051 may obtain assistance in
casting the ballot. The
|
|
regular election shall occur on the date
of the annual meeting.
|
|
The provisions of this subparagraph
shall not apply to timeshare
|
|
condominium associations.
Notwithstanding the provisions of this
|
|
subparagraph, an election is not
required unless more candidates
|
|
file notices of intent to run or are
nominated than board
|
|
vacancies exist.
|
|
4. Any
approval by unit owners called for by this chapter
|
|
or the applicable declaration or bylaws,
including, but not
|
|
limited to, the approval requirement in
s. 718.111(8), shall be
|
|
made at a duly noticed meeting of unit
owners and shall be
|
|
subject to all requirements of this
chapter or the applicable
|
|
condominium documents relating to unit
owner decisionmaking,
|
|
except that unit owners may take action
by written agreement,
|
|
without meetings, on matters for which
action by written
|
|
agreement without meetings is expressly
allowed by the
|
|
applicable bylaws or declaration or any
statute that provides
|
|
for such action.
|
|
5. Unit
owners may waive notice of specific meetings if
|
|
allowed by the applicable bylaws or
declaration or any statute.
|
|
If authorized by the bylaws, notice of
meetings of the board of
|
|
administration, unit owner meetings,
except unit owner meetings
|
|
called to recall board members under
paragraph (j), and
|
|
committee meetings may be given by
electronic transmission to
|
|
unit owners who consent to receive
notice by electronic
|
|
transmission.
|
|
6. Unit
owners shall have the right to participate in
|
|
meetings of unit owners with reference
to all designated agenda
|
|
items. However, the association may
adopt reasonable rules
|
|
governing the frequency, duration, and
manner of unit owner
|
|
participation.
|
|
7. Any
unit owner may tape record or videotape a meeting
|
|
of the unit owners subject to reasonable
rules adopted by the
|
|
division.
|
|
8. Unless
otherwise provided in the bylaws, any vacancy
|
|
occurring on the board before the
expiration of a term may be
|
|
filled by the affirmative vote of the
majority of the remaining
|
|
directors, even if the remaining
directors constitute less than
|
|
a quorum, or by the sole remaining
director. In the alternative,
|
|
a board may hold an election to fill the
vacancy, in which case
|
|
the election procedures must conform to
the requirements of
|
|
subparagraph 3. unless
the association has opted out of the
|
|
statutory election
process, in which case the bylaws of the
|
|
association
control. Unless otherwise provided in the bylaws, a
|
|
board member appointed or elected under
this section shall fill
|
|
the vacancy for the unexpired term of
the seat being filled.
|
|
Filling vacancies created by recall is
governed by paragraph (j)
|
|
and rules adopted by the division.
|
|
9. Unit
owners shall have the right to have items placed
|
|
on the agenda of the
annual meeting and voted upon if a written
|
|
request is made to
the board of administration by 20 percent or
|
|
more of all voting
interests at least 90 days before the date of
|
|
the annual meeting.
|
|
|
|
Notwithstanding
subparagraphs (b)2. and (d)3., an association
|
|
may, by the
affirmative vote of a majority of the total voting
|
|
interests, provide
for different voting and election procedures
|
|
in its bylaws, which
vote may be by a proxy specifically
|
|
delineating the
different voting and election procedures. The
|
|
different voting and
election procedures may provide for
|
|
elections to be
conducted by limited or general proxy.
|
|
(e) Budget
meeting.--
|
|
1. Any
meeting at which a proposed annual budget of an
|
|
association will be considered by the
board or unit owners shall
|
|
be open to all unit owners. At least 14
days prior to such a
|
|
meeting, the board shall hand deliver to
each unit owner, mail
|
|
to each unit owner at the address last
furnished to the
|
|
association by the unit owner, or
electronically transmit to the
|
|
location furnished by the unit owner for
that purpose a notice
|
|
of such meeting and a copy of the
proposed annual budget. An
|
|
officer or manager of the association,
or other person providing
|
|
notice of such meeting, shall execute an
affidavit evidencing
|
|
compliance with such notice requirement,
and such affidavit
|
|
shall be filed among the official
records of the association.
|
|
2.a. If
a board adopts in any fiscal year an annual budget
|
|
which requires assessments against unit
owners which exceed 115
|
|
percent of assessments for the preceding
fiscal year, the board
|
|
shall conduct a special meeting of the
unit owners to consider a
|
|
substitute budget if the board receives,
within 21 days after
|
|
adoption of the annual budget, a written
request for a special
|
|
meeting from at least 10 percent of all
voting interests. The
|
|
special meeting shall be conducted
within 60 days after adoption
|
|
of the annual budget. At least 14 days
prior to such special
|
|
meeting, the board shall hand deliver to
each unit owner, or
|
|
mail to each unit owner at the address
last furnished to the
|
|
association, a notice of the meeting. An
officer or manager of
|
|
the association, or other person
providing notice of such
|
|
meeting shall execute an affidavit
evidencing compliance with
|
|
this notice requirement, and such
affidavit shall be filed among
|
|
the official records of the association.
Unit owners may
|
|
consider and adopt a substitute budget
at the special meeting. A
|
|
substitute budget is adopted if approved
by a majority of all
|
|
voting interests unless the bylaws
require adoption by a greater
|
|
percentage of voting interests. If there
is not a quorum at the
|
|
special meeting or a substitute budget
is not adopted, the
|
|
annual budget previously adopted by the
board shall take effect
|
|
as scheduled.
|
|
b. Any
determination of whether assessments exceed 115
|
|
percent of assessments for the prior
fiscal year shall exclude
|
|
any authorized provision for reasonable
reserves for repair or
|
|
replacement of the condominium property,
anticipated expenses of
|
|
the association which the board does not
expect to be incurred
|
|
on a regular or annual basis, or
assessments for betterments to
|
|
the condominium property.
|
|
c. If
the developer controls the board, assessments shall
|
|
not exceed 115 percent of assessments
for the prior fiscal year
|
|
unless approved by a majority of all
voting interests.
|
|
(f) Annual
budget.--
|
|
1. The
association shall prepare an annual budget of
|
|
estimated revenues
and expenses. The adopted budget of the prior
|
|
fiscal year shall
remain in effect until the association has
|
|
adopted a new
budget for the current fiscal year. The proposed
|
|
annual budget of estimated
revenues and common
expenses shall be
|
|
detailed and shall show the amounts
budgeted by accounts and
|
|
expense classifications, including, if
applicable, but not
|
|
limited to, those expenses listed in s.
718.504(21). A
|
|
multicondominium association shall adopt
a separate budget of
|
|
common expenses for each condominium the
association operates
|
|
and shall adopt a separate budget of
common expenses for the
|
|
association. In addition, if the
association maintains limited
|
|
common elements with the cost to be
shared only by those
|
|
entitled to use the limited common
elements as provided for in
|
|
s. 718.113(1), the budget or a schedule
attached thereto shall
|
|
show amounts budgeted therefor. If,
after turnover of control of
|
|
the association to the unit owners, any
of the expenses listed
|
|
in s. 718.504(21) are not applicable,
they need not be listed.
|
|
2. In
addition to annual operating expenses, the budget
|
|
shall include reserve accounts for
capital expenditures and
|
|
deferred maintenance. These accounts
shall include, but are not
|
|
limited to, structural
repairs, roof replacement, building
|
|
painting, and pavement resurfacing,
regardless of the amount of
|
|
deferred maintenance expense or
replacement cost, and for any
|
|
other item for which the deferred
maintenance expense or
|
|
replacement cost exceeds $10,000. The
amount to be reserved
|
|
shall be computed by means of a formula
which is based upon
|
|
estimated remaining useful life and
estimated replacement cost
|
|
or deferred maintenance expense of each
reserve item. The
|
|
association may adjust replacement
reserve assessments annually
|
|
to take into account any changes in
estimates or extension of
|
|
the useful life of a reserve item caused
by deferred
|
|
maintenance. This subsection does not
apply to an adopted budget
|
|
in which the members of an association
have determined, by a
|
|
majority vote at a duly called meeting
of the association, to
|
|
provide no reserves or less reserves
than required by this
|
|
subsection. However, prior to turnover
of control of an
|
|
association by a developer to unit
owners other than a developer
|
|
pursuant to s. 718.301, the developer
may vote to waive the
|
|
reserves or reduce the funding of
reserves for the first 2
|
|
fiscal years of the association's
operation, beginning with the
|
|
fiscal year in which the initial
declaration is recorded, after
|
|
which time reserves may be waived or
reduced only upon the vote
|
|
of a majority of all nondeveloper voting
interests voting in
|
|
person or by limited proxy at a duly
called meeting of the
|
|
association. If a meeting of the unit
owners has been called to
|
|
determine whether to waive or reduce the
funding of reserves,
|
|
and no such result is achieved or a
quorum is not attained, the
|
|
reserves as included in the budget shall
go into effect. After
|
|
the turnover, the developer may vote its
voting interest to
|
|
waive or reduce the funding of reserves.
|
|
3. Reserve
funds and any interest accruing thereon shall
|
|
remain in the reserve account or
accounts, and shall be used
|
|
only for authorized reserve expenditures
unless their use for
|
|
other purposes is approved in advance by
a majority vote at a
|
|
duly called meeting of the association.
Prior to turnover of
|
|
control of an association by a developer
to unit owners other
|
|
than the developer pursuant to s.
718.301, the developer-
|
|
controlled association shall not vote to
use reserves for
|
|
purposes other than that for which they
were intended without
|
|
the approval of a majority of all
nondeveloper voting interests,
|
|
voting in person or by limited proxy at
a duly called meeting of
|
|
the association.
|
|
4. The
only voting interests which are eligible to vote on
|
|
questions that involve waiving or
reducing the funding of
|
|
reserves, or using existing reserve
funds for purposes other
|
|
than purposes for which the reserves
were intended, are the
|
|
voting interests of the units subject to
assessment to fund the
|
|
reserves in question. The
face of all ballots that involve
|
|
questions relating to
waiving or reducing the funding of
|
|
reserves, or using
existing reserve funds for purposes other
|
|
than purposes for
which the reserves were intended, shall
|
|
contain the following
statement in capitalized, bold letters in
|
|
a font size larger
than any other used on the face of the
|
|
ballot: WAIVING OF
RESERVES, IN WHOLE OR IN PART, OR ALLOWING
|
|
ALTERNATE USES OF
EXISTING RESERVES, MAY RESULT IN UNIT OWNER
|
|
LIABILITY FOR PAYMENT
OF UNANTICIPATED SPECIAL ASSESSMENTS
|
|
REGARDING THOSE
RESERVE ITEMS.
|
|
5. A
vote to provide for no reserves or a percentage of
|
|
reserves shall be
made at the annual meeting of the unit owners
|
|
called under
paragraph (d). The division shall adopt the form
|
|
for the ballot for no
reserves and a percentage of reserves.
|
|
6. Notwithstanding
subparagraph 3., the association after
|
|
turnover of control
of the association may, in case of a
|
|
catastrophic event,
use reserve funds for nonscheduled purposes
|
|
to mitigate further
damage to units or common elements or to
|
|
make the condominium
accessible for repairs.
|
|
7. Except
in cases of emergency, or unless otherwise
|
|
provided for in the
bylaws or approved by a vote of a majority
|
|
of the unit owners in
advance, the board of administration may
|
|
not apply for or
accept a loan or line of credit in an amount
|
|
that exceeds 10
percent of the association's annual budget for
|
|
the current year.
|
|
(g) Assessments.--After
the declaration has been recorded,
|
|
and until such time
as the association has been created, all
|
|
common expenses shall
be paid by the developer. Assessments
|
|
shall be levied in an
amount determined by the adopted budget or
|
|
an authorized
special assessment. The manner of collecting from
|
|
the unit owners their shares of the
common expenses shall be
|
|
stated in the bylaws. Assessments shall
be made against units on
|
|
a
quarter-annual, or more frequent, basis not
less frequently
|
|
than quarterly
in an amount which is not less than that required
|
|
to provide funds in advance for payment
of all of the
|
|
anticipated current operating expenses
and for all of the unpaid
|
|
operating expenses previously incurred.
Nothing in this
|
|
paragraph shall preclude the right of an
association to
|
|
accelerate assessments of an owner
delinquent in payment of
|
|
common expenses against
whom a lien has been filed. Accelerated
|
|
assessments shall be due and payable after
on the date the claim
|
|
of lien is filed. Such accelerated
assessments shall include the
|
|
amounts due for the remainder of the
budget year in which the
|
|
claim of lien was filed.
|
|
(h) Amendment
of bylaws.--
|
|
1. The
method by which the bylaws may be amended
|
|
consistent with the provisions of this
chapter shall be stated.
|
|
If the bylaws fail to provide a method
of amendment, the bylaws
|
|
may be amended if the amendment is
approved by the owners of not
|
|
less than two-thirds of the voting
interests.
|
|
2. No
bylaw shall be revised or amended by reference to
|
|
its title or number only. Proposals to
amend existing bylaws
|
|
shall contain the full text of the
bylaws to be amended; new
|
|
words shall be inserted in the text
underlined, and words to be
|
|
deleted shall be lined through with
hyphens. However, if the
|
|
proposed change is so extensive that
this procedure would
|
|
hinder, rather than assist, the
understanding of the proposed
|
|
amendment, it is not necessary to use
underlining and hyphens as
|
|
indicators of words added or deleted,
but, instead, a notation
|
|
must be inserted immediately preceding
the proposed amendment in
|
|
substantially the following language:
"Substantial rewording of
|
|
bylaw. See bylaw _____ for present
text."
|
|
3. Nonmaterial
errors or omissions in the bylaw process
|
|
will not invalidate an otherwise
properly promulgated amendment.
|
|
(i) Transfer
fees.--No charge shall be made by the
|
|
association or any body thereof in
connection with the sale,
|
|
mortgage, lease, sublease, or other
transfer of a unit unless
|
|
the association is required to approve
such transfer and a fee
|
|
for such approval is provided for in the
declaration, articles,
|
|
or bylaws. Any such fee may be preset,
but in no event may such
|
|
fee exceed $100 per applicant other than
husband/wife or
|
|
parent/dependent child, which are
considered one applicant.
|
|
However, if the lease or sublease is a
renewal of a lease or
|
|
sublease with the same lessee or
sublessee, no charge shall be
|
|
made. The foregoing notwithstanding, an
association may, if the
|
|
authority to do so appears in the
declaration or bylaws, require
|
|
that a prospective lessee place a
security deposit, in an amount
|
|
not to exceed the equivalent of 1
month's rent, into an escrow
|
|
account maintained by the association.
The security deposit
|
|
shall protect against damages to the
common elements or
|
|
association property. Payment of
interest, claims against the
|
|
deposit, refunds, and disputes under
this paragraph shall be
|
|
handled in the same fashion as provided
in part II of chapter
|
|
83.
|
|
(k)(l) Certificate
of compliance.--There shall be a
|
|
provision that a certificate of
compliance from a licensed
|
|
electrical contractor or electrician may
be accepted by the
|
|
association's board as evidence of
compliance of the condominium
|
|
units with the applicable fire and life
safety code.
|
|
Notwithstanding the provisions of
chapter 633 or of any other
|
|
code, statute, ordinance, administrative
rule, or regulation, or
|
|
any interpretation of the foregoing, an
association,
|
|
condominium, or unit owner is not
obligated to retrofit the
|
|
common elements or units of a
residential condominium with a
|
|
fire sprinkler system or other
engineered lifesafety system in a
|
|
building that has been certified for
occupancy by the applicable
|
|
governmental entity, if the unit owners
have voted to forego
|
|
such retrofitting and engineered
lifesafety system by the
|
|
affirmative vote of two-thirds of all
voting interests in the
|
|
affected condominium. However, a
condominium association may not
|
|
vote to forego the retrofitting with a
fire sprinkler system of
|
|
common areas in a high-rise building.
For purposes of this
|
|
subsection, the term "high-rise
building" means a building that
|
|
is greater than 75 feet in height where
the building height is
|
|
measured from the lowest level of fire
department access to the
|
|
floor of the highest occupiable story.
For purposes of this
|
|
subsection, the term "common
areas" means any enclosed hallway,
|
|
corridor, lobby, stairwell, or entryway.
In no event shall the
|
|
local authority having jurisdiction
require completion of
|
|
retrofitting of common areas with a
sprinkler system before the
|
|
end of 2014.
|
|
1. A
vote to forego retrofitting may be obtained by
|
|
limited proxy or by a ballot personally
cast at a duly called
|
|
membership meeting, or by execution of a
written consent by the
|
|
member, and shall be effective upon the
recording of a
|
|
certificate attesting to such vote in
the public records of the
|
|
county where the condominium is located.
The association shall
|
|
mail, hand deliver, or electronically
transmit to each unit
|
|
owner written notice at least 14 days
prior to such membership
|
|
meeting in which the vote to forego
retrofitting of the required
|
|
fire sprinkler system is to take place.
Within 30 days after the
|
|
association's opt-out vote, notice of
the results of the opt-out
|
|
vote shall be mailed, hand delivered, or
electronically
|
|
transmitted to all unit owners. Evidence
of compliance with this
|
|
30-day notice shall be made by an
affidavit executed by the
|
|
person providing the notice and filed
among the official records
|
|
of the association. After such notice is
provided to each owner,
|
|
a copy of such notice shall be provided
by the current owner to
|
|
a new owner prior to closing and shall
be provided by a unit
|
|
owner to a renter prior to signing a
lease.
|
|
2. As
part of the information collected annually from
|
|
condominiums, the division shall require
condominium
|
|
associations to report the membership
vote and recording of a
|
|
certificate under this subsection and,
if retrofitting has been
|
|
undertaken, the per-unit cost of such
work. The division shall
|
|
annually report to the Division of State
Fire Marshal of the
|
|
Department of Financial Services the
number of condominiums that
|
|
have elected to forego retrofitting.
|
|
(l)(m) Common
elements; limited power to convey.--
|
|
1. With
respect to condominiums created on or after
|
|
October 1, 1994, the bylaws shall
include a provision granting
|
|
the association a limited power to
convey a portion of the
|
|
common elements to a condemning
authority for the purpose of
|
|
providing utility easements,
right-of-way expansion, or other
|
|
public purposes, whether negotiated or
as a result of eminent
|
|
domain proceedings.
|
|
2. In
any case where the bylaws are silent as to the
|
|
association's power to convey common
elements as described in
|
|
|
|
Section
7. Section 718.113, Florida Statutes, is amended
|
|
to read:
|
|
718.113 Maintenance;
limitation upon improvement; display
|
|
of flag; display
of religious decorations; hurricane shutters.--
|
|
(1) Maintenance
of the common elements is the
|
|
responsibility of the association. The
declaration may provide
|
|
that certain limited common elements
shall be maintained by
|
|
those entitled to use the limited common
elements or that the
|
|
association shall provide the
maintenance, either as a common
|
|
expense or
with the cost shared only by those entitled to use
|
|
the limited common elements. If the
maintenance is to be by the
|
|
association at the expense of only those
entitled to use the
|
|
limited common elements, the declaration
shall describe in
|
|
detail the method of apportioning such
costs among those
|
|
entitled to use the limited common
elements, and the association
|
|
may use the provisions of s. 718.116 to
enforce payment of the
|
|
shares of such costs by the unit owners
entitled to use the
|
|
limited common elements.
|
|
(2)(a) Except
as otherwise provided in this section, there
|
|
shall be no material alteration or
substantial additions to the
|
|
common elements or to real property
which is association
|
|
property, except in a manner provided in
the declaration as
|
|
originally recorded or as amended under
the procedures provided
|
|
therein. If the declaration as
originally recorded or as amended
|
|
under the procedures provided therein
does not specify the
|
|
procedure for approval of material
alterations or substantial
|
|
additions, 75 percent of the total
voting interests of the
|
|
association must approve the alterations
or additions.
|
|
(b) There
shall not be any material alteration of, or
|
|
substantial addition to, the common
elements of any condominium
|
|
operated by a multicondominium
association unless approved in
|
|
the manner provided in the declaration
of the affected
|
|
condominium or condominiums as
originally recorded or as amended
|
|
under the procedures provided therein.
If a declaration as
|
|
originally recorded or as amended under
the procedures provided
|
|
therein does not specify a procedure for
approving such an
|
|
alteration or addition, the approval of
75 percent of the total
|
|
voting interests of each affected
condominium is required. This
|
|
subsection does not prohibit a provision
in any declaration,
|
|
articles of incorporation, or bylaws as
originally recorded or
|
|
as amended under the procedures provided
therein requiring the
|
|
approval of unit owners in any
condominium operated by the same
|
|
association or requiring board approval
before a material
|
|
alteration or substantial addition to
the common elements is
|
|
permitted. This paragraph is intended to
clarify existing law
|
|
and applies to associations existing on
the effective date of
|
|
this act.
|
|
(c) There
shall not be any material alteration or
|
|
substantial addition made to association
real property operated
|
|
by a multicondominium association,
except as provided in the
|
|
declaration, articles of incorporation,
or bylaws as originally
|
|
recorded or as amended under the
procedures provided therein.
|
|
If
the declaration, articles of
incorporation, or bylaws as
|
|
originally recorded or as amended under
the procedures provided
|
|
therein do not specify the procedure for
approving an alteration
|
|
or addition to association real
property, the approval of 75
|
|
percent of the total voting interests of
the association is
|
|
required. This paragraph is intended to
clarify existing law and
|
|
applies to associations existing on the
effective date of this
|
|
act.
|
|
(3) A
unit owner shall not do anything within his or her
|
|
unit or on the common elements which
would adversely affect the
|
|
safety or soundness of the common
elements or any portion of the
|
|
association property or condominium
property which is to be
|
|
maintained by the association.
|
|
(4) Any
unit owner may display one portable, removable
|
|
United States flag in a respectful way
and, on Armed Forces Day,
|
|
Memorial Day, Flag Day, Independence
Day, and Veterans Day, may
|
|
display in a respectful way portable,
removable official flags,
|
|
not larger than 41/2 feet by 6 feet,
that represent the United
|
|
States Army, Navy, Air Force, Marine
Corps, or Coast Guard,
|
|
regardless of any declaration rules or
requirements dealing with
|
|
flags or decorations.
|
|
(5) Each
board of administration shall, at each annual
|
|
meeting,
adopt or restate hurricane shutter
specifications for
|
|
each building within each condominium
operated by the
|
|
association which shall include color,
style, and other factors
|
|
deemed relevant by the board. All
specifications adopted or
|
|
restated by the board shall
comply with the applicable building
|
|
code. Notwithstanding any provision to
the contrary in the
|
|
condominium documents, if approval is
required by the documents,
|
|
a board shall not refuse to approve the
installation or
|
|
replacement of hurricane shutters
conforming to the
|
|
specifications adopted by the board. The
board may, subject to
|
|
the provisions of s. 718.3026, and the
approval of a majority of
|
|
voting interests of the condominium,
install hurricane shutters
|
|
and may maintain, repair, or replace
such approved hurricane
|
|
shutters or
hurricane protection that complies with the
|
|
applicable
building code, whether on or within common elements,
|
|
limited common elements, units, or
association property.
|
|
However, where laminated glass or window
film architecturally
|
|
designed to function as hurricane
protection which complies with
|
|
the applicable building code has been
installed, the board may
|
|
not install hurricane shutters. The
board may operate shutters
|
|
installed pursuant to this subsection
without permission of the
|
|
unit owners only where such operation is
necessary to preserve
|
|
and protect the condominium property and
association property.
|
|
The installation, replacement,
operation, repair, and
|
|
maintenance of such shutters in
accordance with the procedures
|
|
set forth herein shall not be deemed a
material alteration to
|
|
the common elements or association
property within the meaning
|
|
of this section.
|
|
(6) Every
5 years, the board of administration shall have
|
|
the condominium
buildings inspected by a professional engineer
|
|
or professional
architect registered in the state for the
|
|
purpose of
determining that the building is structurally and
|
|
electrically safe.
The engineer or architect shall provide a
|
|
report indicating the
manner and type of inspection forming the
|
|
basis for the report
and description of any matters identified
|
|
as requiring remedial
action. The report shall become an
|
|
official record of
the association to be provided to the members
|
|
upon request pursuant
to s. 718.111(12).
|
|
(7) The
board of administration may not adopt any rule or
|
|
regulation impairing
any rights guaranteed by the First
|
|
Amendment to the
Constitution of the United States or s. 3, Art.
|
|
I of the Florida
Constitution, including, but not limited to,
|
|
the free exercise of
religion, nor may any rules or regulations
|
|
conflict with the
provisions of this chapter or the condominium
|
|
instruments. A rule
or regulation may not prohibit any
|
|
reasonable
accommodation for religious practices, including the
|
|
attachment of
religiously mandated objects to the front-door
|
|
area of a condominium
unit.
|
|
|
|
Section
8. Paragraph (d) of subsection (1) of section
|
|
718.115, Florida Statutes, is amended to
read:
|
|
718.115 Common
expenses and common surplus.--
|
|
(1)
|
|
(d) If
so provided in the declaration, the cost of a
|
|
master antenna television system or duly
franchised cable
|
|
television service obtained pursuant to
a bulk contract for
|
|
basic service shall
be deemed a common expense. If the
|
|
declaration does not provide for the
cost of a master antenna
|
|
television system or duly franchised basic
cable television
|
|
service obtained under a bulk contract
as a common expense, the
|
|
board may enter into such a contract,
and the cost of the
|
|
service will be a common expense but
allocated on a per-unit
|
|
basis rather than a percentage basis if
the declaration provides
|
|
for other than an equal sharing of
common expenses, and any
|
|
contract entered into before July 1,
1998, in which the cost of
|
|
the service is not equally divided among
all unit owners, may be
|
|
changed by vote of a majority of the
voting interests present at
|
|
a regular or special meeting of the
association, to allocate the
|
|
cost equally among all units. The
contract shall be for a term
|
|
of not less than 2 years.
|
|
1. Any
contract made by the board after the effective date
|
|
hereof for a community antenna system or
duly franchised basic
|
|
cable television service may be canceled
by a majority of the
|
|
voting interests present at the next
regular or special meeting
|
|
of the association. Any member may make
a motion to cancel said
|
|
contract, but if no motion is made or if
such motion fails to
|
|
obtain the required majority at the next
regular or special
|
|
meeting, whichever is sooner, following
the making of the
|
|
contract, then such contract shall be
deemed ratified for the
|
|
term therein expressed.
|
|
2. Any
such contract shall provide, and shall be deemed to
|
|
provide if not expressly set forth, that
any hearing-impaired or
|
|
legally blind unit owner who does not
occupy the unit with a
|
|
non-hearing-impaired or sighted person,
or any unit owner
|
|
receiving supplemental security income
under Title XVI of the
|
|
Social Security Act or food stamps as
administered by the
|
|
Department of Children and Family
Services pursuant to s.
|
|
414.31, may discontinue the service
without incurring disconnect
|
|
fees, penalties, or subsequent service
charges, and, as to such
|
|
units, the owners shall not be required
to pay any common
|
|
expenses charge related to such service.
If less than all
|
|
members of an association share the
expenses of cable
|
|
television, the expense shall be shared
equally by all
|
|
participating unit owners. The
association may use the
|
|
provisions of s. 718.116 to enforce
payment of the shares of
|
|
such costs by the unit owners receiving
cable television.
|
|
|
|
Section
9. Section 718.1123, Florida Statutes, is created
|
|
to read:
|
|
718.1123 Protection
against abuse.--
|
|
(1) In
order to protect the safety, health, and welfare of
|
|
the people of this
state, especially the infirm and elderly, and
|
|
to ensure the
protection of condominium owners, any complaint of
|
|
abuse filed with the
Division of Florida Land Sales,
|
|
Condominiums,
Homeowners' Associations, and Mobile Homes shall
|
|
immediately be
investigated by the division. When the division
|
|
has reasonable cause
to believe that abuse has occurred against
|
|
any unit owner, the
division shall institute enforcement
|
|
proceedings pursuant
to its power and duties as set forth in s.
|
|
718.501.
|
|
(2) For
purposes of this section, the term "abuse" means
|
|
any willful act or
threat by a member of the board of directors
|
|
of a condominium
association or any member of a committee or
|
|
subcommittee
appointed by the board of directors, or any
|
|
employee, volunteer,
or agent purporting to act on behalf of the
|
|
board of directors,
or any officer, director, employee, or agent
|
|
of any management
company acting on behalf of a condominium
|
|
association who
denies or is likely to deny a condominium unit
|
|
owner or dweller any
of the rights and protections afforded to
|
|
them under applicable
state and federal laws, administrative
|
|
rules, and the
governing documents of their condominium
|
|
association.
|
|
Section
10. Section 718.1224, Florida Statutes, is created
|
|
to read:
|
|
718.1224 Prohibition
against SLAPP suits.--
|
|
(1) It
is the intent of the Legislature to protect the
|
|
right of condominium
unit owners to exercise their rights to
|
|
instruct their
representatives and petition for redress of
|
|
grievances before the
various governmental entities of this
|
|
state as protected by
the First Amendment to the United States
|
|
Constitution and s.
5, Art. I of the State Constitution. The
|
|
Legislature
recognizes that strategic lawsuits against public
|
|
participation, or
"SLAPP" suits as they are typically referred
|
|
to, have occurred
when association members are sued by
|
|
individuals, business
entities, or governmental entities arising
|
|
out of a condominium
unit owner's appearance and presentation
|
|
before a governmental
entity on matters related to the
|
|
condominium
association. However, it is the public policy of
|
|
this state that
governmental entities, business organizations,
|
|
and individuals not
to engage in SLAPP suits, because such
|
|
actions are
inconsistent with the right of condominium unit
|
|
owners to participate
in the state's institutions of government.
|
|
Therefore, the
Legislature finds and declares that prohibiting
|
|
such lawsuits by
governmental entities, business entities, and
|
|
individuals against
condominium unit owners who address matters
|
|
concerning their
condominium association will preserve this
|
|
fundamental state
policy, preserve the constitutional rights of
|
|
condominium unit
owners, and ensure the continuation of
|
|
representative
government in this state. It is the intent of the
|
|
Legislature that such
lawsuits be expeditiously disposed of by
|
|
the courts. As used
in this subsection, the term "governmental
|
|
entity" means
the state, including the executive, legislative,
|
|
and judicial branches
of government, the independent
|
|
establishments of the
state, counties, municipalities,
|
|
districts,
authorities, boards, or commissions, or any agencies
|
|
of these branches
which are subject to chapter 286.
|
|
(2) A
governmental entity, business organization, or
|
|
individual in this
state may not file or cause to be filed
|
|
through its employees
or agents any lawsuit, cause of action,
|
|
claim, cross-claim,
or counterclaim against a condominium unit
|
|
owner without merit
and solely because such condominium unit
|
|
owner has exercised
the right to instruct his or her
|
|
representatives or
the right to petition for redress of
|
|
grievances before the
various governmental entities of this
|
|
state, as protected
by the First Amendment to the United States
|
|
Constitution and s.
5, Art. I of the State Constitution.
|
|
(3) A
condominium unit owner sued by a governmental
|
|
entity, business
organization, or individual in violation of
|
|
this section has a
right to an expeditious resolution of a claim
|
|
that the suit is in
violation of this section. A condominium
|
|
unit owner may
petition the court for an order dismissing the
|
|
action or granting
final judgment in favor of that condominium
|
|
unit owner. The
petitioner may file a motion for summary
|
|
judgment, together
with supplemental affidavits, seeking a
|
|
determination that
the governmental entity's, business
|
|
organization's, or
individual's lawsuit has been brought in
|
|
violation of this
section. The governmental entity, business
|
|
organization, or
individual shall thereafter file its response
|
|
and any supplemental
affidavits. As soon as practicable, the
|
|
court shall set a
hearing on the petitioner's motion, which
|
|
shall be held at the
earliest possible time after the filing of
|
|
the governmental
entity's, business organization's or
|
|
individual's
response. The court may award the condominium unit
|
|
owner sued by the
governmental entity, business organization, or
|
|
individual actual
damages arising from the governmental
|
|
entity's,
individual's, or business organization's violation of
|
|
this section. A court
may treble the damages awarded to a
|
|
prevailing
condominium unit owner and shall state the basis for
|
|
the treble damages
award in its judgment. The court shall award
|
|
the prevailing party
reasonable attorney's fees and costs
|
|
incurred in
connection with a claim that an action was filed in
|
|
violation of this
section.
|
|
(4) Condominium
associations may not expend association
|
|
funds in prosecuting
a SLAPP suit against a condominium unit
|
|
owner.
|
|
|
|
Section
11. Subsection (4) of section 718.1255, Florida
|
|
Statutes, is amended to read:
|
|
718.1255 Alternative
dispute resolution; voluntary
|
|
mediation; mandatory nonbinding
arbitration; legislative
|
|
findings.--
|
|
(4) MANDATORY
NONBINDING ARBITRATION AND MEDIATION OF
|
|
DISPUTES.--The Division of Florida Land
Sales, Condominiums,
|
|
Homeowners'
Associations, and Mobile Homes of the Department of
|
|
Business and Professional Regulation
shall employ full-time
|
|
attorneys to act as arbitrators to
conduct the arbitration
|
|
hearings provided by this chapter. The
division may also certify
|
|
attorneys who are not employed by the
division to act as
|
|
arbitrators to conduct the arbitration
hearings provided by this
|
|
section. No person may be employed by
the department as a full-
|
|
time arbitrator unless he or she is a
member in good standing of
|
|
The Florida Bar. The department shall
promulgate rules of
|
|
procedure to govern such arbitration
hearings including
|
|
mediation incident thereto. The decision
of an arbitrator shall
|
|
be final; however, such a decision shall
not be deemed final
|
|
agency action. Nothing in this provision
shall be construed to
|
|
foreclose parties from proceeding in a
trial de novo unless the
|
|
parties have agreed that the arbitration
is binding. If such
|
|
judicial proceedings are initiated, the
final decision of the
|
|
arbitrator shall be admissible in
evidence in the trial de novo.
|
|
(a) Prior
to the institution of court litigation, a party
|
|
to a dispute shall petition the division
for nonbinding
|
|
arbitration. The petition must be
accompanied by a filing fee in
|
|
the amount of $50. Filing fees collected
under this section must
|
|
be used to defray the expenses of the
alternative dispute
|
|
resolution program.
|
|
(b) The
petition must recite, and have attached thereto,
|
|
supporting proof that the petitioner
gave the respondents:
|
|
1. Advance
written notice of the specific nature of the
|
|
dispute;
|
|
2. A
demand for relief, and a reasonable opportunity to
|
|
comply or to provide the relief; and
|
|
3. Notice
of the intention to file an arbitration petition
|
|
or other legal action in the absence of
a resolution of the
|
|
dispute.
|
|
|
|
Failure to include the allegations or
proof of compliance with
|
|
these prerequisites requires dismissal
of the petition without
|
|
prejudice.
|
|
(c) Upon
receipt, the petition shall be promptly reviewed
|
|
by the division to determine the
existence of a dispute and
|
|
compliance with the requirements of
paragraphs (a) and (b). If
|
|
emergency relief is required and is not
available through
|
|
arbitration, a motion to stay the
arbitration may be filed. The
|
|
motion must be accompanied by a verified
petition alleging facts
|
|
that, if proven, would support entry of
a temporary injunction,
|
|
and if an appropriate motion and
supporting papers are filed,
|
|
the division may abate the arbitration
pending a court hearing
|
|
and disposition of a motion for
temporary injunction.
|
|
(d) Upon
determination by the division that a dispute
|
|
exists and that the petition
substantially meets the
|
|
requirements of paragraphs (a) and (b)
and any other applicable
|
|
rules, a copy of the petition shall
forthwith be served by the
|
|
division upon all respondents.
|
|
(e) Either
before or after the filing of the respondents'
|
|
answer to the petition, any party may
request that the
|
|
arbitrator refer the case to mediation
under this section and
|
|
any rules adopted by the division. Upon
receipt of a request for
|
|
mediation, the division shall promptly refer
the case contact
|
|
the parties to
determine if there is agreement that mediation
|
|
would be appropriate.
If all parties agree, the dispute must be
|
|
referred
to mediation. Notwithstanding a lack of an
agreement by
|
|
all parties,
The arbitrator may refer a dispute to mediation at
|
|
any time.
|
|
(f) Upon
referral of a case to mediation, the parties must
|
|
select a mutually acceptable mediator.
To assist in the
|
|
selection, the arbitrator shall provide
the parties with a list
|
|
of both volunteer and paid mediators
that have been certified by
|
|
the division under s. 718.501. If the
parties are unable to
|
|
agree on a mediator within the time
allowed by the arbitrator,
|
|
the arbitrator shall appoint a mediator
from the list of
|
|
certified mediators. If a case is
referred to mediation, the
|
|
parties shall attend a mediation
conference, as scheduled by the
|
|
parties and the mediator. If any party
fails to attend a duly
|
|
noticed mediation conference, without
the permission or approval
|
|
of the arbitrator or mediator, the
arbitrator must impose
|
|
sanctions against the party, including
the striking of any
|
|
pleadings filed, the entry of an order
of dismissal or default
|
|
if appropriate, and the award of costs
and attorneys' fees
|
|
incurred by the other parties. Unless
otherwise agreed to by the
|
|
parties or as provided by order of the
arbitrator, a party is
|
|
deemed to have appeared at a mediation
conference by the
|
|
physical presence of the party or its
representative having full
|
|
authority to settle without further
consultation, provided that
|
|
an association may comply by having one
or more representatives
|
|
present with full authority to negotiate
a settlement and
|
|
recommend that the board of
administration ratify and approve
|
|
such a settlement within 5 days from the
date of the mediation
|
|
conference. The parties shall share
equally the expense of
|
|
mediation, unless they agree otherwise.
|
|
(g) The
purpose of mediation as provided for by this
|
|
section is to present the parties with
an opportunity to resolve
|
|
the underlying dispute in good faith,
and with a minimum
|
|
expenditure of time and resources.
|
|
(h) Mediation
proceedings must generally be conducted in
|
|
accordance with the Florida Rules of
Civil Procedure, and these
|
|
proceedings are privileged and
confidential to the same extent
|
|
as court-ordered mediation. Persons who
are not parties to the
|
|
dispute are not allowed to attend the
mediation conference
|
|
without the consent of all parties, with
the exception of
|
|
counsel for the parties and corporate
representatives designated
|
|
to appear for a party. If the mediator
declares an impasse after
|
|
a mediation conference has been held,
the arbitration proceeding
|
|
terminates, unless all parties agree in
writing to continue the
|
|
arbitration proceeding, in which case
the arbitrator's decision
|
|
shall be either binding or nonbinding,
as agreed upon by the
|
|
parties; in the arbitration proceeding,
the arbitrator shall not
|
|
consider any evidence relating to the
unsuccessful mediation
|
|
except in a proceeding to impose
sanctions for failure to appear
|
|
at the mediation conference. If the
parties do not agree to
|
|
continue arbitration, the arbitrator
shall enter an order of
|
|
dismissal, and either party may
institute a suit in a court of
|
|
competent jurisdiction. The parties may
seek to recover any
|
|
costs and attorneys' fees incurred in
connection with
|
|
arbitration and mediation
proceedings under this section as part
|
|
of the costs and fees that may be
recovered by the prevailing
|
|
party in any subsequent litigation.
|
|
(i) Arbitration
shall be conducted according to rules
|
|
promulgated by the division. The filing
of a petition for
|
|
arbitration shall toll the applicable
statute of limitations.
|
|
(j) At
the request of any party to the arbitration, such
|
|
arbitrator shall issue subpoenas for the
attendance of witnesses
|
|
and the production of books, records,
documents, and other
|
|
evidence and any party on whose behalf a
subpoena is issued may
|
|
apply to the court for orders compelling
such attendance and
|
|
production. Subpoenas shall be served
and shall be enforceable
|
|
in the manner provided by the Florida
Rules of Civil Procedure.
|
|
Discovery may, in the discretion of the
arbitrator, be permitted
|
|
in the manner provided by the Florida
Rules of Civil Procedure.
|
|
Rules adopted by the division may
authorize any reasonable
|
|
sanctions except contempt for a
violation of the arbitration
|
|
procedural rules of the division or for
the failure of a party
|
|
to comply with a reasonable nonfinal
order issued by an
|
|
arbitrator which is not under judicial
review.
|
|
(k) The
arbitration decision shall be presented to the
|
|
parties in writing. An arbitration
decision is final in those
|
|
disputes in which the parties have
agreed to be bound. An
|
|
arbitration decision is also final if a
complaint for a trial de
|
|
novo is not filed in a court of
competent jurisdiction in which
|
|
the condominium is located within 30
days. The right to file for
|
|
a trial de novo entitles the parties to
file a complaint in the
|
|
appropriate trial court for a judicial
resolution of the
|
|
dispute. The prevailing party in an
arbitration proceeding shall
|
|
be awarded the costs of the arbitration
and reasonable
|
|
attorney's fees in an amount determined
by the arbitrator. Such
|
|
an award shall include the costs and
reasonable attorney's fees
|
|
incurred in the arbitration proceeding
as well as the costs and
|
|
reasonable attorney's fees incurred in
preparing for and
|
|
attending any scheduled mediation.
|
|
(l) The
party who files a complaint for a trial de novo
|
|
shall be assessed the other party's
arbitration costs, court
|
|
costs, and other reasonable costs,
including attorney's fees,
|
|
investigation expenses, and expenses for
expert or other
|
|
testimony or evidence incurred after the
arbitration hearing if
|
|
the judgment upon the trial de novo is
not more favorable than
|
|
the arbitration decision. If the
judgment is more favorable, the
|
|
party who filed a complaint for trial de
novo shall be awarded
|
|
reasonable court costs and attorney's
fees.
|
|
(m) Any
party to an arbitration proceeding may enforce an
|
|
arbitration award by filing a petition
in a court of competent
|
|
jurisdiction in which the condominium is
located. A petition may
|
|
not be granted unless the time for
appeal by the filing of a
|
|
complaint for trial de novo has expired.
If a complaint for a
|
|
trial de novo has been filed, a petition
may not be granted with
|
|
respect to an arbitration award that has
been stayed. If the
|
|
petition for enforcement is granted, the
petitioner shall
|
|
recover reasonable attorney's fees and
costs incurred in
|
|
enforcing the arbitration award. A
mediation settlement may also
|
|
be enforced through the county or
circuit court, as applicable,
|
|
and any costs and fees incurred in the
enforcement of a
|
|
settlement agreement reached at
mediation must be awarded to the
|
|
prevailing party in any enforcement
action.
|
|
|
|
Section
12. Subsection (1) of section 718.302, Florida
|
|
Statutes, is amended to read:
|
|
718.302 Agreements
entered into by the association.--
|
|
(1) Any
grant or reservation made by a declaration, lease,
|
|
or other document, and any contract made
by an association prior
|
|
to assumption of control of the
association by unit owners other
|
|
than the developer, that provides for services,
products,
|
|
operation, maintenance, or management of
a condominium
|
|
association or property serving the unit
owners of a condominium
|
|
shall be fair and reasonable, and such
grant, reservation, or
|
|
contract may be canceled by unit owners
other than the
|
|
developer:
|
|
(a) If
the association operates only one condominium and
|
|
the unit owners other than the developer
have assumed control of
|
|
the association, or if unit owners other
than the developer own
|
|
not less than 75 percent of the voting
interests in the
|
|
condominium, the cancellation shall be
by concurrence of the
|
|
owners of not less than 75 percent of
the voting interests other
|
|
than the voting interests owned by the
developer. If a grant,
|
|
reservation, or contract is so canceled
and the unit owners
|
|
other than the developer have not
assumed control of the
|
|
association, the association shall make
a new contract or
|
|
otherwise provide for maintenance,
management, or operation in
|
|
lieu of the canceled obligation, at the
direction of the owners
|
|
of not less than a majority of the
voting interests in the
|
|
condominium other than the voting
interests owned by the
|
|
developer.
|
|
(b) If
the association operates more than one condominium
|
|
and the unit owners other than the
developer have not assumed
|
|
control of the association, and if unit
owners other than the
|
|
developer own at least 75 percent of the
voting interests in a
|
|
condominium operated by the association,
any grant, reservation,
|
|
or contract for maintenance, management,
or operation of
|
|
buildings containing the units in that
condominium or of
|
|
improvements used only by unit owners of
that condominium may be
|
|
canceled by concurrence of the owners of
at least 75 percent of
|
|
the voting interests in the condominium
other than the voting
|
|
interests owned by the developer. No
grant, reservation, or
|
|
contract for maintenance, management, or
operation of
|
|
recreational areas or any other property
serving more than one
|
|
condominium, and operated by more than
one association, may be
|
|
canceled except pursuant to paragraph
(d).
|
|
(c) If
the association operates more than one condominium
|
|
and the unit owners other than the
developer have assumed
|
|
control of the association, the
cancellation shall be by
|
|
concurrence of the owners of not less
than 75 percent of the
|
|
total number of voting interests in all
condominiums operated by
|
|
the association other than the voting
interests owned by the
|
|
developer.
|
|
(d) If
the owners of units in a condominium have the right
|
|
to use property in common with owners of
units in other
|
|
condominiums and those condominiums are
operated by more than
|
|
one association, no grant, reservation,
or contract for
|
|
maintenance, management, or operation of
the property serving
|
|
more than one condominium may be
canceled until unit owners
|
|
other than the developer have assumed
control of all of the
|
|
associations operating the condominiums
that are to be served by
|
|
the recreational area or other property,
after which
|
|
cancellation may be effected by
concurrence of the owners of not
|
|
less than 75 percent of the total number
of voting interests in
|
|
those condominiums other than voting
interests owned by the
|
|
developer.
|
|
|
|
Section
13. Paragraphs (f) and (g) are added to subsection
|
|
(1) of section 718.3025, Florida
Statutes, to read:
|
|
718.3025 Agreements
for operation, maintenance, or
|
|
management of condominiums; specific
requirements.--
|
|
(1) No
written contract between a party contracting to
|
|
provide maintenance or management
services and an association
|
|
which contract provides for operation,
maintenance, or
|
|
management of a condominium association
or property serving the
|
|
unit owners of a condominium shall be
valid or enforceable
|
|
unless the contract:
|
|
(f) Requires
that all obligations under the contract be
|
|
completed within a
1-year period.
|
|
(g) Contains
a provision expressly prohibiting automatic
|
|
renewal of the
contract.
|
|
|
|
Section
14. Paragraph (a) of subsection (2) of section
|
|
718.3026, Florida Statutes, is amended
to read:
|
|
718.3026 Contracts
for products and services; in writing;
|
|
bids; exceptions.--Associations with
less than 100 units may opt
|
|
out of the provisions of this section if
two-thirds of the unit
|
|
owners vote to do so, which opt-out may
be accomplished by a
|
|
proxy specifically setting forth the
exception from this
|
|
section.
|
|
(2)(a)1. Notwithstanding
the foregoing, contracts with
|
|
employees of the association, and
contracts for attorney,
|
|
accountant, architect, community
association manager, timeshare
|
|
management firm, engineering, and
landscape architect services
|
|
are not subject to the provisions of
this section.
|
|
2. A
contract executed before January 1, 1992, and any
|
|
renewal thereof, is not subject to the
competitive bid
|
|
requirements of this section. If a
contract was awarded under
|
|
the competitive bid procedures of this
section, any renewal of
|
|
that contract is not subject to such
competitive bid
|
|
requirements if the contract contains a
provision that allows
|
|
the board to cancel the contract on 30
days' notice. Materials,
|
|
equipment, or services provided to a
condominium under a local
|
|
government franchise agreement by a
franchise holder are not
|
|
subject to the competitive bid
requirements of this section. A
|
|
contract with a manager, if made by a
competitive bid, may be
|
|
made for up to 3 years. A condominium
whose declaration or
|
|
bylaws provides for competitive bidding
for services may operate
|
|
under the provisions of that declaration
or bylaws in lieu of
|
|
this section if those provisions are not
less stringent than the
|
|
requirements of this section.
|
|
3. A
contract by and between a service provider and an
|
|
association shall not
be for a term in excess of 3 years and
|
|
shall not contain an
automatic renewal clause.
|
|
4. A
contract for construction or repair of the property
|
|
that exceeds 10
percent of the total annual budget of the
|
|
association,
including reserves, should have the approval of an
|
|
attorney hired by the
association.
|
|
|
|
Section
15. Subsection (3) of section 718.303, Florida
|
|
Statutes, is amended and subsection (4)
is added to that
|
|
section, to read:
|
|
718.303 Obligations
of owners; waiver; levy of fine
|
|
against unit by
association.--
|
|
(3) If
the declaration or bylaws so provide, the
|
|
association may levy
reasonable fines against a unit for the
|
|
failure of the owner of the
unit, or its occupant, licensee, or
|
|
invitee, to comply with any
provision of the declaration, the
|
|
association bylaws, or
reasonable rules of the association. No
|
|
fine will become a lien
against a unit. No fine may exceed $100
|
|
per violation. However, a
fine may be levied on the basis of
|
|
each day of a continuing
violation, with a single notice and
|
|
opportunity for hearing,
provided that no such fine shall in the
|
|
aggregate exceed $1,000. No
fine may be levied except after
|
|
giving reasonable notice and
opportunity for a hearing to the
|
|
unit owner and, if
applicable, its licensee or invitee. The
|
|
hearing must be held before
a committee of other unit owners who
|
|
are not
members of the board of administration of the
|
|
association.
If the committee does not agree with the fine, the
|
|
fine may not be levied. The
provisions of this subsection do not
|
|
apply to unoccupied units.
|
|
(4) Anyone
subject to an action under this section shall
|
|
be
notified of the violation by certified mail, return receipt
|
|
requested,
and, except in the case of eminent danger to person
|
|
or
property, have 30 days in which to respond in writing. If no
|
|
response
is provided and the violation continues or is repeated,
|
|
the
association may proceed under subsections (1) and (2)
|
|
without
further notice except as provided in subsection (3).
|
|
|
|
Section
16. Section 718.501, Florida Statutes, is amended
|
|
to read:
|
|
718.501 Powers
and duties of Division of Florida Land
|
|
Sales, Condominiums, Homeowners'
Associations, and Mobile
|
|
Homes.--
|
|
(1) The
Division of Florida Land Sales, Condominiums,
|
|
Homeowners'
Associations, and Mobile Homes of the Department of
|
|
Business and Professional
Regulation, referred to as the
|
|
"division" in this
part, in addition to other powers and duties
|
|
prescribed by chapter 498,
has the power to enforce and ensure
|
|
compliance with the
provisions of this chapter and rules
|
|
promulgated pursuant hereto
relating to the development,
|
|
construction, sale, lease,
ownership, operation, and management
|
|
of residential condominium
units. In performing its duties, the
|
|
division has the following
powers and duties:
|
|
(a) The
division may make necessary public or private
|
|
investigations within or
outside this state to determine whether
|
|
any person has violated this
chapter or any rule or order
|
|
hereunder, to aid in the
enforcement of this chapter, or to aid
|
|
in the adoption of rules or
forms hereunder.
|
|
(b) The
division may require or permit any person to file
|
|
a statement in writing,
under oath or otherwise, as the division
|
|
determines, as to the facts
and circumstances concerning a
|
|
matter to be investigated.
|
|
(c) For
the purpose of any investigation under this
|
|
chapter, the division
director or any officer or employee
|
|
designated by the division
director may administer oaths or
|
|
affirmations, subpoena
witnesses and compel their attendance,
|
|
take evidence, and require
the production of any matter which is
|
|
relevant to the
investigation, including the existence,
|
|
description, nature,
custody, condition, and location of any
|
|
books, documents, or other
tangible things and the identity and
|
|
location of persons having
knowledge of relevant facts or any
|
|
other matter reasonably
calculated to lead to the discovery of
|
|
material evidence. Upon the
failure by a person to obey a
|
|
subpoena or to answer
questions propounded by the investigating
|
|
officer and upon reasonable
notice to all persons affected
|
|
thereby, the division may
apply to the circuit court for an
|
|
order compelling compliance.
|
|
(d) Notwithstanding
any remedies available to unit owners
|
|
and associations, if the
division has reasonable cause to
|
|
believe that a violation of
any provision of this chapter or
|
|
rule promulgated pursuant
hereto has occurred, the division may
|
|
institute enforcement
proceedings in its own name against any
|
|
developer, association,
officer, or member of the board of
|
|
administration, or its
assignees or agents, as follows:
|
|
1. The
division may permit a person whose conduct or
|
|
actions may be under
investigation to waive formal proceedings
|
|
and enter into a consent
proceeding whereby orders, rules, or
|
|
letters of censure or
warning, whether formal or informal, may
|
|
be entered against the
person.
|
|
2. The
division may issue an order requiring the
|
|
developer, association,
officer, or member of the board of
|
|
administration, or its
assignees or agents, to cease and desist
|
|
from the unlawful practice
and take such affirmative action as
|
|
in the judgment of the
division will carry out the purposes of
|
|
this chapter. Such
affirmative action may include, but is not
|
|
limited to, an order
requiring a developer to pay moneys
|
|
determined to be owed to a
condominium association.
|
|
3. The
division may bring an action in circuit court on
|
|
behalf of a class of unit
owners, lessees, or purchasers for
|
|
declaratory relief,
injunctive relief, or restitution.
|
|
4. The
division may impose a civil penalty against a
|
|
developer or association, or
its assignee or agent, for any
|
|
violation of this chapter or
a rule promulgated pursuant hereto.
|
|
The division may impose a
civil penalty individually against any
|
|
officer or board member who
willfully and knowingly violates a
|
|
provision of this chapter, a
rule adopted pursuant hereto, or a
|
|
final order of the division.
The term "willfully and knowingly"
|
|
means that the division
informed the officer or board member
|
|
that his or her action or
intended action violates this chapter,
|
|
a rule adopted under this
chapter, or a final order of the
|
|
division and that the
officer or board member refused to comply
|
|
with the requirements of
this chapter, a rule adopted under this
|
|
chapter, or a final order of
the division. The division, prior
|
|
to initiating formal agency
action under chapter 120, shall
|
|
afford the officer or board
member an opportunity to voluntarily
|
|
comply with this chapter, a
rule adopted under this chapter, or
|
|
a final order of the
division. An officer or board member who
|
|
complies within 10 days is
not subject to a civil penalty. A
|
|
penalty may be imposed on
the basis of each day of continuing
|
|
violation, but in no event
shall the penalty for any offense
|
|
exceed $5,000. By January 1,
1998, the division shall adopt, by
|
|
rule, penalty guidelines
applicable to possible violations or to
|
|
categories of violations of
this chapter or rules adopted by the
|
|
division. The guidelines
must specify a meaningful range of
|
|
civil penalties for each
such violation of the statute and rules
|
|
and must be based upon the
harm caused by the violation, the
|
|
repetition of the violation,
and upon such other factors deemed
|
|
relevant by the division.
For example, the division may consider
|
|
whether the violations were
committed by a developer or owner-
|
|
controlled association, the
size of the association, and other
|
|
factors. The guidelines must
designate the possible mitigating
|
|
or aggravating circumstances
that justify a departure from the
|
|
range of penalties provided
by the rules. It is the legislative
|
|
intent that minor violations
be distinguished from those which
|
|
endanger the health, safety,
or welfare of the condominium
|
|
residents or other persons
and that such guidelines provide
|
|
reasonable and meaningful
notice to the public of likely
|
|
penalties that may be
imposed for proscribed conduct. This
|
|
subsection does not limit
the ability of the division to
|
|
informally dispose of
administrative actions or complaints by
|
|
stipulation, agreed
settlement, or consent order. All amounts
|
|
collected shall be deposited
with the Chief Financial Officer to
|
|
the credit of the Division
of Florida Land Sales, Condominiums,
|
|
Homeowners'
Associations, and Mobile Homes Trust Fund. If a
|
|
developer fails to pay the
civil penalty, the division shall
|
|
thereupon issue an order
directing that such developer cease and
|
|
desist from further
operation until such time as the civil
|
|
penalty is paid or may
pursue enforcement of the penalty in a
|
|
court of competent
jurisdiction. If an association fails to pay
|
|
the civil penalty, the
division shall thereupon pursue
|
|
enforcement in a court of
competent jurisdiction, and the order
|
|
imposing the civil penalty
or the cease and desist order will
|
|
not become effective until
20 days after the date of such order.
|
|
Any action commenced by the
division shall be brought in the
|
|
county in which the division
has its executive offices or in the
|
|
county where the violation
occurred.
|
|
(e) The
division shall is
authorized to prepare and
|
|
disseminate a prospectus and
other information to assist
|
|
prospective owners,
purchasers, lessees, and developers of
|
|
residential condominiums in
assessing the rights, privileges,
|
|
and duties pertaining
thereto.
|
|
(f) The
division has authority to adopt rules pursuant to
|
|
ss. 120.536(1) and 120.54 to
implement and enforce the
|
|
provisions of this chapter.
|
|
(g) The
division shall establish procedures for providing
|
|
notice to an association
when the division is considering the
|
|
issuance of a declaratory
statement with respect to the
|
|
declaration of condominium
or any related document governing in
|
|
such condominium community.
|
|
(h) The
division shall furnish each association which pays
|
|
the fees required by
paragraph (2)(a) a copy of this act,
|
|
subsequent changes to this
act on an annual basis, an amended
|
|
version of this act as it
becomes available from the Secretary
|
|
of State's office on a
biennial basis, and the rules promulgated
|
|
pursuant thereto on an
annual basis.
|
|
(i) The
division shall annually provide each association
|
|
with a summary of
declaratory statements and formal legal
|
|
opinions relating to the
operations of condominiums which were
|
|
rendered by the division
during the previous year.
|
|
(j) The
division shall provide training programs for
|
|
condominium association
board members and unit owners in
|
|
conjunction
with the recommendations of the ombudsman, at the
|
|
associations'
expense.
|
|
(k) The
division shall maintain a toll-free telephone
|
|
number accessible to
condominium unit owners.
|
|
(l) The
division shall develop a program to certify both
|
|
volunteer and paid mediators
to provide mediation of condominium
|
|
disputes. The division shall
provide, upon request, a list of
|
|
such mediators to any
association, unit owner, or other
|
|
participant in arbitration
proceedings under s. 718.1255
|
|
requesting a copy of the
list. The division shall include on the
|
|
list of volunteer mediators
only the names of persons who have
|
|
received at least 20 hours
of training in mediation techniques
|
|
or who have mediated at
least 20 disputes. In order to become
|
|
initially certified by the
division, paid mediators must be
|
|
certified by the Supreme
Court to mediate court cases in either
|
|
county or circuit courts.
However, the division may adopt, by
|
|
rule, additional factors for
the certification of paid
|
|
mediators, which factors
must be related to experience,
|
|
education, or background.
Any person initially certified as a
|
|
paid mediator by the
division must, in order to continue to be
|
|
certified, comply with the
factors or requirements imposed by
|
|
rules adopted by the
division.
|
|
(m) When
a complaint is made, the division shall conduct
|
|
its inquiry with due regard
to the interests of the affected
|
|
parties. Within 30 days
after receipt of a complaint, the
|
|
division shall acknowledge
the complaint in writing and notify
|
|
the complainant whether the
complaint is within the jurisdiction
|
|
of the division and whether
additional information is needed by
|
|
the division from the
complainant. The division shall conduct
|
|
its investigation and shall,
within 90 days after receipt of the
|
|
original complaint or of
timely requested additional
|
|
information, take action
upon the complaint. However, the
|
|
failure to complete the
investigation within 90 days does not
|
|
prevent the division from
continuing the investigation,
|
|
accepting or considering
evidence obtained or received after 90
|
|
days, or taking
administrative action if reasonable cause exists
|
|
to believe that a violation
of this chapter or a rule of the
|
|
division has occurred. If an
investigation is not completed
|
|
within the time limits
established in this paragraph, the
|
|
division shall, on a monthly
basis, notify the complainant in
|
|
writing of the status of the
investigation. When reporting its
|
|
action to the complainant,
the division shall inform the
|
|
complainant of any right to
a hearing pursuant to ss. 120.569
|
|
and 120.57.
|
|
(n) Upon
a finding that any association has committed a
|
|
violation
within the jurisdiction of the division, the division
|
|
shall
require the association to:
|
|
1. Mail
and post a notice to all unit owners setting forth
|
|
the facts
and findings relative to any and all violations, as
|
|
well as a
description of the corrective action required.
|
|
2. Participate
in a mandatory educational training program
|
|
that
shall be directly related to the violation, taught by a
|
|
division-approved
provider, and completed within 90 days from
|
|
the date
of notification of the finding to the board members.
|
|
|
|
Failure
of the association to comply with this paragraph shall
|
|
result in
a civil penalty to the association in the amount of
|
|
$500 for
each week the notice is not mailed and posted or the
|
|
educational
training is not completed.
|
|
(2)(a) Effective
January 1, 1992, each condominium
|
|
association which operates
more than two units shall pay to the
|
|
division an annual fee in
the amount of $4 for each residential
|
|
unit in condominiums
operated by the association. If the fee is
|
|
not paid by March 1, then
the association shall be assessed a
|
|
penalty of 10 percent of the
amount due, and the association
|
|
will not have standing to
maintain or defend any action in the
|
|
courts of this state until
the amount due, plus any penalty, is
|
|
paid.
|
|
(b) All
fees shall be deposited in the Division of Florida
|
|
Land Sales, Condominiums, Homeowners'
Associations, and Mobile
|
|
Homes Trust Fund as provided
by law. One-fifth of all fees
|
|
deposited
by the division shall be allocated and transferred to
|
|
the
Office of the Condominium Ombudsman.
|
|
|
|
Section
17. Section 718.5011, Florida Statutes, is amended
|
|
to read:
|
|
718.5011 Ombudsman;
appointment; administration.--
|
|
(1) There
is created an Office of the Condominium
|
|
Ombudsman, to be located,
solely for administrative purposes,
|
|
within the Division of
Florida Land Sales, Condominiums,
|
|
Homeowners'
Associations, and Mobile Homes. The
ombudsman shall
|
|
exercise
his or her policymaking and other functions delegated
|
|
by this
chapter independently of the Department of Business and
|
|
Professional
Regulation and without approval or control of the
|
|
department.
The department shall render administrative support
|
|
to the
Office of the Condominium Ombudsman in matters pertaining
|
|
to
budget, personnel, office space, equipment, and supplies. All
|
|
revenues
collected for the office by the department shall be
|
|
deposited
in a separate fund or account from which the
|
|
department
may not use or divert the revenues. The functions of
|
|
the office shall be funded
by the Division of Florida Land
|
|
Sales, Condominiums, Homeowners'
Associations, and Mobile Homes
|
|
Trust Fund. The ombudsman
shall be a bureau chief of the
|
|
division, and the office
shall be set within the division in the
|
|
same manner as any other
bureau is staffed and funded.
|
|
(2) The
Governor shall appoint the ombudsman. The
|
|
ombudsman must be an
attorney admitted to practice before the
|
|
Florida Supreme Court and
shall serve at the pleasure of the
|
|
Governor. A vacancy in the
office shall be filled in the same
|
|
manner as the original
appointment. An officer or full-time
|
|
employee
of the ombudsman's office may not actively engage in
|
|
any other
business or profession; serve as the representative of
|
|
any
political party, executive committee, or other governing
|
|
body of a
political party; serve as an executive, officer, or
|
|
employee
of a political party; receive remuneration for
|
|
activities
on behalf of any candidate for public office; or
|
|
engage in
soliciting votes or other activities on behalf of a
|
|
candidate
for public office. The ombudsman or any employee of
|
|
his or
her office may not become a candidate for election to
|
|
public
office unless he or she first resigns from his or her
|
|
office or
employment.
|
|
|
|
Section
18. Section 718.5012, Florida Statutes, is amended
|
|
to read:
|
|
718.5012 Ombudsman;
powers and duties.--
|
|
(1) The
ombudsman shall have the powers that are necessary
|
|
to carry out the duties of
his or her office, including the
|
|
following specific powers:
|
|
(a)(1) To
have access to and use of all files and records
|
|
of the division.
|
|
(b)(2) To
employ professional and clerical staff as
|
|
necessary for the efficient
operation of the office.
|
|
(c)(3) To
prepare and issue reports and recommendations to
|
|
the Governor, the
department, the division, the Advisory Council
|
|
on Condominiums, the
President of the Senate, and the Speaker of
|
|
the House of Representatives
on any matter or subject within the
|
|
jurisdiction of the
division. The ombudsman shall make
|
|
recommendations he or she
deems appropriate for legislation
|
|
relative to division
procedures, rules, jurisdiction, personnel,
|
|
and functions.
|
|
(d)(4) To
act as liaison between the division, unit
|
|
owners, boards of directors,
board members, community
|
|
association managers, and
other affected parties. The ombudsman
|
|
shall develop
policies and procedures to assist unit owners,
|
|
boards of directors, board
members, community association
|
|
managers, and other affected
parties to understand their rights
|
|
and responsibilities as set
forth in this chapter and the
|
|
condominium documents
governing their respective association.
|
|
The ombudsman shall
coordinate and assist in the preparation and
|
|
adoption of educational and
reference material, and shall
|
|
endeavor to coordinate with
private or volunteer providers of
|
|
these services, so that the
availability of these resources is
|
|
made known to the largest
possible audience.
|
|
(e)(5) To
monitor and review procedures and disputes
|
|
concerning condominium
elections or meetings, including, but not
|
|
limited to, recommending
that the division pursue enforcement
|
|
action in any manner where
there is reasonable cause to believe
|
|
that election misconduct has
occurred. The division shall
|
|
process
the ombudsman's recommendations and petitions in an
|
|
expedited
manner and defer to his or her findings. For the
|
|
purpose
of fulfilling his or her duties under this chapter, the
|
|
ombudsman
may administer oaths or affirmations, subpoena
|
|
witnesses
and compel their attendance, take evidence, and
|
|
require
the production of any matter that is relevant to the
|
|
inquiry,
including the existence, description, nature, custody,
|
|
condition,
and location of any books, documents, or other
|
|
tangible
things and the identity and location of persons having
|
|
knowledge
of relevant facts or any other matter reasonably
|
|
calculated
to lead to the discovery of material evidence. Upon
|
|
the
failure by a person to obey a subpoena or to answer
|
|
questions
asked by the ombudsman and upon reasonable notice to
|
|
all
persons affected thereby, the ombudsman may apply to the
|
|
circuit
court for an order compelling compliance.
|
|
(f)(6) To
make recommendations to the division for changes
|
|
in rules and procedures for
the filing, investigation, and
|
|
resolution of complaints
filed by unit owners, associations, and
|
|
managers.
|
|
(g)(7) To
provide resources to assist members of boards of
|
|
directors and officers of
associations to carry out their powers
|
|
and duties consistent with
this chapter, division rules, and the
|
|
condominium documents
governing the association.
|
|
(h)(8) To
order, encourage,
and facilitate voluntary
|
|
meetings with and between
unit owners, boards of directors,
|
|
board members, community
association managers, and other
|
|
affected parties when the
meetings may assist in resolving a
|
|
dispute within a community
association before a person submits a
|
|
dispute for a formal or
administrative remedy. It is the intent
|
|
of the Legislature that the
ombudsman act as a neutral resource
|
|
for both the rights and
responsibilities of unit owners,
|
|
associations, and board
members.
|
|
(i) To
make recommendations to the division to pursue
|
|
enforcement
action in circuit court on behalf of a class of unit
|
|
owners,
lessees, or purchasers for declaratory relief,
|
|
injunctive
relief, or restitution against any developer,
|
|
association,
officer, or member of the board of administration,
|
|
or its
assignees or agents, where there is reasonable cause to
|
|
believe
misconduct has occurred. The division shall process the
|
|
ombudsman's
recommendations and petitions in an expedited manner
|
|
and defer
to his or her findings.
|
|
(2)(9) Fifteen
percent of the total voting interests in a
|
|
condominium association, or
six unit owners, whichever is
|
|
greater, may petition the
ombudsman to appoint an election
|
|
monitor to attend the annual
meeting of the unit owners and
|
|
conduct the election of
directors. The ombudsman upon petition
|
|
may order
any aspect of the election process as set forth in s.
|
|
718.112(2)(d)3.
to be conducted by the election monitor. No
|
|
association
or person may reject an election monitor appointed
|
|
by the
ombudsman or interfere with an election monitor in the
|
|
performance
of his or her duties. The ombudsman may order an
|
|
association
to implement a known division remedy for a
|
|
procedural
violation of s. 718.112(2)(d)3. prior to and during a
|
|
monitored
election. The ombudsman shall appoint a division
|
|
employee, a person or
persons specializing in condominium
|
|
election monitoring, or an
attorney licensed to practice in this
|
|
state as the election
monitor. All costs associated with the
|
|
election monitoring process
shall be paid by the association.
|
|
The division shall adopt a
rule establishing procedures for the
|
|
appointment of election
monitors and the scope and extent of the
|
|
monitor's role in the
election process.
|
|
(3) Any
unit owner or association acting in good faith on
|
|
the
advice or opinion of the office of the ombudsman shall be
|
|
immune
from any penalties or actions.
|
|
(4) If
the ombudsman has reasonable cause to believe that
|
|
a
violation of any provision of this chapter or rule adopted
|
|
under
this chapter has occurred, the ombudsman may issue an
|
|
order
requiring any developer, association, officer, or member
|
|
of the
board of administration, or its assignees or agents, to
|
|
cease and
desist from the unlawful practice and to take such
|
|
affirmative
action that will carry out the purposes of this
|
|
chapter.
|
|
|
|
Section
19. Section 718.50151, Florida Statutes, is amended
|
|
to read:
|
|
718.50151
Advisory council; membership functions.--
|
|
(1) There
is created the Advisory Council on Condominiums.
|
|
The
council shall consist of seven appointed members. Two
|
|
members
shall be appointed by the President of the Senate,
|
|
two
members shall be appointed by the Speaker of the
|
|
House
of Representatives, and three members shall be
|
|
appointed
by the Governor. At least one member that is
|
|
appointed
by the Governor shall represent timeshare
|
|
condominiums.
Members shall be appointed to 2-year terms;
|
|
however,
one of the persons initially appointed by the
|
|
Governor,
by the President of the Senate, and by the Speaker
|
|
of
the House of Representatives shall be appointed to a 1-year
|
|
term.
The director of the division shall serve as an ex officio
|
|
nonvoting
member. The Legislature intends that the persons
|
|
appointed
represent a cross-section of persons interested in
|
|
condominium
issues. The council shall be located within the
|
|
division
for administrative purposes. Members of the council
|
|
shall
serve without compensation but are entitled to receive
|
|
per
diem and travel expenses pursuant to s. 112.061 while on
|
|
official
business.
|
|
(2) The
functions of the advisory council shall be to:
|
|
(a) Receive,
from the public, input regarding issues of concern with
|
|
respect
to condominiums and recommendations for changes
|
|
in
the condominium law. The issues that the council shall consider
|
|
include,
but are not limited to, the rights and responsibilities of
|
|
the
unit owners in relation to the rights and responsibilities of
|
|
the
association.
|
|
(b) Review,
evaluate, and advise the division concerning
|
|
revisions
and adoption of rules affecting condominiums.
|
|
(c) Recommend
improvements, if needed, in the education
|
|
programs
offered by the division.
|
|
(3) The
council may elect a chair and vice chair and such other
|
|
officers
as it may deem advisable. The council shall meet at the
|
|
call
of its chair, at the request of a majority of its membership, at
|
|
the
request of the division, or at such times as it may prescribe.
|
|
A
majority of the members of the council shall constitute a quorum.
|
|
Council
action may be taken by vote of a majority of the voting
|
|
members
who are present at a meeting where there is a quorum.
|
|
|
|
Section
20. Paragraph (a) of subsection (2) of section
|
|
718.502, Florida Statutes,
is amended to read:
|
|
718.502 Filing
prior to sale or lease.--
|
|
(2)(a) Prior
to filing as required by subsection (1), and
|
|
prior to acquiring an
ownership, leasehold, or contractual
|
|
interest in the land upon
which the condominium is to be
|
|
developed, a developer shall
not offer a contract for purchase
|
|
of a unit or lease of a unit
for more than 5 years. However, the
|
|
developer may accept
deposits for reservations upon the approval
|
|
of a fully executed escrow
agreement and reservation agreement
|
|
form properly filed with the
Division of Florida Land Sales,
|
|
Condominiums, Homeowners'
Associations, and Mobile Homes. Each
|
|
filing of a proposed
reservation program shall be accompanied by
|
|
a filing fee of $250.
Reservations shall not be taken on a
|
|
proposed condominium unless
the developer has an ownership,
|
|
leasehold, or contractual
interest in the land upon which the
|
|
condominium is to be
developed. The division shall notify the
|
|
developer within 20 days of
receipt of the reservation filing of
|
|
any deficiencies contained
therein. Such notification shall not
|
|
preclude the determination
of reservation filing deficiencies at
|
|
a later date, nor shall it
relieve the developer of any
|
|
responsibility under the
law. The escrow agreement and the
|
|
reservation agreement form
shall include a statement of the
|
|
right of the prospective
purchaser to an immediate unqualified
|
|
refund of the reservation
deposit moneys upon written request to
|
|
the escrow agent by the
prospective purchaser or the developer.
|
|
|
|
Section
20. Section 718.504, Florida Statutes, is amended
|
|
to read:
|
|
718.504 Prospectus
or offering circular.--Every developer
|
|
of a residential condominium
which contains more than 20
|
|
residential units, or which
is part of a group of residential
|
|
condominiums which will be
served by property to be used in
|
|
common by unit owners of
more than 20 residential units, shall
|
|
prepare a prospectus or
offering circular and file it with the
|
|
Division of Florida Land
Sales, Condominiums, Homeowners'
|
|
Associations,
and
Mobile Homes prior to entering into an
|
|
enforceable contract of
purchase and sale of any unit or lease
|
|
of a unit for more than 5
years and shall furnish a copy of the
|
|
prospectus or offering
circular to each buyer. In addition to
|
|
the prospectus or offering
circular, each buyer shall be
|
|
furnished a separate page
entitled "Frequently Asked Questions
|
|
and Answers," which
shall be in accordance with a format
|
|
approved by the division and
a copy of the financial information
|
|
required by s. 718.111. This
page shall, in readable language,
|
|
inform prospective
purchasers regarding their voting rights and
|
|
unit use restrictions,
including restrictions on the leasing of
|
|
a unit; shall indicate
whether and in what amount the unit
|
|
owners or the association is
obligated to pay rent or land use
|
|
fees for recreational or
other commonly used facilities; shall
|
|
contain a statement
identifying that amount of assessment which,
|
|
pursuant to the budget,
would be levied upon each unit type,
|
|
exclusive of any special
assessments, and which shall further
|
|
identify the basis upon
which assessments are levied, whether
|
|
monthly, quarterly, or
otherwise; shall state and identify any
|
|
court cases in which the
association is currently a party of
|
|
record in which the
association may face liability in excess of
|
|
$100,000; and which shall
further state whether membership in a
|
|
recreational facilities
association is mandatory, and if so,
|
|
shall identify the fees
currently charged per unit type. The
|
|
division shall by rule
require such other disclosure as in its
|
|
judgment will assist
prospective purchasers. The prospectus or
|
|
offering circular may
include more than one condominium,
|
|
although not all such units
are being offered for sale as of the
|
|
date of the prospectus or
offering circular. The prospectus or
|
|
offering circular must
contain the following information:
|
|
|
|
(21) An
estimated operating budget for the condominium and
|
|
the association, prepared
in good faith, and a schedule of the
|
|
unit owner's expenses shall
be attached as an exhibit and shall
|
|
contain the following
information:
|
|
(a) The
estimated monthly and annual revenues and
expenses
|
|
of the condominium and the
association that are earned by the
|
|
association
or collected from unit owners by assessments.
|
|
(d) The
estimated amounts shall be stated for a period of
|
|
at least
12 months and may distinguish between the period prior
|
|
to the
time unit owners other than the developer elect a
|
|
majority
of the board of administration and the period after
|
|
that
date.
|
|
|
|
Section
21. Section 718.508, Florida Statutes, is amended
|
|
to read:
|
|
718.508 Regulation
by Division of Hotels and
|
|
Restaurants.--In addition to
the authority, regulation, or
|
|
control exercised by the
Division of Florida Land Sales,
|
|
Condominiums, Homeowners'
Associations, and Mobile Homes
|
|
pursuant to this act with
respect to condominiums, buildings
|
|
included in a condominium
property shall be subject to the
|
|
authority, regulation, or
control of the Division of Hotels and
|
|
Restaurants of the
Department of Business and Professional
|
|
Regulation, to the extent
provided for in chapter 399.
|
|
|
|
Section
22. Section 718.509, Florida Statutes, is amended
|
|
to read:
|
|
718.509 Division
of Florida Land Sales, Condominiums,
|
|
Homeowners'
Associations, and Mobile Homes Trust Fund.--All
|
|
funds collected by the
division and any amount paid for a fee or
|
|
penalty under this chapter
shall be deposited in the State
|
|
Treasury to the credit of
the Division of Florida Land Sales,
|
|
Condominiums, Homeowners'
Associations, and Mobile Homes Trust
|
|
Fund created by s. 498.019.
|
|
|
|
Section
23. Paragraph (a) of subsection (2) of section
|
|
718.608, Florida Statutes,
is amended to read:
|
|
718.608 Notice
of intended conversion; time of delivery;
|
|
content.--
|
|
(2)(a) Each
notice of intended conversion shall be dated
|
|
and in writing. The notice
shall contain the following
|
|
statement, with the phrases
of the following statement which
|
|
appear in upper case printed
in conspicuous type:
|
|
|
|
These
apartments are being converted to condominium by
|
|
(name of developer) ,
the developer.
|
|
1. YOU
MAY REMAIN AS A RESIDENT UNTIL THE EXPIRATION OF
|
|
YOUR RENTAL AGREEMENT.
FURTHER, YOU MAY EXTEND YOUR RENTAL
|
|
AGREEMENT AS FOLLOWS:
|
|
a. If
you have continuously been a resident of these
|
|
apartments during the last
180 days and your rental agreement
|
|
expires during the next 270
days, you may extend your rental
|
|
agreement for up to 270 days
after the date of this notice.
|
|
b. If
you have not been a continuous resident of these
|
|
apartments for the last 180
days and your rental agreement
|
|
expires during the next 180
days, you may extend your rental
|
|
agreement for up to 180 days
after the date of this notice.
|
|
c. IN
ORDER FOR YOU TO EXTEND YOUR RENTAL AGREEMENT, YOU
|
|
MUST GIVE THE DEVELOPER
WRITTEN NOTICE WITHIN 45 DAYS AFTER THE
|
|
DATE OF THIS NOTICE.
|
|
2. IF
YOUR RENTAL AGREEMENT EXPIRES IN THE NEXT 45 DAYS,
|
|
you may extend your rental
agreement for up to 45 days after the
|
|
date of this notice while
you decide whether to extend your
|
|
rental agreement as
explained above. To do so, you must notify
|
|
the developer in writing.
You will then have the full 45 days to
|
|
decide whether to extend
your rental agreement as explained
|
|
above.
|
|
3. During
the extension of your rental agreement you will
|
|
be charged the same rent
that you are now paying.
|
|
4. YOU
MAY CANCEL YOUR RENTAL AGREEMENT AND ANY EXTENSION
|
|
OF THE RENTAL AGREEMENT AS
FOLLOWS:
|
|
a. If
your rental agreement began or was extended or
|
|
renewed after May 1, 1980,
and your rental agreement, including
|
|
extensions and renewals, has
an unexpired term of 180 days or
|
|
less, you may cancel your
rental agreement upon 30 days' written
|
|
notice and move. Also, upon
30 days' written notice, you may
|
|
cancel any extension of the
rental agreement.
|
|
b. If
your rental agreement was not begun or was not
|
|
extended or renewed after
May 1, 1980, you may not cancel the
|
|
rental agreement without the
consent of the developer. If your
|
|
rental agreement, including
extensions and renewals, has an
|
|
unexpired term of 180 days
or less, you may, however, upon 30
|
|
days' written notice cancel
any extension of the rental
|
|
agreement.
|
|
5. All
notices must be given in writing and sent by mail,
|
|
return receipt requested, or
delivered in person to the
|
|
developer at this address:
(name and address of developer) .
|
|
6. If
you have continuously been a resident of these
|
|
apartments during the last
180 days:
|
|
a. You
have the right to purchase your apartment and will
|
|
have 45 days to decide
whether to purchase. If you do not buy
|
|
the unit at that price and
the unit is later offered at a lower
|
|
price, you will have the
opportunity to buy the unit at the
|
|
lower price. However, in all
events your right to purchase the
|
|
unit ends when the rental
agreement or any extension of the
|
|
rental agreement ends or
when you waive this right in writing.
|
|
b. Within
90 days you will be provided purchase
|
|
information relating to your
apartment, including the price of
|
|
your unit and the condition
of the building. If you do not
|
|
receive this information
within 90 days, your rental agreement
|
|
and any extension will be
extended 1 day for each day over 90
|
|
days until you are given the
purchase information. If you do not
|
|
want this rental agreement
extension, you must notify the
|
|
developer in writing.
|
|
7. If
you have any questions regarding this conversion or
|
|
the Condominium Act, you may
contact the developer or the state
|
|
agency which regulates
condominiums: The Division of Florida
|
|
Land Sales, Condominiums, Homeowners'
Associations, and Mobile
|
|
Homes,
(Tallahassee address and telephone number of division)
|