Bill Text: FL S1196 | 2010 | Regular Session | Engrossed

NOTE: There are more recent revisions of this legislation. Read Latest Draft

---

Bill Title: Community Associations [CPSC]

Spectrum: Slight Partisan Bill (Republican 4-2)

Status: (Passed) 2010-06-01 - Approved by Governor; Chapter No. 2010-174; companion bill(s) passed, see CS/CS/CS/CS/HB 663 (Ch. 2010-176), CS/HB 1035 (Ch. 2010-110) [S1196 Detail]

Download: Florida-2010-S1196-Engrossed.html

---

 
CS for CS for CS for SB's 1196 & 1222     Second Engrossed (ntc) 
20101196e2 
1                        A bill to be entitled 
2         An act relating to community associations; amending s. 
3         399.02, F.S.; exempting certain elevators from 
4         specific code update requirements; providing a phase 
5         in period for such elevators; amending s. 617.0721, 
6         F.S.; revising the limitations on the right of members 
7         to vote on corporate matters for certain corporations 
8         not for profit that are regulated under ch. 718 or ch. 
9         719, F.S.; amending s. 617.0808, F.S.; excepting 
10         certain corporations not for profit that are an 
11         association as defined in s. 720.301, F.S., or a 
12         corporation regulated under ch. 718 or ch. 719, F.S., 
13         from certain provisions relating to the removal of a 
14         director; creating s. 617.1606, F.S.; providing that 
15         certain statutory provisions providing for the 
16         inspection of corporate records do not apply to a 
17         corporation not for profit that is an association as 
18         defined in s. 720.301, or a corporation regulated 
19         under ch. 718 or ch. 719, F.S.; creating s. 627.714, 
20         F.S.; requiring that coverage under a unit owner’s 
21         policy for certain assessments include at least a 
22         minimum amount of loss assessment coverage; specifying 
23         the maximum amount of any unit owner’s loss assessment 
24         coverage that can be assessed for any loss; providing 
25         that certain changes to the limits of a unit owner’s 
26         coverage for loss assessments made on or after a 
27         specified period before the date of loss do not apply 
28         to the loss; providing that certain insurers are not 
29         required to pay more than an amount equal to that unit 
30         owner’s loss assessment coverage limit; requiring that 
31         every property insurance policy to an individual unit 
32         owner contain a specified provision; amending s. 
33         633.0215, F.S.; exempting certain residential 
34         buildings from a requirement to install a manual fire 
35         alarm system; amending s. 718.103, F.S.; redefining 
36         the term “developer”; amending s. 718.110, F.S.; 
37         allowing the condominium association to have the 
38         authority to restrict through an amendment to a 
39         declaration of condominium, rather than prohibit, the 
40         rental of condominium units; authorizing the 
41         classification of certain portions of common elements 
42         as limited common elements upon receipt of the 
43         required vote to amend a declaration; providing that 
44         such reclassification is not an amendment pursuant to 
45         specified provisions of state law; amending s. 
46         718.111, F.S.; deleting a requirement for the board of 
47         a condominium to hold a meeting open to unit owners to 
48         establish the amount of an insurance deductible; 
49         revising the property to which a property insurance 
50         policy for a condominium association applies; revising 
51         the requirements for a condominium unit owner’s 
52         property insurance policy; limiting the circumstances 
53         under which a person who violates requirements to 
54         maintain association records may be personally liable 
55         for a civil penalty; providing that a condominium 
56         association is not responsible for the use of certain 
57         information provided to an association member under 
58         certain circumstances; specifying records of a 
59         condominium association which are exempt from a 
60         requirement that records be available for inspection 
61         by an association member; increasing the amount of 
62         time within which a condominium association must 
63         provide unit owners with a copy of the association’s 
64         annual financial report; revising the requirements for 
65         rules relating to the financial report that must be 
66         adopted by the Division of Florida Condominiums, 
67         Timeshares, and Mobile Homes of the Department of 
68         Business and Professional Regulation; revising the 
69         requirements for a financial report based on the 
70         amount of a condominium’s revenues; amending s. 
71         718.112, F.S.; revising provisions relating to the 
72         terms or appointment or election of condominium 
73         members to a board of administration; creating 
74         exceptions to such provisions for condominiums that 
75         contain timeshares; specifying a certification that a 
76         person who is appointed or elected to a board of 
77         administration must make or educational requirements 
78         such board member must satisfy; conforming cross 
79         references to changes made by the act; deleting a 
80         provision prohibiting an association from foregoing 
81         the retrofitting with a fire sprinkler system of 
82         common areas in a high-rise building; prohibiting 
83         local authorities having jurisdiction from requiring 
84         retrofitting with a sprinkler system or other 
85         engineered lifesafety system before a specified date; 
86         requiring that certain associations initiate, before a 
87         specified date, an application for a building permit 
88         for the required fire sprinkler installation with the 
89         local government having jurisdiction demonstrating 
90         that the association will be in compliance with 
91         certain firesafety requirements by a specified date; 
92         authorizing an association to forgo retrofitting under 
93         certain circumstances; providing requirements for a 
94         special meeting of unit owners which may be called 
95         every 3 years in order to vote to forgo retrofitting 
96         of the sprinkler system or other engineered lifesafety 
97         systems; providing meeting notice requirements; 
98         expanding the monetary obligations that a director or 
99         officer must satisfy to avoid abandoning his or her 
100         office; amending s. 718.115, F.S.; specifying certain 
101         services provided in a declaration of condominium 
102         which are obtained pursuant to a bulk contract to be 
103         deemed a common expense; specifying provisions that 
104         must be contained in a bulk contract; specifying 
105         cancellation procedures for bulk contracts; amending 
106         s. 718.116, F.S.; increasing the period of accrual of 
107         certain assessments used to determine the amount of 
108         limited liability of certain first mortgagees or their 
109         successors or assignees; requiring a tenant in a unit 
110         owned by a person who is delinquent in the payment of 
111         a monetary obligation to the condominium association 
112         to pay rent to the association under certain 
113         circumstances; authorizing the condominium association 
114         to sue such tenant who fails to pay rent for eviction 
115         under certain circumstances; providing that the tenant 
116         is immune from claims from the unit owner as the 
117         result of paying rent to the association under certain 
118         circumstances; amending s. 718.117, F.S.; revising the 
119         circumstances under which a condominium association 
120         may be terminated due to economic waste or 
121         impossibility; revising provisions specifying the 
122         effect of a termination of condominium; amending s. 
123         718.202, F.S.; authorizing the deposit of certain 
124         funds into multiple escrow accounts; requiring that an 
125         escrow agent maintain separate accounting records for 
126         each purchaser under certain circumstances; amending 
127         s. 718.301, F.S.; revising conditions under which unit 
128         owners other than the developer may elect at least a 
129         majority of the members of the board of administration 
130         of an association; amending s. 718.303, F.S.; 
131         authorizing an association to suspend for a reasonable 
132         time the right of a unit owner or the unit’s occupant, 
133         licensee, or invitee to use certain common elements 
134         under certain circumstances; prohibiting a fine from 
135         being levied or a suspension from being imposed unless 
136         the association meets certain requirements for notice 
137         and provides an opportunity for a hearing; authorizing 
138         an association to suspend voting rights of a member 
139         due to nonpayment of assessments, fines, or other 
140         charges under certain circumstances; amending s. 
141         718.501, F.S.; specifying that the jurisdiction of the 
142         Division of Florida Condominiums, Timeshares, and 
143         Mobile Homes includes bulk assignees and bulk buyers; 
144         creating part VII of ch. 718, F.S.; creating the 
145         “Distressed Condominium Relief Act”; providing 
146         legislative findings and intent; defining the terms 
147         “bulk assignee” and “bulk buyer”; providing for the 
148         assignment of developer rights by a bulk assignee; 
149         specifying liabilities of bulk assignees and bulk 
150         buyers; providing exceptions; providing additional 
151         responsibilities of bulk assignees and bulk buyers; 
152         authorizing certain entities to assign developer 
153         rights to a bulk assignee; limiting the number of bulk 
154         assignees at any given time; providing for the 
155         transfer of control of a board of administration to 
156         unit owners; providing effects of such transfer on 
157         parcels acquired by a bulk assignee; providing 
158         obligations of a bulk assignee upon the transfer of 
159         control of a board of administration; requiring that a 
160         bulk assignee certify certain information in writing; 
161         providing for the resolution of a conflict between 
162         specified provisions of state law; providing that the 
163         failure of a bulk assignee or bulk buyer to comply 
164         with specified provisions of state law results in the 
165         loss of certain protections and exemptions; requiring 
166         that a bulk assignee or bulk buyer file certain 
167         information with the Division of Florida Condominiums, 
168         Timeshares, and Mobile Homes of the Department of 
169         Business and Professional Regulation before offering 
170         any units for sale or lease in excess of a specified 
171         term; requiring that a copy of such information be 
172         provided to a prospective purchaser or tenant; 
173         requiring that certain contracts and disclosure 
174         statements contain specified statements; requiring 
175         that a bulk assignee or bulk buyer comply with certain 
176         disclosure requirements; prohibiting a bulk assignee 
177         from authorizing certain actions on behalf of an 
178         association while the bulk assignee is in control of 
179         the board of administration of the association; 
180         requiring that a bulk assignee or bulk buyer comply 
181         with certain laws with respect to contracts entered 
182         into by the association while the bulk assignee or 
183         bulk buyer was in control of the board of 
184         administration; providing parcel owners with specified 
185         protections regarding certain contracts; requiring 
186         that a bulk buyer comply with certain requirements 
187         regarding the transfer of a parcel; prohibiting a 
188         person from being classified as a bulk assignee or 
189         bulk buyer unless condominium parcels were acquired 
190         before a specified date; providing that the assignment 
191         of developer rights to a bulk assignee does not 
192         release a developer from certain liabilities; amending 
193         s. 719.106, F.S.; providing for the filling of 
194         vacancies on the condominium board of administration; 
195         amending s. 719.1055, F.S.; providing an additional 
196         required provision in cooperative bylaws; deleting a 
197         provision prohibiting an association from foregoing 
198         the retrofitting with a fire sprinkler system of 
199         common areas in a high-rise building; prohibiting 
200         local authorities having jurisdiction from requiring 
201         retrofitting with a sprinkler system or other 
202         engineered lifesafety system before a specified date; 
203         providing requirements for a special meeting of unit 
204         owners which may be called every 3 years in order to 
205         vote to require retrofitting of the sprinkler system 
206         or other engineered lifesafety system; providing 
207         meeting notice requirements; amending s. 719.108, 
208         F.S.; providing a prioritized list for disbursement of 
209         payments received by an association; providing for a 
210         lien by an association on a condominium unit for 
211         certain fees and costs; providing procedures and 
212         notice requirements for the filing of a lien by an 
213         association; requiring a tenant in a unit owned by a 
214         person who is delinquent in the payment of a monetary 
215         obligation to the condominium association to pay rent 
216         to the association under certain circumstances; 
217         amending s. 720.303, F.S.; revising provisions 
218         relating to homeowners’ association board meetings, 
219         inspection and copying of records, and reserve 
220         accounts of budgets; expanding the list of association 
221         records that are not accessible to members and parcel 
222         owners; prohibiting certain association personnel from 
223         receiving a salary or compensation; providing 
224         exceptions; amending s. 720.304, F.S.; providing that 
225         a flagpole and any flagpole display are subject to 
226         certain codes and regulations; amending s. 720.305, 
227         F.S.; authorizing the association to suspend rights to 
228         use common areas and facilities if the member is 
229         delinquent on the payment of a monetary obligation due 
230         for a certain period of time; providing procedures and 
231         notice requirements for levying a fine or imposing a 
232         suspension; amending s. 720.306, F.S.; providing 
233         requirements for secret ballots; providing procedures 
234         for filling a vacancy on the board of directors; 
235         amending s. 720.3085, F.S.; requiring a tenant in a 
236         property owned by a person who is delinquent in the 
237         payment of a monetary obligation to the condominium 
238         association to pay rent to the association under 
239         certain circumstances; amending s. 720.31, F.S.; 
240         authorizing an association to enter into certain 
241         agreements to use lands or facilities; requiring that 
242         certain items be stated and fully described in the 
243         declaration; limiting an association’s power to enter 
244         into such agreements after a specified period 
245         following the recording of a declaration; requiring 
246         that certain agreements be approved by a specified 
247         percentage of voting interests of an association when 
248         the declaration is silent as to the authority of an 
249         association to enter into such agreement; authorizing 
250         an association to join with other associations or a 
251         master association under certain circumstances and for 
252         specified purposes; creating s. 720.315, F.S.; 
253         prohibiting the board of directors of a homeowners’ 
254         association from levying a special assessment before 
255         turnover of the association by the developer unless 
256         certain conditions are met; providing an effective 
257         date. 
258 
259  Be It Enacted by the Legislature of the State of Florida: 
260 
261         Section 1. Subsection (8) is added to section 399.02, 
262  Florida Statutes, to read: 
263         399.02 General requirements.— 
264         (8) Updates to the code requiring modifications for Phase 
265  II Firefighters’ Service on existing elevators, as amended into 
266  the Safety Code for Existing Elevators and Escalators, ASME 
267  A17.1 and A17.3, may not be enforced on elevators in 
268  condominiums, cooperatives, or multifamily residential buildings 
269  issued a certificate of occupancy by the local building 
270  authority as of July 1, 2008, for 5 years or until the elevator 
271  is replaced or requires major modification, whichever occurs 
272  first. This exception does not apply to a building for which a 
273  certificate of occupancy was issued after July 1, 2008. This 
274  exception does not prevent an elevator owner from requesting a 
275  variance from the applicable codes before or after the 
276  expiration of the 5-year term. This subsection does not prohibit 
277  the division from granting variances pursuant to s. 120.542. The 
278  division shall adopt rules to administer this subsection. 
279         Section 2. Subsection (7) of section 617.0721, Florida 
280  Statutes, is amended to read: 
281         617.0721 Voting by members.— 
282         (7) Subsections (1), (2), (5), and (6) do not apply to a 
283  corporation that is an association, as defined in s. 720.301, or 
284  a corporation regulated by chapter 718 or chapter 719. 
285         Section 3. Subsection (3) is added to section 617.0808, 
286  Florida Statutes, to read: 
287         617.0808 Removal of directors.— 
288         (3) This section does not apply to any corporation that is 
289  an association, as defined in s. 720.301, or a corporation 
290  regulated under chapter 718 or chapter 719. 
291         Section 4. Section 617.1606, Florida Statutes, is created 
292  to read: 
293         617.1606 Access to records.—Sections 617.1601-617.1605 do 
294  not apply to a corporation that is an association, as defined in 
295  s. 720.301, or a corporation regulated under chapter 718 or 
296  chapter 719. 
297         Section 5. Section 627.714, Florida Statutes, is created to 
298  read: 
299         627.714 Residential condominium unit owner coverage; loss 
300  assessment coverage required.— 
301         (1) For policies issued or renewed on or after July 1, 
302  2010, coverage under a unit owner’s residential property policy 
303  must include at least $2,000 in property loss assessment 
304  coverage for all assessments made as a result of the same direct 
305  loss to the property, regardless of the number of assessments, 
306  owned by all members of the association collectively if such 
307  loss is of the type of loss covered by the unit owner’s 
308  residential property insurance policy, to which a deductible of 
309  no more than $250 per direct property loss applies. If a 
310  deductible was or will be applied to other property loss 
311  sustained by the unit owner resulting from the same direct loss 
312  to the property, no deductible applies to the loss assessment 
313  coverage. 
314         (2) The maximum amount of any unit owner’s loss assessment 
315  coverage that can be assessed for any loss shall be an amount 
316  equal to that unit owner’s loss assessment coverage limit in 
317  effect one day before the date of the occurrence. Any changes to 
318  the limits of a unit owner’s coverage for loss assessments made 
319  on or after the day before the date of the occurrence are not 
320  applicable to such loss. 
321         (3) Regardless of the number of assessments, an insurer 
322  providing loss assessment coverage to a unit owner is not 
323  required to pay more than an amount equal to that unit owner’s 
324  loss assessment coverage limit as a result of the same direct 
325  loss to property. 
326         (4) Every individual unit owner’s residential property 
327  policy must contain a provision stating that the coverage 
328  afforded by such policy is excess coverage over the amount 
329  recoverable under any other policy covering the same property. 
330         Section 6. Subsection (13) is added to section 633.0215, 
331  Florida Statutes, to read: 
332         633.0215 Florida Fire Prevention Code.— 
333         (13) A condominium, cooperative, or multifamily residential 
334  building that is less than four stories in height and has a 
335  corridor providing an exterior means of egress is exempt from 
336  the requirement to install a manual fire alarm system under s. 
337  9.6 of the Life Safety Code adopted in the Florida Fire 
338  Prevention Code. 
339         Section 7. Subsection (16) of section 718.103, Florida 
340  Statutes, is amended to read: 
341         718.103 Definitions.—As used in this chapter, the term: 
342         (16) “Developer” means a person who creates a condominium 
343  or offers condominium parcels for sale or lease in the ordinary 
344  course of business, but does not include: 
345         (a) An owner or lessee of a condominium or cooperative unit 
346  who has acquired the unit for his or her own occupancy;, nor 
347  does it include 
348         (b) A cooperative association that which creates a 
349  condominium by conversion of an existing residential cooperative 
350  after control of the association has been transferred to the 
351  unit owners if, following the conversion, the unit owners are 
352  will be the same persons who were unit owners of the cooperative 
353  and no units are offered for sale or lease to the public as part 
354  of the plan of conversion;. 
355         (c) A bulk assignee or bulk buyer as defined in s. 718.703; 
356  or 
357         (d) A state, county, or municipal entity is not a developer 
358  for any purposes under this act when it is acting as a lessor 
359  and not otherwise named as a developer in the declaration of 
360  condominium association. 
361         Section 8. Subsection (13) of section 718.110, Florida 
362  Statutes, is amended, and subsection (14) is added to that 
363  section, to read: 
364         718.110 Amendment of declaration; correction of error or 
365  omission in declaration by circuit court.— 
366         (13) An Any amendment prohibiting restricting unit owners 
367  from renting their units or altering the duration of the rental 
368  term or specifying or limiting the number of times unit owners 
369  are entitled to rent their units during a specified period 
370  owners’ rights relating to the rental of units applies only to 
371  unit owners who consent to the amendment and unit owners who 
372  acquire title to purchase their units after the effective date 
373  of that amendment. 
374         (14) Except for those portions of the common elements 
375  designed and intended to be used by all unit owners, a portion 
376  of the common elements serving only one unit or a group of units 
377  may be reclassified as a limited common element upon the vote 
378  required to amend the declaration as provided therein or as 
379  required under paragraph (1)(a), and shall not be considered an 
380  amendment pursuant to subsection (4). This is a clarification of 
381  existing law. 
382         Section 9. Paragraphs (a), (b), (c), (d), (f), (g), (j), 
383  and (n) of subsection (11) and subsections (12) and (13) of 
384  section 718.111, Florida Statutes, are amended to read: 
385         718.111 The association.— 
386         (11) INSURANCE.—In order to protect the safety, health, and 
387  welfare of the people of the State of Florida and to ensure 
388  consistency in the provision of insurance coverage to 
389  condominiums and their unit owners, this subsection applies to 
390  every residential condominium in the state, regardless of the 
391  date of its declaration of condominium. It is the intent of the 
392  Legislature to encourage lower or stable insurance premiums for 
393  associations described in this subsection. 
394         (a) Adequate property hazard insurance, regardless of any 
395  requirement in the declaration of condominium for coverage by 
396  the association for full insurable value, replacement cost, or 
397  similar coverage, must shall be based on upon the replacement 
398  cost of the property to be insured as determined by an 
399  independent insurance appraisal or update of a prior appraisal. 
400  The replacement cost must full insurable value shall be 
401  determined at least once every 36 months. 
402         1. An association or group of associations may provide 
403  adequate property hazard insurance through a self-insurance fund 
404  that complies with the requirements of ss. 624.460-624.488. 
405         2. The association may also provide adequate property 
406  hazard insurance coverage for a group of at least no fewer than 
407  three communities created and operating under this chapter, 
408  chapter 719, chapter 720, or chapter 721 by obtaining and 
409  maintaining for such communities insurance coverage sufficient 
410  to cover an amount equal to the probable maximum loss for the 
411  communities for a 250-year windstorm event. Such probable 
412  maximum loss must be determined through the use of a competent 
413  model that has been accepted by the Florida Commission on 
414  Hurricane Loss Projection Methodology. A No policy or program 
415  providing such coverage may not shall be issued or renewed after 
416  July 1, 2008, unless it has been reviewed and approved by the 
417  Office of Insurance Regulation. The review and approval must 
418  shall include approval of the policy and related forms pursuant 
419  to ss. 627.410 and 627.411, approval of the rates pursuant to s. 
420  627.062, a determination that the loss model approved by the 
421  commission was accurately and appropriately applied to the 
422  insured structures to determine the 250-year probable maximum 
423  loss, and a determination that complete and accurate disclosure 
424  of all material provisions is provided to condominium unit 
425  owners before prior to execution of the agreement by a 
426  condominium association. 
427         3. When determining the adequate amount of property hazard 
428  insurance coverage, the association may consider deductibles as 
429  determined by this subsection. 
430         (b) If an association is a developer-controlled 
431  association, the association shall exercise its best efforts to 
432  obtain and maintain insurance as described in paragraph (a). 
433  Failure to obtain and maintain adequate property hazard 
434  insurance during any period of developer control constitutes a 
435  breach of fiduciary responsibility by the developer-appointed 
436  members of the board of directors of the association, unless the 
437  members can show that despite such failure, they have made their 
438  best efforts to maintain the required coverage. 
439         (c) Policies may include deductibles as determined by the 
440  board. 
441         1. The deductibles must shall be consistent with industry 
442  standards and prevailing practice for communities of similar 
443  size and age, and having similar construction and facilities in 
444  the locale where the condominium property is situated. 
445         2. The deductibles may be based upon available funds, 
446  including reserve accounts, or predetermined assessment 
447  authority at the time the insurance is obtained. 
448         3. The board shall establish the amount of deductibles 
449  based upon the level of available funds and predetermined 
450  assessment authority at a meeting of the board. Such meeting 
451  shall be open to all unit owners in the manner set forth in s. 
452  718.112(2)(e). The notice of such meeting must state the 
453  proposed deductible and the available funds and the assessment 
454  authority relied upon by the board and estimate any potential 
455  assessment amount against each unit, if any. The meeting 
456  described in this paragraph may be held in conjunction with a 
457  meeting to consider the proposed budget or an amendment thereto. 
458         (d) An association controlled by unit owners operating as a 
459  residential condominium shall use its best efforts to obtain and 
460  maintain adequate property insurance to protect the association, 
461  the association property, the common elements, and the 
462  condominium property that must is required to be insured by the 
463  association pursuant to this subsection. 
464         (f) Every property hazard insurance policy issued or 
465  renewed on or after January 1, 2009, for the purpose of 
466  protecting the condominium must shall provide primary coverage 
467  for: 
468         1. All portions of the condominium property as originally 
469  installed or replacement of like kind and quality, in accordance 
470  with the original plans and specifications. 
471         2. All alterations or additions made to the condominium 
472  property or association property pursuant to s. 718.113(2). 
473         3. The coverage must shall exclude all personal property 
474  within the unit or limited common elements, and floor, wall, and 
475  ceiling coverings, electrical fixtures, appliances, water 
476  heaters, water filters, built-in cabinets and countertops, and 
477  window treatments, including curtains, drapes, blinds, hardware, 
478  and similar window treatment components, or replacements of any 
479  of the foregoing which are located within the boundaries of the 
480  unit and serve only such unit. Such property and any insurance 
481  thereupon is the responsibility of the unit owner. 
482         (g) A condominium unit owner’s policy must conform to the 
483  requirements of s. 627.714. Every hazard insurance policy issued 
484  or renewed on or after January 1, 2009, to an individual unit 
485  owner must contain a provision stating that the coverage 
486  afforded by such policy is excess coverage over the amount 
487  recoverable under any other policy covering the same property. 
488  Such policies must include special assessment coverage of no 
489  less than $2,000 per occurrence. An insurance policy issued to 
490  an individual unit owner providing such coverage does not 
491  provide rights of subrogation against the condominium 
492  association operating the condominium in which such individual’s 
493  unit is located. 
494         1. All improvements or additions to the condominium 
495  property that benefit fewer than all unit owners shall be 
496  insured by the unit owner or owners having the use thereof, or 
497  may be insured by the association at the cost and expense of the 
498  unit owners having the use thereof. 
499         2. The association shall require each owner to provide 
500  evidence of a currently effective policy of hazard and liability 
501  insurance upon request, but not more than once per year. Upon 
502  the failure of an owner to provide a certificate of insurance 
503  issued by an insurer approved to write such insurance in this 
504  state within 30 days after the date on which a written request 
505  is delivered, the association may purchase a policy of insurance 
506  on behalf of an owner. The cost of such a policy, together with 
507  reconstruction costs undertaken by the association but which are 
508  the responsibility of the unit owner, may be collected in the 
509  manner provided for the collection of assessments in s. 718.116. 
510         1.3. All reconstruction work after a property casualty loss 
511  must shall be undertaken by the association except as otherwise 
512  authorized in this section. A unit owner may undertake 
513  reconstruction work on portions of the unit with the prior 
514  written consent of the board of administration. However, such 
515  work may be conditioned upon the approval of the repair methods, 
516  the qualifications of the proposed contractor, or the contract 
517  that is used for that purpose. A unit owner must shall obtain 
518  all required governmental permits and approvals before prior to 
519  commencing reconstruction. 
520         2.4. Unit owners are responsible for the cost of 
521  reconstruction of any portions of the condominium property for 
522  which the unit owner is required to carry property casualty 
523  insurance, and any such reconstruction work undertaken by the 
524  association is shall be chargeable to the unit owner and 
525  enforceable as an assessment pursuant to s. 718.116. The 
526  association must be an additional named insured and loss payee 
527  on all casualty insurance policies issued to unit owners in the 
528  condominium operated by the association. 
529         3.5. A multicondominium association may elect, by a 
530  majority vote of the collective members of the condominiums 
531  operated by the association, to operate the such condominiums as 
532  a single condominium for purposes of insurance matters, 
533  including, but not limited to, the purchase of the property 
534  hazard insurance required by this section and the apportionment 
535  of deductibles and damages in excess of coverage. The election 
536  to aggregate the treatment of insurance premiums, deductibles, 
537  and excess damages constitutes an amendment to the declaration 
538  of all condominiums operated by the association, and the costs 
539  of insurance must shall be stated in the association budget. The 
540  amendments must shall be recorded as required by s. 718.110. 
541         (j) Any portion of the condominium property that must 
542  required to be insured by the association against property 
543  casualty loss pursuant to paragraph (f) which is damaged by 
544  casualty shall be reconstructed, repaired, or replaced as 
545  necessary by the association as a common expense. All property 
546  hazard insurance deductibles, uninsured losses, and other 
547  damages in excess of property hazard insurance coverage under 
548  the property hazard insurance policies maintained by the 
549  association are a common expense of the condominium, except 
550  that: 
551         1. A unit owner is responsible for the costs of repair or 
552  replacement of any portion of the condominium property not paid 
553  by insurance proceeds, if such damage is caused by intentional 
554  conduct, negligence, or failure to comply with the terms of the 
555  declaration or the rules of the association by a unit owner, the 
556  members of his or her family, unit occupants, tenants, guests, 
557  or invitees, without compromise of the subrogation rights of the 
558  any insurer as set forth in paragraph (g). 
559         2. The provisions of subparagraph 1. regarding the 
560  financial responsibility of a unit owner for the costs of 
561  repairing or replacing other portions of the condominium 
562  property also apply to the costs of repair or replacement of 
563  personal property of other unit owners or the association, as 
564  well as other property, whether real or personal, which the unit 
565  owners are required to insure under paragraph (g). 
566         3. To the extent the cost of repair or reconstruction for 
567  which the unit owner is responsible under this paragraph is 
568  reimbursed to the association by insurance proceeds, and, to the 
569  extent the association has collected the cost of such repair or 
570  reconstruction from the unit owner, the association shall 
571  reimburse the unit owner without the waiver of any rights of 
572  subrogation. 
573         4. The association is not obligated to pay for 
574  reconstruction or repairs of property casualty losses as a 
575  common expense if the property casualty losses were known or 
576  should have been known to a unit owner and were not reported to 
577  the association until after the insurance claim of the 
578  association for that property casualty was settled or resolved 
579  with finality, or denied because on the basis that it was 
580  untimely filed. 
581         (n) The association is not obligated to pay for any 
582  reconstruction or repair expenses due to property casualty loss 
583  to any improvements installed by a current or former owner of 
584  the unit or by the developer if the improvement benefits only 
585  the unit for which it was installed and is not part of the 
586  standard improvements installed by the developer on all units as 
587  part of original construction, whether or not such improvement 
588  is located within the unit. This paragraph does not relieve any 
589  party of its obligations regarding recovery due under any 
590  insurance implemented specifically for any such improvements. 
591         (12) OFFICIAL RECORDS.— 
592         (a) From the inception of the association, the association 
593  shall maintain each of the following items, if when applicable, 
594  which shall constitute the official records of the association: 
595         1. A copy of the plans, permits, warranties, and other 
596  items provided by the developer pursuant to s. 718.301(4). 
597         2. A photocopy of the recorded declaration of condominium 
598  of each condominium operated by the association and of each 
599  amendment to each declaration. 
600         3. A photocopy of the recorded bylaws of the association 
601  and of each amendment to the bylaws. 
602         4. A certified copy of the articles of incorporation of the 
603  association, or other documents creating the association, and of 
604  each amendment thereto. 
605         5. A copy of the current rules of the association. 
606         6. A book or books which contain the minutes of all 
607  meetings of the association, of the board of administration, and 
608  of unit owners, which minutes must shall be retained for at 
609  least a period of not less than 7 years. 
610         7. A current roster of all unit owners and their mailing 
611  addresses, unit identifications, voting certifications, and, if 
612  known, telephone numbers. The association shall also maintain 
613  the electronic mailing addresses and the numbers designated by 
614  unit owners for receiving notice sent by electronic transmission 
615  of those unit owners consenting to receive notice by electronic 
616  transmission. The electronic mailing addresses and telephone 
617  numbers must provided by unit owners to receive notice by 
618  electronic transmission shall be removed from association 
619  records if when consent to receive notice by electronic 
620  transmission is revoked. However, the association is not liable 
621  for an erroneous disclosure of the electronic mail address or 
622  the number for receiving electronic transmission of notices. 
623         8. All current insurance policies of the association and 
624  condominiums operated by the association. 
625         9. A current copy of any management agreement, lease, or 
626  other contract to which the association is a party or under 
627  which the association or the unit owners have an obligation or 
628  responsibility. 
629         10. Bills of sale or transfer for all property owned by the 
630  association. 
631         11. Accounting records for the association and separate 
632  accounting records for each condominium which the association 
633  operates. All accounting records shall be maintained for at 
634  least a period of not less than 7 years. Any person who 
635  knowingly or intentionally defaces or destroys accounting 
636  records required to be created and maintained by this chapter 
637  during the period for which such records are required to be 
638  maintained, or who knowingly or intentionally fails to create or 
639  maintain such accounting records required to be maintained by 
640  this chapter, with the intent of causing harm to the association 
641  or one or more of its members, is personally subject to a civil 
642  penalty pursuant to s. 718.501(1)(d). The accounting records 
643  must shall include, but are not limited to: 
644         a. Accurate, itemized, and detailed records of all receipts 
645  and expenditures. 
646         b. A current account and a monthly, bimonthly, or quarterly 
647  statement of the account for each unit designating the name of 
648  the unit owner, the due date and amount of each assessment, the 
649  amount paid upon the account, and the balance due. 
650         c. All audits, reviews, accounting statements, and 
651  financial reports of the association or condominium. 
652         d. All contracts for work to be performed. Bids for work to 
653  be performed are shall also be considered official records and 
654  must shall be maintained by the association. 
655         12. Ballots, sign-in sheets, voting proxies, and all other 
656  papers relating to voting by unit owners, which must shall be 
657  maintained for a period of 1 year from the date of the election, 
658  vote, or meeting to which the document relates, notwithstanding 
659  paragraph (b). 
660         13. All rental records if, when the association is acting 
661  as agent for the rental of condominium units. 
662         14. A copy of the current question and answer sheet as 
663  described in by s. 718.504. 
664         15. All other records of the association not specifically 
665  included in the foregoing which are related to the operation of 
666  the association. 
667         16. A copy of the inspection report as provided for in s. 
668  718.301(4)(p). 
669         (b) The official records of the association must shall be 
670  maintained within the state for at least 7 years. The records of 
671  the association shall be made available to a unit owner within 
672  45 miles of the condominium property or within the county in 
673  which the condominium property is located within 5 working days 
674  after receipt of a written request by the board or its designee. 
675  However, such distance requirement does not apply to an 
676  association governing a timeshare condominium. This paragraph 
677  may be complied with by having a copy of the official records of 
678  the association available for inspection or copying on the 
679  condominium property or association property, or the association 
680  may offer the option of making the records of the association 
681  available to a unit owner either electronically via the Internet 
682  or by allowing the records to be viewed in electronic format on 
683  a computer screen and printed upon request. The association is 
684  not responsible for the use or misuse of the information 
685  provided to an association member or his or her authorized 
686  representative pursuant to the compliance requirements of this 
687  chapter unless the association has an affirmative duty not to 
688  disclose such information pursuant to this chapter. 
689         (c) The official records of the association are open to 
690  inspection by any association member or the authorized 
691  representative of such member at all reasonable times. The right 
692  to inspect the records includes the right to make or obtain 
693  copies, at the reasonable expense, if any, of the association 
694  member. The association may adopt reasonable rules regarding the 
695  frequency, time, location, notice, and manner of record 
696  inspections and copying. The failure of an association to 
697  provide the records within 10 working days after receipt of a 
698  written request creates shall create a rebuttable presumption 
699  that the association willfully failed to comply with this 
700  paragraph. A unit owner who is denied access to official records 
701  is entitled to the actual damages or minimum damages for the 
702  association’s willful failure to comply with this paragraph. The 
703  Minimum damages shall be $50 per calendar day up to 10 days, the 
704  calculation to begin on the 11th working day after receipt of 
705  the written request. The failure to permit inspection of the 
706  association records as provided herein entitles any person 
707  prevailing in an enforcement action to recover reasonable 
708  attorney’s fees from the person in control of the records who, 
709  directly or indirectly, knowingly denied access to the records 
710  for inspection. Any person who knowingly or intentionally 
711  defaces or destroys accounting records that are required by this 
712  chapter to be maintained during the period for which such 
713  records are required to be maintained, or who knowingly or 
714  intentionally fails to create or maintain accounting records 
715  that are required to be created or maintained by this chapter, 
716  with the intent of causing harm to the association or one or 
717  more of its members, is personally subject to a civil penalty 
718  pursuant to s. 718.501(1)(d). The association shall maintain an 
719  adequate number of copies of the declaration, articles of 
720  incorporation, bylaws, and rules, and all amendments to each of 
721  the foregoing, as well as the question and answer sheet provided 
722  for in s. 718.504 and year-end financial information required in 
723  this section, on the condominium property to ensure their 
724  availability to unit owners and prospective purchasers, and may 
725  charge its actual costs for preparing and furnishing these 
726  documents to those requesting the documents same. 
727  Notwithstanding the provisions of this paragraph, the following 
728  records are shall not be accessible to unit owners: 
729         1. Any record protected by the lawyer-client privilege as 
730  described in s. 90.502; and any record protected by the work 
731  product privilege, including any record prepared by an 
732  association attorney or prepared at the attorney’s express 
733  direction; which reflects a mental impression, conclusion, 
734  litigation strategy, or legal theory of the attorney or the 
735  association, and which was prepared exclusively for civil or 
736  criminal litigation or for adversarial administrative 
737  proceedings, or which was prepared in anticipation of imminent 
738  civil or criminal litigation or imminent adversarial 
739  administrative proceedings until the conclusion of the 
740  litigation or adversarial administrative proceedings. 
741         2. Information obtained by an association in connection 
742  with the approval of the lease, sale, or other transfer of a 
743  unit. 
744         3. Personnel records of association employees, including, 
745  but not limited to, disciplinary, payroll, health, and insurance 
746  records. 
747         4.3. Medical records of unit owners. 
748         5.4. Social security numbers, driver’s license numbers, 
749  credit card numbers, e-mail addresses, telephone numbers, 
750  emergency contact information, any addresses of a unit owner 
751  other than as provided to fulfill the association’s notice 
752  requirements, and other personal identifying information of any 
753  person, excluding the person’s name, unit designation, mailing 
754  address, and property address. 
755         6. Any electronic security measure that is used by the 
756  association to safeguard data, including passwords. 
757         7. The software and operating system used by the 
758  association which allows manipulation of data, even if the owner 
759  owns a copy of the same software used by the association. The 
760  data is part of the official records of the association. 
761         (13) FINANCIAL REPORTING.—Within 90 days after the end of 
762  the fiscal year, or annually on a date provided in the bylaws, 
763  the association shall prepare and complete, or contract for the 
764  preparation and completion of, a financial report for the 
765  preceding fiscal year. Within 21 days after the final financial 
766  report is completed by the association or received from the 
767  third party, but not later than 120 days after the end of the 
768  fiscal year or other date as provided in the bylaws, the 
769  association shall mail to each unit owner at the address last 
770  furnished to the association by the unit owner, or hand deliver 
771  to each unit owner, a copy of the financial report or a notice 
772  that a copy of the financial report will be mailed or hand 
773  delivered to the unit owner, without charge, upon receipt of a 
774  written request from the unit owner. The division shall adopt 
775  rules setting forth uniform accounting principles and standards 
776  to be used by all associations and shall adopt rules addressing 
777  the financial reporting requirements for multicondominium 
778  associations. The rules must shall include, but not be limited 
779  to, standards for presenting a summary of association reserves, 
780  including a good faith estimate disclosing the annual amount of 
781  reserve funds that would be necessary for the association to 
782  fully fund reserves for each reserve item based on the straight 
783  line accounting method. This disclosure is not applicable to 
784  reserves funded via the pooling method. uniform accounting 
785  principles and standards for stating the disclosure of at least 
786  a summary of the reserves, including information as to whether 
787  such reserves are being funded at a level sufficient to prevent 
788  the need for a special assessment and, if not, the amount of 
789  assessments necessary to bring the reserves up to the level 
790  necessary to avoid a special assessment. The person preparing 
791  the financial reports shall be entitled to rely on an inspection 
792  report prepared for or provided to the association to meet the 
793  fiscal and fiduciary standards of this chapter. In adopting such 
794  rules, the division shall consider the number of members and 
795  annual revenues of an association. Financial reports shall be 
796  prepared as follows: 
797         (a) An association that meets the criteria of this 
798  paragraph shall prepare or cause to be prepared a complete set 
799  of financial statements in accordance with generally accepted 
800  accounting principles. The financial statements must shall be 
801  based upon the association’s total annual revenues, as follows: 
802         1. An association with total annual revenues of $100,000 or 
803  more, but less than $200,000, shall prepare compiled financial 
804  statements. 
805         2. An association with total annual revenues of at least 
806  $200,000, but less than $400,000, shall prepare reviewed 
807  financial statements. 
808         3. An association with total annual revenues of $400,000 or 
809  more shall prepare audited financial statements. 
810         (b)1. An association with total annual revenues of less 
811  than $100,000 shall prepare a report of cash receipts and 
812  expenditures. 
813         2. An association that which operates fewer less than 75 50 
814  units, regardless of the association’s annual revenues, shall 
815  prepare a report of cash receipts and expenditures in lieu of 
816  financial statements required by paragraph (a). 
817         3. A report of cash receipts and disbursements must 
818  disclose the amount of receipts by accounts and receipt 
819  classifications and the amount of expenses by accounts and 
820  expense classifications, including, but not limited to, the 
821  following, as applicable: costs for security, professional and 
822  management fees and expenses, taxes, costs for recreation 
823  facilities, expenses for refuse collection and utility services, 
824  expenses for lawn care, costs for building maintenance and 
825  repair, insurance costs, administration and salary expenses, and 
826  reserves accumulated and expended for capital expenditures, 
827  deferred maintenance, and any other category for which the 
828  association maintains reserves. 
829         (c) An association may prepare or cause to be prepared, 
830  without a meeting of or approval by the unit owners: 
831         1. Compiled, reviewed, or audited financial statements, if 
832  the association is required to prepare a report of cash receipts 
833  and expenditures; 
834         2. Reviewed or audited financial statements, if the 
835  association is required to prepare compiled financial 
836  statements; or 
837         3. Audited financial statements if the association is 
838  required to prepare reviewed financial statements. 
839         (d) If approved by a majority of the voting interests 
840  present at a properly called meeting of the association, an 
841  association may prepare or cause to be prepared: 
842         1. A report of cash receipts and expenditures in lieu of a 
843  compiled, reviewed, or audited financial statement; 
844         2. A report of cash receipts and expenditures or a compiled 
845  financial statement in lieu of a reviewed or audited financial 
846  statement; or 
847         3. A report of cash receipts and expenditures, a compiled 
848  financial statement, or a reviewed financial statement in lieu 
849  of an audited financial statement. 
850 
851  Such meeting and approval must occur before prior to the end of 
852  the fiscal year and is effective only for the fiscal year in 
853  which the vote is taken, except that the approval may also may 
854  be effective for the following fiscal year. With respect to an 
855  association to which the developer has not turned over control 
856  of the association, all unit owners, including the developer, 
857  may vote on issues related to the preparation of financial 
858  reports for the first 2 fiscal years of the association’s 
859  operation, beginning with the fiscal year in which the 
860  declaration is recorded. Thereafter, all unit owners except the 
861  developer may vote on such issues until control is turned over 
862  to the association by the developer. Any audit or review 
863  prepared under this section shall be paid for by the developer 
864  if done before prior to turnover of control of the association. 
865  An association may not waive the financial reporting 
866  requirements of this section for more than 3 consecutive years. 
867         Section 10. Paragraphs (d), (l), (n), and (o) of subsection 
868  (2) of section 718.112, Florida Statutes, are amended to read: 
869         718.112 Bylaws.— 
870         (2) REQUIRED PROVISIONS.—The bylaws shall provide for the 
871  following and, if they do not do so, shall be deemed to include 
872  the following: 
873         (d) Unit owner meetings.— 
874         1. There shall be An annual meeting of the unit owners 
875  shall be held at the location provided in the association bylaws 
876  and, if the bylaws are silent as to the location, the meeting 
877  shall be held within 45 miles of the condominium property. 
878  However, such distance requirement does not apply to an 
879  association governing a timeshare condominium. Unless the bylaws 
880  provide otherwise, a vacancy on the board caused by the 
881  expiration of a director’s term shall be filled by electing a 
882  new board member, and the election must shall be by secret 
883  ballot.; However, if the number of vacancies equals or exceeds 
884  the number of candidates, an no election is not required. Except 
885  in a timeshare condominium, the terms of all members of the 
886  board shall expire at the annual meeting and such board members 
887  may stand for reelection unless otherwise permitted by the 
888  bylaws. If In the event that the bylaws permit staggered terms 
889  of no more than 2 years and upon approval of a majority of the 
890  total voting interests, the association board members may serve 
891  2-year staggered terms. If the number of board members whose 
892  terms have expired exceeds the number of eligible members 
893  showing interest in or demonstrating an intention to run for the 
894  vacant positions no person is interested in or demonstrates an 
895  intention to run for the position of a board member whose term 
896  has expired according to the provisions of this subparagraph, 
897  each such board member whose term has expired is eligible for 
898  reappointment shall be automatically reappointed to the board of 
899  administration and need not stand for reelection. In a 
900  condominium association of more than 10 units or in a 
901  condominium association that does not include timeshare units or 
902  timeshare interests, coowners of a unit may not serve as members 
903  of the board of directors at the same time unless they own more 
904  than one unit or unless there are not enough eligible candidates 
905  to fill the vacancies on the board at the time of the vacancy. 
906  Any unit owner desiring to be a candidate for board membership 
907  must shall comply with sub-subparagraph subparagraph 3.a. A 
908  person who has been suspended or removed by the division under 
909  this chapter, or who is delinquent in the payment of any fee, 
910  fine, or special or regular assessment as provided in paragraph 
911  (n), is not eligible for board membership. A person who has been 
912  convicted of any felony in this state or in a United States 
913  District or Territorial Court, or who has been convicted of any 
914  offense in another jurisdiction that would be considered a 
915  felony if committed in this state, is not eligible for board 
916  membership unless such felon’s civil rights have been restored 
917  for at least a period of no less than 5 years as of the date on 
918  which such person seeks election to the board. The validity of 
919  an action by the board is not affected if it is later determined 
920  that a member of the board is ineligible for board membership 
921  due to having been convicted of a felony. 
922         2. The bylaws must shall provide the method of calling 
923  meetings of unit owners, including annual meetings. Written 
924  notice, which notice must include an agenda, shall be mailed, 
925  hand delivered, or electronically transmitted to each unit owner 
926  at least 14 days before prior to the annual meeting and must 
927  shall be posted in a conspicuous place on the condominium 
928  property at least 14 continuous days preceding the annual 
929  meeting. Upon notice to the unit owners, the board shall, by 
930  duly adopted rule, designate a specific location on the 
931  condominium property or association property upon which all 
932  notices of unit owner meetings shall be posted.; However, if 
933  there is no condominium property or association property upon 
934  which notices can be posted, this requirement does not apply. In 
935  lieu of or in addition to the physical posting of meeting 
936  notices notice of any meeting of the unit owners on the 
937  condominium property, the association may, by reasonable rule, 
938  adopt a procedure for conspicuously posting and repeatedly 
939  broadcasting the notice and the agenda on a closed-circuit cable 
940  television system serving the condominium association. However, 
941  if broadcast notice is used in lieu of a notice posted 
942  physically on the condominium property, the notice and agenda 
943  must be broadcast at least four times every broadcast hour of 
944  each day that a posted notice is otherwise required under this 
945  section. If When broadcast notice is provided, the notice and 
946  agenda must be broadcast in a manner and for a sufficient 
947  continuous length of time so as to allow an average reader to 
948  observe the notice and read and comprehend the entire content of 
949  the notice and the agenda. Unless a unit owner waives in writing 
950  the right to receive notice of the annual meeting, such notice 
951  must shall be hand delivered, mailed, or electronically 
952  transmitted to each unit owner. Notice for meetings and notice 
953  for all other purposes must shall be mailed to each unit owner 
954  at the address last furnished to the association by the unit 
955  owner, or hand delivered to each unit owner. However, if a unit 
956  is owned by more than one person, the association shall provide 
957  notice, for meetings and all other purposes, to that one address 
958  which the developer initially identifies for that purpose and 
959  thereafter as one or more of the owners of the unit shall so 
960  advise the association in writing, or if no address is given or 
961  the owners of the unit do not agree, to the address provided on 
962  the deed of record. An officer of the association, or the 
963  manager or other person providing notice of the association 
964  meeting, shall provide an affidavit or United States Postal 
965  Service certificate of mailing, to be included in the official 
966  records of the association affirming that the notice was mailed 
967  or hand delivered, in accordance with this provision. 
968         3. The members of the board shall be elected by written 
969  ballot or voting machine. Proxies may not shall in no event be 
970  used in electing the board, either in general elections or 
971  elections to fill vacancies caused by recall, resignation, or 
972  otherwise, unless otherwise provided in this chapter. 
973         a. At least Not less than 60 days before a scheduled 
974  election, the association shall mail, deliver, or electronically 
975  transmit, whether by separate association mailing or included in 
976  another association mailing, delivery, or transmission, 
977  including regularly published newsletters, to each unit owner 
978  entitled to a vote, a first notice of the date of the election 
979  along with a certification form provided by the division 
980  attesting that he or she has read and understands, to the best 
981  of his or her ability, the governing documents of the 
982  association and the provisions of this chapter and any 
983  applicable rules. Any unit owner or other eligible person 
984  desiring to be a candidate for the board must give written 
985  notice of his or her intent to be a candidate to the association 
986  at least not less than 40 days before a scheduled election. 
987  Together with the written notice and agenda as set forth in 
988  subparagraph 2., the association shall mail, deliver, or 
989  electronically transmit a second notice of the election to all 
990  unit owners entitled to vote therein, together with a ballot 
991  that lists which shall list all candidates. Upon request of a 
992  candidate, the association shall include an information sheet, 
993  no larger than 8 1/2 inches by 11 inches, which must be 
994  furnished by the candidate at least not less than 35 days before 
995  the election, must along with the signed certification form 
996  provided for in this subparagraph, to be included with the 
997  mailing, delivery, or transmission of the ballot, with the costs 
998  of mailing, delivery, or electronic transmission and copying to 
999  be borne by the association. The association is not liable for 
1000  the contents of the information sheets prepared by the 
1001  candidates. In order to reduce costs, the association may print 
1002  or duplicate the information sheets on both sides of the paper. 
1003  The division shall by rule establish voting procedures 
1004  consistent with this sub-subparagraph the provisions contained 
1005  herein, including rules establishing procedures for giving 
1006  notice by electronic transmission and rules providing for the 
1007  secrecy of ballots. Elections shall be decided by a plurality of 
1008  those ballots cast. There is shall be no quorum requirement; 
1009  however, at least 20 percent of the eligible voters must cast a 
1010  ballot in order to have a valid election of members of the 
1011  board. A No unit owner may not shall permit any other person to 
1012  vote his or her ballot, and any such ballots improperly cast are 
1013  shall be deemed invalid, provided any unit owner who violates 
1014  this provision may be fined by the association in accordance 
1015  with s. 718.303. A unit owner who needs assistance in casting 
1016  the ballot for the reasons stated in s. 101.051 may obtain such 
1017  assistance in casting the ballot. The regular election must 
1018  shall occur on the date of the annual meeting. The provisions of 
1019  This sub-subparagraph does subparagraph shall not apply to 
1020  timeshare condominium associations. Notwithstanding the 
1021  provisions of this sub-subparagraph subparagraph, an election is 
1022  not required unless more candidates file notices of intent to 
1023  run or are nominated than board vacancies exist. 
1024         b. Within 90 days after being elected or appointed to the 
1025  board, each newly elected or appointed director shall certify in 
1026  writing to the secretary of the association that he or she has 
1027  read the association’s declaration of condominium, articles of 
1028  incorporation, bylaws, and current written policies; that he or 
1029  she will work to uphold such documents and policies to the best 
1030  of his or her ability; and that he or she will faithfully 
1031  discharge his or her fiduciary responsibility to the 
1032  association’s members. In lieu of this written certification, 
1033  the newly elected or appointed director may submit a certificate 
1034  of satisfactory completion of the educational curriculum 
1035  administered by a division-approved condominium education 
1036  provider. A director who fails to timely file the written 
1037  certification or educational certificate is suspended from 
1038  service on the board until he or she complies with this sub 
1039  subparagraph. The board may temporarily fill the vacancy during 
1040  the period of suspension. The secretary shall cause the 
1041  association to retain a director’s written certification or 
1042  educational certificate for inspection by the members for 5 
1043  years after a director’s election. Failure to have such written 
1044  certification or educational certificate on file does not affect 
1045  the validity of any action. 
1046         4. Any approval by unit owners called for by this chapter 
1047  or the applicable declaration or bylaws, including, but not 
1048  limited to, the approval requirement in s. 718.111(8), shall be 
1049  made at a duly noticed meeting of unit owners and is shall be 
1050  subject to all requirements of this chapter or the applicable 
1051  condominium documents relating to unit owner decisionmaking, 
1052  except that unit owners may take action by written agreement, 
1053  without meetings, on matters for which action by written 
1054  agreement without meetings is expressly allowed by the 
1055  applicable bylaws or declaration or any statute that provides 
1056  for such action. 
1057         5. Unit owners may waive notice of specific meetings if 
1058  allowed by the applicable bylaws or declaration or any statute. 
1059  If authorized by the bylaws, notice of meetings of the board of 
1060  administration, unit owner meetings, except unit owner meetings 
1061  called to recall board members under paragraph (j), and 
1062  committee meetings may be given by electronic transmission to 
1063  unit owners who consent to receive notice by electronic 
1064  transmission. 
1065         6. Unit owners shall have the right to participate in 
1066  meetings of unit owners with reference to all designated agenda 
1067  items. However, the association may adopt reasonable rules 
1068  governing the frequency, duration, and manner of unit owner 
1069  participation. 
1070         7. Any unit owner may tape record or videotape a meeting of 
1071  the unit owners subject to reasonable rules adopted by the 
1072  division. 
1073         8. Unless otherwise provided in the bylaws, any vacancy 
1074  occurring on the board before the expiration of a term may be 
1075  filled by the affirmative vote of the majority of the remaining 
1076  directors, even if the remaining directors constitute less than 
1077  a quorum, or by the sole remaining director. In the alternative, 
1078  a board may hold an election to fill the vacancy, in which case 
1079  the election procedures must conform to the requirements of sub 
1080  subparagraph subparagraph 3.a. unless the association governs 10 
1081  units or fewer less and has opted out of the statutory election 
1082  process, in which case the bylaws of the association control. 
1083  Unless otherwise provided in the bylaws, a board member 
1084  appointed or elected under this section shall fill the vacancy 
1085  for the unexpired term of the seat being filled. Filling 
1086  vacancies created by recall is governed by paragraph (j) and 
1087  rules adopted by the division. 
1088 
1089  Notwithstanding subparagraph subparagraphs (b)2. and sub 
1090  subparagraph (d)3.a., an association of 10 or fewer units may, 
1091  by the affirmative vote of a majority of the total voting 
1092  interests, provide for different voting and election procedures 
1093  in its bylaws, which vote may be by a proxy specifically 
1094  delineating the different voting and election procedures. The 
1095  different voting and election procedures may provide for 
1096  elections to be conducted by limited or general proxy. 
1097         (l) Certificate of compliance.—There shall be A provision 
1098  that a certificate of compliance from a licensed electrical 
1099  contractor or electrician may be accepted by the association’s 
1100  board as evidence of compliance of the condominium units with 
1101  the applicable fire and life safety code must be included. 
1102  Notwithstanding the provisions of chapter 633 or of any other 
1103  code, statute, ordinance, administrative rule, or regulation, or 
1104  any interpretation of the foregoing, an association, 
1105  condominium, or unit owner is not obligated to retrofit the 
1106  common elements, association property, or units of a residential 
1107  condominium with a fire sprinkler system or other engineered 
1108  lifesafety system in a building that has been certified for 
1109  occupancy by the applicable governmental entity, if the unit 
1110  owners have voted to forego such retrofitting and engineered 
1111  lifesafety system by the affirmative vote of a majority two 
1112  thirds of all voting interests in the affected condominium. 
1113  However, a condominium association may not vote to forego the 
1114  retrofitting with a fire sprinkler system of common areas in a 
1115  high-rise building. For purposes of this subsection, the term 
1116  “high-rise building” means a building that is greater than 75 
1117  feet in height where the building height is measured from the 
1118  lowest level of fire department access to the floor of the 
1119  highest occupiable story. For purposes of this subsection, the 
1120  term “common areas” means any enclosed hallway, corridor, lobby, 
1121  stairwell, or entryway. In no event shall The local authority 
1122  having jurisdiction may not require completion of retrofitting 
1123  of common areas with a fire sprinkler system before the end of 
1124  2019 2014. By December 31, 2016, an association that is not in 
1125  compliance with the requirements for a fire sprinkler system and 
1126  has not voted to forego retrofitting of such a system must 
1127  initiate an application for a building permit for the required 
1128  installation with the local government having jurisdiction 
1129  demonstrating that the association will become compliant by 
1130  December 31, 2019. 
1131         1.� A vote to forego retrofitting may be obtained by limited 
1132  proxy or by a ballot personally cast at a duly called membership 
1133  meeting, or by execution of a written consent by the member, and 
1134  is shall be effective upon the recording of a certificate 
1135  attesting to such vote in the public records of the county where 
1136  the condominium is located. The association shall mail or, hand 
1137  deliver, or electronically transmit to each unit owner written 
1138  notice at least 14 days before the prior to such membership 
1139  meeting in which the vote to forego retrofitting of the required 
1140  fire sprinkler system is to take place. Within 30 days after the 
1141  association’s opt-out vote, notice of the results of the opt-out 
1142  vote must shall be mailed or, hand delivered, or electronically 
1143  transmitted to all unit owners. Evidence of compliance with this 
1144  30-day notice requirement must shall be made by an affidavit 
1145  executed by the person providing the notice and filed among the 
1146  official records of the association. After such notice is 
1147  provided to each owner, a copy must of such notice shall be 
1148  provided by the current owner to a new owner before prior to 
1149  closing and shall be provided by a unit owner to a renter before 
1150  prior to signing a lease. 
1151         2. If there has been a previous vote to forego 
1152  retrofitting, a vote to require retrofitting may be obtained at 
1153  a special meeting of the unit owners called by a petition of at 
1154  least 10 percent of the voting interests. Such a vote may only 
1155  be called once every 3 years. Notice shall be provided as 
1156  required for any regularly called meeting of the unit owners, 
1157  and must state the purpose of the meeting. Electronic 
1158  transmission may not be used to provide notice of a meeting 
1159  called in whole or in part for this purpose. 
1160         3.2. As part of the information collected annually from 
1161  condominiums, the division shall require condominium 
1162  associations to report the membership vote and recording of a 
1163  certificate under this subsection and, if retrofitting has been 
1164  undertaken, the per-unit cost of such work. The division shall 
1165  annually report to the Division of State Fire Marshal of the 
1166  Department of Financial Services the number of condominiums that 
1167  have elected to forego retrofitting. 
1168         4. Notwithstanding s. 553.509, an association may not be 
1169  obligated to, and may forego the retrofitting of, any 
1170  improvements required by s. 553.509(2) upon an affirmative vote 
1171  of a majority of the voting interests in the affected 
1172  condominium. 
1173         (n) Director or officer delinquencies.—A director or 
1174  officer more than 90 days delinquent in the payment of any 
1175  monetary obligation due the association regular assessments 
1176  shall be deemed to have abandoned the office, creating a vacancy 
1177  in the office to be filled according to law. 
1178         (o) Director or officer offenses.—A director or officer 
1179  charged by information or indictment with a felony theft or 
1180  embezzlement offense involving the association’s funds or 
1181  property must shall be removed from office, creating a vacancy 
1182  in the office to be filled according to law until the end of the 
1183  period of the suspension or the end of the director’s term of 
1184  office, whichever occurs first. While such director or officer 
1185  has such criminal charge pending, he or she may not be appointed 
1186  or elected to a position as a director or officer. However, if 
1187  should the charges are be resolved without a finding of guilt, 
1188  the director or officer shall be reinstated for the remainder of 
1189  his or her term of office, if any. 
1190         Section 11. Paragraph (d) of subsection (1) of section 
1191  718.115, Florida Statutes, is amended to read: 
1192         718.115 Common expenses and common surplus.— 
1193         (1) 
1194         (d) If so provided in the declaration, the cost of 
1195  communications services as defined in chapter 202, information 
1196  services, or Internet services a master antenna television 
1197  system or duly franchised cable television service obtained 
1198  pursuant to a bulk contract is shall be deemed a common expense. 
1199  If the declaration does not provide for the cost of such 
1200  services a master antenna television system or duly franchised 
1201  cable television service obtained under a bulk contract as a 
1202  common expense, the board may enter into such a contract, and 
1203  the cost of the service will be a common expense. The cost for 
1204  the services under a bulk-rate contract may be but allocated on 
1205  a per-unit basis rather than a percentage basis if the 
1206  declaration provides for other than an equal sharing of common 
1207  expenses, and any contract entered into before July 1, 1998, in 
1208  which the cost of the service is not equally divided among all 
1209  unit owners, may be changed by vote of a majority of the voting 
1210  interests present at a regular or special meeting of the 
1211  association, to allocate the cost equally among all units. The 
1212  contract must be for at least shall be for a term of not less 
1213  than 2 years. 
1214         1. Any contract made by the board on or after July 1, 1998, 
1215  the effective date hereof for a community antenna system or duly 
1216  franchised cable television service may be canceled by a 
1217  majority of the voting interests present at the next regular or 
1218  special meeting of the association. Any member may make a motion 
1219  to cancel the said contract, but if no motion is made or if such 
1220  motion fails to obtain the required majority at the next regular 
1221  or special meeting, whichever occurs first is sooner, following 
1222  the making of the contract, then such contract shall be deemed 
1223  ratified for the term therein expressed. 
1224         2. Any Such contract must shall provide, and is shall be 
1225  deemed to provide if not expressly set forth, that any hearing 
1226  impaired or legally blind unit owner who does not occupy the 
1227  unit with a non-hearing-impaired or sighted person, or any unit 
1228  owner receiving supplemental security income under Title XVI of 
1229  the Social Security Act or food stamps as administered by the 
1230  Department of Children and Family Services pursuant to s. 
1231  414.31, may discontinue the cable or video service without 
1232  incurring disconnect fees, penalties, or subsequent service 
1233  charges, and, as to such units, the owners are shall not be 
1234  required to pay any common expenses charge related to such 
1235  service. If fewer less than all members of an association share 
1236  the expenses of cable or video service television, the expense 
1237  shall be shared equally by all participating unit owners. The 
1238  association may use the provisions of s. 718.116 to enforce 
1239  payment of the shares of such costs by the unit owners receiving 
1240  cable or video service television. 
1241         Section 12. Paragraph (b) of subsection (1), subsection 
1242  (3), and paragraph (b) of subsection (5) of section 718.116, 
1243  Florida Statutes, are amended, and subsection (11) is added to 
1244  that section, to read: 
1245         718.116 Assessments; liability; lien and priority; 
1246  interest; collection.— 
1247         (1) 
1248         (b) The liability of a first mortgagee or its successor or 
1249  assignees who acquire title to a unit by foreclosure or by deed 
1250  in lieu of foreclosure for the unpaid assessments that became 
1251  due before prior to the mortgagee’s acquisition of title is 
1252  limited to the lesser of: 
1253         1. The unit’s unpaid common expenses and regular periodic 
1254  assessments which accrued or came due during the 12 6 months 
1255  immediately preceding the acquisition of title and for which 
1256  payment in full has not been received by the association; or 
1257         2. One percent of the original mortgage debt. The 
1258  provisions of this paragraph apply only if the first mortgagee 
1259  joined the association as a defendant in the foreclosure action. 
1260  Joinder of the association is not required if, on the date the 
1261  complaint is filed, the association was dissolved or did not 
1262  maintain an office or agent for service of process at a location 
1263  which was known to or reasonably discoverable by the mortgagee. 
1264         (3) Assessments and installments on assessments them which 
1265  are not paid when due bear interest at the rate provided in the 
1266  declaration, from the due date until paid. This rate may not 
1267  exceed the rate allowed by law, and, if no rate is provided in 
1268  the declaration, interest accrues shall accrue at the rate of 18 
1269  percent per year. Also, if provided by the declaration or bylaws 
1270  so provide, the association may, in addition to such interest, 
1271  charge an administrative late fee of up to in addition to such 
1272  interest, in an amount not to exceed the greater of $25 or 5 
1273  percent of each installment of the assessment for each 
1274  delinquent installment for which that the payment is late. Any 
1275  payment received by an association must shall be applied first 
1276  to any interest accrued by the association, then to any 
1277  administrative late fee, then to any costs and reasonable 
1278  attorney’s fees incurred in collection, and then to the 
1279  delinquent assessment. The foregoing is shall be applicable 
1280  notwithstanding any restrictive endorsement, designation, or 
1281  instruction placed on or accompanying a payment. A late fee is 
1282  shall not be subject to the provisions in chapter 687 or s. 
1283  718.303(3). 
1284         (5) 
1285         (b) To be valid, a claim of lien must state the description 
1286  of the condominium parcel, the name of the record owner, the 
1287  name and address of the association, the amount due, and the due 
1288  dates. It must be executed and acknowledged by an officer or 
1289  authorized agent of the association. The No such lien is not 
1290  shall be effective longer than 1 year after the claim of lien 
1291  was recorded unless, within that time, an action to enforce the 
1292  lien is commenced. The 1-year period is shall automatically be 
1293  extended for any length of time during which the association is 
1294  prevented from filing a foreclosure action by an automatic stay 
1295  resulting from a bankruptcy petition filed by the parcel owner 
1296  or any other person claiming an interest in the parcel. The 
1297  claim of lien secures shall secure all unpaid assessments that 
1298  which are due and that which may accrue after subsequent to the 
1299  recording of the claim of lien is recorded and through prior to 
1300  the entry of a final judgment certificate of title, as well as 
1301  interest and all reasonable costs and attorney’s fees incurred 
1302  by the association incident to the collection process. Upon 
1303  payment in full, the person making the payment is entitled to a 
1304  satisfaction of the lien. 
1305 
1306  After notice of contest of lien has been recorded, the clerk of 
1307  the circuit court shall mail a copy of the recorded notice to 
1308  the association by certified mail, return receipt requested, at 
1309  the address shown in the claim of lien or most recent amendment 
1310  to it and shall certify to the service on the face of the 
1311  notice. Service is complete upon mailing. After service, the 
1312  association has 90 days in which to file an action to enforce 
1313  the lien; and, if the action is not filed within the 90-day 
1314  period, the lien is void. However, the 90-day period shall be 
1315  extended for any length of time that the association is 
1316  prevented from filing its action because of an automatic stay 
1317  resulting from the filing of a bankruptcy petition by the unit 
1318  owner or by any other person claiming an interest in the parcel. 
1319         (11) If the unit is occupied by a tenant and the unit owner 
1320  is delinquent in paying any monetary obligation due to the 
1321  association, the association may make a written demand that the 
1322  tenant pay the future monetary obligations related to the 
1323  condominium unit to the association, and the tenant must make 
1324  such payment. The demand is continuing in nature and, upon 
1325  demand, the tenant must pay the monetary obligations to the 
1326  association until the association releases the tenant or the 
1327  tenant discontinues tenancy in the unit. The association must 
1328  mail written notice to the unit owner of the association’s 
1329  demand that the tenant make payments to the association. The 
1330  association shall, upon request, provide the tenant with written 
1331  receipts for payments made. A tenant who acts in good faith in 
1332  response to a written demand from an association is immune from 
1333  any claim from the unit owner. 
1334         (a) If the tenant prepaid rent to the unit owner before 
1335  receiving the demand from the association and provides written 
1336  evidence of paying the rent to the association within 14 days 
1337  after receiving the demand, the tenant shall receive credit for 
1338  the prepaid rent for the applicable period and must make any 
1339  subsequent rental payments to the association to be credited 
1340  against the monetary obligations of the unit owner to the 
1341  association. 
1342         (b) The tenant is not liable for increases in the amount of 
1343  the monetary obligations due unless the tenant was notified in 
1344  writing of the increase at least 10 days before the date the 
1345  rent is due. The liability of the tenant may not exceed the 
1346  amount due from the tenant to the tenant’s landlord. The 
1347  tenant’s landlord shall provide the tenant a credit against 
1348  rents due to the unit owner in the amount of monies paid to the 
1349  association under this section. 
1350         (c) The association may issue notices under s. 83.56 and 
1351  may sue for eviction under ss. 83.59-83.625 as if the 
1352  association were a landlord under part II of chapter 83 if the 
1353  tenant fails to pay a required payment to the association. 
1354  However, the association is not otherwise considered a landlord 
1355  under chapter 83 and specifically has no duties under s. 83.51. 
1356         (d) The tenant does not, by virtue of payment of monetary 
1357  obligations to the association, have any of the rights of a unit 
1358  owner to vote in any election or to examine the books and 
1359  records of the association. 
1360         (e) A court may supersede the effect of this subsection by 
1361  appointing a receiver. 
1362         Section 13. Subsections (2) and (19) of section 718.117, 
1363  Florida Statutes, are amended to read: 
1364         718.117 Termination of condominium.— 
1365         (2) TERMINATION BECAUSE OF ECONOMIC WASTE OR 
1366  IMPOSSIBILITY.— 
1367         (a) Notwithstanding any provision to the contrary in the 
1368  declaration, the condominium form of ownership of a property may 
1369  be terminated by a plan of termination approved by the lesser of 
1370  the lowest percentage of voting interests necessary to amend the 
1371  declaration or as otherwise provided in the declaration for 
1372  approval of termination if when: 
1373         1. The total estimated cost of construction or repairs 
1374  necessary to construct the intended improvements or restore the 
1375  improvements to their former condition or bring them into 
1376  compliance with applicable laws or regulations exceeds the 
1377  combined fair market value of the all units in the condominium 
1378  after completion of the construction or repairs; or 
1379         2. It becomes impossible to operate or reconstruct a 
1380  condominium to in its prior physical configuration because of 
1381  land use laws or regulations. 
1382         (b) Notwithstanding paragraph (a), a condominium in which 
1383  75 percent or more of the units are timeshare units may be 
1384  terminated only pursuant to a plan of termination approved by 80 
1385  percent of the total voting interests of the association and the 
1386  holders of 80 percent of the original principal amount of 
1387  outstanding recorded mortgage liens of timeshare estates in the 
1388  condominium, unless the declaration provides for a lower voting 
1389  percentage. 
1390         (19) CREATION OF ANOTHER CONDOMINIUM.—The termination of a 
1391  condominium does not bar the filing of a declaration of 
1392  condominium or an amended and restated declaration of 
1393  condominium creation by the termination trustee of another 
1394  condominium affecting any portion of the same property. 
1395         Section 14. Subsection (11) is added to section 718.202, 
1396  Florida Statutes, to read: 
1397         718.202 Sales or reservation deposits prior to closing.— 
1398         (11) All funds deposited into escrow pursuant to subsection 
1399  (1) or subsection (2) may be held in one or more escrow accounts 
1400  by the escrow agent. If only one escrow account is used, the 
1401  escrow agent must maintain separate accounting records for each 
1402  purchaser and for amounts separately covered under subsections 
1403  (1) and (2) and, if applicable, released to the developer 
1404  pursuant to subsection (3). Separate accounting by the escrow 
1405  agent of the escrow funds constitutes compliance with this 
1406  section even if the funds are held by the escrow agent in a 
1407  single escrow account. It is the intent of this subsection to 
1408  clarify existing law. 
1409         Section 15. Subsection (1) of section 718.301, Florida 
1410  Statutes, is amended to read: 
1411         718.301 Transfer of association control; claims of defect 
1412  by association.— 
1413         (1) If When unit owners other than the developer own 15 
1414  percent or more of the units in a condominium that will be 
1415  operated ultimately by an association, the unit owners other 
1416  than the developer are shall be entitled to elect at least no 
1417  less than one-third of the members of the board of 
1418  administration of the association. Unit owners other than the 
1419  developer are entitled to elect at least not less than a 
1420  majority of the members of the board of administration of an 
1421  association: 
1422         (a) Three years after 50 percent of the units that will be 
1423  operated ultimately by the association have been conveyed to 
1424  purchasers; 
1425         (b) Three months after 90 percent of the units that will be 
1426  operated ultimately by the association have been conveyed to 
1427  purchasers; 
1428         (c) When all the units that will be operated ultimately by 
1429  the association have been completed, some of them have been 
1430  conveyed to purchasers, and none of the others are being offered 
1431  for sale by the developer in the ordinary course of business; 
1432         (d) When some of the units have been conveyed to purchasers 
1433  and none of the others are being constructed or offered for sale 
1434  by the developer in the ordinary course of business; 
1435         (e) When the developer files a petition seeking protection 
1436  in bankruptcy; 
1437         (f) When a receiver for the developer is appointed by a 
1438  circuit court and is not discharged within 30 days after such 
1439  appointment, unless the court determines within 30 days after 
1440  appointment of the receiver that transfer of control would be 
1441  detrimental to the association or its members; or 
1442         (g) Seven years after recordation of the declaration of 
1443  condominium; or, in the case of an association that which may 
1444  ultimately operate more than one condominium, 7 years after 
1445  recordation of the declaration for the first condominium it 
1446  operates; or, in the case of an association operating a phase 
1447  condominium created pursuant to s. 718.403, 7 years after 
1448  recordation of the declaration creating the initial phase, 
1449  whichever occurs first. The developer is entitled to elect at 
1450  least one member of the board of administration of an 
1451  association as long as the developer holds for sale in the 
1452  ordinary course of business at least 5 percent, in condominiums 
1453  with fewer than 500 units, and 2 percent, in condominiums with 
1454  more than 500 units, of the units in a condominium operated by 
1455  the association. After Following the time the developer 
1456  relinquishes control of the association, the developer may 
1457  exercise the right to vote any developer-owned units in the same 
1458  manner as any other unit owner except for purposes of 
1459  reacquiring control of the association or selecting the majority 
1460  members of the board of administration. 
1461         Section 16. Section 718.303, Florida Statutes, is amended 
1462  to read: 
1463         718.303 Obligations of owners and occupants; remedies 
1464  waiver; levy of fine against unit by association.— 
1465         (1) Each unit owner, each tenant and other invitee, and 
1466  each association is shall be governed by, and must shall comply 
1467  with the provisions of, this chapter, the declaration, the 
1468  documents creating the association, and the association bylaws 
1469  which and the provisions thereof shall be deemed expressly 
1470  incorporated into any lease of a unit. Actions for damages or 
1471  for injunctive relief, or both, for failure to comply with these 
1472  provisions may be brought by the association or by a unit owner 
1473  against: 
1474         (a) The association. 
1475         (b) A unit owner. 
1476         (c) Directors designated by the developer, for actions 
1477  taken by them before prior to the time control of the 
1478  association is assumed by unit owners other than the developer. 
1479         (d) Any director who willfully and knowingly fails to 
1480  comply with these provisions. 
1481         (e) Any tenant leasing a unit, and any other invitee 
1482  occupying a unit. 
1483 
1484  The prevailing party in any such action or in any action in 
1485  which the purchaser claims a right of voidability based upon 
1486  contractual provisions as required in s. 718.503(1)(a) is 
1487  entitled to recover reasonable attorney’s fees. A unit owner 
1488  prevailing in an action between the association and the unit 
1489  owner under this section, in addition to recovering his or her 
1490  reasonable attorney’s fees, may recover additional amounts as 
1491  determined by the court to be necessary to reimburse the unit 
1492  owner for his or her share of assessments levied by the 
1493  association to fund its expenses of the litigation. This relief 
1494  does not exclude other remedies provided by law. Actions arising 
1495  under this subsection may shall not be deemed to be actions for 
1496  specific performance. 
1497         (2) A provision of this chapter may not be waived if the 
1498  waiver would adversely affect the rights of a unit owner or the 
1499  purpose of the provision, except that unit owners or members of 
1500  a board of administration may waive notice of specific meetings 
1501  in writing if provided by the bylaws. Any instruction given in 
1502  writing by a unit owner or purchaser to an escrow agent may be 
1503  relied upon by an escrow agent, whether or not such instruction 
1504  and the payment of funds thereunder might constitute a waiver of 
1505  any provision of this chapter. 
1506         (3) If a unit owner is delinquent for more than 90 days in 
1507  paying a monetary obligation due to the association the 
1508  declaration or bylaws so provide, the association may suspend 
1509  the right of a unit owner or a unit’s occupant, licensee, or 
1510  invitee to use common elements, common facilities, or any other 
1511  association property until the monetary obligation is paid. This 
1512  subsection does not apply to limited common elements intended to 
1513  be used only by that unit, common elements that must be used to 
1514  access the unit, utility services provided to the unit, parking 
1515  spaces, or elevators. The association may also levy reasonable 
1516  fines against a unit for the failure of the owner of the unit, 
1517  or its occupant, licensee, or invitee, to comply with any 
1518  provision of the declaration, the association bylaws, or 
1519  reasonable rules of the association. A No fine does not will 
1520  become a lien against a unit. A No fine may not exceed $100 per 
1521  violation. However, a fine may be levied on the basis of each 
1522  day of a continuing violation, with a single notice and 
1523  opportunity for hearing. However, the provided that no such fine 
1524  may not shall in the aggregate exceed $1,000. A No fine may not 
1525  be levied and a suspension may not be imposed unless the 
1526  association first provides at least 14 days’ written except 
1527  after giving reasonable notice and an opportunity for a hearing 
1528  to the unit owner and, if applicable, its occupant, licensee, or 
1529  invitee. The hearing must be held before a committee of other 
1530  unit owners who are neither board members nor persons residing 
1531  in a board member’s household. If the committee does not agree 
1532  with the fine or suspension, the fine or suspension may not be 
1533  levied or imposed. The provisions of this subsection do not 
1534  apply to unoccupied units. 
1535         (4) The notice and hearing requirements of subsection (3) 
1536  do not apply to the imposition of suspensions or fines against a 
1537  unit owner or a unit’s occupant, licensee, or invitee because of 
1538  failing to pay any amounts due the association. If such a fine 
1539  or suspension is imposed, the association must levy the fine or 
1540  impose a reasonable suspension at a properly noticed board 
1541  meeting, and after the imposition of such fine or suspension, 
1542  the association must notify the unit owner and, if applicable, 
1543  the unit’s occupant, licensee, or invitee by mail or hand 
1544  delivery. 
1545         (5) An association may also suspend the voting rights of a 
1546  member due to nonpayment of any monetary obligation due to the 
1547  association which is more than 90 days delinquent. The 
1548  suspension ends upon full payment of all obligations currently 
1549  due or overdue the association. 
1550         Section 17. Subsection (1) of section 718.501, Florida 
1551  Statutes, is amended to read: 
1552         718.501 Authority, responsibility, and duties of Division 
1553  of Florida Condominiums, Timeshares, and Mobile Homes.— 
1554         (1) The division may of Florida Condominiums, Timeshares, 
1555  and Mobile Homes of the Department of Business and Professional 
1556  Regulation, referred to as the “division” in this part, has the 
1557  power to enforce and ensure compliance with the provisions of 
1558  this chapter and rules relating to the development, 
1559  construction, sale, lease, ownership, operation, and management 
1560  of residential condominium units. In performing its duties, the 
1561  division has complete jurisdiction to investigate complaints and 
1562  enforce compliance with the provisions of this chapter with 
1563  respect to associations that are still under developer control 
1564  or the control of a bulk assignee or bulk buyer pursuant to part 
1565  VII of this chapter and complaints against developers, bulk 
1566  assignees, or bulk buyers involving improper turnover or failure 
1567  to turnover, pursuant to s. 718.301. However, after turnover has 
1568  occurred, the division has shall only have jurisdiction to 
1569  investigate complaints related only to financial issues, 
1570  elections, and unit owner access to association records pursuant 
1571  to s. 718.111(12). 
1572         (a)1. The division may make necessary public or private 
1573  investigations within or outside this state to determine whether 
1574  any person has violated this chapter or any rule or order 
1575  hereunder, to aid in the enforcement of this chapter, or to aid 
1576  in the adoption of rules or forms hereunder. 
1577         2. The division may submit any official written report, 
1578  worksheet, or other related paper, or a duly certified copy 
1579  thereof, compiled, prepared, drafted, or otherwise made by and 
1580  duly authenticated by a financial examiner or analyst to be 
1581  admitted as competent evidence in any hearing in which the 
1582  financial examiner or analyst is available for cross-examination 
1583  and attests under oath that such documents were prepared as a 
1584  result of an examination or inspection conducted pursuant to 
1585  this chapter. 
1586         (b) The division may require or permit any person to file a 
1587  statement in writing, under oath or otherwise, as the division 
1588  determines, as to the facts and circumstances concerning a 
1589  matter to be investigated. 
1590         (c) For the purpose of any investigation under this 
1591  chapter, the division director or any officer or employee 
1592  designated by the division director may administer oaths or 
1593  affirmations, subpoena witnesses and compel their attendance, 
1594  take evidence, and require the production of any matter which is 
1595  relevant to the investigation, including the existence, 
1596  description, nature, custody, condition, and location of any 
1597  books, documents, or other tangible things and the identity and 
1598  location of persons having knowledge of relevant facts or any 
1599  other matter reasonably calculated to lead to the discovery of 
1600  material evidence. Upon the failure by a person to obey a 
1601  subpoena or to answer questions propounded by the investigating 
1602  officer and upon reasonable notice to all persons affected 
1603  persons thereby, the division may apply to the circuit court for 
1604  an order compelling compliance. 
1605         (d) Notwithstanding any remedies available to unit owners 
1606  and associations, if the division has reasonable cause to 
1607  believe that a violation of any provision of this chapter or 
1608  related rule has occurred, the division may institute 
1609  enforcement proceedings in its own name against any developer, 
1610  bulk assignee, bulk buyer, association, officer, or member of 
1611  the board of administration, or its assignees or agents, as 
1612  follows: 
1613         1. The division may permit a person whose conduct or 
1614  actions may be under investigation to waive formal proceedings 
1615  and enter into a consent proceeding whereby orders, rules, or 
1616  letters of censure or warning, whether formal or informal, may 
1617  be entered against the person. 
1618         2. The division may issue an order requiring the developer, 
1619  bulk assignee, bulk buyer, association, developer-designated 
1620  officer, or developer-designated member of the board of 
1621  administration, developer-designated assignees or agents, bulk 
1622  assignee-designated assignees or agents, bulk buyer-designated 
1623  assignees or agents, community association manager, or community 
1624  association management firm to cease and desist from the 
1625  unlawful practice and take such affirmative action as in the 
1626  judgment of the division will carry out the purposes of this 
1627  chapter. If the division finds that a developer, bulk assignee, 
1628  bulk buyer, association, officer, or member of the board of 
1629  administration, or its assignees or agents, is violating or is 
1630  about to violate any provision of this chapter, any rule adopted 
1631  or order issued by the division, or any written agreement 
1632  entered into with the division, and presents an immediate danger 
1633  to the public requiring an immediate final order, it may issue 
1634  an emergency cease and desist order reciting with particularity 
1635  the facts underlying such findings. The emergency cease and 
1636  desist order is effective for 90 days. If the division begins 
1637  nonemergency cease and desist proceedings, the emergency cease 
1638  and desist order remains effective until the conclusion of the 
1639  proceedings under ss. 120.569 and 120.57. 
1640         3. If a developer, bulk assignee, or bulk buyer, fails to 
1641  pay any restitution determined by the division to be owed, plus 
1642  any accrued interest at the highest rate permitted by law, 
1643  within 30 days after expiration of any appellate time period of 
1644  a final order requiring payment of restitution or the conclusion 
1645  of any appeal thereof, whichever is later, the division must 
1646  shall bring an action in circuit or county court on behalf of 
1647  any association, class of unit owners, lessees, or purchasers 
1648  for restitution, declaratory relief, injunctive relief, or any 
1649  other available remedy. The division may also temporarily revoke 
1650  its acceptance of the filing for the developer to which the 
1651  restitution relates until payment of restitution is made. 
1652         4. The division may petition the court for the appointment 
1653  of a receiver or conservator. If appointed, the receiver or 
1654  conservator may take action to implement the court order to 
1655  ensure the performance of the order and to remedy any breach 
1656  thereof. In addition to all other means provided by law for the 
1657  enforcement of an injunction or temporary restraining order, the 
1658  circuit court may impound or sequester the property of a party 
1659  defendant, including books, papers, documents, and related 
1660  records, and allow the examination and use of the property by 
1661  the division and a court-appointed receiver or conservator. 
1662         5. The division may apply to the circuit court for an order 
1663  of restitution whereby the defendant in an action brought 
1664  pursuant to subparagraph 4. is shall be ordered to make 
1665  restitution of those sums shown by the division to have been 
1666  obtained by the defendant in violation of this chapter. Such 
1667  restitution shall, At the option of the court, such restitution 
1668  is be payable to the conservator or receiver appointed pursuant 
1669  to subparagraph 4. or directly to the persons whose funds or 
1670  assets were obtained in violation of this chapter. 
1671         6. The division may impose a civil penalty against a 
1672  developer, bulk assignee, or bulk buyer, or association, or its 
1673  assignee or agent, for any violation of this chapter or related 
1674  a rule adopted under this chapter. The division may impose a 
1675  civil penalty individually against an any officer or board 
1676  member who willfully and knowingly violates a provision of this 
1677  chapter, adopted rule, or a final order of the division; may 
1678  order the removal of such individual as an officer or from the 
1679  board of administration or as an officer of the association; and 
1680  may prohibit such individual from serving as an officer or on 
1681  the board of a community association for a period of time. The 
1682  term “willfully and knowingly” means that the division informed 
1683  the officer or board member that his or her action or intended 
1684  action violates this chapter, a rule adopted under this chapter, 
1685  or a final order of the division and that the officer or board 
1686  member refused to comply with the requirements of this chapter, 
1687  a rule adopted under this chapter, or a final order of the 
1688  division. The division, before prior to initiating formal agency 
1689  action under chapter 120, must shall afford the officer or board 
1690  member an opportunity to voluntarily comply and with this 
1691  chapter, a rule adopted under this chapter, or a final order of 
1692  the division. an officer or board member who complies within 10 
1693  days is not subject to a civil penalty. A penalty may be imposed 
1694  on the basis of each day of continuing violation, but in no 
1695  event shall the penalty for any offense may not exceed $5,000. 
1696  By January 1, 1998, the division shall adopt, by rule, penalty 
1697  guidelines applicable to possible violations or to categories of 
1698  violations of this chapter or rules adopted by the division. The 
1699  guidelines must specify a meaningful range of civil penalties 
1700  for each such violation of the statute and rules and must be 
1701  based upon the harm caused by the violation, the repetition of 
1702  the violation, and upon such other factors deemed relevant by 
1703  the division. For example, the division may consider whether the 
1704  violations were committed by a developer, bulk assignee, or bulk 
1705  buyer, or owner-controlled association, the size of the 
1706  association, and other factors. The guidelines must designate 
1707  the possible mitigating or aggravating circumstances that 
1708  justify a departure from the range of penalties provided by the 
1709  rules. It is the legislative intent that minor violations be 
1710  distinguished from those which endanger the health, safety, or 
1711  welfare of the condominium residents or other persons and that 
1712  such guidelines provide reasonable and meaningful notice to the 
1713  public of likely penalties that may be imposed for proscribed 
1714  conduct. This subsection does not limit the ability of the 
1715  division to informally dispose of administrative actions or 
1716  complaints by stipulation, agreed settlement, or consent order. 
1717  All amounts collected shall be deposited with the Chief 
1718  Financial Officer to the credit of the Division of Florida 
1719  Condominiums, Timeshares, and Mobile Homes Trust Fund. If a 
1720  developer, bulk assignee, or bulk buyer fails to pay the civil 
1721  penalty and the amount deemed to be owed to the association, the 
1722  division shall issue an order directing that such developer, 
1723  bulk assignee, or bulk buyer cease and desist from further 
1724  operation until such time as the civil penalty is paid or may 
1725  pursue enforcement of the penalty in a court of competent 
1726  jurisdiction. If an association fails to pay the civil penalty, 
1727  the division shall pursue enforcement in a court of competent 
1728  jurisdiction, and the order imposing the civil penalty or the 
1729  cease and desist order is will not become effective until 20 
1730  days after the date of such order. Any action commenced by the 
1731  division shall be brought in the county in which the division 
1732  has its executive offices or in the county where the violation 
1733  occurred. 
1734         7. If a unit owner presents the division with proof that 
1735  the unit owner has requested access to official records in 
1736  writing by certified mail, and that after 10 days the unit owner 
1737  again made the same request for access to official records in 
1738  writing by certified mail, and that more than 10 days has 
1739  elapsed since the second request and the association has still 
1740  failed or refused to provide access to official records as 
1741  required by this chapter, the division shall issue a subpoena 
1742  requiring production of the requested records where the records 
1743  are kept pursuant to s. 718.112. 
1744         8. In addition to subparagraph 6., the division may seek 
1745  the imposition of a civil penalty through the circuit court for 
1746  any violation for which the division may issue a notice to show 
1747  cause under paragraph (r). The civil penalty shall be at least 
1748  $500 but no more than $5,000 for each violation. The court may 
1749  also award to the prevailing party court costs and reasonable 
1750  attorney’s fees and, if the division prevails, may also award 
1751  reasonable costs of investigation. 
1752         (e) The division may prepare and disseminate a prospectus 
1753  and other information to assist prospective owners, purchasers, 
1754  lessees, and developers of residential condominiums in assessing 
1755  the rights, privileges, and duties pertaining thereto. 
1756         (f) The division may has authority to adopt rules pursuant 
1757  to ss. 120.536(1) and 120.54 to administer implement and enforce 
1758  the provisions of this chapter. 
1759         (g) The division shall establish procedures for providing 
1760  notice to an association and the developer, bulk assignee, or 
1761  bulk buyer during the period in which where the developer, bulk 
1762  assignee, or bulk buyer controls the association if when the 
1763  division is considering the issuance of a declaratory statement 
1764  with respect to the declaration of condominium or any related 
1765  document governing in such condominium community. 
1766         (h) The division shall furnish each association that which 
1767  pays the fees required by paragraph (2)(a) a copy of this 
1768  chapter, as amended act, subsequent changes to this act on an 
1769  annual basis, an amended version of this act as it becomes 
1770  available from the Secretary of State’s office on a biennial 
1771  basis, and the rules adopted thereto on an annual basis. 
1772         (i) The division shall annually provide each association 
1773  with a summary of declaratory statements and formal legal 
1774  opinions relating to the operations of condominiums which were 
1775  rendered by the division during the previous year. 
1776         (j) The division shall provide training and educational 
1777  programs for condominium association board members and unit 
1778  owners. The training may, in the division’s discretion, include 
1779  web-based electronic media, and live training and seminars in 
1780  various locations throughout the state. The division may shall 
1781  have the authority to review and approve education and training 
1782  programs for board members and unit owners offered by providers 
1783  and shall maintain a current list of approved programs and 
1784  providers and shall make such list available to board members 
1785  and unit owners in a reasonable and cost-effective manner. 
1786         (k) The division shall maintain a toll-free telephone 
1787  number accessible to condominium unit owners. 
1788         (l) The division shall develop a program to certify both 
1789  volunteer and paid mediators to provide mediation of condominium 
1790  disputes. The division shall provide, upon request, a list of 
1791  such mediators to any association, unit owner, or other 
1792  participant in arbitration proceedings under s. 718.1255 
1793  requesting a copy of the list. The division shall include on the 
1794  list of volunteer mediators only the names of persons who have 
1795  received at least 20 hours of training in mediation techniques 
1796  or who have mediated at least 20 disputes. In order to become 
1797  initially certified by the division, paid mediators must be 
1798  certified by the Supreme Court to mediate court cases in county 
1799  or circuit courts. However, the division may adopt, by rule, 
1800  additional factors for the certification of paid mediators, 
1801  which factors must be related to experience, education, or 
1802  background. Any person initially certified as a paid mediator by 
1803  the division must, in order to continue to be certified, comply 
1804  with the factors or requirements adopted by rule imposed by 
1805  rules adopted by the division. 
1806         (m) If When a complaint is made, the division must shall 
1807  conduct its inquiry with due regard for to the interests of the 
1808  affected parties. Within 30 days after receipt of a complaint, 
1809  the division shall acknowledge the complaint in writing and 
1810  notify the complainant whether the complaint is within the 
1811  jurisdiction of the division and whether additional information 
1812  is needed by the division from the complainant. The division 
1813  shall conduct its investigation and shall, within 90 days after 
1814  receipt of the original complaint or of timely requested 
1815  additional information, take action upon the complaint. However, 
1816  the failure to complete the investigation within 90 days does 
1817  not prevent the division from continuing the investigation, 
1818  accepting or considering evidence obtained or received after 90 
1819  days, or taking administrative action if reasonable cause exists 
1820  to believe that a violation of this chapter or a rule of the 
1821  division has occurred. If an investigation is not completed 
1822  within the time limits established in this paragraph, the 
1823  division shall, on a monthly basis, notify the complainant in 
1824  writing of the status of the investigation. When reporting its 
1825  action to the complainant, the division shall inform the 
1826  complainant of any right to a hearing pursuant to ss. 120.569 
1827  and 120.57. 
1828         (n) Condominium association directors, officers, and 
1829  employees; condominium developers; bulk assignees, bulk buyers, 
1830  and community association managers; and community association 
1831  management firms have an ongoing duty to reasonably cooperate 
1832  with the division in any investigation pursuant to this section. 
1833  The division shall refer to local law enforcement authorities 
1834  any person whom the division believes has altered, destroyed, 
1835  concealed, or removed any record, document, or thing required to 
1836  be kept or maintained by this chapter with the purpose to impair 
1837  its verity or availability in the department’s investigation. 
1838         (o) The division may: 
1839         1. Contract with agencies in this state or other 
1840  jurisdictions to perform investigative functions; or 
1841         2. Accept grants-in-aid from any source. 
1842         (p) The division shall cooperate with similar agencies in 
1843  other jurisdictions to establish uniform filing procedures and 
1844  forms, public offering statements, advertising standards, and 
1845  rules and common administrative practices. 
1846         (q) The division shall consider notice to a developer, bulk 
1847  assignee, or bulk buyer to be complete when it is delivered to 
1848  the developer’s address of the developer, bulk assignee, or bulk 
1849  buyer currently on file with the division. 
1850         (r) In addition to its enforcement authority, the division 
1851  may issue a notice to show cause, which must shall provide for a 
1852  hearing, upon written request, in accordance with chapter 120. 
1853         (s) The division shall submit to the Governor, the 
1854  President of the Senate, the Speaker of the House of 
1855  Representatives, and the chairs of the legislative 
1856  appropriations committees an annual report that includes, but 
1857  need not be limited to, the number of training programs provided 
1858  for condominium association board members and unit owners, the 
1859  number of complaints received by type, the number and percent of 
1860  complaints acknowledged in writing within 30 days and the number 
1861  and percent of investigations acted upon within 90 days in 
1862  accordance with paragraph (m), and the number of investigations 
1863  exceeding the 90-day requirement. The annual report must shall 
1864  also include an evaluation of the division’s core business 
1865  processes and make recommendations for improvements, including 
1866  statutory changes. The report shall be submitted by September 30 
1867  following the end of the fiscal year. 
1868         Section 18. Part VII of chapter 718, Florida Statutes, 
1869  consisting of sections 718.701, 718.702, 718.703, 718.704, 
1870  718.705, 718.706, 718.707, and 718.708, is created to read: 
1871         718.701 Short title.—This part may be cited as the 
1872  “Distressed Condominium Relief Act.” 
1873         718.702 Legislative intent.— 
1874         (1) The Legislature acknowledges the massive downturn in 
1875  the condominium market which has occurred throughout the state 
1876  and the impact of such downturn on developers, lenders, unit 
1877  owners, and condominium associations. Numerous condominium 
1878  projects have failed or are in the process of failing such that 
1879  the condominium has a small percentage of third-party unit 
1880  owners as compared to the unsold inventory of units. As a result 
1881  of the inability to find purchasers for this inventory of units, 
1882  which results in part from the devaluing of real estate in this 
1883  state, developers are unable to satisfy the requirements of 
1884  their lenders, leading to defaults on mortgages. Consequently, 
1885  lenders are faced with the task of finding a solution to the 
1886  problem in order to receive payment for their investments. 
1887         (2) The Legislature recognizes that all of the factors 
1888  listed in this section lead to condominiums becoming distressed, 
1889  resulting in detriment to the unit owners and the condominium 
1890  association due to the resulting shortage of assessment moneys 
1891  available for proper maintenance of the condominium. Such 
1892  shortage and the resulting lack of proper maintenance further 
1893  erodes property values. The Legislature finds that individuals 
1894  and entities within this state and in other states have 
1895  expressed interest in purchasing unsold inventory in one or more 
1896  condominium projects, but are reticent to do so because of 
1897  accompanying liabilities inherited from the original developer, 
1898  which are by definition imputed to the successor purchaser, 
1899  including a foreclosing mortgagee. This results in the potential 
1900  successor purchaser having unknown and unquantifiable risks that 
1901  the potential purchaser is unwilling to accept. As a result, 
1902  condominium projects stagnate, leaving all parties involved at 
1903  an impasse and without the ability to find a solution. 
1904         (3) The Legislature declares that it is the public policy 
1905  of this state to protect the interests of developers, lenders, 
1906  unit owners, and condominium associations with regard to 
1907  distressed condominiums, and that there is a need for relief 
1908  from certain provisions of the Florida Condominium Act geared 
1909  toward enabling economic opportunities for successor purchasers, 
1910  including foreclosing mortgagees. Such relief would benefit 
1911  existing unit owners and condominium associations. The 
1912  Legislature further finds and declares that this situation 
1913  cannot be open-ended without potentially prejudicing the rights 
1914  of unit owners and condominium associations, and thereby 
1915  declares that the provisions of this part may be used by 
1916  purchasers of condominium inventory for only a specific and 
1917  defined period. 
1918         718.703 Definitions.—As used in this part, the term: 
1919         (1) “Bulk assignee” means a person who: 
1920         (a) Acquires more than seven condominium parcels as set 
1921  forth in s. 718.707; and 
1922         (b) Receives an assignment of some or all of the rights of 
1923  the developer as set forth in the declaration of condominium or 
1924  this chapter by a written instrument recorded as an exhibit to 
1925  the deed or as a separate instrument in the public records of 
1926  the county in which the condominium is located. 
1927         (2) “Bulk buyer” means a person who acquires more than 
1928  seven condominium parcels as set forth in s. 718.707, but who 
1929  does not receive an assignment of developer rights other than 
1930  the right to conduct sales, leasing, and marketing activities 
1931  within the condominium; the right to be exempt from the payment 
1932  of working capital contributions to the condominium association 
1933  arising out of, or in connection with, the bulk buyer’s 
1934  acquisition of a bulk number of units; and the right to be 
1935  exempt from any rights of first refusal which may be held by the 
1936  condominium association and would otherwise be applicable to 
1937  subsequent transfers of title from the bulk buyer to a third 
1938  party purchaser concerning one or more units. 
1939         718.704 Assignment and assumption of developer rights by 
1940  bulk assignee; bulk buyer.— 
1941         (1) A bulk assignee assumes and is liable for all duties 
1942  and responsibilities of the developer under the declaration and 
1943  this chapter, except: 
1944         (a) Warranties of the developer under s. 718.203(1) or s. 
1945  718.618, except for design, construction, development, or repair 
1946  work performed by or on behalf of such bulk assignee; 
1947         (b) The obligation to: 
1948         1. Fund converter reserves under s. 718.618 for a unit that 
1949  was not acquired by the bulk assignee; or 
1950         2. Provide converter warranties on any portion of the 
1951  condominium property except as expressly provided by the bulk 
1952  assignee in the contract for purchase and sale executed with a 
1953  purchaser and pertaining to any design, construction, 
1954  development, or repair work performed by or on behalf of the 
1955  bulk assignee; 
1956         (c) The requirement to provide the association with a 
1957  cumulative audit of the association’s finances from the date of 
1958  formation of the condominium association as required by s. 
1959  718.301(4)(c). However, the bulk assignee must provide an audit 
1960  for the period during which the bulk assignee elects a majority 
1961  of the members of the board of administration; 
1962         (d) Any liability arising out of or in connection with 
1963  actions taken by the board of administration or the developer 
1964  appointed directors before the bulk assignee elects a majority 
1965  of the members of the board of administration; and 
1966         (e) Any liability for or arising out of the developer’s 
1967  failure to fund previous assessments or to resolve budgetary 
1968  deficits in relation to a developer’s right to guarantee 
1969  assessments, except as otherwise provided in subsection (2). 
1970 
1971  The bulk assignee is also responsible for delivering documents 
1972  and materials in accordance with s. 718.705(3). A bulk assignee 
1973  may expressly assume some or all of the obligations of the 
1974  developer described in paragraphs (a)-(e). 
1975         (2) A bulk assignee receiving the assignment of the rights 
1976  of the developer to guarantee the level of assessments and fund 
1977  budgetary deficits pursuant to s. 718.116 assumes and is liable 
1978  for all obligations of the developer with respect to such 
1979  guarantee, including any applicable funding of reserves to the 
1980  extent required by law, for as long as the guarantee remains in 
1981  effect. A bulk assignee not receiving such assignment or a bulk 
1982  buyer does not assume and is not liable for the obligations of 
1983  the developer with respect to such guarantee, but is responsible 
1984  for payment of assessments in the same manner as all other 
1985  owners of condominium parcels. 
1986         (3) A bulk buyer is liable for the duties and 
1987  responsibilities of the developer under the declaration and this 
1988  chapter only to the extent provided in this part, together with 
1989  any other duties or responsibilities of the developer expressly 
1990  assumed in writing by the bulk buyer. 
1991         (4) An acquirer of condominium parcels is not a bulk 
1992  assignee or a bulk buyer if the transfer to such acquirer was 
1993  made before the effective date of this part with the intent to 
1994  hinder, delay, or defraud any purchaser, unit owner, or the 
1995  association, or if the acquirer is a person who would be 
1996  considered an insider under s. 726.102(7). 
1997         (5) An assignment of developer rights to a bulk assignee 
1998  may be made by the developer, a previous bulk assignee, or a 
1999  court acting on behalf of the developer or the previous bulk 
2000  assignee. At any particular time, there may be no more than one 
2001  bulk assignee within a condominium, but there may be more than 
2002  one bulk buyer. If more than one acquirer of condominium parcels 
2003  in the same condominium receives an assignment of developer 
2004  rights from the same person, the bulk assignee is the acquirer 
2005  whose instrument of assignment is recorded first. 
2006         718.705 Board of administration; transfer of control.— 
2007         (1) For purposes of determining the timing for transfer of 
2008  control of the board of administration of the association to 
2009  unit owners other than the developer under s. 718.301(1)(a) and 
2010  (b), if a bulk assignee is entitled to elect a majority of the 
2011  members of the board, a condominium parcel acquired by the bulk 
2012  assignee is conveyed to a purchaser, or owned by an owner other 
2013  than the developer, until the condominium parcel is conveyed to 
2014  an owner who is not a bulk assignee. 
2015         (2) Unless control of the board of administration of the 
2016  association has already been relinquished pursuant to s. 
2017  718.301(1), the bulk assignee must relinquish control of the 
2018  association pursuant to s. 718.301 and this part, as if the bulk 
2019  assignee were the developer. 
2020         (3) If a bulk assignee relinquishes control of the board of 
2021  administration as set forth in s. 718.301, the bulk assignee 
2022  must deliver all of those items required by s. 718.301(4). 
2023  However, the bulk assignee is not required to deliver items and 
2024  documents not in the possession of the bulk assignee during the 
2025  period during which the bulk assignee was entitled to elect at 
2026  least a majority of the members of the board of administration. 
2027  In conjunction with acquisition of condominium parcels, a bulk 
2028  assignee shall undertake a good faith effort to obtain the 
2029  documents and materials that must be provided to the association 
2030  pursuant to s. 718.301(4). If the bulk assignee is not able to 
2031  obtain all of such documents and materials, the bulk assignee 
2032  must certify in writing to the association the names or 
2033  descriptions of the documents and materials that were not 
2034  obtainable by the bulk assignee. Delivery of the certificate 
2035  relieves the bulk assignee of responsibility for delivering the 
2036  documents and materials referenced in the certificate as 
2037  otherwise required under ss. 718.112 and 718.301 and this part. 
2038  The responsibility of the bulk assignee for the audit required 
2039  by s. 718.301(4) commences as of the date on which the bulk 
2040  assignee elected a majority of the members of the board of 
2041  administration. 
2042         (4) If a conflict arises between the provisions or 
2043  application of this section and s. 718.301, this section 
2044  prevails. 
2045         (5) Failure of a bulk assignee or bulk buyer to 
2046  substantially comply with all the requirements in this part 
2047  results in the loss of any and all protections or exemptions 
2048  provided under this part. 
2049         718.706 Specific provisions pertaining to offering of units 
2050  by a bulk assignee or bulk buyer.— 
2051         (1) Before offering any units for sale or for lease for a 
2052  term exceeding 5 years, a bulk assignee or a bulk buyer must 
2053  file the following documents with the division and provide such 
2054  documents to a prospective purchaser or tenant: 
2055         (a) An updated prospectus or offering circular, or a 
2056  supplement to the prospectus or offering circular, filed by the 
2057  original developer prepared in accordance with s. 718.504, which 
2058  must include the form of contract for sale and for lease in 
2059  compliance with s. 718.503(2); 
2060         (b) An updated Frequently Asked Questions and Answers 
2061  sheet; 
2062         (c) The executed escrow agreement if required under s. 
2063  718.202; and 
2064         (d) The financial information required by s. 718.111(13). 
2065  However, if a financial information report does not exist for 
2066  the fiscal year before acquisition of title by the bulk assignee 
2067  or bulk buyer, or accounting records cannot be obtained in good 
2068  faith by the bulk assignee or the bulk buyer which would permit 
2069  preparation of the required financial information report, the 
2070  bulk assignee or bulk buyer is excused from the requirement of 
2071  this paragraph. However, the bulk assignee or bulk buyer must 
2072  include in the purchase contract the following statement in 
2073  conspicuous type: 
2074 
2075         THE FINANCIAL INFORMATION REPORT REQUIRED UNDER S. 
2076         718.111(13) FOR THE IMMEDIATELY PRECEDING FISCAL YEAR 
2077         OF THE ASSOCIATION IS NOT AVAILABLE OR CANNOT BE 
2078         CREATED BY THE SELLER DUE TO THE INSUFFICIENT 
2079         ACCOUNTING RECORDS OF THE ASSOCIATION. 
2080 
2081         (2) Before offering any units for sale or for lease for a 
2082  term exceeding 5 years, a bulk assignee must file with the 
2083  division and provide to a prospective purchaser a disclosure 
2084  statement that includes, but is not limited to: 
2085         (a) A description of any rights of the developer which have 
2086  been assigned to the bulk assignee or bulk buyer; 
2087         (b) The following statement in conspicuous type: 
2088 
2089         THE SELLER IS NOT OBLIGATED FOR ANY WARRANTIES OF THE 
2090         DEVELOPER UNDER S. 718.203(1) OR S. 718.618, AS 
2091         APPLICABLE, EXCEPT FOR DESIGN, CONSTRUCTION, 
2092         DEVELOPMENT, OR REPAIR WORK PERFORMED BY OR ON BEHALF 
2093         OF SELLER; and 
2094         (c) If the condominium is a conversion subject to part VI, 
2095  the following statement in conspicuous type: 
2096 
2097         THE SELLER HAS NO OBLIGATION TO FUND CONVERTER 
2098         RESERVES OR TO PROVIDE CONVERTER WARRANTIES UNDER S. 
2099         718.618 ON ANY PORTION OF THE CONDOMINIUM PROPERTY 
2100         EXCEPT AS MAY BE EXPRESSLY REQUIRED OF THE SELLER IN 
2101         THE CONTRACT FOR PURCHASE AND SALE EXECUTED BY THE 
2102         SELLER AND THE PREVIOUS DEVELOPER AND PERTAINING TO 
2103         ANY DESIGN, CONSTRUCTION, DEVELOPMENT, OR REPAIR WORK 
2104         PERFORMED BY OR ON BEHALF OF THE SELLER. 
2105         (3) A bulk assignee, while it is in control of the board of 
2106  administration of the association, may not authorize, on behalf 
2107  of the association: 
2108         (a) The waiver of reserves or the reduction of funding of 
2109  the reserves pursuant to s. 718.112(2)(f)2., unless approved by 
2110  a majority of the voting interests not controlled by the 
2111  developer, bulk assignee, and bulk buyer; or 
2112         (b) The use of reserve expenditures for other purposes 
2113  pursuant to s. 718.112(2)(f)3., unless approved by a majority of 
2114  the voting interests not controlled by the developer, bulk 
2115  assignee, and bulk buyer. 
2116         (4) A bulk assignee or a bulk buyer must comply with all 
2117  the requirements of s. 718.302 regarding any contracts entered 
2118  into by the association during the period the bulk assignee or 
2119  bulk buyer maintains control of the board of administration. 
2120  Unit owners shall be afforded all the protections contained in 
2121  s. 718.302 regarding agreements entered into by the association 
2122  before unit owners other than the developer, bulk assignee, or 
2123  bulk buyer elected a majority of the board of administration. 
2124         (5) A bulk buyer must comply with the requirements 
2125  contained in the declaration regarding any transfer of a unit, 
2126  including sales, leases, and subleases. A bulk buyer is not 
2127  entitled to any exemptions afforded a developer or successor 
2128  developer under this chapter regarding the transfer of a unit, 
2129  including sales, leases, or subleases. 
2130         718.707 Time limitation for classification as bulk assignee 
2131  or bulk buyer.—A person acquiring condominium parcels may not be 
2132  classified as a bulk assignee or bulk buyer unless the 
2133  condominium parcels were acquired before July 1, 2012. The date 
2134  of such acquisition shall be determined by the date of recording 
2135  of a deed or other instrument of conveyance for such parcels in 
2136  the public records of the county in which the condominium is 
2137  located, or by the date of issuance of a certificate of title in 
2138  a foreclosure proceeding with respect to such condominium 
2139  parcels. 
2140         718.708 Liability of developers and others.—An assignment 
2141  of developer rights to a bulk assignee or bulk buyer does not 
2142  release the original developer from liabilities under the 
2143  declaration or this chapter. This part does not limit the 
2144  liability of the original developer for claims brought by unit 
2145  owners, bulk assignees, or bulk buyers for violations of this 
2146  chapter by the original developer, unless specifically excluded 
2147  in this part. This part does not waive, release, compromise, or 
2148  limit liability established under chapter 718 except as 
2149  specifically excluded under this part. 
2150         Section 19. Paragraph (d) of subsection (1) of section 
2151  719.106, Florida Statutes, is amended to read: 
2152         719.106 Bylaws; cooperative ownership.— 
2153         (1) MANDATORY PROVISIONS.—The bylaws or other cooperative 
2154  documents shall provide for the following, and if they do not, 
2155  they shall be deemed to include the following: 
2156         (d) Shareholder meetings.—There shall be an annual meeting 
2157  of the shareholders. All members of the board of administration 
2158  shall be elected at the annual meeting unless the bylaws provide 
2159  for staggered election terms or for their election at another 
2160  meeting. Any unit owner desiring to be a candidate for board 
2161  membership must shall comply with subparagraph 1. The bylaws 
2162  must shall provide the method for calling meetings, including 
2163  annual meetings. Written notice, which must notice shall 
2164  incorporate an identification of agenda items, shall be given to 
2165  each unit owner at least 14 days before prior to the annual 
2166  meeting and shall be posted in a conspicuous place on the 
2167  cooperative property at least 14 continuous days preceding the 
2168  annual meeting. Upon notice to the unit owners, the board must 
2169  shall by duly adopted rule designate a specific location on the 
2170  cooperative property upon which all notice of unit owner 
2171  meetings are shall be posted. In lieu of or in addition to the 
2172  physical posting of the meeting notice of any meeting of the 
2173  shareholders on the cooperative property, the association may, 
2174  by reasonable rule, adopt a procedure for conspicuously posting 
2175  and repeatedly broadcasting the notice and the agenda on a 
2176  closed-circuit cable television system serving the cooperative 
2177  association. However, if broadcast notice is used in lieu of a 
2178  posted notice posted physically on the cooperative property, the 
2179  notice and agenda must be broadcast at least four times every 
2180  broadcast hour of each day that a posted notice is otherwise 
2181  required under this section. If When broadcast notice is 
2182  provided, the notice and agenda must be broadcast in a manner 
2183  and for a sufficient continuous length of time so as to allow an 
2184  average reader to observe the notice and read and comprehend the 
2185  entire content of the notice and the agenda. Unless a unit owner 
2186  waives in writing the right to receive notice of the annual 
2187  meeting, the notice of the annual meeting must shall be sent by 
2188  mail, hand delivered, or electronically transmitted to each unit 
2189  owner. An officer of the association must shall provide an 
2190  affidavit or United States Postal Service certificate of 
2191  mailing, to be included in the official records of the 
2192  association, affirming that notices of the association meeting 
2193  were mailed, hand delivered, or electronically transmitted, in 
2194  accordance with this provision, to each unit owner at the 
2195  address last furnished to the association. 
2196         1. After January 1, 1992, The board of administration shall 
2197  be elected by written ballot or voting machine. A proxy may not 
2198  Proxies shall in no event be used in electing the board of 
2199  administration, either in general elections or elections to fill 
2200  vacancies caused by recall, resignation, or otherwise unless 
2201  otherwise provided in this chapter. At least Not less than 60 
2202  days before a scheduled election, the association shall mail, 
2203  deliver, or transmit, whether by separate association mailing, 
2204  delivery, or electronic transmission or included in another 
2205  association mailing, delivery, or electronic transmission, 
2206  including regularly published newsletters, to each unit owner 
2207  entitled to vote, a first notice of the date of the election. 
2208  Any unit owner or other eligible person desiring to be a 
2209  candidate for the board of administration must shall give 
2210  written notice to the association at least not less than 40 days 
2211  before a scheduled election. Together with the written notice 
2212  and agenda as set forth in this section, the association shall 
2213  mail, deliver, or electronically transmit a second notice of 
2214  election to all unit owners entitled to vote therein, together 
2215  with a ballot which lists shall list all candidates. Upon 
2216  request of a candidate, the association shall include an 
2217  information sheet, no larger than 8 1/2 inches by 11 inches, 
2218  which must be furnished by the candidate at least not less than 
2219  35 days before prior to the election, to be included with the 
2220  mailing, delivery, or electronic transmission of the ballot, 
2221  with the costs of mailing, delivery, or transmission and copying 
2222  to be borne by the association. The association is not liable 
2223  has no liability for the contents of the information sheets 
2224  provided by the candidates. In order to reduce costs, the 
2225  association may print or duplicate the information sheets on 
2226  both sides of the paper. The division shall by rule establish 
2227  voting procedures consistent with this subparagraph the 
2228  provisions contained herein, including rules establishing 
2229  procedures for giving notice by electronic transmission and 
2230  rules providing for the secrecy of ballots. Elections shall be 
2231  decided by a plurality of those ballots cast. There is shall be 
2232  no quorum requirement. However, at least 20 percent of the 
2233  eligible voters must cast a ballot in order to have a valid 
2234  election of members of the board of administration. A No unit 
2235  owner may not shall permit any other person to vote his or her 
2236  ballot, and any such ballots improperly cast are shall be deemed 
2237  invalid. A unit owner who needs assistance in casting the ballot 
2238  for the reasons stated in s. 101.051 may obtain assistance in 
2239  casting the ballot. Any unit owner violating this provision may 
2240  be fined by the association in accordance with s. 719.303. The 
2241  regular election must shall occur on the date of the annual 
2242  meeting. The provisions of This subparagraph does shall not 
2243  apply to timeshare cooperatives. Notwithstanding the provisions 
2244  of this subparagraph, an election and balloting are not required 
2245  unless more candidates file a notice of intent to run or are 
2246  nominated than vacancies exist on the board. 
2247         2. Any approval by unit owners called for by this chapter, 
2248  or the applicable cooperative documents, must shall be made at a 
2249  duly noticed meeting of unit owners and is shall be subject to 
2250  all requirements of this chapter or the applicable cooperative 
2251  documents relating to unit owner decisionmaking, except that 
2252  unit owners may take action by written agreement, without 
2253  meetings, on matters for which action by written agreement 
2254  without meetings is expressly allowed by the applicable 
2255  cooperative documents or law any Florida statute which provides 
2256  for the unit owner action. 
2257         3. Unit owners may waive notice of specific meetings if 
2258  allowed by the applicable cooperative documents or law any 
2259  Florida statute. If authorized by the bylaws, notice of meetings 
2260  of the board of administration, shareholder meetings, except 
2261  shareholder meetings called to recall board members under 
2262  paragraph (f), and committee meetings may be given by electronic 
2263  transmission to unit owners who consent to receive notice by 
2264  electronic transmission. 
2265         4. Unit owners shall have the right to participate in 
2266  meetings of unit owners with reference to all designated agenda 
2267  items. However, the association may adopt reasonable rules 
2268  governing the frequency, duration, and manner of unit owner 
2269  participation. 
2270         5. Any unit owner may tape record or videotape meetings of 
2271  the unit owners subject to reasonable rules adopted by the 
2272  division. 
2273         6. Unless otherwise provided in the bylaws, a vacancy 
2274  occurring on the board before the expiration of a term may be 
2275  filled by the affirmative vote of the majority of the remaining 
2276  directors, even if the remaining directors constitute less than 
2277  a quorum, or by the sole remaining director. In the alternative, 
2278  a board may hold an election to fill the vacancy, in which case 
2279  the election procedures must conform to the requirements of 
2280  subparagraph 1. unless the association has opted out of the 
2281  statutory election process, in which case the bylaws of the 
2282  association control. Unless otherwise provided in the bylaws, a 
2283  board member appointed or elected under this subparagraph shall 
2284  fill the vacancy for the unexpired term of the seat being 
2285  filled. Filling vacancies created by recall is governed by 
2286  paragraph (f) and rules adopted by the division. 
2287 
2288  Notwithstanding subparagraphs (b)2. and (d)1., an association 
2289  may, by the affirmative vote of a majority of the total voting 
2290  interests, provide for a different voting and election procedure 
2291  in its bylaws, which vote may be by a proxy specifically 
2292  delineating the different voting and election procedures. The 
2293  different voting and election procedures may provide for 
2294  elections to be conducted by limited or general proxy. 
2295         Section 20. Subsection (5) of section 719.1055, Florida 
2296  Statutes, is amended to read: 
2297         719.1055 Amendment of cooperative documents; alteration and 
2298  acquisition of property.— 
2299         (5) The bylaws must include a provision whereby a 
2300  certificate of compliance from a licensed electrical contractor 
2301  or electrician may be accepted by the association’s board as 
2302  evidence of compliance of the cooperative units with the 
2303  applicable fire and life safety code. 
2304         1. Notwithstanding chapter 633 or any other code, statute, 
2305  ordinance, administrative rule, or regulation, or any 
2306  interpretation of the foregoing, a cooperative or unit owner is 
2307  not obligated to retrofit the common elements or units of a 
2308  residential cooperative with a fire sprinkler system in a 
2309  building that has been certified for occupancy by the applicable 
2310  governmental entity if the unit owners have voted to forego such 
2311  retrofitting by the affirmative vote of a majority of all voting 
2312  interests in the affected cooperative. The local authority 
2313  having jurisdiction may not require completion of retrofitting 
2314  with a fire sprinkler system before the end of 2019. By December 
2315  31, 2016, a cooperative that is not in compliance with the 
2316  requirements for a fire sprinkler system and has not voted to 
2317  forego retrofitting of such a system must initiate an 
2318  application for a building permit for the required installation 
2319  with the local government having jurisdiction demonstrating that 
2320  the cooperative will become compliant by December 31, 2019. 
2321         2.� A vote to forego retrofitting may be obtained by limited 
2322  proxy or by a ballot personally cast at a duly called membership 
2323  meeting, or by execution of a written consent by the member, and 
2324  is effective upon recording a certificate attesting to such vote 
2325  in the public records of the county where the cooperative is 
2326  located. The cooperative shall mail or hand deliver to each unit 
2327  owner written notice at least 14 days before the membership 
2328  meeting in which the vote to forego retrofitting of the required 
2329  fire sprinkler system is to take place. Within 30 days after the 
2330  cooperative’s opt-out vote, notice of the results of the opt-out 
2331  vote must be mailed or hand delivered to all unit owners. 
2332  Evidence of compliance with this notice requirement must be made 
2333  by affidavit executed by the person providing the notice and 
2334  filed among the official records of the cooperative. After 
2335  notice is provided to each owner, a copy must be provided by the 
2336  current owner to a new owner before closing and by a unit owner 
2337  to a renter before signing a lease. Notwithstanding the 
2338  provisions of chapter 633 or of any other code, statute, 
2339  ordinance, administrative rule, or regulation, or any 
2340  interpretation of the foregoing, a cooperative or unit owner is 
2341  not obligated to retrofit the common elements or units of a 
2342  residential cooperative with a fire sprinkler system or other 
2343  engineered life safety system in a building that has been 
2344  certified for occupancy by the applicable governmental entity, 
2345  if the unit owners have voted to forego such retrofitting and 
2346  engineered life safety system by the affirmative vote of two 
2347  thirds of all voting interests in the affected cooperative. 
2348  However, a cooperative may not forego the retrofitting with a 
2349  fire sprinkler system of common areas in a high-rise building. 
2350  For purposes of this subsection, the term “high-rise building” 
2351  means a building that is greater than 75 feet in height where 
2352  the building height is measured from the lowest level of fire 
2353  department access to the floor of the highest occupiable story. 
2354  For purposes of this subsection, the term “common areas” means 
2355  any enclosed hallway, corridor, lobby, stairwell, or entryway. 
2356  In no event shall The local authority having jurisdiction 
2357  require completion of retrofitting of common areas with a 
2358  sprinkler system before the end of 2014. 
2359         (a) A vote to forego retrofitting may be obtained by 
2360  limited proxy or by a ballot personally cast at a duly called 
2361  membership meeting, or by execution of a written consent by the 
2362  member, and shall be effective upon the recording of a 
2363  certificate attesting to such vote in the public records of the 
2364  county where the cooperative is located. The association shall 
2365  mail, hand deliver, or electronically transmit to each unit 
2366  owner written notice at least 14 days prior to such membership 
2367  meeting in which the vote to forego retrofitting of the required 
2368  fire sprinkler system is to take place. Within 30 days after the 
2369  association’s opt-out vote, notice of the results of the opt-out 
2370  vote shall be mailed, hand delivered, or electronically 
2371  transmitted to all unit owners. Evidence of compliance with this 
2372  30-day notice shall be made by an affidavit executed by the 
2373  person providing the notice and filed among the official records 
2374  of the association. After such notice is provided to each owner, 
2375  a copy of such notice shall be provided by the current owner to 
2376  a new owner prior to closing and shall be provided by a unit 
2377  owner to a renter prior to signing a lease. 
2378         (b) If there has been a previous vote to forego 
2379  retrofitting, a vote to require retrofitting may be obtained at 
2380  a special meeting of the unit owners called by a petition of 
2381  least 10 percent of the voting interests. Such vote may only be 
2382  called once every 3 years. Notice must be provided as required 
2383  for any regularly called meeting of the unit owners, and the 
2384  notice must state the purpose of the meeting. Electronic 
2385  transmission may not be used to provide notice of a meeting 
2386  called in whole or in part for this purpose. 
2387         (c)(b) As part of the information collected annually from 
2388  cooperatives, the division shall require associations to report 
2389  the membership vote and recording of a certificate under this 
2390  subsection and, if retrofitting has been undertaken, the per 
2391  unit cost of such work. The division shall annually report to 
2392  the Division of State Fire Marshal of the Department of 
2393  Financial Services the number of cooperatives that have elected 
2394  to forego retrofitting. 
2395         Section 21. Subsections (3) and (4) of section 719.108, 
2396  Florida Statutes, are amended, and subsection (10) is added to 
2397  that section, to read: 
2398         719.108 Rents and assessments; liability; lien and 
2399  priority; interest; collection; cooperative ownership.— 
2400         (3) Rents and assessments, and installments on them, not 
2401  paid when due bear interest at the rate provided in the 
2402  cooperative documents from the date due until paid. This rate 
2403  may not exceed the rate allowed by law, and, if a no rate is not 
2404  provided in the cooperative documents, then interest accrues 
2405  shall accrue at 18 percent per annum. Also, If the cooperative 
2406  documents or bylaws so provide, the association may charge an 
2407  administrative late fee in addition to such interest, in an 
2408  amount not to exceed the greater of $25 or 5 percent of each 
2409  installment of the assessment for each delinquent installment 
2410  that the payment is late. Any payment received by an association 
2411  must shall be applied first to any interest accrued by the 
2412  association, then to any administrative late fee, then to any 
2413  costs and reasonable attorney’s fees incurred in collection, and 
2414  then to the delinquent assessment. The foregoing applies shall 
2415  be applicable notwithstanding any restrictive endorsement, 
2416  designation, or instruction placed on or accompanying a payment. 
2417  A late fee is not subject to chapter 687 or s. 719.303(3). 
2418         (4) The association has shall have a lien on each 
2419  cooperative parcel for any unpaid rents and assessments, plus 
2420  interest, any authorized administrative late fees, and any 
2421  reasonable costs for collection services for which the 
2422  association has contracted against the unit owner of the 
2423  cooperative parcel. If authorized by the cooperative documents, 
2424  the said lien shall also secures secure reasonable attorney’s 
2425  fees incurred by the association incident to the collection of 
2426  the rents and assessments or enforcement of such lien. The lien 
2427  is effective from and after the recording of a claim of lien in 
2428  the public records in the county in which the cooperative parcel 
2429  is located which states the description of the cooperative 
2430  parcel, the name of the unit owner, the amount due, and the due 
2431  dates. The lien expires shall expire if a claim of lien is not 
2432  filed within 1 year after the date the assessment was due, and 
2433  the no such lien does not shall continue for a longer period 
2434  than 1 year after the claim of lien has been recorded unless, 
2435  within that time, an action to enforce the lien is commenced in 
2436  a court of competent jurisdiction. Except as otherwise provided 
2437  in this chapter, a lien may not be filed by the association 
2438  against a cooperative parcel until 30 days after the date on 
2439  which a notice of intent to file a lien has been delivered to 
2440  the owner. 
2441         (a) The notice must be sent to the unit owner at the 
2442  address of the unit by first-class United States mail and: 
2443         1. If the most recent address of the unit owner on the 
2444  records of the association is the address of the unit, the 
2445  notice must be sent by registered or certified mail, return 
2446  receipt requested, to the unit owner at the address of the unit. 
2447         2. If the most recent address of the unit owner on the 
2448  records of the association is in the United States, but is not 
2449  the address of the unit, the notice must be sent by registered 
2450  or certified mail, return receipt requested, to the unit owner 
2451  at his or her most recent address. 
2452         3. If the most recent address of the unit owner on the 
2453  records of the association is not in the United States, the 
2454  notice must be sent by first-class United States mail to the 
2455  unit owner at his or her most recent address. 
2456         (b) A notice that is sent pursuant to this subsection is 
2457  deemed delivered upon mailing. No lien may be filed by the 
2458  association against a cooperative parcel until 30 days after the 
2459  date on which a notice of intent to file a lien has been served 
2460  on the unit owner of the cooperative parcel by certified mail or 
2461  by personal service in the manner authorized by chapter 48 and 
2462  the Florida Rules of Civil Procedure. 
2463         (10) If the unit is occupied by a tenant and the unit owner 
2464  is delinquent in paying any monetary obligation due to the 
2465  association, the association may make a written demand that the 
2466  tenant pay the future monetary obligations related to the 
2467  cooperative share to the association and the tenant must make 
2468  such payment. The demand is continuing in nature, and upon 
2469  demand, the tenant must pay the monetary obligations to the 
2470  association until the association releases the tenant or the 
2471  tenant discontinues tenancy in the unit. The association must 
2472  mail written notice to the unit owner of the association’s 
2473  demand that the tenant make payments to the association. The 
2474  association shall, upon request, provide the tenant with written 
2475  receipts for payments made. A tenant who acts in good faith in 
2476  response to a written demand from an association is immune from 
2477  any claim from the unit owner. 
2478         (a) If the tenant prepaid rent to the unit owner before 
2479  receiving the demand from the association and provides written 
2480  evidence of paying the rent to the association within 14 days 
2481  after receiving the demand, the tenant shall receive credit for 
2482  the prepaid rent for the applicable period and must make any 
2483  subsequent rental payments to the association to be credited 
2484  against the monetary obligations of the unit owner to the 
2485  association. 
2486         (b) The tenant is not liable for increases in the amount of 
2487  the regular monetary obligations due unless the tenant was 
2488  notified in writing of the increase at least 10 days before the 
2489  date on which the rent is due. The liability of the tenant may 
2490  not exceed the amount due from the tenant to the tenants’ 
2491  landlord. The tenant’s landlord shall provide the tenant a 
2492  credit against rents due to the unit owner in the amount of 
2493  monies paid to the association under this section. 
2494         (c) The association may issue notices under s. 83.56 and 
2495  may sue for eviction under ss. 83.59-83.625 as if the 
2496  association were a landlord under part II of chapter 83 if the 
2497  tenant fails to pay a required payment. However, the association 
2498  is not otherwise considered a landlord under chapter 83 and 
2499  specifically has no duties under s. 83.51. 
2500         (d) The tenant does not, by virtue of payment of monetary 
2501  obligations, have any of the rights of a unit owner to vote in 
2502  any election or to examine the books and records of the 
2503  association. 
2504         (e) A court may supersede the effect of this subsection by 
2505  appointing a receiver. 
2506         Section 22. Paragraph (b) of subsection (2), paragraphs (a) 
2507  and (c) of subsection (5), and paragraphs (b), (c), (d), (f), 
2508  and (g) of subsection (6) of section 720.303, Florida Statutes, 
2509  are amended, and subsection (12) is added to that section, to 
2510  read: 
2511         720.303 Association powers and duties; meetings of board; 
2512  official records; budgets; financial reporting; association 
2513  funds; recalls.— 
2514         (2) BOARD MEETINGS.— 
2515         (b) Members have the right to attend all meetings of the 
2516  board and to speak on any matter placed on the agenda by 
2517  petition of the voting interests for at least 3 minutes. The 
2518  association may adopt written reasonable rules expanding the 
2519  right of members to speak and governing the frequency, duration, 
2520  and other manner of member statements, which rules must be 
2521  consistent with this paragraph and may include a sign-up sheet 
2522  for members wishing to speak. Notwithstanding any other law, the 
2523  requirement that board meetings and committee meetings be open 
2524  to the members is inapplicable to meetings between the board or 
2525  a committee and the association’s attorney to discuss proposed 
2526  or pending litigation, or with respect to meetings of the board 
2527  held for the purpose of discussing personnel matters are not 
2528  required to be open to the members other than directors. 
2529         (5) INSPECTION AND COPYING OF RECORDS.—The official records 
2530  shall be maintained within the state and must be open to 
2531  inspection and available for photocopying by members or their 
2532  authorized agents at reasonable times and places within 10 
2533  business days after receipt of a written request for access. 
2534  This subsection may be complied with by having a copy of the 
2535  official records available for inspection or copying in the 
2536  community. If the association has a photocopy machine available 
2537  where the records are maintained, it must provide parcel owners 
2538  with copies on request during the inspection if the entire 
2539  request is limited to no more than 25 pages. 
2540         (a) The failure of an association to provide access to the 
2541  records within 10 business days after receipt of a written 
2542  request submitted by certified mail, return receipt requested, 
2543  creates a rebuttable presumption that the association willfully 
2544  failed to comply with this subsection. 
2545         (c) The association may adopt reasonable written rules 
2546  governing the frequency, time, location, notice, records to be 
2547  inspected, and manner of inspections, but may not require impose 
2548  a requirement that a parcel owner to demonstrate any proper 
2549  purpose for the inspection, state any reason for the inspection, 
2550  or limit a parcel owner’s right to inspect records to less than 
2551  one 8-hour business day per month. The association may impose 
2552  fees to cover the costs of providing copies of the official 
2553  records, including, without limitation, the costs of copying. 
2554  The association may charge up to 50 cents per page for copies 
2555  made on the association’s photocopier. If the association does 
2556  not have a photocopy machine available where the records are 
2557  kept, or if the records requested to be copied exceed 25 pages 
2558  in length, the association may have copies made by an outside 
2559  vendor or association management company personnel and may 
2560  charge the actual cost of copying, including any reasonable 
2561  costs involving personnel fees and charges at an hourly rate for 
2562  vendor or employee time to cover administrative costs to the 
2563  vendor or association. The association shall maintain an 
2564  adequate number of copies of the recorded governing documents, 
2565  to ensure their availability to members and prospective members. 
2566  Notwithstanding the provisions of this paragraph, the following 
2567  records are shall not be accessible to members or parcel owners: 
2568         1. Any record protected by the lawyer-client privilege as 
2569  described in s. 90.502 and any record protected by the work 
2570  product privilege, including, but not limited to, any record 
2571  prepared by an association attorney or prepared at the 
2572  attorney’s express direction which reflects a mental impression, 
2573  conclusion, litigation strategy, or legal theory of the attorney 
2574  or the association and which was prepared exclusively for civil 
2575  or criminal litigation or for adversarial administrative 
2576  proceedings or which was prepared in anticipation of imminent 
2577  civil or criminal litigation or imminent adversarial 
2578  administrative proceedings until the conclusion of the 
2579  litigation or adversarial administrative proceedings. 
2580         2. Information obtained by an association in connection 
2581  with the approval of the lease, sale, or other transfer of a 
2582  parcel. 
2583         3. Disciplinary, health, insurance, and Personnel records 
2584  of the association’s employees, including, but not limited to, 
2585  disciplinary, payroll, health, and insurance records. 
2586         4. Medical records of parcel owners or community residents. 
2587         5. Social security numbers, driver’s license numbers, 
2588  credit card numbers, electronic mailing addresses, telephone 
2589  numbers, emergency contact information, any addresses for a 
2590  parcel owner other than as provided for association notice 
2591  requirements, and other personal identifying information of any 
2592  person, excluding the person’s name, parcel designation, mailing 
2593  address, and property address. 
2594         6. Any electronic security measure that is used by the 
2595  association to safeguard data, including passwords. 
2596         7. The software and operating system used by the 
2597  association which allows the manipulation of data, even if the 
2598  owner owns a copy of the same software used by the association. 
2599  The data is part of the official records of the association. 
2600         (6) BUDGETS.— 
2601         (b) In addition to annual operating expenses, the budget 
2602  may include reserve accounts for capital expenditures and 
2603  deferred maintenance for which the association is responsible. 
2604  If reserve accounts are not established pursuant to paragraph 
2605  (d), funding of such reserves is limited to the extent that the 
2606  governing documents do not limit increases in assessments, 
2607  including reserves. If the budget of the association includes 
2608  reserve accounts established pursuant to paragraph (d), such 
2609  reserves shall be determined, maintained, and waived in the 
2610  manner provided in this subsection. Once an association provides 
2611  for reserve accounts pursuant to paragraph (d) in the budget, 
2612  the association shall thereafter determine, maintain, and waive 
2613  reserves in compliance with this subsection. This section does 
2614  not preclude the termination of a reserve account established 
2615  pursuant to this paragraph upon approval of a majority of the 
2616  total voting interests of the association. Upon such approval, 
2617  the terminating reserve account shall be removed from the 
2618  budget. 
2619         (c)1. If the budget of the association does not provide for 
2620  reserve accounts pursuant to paragraph (d) governed by this 
2621  subsection and the association is responsible for the repair and 
2622  maintenance of capital improvements that may result in a special 
2623  assessment if reserves are not provided, each financial report 
2624  for the preceding fiscal year required by subsection (7) must 
2625  shall contain the following statement in conspicuous type: 
2626 
2627         THE BUDGET OF THE ASSOCIATION DOES NOT PROVIDE FOR 
2628         RESERVE ACCOUNTS FOR CAPITAL EXPENDITURES AND DEFERRED 
2629         MAINTENANCE THAT MAY RESULT IN SPECIAL ASSESSMENTS. 
2630         OWNERS MAY ELECT TO PROVIDE FOR RESERVE ACCOUNTS 
2631         PURSUANT TO THE PROVISIONS OF SECTION 720.303(6), 
2632         FLORIDA STATUTES, UPON OBTAINING THE APPROVAL OF NOT 
2633         LESS THAN A MAJORITY OF THE TOTAL VOTING INTERESTS OF 
2634         THE ASSOCIATION BY VOTE OF THE MEMBERS AT A MEETING OR 
2635         BY WRITTEN CONSENT. 
2636         2. If the budget of the association does provide for 
2637  funding accounts for deferred expenditures, including, but not 
2638  limited to, funds for capital expenditures and deferred 
2639  maintenance, but such accounts are not created or established 
2640  pursuant to paragraph (d), each financial report for the 
2641  preceding fiscal year required under subsection (7) must also 
2642  contain the following statement in conspicuous type: 
2643 
2644         THE BUDGET OF THE ASSOCIATION PROVIDES FOR LIMITED 
2645         VOLUNTARY DEFERRED EXPENDITURE ACCOUNTS, INCLUDING 
2646         CAPITAL EXPENDITURES AND DEFERRED MAINTENANCE, SUBJECT 
2647         TO LIMITS ON FUNDING CONTAINED IN OUR GOVERNING 
2648         DOCUMENTS. BECAUSE THE OWNERS HAVE NOT ELECTED TO 
2649         PROVIDE FOR RESERVE ACCOUNTS PURSUANT TO SECTION 
2650         720.303(6), FLORIDA STATUTES, THESE FUNDS ARE NOT 
2651         SUBJECT TO THE RESTRICTIONS ON USE OF SUCH FUNDS SET 
2652         FORTH IN THAT STATUTE, NOR ARE RESERVES CALCULATED IN 
2653         ACCORDANCE WITH THAT STATUTE. 
2654         (d) An association is shall be deemed to have provided for 
2655  reserve accounts if when reserve accounts have been initially 
2656  established by the developer or if when the membership of the 
2657  association affirmatively elects to provide for reserves. If 
2658  reserve accounts are not initially provided for by the 
2659  developer, the membership of the association may elect to do so 
2660  upon the affirmative approval of not less than a majority of the 
2661  total voting interests of the association. Such approval may be 
2662  obtained attained by vote of the members at a duly called 
2663  meeting of the membership or by the upon a written consent of 
2664  executed by not less than a majority of the total voting 
2665  interests of the association in the community. The approval 
2666  action of the membership must shall state that reserve accounts 
2667  shall be provided for in the budget and must designate the 
2668  components for which the reserve accounts are to be established. 
2669  Upon approval by the membership, the board of directors shall 
2670  include provide for the required reserve accounts for inclusion 
2671  in the budget in the next fiscal year following the approval and 
2672  in each year thereafter. Once established as provided in this 
2673  subsection, the reserve accounts must shall be funded or 
2674  maintained or shall have their funding waived in the manner 
2675  provided in paragraph (f). 
2676         (f) After one or more Once a reserve account or reserve 
2677  accounts are established, the membership of the association, 
2678  upon a majority vote at a meeting at which a quorum is present, 
2679  may provide for no reserves or less reserves than required by 
2680  this section. If a meeting of the unit owners has been called to 
2681  determine whether to waive or reduce the funding of reserves and 
2682  no such result is not achieved or a quorum is not present, the 
2683  reserves as included in the budget shall go into effect. After 
2684  the turnover, the developer may vote its voting interest to 
2685  waive or reduce the funding of reserves. Any vote taken pursuant 
2686  to this subsection to waive or reduce reserves is shall be 
2687  applicable only to one budget year. 
2688         (g) Funding formulas for reserves authorized by this 
2689  section must shall be based on either a separate analysis of 
2690  each of the required assets or a pooled analysis of two or more 
2691  of the required assets. 
2692         1. If the association maintains separate reserve accounts 
2693  for each of the required assets, the amount of the contribution 
2694  to each reserve account is shall be the sum of the following two 
2695  calculations: 
2696         a. The total amount necessary, if any, to bring a negative 
2697  component balance to zero. 
2698         b. The total estimated deferred maintenance expense or 
2699  estimated replacement cost of the reserve component less the 
2700  estimated balance of the reserve component as of the beginning 
2701  of the period for which the budget will be in effect. The 
2702  remainder, if greater than zero, shall be divided by the 
2703  estimated remaining useful life of the component. 
2704 
2705  The formula may be adjusted each year for changes in estimates 
2706  and deferred maintenance performed during the year and may 
2707  include factors such as inflation and earnings on invested 
2708  funds. 
2709         2. If the association maintains a pooled account of two or 
2710  more of the required reserve assets, the amount of the 
2711  contribution to the pooled reserve account as disclosed on the 
2712  proposed budget may shall not be less than that required to 
2713  ensure that the balance on hand at the beginning of the period 
2714  for which the budget will go into effect plus the projected 
2715  annual cash inflows over the remaining estimated useful life of 
2716  all of the assets that make up the reserve pool are equal to or 
2717  greater than the projected annual cash outflows over the 
2718  remaining estimated useful lives of all of the assets that make 
2719  up the reserve pool, based on the current reserve analysis. The 
2720  projected annual cash inflows may include estimated earnings 
2721  from investment of principal and accounts receivable minus the 
2722  allowance for doubtful accounts. The reserve funding formula may 
2723  shall not include any type of balloon payments. 
2724         (12) COMPENSATION PROHIBITED.—A director, officer, or 
2725  committee member of the association may not directly receive any 
2726  salary or compensation from the association for the performance 
2727  of duties as a director, officer, or committee member and may 
2728  not in any other way benefit financially from service to the 
2729  association. This subsection does not preclude: 
2730         (a) Participation by such person in a financial benefit 
2731  accruing to all or a significant number of members as a result 
2732  of actions lawfully taken by the board or a committee of which 
2733  he or she is a member, including, but not limited to, routine 
2734  maintenance, repair, or replacement of community assets. 
2735         (b) Reimbursement for out-of-pocket expenses incurred by 
2736  such person on behalf of the association, subject to approval in 
2737  accordance with procedures established by the association’s 
2738  governing documents or, in the absence of such procedures, in 
2739  accordance with an approval process established by the board. 
2740         (c) Any recovery of insurance proceeds derived from a 
2741  policy of insurance maintained by the association for the 
2742  benefit of its members. 
2743         (d) Any fee or compensation authorized in the governing 
2744  documents. 
2745         (e) Any fee or compensation authorized in advance by a vote 
2746  of a majority of the voting interests voting in person or by 
2747  proxy at a meeting of the members. 
2748         (f) A developer or its representative from serving as a 
2749  director, officer, or committee member of the association and 
2750  benefitting financially from service to the association. 
2751         Section 23. Paragraph (b) of subsection (2) of section 
2752  720.304, Florida Statutes, is amended to read: 
2753         720.304 Right of owners to peaceably assemble; display of 
2754  flag; SLAPP suits prohibited.— 
2755         (2) 
2756         (b) Any homeowner may erect a freestanding flagpole no more 
2757  than 20 feet high on any portion of the homeowner’s real 
2758  property, regardless of any covenants, restrictions, bylaws, 
2759  rules, or requirements of the association, if the flagpole does 
2760  not obstruct sightlines at intersections and is not erected 
2761  within or upon an easement. The homeowner may further display in 
2762  a respectful manner from that flagpole, regardless of any 
2763  covenants, restrictions, bylaws, rules, or requirements of the 
2764  association, one official United States flag, not larger than 4 
2765  1/2 feet by 6 feet, and may additionally display one official 
2766  flag of the State of Florida or the United States Army, Navy, 
2767  Air Force, Marines, or Coast Guard, or a POW-MIA flag. Such 
2768  additional flag must be equal in size to or smaller than the 
2769  United States flag. The flagpole and display are subject to all 
2770  building codes, zoning setbacks, and other applicable 
2771  governmental regulations, including, but not limited to, noise 
2772  and lighting ordinances in the county or municipality in which 
2773  the flagpole is erected and all setback and locational criteria 
2774  contained in the governing documents. 
2775         Section 24. Subsection (2) of section 720.305, Florida 
2776  Statutes, is amended to read: 
2777         720.305 Obligations of members; remedies at law or in 
2778  equity; levy of fines and suspension of use rights.— 
2779         (2) If a member is delinquent for more than 90 days in 
2780  paying a monetary obligation due the association the governing 
2781  documents so provide, an association may suspend, until such 
2782  monetary obligation is paid for a reasonable period of time, the 
2783  rights of a member or a member’s tenants, guests, or invitees, 
2784  or both, to use common areas and facilities and may levy 
2785  reasonable fines of up to, not to exceed $100 per violation, 
2786  against any member or any tenant, guest, or invitee. A fine may 
2787  be levied for on the basis of each day of a continuing 
2788  violation, with a single notice and opportunity for hearing, 
2789  except that a no such fine may not shall exceed $1,000 in the 
2790  aggregate unless otherwise provided in the governing documents. 
2791  A fine of less than $1,000 may shall not become a lien against a 
2792  parcel. In any action to recover a fine, the prevailing party is 
2793  entitled to collect its reasonable attorney’s fees and costs 
2794  from the nonprevailing party as determined by the court. The 
2795  provisions regarding the suspension-of-use rights do not apply 
2796  to the portion of common areas that must be used to provide 
2797  access to the parcel or utility services provided to the parcel. 
2798         (a) A fine or suspension may not be imposed without notice 
2799  of at least 14 days notice to the person sought to be fined or 
2800  suspended and an opportunity for a hearing before a committee of 
2801  at least three members appointed by the board who are not 
2802  officers, directors, or employees of the association, or the 
2803  spouse, parent, child, brother, or sister of an officer, 
2804  director, or employee. If the committee, by majority vote, does 
2805  not approve a proposed fine or suspension, it may not be 
2806  imposed. If the association imposes a fine or suspension, the 
2807  association must provide written notice of such fine or 
2808  suspension by mail or hand delivery to the parcel owner and, if 
2809  applicable, to any tenant, licensee, or invitee of the parcel 
2810  owner. 
2811         (b) The requirements of this subsection do not apply to the 
2812  imposition of suspensions or fines upon any member because of 
2813  the failure of the member to pay assessments or other charges 
2814  when due if such action is authorized by the governing 
2815  documents. 
2816         (b)(c) Suspension of common-area-use rights do shall not 
2817  impair the right of an owner or tenant of a parcel to have 
2818  vehicular and pedestrian ingress to and egress from the parcel, 
2819  including, but not limited to, the right to park. 
2820         Section 25. Subsections (7), (8), and (9) of section 
2821  720.306, Florida Statutes, are amended to read: 
2822         720.306 Meetings of members; voting and election 
2823  procedures; amendments.— 
2824         (7) ADJOURNMENT.—Unless the bylaws require otherwise, 
2825  adjournment of an annual or special meeting to a different date, 
2826  time, or place must be announced at that meeting before an 
2827  adjournment is taken, or notice must be given of the new date, 
2828  time, or place pursuant to s. 720.303(2). Any business that 
2829  might have been transacted on the original date of the meeting 
2830  may be transacted at the adjourned meeting. If a new record date 
2831  for the adjourned meeting is or must be fixed under s. 607.0707 
2832  s. 617.0707, notice of the adjourned meeting must be given to 
2833  persons who are entitled to vote and are members as of the new 
2834  record date but were not members as of the previous record date. 
2835         (8) PROXY VOTING.—The members have the right, unless 
2836  otherwise provided in this subsection or in the governing 
2837  documents, to vote in person or by proxy. 
2838         (a) To be valid, a proxy must be dated, must state the 
2839  date, time, and place of the meeting for which it was given, and 
2840  must be signed by the authorized person who executed the proxy. 
2841  A proxy is effective only for the specific meeting for which it 
2842  was originally given, as the meeting may lawfully be adjourned 
2843  and reconvened from time to time, and automatically expires 90 
2844  days after the date of the meeting for which it was originally 
2845  given. A proxy is revocable at any time at the pleasure of the 
2846  person who executes it. If the proxy form expressly so provides, 
2847  any proxy holder may appoint, in writing, a substitute to act in 
2848  his or her place. 
2849         (b) If the governing documents permit voting by secret 
2850  ballot by members who are not in attendance at a meeting of the 
2851  members for the election of directors, such ballots must be 
2852  placed in an inner envelope with no identifying markings and 
2853  mailed or delivered to the association in an outer envelope 
2854  bearing identifying information reflecting the name of the 
2855  member, the lot or parcel for which the vote is being cast, and 
2856  the signature of the lot or parcel owner casting that ballot. If 
2857  the eligibility of the member to vote is confirmed and no other 
2858  ballot has been submitted for that lot or parcel, the inner 
2859  envelope shall be removed from the outer envelope bearing the 
2860  identification information, placed with the ballots which were 
2861  personally cast, and opened when the ballots are counted. If 
2862  more than one ballot is submitted for a lot or parcel, the 
2863  ballots for that lot or parcel shall be disqualified. Any vote 
2864  by ballot received after the closing of the balloting may not be 
2865  considered. 
2866         (9) ELECTIONS AND BOARD VACANCIES.—Elections of directors 
2867  must be conducted in accordance with the procedures set forth in 
2868  the governing documents of the association. All members of the 
2869  association are shall be eligible to serve on the board of 
2870  directors, and a member may nominate himself or herself as a 
2871  candidate for the board at a meeting where the election is to be 
2872  held or, if the election process allows voting by absentee 
2873  ballot, in advance of the balloting. Except as otherwise 
2874  provided in the governing documents, boards of directors must be 
2875  elected by a plurality of the votes cast by eligible voters. Any 
2876  election dispute between a member and an association must be 
2877  submitted to mandatory binding arbitration with the division. 
2878  Such proceedings must shall be conducted in the manner provided 
2879  by s. 718.1255 and the procedural rules adopted by the division. 
2880  Unless otherwise provided in the bylaws, any vacancy occurring 
2881  on the board before the expiration of a term may be filled by an 
2882  affirmative vote of the majority of the remaining directors, 
2883  even if the remaining directors constitute less than a quorum, 
2884  or by the sole remaining director. In the alternative, a board 
2885  may hold an election to fill the vacancy, in which case the 
2886  election procedures must conform to the requirements of the 
2887  governing documents. Unless otherwise provided in the bylaws, a 
2888  board member appointed or elected under this section is 
2889  appointed for the unexpired term of the seat being filled. 
2890  Filling vacancies created by recall is governed by s. 
2891  720.303(10) and rules adopted by the division. 
2892         Section 26. Subsection (8) is added to section 720.3085, 
2893  Florida Statutes, to read: 
2894         720.3085 Payment for assessments; lien claims.— 
2895         (8) If the parcel is occupied by a tenant and the parcel 
2896  owner is delinquent in paying any monetary obligation due to the 
2897  association, the association may demand that the tenant pay to 
2898  the association the future monetary obligations related to the 
2899  parcel. The demand is continuing in nature, and upon demand, the 
2900  tenant must continue to pay the monetary obligations until the 
2901  association releases the tenant or the tenant discontinues 
2902  tenancy in the parcel. A tenant who acts in good faith in 
2903  response to a written demand from an association is immune from 
2904  any claim from the parcel owner. 
2905         (a) If the tenant prepaid rent to the parcel owner before 
2906  receiving the demand from the association and provides written 
2907  evidence of paying the rent to the association within 14 days 
2908  after receiving the demand, the tenant shall receive credit for 
2909  the prepaid rent for the applicable period and must make any 
2910  subsequent rental payments to the association to be credited 
2911  against the monetary obligations of the parcel owner to the 
2912  association. The association shall, upon request, provide the 
2913  tenant with written receipts for payments made. The association 
2914  shall mail written notice to the parcel owner of the 
2915  association’s demand that the tenant pay monetary obligations to 
2916  the association. 
2917         (b) The tenant is not liable for increases in the amount of 
2918  the monetary obligations due unless the tenant was notified in 
2919  writing of the increase at least 10 days before the date on 
2920  which the rent is due. The tenant shall be given a credit 
2921  against rents due to the parcel owner in the amount of 
2922  assessments paid to the association. 
2923         (c) The association may issue notices under s. 83.56 and 
2924  may sue for eviction under ss. 83.59-83.625 as if the 
2925  association were a landlord under part II of chapter 83 if the 
2926  tenant fails to pay a monetary obligation. However, the 
2927  association is not otherwise considered a landlord under chapter 
2928  83 and specifically has no duties under s. 83.51. 
2929         (d) The tenant does not, by virtue of payment of monetary 
2930  obligations, have any of the rights of a parcel owner to vote in 
2931  any election or to examine the books and records of the 
2932  association. 
2933         (e) A court may supersede the effect of this subsection by 
2934  appointing a receiver. 
2935         Section 27. Subsection (6) is added to section 720.31, 
2936  Florida Statutes, to read: 
2937         720.31 Recreational leaseholds; right to acquire; 
2938  escalation clauses.— 
2939         (6) An association may enter into agreements to acquire 
2940  leaseholds, memberships, and other possessory or use interests 
2941  in lands or facilities, including, but not limited to, country 
2942  clubs, golf courses, marinas, submerged land, parking areas, 
2943  conservation areas, and other recreational facilities. An 
2944  association may enter into such agreements regardless of whether 
2945  the lands or facilities are contiguous to the lands of the 
2946  community or whether such lands or facilities are intended to 
2947  provide enjoyment, recreation, or other use or benefit to the 
2948  owners. All leaseholds, memberships, and other possessory or use 
2949  interests existing or created at the time of recording the 
2950  declaration must be stated and fully described in the 
2951  declaration. Subsequent to recording the declaration, agreements 
2952  acquiring leaseholds, memberships, or other possessory or use 
2953  interests not entered into within 12 months after recording the 
2954  declaration may be entered into only if authorized by the 
2955  declaration as a material alteration or substantial addition to 
2956  the common areas or association property. If the declaration is 
2957  silent, any such transaction requires the approval of 75 percent 
2958  of the total voting interests of the association. The 
2959  declaration may provide that the rental, membership fees, 
2960  operations, replacements, or other expenses are common expenses; 
2961  impose covenants and restrictions concerning their use; and 
2962  contain other provisions not inconsistent with this subsection. 
2963  An association exercising its rights under this subsection may 
2964  join with other associations that are part of the same 
2965  development or with a master association responsible for the 
2966  enforcement of shared covenants, conditions, and restrictions in 
2967  carrying out the intent of this subsection. This subsection is 
2968  intended to clarify law in existence before July 1, 2010. 
2969         Section 28. Section 720.315, Florida Statutes, is created 
2970  to read: 
2971         720.315 Passage of special assessments.—Before turnover, 
2972  the board of directors controlled by the developer may not levy 
2973  a special assessment unless a majority of the parcel owners 
2974  other than the developer have approved the special assessment by 
2975  a majority vote at a duly called special meeting of the 
2976  membership at which a quorum is present. 
2977         Section 29. This act shall take effect July 1, 2010.