|
Section
1. Subsection (17) of section 718.103, Florida
|
|
Statutes, is amended to read:
|
|
718.103 Definitions.--As
used in this chapter, the term:
|
|
(17) "Division"
means the Division of Florida Land Sales,
|
|
Condominiums, Homeowners'
Associations, and Mobile Homes of the
|
|
Department of Business and
Professional Regulation.
|
|
|
|
Section
2. Paragraph (f) of subsection (4) of section
|
|
718.104, Florida Statutes, is amended
to read:
|
|
718.104 Creation
of condominiums; contents of
|
|
declaration.--Every condominium
created in this state shall be
|
|
created pursuant to this chapter.
|
|
(4) The
declaration must contain or provide for the
|
|
following matters:
|
|
(f) The
undivided share of ownership of the common
|
|
elements and common surplus of the
condominium that is
|
|
appurtenant to each unit stated as a
percentage or a fraction of
|
|
the whole. In the declaration of
condominium for residential
|
|
condominiums created after April 1, 2007
1992, the ownership
|
|
share of the common elements assigned
to each residential unit
|
|
shall be based either
upon the total square footage of each
|
|
residential unit in uniform
relationship to the total square
|
|
footage of each other residential unit
in the condominium or on
|
|
an equal
fractional basis.
|
|
|
|
Section
3. Paragraph (c) of subsection (4) of section
|
|
718.105, Florida Statutes, is amended
to read:
|
|
718.105 Recording
of declaration.--
|
|
(4)
|
|
(c) If
the sum of money held by the clerk has not been
|
|
paid to the developer or association
as provided in paragraph
|
|
(b) by 3 years after the date the
declaration was originally
|
|
recorded, the clerk in his or her
discretion may notify, in
|
|
writing, the registered agent of the
association that the sum is
|
|
still available and the purpose for
which it was deposited. If
|
|
the association does not record the
certificate within 90 days
|
|
after the clerk has given the notice,
the clerk may disburse the
|
|
money to the developer. If the
developer cannot be located, the
|
|
clerk shall disburse the money to the
Division of Florida Land
|
|
Sales, Condominiums, Homeowners'
Associations, and Mobile Homes
|
|
for deposit in the Division of Florida
Land Sales, Condominiums,
|
|
Homeowners'
Associations, and Mobile Homes Trust Fund.
|
|
|
|
Section
4. Paragraph (d) is added to subsection (1) of
|
|
section 718.110, Florida Statutes, to
read:
|
|
718.110 Amendment
of declaration; correction of error or
|
|
omission in declaration by circuit
court.--
|
|
(1)
|
|
(d) Notice
of a proposed amendment to the declaration
|
|
shall be sent to
the unit owner by certified mail.
|
|
|
|
Section
5. Subsection (5), paragraph (b) of subsection
|
|
(7), paragraphs
(a), (b) and (c) of
subsection (12), and subsection
|
|
(13) of section 718.111, Florida
Statutes, are amended, and
|
|
subsection (15) is added to that
section, to read:
|
|
718.111 The
association.--
|
|
(5) RIGHT
OF ACCESS TO UNITS.--The association has the
|
|
irrevocable right of access to each
unit during reasonable
|
|
hours, when necessary for the
maintenance, repair, or
|
|
replacement of any common elements or
of any portion of a unit
|
|
to be maintained by the association
pursuant to the declaration
|
|
or as necessary to prevent damage to
the common elements or to a
|
|
unit or units. Except
in cases of emergency, the association
|
|
must give the unit
owner 24 hours' advance written notice of
|
|
intent to access
the unit and such access must include two
|
|
persons, one of
whom must be a member of the board of
|
|
administration.
|
|
(7) TITLE
TO PROPERTY.--
|
|
(b) Subject
to the provisions of s. 718.112(2)(l)(m), the
|
|
association, through its board, has
the limited power to convey
|
|
a portion of the common elements to a
condemning authority for
|
|
the purposes of providing utility
easements, right-of-way
|
|
expansion, or other public purposes,
whether negotiated or as a
|
|
result of eminent domain proceedings.
|
|
(12) OFFICIAL
RECORDS.--
|
|
(a)
|
|
11. Accounting
records for the association and separate accounting
|
|
records
for each condominium which the association operates. All
|
|
accounting
records shall be maintained for a period of not less than
|
|
7 years. Any
officer, director, or manager who knowingly or intentionally
|
|
defaces,
destroys or fails to create, or maintain accounting records is
|
|
personally
subject to a civil penalty pursuant to s. 718.501(1)(d) and
|
|
appropriate
criminal sanctions. The accounting records shall include,
|
|
but are
not limited to:
|
|
a. Accurate,
itemized, and detailed records of all receipts and
|
|
expenditures.
|
|
b. A
current account and a monthly, bimonthly, or quarterly
statement
|
|
of the
account for each unit designating the name of the unit owner,
|
|
the due
date and amount of each assessment, the amount paid upon
|
|
the
account, and the balance due.
|
|
c. All
audits, reviews, accounting statements, and financial reports
|
|
of the
association or condominium.
|
|
d. All
contracts for work to be performed. Bids for work to be
|
|
performed shall also be considered
official records and shall
|
|
be
maintained for a period of 1 year.
|
|
|
|
(b) The
official records of the association shall be
|
|
maintained within the
state
county. The
records of the association
|
|
shall be made available to a unit
owner, at a location within 30
|
|
miles'
driving distance of the condominium property, within 5
|
|
working days after receipt of written
request by the board or
|
|
its designee. This paragraph may be
complied with by having a
|
|
copy of the official records of the
association available for
|
|
inspection or copying on the
condominium property or association
|
|
property.
|
|
(c) The
official records of the association are open to
|
|
inspection by any association member
or the authorized
|
|
representative of such member at all
reasonable times. The right
|
|
to inspect the records includes the
right to make or obtain
|
|
copies, at the reasonable expense, if
any, of the association
|
|
member. The association may adopt
reasonable rules regarding the
|
|
frequency, time, location, notice, and
manner of record
|
|
inspections and copying. The failure
of an association to
|
|
provide the records within 10 working
days after receipt of a
|
|
written request shall create a
rebuttable presumption that the
|
|
association willfully failed to comply
with this paragraph. A
|
|
unit owner who is denied access to
official records is entitled
|
|
to the actual damages or minimum
damages for the association's
|
|
willful failure to comply with this
paragraph. The minimum
|
|
damages shall be $50 per calendar day
up to 10 days, the
|
|
calculation to begin on the 11th
working day after receipt of
|
|
the written request. The failure to
permit inspection of the
|
|
association records as provided herein
entitles any person
|
|
prevailing in an enforcement action to
recover reasonable
|
|
attorney's fees from the person in
control of the records who,
|
|
directly or indirectly, knowingly
denied access to the records
|
|
for inspection.
Any
officer, director, or manager who knowingly
|
|
or
intentionally defaces,
destroys or fails to create, or maintain
|
|
accounting
records is personally
subject to a civil penalty pursuant
|
|
to
s. 718.501(1)(d) and appropriate criminal sanctions.
The
|
|
The association shall
maintain an adequate number of copies of
|
|
the declaration,
articles of incorporation, bylaws, and rules, and all
|
|
amendments
to each of the foregoing, as well as the question
|
|
and answer
sheet provided for in s. 718.504 and year-end
|
|
financial
information required in this section on the
|
|
condominium property to
ensure their availability to unit
|
|
owners and prospective
purchasers, and may charge its
|
|
actual costs for preparing and
furnishing these documents to
|
|
those requesting the same.
Notwithstanding the provisions of
|
|
this paragraph, the following records
shall not be accessible to
|
|
unit owners:
|
|
1. Any
record protected by the lawyer-client privilege as
|
|
described in s. 90.502; and any record
protected by the work-
|
|
product privilege, including any
record prepared by an
|
|
association attorney or prepared at
the attorney's express
|
|
direction; which reflects a mental
impression, conclusion,
|
|
litigation strategy, or legal theory
of the attorney or the
|
|
association, and which was prepared
exclusively for civil or
|
|
criminal litigation or for adversarial
administrative
|
|
proceedings, or which was prepared in
anticipation of imminent
|
|
civil or criminal litigation or
imminent adversarial
|
|
administrative proceedings until the
conclusion of the
|
|
litigation or adversarial
administrative proceedings.
|
|
2. Information
obtained by an association in connection
|
|
with the approval of the lease, sale,
or other transfer of a
|
|
unit.
|
|
3. Medical
records of unit owners.
|
|
4. Social
security numbers, driver's license numbers,
|
|
credit card
numbers, and other personal identifying information
|
|
of unit owners,
occupants, or tenants.
|
|
(13) FINANCIAL
REPORTING.--Within 90 days after the end of
|
|
the fiscal year, or annually on a date
provided in the bylaws,
|
|
the association shall prepare and
complete, or contract for the
|
|
preparation and completion of, a
financial report for the
|
|
preceding fiscal year. Within 21 days
after the final financial
|
|
report is completed by the association
or received from the
|
|
third party, but not later than 120
days after the end of the
|
|
fiscal year or other date as provided
in the bylaws, the
|
|
association shall mail to each unit
owner at the address last
|
|
furnished to the association by the
unit owner, or hand deliver
|
|
to each unit owner, a copy of the
financial report or a notice
|
|
that a copy of the financial report
will be mailed or hand
|
|
delivered to the unit owner,
without charge, upon receipt of a
|
|
written
request from the unit owner. The division shall adopt
|
|
rules setting forth uniform accounting
principles and standards
|
|
to be used by all associations and
shall adopt rules addressing
|
|
financial reporting requirements for
multicondominium
|
|
associations. In adopting such rules,
the division shall
|
|
consider the number of members and
annual revenues of an
|
|
association. Financial reports shall
be prepared as follows:
|
|
(a) An
association that meets the criteria of this
|
|
paragraph shall prepare or cause to be
prepared a complete set
|
|
of financial statements in accordance
with generally accepted
|
|
accounting principles. The financial
statements shall be based
|
|
upon the association's total annual
revenues, as follows:
|
|
1. An
association with total annual revenues of $100,000
|
|
or more, but less than $200,000, shall
prepare compiled
|
|
financial statements.
|
|
2. An
association with total annual revenues of at least
|
|
$200,000, but less than $400,000,
shall prepare reviewed
|
|
financial statements.
|
|
3. An
association with total annual revenues of $400,000
|
|
or more shall prepare audited
financial statements.
|
|
(b)1. An
association with total annual revenues of less
|
|
than $100,000 shall prepare a report
of cash receipts and
|
|
expenditures.
|
|
2. An
association which operates less than 50 units,
|
|
regardless of the association's annual
revenues, shall prepare a
|
|
report of cash receipts and
expenditures in lieu of financial
|
|
statements required by paragraph (a).
|
|
3. A
report of cash receipts and disbursements must
|
|
disclose the amount of receipts by
accounts and receipt
|
|
classifications and the amount of
expenses by accounts and
|
|
expense classifications, including,
but not limited to, the
|
|
following, as applicable: costs for
security, professional and
|
|
management fees and expenses, taxes,
costs for recreation
|
|
facilities, expenses for refuse
collection and utility services,
|
|
expenses for lawn care, costs for
building maintenance and
|
|
repair, insurance costs,
administration and salary expenses, and
|
|
reserves accumulated and expended for
capital expenditures,
|
|
deferred maintenance, and any other
category for which the
|
|
association maintains reserves.
|
|
(c) An
association may prepare or cause to be prepared,
|
|
without a meeting of or approval by
the unit owners:
|
|
1. Compiled,
reviewed, or audited financial statements, if
|
|
the association is required to prepare
a report of cash receipts
|
|
and expenditures;
|
|
2. Reviewed
or audited financial statements, if the
|
|
association is required to prepare
compiled financial
|
|
statements; or
|
|
3. Audited
financial statements if the association is
|
|
required to prepare reviewed financial
statements.
|
|
(d) If
approved by a majority of the voting interests
|
|
present at a properly called meeting
of the association, an
|
|
association may prepare or cause to be
prepared:
|
|
1. A
report of cash receipts and expenditures in lieu of a
|
|
compiled, reviewed, or audited
financial statement;
|
|
2. A
report of cash receipts and expenditures or a
|
|
compiled financial statement in lieu
of a reviewed or audited
|
|
financial statement; or
|
|
3. A
report of cash receipts and expenditures, a compiled
|
|
financial statement, or a reviewed
financial statement in lieu
|
|
of an audited financial statement.
|
|
|
|
Such meeting and approval must occur
prior to the end of the
|
|
fiscal year and is effective only for
the fiscal year in which
|
|
the vote is taken. With respect to an
association to which the
|
|
developer has not turned over control
of the association, all
|
|
unit owners, including the developer,
may vote on issues related
|
|
to the preparation of financial
reports for the first 2 fiscal
|
|
years of the association's operation,
beginning with the fiscal
|
|
year in which the declaration is
recorded. Thereafter, all unit
|
|
owners except the developer may vote
on such issues until
|
|
control is turned over to the
association by the developer. An
|
|
association or board of
administration may not waive the
|
|
financial reporting requirements of
this section for more than 2
|
|
years.
|
|
(15) RECONSTRUCTION
AFTER CASUALTY.--
|
|
(a) In
the event the condominium property and units are
|
|
damaged after a
casualty, the board of administration shall
|
|
obtain reliable and
detailed estimates of the cost necessary to
|
|
repair and replace
the damaged property to substantially the
|
|
same condition
existing immediately prior to the casualty and
|
|
substantially in
accordance with the original plans and
|
|
specifications of
the condominium as soon as possible and not
|
|
later than 60 days
after the casualty. If the damage to the
|
|
condominium
property exceeds 50 percent of the property's value,
|
|
the condominium may
be terminated unless 75 percent of the unit
|
|
owners agree to
reconstruction and repair within 90 days after
|
|
the casualty.
|
|
(b) The
board of administration shall engage the services
|
|
of a registered
architect and knowledgeable construction
|
|
specialists to
prepare any necessary plans and specifications
|
|
and shall receive
and approve bids for reconstruction, execute
|
|
all necessary
contracts for restoration, and arrange for
|
|
disbursement of
construction funds, the approval of work, and
|
|
all other matters
pertaining to the repairs and reconstruction
|
|
required.
|
|
(c) If
the proceeds of the hazard insurance policy
|
|
maintained by the
association pursuant to paragraph (11)(b) are
|
|
insufficient to pay
the estimated costs of reconstruction or at
|
|
any time during
reconstruction and repair, assessments shall be
|
|
made against all
unit owners according to their share of the
|
|
common elements and
expenses as set forth in the declaration of
|
|
condominium.
|
|
(d) Assessments
shall be made against unit owners for
|
|
damage to their
units according to the cost of reconstruction or
|
|
repair of their
respective units. The assessments shall be
|
|
levied and
collected as all other assessments are provided for
|
|
in this chapter.
|
|
|
|
Section
6. Subsection (2) of section 718.112, Florida
|
|
Statutes, is amended to read:
|
|
718.112 Bylaws.--
|
|
(2) REQUIRED
PROVISIONS.--The bylaws of the association
|
|
shall provide for the following and,
if they do not do so, shall
|
|
be deemed to include the following:
|
|
(a) Administration.--
|
|
1. The
form of administration of the association shall be
|
|
described indicating the title of the
officers and board of
|
|
administration and specifying the
powers, duties, manner of
|
|
selection and removal, and
compensation, if any, of officers and
|
|
boards. In the absence of such a
provision or determination by
|
|
the board or membership, the
board of administration shall be
|
|
composed of five members who are
unit owners, except in the case
|
|
of a condominium which has five or
fewer units, in which case in
|
|
a not-for-profit corporation the board
shall consist of not
|
|
fewer than three members who are
unit owners. In the absence of
|
|
provisions to the contrary in the
bylaws, the board of
|
|
administration shall have a president,
a secretary, and a
|
|
treasurer, who shall perform the
duties of such officers
|
|
customarily performed by officers of
corporations. Unless
|
|
prohibited in the bylaws, the board of
administration may
|
|
appoint other officers and grant them
the duties it deems
|
|
appropriate. Unless otherwise provided
in the bylaws, the
|
|
officers shall serve without
compensation and at the pleasure of
|
|
the board of administration. Unless
otherwise provided in the
|
|
bylaws, the members of the board shall
serve without
|
|
compensation.
|
|
2. When
a unit owner files a written inquiry by certified
|
|
mail with the board of administration,
the board shall respond
|
|
in writing by certified mail,
return receipt requested, to the
|
|
unit owner within 30 days after
of receipt of the inquiry. The
|
|
board's response shall either give a
substantive response to the
|
|
inquirer, notify the inquirer that a
legal opinion has been
|
|
requested, or notify the inquirer that
advice has been requested
|
|
from the division. If the board
requests advice from the
|
|
division, the board shall, within 10
days after of
its receipt
|
|
of the advice, provide in writing by
certified mail a
|
|
substantive response to the inquirer.
If a legal opinion is
|
|
requested, the board shall, within 60
days after the receipt of
|
|
the inquiry, provide in writing by
certified mail a substantive
|
|
response to the inquiry. The failure
to provide a substantive
|
|
response to the inquiry as provided
herein precludes the board
|
|
from recovering attorney's fees and
costs in any subsequent
|
|
litigation, administrative proceeding,
or arbitration arising
|
|
out of the inquiry. The
association may through its board of
|
|
administration
adopt reasonable rules and regulations regarding
|
|
the frequency and
manner of responding to unit owner inquiries,
|
|
one of which may be
that the association is only obligated to
|
|
respond to one
written inquiry per unit in any given 30-day
|
|
period. In such a
case, any additional inquiry or inquiries must
|
|
be responded to in
the subsequent 30-day period, or periods, as
|
|
applicable.
|