Bill Text: FL S1532 | 2016 | Regular Session | Introduced
Bill Title: Community Associations
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Failed) 2016-03-11 - Died in Regulated Industries [S1532 Detail]
Download: Florida-2016-S1532-Introduced.html
Florida Senate - 2016 SB 1532 By Senator Soto 14-01623-16 20161532__ 1 A bill to be entitled 2 An act relating to community associations; amending s. 3 20.165, F.S.; renaming the Division of Florida 4 Condominiums, Timeshares, and Mobile Homes as the 5 Division of Common Interest Communities; amending ss. 6 34.01, 73.073, 192.037, 193.023, 194.181, 201.02, 7 212.08, 213.053, 316.006, 316.2127, 326.002, 326.006, 8 336.125, 373.62, 380.0651, 418.22, 418.24, 455.116, 9 468.436, 475.455, 509.013, 509.241, 509.512, 553.835, 10 558.002, 559.935, 617.01401, 617.0505, 617.0601, 11 617.0701, 617.0721, 617.0802, 617.0808, 617.0831, 12 617.1606, 617.1703, 624.462, 626.854, 689.28, 702.09, 13 712.01, and 712.11, F.S.; conforming provisions to 14 changes made by the act; amending s. 718.101, F.S.; 15 revising a short title; amending s. 718.102, F.S.; 16 revising and providing purposes of ch. 718, F.S.; 17 amending s. 718.103, F.S.; revising and providing 18 definitions; amending s. 718.1035, F.S.; providing 19 that use of a power of attorney does not create 20 eligibility to serve on the board of directors; 21 amending s. 718.104, F.S.; revising and providing 22 provisions relating to the creation of common interest 23 communities and the contents of declaration; amending 24 s. 718.1045, F.S.; conforming provisions to changes 25 made by the act; amending s. 718.105, F.S.; revising 26 and providing provisions relating to recording of 27 documents; amending s. 718.106, F.S.; revising and 28 providing provisions relating to common interest 29 community parcels and appurtenances; amending s. 30 718.107, F.S.; making a technical change; amending ss. 31 718.108 and 718.1085, F.S.; conforming provisions to 32 changes made by the act; amending s. 718.109, F.S.; 33 revising and providing provisions relating to legal 34 description of common interest community parcels; 35 amending s. 718.110, F.S.; revising and providing 36 provisions relating to amendment of documents; 37 amending s. 718.111, F.S.; revising and providing 38 provisions relating to the common interest community 39 association; amending s. 718.112, F.S.; revising and 40 providing provisions relating to bylaws; amending s. 41 718.1124, F.S.; conforming provisions to changes made 42 by the act; amending s. 718.113, F.S.; revising and 43 providing provisions relating to maintenance, 44 limitation upon improvement, display of flag, 45 hurricane protection, display of spiritual 46 decorations, access ramps, window decals, xeriscape, 47 and mold and mildew; amending s. 718.114, F.S.; 48 revising and providing provisions relating to 49 association powers; amending s. 718.115, F.S.; 50 revising and providing provisions relating to common 51 expenses and common surplus; amending s. 718.116, 52 F.S.; revising and providing provisions relating to 53 assessments, liability, lien and priority, interest, 54 and collection; amending s. 718.117, F.S.; deleting 55 provisions authorizing the optional termination of a 56 condominium under certain circumstances; conforming 57 provisions to changes made by the act; amending s. 58 718.118, F.S.; conforming provisions to changes made 59 by the act; amending s. 718.119, F.S.; making an 60 editorial change; amending s. 718.120, F.S.; revising 61 and providing provisions relating to separate taxation 62 of parcels and survival of declaration after tax sale; 63 amending s. 718.121, F.S.; revising and providing 64 provisions relating to liens; amending ss. 718.122, 65 718.1224, 718.123, 718.1232, 718.124, and 718.125, 66 F.S.; conforming provisions to changes made by the 67 act; amending s. 718.1255, F.S.; revising provisions 68 relating to disputes involving election 69 irregularities; amending ss. 718.1256, 718.1265, and 70 718.127, F.S.; conforming provisions to changes made 71 by the act; transferring and renumbering s. 719.114, 72 F.S.; amending ss. 718.202 and 718.203, F.S.; 73 conforming provisions to changes made by the act; 74 amending s. 718.301, F.S.; revising and providing 75 provisions relating to transfer of association control 76 and claims of defect by association; amending ss. 77 718.302, 718.3025, and 718.3026, F.S.; conforming 78 provisions to changes made by the act; amending s. 79 718.303, F.S.; revising and providing provisions 80 relating to obligations of owners and occupants and 81 remedies; amending s. 718.401, F.S.; revising and 82 providing provisions relating to leaseholds; amending 83 ss. 718.4015, 718.402, 718.403, 718.404, 718.405, 84 718.406, 718.501, 718.5011, and 718.5012, F.S.; 85 conforming provisions to changes made by the act; 86 creating s. 718.50156, F.S.; creating the Community 87 Association Living Study Council; providing for 88 membership, duties, and meetings of the council; 89 amending s. 718.502, F.S.; conforming provisions to 90 changes made by the act; amending s. 718.503, F.S.; 91 revising and providing provisions relating to 92 developer disclosure prior to sale; amending s. 93 718.504, F.S.; revising and providing provisions 94 relating to prospectus and offering circulars; 95 amending ss. 718.506, 718.507, 718.508, 718.509, 96 718.604, and 718.606, F.S.; conforming provisions to 97 changes made by the act; amending s. 718.608, F.S.; 98 revising and providing provisions relating to notice 99 of intended conversion; amending s. 718.616, F.S.; 100 conforming provisions to changes made by the act; 101 amending s. 718.618, F.S.; revising and providing 102 provisions relating to converter reserve accounts and 103 warranties; amending ss. 718.62 and 718.621, F.S.; 104 conforming provisions to changes made by the act; 105 repealing part VII of ch. 718, F.S., relating to the 106 Distressed Condominium Relief Act; repealing ss. 107 719.101, 719.102, 719.103, 719.1035, 719.104, 719.105, 108 719.1055, 719.106, 719.1064, 719.1065, 719.107, 109 719.108, 719.109, 719.110, 719.111, 719.112, 719.1124, 110 719.115, 719.1255, 719.127, 719.128, 719.129, 719.202, 111 719.203, 719.301, 719.302, 719.3026, 719.303, 719.304, 112 719.401, 719.4015, 719.402, 719.403, 719.501, 719.502, 113 719.503, 719.504, 719.505, 719.506, 719.507, 719.508, 114 719.604, 719.606, 719.608, 719.61, 719.612, 719.614, 115 719.616, 719.618, 719.62, 719.621, and 719.622, F.S., 116 relating to cooperatives; repealing ch. 720, F.S., 117 relating to homeowners’ associations; amending ss. 118 721.03, 721.05, 721.07, 721.08, 721.13, 721.14, 119 721.15, 721.16, 721.165, 721.17, 721.20, 721.24, 120 721.26, 721.28, 721.301, 721.82, 721.855, 721.86, 121 723.003, 723.006, 723.009, 723.0611, 723.073, 122 723.0751, 723.078, 723.079, 723.0791, 723.1255, 123 768.1325, 849.085, and 849.0931, F.S.; conforming 124 provisions to changes made by the act; conforming 125 cross-references; making technical changes; providing 126 an effective date. 127 128 Be It Enacted by the Legislature of the State of Florida: 129 130 Section 1. Paragraph (e) of subsection (2) of section 131 20.165, Florida Statutes, is amended to read: 132 20.165 Department of Business and Professional Regulation. 133 There is created a Department of Business and Professional 134 Regulation. 135 (2) The following divisions of the Department of Business 136 and Professional Regulation are established: 137 (e) Division of Common Interest CommunitiesFlorida138Condominiums, Timeshares, and Mobile Homes. 139 Section 2. Subsection (1) of section 34.01, Florida 140 Statutes, is amended to read: 141 34.01 Jurisdiction of county court.— 142 (1) County courts shall have original jurisdiction: 143 (a) In all misdemeanor cases not cognizable by the circuit 144 courts; 145 (b) Of all violations of municipal and county ordinances; 146 (c) Of all actions at law in which the matter in 147 controversy does not exceed the sum of $15,000, exclusive of 148 interest, costs, and attorney’s fees, except those within the 149 exclusive jurisdiction of the circuit courts; and 150 (d) Of disputes occurring in thehomeowners’associations 151 as described in chapter 718s. 720.311(2)(a), which shall be 152 concurrent with jurisdiction of the circuit courts. 153 Section 3. Subsection (2) of section 73.073, Florida 154 Statutes, is amended to read: 155 73.073 Eminent domain procedure with respect to condominium 156 common elements.— 157 (2) With respect to the exercise of eminent domain or a 158 negotiated sale for the purchase or taking of a portion of the 159 common elements of a condominium, the condemning authority shall 160 have the responsibility of contacting the condominium 161 association and acquiring the most recent rolls indicating the 162 names of the unit owners or contacting the appropriate taxing 163 authority to obtain the names of the owners of record on the tax 164 rolls. Notification shall be sent by certified mail, return 165 receipt requested, to the unit owners of record of the 166 condominium units by the condemning authority indicating the 167 intent to purchase or take the required property and requesting 168 a response from the unit owner. The condemning authority shall 169 be responsible for the expense of sending notification pursuant 170 to this section. Such notice shall, at a minimum, include: 171 (a) The name and address of the condemning authority. 172 (b) A written or visual description of the property. 173 (c) The public purpose for which the property is needed. 174 (d) The appraisal value of the property. 175 (e) A clear, concise statement relating to the unit owner’s 176 right to object to the taking or appraisal value and the 177 procedures and effects of exercising that right. 178 (f) A clear, concise statement relating to the power of the 179 association to convey the property on behalf of the unit owners 180 if no objection to the taking or appraisal value is raised, and 181 the effects of this alternative on the unit owner. 182 183 The Division of Common Interest CommunitiesFlorida184Condominiums, Timeshares, and Mobile Homesof the Department of 185 Business and Professional Regulation may adopt, by rule, a 186 standard form for such notice and may require the notice to 187 include any additional relevant information. 188 Section 4. Paragraphs (b) and (e) of subsection (6) of 189 section 192.037, Florida Statutes, are amended to read: 190 192.037 Fee timeshare real property; taxes and assessments; 191 escrow.— 192 (6) 193 (b) If the managing entity is a common interest community 194condominiumassociation subject to the provisions of chapter 718 195or a cooperative association subject to the provisions of196chapter 719, the control of which has been turned over to owners 197 other than the developer, the escrow account must be maintained 198 by the association; otherwise, the escrow account must be placed 199 with an independent escrow agent, who shall comply with the 200 provisions of chapter 721 relating to escrow agents. 201 (e) On or before May 1 of each year, a statement of 202 receipts and disbursements of the escrow account must be filed 203 with the Division of Common Interest CommunitiesFlorida204Condominiums, Timeshares, and Mobile Homesof the Department of 205 Business and Professional Regulation, which may enforce this 206 paragraph pursuant to s. 721.26. This statement must 207 appropriately show the amount of principal and interest in such 208 account. 209 Section 5. Subsection (6) of section 193.023, Florida 210 Statutes, is amended to read: 211 193.023 Duties of the property appraiser in making 212 assessments.— 213 (6) In making assessments of cooperative parcels, the 214 property appraiser shall use the method required by s. 718.129 215719.114. 216 Section 6. Subsection (1) of section 194.181, Florida 217 Statutes, is amended to read: 218 194.181 Parties to a tax suit.— 219 (1) The plaintiff in any tax suit shall be: 220 (a) The taxpayer or other person contesting the assessment 221 of any tax, the payment of which he or she is responsible for 222 under a statute or a person who is responsible for the entire 223 tax payment pursuant to a contract and has the written consent 224 of the property owner, or the common interest community 225condominiumassociation, cooperative association, or homeowners’226associationas describeddefinedin chapter 718s. 723.075which 227 operates the units subject to the assessment; or 228 (b) The property appraiser pursuant to s. 194.036. 229 Section 7. Subsection (2) of section 201.02, Florida 230 Statutes, is amended to read: 231 201.02 Tax on deeds and other instruments relating to real 232 property or interests in real property.— 233 (2) The tax imposed by subsection (1) shall also be payable 234 upon documents by which the right is granted to a tenant 235 stockholder to occupy an apartment in a building owned by a 236 cooperative apartment corporation or in a dwelling on real 237 property owned by any other form of cooperative associationas238defined in s. 719.103. 239 Section 8. Paragraph (g) of subsection (5) of section 240 212.08, Florida Statutes, is amended to read: 241 212.08 Sales, rental, use, consumption, distribution, and 242 storage tax; specified exemptions.—The sale at retail, the 243 rental, the use, the consumption, the distribution, and the 244 storage to be used or consumed in this state of the following 245 are hereby specifically exempt from the tax imposed by this 246 chapter. 247 (5) EXEMPTIONS; ACCOUNT OF USE.— 248 (g) Building materials used in the rehabilitation of real 249 property located in an enterprise zone.— 250 1. Building materials used in the rehabilitation of real 251 property located in an enterprise zone are exempt from the tax 252 imposed by this chapter upon an affirmative showing to the 253 satisfaction of the department that the items have been used for 254 the rehabilitation of real property located in an enterprise 255 zone. Except as provided in subparagraph 2., this exemption 256 inures to the owner, lessee, or lessor at the time the real 257 property is rehabilitated, but only through a refund of 258 previously paid taxes. To receive a refund pursuant to this 259 paragraph, the owner, lessee, or lessor of the rehabilitated 260 real property must file an application under oath with the 261 governing body or enterprise zone development agency having 262 jurisdiction over the enterprise zone where the business is 263 located, as applicable. A single application for a refund may be 264 submitted for multiple, contiguous parcels that were part of a 265 single parcel that was divided as part of the rehabilitation of 266 the property. All other requirements of this paragraph apply to 267 each parcel on an individual basis. The application must 268 include: 269 a. The name and address of the person claiming the refund. 270 b. An address and assessment roll parcel number of the 271 rehabilitated real property for which a refund of previously 272 paid taxes is being sought. 273 c. A description of the improvements made to accomplish the 274 rehabilitation of the real property. 275 d. A copy of a valid building permit issued by the county 276 or municipal building department for the rehabilitation of the 277 real property. 278 e. A sworn statement, under penalty of perjury, from the 279 general contractor licensed in this state with whom the 280 applicant contracted to make the improvements necessary to 281 rehabilitate the real property, which lists the building 282 materials used to rehabilitate the real property, the actual 283 cost of the building materials, and the amount of sales tax paid 284 in this state on the building materials. If a general contractor 285 was not used, the applicant, not a general contractor, shall 286 make the sworn statement required by this sub-subparagraph. 287 Copies of the invoices that evidence the purchase of the 288 building materials used in the rehabilitation and the payment of 289 sales tax on the building materials must be attached to the 290 sworn statement provided by the general contractor or by the 291 applicant. Unless the actual cost of building materials used in 292 the rehabilitation of real property and the payment of sales 293 taxes is documented by a general contractor or by the applicant 294 in this manner, the cost of the building materials is deemed to 295 be an amount equal to 40 percent of the increase in assessed 296 value for ad valorem tax purposes. 297 f. The identifying number assigned pursuant to s. 290.0065 298 to the enterprise zone in which the rehabilitated real property 299 is located. 300 g. A certification by the local building code inspector 301 that the improvements necessary to rehabilitate the real 302 property are substantially completed. 303 h. A statement of whether the business is a small business 304 as defined by s. 288.703. 305 i. If applicable, the name and address of each permanent 306 employee of the business, including, for each employee who is a 307 resident of an enterprise zone, the identifying number assigned 308 pursuant to s. 290.0065 to the enterprise zone in which the 309 employee resides. 310 2. This exemption inures to a municipality, county, other 311 governmental unit or agency, or nonprofit community-based 312 organization through a refund of previously paid taxes if the 313 building materials used in the rehabilitation are paid for from 314 the funds of a community development block grant, State Housing 315 Initiatives Partnership Program, or similar grant or loan 316 program. To receive a refund, a municipality, county, other 317 governmental unit or agency, or nonprofit community-based 318 organization must file an application that includes the same 319 information required in subparagraph 1. In addition, the 320 application must include a sworn statement signed by the chief 321 executive officer of the municipality, county, other 322 governmental unit or agency, or nonprofit community-based 323 organization seeking a refund which states that the building 324 materials for which a refund is sought were funded by a 325 community development block grant, State Housing Initiatives 326 Partnership Program, or similar grant or loan program. 327 3. Within 10 working days after receipt of an application, 328 the governing body or enterprise zone development agency shall 329 review the application to determine if it contains all the 330 information required by subparagraph 1. or subparagraph 2. and 331 meets the criteria set out in this paragraph. The governing body 332 or agency shall certify all applications that contain the 333 required information and are eligible to receive a refund. If 334 applicable, the governing body or agency shall also certify if 335 20 percent of the employees of the business are residents of an 336 enterprise zone, excluding temporary and part-time employees. 337 The certification must be in writing, and a copy of the 338 certification shall be transmitted to the executive director of 339 the department. The applicant is responsible for forwarding a 340 certified application to the department within the time 341 specified in subparagraph 4. 342 4. An application for a refund must be submitted to the 343 department within 6 months after the rehabilitation of the 344 property is deemed to be substantially completed by the local 345 building code inspector or by November 1 after the rehabilitated 346 property is first subject to assessment. 347 5. Only one exemption through a refund of previously paid 348 taxes for the rehabilitation of real property is permitted for 349 any single parcel of property unless there is a change in 350 ownership, a new lessor, or a new lessee of the real property. A 351 refund may not be granted unless the amount to be refunded 352 exceeds $500. A refund may not exceed the lesser of 97 percent 353 of the Florida sales or use tax paid on the cost of the building 354 materials used in the rehabilitation of the real property as 355 determined pursuant to sub-subparagraph 1.e. or $5,000, or, if 356 at least 20 percent of the employees of the business are 357 residents of an enterprise zone, excluding temporary and part 358 time employees, the amount of refund may not exceed the lesser 359 of 97 percent of the sales tax paid on the cost of the building 360 materials or $10,000. A refund shall be made within 30 days 361 after formal approval by the department of the application for 362 the refund. 363 6. The department shall adopt rules governing the manner 364 and form of refund applications and may establish guidelines as 365 to the requisites for an affirmative showing of qualification 366 for exemption under this paragraph. 367 7. The department shall deduct an amount equal to 10 368 percent of each refund granted under this paragraph from the 369 amount transferred into the Local Government Half-cent Sales Tax 370 Clearing Trust Fund pursuant to s. 212.20 for the county area in 371 which the rehabilitated real property is located and shall 372 transfer that amount to the General Revenue Fund. 373 8. For the purposes of the exemption provided in this 374 paragraph, the term: 375 a. “Building materials” means tangible personal property 376 that becomes a component part of improvements to real property. 377 b. “Real property” has the same meaning as provided in s. 378 192.001(12), except that the term does not include a common 379 interest communitycondominiumparcel or common interest 380 communitycondominiumproperty as defined in s. 718.103. 381 c. “Rehabilitation of real property” means the 382 reconstruction, renovation, restoration, rehabilitation, 383 construction, or expansion of improvements to real property. 384 d. “Substantially completed” has the same meaning as 385 provided in s. 192.042(1). 386 9. This paragraph expires on the date specified in s. 387 290.016 for the expiration of the Florida Enterprise Zone Act. 388 Section 9. Paragraph (i) of subsection (8) of section 389 213.053, Florida Statutes, is amended to read: 390 213.053 Confidentiality and information sharing.— 391 (8) Notwithstanding any other provision of this section, 392 the department may provide: 393 (i) Information relative to chapters 212 and 326 to the 394 Division of Common Interest CommunitiesFlorida Condominiums,395Timeshares, and Mobile Homesof the Department of Business and 396 Professional Regulation in the conduct of its official duties. 397 398 Disclosure of information under this subsection shall be 399 pursuant to a written agreement between the executive director 400 and the agency. Such agencies, governmental or nongovernmental, 401 shall be bound by the same requirements of confidentiality as 402 the Department of Revenue. Breach of confidentiality is a 403 misdemeanor of the first degree, punishable as provided by s. 404 775.082 or s. 775.083. 405 Section 10. Paragraph (b) of subsection (2) and paragraph 406 (b) of subsection (3) of section 316.006, Florida Statutes, are 407 amended to read: 408 316.006 Jurisdiction.—Jurisdiction to control traffic is 409 vested as follows: 410 (2) MUNICIPALITIES.— 411 (b) A municipality may exercise jurisdiction over any 412 private road or roads, or over any limited access road or roads 413 owned or controlled by a special district, located within its 414 boundaries if the municipality and party or parties owning or 415 controlling such road or roads provide, by written agreement 416 approved by the governing body of the municipality, for 417 municipal traffic control jurisdiction over the road or roads 418 encompassed by such agreement. Pursuant thereto: 419 1. Provision for reimbursement for actual costs of traffic 420 control and enforcement and for liability insurance and 421 indemnification by the party or parties, and such other terms as 422 are mutually agreeable, may be included in such an agreement. 423 2. The exercise of jurisdiction provided for herein shall 424 be in addition to jurisdictional authority presently exercised 425 by municipalities under law, and nothing in this paragraph shall 426 be construed to limit or remove any such jurisdictional 427 authority. Such jurisdiction includes regulation of access to 428 such road or roads by security devices or personnel. 429 3. Any such agreement may provide for the installation of 430 multiparty stop signs by the parties controlling the roads 431 covered by the agreement if a determination is made by such 432 parties that the signage will enhance traffic safety. Multiparty 433 stop signs must conform to the manual and specifications of the 434 Department of Transportation; however, minimum traffic volumes 435 may not be required for the installation of such signage. 436 Enforcement for the signs shall be as provided in s. 316.123. 437 4. The board of directors of a common interest community 438homeowners’associationas defined in chapter 720may, by 439 majority vote, elect to have state traffic laws enforced by 440 local law enforcement agencies on private roads that are 441 controlled by the association. 442 443 This subsection shall not limit those counties which have the 444 charter powers to provide and regulate arterial, toll, and other 445 roads, bridges, tunnels, and related facilities from the proper 446 exercise of those powers by the placement and maintenance of 447 traffic control devices which conform to the manual and 448 specifications of the Department of Transportation on streets 449 and highways located within municipal boundaries. 450 (3) COUNTIES.— 451 (b) A county may exercise jurisdiction over any private 452 road or roads, or over any limited access road or roads owned or 453 controlled by a special district, located in the unincorporated 454 area within its boundaries if the county and party or parties 455 owning or controlling such road or roads provide, by written 456 agreement approved by the governing body of the county, for 457 county traffic control jurisdiction over the road or roads 458 encompassed by such agreement. Pursuant thereto: 459 1. Provision for reimbursement for actual costs of traffic 460 control and enforcement and for liability insurance and 461 indemnification by the party or parties, and such other terms as 462 are mutually agreeable, may be included in such an agreement. 463 2. Prior to entering into an agreement which provides for 464 enforcement of the traffic laws of the state over a private road 465 or roads, or over any limited access road or roads owned or 466 controlled by a special district, the governing body of the 467 county shall consult with the sheriff. No such agreement shall 468 take effect prior to October 1, the beginning of the county 469 fiscal year, unless this requirement is waived in writing by the 470 sheriff. 471 3. The exercise of jurisdiction provided for herein shall 472 be in addition to jurisdictional authority presently exercised 473 by counties under law, and nothing in this paragraph shall be 474 construed to limit or remove any such jurisdictional authority. 475 4. Any such agreement may provide for the installation of 476 multiparty stop signs by the parties controlling the roads 477 covered by the agreement if a determination is made by such 478 parties that the signage will enhance traffic safety. Multiparty 479 stop signs must conform to the manual and specifications of the 480 Department of Transportation; however, minimum traffic volumes 481 may not be required for the installation of such signage. 482 Enforcement for the signs shall be as provided in s. 316.123. 483 5. The board of directors of a common interest community 484homeowners’associationas defined in chapter 720may, by 485 majority vote, elect to have state traffic laws enforced by 486 local law enforcement agencies on private roads that are 487 controlled by the association. 488 489 Notwithstanding the provisions of subsection (2), each county 490 shall have original jurisdiction to regulate parking, by 491 resolution of the board of county commissioners and the erection 492 of signs conforming to the manual and specifications of the 493 Department of Transportation, in parking areas located on 494 property owned or leased by the county, whether or not such 495 areas are located within the boundaries of chartered 496 municipalities. 497 Section 11. Section 316.2127, Florida Statutes, is amended 498 to read: 499 316.2127 Operation of utility vehicles on certain roadways 500 by common interest communityhomeowners’associations.—The 501 operation of a utility vehicle, as defined in s. 320.01, upon 502 the public roads or streets of this state by a common interest 503 communityhomeowners’association, as defined in s. 720.301,or 504 its agents is prohibited except as provided herein: 505 (1) A utility vehicle may be operated by ana homeowners’506 association or its agents only upon a county road that has been 507 designated by a county, or a city street that has been 508 designated by a city, for use by a utility vehicle for general 509 maintenance, security, and landscaping purposes. Prior to making 510 such a designation, the responsible local governmental entity 511 must first determine that utility vehicles may safely travel on 512 or cross the public road or street, considering factors 513 including the speed, volume, and character of motor vehicle 514 traffic on the road or street. Upon a determination that utility 515 vehicles may be safely operated on a designated road or street, 516 the responsible governmental entity shall post appropriate signs 517 to indicate that such operation is allowed. 518 (2) A utility vehicle may be operated by ana homeowners’519 association or its agents on a portion of the State Highway 520 System only under the following conditions: 521 (a) To cross a portion of the State Highway System which 522 intersects a county road or a city street that has been 523 designated for use by utility vehicles if the Department of 524 Transportation has reviewed and approved the location and design 525 of the crossing and any traffic control devices needed for 526 safety purposes. 527 (b) To cross, at midblock, a portion of the State Highway 528 System where the highway bisects property controlled or 529 maintained by ana homeowners’association if the Department of 530 Transportation has reviewed and approved the location and design 531 of the crossing and any traffic control devices needed for 532 safety purposes. 533 (c) To travel on a state road that has been designated for 534 transfer to a local government unit pursuant to s. 335.0415 if 535 the Department of Transportation determines that the operation 536 of a utility vehicle within the right-of-way of the road will 537 not impede the safe and efficient flow of motor vehicle traffic. 538 The department may authorize the operation of utility vehicles 539 on such a road if: 540 1. The road is the only available public road on which 541 utility vehicles may travel or cross or the road provides the 542 safest travel route among alternative routes available; and 543 2. The speed, volume, and character of motor vehicle 544 traffic on the road is considered in making such a 545 determination. 546 547 Upon its determination that utility vehicles may be operated on 548 a given road, the department shall post appropriate signs on the 549 road to indicate that such operation is allowed. 550 (3) A utility vehicle may be operated by a homeowners’ 551 association or its agents only during the hours between sunrise 552 and sunset, unless the responsible governmental entity has 553 determined that a utility vehicle may be operated during the 554 hours between sunset and sunrise and the utility vehicle is 555 equipped with headlights, brake lights, turn signals, and a 556 windshield. 557 (4) A utility vehicle must be equipped with efficient 558 brakes, a reliable steering apparatus, safe tires, a rearview 559 mirror, and red reflectorized warning devices in both the front 560 and the rear. 561 (5) A utility vehicle may not be operated on public roads 562 or streets by any person under the age of 14. 563 564 A violation of this section is a noncriminal traffic infraction, 565 punishable pursuant to chapter 318 as either a moving violation 566 for infractions of subsection (1), subsection (2), subsection 567 (3), or subsection (4) or as a nonmoving violation for 568 infractions of subsection (5). 569 Section 12. Subsection (2) of section 326.002, Florida 570 Statutes, is amended to read: 571 326.002 Definitions.—As used in ss. 326.001-326.006, the 572 term: 573 (2) “Division” means the Division of Common Interest 574 CommunitiesFlorida Condominiums, Timeshares, and Mobile Homes575 of the Department of Business and Professional Regulation. 576 Section 13. Paragraph (d) of subsection (2) and subsection 577 (3) of section 326.006, Florida Statutes, are amended to read: 578 326.006 Powers and duties of division.— 579 (2) The division has the power to enforce and ensure 580 compliance with the provisions of this chapter and rules adopted 581 under this chapter relating to the sale and ownership of yachts 582 and ships. In performing its duties, the division has the 583 following powers and duties: 584 (d) Notwithstanding any remedies available to a yacht or 585 ship purchaser, if the division has reasonable cause to believe 586 that a violation of any provision of this chapter or rule 587 adopted under this chapter has occurred, the division may 588 institute enforcement proceedings in its own name against any 589 broker or salesperson or any of his or her assignees or agents, 590 or against any unlicensed person or any of his or her assignees 591 or agents, as follows: 592 1. The division may permit a person whose conduct or 593 actions are under investigation to waive formal proceedings and 594 enter into a consent proceeding whereby orders, rules, or 595 letters of censure or warning, whether formal or informal, may 596 be entered against the person. 597 2. The division may issue an order requiring the broker or 598 salesperson or any of his or her assignees or agents, or 599 requiring any unlicensed person or any of his or her assignees 600 or agents, to cease and desist from the unlawful practice and 601 take such affirmative action as in the judgment of the division 602 will carry out the purposes of this chapter. 603 3. The division may bring an action in circuit court on 604 behalf of a class of yacht or ship purchasers for declaratory 605 relief, injunctive relief, or restitution. 606 4. The division may impose a civil penalty against a broker 607 or salesperson or any of his or her assignees or agents, or 608 against an unlicensed person or any of his or her assignees or 609 agents, for any violation of this chapter or a rule adopted 610 under this chapter. A penalty may be imposed for each day of 611 continuing violation, but in no event may the penalty for any 612 offense exceed $10,000. All amounts collected must be deposited 613 with the Chief Financial Officer to the credit of the Division 614 of Common Interest CommunitiesFlorida Condominiums, Timeshares,615and Mobile HomesTrust Fund. If a broker, salesperson, or 616 unlicensed person working for a broker, fails to pay the civil 617 penalty, the division shall issue an order suspending the 618 broker’s license until such time as the civil penalty is paid or 619 may pursue enforcement of the penalty in a court of competent 620 jurisdiction. The order imposing the civil penalty or the order 621 of suspension may not become effective until 20 days after the 622 date of such order. Any action commenced by the division must be 623 brought in the county in which the division has its executive 624 offices or in the county where the violation occurred. 625 (3) All fees must be deposited in the Division of Common 626 Interest CommunitiesFlorida Condominiums, Timeshares, and627Mobile HomesTrust Fund as provided by law. 628 Section 14. Paragraph (a) of subsection (1) of section 629 336.125, Florida Statutes, is amended to read: 630 336.125 Closing and abandonment of roads; optional 631 conveyance to homeowners’ association; traffic control 632 jurisdiction.— 633 (1)(a) In addition to the authority provided in s. 336.12, 634 the governing body of the county may abandon the roads and 635 rights-of-way dedicated in a recorded residential subdivision 636 plat and simultaneously convey the county’s interest in such 637 roads, rights-of-way, and appurtenant drainage facilities to a 638 homeowners’ association for the subdivision, if the following 639 conditions have been met: 640 1. The homeowners’ association has requested the 641 abandonment and conveyance in writing for the purpose of 642 converting the subdivision to a gated neighborhood with 643 restricted public access. 644 2. No fewer than four-fifths of the owners of record of 645 property located in the subdivision have consented in writing to 646 the abandonment and simultaneous conveyance to the homeowners’ 647 association. 648 3. The homeowners’ association is both a corporation not 649 for profit organized and in good standing under chapter 617, and 650 ana“homeowners’association” as defined in s. 718.103 651720.301(9)with the power to levy and collect assessments for 652 routine and periodic major maintenance and operation of street 653 lighting, drainage, sidewalks, and pavement in the subdivision. 654 4. The homeowners’ association has entered into and 655 executed such agreements, covenants, warranties, and other 656 instruments; has provided, or has provided assurance of, such 657 funds, reserve funds, and funding sources; and has satisfied 658 such other requirements and conditions as may be established or 659 imposed by the county with respect to the ongoing operation, 660 maintenance, and repair and the periodic reconstruction or 661 replacement of the roads, drainage, street lighting, and 662 sidewalks in the subdivision after the abandonment by the 663 county. 664 Section 15. Paragraph (b) of subsection (7) of section 665 373.62, Florida Statutes, is amended to read: 666 373.62 Water conservation; automatic sprinkler systems.— 667 (7) 668 (b) For purposes of this subsection, the term: 669 1. “Monitoring entity” means a local government, community 670 development district created pursuant to chapter 190,a671homeowners’ association created pursuant to chapter 720,a 672 common interest communitycondominiumassociation created 673 pursuant to chapter 718,a cooperative created pursuant to674chapter 719,or a public or private utility. 675 2. “Soil moisture sensor” means a soil-based device that 676 assesses the available plant soil moisture in order to minimize 677 the unnecessary use of water and optimize the effectiveness of 678 an irrigation system. 679 3. “Soil moisture sensor control system” is the collective 680 term for an entire soil moisture sensor system that has remote 681 monitoring and adjustment capability. 682 Section 16. Paragraph (a) of subsection (4) of section 683 380.0651, Florida Statutes, is amended to read: 684 380.0651 Statewide guidelines and standards.— 685 (4) Two or more developments, represented by their owners 686 or developers to be separate developments, shall be aggregated 687 and treated as a single development under this chapter when they 688 are determined to be part of a unified plan of development and 689 are physically proximate to one other. 690 (a) The criteria of three of the following subparagraphs 691 must be met in order for the state land planning agency to 692 determine that there is a unified plan of development: 693 1.a. The same person has retained or shared control of the 694 developments; 695 b. The same person has ownership or a significant legal or 696 equitable interest in the developments; or 697 c. There is common management of the developments 698 controlling the form of physical development or disposition of 699 parcels of the development. 700 2. There is a reasonable closeness in time between the 701 completion of 80 percent or less of one development and the 702 submission to a governmental agency of a master plan or series 703 of plans or drawings for the other development which is 704 indicative of a common development effort. 705 3. A master plan or series of plans or drawings exists 706 covering the developments sought to be aggregated which have 707 been submitted to a local general-purpose government, water 708 management district, the Florida Department of Environmental 709 Protection, or the Division of Common Interest Communities 710Florida Condominiums, Timeshares, and Mobile Homesfor 711 authorization to commence development. The existence or 712 implementation of a utility’s master utility plan required by 713 the Public Service Commission or general-purpose local 714 government or a master drainage plan shall not be the sole 715 determinant of the existence of a master plan. 716 4. There is a common advertising scheme or promotional plan 717 in effect for the developments sought to be aggregated. 718 Section 17. Subsection (3) of section 418.22, Florida 719 Statutes, is amended to read: 720 418.22 Powers of recreation districts.—The charter of a 721 recreation district may grant to the recreation district the 722 following powers and all further or additional powers as the 723 governing body of the municipality or county establishing the 724 district may deem necessary or useful in order to exercise the 725 powers for which provision is hereinafter made. The powers which 726 may be granted by such charter include the following: 727 (3) To acquire, purchase, construct, improve, and equip 728 recreational facilities of all types, including real and 729 personal property, within the boundaries of the district; such 730 acquisition may be by purchase, lease, gift, or exercise of the 731 power of eminent domain. If the governing body of the 732 municipality or county that created the recreation district for 733 exclusive use by a common interest communitycondominium734 established under chapter 718or a cooperative established under735chapter 719makes the finding described in s. 418.24(4), the 736 governing body of the district may make the recreational 737 facilities available exclusively for district residents and 738 property owners, and may restrict any access to recreational 739 facilities by nonresidents by rules adopted by the governing 740 body of the district. Prior to any vote of the electors in the 741 district adopting or amending a charter pursuant to s. 418.20, 742 the governing body shall decide whether the criteria in s. 743 418.24(4) apply and whether the recreation district shall be 744 available exclusively for the district residents. The recreation 745 district may construct and maintain security buildings and other 746 structures needed to regulate access to, and provide security 747 for, the recreational facilities. 748 Section 18. Subsection (4) of section 418.24, Florida 749 Statutes, is amended to read: 750 418.24 Filing of ordinance.—Any ordinance creating or 751 amending the charter of a recreation district, upon being 752 finally adopted, shall be filed in the minutes of the governing 753 body of the municipality or county, and certified copies thereof 754 shall be filed with the county clerk of the county in which said 755 district is located and with the property appraiser of said 756 county. The charter of a recreation district may contain 757 findings by the governing body of the municipality or county: 758 (4) That, for recreation districts created for exclusive 759 use by a condominium established pursuant to chapter 718or a760cooperative established under chapter 719,based upon the number 761 of residents, potential for proliferation of crime, automobile 762 traffic flow, district development, availability of other 763 recreational facilities outside the district, excessive noise 764 levels, or other factors applicable to the particular district, 765 a valid and paramount public purpose will be served by making 766 the recreational facilities available exclusively for district 767 residents and property owners. 768 769 If such charter contains any one or more such findings, each 770 such finding may be reviewed by a court only as part of any 771 review of the ordinance making such finding. 772 Section 19. Subsection (5) of section 455.116, Florida 773 Statutes, is amended to read: 774 455.116 Regulation trust funds.—The following trust funds 775 shall be placed in the department: 776 (5) Division of Common Interest CommunitiesFlorida777Condominiums, Timeshares, and Mobile HomesTrust Fund. 778 Section 20. Subsection (2) of section 468.436, Florida 779 Statutes, is amended to read: 780 468.436 Disciplinary proceedings.— 781 (2) The following acts constitute grounds for which the 782 disciplinary actions in subsection (4) may be taken: 783 (a) Violation of any provision of s. 455.227(1). 784 (b)1. Violation of any provision of this part. 785 2. Violation of any lawful order or rule rendered or 786 adopted by the department or the council. 787 3. Being convicted of or pleading nolo contendere to a 788 felony in any court in the United States. 789 4. Obtaining a license or certification or any other order, 790 ruling, or authorization by means of fraud, misrepresentation, 791 or concealment of material facts. 792 5. Committing acts of gross misconduct or gross negligence 793 in connection with the profession. 794 6. Contracting, on behalf of an association, with any 795 entity in which the licensee has a financial interest that is 796 not disclosed. 797 7. Violating any provision of chapter 718, chapter 719, or798chapter 720during the course of performing community 799 association management services pursuant to a contract with a 800 community association as defined in s. 468.431(1). 801 Section 21. Section 475.455, Florida Statutes, is amended 802 to read: 803 475.455 Exchange of disciplinary information.—The 804 commission shall inform the Division of Common Interest 805 CommunitiesFlorida Condominiums, Timeshares, and Mobile Homes806 of the departmentof Business and Professional Regulationof any 807 disciplinary action the commission has taken against any of its 808 licensees. The division shall inform the commission of any 809 disciplinary action the division has taken against any broker or 810 sales associate registered with the division. 811 Section 22. Paragraph (a) of subsection (4) of section 812 509.013, Florida Statutes, is amended to read: 813 509.013 Definitions.—As used in this chapter, the term: 814 (4)(a) “Public lodging establishment” includes a transient 815 public lodging establishment as defined in subparagraph 1. and a 816 nontransient public lodging establishment as defined in 817 subparagraph 2. 818 1. “Transient public lodging establishment” means any unit, 819 group of units, dwelling, building, or group of buildings within 820 a single complex of buildings which is rented to guests more 821 than three times in a calendar year for periods of less than 30 822 days or 1 calendar month, whichever is less, or which is 823 advertised or held out to the public as a place regularly rented 824 to guests. 825 2. “Nontransient public lodging establishment” means any 826 unit, group of units, dwelling, building, or group of buildings 827 within a single complex of buildings which is rented to guests 828 for periods of at least 30 days or 1 calendar month, whichever 829 is less, or which is advertised or held out to the public as a 830 place regularly rented to guests for periods of at least 30 days 831 or 1 calendar month. 832 833 License classifications of public lodging establishments, and 834 the definitions therefor, are set out in s. 509.242. For the 835 purpose of licensure, the term does not include common interest 836 communitycondominiumcommon elements as defined in s. 718.103. 837 Section 23. Subsection (2) of section 509.241, Florida 838 Statutes, is amended to read: 839 509.241 Licenses required; exceptions.— 840 (2) APPLICATION FOR LICENSE.—Each person who plans to open 841 a public lodging establishment or a public food service 842 establishment shall apply for and receive a license from the 843 division prior to the commencement of operation. A common 844 interest communitycondominiumassociation, as defined in s. 845 718.103, which does not own any units classified as vacation 846 rentals or timeshare projects under s. 509.242(1)(c) or (g) is 847 not required to apply for or receive a public lodging 848 establishment license. 849 Section 24. Section 509.512, Florida Statutes, is amended 850 to read: 851 509.512 Timeshare plan developer and exchange company 852 exemption.—Sections 509.501-509.511 do not apply to a developer 853 of a timeshare plan or an exchange company approved by the 854 Division of Common Interest CommunitiesFlorida Condominiums,855Timeshares, and Mobile Homespursuant to chapter 721, but only 856 to the extent that the developer or exchange company engages in 857 conduct regulated under chapter 721. 858 Section 25. Subsection (4) of section 553.835, Florida 859 Statutes, is amended to read: 860 553.835 Implied warranties.— 861 (4) There is no cause of action in law or equity available 862 to a purchaser of a home or to a homeowners’ association based 863 upon the doctrine or theory of implied warranty of fitness and 864 merchantability or habitability for damages to offsite 865 improvements. However, this section does not alter or limit the 866 existing rights of purchasers of homes or homeowners’ 867 associations to pursue any other cause of action arising from 868 defects in offsite improvements based upon contract, tort, or 869 statute, including, but not limited to, s. 718.203ss.718.203870and 719.203. 871 Section 26. Subsection (2) of section 558.002, Florida 872 Statutes, is amended to read: 873 558.002 Definitions.—As used in this chapter, the term: 874 (2) “Association” has the same meaning as in s. 718.103(2),875s. 719.103(2), s. 720.301(9), or s. 723.075. 876 Section 27. Subsection (1) of section 559.935, Florida 877 Statutes, is amended to read: 878 559.935 Exemptions.— 879 (1) This part does not apply to: 880 (a) A bona fide employee of a seller of travel who is 881 engaged solely in the business of her or his employer; 882 (b) Any direct common carrier of passengers or property 883 regulated by an agency of the Federal Government or employees of 884 such carrier when engaged solely in the transportation business 885 of the carrier as identified in the carrier’s certificate; 886 (c) An intrastate common carrier of passengers or property 887 selling only transportation as defined in the applicable state 888 or local registration or certification, or employees of such 889 carrier when engaged solely in the transportation business of 890 the carrier; 891 (d) Hotels, motels, or other places of public accommodation 892 selling public accommodations, or employees of such hotels, 893 motels, or other places of public accommodation, when engaged 894 solely in making arrangements for lodging, accommodations, or 895 sightseeing tours within the state, or taking reservations for 896 the traveler with times, dates, locations, and accommodations 897 certain at the time the reservations are made, provided that 898 hotels and motels registered with the Department of Business and 899 Professional Regulation pursuant to chapter 509 are excluded 900 from the provisions of this chapter; 901 (e) Persons involved solely in the rental, leasing, or sale 902 of residential property; 903 (f) Persons involved solely in the rental, leasing, or sale 904 of transportation vehicles; 905 (g) Persons who make travel arrangements for themselves; 906 for their employees or agents; for distributors, franchisees, or 907 dealers of the persons’ products or services; for entities which 908 are financially related to the persons; or for the employees or 909 agents of the distributor, franchisee, or dealer or financially 910 related entity; 911 (h) A developer of a timeshare plan or an exchange company 912 approved by the Division of Common Interest CommunitiesFlorida913Condominiums, Timeshares, and Mobile Homespursuant to chapter 914 721, but only to the extent that the developer or exchange 915 company engages in conduct regulated under chapter 721; or 916 (i) Persons or entities engaged solely in offering diving 917 services, including classes and sales or rentals of equipment, 918 when engaged in making any prearranged travel-related or 919 tourist-related services in conjunction with a primarily dive 920 related event. 921 Section 28. Subsection (13) of section 617.01401, Florida 922 Statutes, is amended to read: 923 617.01401 Definitions.—As used in this chapter, the term: 924 (13) “Mutual benefit corporation” means a domestic 925 corporation that is not organized primarily or exclusively for 926 religious purposes; is not recognized as exempt under s. 927 501(c)(3) of the Internal Revenue Code; and is not organized for 928 a public or charitable purpose that is required upon its 929 dissolution to distribute its assets to the United States, a 930 state, a local subdivision thereof, or a person that is 931 recognized as exempt under s. 501(c)(3) of the Internal Revenue 932 Code. The term does not include an association organized under 933 chapter 718, chapter 719, chapter 720,or chapter 721, or any 934 corporation where membership in the corporation is required 935 pursuant to a document recorded in county property records. 936 Section 29. Subsection (5) of section 617.0505, Florida 937 Statutes, is amended to read: 938 617.0505 Distributions; exceptions.—Except as authorized in 939 s. 617.1302, a corporation may not make distributions to its 940 members, directors, or officers. 941 (5) A corporation that is regulated by chapter 718,chapter942719, chapter 720,chapter 721, or chapter 723, or a corporation 943 where membership in such corporation is required pursuant to a 944 document recorded in the county property records, may make 945 refunds to its members, giving credits to its members, 946 disbursing insurance proceeds to its members, or disbursing or 947 paying settlements to its members without violating this 948 section. 949 Section 30. Paragraph (c) of subsection (1) and subsection 950 (6) of section 617.0601, Florida Statutes, are amended to read: 951 617.0601 Members, generally.— 952 (1) 953 (c) This subsection does not apply to any common interest 954 communitycondominiumassociation organized under chapter 718. 955 (6) Subsections (1), (2), (3), and (4) do not apply to a 956 corporation that is an association as defined in s. 718.103(2) 957720.301. 958 Section 31. Subsection (6) of section 617.0701, Florida 959 Statutes, is amended to read: 960 617.0701 Meetings of members, generally; failure to hold 961 annual meeting; special meeting; consent to corporate actions 962 without meetings; waiver of notice of meetings.— 963 (6) Subsections (1) and (3) do not apply to any corporation 964 that is an association as defined in s. 718.103(2)720.301; a 965 corporation regulated by chapter 718,chapter 719, chapter 720,966 chapter 721, or chapter 723; or a corporation where membership 967 in such corporation is required pursuant to a document recorded 968 in the county property records. 969 Section 32. Subsection (7) of section 617.0721, Florida 970 Statutes, is amended to read: 971 617.0721 Voting by members.— 972 (7) Subsections (1), (5), and (6) do not apply to a 973 corporation that is an association, as defined in s. 720.301,or 974 a corporation regulated by chapter 718or chapter 719. 975 Section 33. Subsection (1) of section 617.0802, Florida 976 Statutes, is amended to read: 977 617.0802 Qualifications of directors.— 978 (1) Directors must be natural persons who are 18 years of 979 age or older but need not be residents of this state or members 980 of the corporation unless the articles of incorporation or 981 bylaws so require. For a corporation organized according to the 982 provisions of s. 501(c)(3) of the Internal Revenue Code of 1986, 983 as amended, but not for a corporation regulated by chapter 718, 984chapter 719, chapter 720,chapter 721, or chapter 723 or a 985 corporation for which membership in such corporation is required 986 pursuant to a document recorded in the county property records, 987 one director may be 15 years of age or older if so permitted in 988 the articles of incorporation or bylaws or by resolution of the 989 board of directors. The articles of incorporation or the bylaws 990 may prescribe additional qualifications for directors. 991 Section 34. Subsection (3) of section 617.0808, Florida 992 Statutes, is amended to read: 993 617.0808 Removal of directors.— 994 (3) This section does not apply to any corporation that is 995 an association, as defined in s. 718.103(2)720.301, or a 996 corporation regulated under chapter 718or chapter 719. 997 Section 35. Section 617.0831, Florida Statutes, is amended 998 to read: 999 617.0831 Indemnification and liability of officers, 1000 directors, employees, and agents.—Except as provided in s. 1001 617.0834, ss. 607.0831 and 607.0850 apply to a corporation 1002 organized under this act and a rural electric cooperative 1003 organized under chapter 425. Any reference to “directors” in 1004 those sections includes the directors, managers, or trustees of 1005 a corporation organized under this act or of a rural electric 1006 cooperative organized under chapter 425. However, the term 1007 “director” as used in ss. 607.0831 and 607.0850 does not include 1008 a director appointed by the developer to the board of directors 1009 of a common interest communitycondominiumassociation under 1010 chapter 718, a cooperative association under chapter 719, a1011homeowners’ association defined in s. 720.301,or a timeshare 1012 managing entity under chapter 721. Any reference to 1013 “shareholders” in those sections includes members of a 1014 corporation organized under this act and members of a rural 1015 electric cooperative organized under chapter 425. 1016 Section 36. Section 617.1606, Florida Statutes, is amended 1017 to read: 1018 617.1606 Access to records.—Sections 617.1601-617.1605 do 1019 not apply to a corporation that is an association, as defined in 1020 s. 718.103(2)720.301, or a corporation regulated under chapter 1021 718or chapter 719. 1022 Section 37. Section 617.1703, Florida Statutes, is amended 1023 to read: 1024 617.1703 Application of chapter.—In the event of any 1025 conflict between the provisions of this chapter and chapter 718 1026 regarding common interest communitiescondominiums, chapter 7191027regarding cooperatives, chapter 720 regarding homeowners’1028associations, chapter 721 regarding timeshares, or chapter 723 1029 regarding mobile home owners’ associations, the provisions of 1030 such other chapters shall apply. The provisions of ss. 617.0605 1031 617.0608 do not apply to corporations regulated by any of the 1032 foregoing chapters or to any other corporation where membership 1033 in the corporation is required pursuant to a document recorded 1034 in the county property records. 1035 Section 38. Paragraph (a) of subsection (2) of section 1036 624.462, Florida Statutes, is amended to read: 1037 624.462 Commercial self-insurance funds.— 1038 (2) As used in ss. 624.460-624.488, “commercial self 1039 insurance fund” or “fund” means a group of members, operating 1040 individually and collectively through a trust or corporation, 1041 that must be: 1042 (a) Established by: 1043 1. A not-for-profit trade association, industry 1044 association, or professional association of employers or 1045 professionals which has a constitution or bylaws, which is 1046 incorporated under the laws of this state, and which has been 1047 organized for purposes other than that of obtaining or providing 1048 insurance and operated in good faith for a continuous period of 1049 1 year; 1050 2. A self-insurance trust fund organized pursuant to s. 1051 627.357 and maintained in good faith for a continuous period of 1052 1 year for purposes other than that of obtaining or providing 1053 insurance pursuant to this section. Each member of a commercial 1054 self-insurance trust fund established pursuant to this 1055 subsection must maintain membership in the self-insurance trust 1056 fund organized pursuant to s. 627.357; 1057 3. A group of 10 or more health care providers, as defined 1058 in s. 627.351(4)(h), for purposes of providing medical 1059 malpractice coverage; or 1060 4. A not-for-profit group comprised of one or more 1061 community associations responsible for operating at least 50 1062 residential parcels or units created and operating under chapter 1063 718,chapter 719, chapter 720,chapter 721, or chapter 723 which 1064 restricts its membership to community associations only and 1065 which has been organized and maintained in good faith for the 1066 purpose of pooling and spreading the liabilities of its group 1067 members relating to property or casualty risk or surety 1068 insurance which, in accordance with applicable provisions of 1069 part I of chapter 626, appoints resident general lines agents 1070 only, and which does not prevent, impede, or restrict any 1071 applicant or fund participant from maintaining or selecting an 1072 agent of choice. The fund may not refuse to appoint the agent of 1073 record for any fund applicant or fund member and may not favor 1074 one or more such appointed agents over other appointed agents. 1075 Section 39. Subsection (19) of section 626.854, Florida 1076 Statutes, is amended to read: 1077 626.854 “Public adjuster” defined; prohibitions.—The 1078 Legislature finds that it is necessary for the protection of the 1079 public to regulate public insurance adjusters and to prevent the 1080 unauthorized practice of law. 1081 (19) Subsections (5)-(18) apply only to residential 1082 property insurance policies and common interest community 1083condominiumunit owner policies as described in s. 718.111(11). 1084 Section 40. Paragraph (c) of subsection (2) of section 1085 689.28, Florida Statutes, is amended to read: 1086 689.28 Prohibition against transfer fee covenants.— 1087 (2) DEFINITIONS.—As used in this section, the term: 1088 (c) “Transfer fee” means a fee or charge required by a 1089 transfer fee covenant and payable upon the transfer of an 1090 interest in real property, or payable for the right to make or 1091 accept such transfer, regardless of whether the fee or charge is 1092 a fixed amount or is determined as a percentage of the value of 1093 the property, the purchase price, or other consideration given 1094 for the transfer. The following are not transfer fees for 1095 purposes of this section: 1096 1. Any consideration payable by the grantee to the grantor 1097 for the interest in real property being transferred, including 1098 any subsequent additional consideration for the property payable 1099 by the grantee based upon any subsequent appreciation, 1100 development, or sale of the property. For the purposes of this 1101 subparagraph, an interest in real property may include a 1102 separate mineral estate and its appurtenant surface access 1103 rights. 1104 2. Any commission payable to a licensed real estate broker 1105 for the transfer of real property pursuant to an agreement 1106 between the broker and the grantor or the grantee, including any 1107 subsequent additional commission for that transfer payable by 1108 the grantor or the grantee based upon any subsequent 1109 appreciation, development, or sale of the property. 1110 3. Any interest, charges, fees, or other amounts payable by 1111 a borrower to a lender pursuant to a loan secured by a mortgage 1112 against real property, including, but not limited to, any fee 1113 payable to the lender for consenting to an assumption of the 1114 loan or a transfer of the real property subject to the mortgage, 1115 any fees or charges payable to the lender for estoppel letters 1116 or certificates, and any shared appreciation interest or profit 1117 participation or other consideration described in s. 687.03(4) 1118 and payable to the lender in connection with the loan. 1119 4. Any rent, reimbursement, charge, fee, or other amount 1120 payable by a lessee to a lessor under a lease, including, but 1121 not limited to, any fee payable to the lessor for consenting to 1122 an assignment, subletting, encumbrance, or transfer of the 1123 lease. 1124 5. Any consideration payable to the holder of an option to 1125 purchase an interest in real property or the holder of a right 1126 of first refusal or first offer to purchase an interest in real 1127 property for waiving, releasing, or not exercising the option or 1128 right upon the transfer of the property to another person. 1129 6. Any tax, fee, charge, assessment, fine, or other amount 1130 payable to or imposed by a governmental authority. 1131 7. Any fee, charge, assessment, fine, or other amount 1132 payable to a homeowners’, condominium, cooperative, mobile home, 1133 or property owners’ association pursuant to a declaration or 1134 covenant or law applicable to such association, including, but 1135 not limited to, fees or charges payable for estoppel letters or 1136 certificates issued by the association or its authorized agent. 1137 8. Any fee, charge, assessment, dues, contribution, or 1138 other amount imposed by a declaration or covenant encumbering 1139 four or more parcels in a community, as defined in s. 720.301,1140 and payable to a nonprofit or charitable organization for the 1141 purpose of supporting cultural, educational, charitable, 1142 recreational, environmental, conservation, or other similar 1143 activities benefiting the community that is subject to the 1144 declaration or covenant. 1145 9. Any fee, charge, assessment, dues, contribution, or 1146 other amount pertaining to the purchase or transfer of a club 1147 membership relating to real property owned by the member, 1148 including, but not limited to, any amount determined by 1149 reference to the value, purchase price, or other consideration 1150 given for the transfer of the real property. 1151 10. Any payment required pursuant to an environmental 1152 covenant. 1153 Section 41. Section 702.09, Florida Statutes, is amended to 1154 read: 1155 702.09 Definitions.—For the purposes of ss. 702.07 and 1156 702.08 the words “decree of foreclosure” shall include a 1157 judgment or order rendered or passed in the foreclosure 1158 proceedings in which the decree of foreclosure shall be 1159 rescinded, vacated, and set aside; the word “mortgage” shall 1160 mean any written instrument securing the payment of money or 1161 advances and includes liens to secure payment of assessments 1162 arising under chapterchapters718and 719and liens created 1163 pursuant to the recorded covenants of a homeowners’ association 1164 as defined in s. 712.01; the word “debt” shall include 1165 promissory notes, bonds, and all other written obligations given 1166 for the payment of money; the words “foreclosure proceedings” 1167 shall embrace every action in the circuit or county courts of 1168 this state wherein it is sought to foreclose a mortgage and sell 1169 the property covered by the same; and the word “property” shall 1170 mean and include both real and personal property. 1171 Section 42. Subsection (4) of section 712.01, Florida 1172 Statutes, is amended to read: 1173 712.01 Definitions.—As used in this law: 1174 (4) The term “homeowners’ association” means a homeowners’ 1175 associationas defined in s. 720.301,or an association of 1176 parcel owners which is authorized to enforce use restrictions 1177 that are imposed on the parcels. 1178 Section 43. Section 712.11, Florida Statutes, is amended to 1179 read: 1180 712.11 Covenant revitalization.—A homeowners’ association 1181 not otherwise subject to chapter 718720may use the procedures 1182 set forth in that chapterss. 720.403-720.407to revive 1183 covenants that have lapsed under the terms of this chapter. 1184 Section 44. Section 718.101, Florida Statutes, is amended 1185 to read: 1186 718.101 Short title.—This chapter shall be known and may be 1187 cited as the “Common Interest CommunityCondominiumAct.” 1188 Section 45. Section 718.102, Florida Statutes, is amended 1189 to read: 1190 718.102 Purposes.—The purpose of this chapter is to: 1191 (1)ToGive statutory recognition to the common interest 1192 communitycondominiumform of ownership of residentialreal1193 property and to the entities that operate common interest 1194 communities. 1195 (2)ToEstablish procedures for the creation, sale, and 1196 operation of parcels, interests, and units in common interest 1197 communities, including condominiums, homeowner parcels, and 1198 cooperative units, and for the operation of common interest 1199 community associations. 1200 (3) Protect the rights of common interest community 1201 association members without unduly impairing the association’s 1202 ability to perform its functions. 1203 (4) Clarify existing law, and correct unconscionable 1204 conditions and policies against the public interest, relating to 1205 common interest communities existing on or after the effective 1206 date of this act. 1207 1208 All common interest communities previously subject to chapters 1209 719 and 720, Florida Statutes 2014, are hereby transferred to 1210 the jurisdiction of this chapter. Every common interest 1211 communitycondominiumcreated and existing in this state shall 1212 be subject to the provisions of this chapter. 1213 Section 46. Section 718.103, Florida Statutes, is amended 1214 to read: 1215 718.103 Definitions.—As used in this chapter, the term: 1216 (1) “Assessment” means a share of the funds thatwhichare 1217 required for the payment of common expenses, which from time to 1218 time is assessed against the unit owner. 1219 (2) “Association” means an, in addition to anyentity 1220 created to manage aresponsible for the operation ofcommon 1221 interest community in which membership is a condition of 1222 ownership of a unit or parcel in a planned development, a lot 1223 for a home or mobile home, or a unit that is part of a 1224 residential development scheme, an entity authorized to impose a 1225 fee necessary for the operation or maintenance of the common 1226 ownership real property, andelements owned in undivided shares1227by unit owners, any entity which operates or maintains other1228real property in which unit owners have use rights,where 1229 membershipin the entityis composed exclusively of unit owners 1230 or their elected or appointed representatives and is a required 1231 condition of unit ownership. 1232 (3) “Association property” meansthatproperty, real and 1233 personal, which is owned or leased by, or is dedicated by a 1234 recorded plat to, the association for the use and benefit of its 1235 members. 1236 (4) “Board of administration” or “board” means the board of 1237 directors or other representative bodywhich isresponsible for 1238 administration of the association. 1239 (5) “Buyer” means a person who purchases a common interest 1240 communitycondominiumunit. The term “purchaser” may be used 1241 interchangeably with the term “buyer.” 1242 (6) “Bylaws” means the bylaws of the association as they 1243 are amended from time to time. 1244 (7) “Committee” means a group of board members, unit 1245 owners, or board members and unit owners appointed by the board 1246 or a member of the board to make recommendations to the board 1247 regarding the proposed annual budget or to take action on behalf 1248 of the board. 1249 (8) “Common elements” or “common property” means the 1250 propertyportionsof an identical or similar kind held by the 1251 individual owners as appurtenances to the individually owned 1252 lots or units andcondominiumproperty not included in the 1253 units. 1254 (9) “Common expenses” means all expenses properly incurred 1255 by the association in the performance of its duties, including 1256 expenses specified in s. 718.115. 1257 (10) “Common interest community” or “CIC” means a real 1258 estate development or neighborhood in which individually owned 1259 lots, units, or leaseholds are burdened by an obligation that 1260 cannot be avoided by nonuse or withdrawal. The term also means 1261 property that is owned in conjunction with others that agree to 1262 a form of governance and responsibility: 1263 (a) To pay for the use of, or contribute to the maintenance 1264 of, property held or enjoined in common by the individual 1265 owners; 1266 (b) To pay fees or assessments to an association that 1267 provides services or facilities to the common property or to the 1268 individually owned property, or that enforces other obligations 1269 burdening the property in the development or neighborhood; 1270 (c) To abide by a set of governing documents that create 1271 rights and responsibilities through covenants, restrictions, or 1272 other proprietary instruments; 1273 (d) To automatically become members of the community 1274 association when they purchase or become shareholders in 1275 property defined in the documents; or 1276 (e) To have an undivided ownership interest in the 1277 property. 1278 (12)(10)“Common surplus” means the amount ofallreceipts 1279 or revenues, including assessments, rents, or profits, collected 1280 by a common interest communitycondominiumassociation which 1281 exceeds common expenses. 1282(11) “Condominium” means that form of ownership of real1283property created pursuant to this chapter, which is comprised1284entirely of units that may be owned by one or more persons, and1285in which there is, appurtenant to each unit, an undivided share1286in common elements.1287(12) “Condominium parcel” means a unit, together with the1288undivided share in the common elements appurtenant to the unit.1289 (11)(13)“Common interest communityCondominiumproperty” 1290 means the lands, leaseholds, and personal property that are 1291 subjected to common interest communitycondominiumownership, 1292 whether or not contiguous, and all improvements thereon and all 1293 easements and rights appurtenant thereto intended for use in 1294 connection with the common interest communitycondominium. 1295 (13) “Community association manager” or “CAM” means a 1296 person licensed pursuant to part VIII of chapter 468 to perform 1297 community association management services. 1298 (14) “Conspicuous type” means bold type in capital letters 1299 no smaller than the largest type, exclusive of headings, on the 1300 page on which it appears and, in all cases, at least 10-point 1301 type. Where conspicuous type is required, it must be separated 1302 on all sides from other type and print. Conspicuous type may be 1303 used in a contract for purchase and sale of a unit, a lease of a 1304 unit for more than 5 years, or a prospectus or offering circular 1305 only where required by law. 1306 (15) “Declaration,”or“declaration of common interest 1307 communities,condominium” “declaration of covenants and 1308 restrictions,” “proprietary lease,” or any similar term means 1309 the instrument or instruments by which a common interest 1310 communitycondominiumis created, as they are from time to time 1311 amended and used in this chapter. 1312 (16) “Developer” means a person who creates a common 1313 interest communitycondominiumor offers common interest 1314 communitycondominiumparcels for sale or lease in the ordinary 1315 course of business, but does not include: 1316 (a) An owner or lessee of a common interest community 1317condominiumor cooperative unit who has acquired the unit for 1318 his or her own occupancy; 1319 (b) A cooperative association that creates a common 1320 interest communitycondominiumby conversion of an existing 1321 residential cooperative after control of the association has 1322 been transferred to the unit owners if, following the 1323 conversion, the unit owners are the same persons who were unit 1324 owners of the cooperative and no units are offered for sale or 1325 lease to the public as part of the plan of conversion; or 1326(c) A bulk assignee or bulk buyer as defined in s. 718.703;1327or1328 (c)(d)A state, county, or municipal entity acting as a 1329 lessor and not otherwise named as a developer in the declaration 1330 of common interest communitycondominium. 1331 (17) “Division” means the Division of Common Interest 1332 CommunitiesFlorida Condominiums, Timeshares, and Mobile Homes1333 of the Department of Business and Professional Regulation. 1334 (18) “Governing documents” or “documents” means the 1335 declaration and other recorded documents, including the articles 1336 of incorporation, bylaws, and rules and regulations that govern 1337 the operation of a common interest community association or 1338 determine the rights and obligations of the members of the 1339 common interest community. 1340 (19)(18)“Land” means the surface of a legally described 1341 parcel of real property and includes, unless otherwise specified 1342 in the declaration and whether separate from or including such 1343 surface, airspace lying above and subterranean space lying below 1344 such surface. However, if so defined in the declaration, the 1345 term “land” may mean all or any portion of the airspace or 1346 subterranean space between two legally identifiable elevations 1347 and may exclude the surface of a parcel of real property and may 1348 mean any combination of the foregoing, whether or not 1349 contiguous, or may mean a common interest communitycondominium1350 unit. 1351 (20)(19)“Limited common elements” means those common 1352 elements thatwhichare reserved for the use of a certain unit 1353 or units to the exclusion of all other units, as specified in 1354 the declaration. 1355 (21) “Master association” means a common interest community 1356 association whose members are also members or unit owners of 1357 common interest community sub-associations. 1358 (22) “Member” means the owner of property who shares common 1359 expenses. 1360 (23)(20)“Multi-common interest communitymulticondominium” 1361 means a real estate development containing two or more common 1362 interest communitiescondominiums, all of which are operated by 1363 the same association. 1364 (24)(a) “Notice” means reasonable procedures taken to 1365 ensure required information is provided to an intended 1366 recipient. The term shall be liberally construed if the property 1367 is configured in a way that prevents the posting of a notice in 1368 a conspicuous location. 1369 (b)1. The term includes electronic notice when required in 1370 this chapter. 1371 2. Consent to electronic notice and waiver of regular mail 1372 or hand delivery must be maintained in the official records and 1373 may be withdrawn at any time. 1374 3. Undeliverable electronic notice shall cause the e-mail 1375 address to be removed from future electronic notice until 1376 requested to be reinstated. 1377 4. Electronic notice must be sent in time for any rejected 1378 or undeliverable notice to be mailed by regular mail or hand 1379 delivered in order to maintain the required time schedule for 1380 notice. 1381 (25)(21)“Operation” or “operation of the common interest 1382 communitycondominium” includes the administration and 1383 management of the common interest communitycondominium1384 property. 1385 (26)(22)“Rental agreement” means any written agreement, or 1386 oral agreement if for less duration than 1 year, providing for 1387 use and occupancy of premises. 1388 (27)(23)“Residential common interest community 1389condominium” means a common interest communitycondominium1390 consisting of two or more units, any of which are intended for 1391 use as a private temporary or permanent residence, except that a 1392 common interest communitycondominiumis not a residential 1393 common interest communitycondominiumif the use for which the 1394 units are intended is primarily commercial or industrial and not 1395 more than three units are intended to be used for private 1396 residence, and are intended to be used as housing for 1397 maintenance, managerial, janitorial, or other operational staff 1398 of the common interest communitycondominium. With respect to a 1399 common interest communitycondominiumthat is not a timeshare 1400 common interest communitycondominium, a residential unit 1401 includes a unit intended as a private temporary or permanent 1402 residence as well as a unit not intended for commercial or 1403 industrial use. With respect to a timeshare common interest 1404 communitycondominium, the timeshare instrument as defined in s. 1405 721.05(35) shall govern the intended use of each unit in the 1406 common interest communitycondominium. If a common interest 1407 communitycondominiumis a residential common interest community 1408condominiumbut contains units intended to be used for 1409 commercial or industrial purposes, then, with respect to those 1410 units which are not intended for or used as private residences, 1411 the common interest communitycondominiumis not a residential 1412 common interest communitycondominium. A common interest 1413 community thatcondominium whichcontains both commercial and 1414 residential units is a mixed-use common interest community 1415condominiumand is subject to the requirements of s. 718.404. 1416 (28)(24)“Special assessment” means any assessment levied 1417 against a unit owner other than the assessment required by a 1418 budget adopted annually. 1419 (29) “Successor” or “subsequent developer” means any 1420 person, other than the creating developer or concurrent 1421 developer, who offers parcels for sale or lease in the ordinary 1422 course of business. However, the term does not include a 1423 financial lending institution receiving title to a number of 1424 units through foreclosure or deed in lieu of foreclosure unless 1425 the institution subsequently offers parcels for sale or lease in 1426 the ordinary course of business. Conveying all of such units to 1427 another person relieves the institution of developer 1428 responsibilities. 1429 (30)(25)“Timeshare estate” means any interest in a unit 1430 under which the exclusive right of use, possession, or occupancy 1431 of the unit circulates among the various purchasers of a 1432 timeshare plan pursuant to chapter 721 on a recurring basis for 1433 a period of time. 1434 (31)(26)“Timeshare unit” means a unit in which timeshare 1435 estates have been created. 1436 (32)(27)“Unit” means a part of the common interest 1437 communitycondominiumproperty which is subject to exclusive 1438 ownership. A unit may be in improvements, land, or land and 1439 improvements together, as specified in the declaration. The term 1440 includes any part of the property which is subject to exclusive 1441 ownership. A unit may be in improvements, land, or land and 1442 improvements together, as specified in the documents, and 1443 includes: 1444 (a) A condominium form of ownership of real property 1445 created pursuant to this chapter comprised entirely of units 1446 that may be owned by one or more persons, and in which there is, 1447 appurtenant to each unit, an undivided share in common elements. 1448 (b) A cooperative form of ownership of real property 1449 wherein legal title is vested in a corporation or other entity 1450 and the beneficial use is evidenced by an ownership interest in 1451 the association and a lease or other muniment of title or 1452 possession granted by the association as the owner of all the 1453 cooperative property. 1454 (c) A platted or unplatted lot, tract, unit, or other 1455 subdivision of real property within a community, as described in 1456 the governing documents, which is capable of separate 1457 conveyance, and of which the parcel owner is obligated by the 1458 documents to be a member of an association that serves the 1459 community. 1460 (33)(28)“Unit owner,”or“owner of a unit,” or “member” 1461 means a record owner of legal title or a lessee of a cooperative 1462 unit to a common interest communitycondominiumparcel. 1463 (34)(29)“Voting certificate” means a document which 1464 designates one of the record title owners, or the corporate, 1465 partnership, or entity representative, who is authorized to vote 1466 on behalf of a common interest communitycondominiumunit that 1467 is owned by more than one owner or by any entity. If there is 1468 exclusive joint ownership by a husband and wife, a voting 1469 certificate is not required. 1470 (35)(30)“Voting interests” means the voting rights 1471 distributed to the association members pursuant to s. 1472 718.104(6)(n)718.104(4)(j). In a multi-common interest 1473 communitymulticondominiumassociation, the voting interests of 1474 the association are the voting rights distributed to the unit 1475 owners in all common interest communitiescondominiumsoperated 1476 by the association. On matters related to a specific common 1477 interest communitycondominiumin a multi-common interest 1478 communitymulticondominiumassociation, the voting interests of 1479 the common interest communitycondominiumare the voting rights 1480 distributed to the unit owners in that common interest community 1481condominium. 1482 Section 47. Section 718.1035, Florida Statutes, is amended 1483 to read: 1484 718.1035 Power of attorney; compliance with chapter.—The 1485 use of a power of attorney that affects any aspect of the 1486 operation of a common interest communitycondominiumshall be 1487 subject to and in compliance with the provisions of this chapter 1488 and all common interest communitycondominiumdocuments, 1489 association rules and other rules adopted pursuant to this 1490 chapter, and all other covenants, conditions, and restrictions 1491 in force at the time of the execution of the power of attorney. 1492 The use of a power of attorney does not create eligibility to 1493 serve on the board of directors. 1494 Section 48. Section 718.104, Florida Statutes, is amended 1495 to read: 1496 718.104 Creation of common interest communities 1497condominiums; contents of declaration.—Every common interest 1498 communitycondominiumcreated in this state shall be created 1499 pursuant to this chapter. 1500 (1) A common interest communitycondominiummay be created 1501 on land owned in fee simple or held under a lease complying with 1502 the provisions of s. 718.401. 1503 (2) A common interest communitycondominiumis created by 1504 recording a declaration in the public records of the county 1505 where the land is located, executed and acknowledged with the 1506 requirements for a deed. All persons who have record title to 1507 the interest in the land being submitted to common interest 1508 communitycondominiumownership, or their lawfully authorized 1509 agents, must join in the execution of the declaration. Upon the 1510 recording of the declaration, or an amendment adding a phase to 1511 the common interest communitycondominiumunder s. 718.403(6), 1512 all units described in the declaration or phase amendment as 1513 being located in or on the land then being submitted to common 1514 interest communitycondominiumownership shall come into 1515 existence, regardless of the state of completion of planned 1516 improvements in which the units may be located or any other 1517 requirement or description that a declaration may provide. Upon 1518 recording the declaration of common interest community 1519condominiumpursuant to this section, the developer shall file 1520 the recording information with the division within 120 calendar 1521 days on a form prescribed by the division. 1522 (3) All persons who have any record interest in any 1523 mortgage encumbering the interest in the land being submitted to 1524 common interest communitycondominiumownership must either join 1525 in the execution of the declaration or execute, with the 1526 requirements for deed, and record, a consent to the declaration 1527 or an agreement subordinating their mortgage interest to the 1528 declaration. 1529 (4) All provisions of the common interest community 1530 documents must be reasonable and are enforceable equitable 1531 servitudes that run with the land and are effective until the 1532 common interest community is terminated. 1533 (5) The declaration provisions of the common interest 1534 community documents shall be liberally construed to not 1535 challenge the property rights and quiet enjoyment of owners. 1536 (6)(4)The documentsdeclarationmust contain or provide 1537 for the following matters: 1538 (a) A statement submitting the property to common interest 1539 communitycondominiumownership. 1540 (b) The name by which the common interest community 1541condominiumproperty is to be identified, which shall include 1542 the word “condominium,” “homeowner,” or “cooperative” or be 1543 followed by the appropriate designation.words “a condominium.”1544 (c) The legal description of the land and, if a leasehold 1545 estate is submitted to the common interest community 1546condominium, an identification of the lease. 1547 (d) An identification of each unit by letter, name, or 1548 number, or combination thereof, so that no unit bears the same 1549 designation as any other unit. 1550 (e) A survey of the land which meets the minimum technical 1551 standardsof practiceestablished by the Board of Professional 1552 Surveyors and Mappers, pursuant to s. 472.027, and a graphic 1553 description of the improvements in which units are located and a 1554 plot plan thereof that, together with the documentsdeclaration, 1555 are in sufficient detail to identify the common elements and 1556 each unit and their relative locations and approximate 1557 dimensions. Failure of the survey to meet the minimum technical 1558 standardsof practicedoes not invalidate an otherwise validly 1559 created common interest communitycondominium. 1560 (f) The survey, graphic description, and plot plan may be 1561 in the form of exhibits consisting of building plans, floor 1562 plans, maps, surveys, or sketches. If the construction of the 1563 common interest communitycondominiumis not substantially 1564 completed, there shall be a statement to that effect, and, upon 1565 substantial completion of construction, the developer or the 1566 association shall amend the documentsdeclarationto include the 1567 certificate described in paragraphs (g)-(i)below. 1568 (g) The amendment may be accomplished by referring to the 1569 recording data of a survey of the common interest community 1570condominiumthat complies with the certificate. A certificate of 1571 a surveyor and mapper authorized to practice in this state shall 1572 be included in or attached to the documentsdeclarationor the 1573 survey or graphic description as recorded under s. 718.105 that 1574 the construction of the improvements is substantially complete 1575 so that the material, together with the provisions of the 1576 documentsdeclarationdescribing the common interest community 1577condominiumproperty, is an accurate representation of the 1578 location and dimensions of the improvements and so that the 1579 identification, location, and dimensions of the common elements 1580 or common property and of each unit can be determined from these 1581 materials. 1582 (h) Completed units within each substantially completed 1583 building in a common interest communitycondominiumdevelopment 1584 may be conveyed to buyerspurchasers, notwithstanding that other 1585 buildings in the common interest communitycondominiumare not 1586 substantially completed, provided that all planned improvements, 1587 including, but not limited to, landscaping, utility services and 1588 access to the unit, and common-element facilities serving such 1589 building, as set forth in the documentsdeclaration, are first 1590 completed and the documents aredeclaration of condominium is1591 first recorded and provided that as to the units being conveyed 1592 there is a certificate of a surveyor and mapper as required 1593 above, including certification that all planned improvements, 1594 including, but not limited to, landscaping, utility services and 1595 access to the unit, and common-element facilities serving the 1596 building in which the units to be conveyed are located have been 1597 substantially completed, and such certificate is recorded with 1598 the original documentsdeclarationor as an amendment to such 1599 documentsdeclaration.This section does not, however, operate1600to require development of improvements and amenities declared to1601be included in future phases pursuant to s. 718.403 before1602conveying a unit as provided in this paragraph.1603 (i) For the purposes of this section, a “certificate of a 1604 surveyor and mapper” means certification by a surveyor and 1605 mapper in the form provided in paragraph (g), paragraph (h), and 1606 this paragraph and may include, along with certification by a 1607 surveyor and mapper, when appropriate, certification by an 1608 architect or engineer authorized to practice in this state. 1609 Notwithstanding the requirements of substantial completion 1610 provided in this section, paragraph (g), paragraph (h), and this 1611 paragraph dodoesnot prohibit or impair the validity of a 1612 mortgage encumbering units together with an undivided interest 1613 in the common elements as described in the documents of a common 1614 interest communitya declaration of condominiumrecorded before 1615 the recording of a certificate of a surveyor and mapper as 1616 provided in this paragraph. 1617 (j)(f)The undivided share of ownership of the common 1618 elements, common property, and common surplus of the common 1619 interest communitycondominiumthat is appurtenant to each unit 1620 stated as a percentage or a fraction of the whole. In the 1621 documentsdeclarationofcondominium forresidential units 1622condominiums created after April 1, 1992, the ownership share of 1623 the common elements assigned to each residential unit shall be 1624 based either upon the total square footage of each residential 1625 unit in uniform relationship to the total square footage of each 1626 other residential unit in the common interest community 1627condominiumor on an equal fractional basis. 1628 (k)(g)The percentage or fractional shares of liability for 1629 common expenses of the common interest communitycondominium, 1630 which, for all residential units, must be the same as the 1631 undivided shares of ownership of the common elements and common 1632 surplus appurtenant to each unit as provided for in paragraph 1633 (j), except when such expenses are not related to the size of 1634 the unit. Expenses not related to the size of the unit may be 1635 allocated on a per-unit basis(f). 1636 (l)(h)If a developer reserves the right,in the documents 1637a declaration recorded on or after July 1, 2000,to create a 1638 multi-common interest communitymulticondominium, the documents 1639declarationmust state, or provide a specific formula for 1640 determining, the fractional or percentage shares of liability 1641 for the common expenses of the association and of ownership of 1642 the common surplus of the association to be allocated to the 1643 units in each common interest communitycondominiumto be 1644 operated by the association. If the documentsa declaration1645recorded on or after July 1, 2000,for a common interest 1646 communitycondominiumoperated by a multi-common interest 1647 communitymulticondominiumassociation as originally recorded 1648 failfailsto so provide, the share of liability for the common 1649 expenses of the association and of ownership of the common 1650 surplus of the association allocated to each unit in each common 1651 interest communitycondominiumoperated by the association shall 1652 be equal on a per-unit basisa fraction of the whole, the1653numerator of which is the number “one” and the denominator of1654which is the total number of units in all condominiums operated1655by the association. 1656 (m)(i)The name of the association, which must be a 1657 corporation for profit or a corporation not for profit. An 1658 association not incorporated on July 1, 2016, must be 1659 incorporated within 1 year after the effective date of the 1660 documents. 1661 (n)(j)Unit owners’ membership and voting rights in the 1662 association. 1663 (o)(k)The document or documents creating the association, 1664 which may be attached as an exhibit. 1665 (p)(l)A copy of the bylaws, which shall be attached as an 1666 exhibit. Defects or omissions in the bylaws shall not affect the 1667 validity of the common interest communitycondominiumor title 1668 to the common interest communitycondominiumparcels. 1669 (q)(m)Other desired provisions consistentnot inconsistent1670 with this chapter. 1671 (r)(n)The creation of a nonexclusive easement for ingress 1672 and egress over streets, walks, and other rights-of-way serving 1673 the units of a common interest communitycondominium, as part of 1674 the common elements necessary to provide reasonable access to 1675 the public ways, or a dedication of the streets, walks, and 1676 other rights-of-way to the public. All easements for ingress and 1677 egress shall not be encumbered by any leasehold or lien other 1678 than those on the common interest communitycondominiumparcels, 1679 unless: 1680 1. Any such lien is subordinate to the rights of unit 1681 owners, or 1682 2. The holder of any encumbrance or leasehold of any 1683 easement has executed and recorded an agreement that the use 1684 rights of each unit owner will not be terminated as long as the 1685 unit owner has not been evicted because of a default under the 1686 encumbrance or lease, and the use-rights of any mortgagee of a 1687 unit who has acquired title to a unit may not be terminated. 1688(o) If timeshare estates will or may be created with1689respect to any unit in the condominium, a statement in1690conspicuous type declaring that timeshare estates will or may be1691created with respect to units in the condominium. In addition,1692the degree, quantity, nature, and extent of the timeshare1693estates that will or may be created shall be defined and1694described in detail in the declaration, with a specific1695statement as to the minimum duration of the recurring periods of1696rights of use, possession, or occupancy that may be created with1697respect to any unit.1698 (7)(5)The documentsdeclarationas originally recorded or 1699 as amended under the procedures provided therein may include 1700 reasonable covenants and restrictions concerning the use, 1701 occupancy, and transfer of the units permitted by law with 1702 reference to real property. However, the rule against 1703 perpetuities shall not defeat a right given any person or entity 1704 by the documentsdeclarationfor the purpose of allowing unit 1705 owners to retain reasonable control over the use, occupancy, and 1706 transfer of units. 1707 (8)(6)A person who joins in, or consents to the execution 1708 of, a governing documentdeclarationsubjects his or her 1709 interest in the common interest communitycondominiumproperty 1710 to the provisions of the documentdeclaration. 1711 (9)(7)All provisions of the governing documentdeclaration1712 are enforceable equitable servitudes, run with the land, and are 1713 effective until the common interest communitycondominiumis 1714 terminated. 1715 Section 49. Section 718.1045, Florida Statutes, is amended 1716 to read: 1717 718.1045 Timeshare estates; limitation on creation.—No 1718 timeshare estates shall be created with respect to any common 1719 interest communitycondominiumunit except pursuant to 1720 provisions in the declaration expressly permitting the creation 1721 of such estates. 1722 Section 50. Section 718.105, Florida Statutes, is amended 1723 to read: 1724 718.105 Recording of documentsdeclaration.— 1725 (1) When executed as required by s. 718.104, the documents 1726 shall be recorded in the county where the common interest 1727 community is locateda declarationtogether with all exhibits 1728 andallamendments, and areisentitled to recordation as an 1729 agreement relating to the conveyance of land. 1730 (2) Graphic descriptions of improvements constituting 1731 exhibits to the documentsa declaration, when accompanied by the 1732 certificate of a surveyor required by s. 718.104, may be 1733 recorded as a part of the documentsa declarationwithout 1734 approval of any public body or officer. 1735 (3) When the documents are recorded pursuant to this 1736 section, a certificate or receipted bill shall be filed with the 1737 clerk of the circuit court in the county where the property is 1738 located showing that all taxes due and owing on the property 1739 have been paid in full as of the date of recordationrecording1740the declaration may, for his or her convenience, file the1741exhibits of a declaration which contains graphic descriptions of1742improvements in a separate book, and shall indicate the place of1743filing upon the margin of the record of the declaration. 1744 (4)(a) If the documents dodeclaration doesnot have the 1745 certificate or the survey or graphic description of the 1746 improvements required under s. 718.104(6)718.104(4)(e), the 1747 developer shall deliver therewith to the clerk an estimate, 1748 signed by a surveyor authorized to practice in this state, of 1749 the cost of a final survey or graphic description providing the 1750 certificate prescribed by s. 718.104(6)718.104(4)(e), and shall 1751 deposit with the clerk the sum of money specified in the 1752 estimate. 1753 (b) The clerk shall hold the money until an amendment to 1754 the documentsdeclarationis recorded that complies with the 1755 certificate requirements of s. 718.104(6)718.104(4)(e). At that 1756 time, the clerk shall pay to the person presenting the amendment 1757 to the declaration the sum of money deposited, without making 1758 any charge for holding the sum, receiving it, or paying out, 1759 other than the fees required for recording the common interest 1760 communitycondominiumdocuments. 1761 (c) If the sum of money held by the clerk has not been paid 1762 to the developer or association as provided in paragraph (b) 1763 within 35years after the date the documents weredeclaration1764wasoriginally recorded, the clerk may notify, in writing, the 1765 registered agent of the association that the sum is still 1766 available and the purpose for which it was deposited. If the 1767 association does not record the certificate within 90 days after 1768 the clerk has given the notice, the clerk may disburse the money 1769 to the developer. If the developer cannot be located, the clerk 1770 shall disburse the money to the Division of Common Interest 1771 CommunitiesFlorida Condominiums, Timeshares, and Mobile Homes1772 for deposit in the Division of Common Interest Communities 1773Florida Condominiums, Timeshares, and Mobile HomesTrust Fund. 1774 (5) When documents area declaration of condominium is1775 recorded pursuant to this section, a certificate or receipted 1776 bill shall be filed with the clerk of the circuit court in the 1777 county where the property is located showing that all taxes due 1778 and owing on the property have been paid in full as of the date 1779 of recordation. 1780 Section 51. Section 718.106, Florida Statutes, is amended 1781 to read: 1782 718.106 Common interest communitycondominiumparcels; 1783 appurtenances; possession and enjoyment.— 1784 (1) A common interest communitycondominiumparcel, 1785 including a community created as a leasehold, created by the 1786 documentsdeclarationis a separate parcel of real property,1787even though the condominium is created on a leasehold. 1788 (2) There shall pass with a unit, as appurtenances thereto: 1789 (a) An undivided share in the common elements and common 1790 surplus. 1791 (b) The exclusive right to use such portion of the common 1792 elements as may be provided by the documentsdeclaration, 1793 including the right to transfer such right to other units or 1794 unit owners to the extent authorized by the documents 1795declarationas originally recorded, or amendments to the 1796 documentsdeclarationadopted pursuant to the provisions 1797 contained therein. Amendments to documentsdeclarations of1798condominiumproviding for the transfer of use rights with 1799 respect to limited common elements are not amendments that 1800 materially modify unit appurtenances as described in s. 1801 718.110(4). However, in order to be effective, the transfer of 1802 use rights with respect to limited common elements must be 1803 effectuated in conformity with the procedures set forth in the 1804 documentsdeclarationas originally recorded or as amended under 1805 the procedures provided therein. This section is intended to 1806 clarify existing law and applies to associations existing on the 1807 effective date of this act. 1808 (c) An exclusive easement for the use of the airspace 1809 occupied by the unit as it exists at any particular time and as 1810 the unit may lawfully be altered or reconstructed from time to 1811 time. An easement in airspace which is vacated shall be 1812 terminated automatically. 1813 (d) Membership in the association designated in the 1814 documentsdeclaration, with the full voting rights appertaining 1815 thereto. 1816 (e) Other appurtenances as may be provided in the documents 1817 that may not be burdened by regulations or restrictions that are 1818 the purview of other authoritydeclaration. 1819 (3)(a) Expiration of a motor vehicle tag or failure to 1820 display a motor vehicle tag or parking permit is not sufficient 1821 grounds for enforcement action if it is the unit owner’s only 1822 vehicle and the vehicle is parked in the spot assigned to the 1823 unit. 1824 (b) An association may not prohibit or restrict the parking 1825 of a noncommercial motor vehicle owned by a unit owner or the 1826 owner’s guest, licensee, or invitee. 1827 (4)(3)A unit owner is entitled to the exclusive possession 1828 of his or her unit, subject to the provisions of s. 718.111(5). 1829 He or she is entitled to use the common elements in accordance 1830 with the purposes for which they are intended, but no use may 1831 hinder or encroach upon the lawful rights of other unit owners. 1832 (5)(4)When a unit is leased, a tenant shall have all use 1833 rights in the association property and those common elements 1834 otherwise readily available for use generally by unit owners and 1835 the unit owner shall not have such rights except as a guest, 1836 unless such rights are waived in writing by the tenant. Nothing 1837 in this subsection shall interfere with the access rights of the 1838 unit owner as a landlord pursuant to chapter 83. The association 1839 shall have the right to adopt rules to prohibit dual usage by a 1840 unit owner and a tenant of association property and common 1841 elements otherwise readily available for use generally by unit 1842 owners. 1843 (6)(5)A local government may not adopt an ordinance or 1844 regulation that prohibits common interest communitycondominium1845 unit owners or their guests, licensees, or invitees from 1846 pedestrian access to a public beach contiguous to a common 1847 interest communitycondominiumproperty, except where necessary 1848 to protect public health, safety, or natural resources. This 1849 subsection does not prohibit a governmental entity from enacting 1850 regulations governing activities taking place on the beach. 1851 Section 52. Section 718.107, Florida Statutes, is amended 1852 to read: 1853 718.107 Restraint upon separation and partition of common 1854 elements.— 1855 (1) The undivided share in the common elementswhich is1856 appurtenant to a unit shall not be separated from it and shall 1857 pass with the title to the unit, whether or not separately 1858 described. 1859 (2) The share in the common elements appurtenant to a unit 1860 cannot be conveyed or encumbered except together with the unit. 1861 (3) The shares in the common elements appurtenant to units 1862 are undivided, and no action for partition of the common 1863 elements shall lie. 1864 Section 53. Section 718.108, Florida Statutes, is amended 1865 to read: 1866 718.108 Common elements.— 1867 (1) “Common elements” includes within its meaning the 1868 following: 1869 (a) The common interest communitycondominiumproperty 1870 which is not included within the units. 1871 (b) Easements through units for conduits, ducts, plumbing, 1872 wiring, and other facilities for the furnishing of utility 1873 services to units and the common elements. 1874 (c) An easement of support in every portion of a unit that 1875whichcontributes to the support of a building. 1876 (d) The property and installations required for the 1877 furnishing of utilities and other services to more than one unit 1878 or to the common elements. 1879 (2) The documentsdeclarationmay designate other parts of 1880 the common interest communitycondominiumproperty as common 1881 elements. 1882 Section 54. Section 718.1085, Florida Statutes, is amended 1883 to read: 1884 718.1085 Certain regulations not to be retroactively 1885 applied.—Notwithstanding the provisions of chapter 633 or of any 1886 other code, statute, ordinance, administrative rule, or 1887 regulation, or any interpretation thereof, an association, 1888 common interest communitycondominium, or unit owner is not 1889 obligated to retrofit the common elements or units of a 1890 residential common interest communitycondominiumthat meets the 1891 definition of “housing for older persons” in s. 760.29(4)(b)3. 1892 to comply with requirements relating to handrails and guardrails 1893 if the unit owners have voted to forego such retrofitting by the 1894 affirmative vote of two-thirds of all voting interests in the 1895 affected common interest communitycondominium. However, a 1896 common interest communitycondominiumassociation may not vote 1897 to forego the retrofitting in common areas in a high-rise 1898 building. For the purposes of this section, the term “high-rise 1899 building” means a building that is greater than 75 feet in 1900 height where the building height is measured from the lowest 1901 level of fire department access to the floor of the highest 1902 occupiable level. For the purposes of this section, the term 1903 “common areas” means stairwells and exposed, outdoor walkways 1904 and corridors. In no event shall the local authority having 1905 jurisdiction require retrofitting of common areas with handrails 1906 and guardrails before the end of 2014. 1907 (1) A vote to forego retrofitting may not be obtained by 1908 general proxy or limited proxy, but shall be obtained by a vote 1909 personally cast at a duly called membership meeting, or by 1910 execution of a written consent by the member, and shall be 1911 effective upon the recording of a certificate attesting to such 1912 vote in the public records of the county where the common 1913 interest communitycondominiumis located. The association shall 1914 provide each unit owner written notice of the vote to forego 1915 retrofitting of the required handrails or guardrails, or both, 1916 in at least 16-point bold type, by certified mail, within 20 1917 days after the association’s vote. After such notice is provided 1918 to each owner, a copy of such notice shall be provided by the 1919 current owner to a new owner prior to closing and shall be 1920 provided by a unit owner to a renter prior to signing a lease. 1921 (2) As part of the information collected annually from 1922 common interest communitiescondominiums, the division shall 1923 require common interest communitycondominiumassociations to 1924 report the membership vote and recording of a certificate under 1925 this subsection and, if retrofitting has been undertaken, the 1926 per-unit cost of such work. The division shall annually report 1927 to the Division of State Fire Marshal of the Department of 1928 Financial Services the number of common interest communities 1929condominiumsthat have elected to forego retrofitting. 1930 Section 55. Section 718.109, Florida Statutes, is amended 1931 to read: 1932 718.109 Legal description of common interest community 1933condominiumparcels.—Following the recording of the documents by 1934 which a common interest community is createddeclaration, a 1935 description of a common interest communitycondominiumparcel by 1936 the number or other designation by which the unit is identified 1937in the declaration, together with the recording data identifying 1938 the documentsdeclaration, shall be a sufficient legal 1939 description for all purposes. The description includes all 1940 appurtenances to the unit concerned, whether or not separately 1941 described, including, but not limited to, the undivided share in 1942 the common elements appurtenant thereto. 1943 Section 56. Section 718.110, Florida Statutes, is amended 1944 to read: 1945 718.110 Amendment of documentsdeclaration; correction of 1946 error or omission in documentsdeclarationby circuit court.— 1947 (1)(a)The documentsIf the declaration fails to provide a1948method of amendment, the declarationmay be amended as to all 1949 matters except those described in subsection (4) or subsection 1950 (8) if the amendment is approved by the owners of a majority of 1951 the units present and voting at a duly called meeting of the 1952 common interest communitynot less than two-thirds of the units.1953Except as to those matters described in subsection (4) or1954subsection (8), no declaration recorded after April 1, 1992,1955shall require that amendments be approved by more than four1956fifths of the voting interests. 1957 (a)(b)No provision of the documentsdeclarationshall be 1958 revised or amended by reference to its title or number only. 1959 Proposals to amend existing provisions of the documents 1960declarationshall contain the full text of the provision to be 1961 amended; new words shall be inserted in the text and underlined; 1962 and words to be deleted shall be strucklinedthrough with 1963 hyphens. However, if the proposed change is so extensive that 1964 this procedure would hinder, rather than assist, the 1965 understanding of the proposed amendment, it is not necessary to 1966 use underlining and hyphens as indicators of words added or 1967 deleted, but, instead, a notation must be inserted immediately 1968 preceding the proposed amendment in substantially the following 1969 language: “Substantial rewording of documentsdeclaration. See 1970 provision .... for present text.” 1971 (b)(c)Nonmaterial errors or omissions in the amendment 1972 process will not invalidate an otherwise properly promulgated 1973 amendment. 1974 (2) An amendment, other than amendments made by the 1975 developer pursuant to ss. 718.104, 718.403, and 718.504(6), (7), 1976 and (9) without a vote of the unit owners and any rights the 1977 developer may have in the documentsdeclarationto amend without 1978 consent of the unit owners which shall be limited to matters 1979 other than those under subsections (4) and (8), shall be 1980 recorded and evidenced by a certificate of the association which 1981 shall include the recording data identifying the recorded 1982 documentdeclarationand shall be executed in the form required 1983 for the execution of a deed. An amendment by the developer must 1984 be evidenced in writing, but a certificate of the association is1985not required.The developer of a timeshare condominium may1986reserve specific rights in the declaration to amend the1987declaration without the consent of the unit owners.1988 (3) An amendment of the documentsa declarationis 1989 effective when properly recorded in the public records of the 1990 county where the documents aredeclaration isrecorded. 1991 (4) Unless otherwise provided in the documentsdeclaration1992 as originally recorded, no amendment may change the 1993 configuration or size of any unit in any material fashion, 1994 materially alter or modify the appurtenances to the unit, or 1995 change the proportion or percentage by which the unit owner 1996 shares the common expenses of the common interest community 1997condominiumand owns the common surplus of the common interest 1998 communitycondominiumunless the record owner of the unit and 1999 all record owners of liens on the unit join in the execution of 2000 the amendment and unless all the record owners of all other 2001 units in the same common interest communitycondominiumapprove 2002 the amendment. The acquisition of property by the association 2003 and material alterations or substantial additions to such 2004 property or the common elements by the association in accordance 2005 withs. 718.111(7) ors. 718.113,and amendments providing for 2006 the transfer of use rights in limited common elements pursuant 2007 to s. 718.106(2)(b) shall not be deemed to constitute a material 2008 alteration or modification of the appurtenances to the units.A2009declaration recorded after April 1, 1992, may not require the2010approval of less than a majority of total voting interests of2011the condominium for amendments under this subsection, unless2012otherwise required by a governmental entity.2013 (5) If it appears that through a scrivener’s error a unit 2014 has not been designated as owning an appropriate undivided share 2015 of the common elements or does not bear an appropriate share of 2016 the common expenses or that all the common expenses or interest 2017 in the common surplus or all of the common elements in the 2018 common interest communitycondominiumhave not been distributed 2019 in the documentsdeclaration, so that the sum total of the 2020 shares of common elements which have been distributed or the sum 2021 total of the shares of the common expenses or ownership of 2022 common surplus fails to equal 100 percent, or if it appears that 2023 more than 100 percent of common elements or common expenses or 2024 ownership of the common surplus have been distributed, the error 2025 may be corrected by filing an amendment to the declaration 2026 approved by the board of administration or a majority of the 2027 unit owners. 2028 (6) The common elements designated by the documents 2029declarationmay be enlarged by an amendment to the documents 2030declaration. The amendment must describe the interest in the 2031 property and must submit the property to the terms of the 2032 documentsdeclaration. The amendment must be approved and 2033 executed as provided in this section. The amendment divests the 2034 association of title to the land and vests title in the unit 2035 owners as described inpart ofthe documentscommon elements, 2036 without naming them and without further conveyance, in the same 2037 proportion as the undivided sharesharesin the appurtenances 2038common elements that are appurtenantto theirtheunitowned by2039them. 2040 (7) The declarations, bylaws, and common elements of two or 2041 more independent common interest communitiescondominiumsof a 2042 single complex may be merged to form a single common interest 2043 communitycondominium, upon the approval of 75 percent of the 2044 voting interests of each common interest communitysuch voting2045interest of each condominium as is required by the declaration2046for modifying the appurtenances to the units or changing the2047proportion or percentages by which the owners of the parcel2048share the common expenses and own the common surplus; upon the2049approval of all record owners of liens;and upon the recording 2050 of new or amended articles of incorporation, documents 2051declarations, and bylaws. 2052 (8) Unless otherwise provided in the documentsdeclaration2053 as originally recorded, no amendment to the documents 2054declarationmay permit timeshare estates to be created in any 2055 unit of the common interest communitycondominium, unless the 2056 record owner of each unit of the common interest community 2057condominiumand the record owners of liens on each unit of the 2058 common interest communitycondominiumjoin in the execution of 2059 the amendment. 2060 (9) If there is an omission or error in the documentsa2061declaration, or in any other document required by law to 2062 establish the common interest communitycondominium, the 2063 association may correct the error or omission by an amendment to 2064 the documentsdeclarationor to the other document required by 2065 law to establish the common interest communitycreate a2066condominiumin the manner provided in paragraph (1)(a)the2067declaration to amend the declaration or, if none is provided, by2068vote of a majority of the voting interests of the condominium. 2069 The amendment is effective when passed and approved and a 2070 certificate of amendment is executed and recorded as provided in 2071 subsections (2) and (3). This procedure for amendment cannot be 2072 used if such an amendment would materially or adversely affect 2073 property rights of unit owners, unless the affected unit owners 2074 consent in writing.This subsection does not restrict the powers2075of the association to otherwise amend the declaration, or other2076documentation, but authorizes a simple process of amendment2077requiring a lesser vote for the purpose of curing defects,2078errors, or omissions when the property rights of unit owners are2079not materially or adversely affected.2080 (10) If there is an omission or error in the documentsa2081declaration of condominium, or any other document required by 2082 law to establish the common interest communitycondominium, and 2083 the omission or error would affect the valid existence of the 2084 common interest communitycondominium, the circuit court may 2085 entertain a petition of one or more of the unit owners in the 2086 common interest communitycondominium, or of the association, to 2087 correct the error or omission, and the action may be a class 2088 action. 2089 (a) The court may require that one or more methods of 2090 correcting the error or omission be submitted to the unit owners 2091 to determine the most acceptable correction. All unit owners and 2092 the common interest community, theassociation, and the2093mortgagees of a first mortgage of recordmust be joined as 2094 parties to the action. Service of process on unit owners may be 2095 by hand delivery, certified mail with return receipt requested, 2096 electronic notice, or publication., butThe plaintiff shall 2097 certify, under oath, thatmust furnishevery unit owner received 2098not personally served with process witha copy of the petition 2099 and final decree of the court by hand delivery, certified mail 2100 with,return receipt requested, electronic notice, or 2101 publication, at the unit owner’s last known residence address. 2102 (b) If an action to determine whether the documents 2103declarationor any other common interest communityanother2104condominiumdocument complies with the mandatory requirements 2105 for the formation of a common interest communitycondominiumis 2106 not brought within 3 years afterofthe recording of the 2107 documents, the documentscertificate of a surveyor and mapper2108pursuant to s. 718.104(4)(e) or the recording of an instrument2109that transfers title to a unit in the condominium which is not2110accompanied by a recorded assignment of developer rights in2111favor of the grantee of such unit, whichever occurs first, the2112declarationand any other common interest community document 2113 under this chapterdocuments will effectivelycreate a common 2114 interest communitycondominium,as of the date the documents 2115 weredeclaration wasrecorded, regardless of whether the 2116 documents substantially comply with the mandatory requirements 2117 of law. 2118 (c) However, both before and after the expiration of this 2119 3-year period, the circuit court has jurisdiction to entertain a 2120 petition permitted under this subsection for the correction of 2121 the documentation, and other methods of amendment may be 2122 utilized to correcttheerrors or omissions at any time. 2123 (11) The Legislature finds that the procurement of 2124 mortgagee consent to amendments that do not affect the rights or 2125 interests of mortgagees is an unreasonable and substantial 2126 logistical and financial burden on the common interest community 2127 associationunit ownersandthatthere is a compelling state 2128 interest in enabling the association membersof a condominium2129associationto approve amendments to thecondominiumdocuments 2130 through legal means. Accordingly, and notwithstanding any 2131 provision to the contrary contained in this section: 2132 (a)As to any mortgage recorded on or after October 1,21332007,Any provision in the documentsdeclaration, articles of 2134 incorporation,orbylaws, or general law whichthatrequires the 2135 consent or joinder of some or all mortgagees of units or any 2136 other portion of thecondominiumproperty to or in amendments to 2137 the documentsdeclaration, articles of incorporation,orbylaws, 2138 or general law, or for any other matter, including termination 2139 pursuant to s. 718.117, isshall beenforceable only if the 2140 mortgagee and any subsequent designee or mortgagee provides 2141 written notice to the association members of its status as a 2142 mortgage holder, by certified mail with return receipt 2143 requested, relatingasto the following matters: 2144 1. Those matters described in subsections (4) and (8). 2145 2. Amendments to the documentsdeclaration, articles of 2146 incorporation,orbylaws, or general law whichthatadversely 2147 affect thepriority of themortgagee’slien or the mortgagee’s2148 rights to foreclose its lien or that otherwise materially affect 2149 the rights and interests of the mortgagees. The amendments must 2150 be thoroughly described in the written notice. 2151 (b)As to mortgages recorded before October 1, 2007,Any 2152 existing provisions in the documentsdeclaration, articles of 2153 incorporation,orbylaws, or general law requiring mortgagee 2154 consent shall be enforceable only if the mortgagee and any 2155 subsequent designee or mortgagee provides written notice as 2156 required in paragraph (a). 2157 (c) In securing consent or joinder, the association shall 2158 be entitled to rely upon the written notice provided in 2159 paragraph (a)public recordsto identify the holders of 2160 outstanding mortgages.The association may use the address2161provided in the original recorded mortgage document, unless2162there is a different address for the holder of the mortgage in a2163recorded assignment or modification of the mortgage, which2164recorded assignment or modification must reference the official2165records book and page on which the original mortgage was2166recorded. Once the association has identified the recorded2167mortgages of record, the association shall, in writing, request2168of each unit owner whose unit is encumbered by a mortgage of2169record any information the owner has in his or her possession2170regarding the name and address of the person to whom mortgage2171payments are currently being made. Notice shall be sent to such2172person if the address provided in the original recorded mortgage2173document is different from the name and address of the mortgagee2174or assignee of the mortgage as shown by the public record. The2175association shall be deemed to have complied with this2176requirement by making the written request of the unit owners2177required under this paragraph.Any notices required to be sent 2178 to the mortgagees under this subsectionparagraphshall be sent 2179 to the address specified in the written notice provided in 2180 paragraph (a)all available addresses provided to the2181association. 2182 (d) Any notice to the mortgagees required under this 2183 subsectionparagraph (c)may be sent by a method that 2184 establishes proof of delivery, and any mortgagee who fails to 2185 respond within 60 days after the date of mailing shall be deemed 2186 to have consented to the actionamendment. 2187 (e)For those amendments requiring mortgagee consent on or2188after October 1, 2007,In the event mortgagee consent is 2189 provided other than by properly recorded joinder, such consent 2190 shall be evidenced by affidavit of the association recorded in 2191 the public records of the county where the common interest 2192 communitydeclarationis locatedrecorded. Any amendment adopted 2193 without the required consent of a mortgagee shall be voidable 2194 only by a mortgagee who was entitled to written notice pursuant 2195 to paragraph (a) and an opportunity to consent. An action to 2196 void an amendment or action shall be subject to the statute of 2197 limitations beginning 25years after the dateof discovery as2198to the amendments described in subparagraphs (a)1. and 2. and 52199years after thedate of recordationof the certificate of2200amendment for all other amendments. This provision shall apply 2201 to all mortgages, regardless of the date of recordation of the 2202 mortgage. 2203 (f) The documents of a common interest community shall be 2204 deemed amended to correspond with amendments to applicable 2205 statutes and may be recorded as amendments with approval of the 2206 board of directors of the common interest community. 2207Notwithstanding the provisions of this section, any amendment or2208amendments to conform a declaration of condominium to the2209insurance coverage provisions in s. 718.111(11) may be made as2210provided in that section.2211 (12)(a) With respect to an existing multi-common interest 2212 communitymulticondominiumassociation, any amendment to change 2213 the fractional or percentage share of liability for the common 2214 expenses of the association and ownership of the common surplus 2215 of the association must be approved byat least a majority of2216 the total voting interests of each common interest community 2217condominiumoperated by the associationunless the declarations2218of all condominiums operated by the association uniformly2219require approval by a greater percentage of the voting interests2220of each condominium. 2221 (b) Unless approval by a greater percentage of the voting 2222 interests of an existing multi-common interest community 2223multicondominiumassociation is expressly required in the 2224 documentsdeclarationof an existing common interest community 2225condominium, the documentsdeclarationmay be amended upon 2226 approval of at least a majority of the total voting interests of 2227 each common interest communitycondominiumoperated by the 2228 multi-common interest communitymulticondominiumassociation for 2229 the purpose of: 2230 1. Setting forth in the documentsdeclarationthe formula 2231 currently utilized, but not previously stated in the documents 2232declaration, for determining the percentage or fractional shares 2233 of liability for the common expenses of the multi-common 2234 interest communitymulticondominiumassociation and ownership of 2235 the common surplus of the multi-common interest community 2236multicondominiumassociation. The formula shall be based on an 2237 equal-per-unit, square-foot basis or an equal-per-unit basis. 2238 2. Providing for the creation or enlargement of a multi 2239 common interest communitymulticondominiumassociation by the 2240 merger or consolidation of two or more associations and changing 2241 the name of the association, as appropriate. 2242 (13) The alienation of units shall not be restricted unless 2243 it is likely to threaten the security of the residents, 2244 association property, and the financial status of the 2245 association or the ability of the association to qualify for 2246 institutional mortgage financing. 2247 (14)(13)An amendment prohibiting unit owners from renting 2248 their units or altering the duration of the rental term or 2249 specifying or limiting the number of times unit owners are 2250 entitled to rent their units during a specified period applies 2251 only to unit owners who consent to the amendment and unit owners 2252 who acquire title to their units after the effective date of 2253 that amendment. 2254 (15)(14)Except for those portions of the common elements 2255 designed and intended to be used by all unit owners, a portion 2256 of the common elements serving only one unit or a group of units 2257 may be reclassified as a limited common element upon the vote 2258 required to amend the declaration as provided therein or as 2259 required under subsection (1)paragraph (1)(a), and shall not be 2260 considered an amendment pursuant to subsection (4). This is a 2261 clarification of existing law. 2262 Section 57. Section 718.111, Florida Statutes, is amended 2263 to read: 2264 718.111 The association.— 2265 (1) CORPORATE ENTITY.— 2266 (a) The operation of the common interest community 2267condominiumshall be by the association, which must be a Florida 2268 corporation for profit or a Florida corporation not for profit. 2269 Any common interest community thatHowever, any association2270whichwasin existence on January 1, 1977, neednotbe2271 incorporated when created must file for incorporation by January 2272 1, 2017. The owners of units shall be shareholders or members of 2273 the association.The officers and directors of the association2274have a fiduciary relationship to the unit owners. It is the2275intent of the Legislature that nothing in this paragraph shall2276be construed as providing for or removing a requirement of a2277fiduciary relationship between any manager employed by the2278association and the unit owners. An officer, director, or2279manager may not solicit, offer to accept, or accept any thing or2280service of value for which consideration has not been provided2281for his or her own benefit or that of his or her immediate2282family, from any person providing or proposing to provide goods2283or services to the association. Any such officer, director, or2284manager who knowingly so solicits, offers to accept, or accepts2285any thing or service of value is subject to a civil penalty2286pursuant to s. 718.501(1)(d). However, this paragraph does not2287prohibit an officer, director, or manager from accepting2288services or items received in connection with trade fairs or2289education programs.An association may operate more than one 2290 common interest communitycondominium. 2291 (b) A director of the associationwho ispresent at a 2292 meeting of its board at which action on any corporate matter is 2293 taken shall be presumed to have assented to the action taken 2294 unless he or she votes against such action or abstains for a 2295 stated conflict of interestfrom voting. A director of the2296association who abstains from voting on any action taken on any2297corporate matter shall be presumed to have taken no position2298with regard to the action. Directors may not vote by proxy or by 2299 secret ballot at board meetings, except that officers may be 2300 elected by secret ballot. A vote or abstention for each member 2301 present shall be recorded in the minutes and, if the vote is 2302 unanimous, the names of the members are not required to be 2303 recorded in the minutes. 2304 (c) A unit owner does not have any authority to act for the 2305 association by reason of being a unit owner. 2306 (d) As required by s. 617.0830, an officer, director, or 2307 agent shall discharge his or her duties in good faith, with the 2308 care an ordinarily prudent person in a like position would 2309 exercise under similar circumstances, and in a manner he or she 2310 reasonably believes to be in the best interests of the 2311 association. An officer, director, or agent shall, 2312 notwithstanding any indemnification provisions in the documents, 2313 be individually liable for monetary damages as provided in s. 2314 617.0834 if such officer, director, or agent breached or failed 2315 to perform his or her duties and the breach of, or failure to 2316 perform, his or her duties constitutes a violation of criminal 2317 law as provided in s. 617.0834; constitutes a transaction from 2318 which the officer or director derived an improper personal 2319 benefit, either directly or indirectly; or constitutes 2320 recklessness or an act or omission that was in bad faith, with 2321 malicious purpose, or in a manner exhibiting wanton and willful 2322 disregard of human rights, safety, or property. 2323 (e) Circumstances that create a conflict of interest which 2324 require a director to abstain include, but are not limited to: 2325 1. Outside interests, including: 2326 a. A contract or transaction between the association and a 2327 director or the director’s co-owner or family member. 2328 b. A contract or transaction involving the association, 2329 including the approval of a transaction between a unit owner and 2330 a third party, in which a director will benefit financially by 2331 the receipt of a payment in connection with services rendered in 2332 connection with the transaction or of which such person is a 2333 director, an officer, an agent, a partner, an associate, a 2334 trustee, a personal representative, a receiver, a guardian, a 2335 custodian, a conservator, or other legal representative. 2336 2. Outside activities, including: 2337 a. A director competing with the association or a party 2338 rendering services in a transaction to a unit owner. 2339 b. A director having a material financial interest in, or 2340 serving as a director, officer, employee, agent, partner, 2341 associate, trustee, personal representative, receiver, guardian, 2342 custodian, conservator, or other legal representative of, or 2343 consultant to, an entity or individual that competes with the 2344 association in the provision of services or in any other 2345 contract or transaction with a third party. 2346 2347 Ownership of publicly traded stock in a corporation does not 2348 create a conflict of interest if the ownership of the stock is 2349 disclosed. 2350 (f) The officers and directors of the association have a 2351 fiduciary duty and responsibility to the members. An officer, a 2352 director, a manager, an employee, or an agent of an association 2353 or of a management firm may not solicit, offer to accept, or 2354 accept any goods or services of value for which consideration 2355 has not been provided for his or her own benefit, or that of his 2356 or her immediate family, from any person providing or proposing 2357 to provide goods or services to the officer, director, manager, 2358 employee, or agent of the association. Any such person who 2359 knowingly solicits, offers to accept, or accepts any goods or 2360 services of value is subject to a civil penalty pursuant to s. 2361 718.501(1)(d) and a criminal penalty pursuant to s. 812.014. 2362 This paragraph does not prohibit any such person from accepting 2363 goods or services of minimal value received in connection with 2364 trade fairs or education programs. 2365 (2) POWERS AND DUTIES.—The powers and duties of the 2366 association include those set forth in this section and, except 2367 as expressly limited or restricted in this chapter, those set 2368 forth in the declaration and bylaws and chapterspart I of2369chapter607 andchapter617, as applicable. 2370 (3) RESPONSIBILITYPOWERTO MANAGE COMMON INTEREST 2371 COMMUNITYCONDOMINIUMPROPERTY AND TO CONTRACT, SUE, AND BE 2372 SUED.—The association may contract, sue, or be sued with respect 2373 to the exercise or nonexercise of its responsibilitiespowers. 2374 For these purposes, the powers of the association include, but 2375 are not limited to, the maintenance, management, and operation 2376 of the common interest communitycondominiumproperty and 2377 affairs. 2378 (a) After control of the association is obtained by unit 2379 owners other than the developer, the association may institute, 2380 maintain, settle, or appeal actions or hearings in its name on 2381 behalf of all unit owners concerning matters of common interest 2382 to most or all unit owners, including, but not limited to, the 2383 common elements; the roof and structural components of a 2384 building or other improvements; mechanical, electrical, and 2385 plumbing elements serving an improvement or a building; 2386 representations of the developer pertaining to any existing or 2387 proposed commonly used facilities;andprotesting ad valorem 2388 taxes oncommonly used facilities and onunits; and the 2389 developer’s unreasonable representations of common expenses,;2390 and may defend actions in eminent domain or bring inverse 2391 condemnation actions. 2392 (b) If the association has the authority to maintain a 2393 class action, the association may be joined in an action as 2394 representative of that class with reference to litigation and 2395 disputes involving the matters for which the association could 2396 bring a class action. Nothing herein limits any statutory or 2397 common-law right of any individual unit owner or class of unit 2398 owners to bring any action without participation by the 2399 association which may otherwise be available. 2400 (4) ASSESSMENTS; MANAGEMENT OF COMMON ELEMENTS.—The 2401 association musthas the power tomake and collect assessments 2402 andtolease, maintain, repair, and replace the common elements 2403 or association property; however, the association may not charge 2404 a use fee against a unit owner for the use of common elements or 2405 association property unless otherwise provided for in the 2406 documentsdeclaration of condominiumor by a majority vote of 2407 the association or unless the charges relate to expenses 2408 incurred because ofbyan owner having temporary exclusive use 2409 of the common elements or association property. 2410 (5) RIGHT OF ACCESS TO UNITS.— 2411 (a) The association has the irrevocable right of access to 2412 each unit during reasonable hours, when necessary for the 2413 maintenance, repair, inspection of safety systems, or 2414 replacement of any common elements or of any portion of a unit 2415 to be maintained by the association pursuant to the documents 2416declarationor as necessary to prevent damage to the common 2417 elements or to verify the well-being of the residenta unit. 2418 (b)1. In addition to the association’s right of access in 2419 paragraph (a) and regardless of whether authority is provided in 2420 the declaration or other recorded common interest community 2421condominiumdocuments, an association, at the sole discretion of 2422 the board, may enter an abandoned unit to inspect the unit and 2423 adjoining common elements; make repairs to the unit or to the 2424 common elements serving the unit, as needed; repair the unit if 2425 mold or deterioration is present; turn on the utilities for the 2426 unit; or otherwise maintain, preserve, or protect the unit and 2427 adjoining common elements. For purposes of this paragraph, a 2428 unit is presumed to be abandoned if: 2429 a. The unit is the subject of a foreclosure action and no 2430 tenant appears to have resided in the unit for at least 4 2431 continuous weeks without prior written notice to the 2432 association; or 2433 b. No tenant appears to have resided in the unit for 2 2434 consecutive months without prior written notice to the 2435 association, and the association is unable to contact the owner 2436 or determine the whereabouts of the owner after reasonable 2437 inquiry. 2438 2. Except in the case of an emergency, an association may 2439 not enter an abandoned unit until 2 days after notice of the 2440 association’s intent to enter the unit has been mailed, 2441 electronically transmitted, or hand deliveredhand-deliveredto 2442 the owner at the address of the owner as reflected in the 2443 records of the association.The notice may be given by2444electronic transmission to unit owners who previously consented2445to receive notice by electronic transmission.2446 3. Any expense incurred by an association pursuant to this 2447 paragraph is chargeable to the unit owner and enforceable as an 2448 assessment pursuant to s. 718.116, and the association may use 2449 its lien authority provided by s. 718.116 to enforce collection 2450 of the expense. 2451 4. The association may petition a court of competent 2452 jurisdiction to appoint a receiver to lease out an abandoned 2453 unit for the benefit of the association to offset against the 2454 rental income the association’s costs and expenses of 2455 maintaining, preserving, and protecting the unit and the 2456 adjoining common elements, including the costs of the 2457 receivership and all unpaid assessments, interest, 2458 administrative late fees, costs, and reasonable attorney fees. 2459 (6) OPERATION OF COMMON INTEREST COMMUNITIESCONDOMINIUMS2460 CREATED PRIOR TO 1977.—Notwithstanding any provision of this 2461 chapter, an association may operate two or more residential 2462 common interest communitiescondominiumsin which the initial 2463 common interest communitycondominiumdeclaration was recorded 2464 prior to January 1, 1977, and may continue to so operate such 2465 common interest communitiescondominiumsas a single common 2466 interest communitycondominiumfor purposes of financial 2467 matters, including budgets, assessments, accounting, 2468 recordkeeping, and similar matters, if provision is made for 2469 such consolidated operation in the applicable declarations of 2470 each such common interest communitycondominiumor in the 2471 bylaws. An association for such common interest communities 2472condominiumsmay also provide for consolidated financial 2473 operation as described in this section either by amending its 2474 documentsdeclarationpursuant to s. 718.110(1)718.110(1)(a)or 2475 by amending its bylaws and having the amendment approved by not 2476 less than two-thirds of the total voting interests. 2477 Notwithstanding any provision in this chapter, common expenses 2478 for residential common interest communitiescondominiumsin such 2479 a project being operated by a single association may be assessed 2480 against all unit owners in such project pursuant to the 2481 proportions or percentages established for the projecttherefor2482 in the documentsdeclarationsas initially recorded or in the 2483 bylaws as initially adopted, subject, however, to the 2484 limitations of ss. 718.116 and 718.302. 2485 (7) TITLE TO PROPERTY.— 2486 (a)The association has the power to acquire title to2487property or otherwise hold, convey, lease, and mortgage2488association property for the use and benefit of its members. The2489power to acquire personal property shall be exercised by the2490board of administration.Except as otherwise permitted in 2491 subsections (8) and (9) and in s. 718.114, annoassociation may 2492 not acquire, convey, or lease, or mortgageassociation real 2493 property except in the manner provided in the documents 2494declaration, and if the documents dodeclaration doesnot 2495 specify the procedure, then approval of 75 percent of the total 2496 voting interests shall be required. 2497 (b) Subject to the provisions of s. 718.112(2)(n) 2498718.112(2)(m), the association, through its board, mayhas the2499limited power toconvey a portion of the common elements to a 2500 condemning authority for the purposes of providing utility 2501 easements, right-of-way expansion, or other public purposes, 2502 whether negotiated or as a result of eminent domain proceedings. 2503 (8) PURCHASE OF LEASES.—The association mayhas the power2504topurchase any land or recreation lease, subject to the same 2505 manner of approval as in s. 718.114 for the acquisition of 2506 leaseholds. 2507 (9) PURCHASE OF UNITS.—The association mayhas the power,2508unless prohibited by the declaration, articles of incorporation,2509or bylaws of the association, topurchase units in the common 2510 interest communitycondominiumandtoacquire and hold, lease, 2511 mortgage, and convey the unitsthem. There shall be no 2512 limitation on the association’s right to purchase a unit at a 2513 foreclosure sale resulting from the association’s foreclosure of 2514 its lien for unpaid assessments, or to take title by deed in 2515 lieu of foreclosure. 2516 (10) EASEMENTS.—Unless prohibited by the declaration, the 2517 board of administration has the authority, without the joinder 2518 of any unit owner, to grant, modify, or move any easement if the 2519 easement constitutes part of or crosses the common elements or 2520 association property. This subsection does not authorize the 2521 board of administration to modify, move, or vacate any easement 2522 created in whole or in part for the use or benefit of anyone 2523 other than the unit owners, or crossing the property of anyone 2524 other than the unit owners, without the consent or approval of 2525 those other persons having the use or benefit of the easement, 2526 as required by law or by the instrument creating the easement. 2527 Nothing in this subsection affects the minimum requirements of 2528 s. 718.104(6)(r)718.104(4)(n)or the powers enumerated in 2529 subsection (3). 2530 (11) INSURANCE.—In order to protect the safety, health, and 2531 welfare of the people of the State of Florida and to ensure 2532 consistency in the provision of insurance coverage to common 2533 interest communitiescondominiumsand their unit owners, this 2534 subsection applies to every residential common interest 2535 communitycondominiumin the state, regardless of the date of 2536 its declaration of common interest communitycondominium. It is 2537 the intent of the Legislature to encourage lower or stable 2538 insurance premiums for associations described in this 2539 subsection. 2540 (a) The association shall obtain and maintain adequate 2541propertyinsurance, regardless of any requirement in the2542declaration of condominium for coverage by the association for2543full insurable value, replacement cost, or similar coverage,2544must bebased on the replacement cost of the property to be 2545 insured as determined by an independent insurance appraisal or 2546 update of a prior appraisal to protect the association, 2547 association property, common elements, and the common interest 2548 community property required to be insured by the association 2549 pursuant to paragraph (b). The full insurable value shall be 2550 independently determined at least every 36 months. When 2551 determining the adequate amount of property insurance coverage, 2552 the association may include reasonable deductibles as determined 2553 by the board.The replacement cost must be determined at least2554once every 36 months.2555 1. An association or group of associations may provide 2556 adequate property insurance through a self-insurance fund that 2557 complies with the requirements of ss. 624.460-624.488. 2558 2. The association may also provide adequate property 2559 insurance coverage for a group of at least three communities 2560 created and operating under this chapter, chapter 719, chapter2561720,or chapter 721 by obtaining and maintaining for such 2562 communities insurance coverage sufficient to cover an amount 2563 equal to the probable maximum loss for the communities for a 2564 250-year windstorm event. Such probable maximum loss must be 2565 determined through the use of a competent model that has been 2566 accepted by the Florida Commission on Hurricane Loss Projection 2567 Methodology. A policy or program providing such coverage may not 2568 be issued or renewed after July 1, 2008, unless it has been 2569 reviewed and approved by the Office of Insurance Regulation. The 2570 review and approval must include approval of the policy and 2571 related forms pursuant to ss. 627.410 and 627.411, approval of 2572 the rates pursuant to s. 627.062, a determination that the loss 2573 model approved by the commission was accurately and 2574 appropriately applied to the insured structures to determine the 2575 250-year probable maximum loss, and a determination that 2576 complete and accurate disclosure of all material provisions is 2577 provided to common interest communitycondominiumunit owners 2578 before execution of the agreement by a common interest community 2579condominiumassociation. 2580 3. When determining the adequate amount of property 2581 insurance coverage, the association may consider deductibles as 2582 determined by this subsection. 2583 (b)1. Every policy issued to protect an association 2584 building must provide that the term “building,” wherever used in 2585 the policy, shall include, but not be limited to, the entry 2586 doors, glass in windows and sliding glass doors exposed to the 2587 elements, fixtures, installations, or additions comprising that 2588 part of the building within the unfinished interior surfaces of 2589 the perimeter walls, floors, and ceilings of the individual 2590 units initially installed, or replacements thereof of like kind 2591 or quality, in accordance with the original plans and 2592 specifications, or as they existed at the time the unit was 2593 initially conveyed if the original plans and specifications are 2594 not available. 2595 2. The term “building” shall not include unit window 2596 treatments, wall coverings, ceiling coverings, floor coverings, 2597 electrical fixtures, appliances, air conditioner or heating 2598 equipment regardless of whether inside or outside the unit, and 2599 water heaters or built-in cabinets unless they are damaged by a 2600 covered peril under the association policy. With respect to the 2601 coverage under this subparagraph, the unit owners must be 2602 considered additional insureds under the policy. 2603 (c) Every insurance policy issued to an individual owner 2604 shall provide that coverage afforded by the policy is greater 2605 than the amount recoverable under any other policy covering the 2606 same property without rights of subrogation against the 2607 association. 2608 (d)(b)If an association is a developer-controlled 2609 association, the association shall exercise its best efforts to 2610 obtain and maintain insurance as described in paragraph (a). 2611 Failure to obtain and maintain adequate hazardproperty2612 insurance during any period of developer control constitutes an 2613 individualabreach of fiduciary responsibility by the developer 2614 and developer-appointed members of the boardof directorsof the 2615 association, unless the members can show that despite such 2616 failure, theyhavemade their best efforts to maintain the 2617 required coverage. 2618(c) Policies may include deductibles as determined by the2619board.26201. The deductibles must be consistent with industry2621standards and prevailing practice for communities of similar2622size and age, and having similar construction and facilities in2623the locale where the condominium property is situated.26242. The deductibles may be based upon available funds,2625including reserve accounts, or predetermined assessment2626authority at the time the insurance is obtained.26273. The board shall establish the amount of deductibles2628based upon the level of available funds and predetermined2629assessment authority at a meeting of the board in the manner set2630forth in s. 718.112(2)(e).2631(d) An association controlled by unit owners operating as a2632residential condominium shall use its best efforts to obtain and2633maintain adequate property insurance to protect the association,2634the association property, the common elements, and the2635condominium property that must be insured by the association2636pursuant to this subsection.2637 (e) The documentsdeclaration of condominiumas originally 2638 recorded, or as amended pursuant to procedures provided therein, 2639 may provide that associationcondominiumproperty consisting of 2640 freestanding buildings comprised of no more than one building in 2641 or on such unit need not be insured by the association if the 2642 declaration requires the unit owner to obtain adequate insurance 2643 for the associationcondominiumproperty. An association may 2644 also obtain and maintain liability insurance for directors and 2645 officers, insurance for the benefit of association employees, 2646 and flood insurance for common elements and,association 2647 property, and units. 2648 (f) An individual unit owner’s property insurance policy 2649 must provide that coverage afforded by such policy is excess 2650 coverage that is greater than the amount recoverable under any 2651 other policy covering the same property. Such policies must 2652 include loss assessment coverage of at least $2,000 per 2653 occurrence and may not be offset by an assessment required for 2654 uninsured or underinsured losses. An insurance policy issued to 2655 an individual unit owner providing such coverage shall not 2656 provide rights of subrogation against the association operating 2657 the common interest community in which such individual’s unit is 2658 located. 2659(f) Every property insurance policy issued or renewed on or2660after January 1, 2009, for the purpose of protecting the2661condominium must provide primary coverage for:26621. All portions of the condominium property as originally2663installed or replacement of like kind and quality, in accordance2664with the original plans and specifications.26652. All alterations or additions made to the condominium2666property or association property pursuant to s. 718.113(2).26673. The coverage must exclude all personal property within2668the unit or limited common elements, and floor, wall, and2669ceiling coverings, electrical fixtures, appliances, water2670heaters, water filters, built-in cabinets and countertops, and2671window treatments, including curtains, drapes, blinds, hardware,2672and similar window treatment components, or replacements of any2673of the foregoing which are located within the boundaries of the2674unit and serve only such unit. Such property and any insurance2675thereupon is the responsibility of the unit owner.2676(g) A condominium unit owner policy must conform to the2677requirements of s. 627.714.26781. All reconstruction work after a property loss must be2679undertaken by the association except as otherwise authorized in2680this section. A unit owner may undertake reconstruction work on2681portions of the unit with the prior written consent of the board2682of administration. However, such work may be conditioned upon2683the approval of the repair methods, the qualifications of the2684proposed contractor, or the contract that is used for that2685purpose. A unit owner must obtain all required governmental2686permits and approvals before commencing reconstruction.26872. Unit owners are responsible for the cost of2688reconstruction of any portions of the condominium property for2689which the unit owner is required to carry property insurance, or2690for which the unit owner is responsible under paragraph (j), and2691the cost of any such reconstruction work undertaken by the2692association is chargeable to the unit owner and enforceable as2693an assessment and may be collected in the manner provided for2694the collection of assessments pursuant to s. 718.116.26953. A multicondominium association may elect, by a majority2696vote of the collective members of the condominiums operated by2697the association, to operate the condominiums as a single2698condominium for purposes of insurance matters, including, but2699not limited to, the purchase of the property insurance required2700by this section and the apportionment of deductibles and damages2701in excess of coverage. The election to aggregate the treatment2702of insurance premiums, deductibles, and excess damages2703constitutes an amendment to the declaration of all condominiums2704operated by the association, and the costs of insurance must be2705stated in the association budget. The amendments must be2706recorded as required by s. 718.110.2707 (g)(h)The association shall maintaininsurance orfidelity 2708 insurancebondingof all persons and firms who control or 2709 disburse funds of the association. The insurance policy or 2710 fidelity bond must cover the maximum funds that will be in the 2711 custody of the association or its management agent at any one 2712 time.As used in this paragraph, the term “persons who control2713or disburse funds of the association” includes, but is not2714limited to, those individuals authorized to sign checks on2715behalf of the association, and the president, secretary, and2716treasurer of the association.The association shall bear the 2717 cost of any such insurancebonding. 2718 (h)(i)The association may amend the common interest 2719 community documents to conform the documents to the coverage 2720 requirements in this subsectiondeclaration of condominium2721 without regard to any requirement for approval by mortgagees of 2722 amendments affecting insurance requirementsfor the purpose of2723conforming the declaration of condominium to the coverage2724requirements of this subsection. 2725 (i)(j)Any portion of the common interest community 2726condominiumproperty required tothat mustbe insured by the 2727 association againstpropertylosspursuant to paragraph (f)2728 which is damaged by covered perilan insurable eventshall be 2729 reconstructed, repaired, or replaced as necessary by the 2730 association as a common expense. In the absence of an insurable 2731 event, the association or the unit owners shall be responsible 2732 for the reconstruction, repair, or replacement as determined by 2733 the maintenance provisions of the declaration or bylaws. All 2734 property insurance deductibles and other damages in excess of 2735 property insurance coverage under thepropertyinsurance 2736 policies maintained by the association are a common expense of 2737 the associationcondominium, except that: 2738 1. A unit owner is responsible for the costs of repair or 2739 replacement of any portion of the common interest community 2740condominiumproperty not paid by insurance proceeds if such 2741 damage is caused by intentional conduct, negligence, or failure 2742 to comply with the terms of the declaration or the rules of the 2743 association by a unit owner, the members of his or her family, 2744 unit occupants, tenants, guests, or invitees, without compromise 2745 of the subrogation rights of the insurer. 2746 2. The provisions of subparagraph 1. regarding the 2747 financial responsibility of a unit owner for the costs of 2748 repairing or replacing other portions of the common interest 2749 communitycondominiumproperty also apply to the costs of repair 2750 or replacement of personal property of other unit owners or the 2751 association, as well as other property, whether real or 2752 personal, which the unit owners are required to insure. 2753 3. To the extent the cost of repair or reconstruction for 2754 which the unit owner is responsible under this paragraph is 2755 reimbursed to the association by insurance proceeds, and the 2756 association has collected the cost of such repair or 2757 reconstruction from the unit owner, the association shall 2758 reimburse the unit owner without the waiver of any rights of 2759 subrogation. 2760 4. The association is not obligated to pay for 2761 reconstruction or repairs of property losses as a common expense 2762 if the property losses were known or should have been known to a 2763 unit owner and were not reported to the association until after 2764 the insurance claim of the association for that property was 2765 settled or resolved with finality, or denied because it was 2766 untimely filed. 2767(k) An association may, upon the approval of a majority of2768the total voting interests in the association, opt out of the2769provisions of paragraph (j) for the allocation of repair or2770reconstruction expenses and allocate repair or reconstruction2771expenses in the manner provided in the declaration as originally2772recorded or as amended. Such vote may be approved by the voting2773interests of the association without regard to any mortgagee2774consent requirements.2775(l) In a multicondominium association that has not2776consolidated its financial operations under subsection (6), any2777condominium operated by the association may opt out of the2778provisions of paragraph (j) with the approval of a majority of2779the total voting interests in that condominium. Such vote may be2780approved by the voting interests without regard to any mortgagee2781consent requirements.2782(m) Any association or condominium voting to opt out of the2783guidelines for repair or reconstruction expenses as described in2784paragraph (j) must record a notice setting forth the date of the2785opt-out vote and the page of the official records book on which2786the declaration is recorded. The decision to opt out is2787effective upon the date of recording of the notice in the public2788records by the association. An association that has voted to opt2789out of paragraph (j) may reverse that decision by the same vote2790required in paragraphs (k) and (l), and notice thereof shall be2791recorded in the official records.2792 (j)(n)The association is not obligated to pay for any 2793 reconstruction or repair expenses due topropertyloss to any 2794 additions or alterationsimprovementsinstalled by a current or 2795 former owner of the unit or by the developer if they werethe2796improvement benefits only the unit for which it was installed2797and isnot part of the standard improvements installed by the 2798 developer on all units as part of original construction, whether 2799 or not such addition or alterationimprovementis located within 2800 the unit. This paragraph does not relieve any party of its 2801 obligations regarding recovery due under any insurance 2802 implemented specifically for any such additions or alterations 2803improvements. 2804(o) The provisions of this subsection shall not apply to2805timeshare condominium associations. Insurance for timeshare2806condominium associations shall be maintained pursuant to s.2807721.165.2808 (12) OFFICIAL RECORDS.— 2809 (a) From the inception of the association, the association 2810 shall maintain each of the following items, if applicable, which 2811 constitutes the official records of the association: 2812 1. A copy of the plans, permits, warranties, and other 2813 items provided by the developer pursuant to s. 718.301(4). 2814 2. A photocopy of the recorded documentsdeclaration of2815condominiumof each common interest communitycondominium2816 operated by the association and each amendment to each document 2817declaration. 2818 3. A photocopy of the recorded bylaws of the association 2819 and each amendment to the bylaws. 2820 4. A certified copy of the articles of incorporation of the 2821 association, or other documents creating the association, and 2822 each amendment thereto. 2823 5. A copy of the current rules of the association. 2824 6. A book or books that contain the minutes of all meetings 2825 of the association, the board of administration, and the unit 2826 owners, which minutes must be retained for at least 7 years. 2827 7. A current roster of all unit owners and their mailing 2828 addresses, unit identifications, voting certifications, and, if 2829 known, telephone numbers. The association shall also maintain 2830 the electronic mailing addresses and facsimile numbers of unit 2831 owners consenting to receive notice by electronic transmission. 2832 The electronic mailing addresses and facsimile numbers are not 2833 accessible to unit owners if consent to receive notice by 2834 electronic transmission is not provided in accordance with 2835 subparagraph (e)5.subparagraph (c)5.However, the association 2836 is not liable for an inadvertent disclosure of the electronic 2837 mail address or facsimile number for receiving electronic 2838 transmission of notices. 2839 8. All current insurance policies of the association and 2840 common interest communitiescondominiumsoperated by the 2841 association. 2842 9. A current copy of any management agreement, lease, or 2843 other contract to which the association is a party or under 2844 which the association or the unit owners have an obligation or 2845 responsibility. 2846 10. Bills of sale or transfer for all property owned by the 2847 association. 2848 11. Accounting records for the association and separate 2849 accounting records for each common interest community 2850condominiumthat the association operates. All accounting 2851 records must be maintained for at least 7 years. Any person who 2852 knowingly or intentionally defaces or destroys such records, or 2853 who knowingly or intentionally fails to create or maintain such 2854 records, with the intent of causing harm to the association or 2855 one or more of its members, is personally subject to a civil 2856 penalty pursuant to s. 718.501(1)(d). The accounting records 2857 must include, but are not limited to: 2858 a. Accurate, itemized, and detailed records of all receipts 2859 and expenditures. 2860 b. A current account and a monthly, bimonthly, or quarterly 2861 statement of the account for each unit designating the name of 2862 the unit owner, the due date and amount of each assessment, the 2863 amount paid on the account, and the balance due. 2864 c. All audits, reviews, accounting statements, and 2865 financial reports of the association or common interest 2866 communitycondominium. 2867 d. All contracts for work to be performed. Bids for work to 2868 be performed are also considered official records and must be 2869 maintained by the association. 2870 12. Ballots, sign-in sheets, voting proxies, and all other 2871 papers relating to voting by unit owners, which must be 2872 maintained for 1 year from the date of the election, vote, or 2873 meeting to which the document relates, notwithstanding paragraph 2874 (b). 2875 13. All rental records if the association is acting as 2876 agent for the rental of common interest communitycondominium2877 units. 2878 14. A copy of the current question and answer sheet as 2879 described in s. 718.504. 2880 15. All other written records of the association not 2881 specifically included in the foregoing which are related to the 2882 operation of the association. 2883 16. A copy of the inspection report as described in s. 2884 718.301(4)(p). 2885 (b) The official records of the association must be 2886 maintained within the state for at least 7 years. The records of 2887 the association shall be made available to a unit owner within 2888 45 miles of the common interest communitycondominiumproperty 2889 or within the county in which the common interest community 2890condominiumproperty is located within 5 working days after 2891 receipt of a written request by the board or its designee. 2892 However, such distance requirement does not apply to an 2893 association governing a timeshare common interest community 2894condominium. This paragraph may be complied with by having a 2895 copy of the official records of the association available for 2896 inspection or copying on the common interest community 2897condominiumproperty or association property, or the association 2898 may offer the option of making the records available to a unit 2899 owner electronically via the Internet or by allowing the records 2900 to be viewed in electronic format on a computer screen and 2901 printed upon request. 2902 (c) The association is not responsible for the use or 2903 misuse of the information provided to an association member or 2904 his or her authorized representative pursuant to the compliance 2905 requirements of this chapter unless the association has an 2906 affirmative duty not to disclose such information pursuant to 2907 this chapter. 2908 (d)(c)The official records of the association are open to 2909 inspection by any association member or the authorized 2910 representative of such member at all reasonable times. The right 2911 to inspect the records includes the right to make or obtain 2912 copies, at the reasonable expense, if any, of the member. The 2913 division shall establishassociation may adoptreasonable rules 2914 that do not restrict access to the recordsregarding the2915frequency, time, location, notice,and manner of record 2916 inspections and copying. 2917 1. The failure of an association to provide the records 2918 within 10 working days after receipt of a written request 2919 creates a rebuttable presumption that the association willfully 2920 failed to comply with this paragraph. A unit owner who is denied 2921 access to official records is entitled to the actual damages or 2922 minimum damages for the association’s willful failure to comply. 2923 Minimum damages are $100$50per calendar day for up to 10 days, 2924 beginning on the 6th11thworking day after receipt of the 2925 written request. Damages may not be awarded if the documents are 2926 available in the official records of the county in which the 2927 association is located. 2928 2. The failure to permit inspection entitles any person 2929 prevailing in an enforcement action to recover reasonable 2930 attorney fees from the person in control of the records who, 2931 directly or indirectly, knowingly denied access to the records. 2932 3. Any person who knowingly or intentionally defaces or 2933 destroys accounting records that are required by this chapter to 2934 be maintained during the period thatfor whichsuch records are 2935 required to be maintained, or who knowingly or intentionally 2936 fails to create or maintainaccountingrecords that are required 2937 to be created or maintained, with the intent of causing harm to 2938 the association or one or more of its members, is personally 2939 subject to a civil penalty pursuant to s. 718.501(1)(d). 2940 4. The association shall maintain an adequate number of 2941 copies of the documentsdeclaration, articles of incorporation, 2942 bylaws, and rules, and all amendments to each of the foregoing, 2943 as well as the question and answer sheet as described in s. 2944 718.504, the inspection report provided for in s. 718.301(4)(p), 2945 and year-end financial information required under this section, 2946 on the common interest communitycondominiumproperty to ensure 2947 their availability to unit owners and prospective buyers within 2948 24 business hours after a requestpurchasers, and may charge 25 2949 cents per pageits actual costsfor preparing and furnishing 2950 these documents to those requesting the documents, unless the 2951 documents are electronically transmitted. 2952 5. An association shall allow a member or his or her 2953 authorized representative to use a portable device, including a 2954 smartphone, tablet, portable scanner, or any other technology 2955 capable of scanning or taking photographs, to make an electronic 2956 copy of the official records in lieu of the association’s 2957 providing the member or his or her authorized representative 2958 with a copy of such records. The association may not charge a 2959 member or his or her authorized representative for the use of a 2960 portable device. 2961 6. Any charge for personnel time to retrieve records must 2962 be reasonable and based on the compensation of the lowest paid 2963 employee of the records custodian or $20 per hour, whichever is 2964 less. Personnel costs may not be added to the cost of making 2965 photocopies as provided in this paragraph. 2966 7. This paragraph is not meant to obstruct, delay, hinder, 2967 or impede the access to and inspection of records but is meant 2968 to be used as a guide for controlled business processes. 2969 8. This paragraph does not restrict the association’s 2970 ability to provide more expeditious procedures that facilitate 2971 inspection and retrieval of information. 2972 9. This paragraph does not restrict or delay inspection of 2973 any records by a member of the board of directors or his or her 2974 designee who is granted access to the records when requested. 2975 (e) Notwithstanding this paragraph, the following records 2976 are not accessible to unit owners: 2977 1. Any record protected by the lawyer-client privilege as 2978 described in s. 90.502 and any record protected by the work 2979 product privilege, including a record prepared by an association 2980 attorney or prepared at the attorney’s express direction, which 2981 reflects a mental impression, conclusion, litigation strategy, 2982 or legal theory of the attorney or the association, and which 2983 was prepared exclusively for civil or criminal litigation or for 2984 adversarial administrative proceedings, or which was prepared in 2985 anticipation of such litigation or proceedings until the 2986 conclusion of the litigation or proceedings. 2987 2. Information obtained by an association in connection 2988 with the approval of the lease, sale, or other transfer of a 2989 unit. 2990 3. Personnel records of association or management company 2991 employees, including, but not limited to, disciplinary, payroll, 2992 health, and insurance records. For purposes of this 2993 subparagraph, the term “personnel records” does not include 2994 written employment agreements with an association employee or 2995 management company, or budgetary or financial records that 2996 indicate the compensation paid to an association employee. 2997 4. Medical records of unit owners. 2998 5. Social security numbers, driver license numbers, credit 2999 card numbers, e-mail addresses, telephone numbers, facsimile 3000 numbers, emergency contact information, addresses of a unit 3001 owner other than as provided to fulfill the association’s notice 3002 requirements, and other personal identifying information of any 3003 person, excluding the person’s name, unit designation, mailing 3004 address, property address, and any address, e-mail address, or 3005 facsimile number provided to the association to fulfill the 3006 association’s notice requirements. Notwithstanding the 3007 restrictions in this subparagraph, an association may print and 3008 distribute to parcel owners a directory containing the name, 3009 parcel address, and all telephone numbers of each parcel owner. 3010 However, an owner may exclude his or her telephone numbers from 3011 the directory by so requesting in writing to the association. An 3012 owner may consent in writing to the disclosure of other contact 3013 information described in this subparagraph. The association is 3014 not liable for the inadvertent disclosure of information that is 3015 protected under this subparagraph if the information is included 3016 in an official record of the association and is voluntarily 3017 provided by an owner and not requested by the association. 3018 6. Electronic security measures that are used by the 3019 association to safeguard data, including passwords. 3020 7. The software and operating system used by the 3021 association which allow the manipulation of data, even if the 3022 owner owns a copy of the same software used by the association. 3023 The data is part of the official records of the association. 3024 (f)(d)The association shall prepare a question and answer 3025 sheet as described in s. 718.504, and shall update it annually. 3026 (g)(e)1. The association or its authorized agent is not 3027 required to provide a prospective purchaser or lienholder with 3028 information about the common interest communitycondominiumor 3029 the association other than information or documents required by 3030 this chapter to be made available or disclosed. The association 3031 or its authorized agent may charge a reasonable fee to the 3032 prospective purchaser, lienholder, or the current unit owner for 3033 providing good faith responses to requests for information by or 3034 on behalf of a prospective purchaser or lienholder, other than 3035 that required by law, if the fee does not exceed $150 plus the 3036 reasonable cost of photocopying and any attorneyattorney’sfees 3037 incurred by the association in connection with the response. 3038 2. An association and its authorized agent are not liable 3039 for providing such information in good faith pursuant to a 3040 written request if the person providing the information includes 3041 a written statement in substantially the following form: “THE 3042 RESPONSES HEREIN ARE MADE IN GOOD FAITH AND TO THE BEST OF MY 3043 ABILITY AS TO THEIR ACCURACY.” 3044 (h)(f)An outgoing board or committee member must 3045 relinquish all official records and property of the association 3046 in his or her possession or under his or her control to the 3047 incoming board within 5 days after the election. The division 3048 shall impose a civil penalty as set forth in s. 718.501(1)(d)6. 3049 against an outgoing board or committee member who willfully and 3050 knowingly fails to relinquish such records and property. 3051 (13) FINANCIAL REPORTING.—Within 90 days after the end of3052the fiscal year, or annually on a date provided in the bylaws,3053 The association shall prepare and complete, or contract for the 3054 preparation and completion of, a financial report for the 3055 preceding fiscal year. When a certified public accountant is 3056 retained to provide the financial report, the association shall 3057 provide the accountant with the required information within 45 3058 days after the end of the fiscal year. Within 1021days after 3059 the final financial report is completed by the association or 3060 received from the third party, but not later than 90120days 3061 after the end of the fiscal year or other date as provided in 3062 the bylaws, the association shall mail to each unit owner at the 3063 address last furnished to the association by the unit owner, or 3064 hand deliver to each unit owner, a copy of the financial report 3065 or a notice that a copy of the financial report will be 3066 electronically transmitted, mailed, or hand delivered to the 3067 unit owner, without charge, upon receipt of a written request 3068 from the unit owner. 3069 (a) The division shall adopt rules setting forth uniform 3070 accounting principles and standards to be used by all 3071 associations and addressing the financial reporting requirements 3072 for multi-common interest communitymulticondominium3073 associations. The rules must include, but not be limited to, 3074 uniform reporting proceduresstandardsfor disclosure of the 3075presenting a summary of associationreserves, including 3076 information providing whether the reserves were and are 3077 currently being funded on a straight line or pooled basis at a 3078 level that provides equal contributions over the remaining life 3079 of the elements consistent with an equal contribution over the 3080 total useful life of the elements sufficient to prevent the need 3081 for a balloon payment or special assessment if continued at the 3082 same level and, if not, the amount necessary to bring the 3083 reserves up to the level necessary to avoid a special assessment 3084 or balloon paymenta good faith estimate disclosing the annual3085amount of reserve funds that would be necessary for the3086association to fully fund reserves for each reserve item based3087on the straight-line accounting method. This disclosure is not3088applicable to reserves funded via the pooling method. In 3089 adopting such rules, the division shall considerthe number of3090members andannual revenues of an association. 3091 (b) Within 30 days after the end of the fiscal year, the 3092 monthly report, including the year-to-date report, before the 3093 certified public accountant’s financial reports are made 3094 available shall be electronically transmitted, mailed, or hand 3095 delivered to unit owners without charge upon request. 3096 (c) The person preparing the financial reports is entitled 3097 to rely on the inspection report provided for in s. 3098 718.301(4)(p), if it is no more than 3 years old, to meet the 3099 fiscal and fiduciary standards of this chapter. In adopting 3100 rules consistent with this paragraph, the division shall 3101 consider the annual revenues of the association. 3102 (d) Financial statementsreportsshall be prepared as 3103 follows: 3104 1.(a)An associationthat meets the criteria of this3105paragraphshall prepare a complete set of financial statements 3106 in accordance with generally accepted accounting principles. The 3107 financial statements must be based upon the association’s total 3108 annual revenues, as follows: 3109 a.1.An association with total annual revenuesof $150,0003110or more, butless than $150,000$300,000,shall prepare compiled 3111 financial statements. 3112 b.2.An association with total annual revenues of at least 3113 $150,000$300,000, but less than $500,000, shall prepare 3114 reviewed financial statements. 3115 c.3.An association with total annual revenues of $500,000 3116 or more shall prepare audited financial statements. 3117(b)1. An association with total annual revenues of less3118than $150,000 shall prepare a report of cash receipts and3119expenditures.31202. An association that operates fewer than 50 units,3121regardless of the association’s annual revenues, shall prepare a3122report of cash receipts and expenditures in lieu of financial3123statements required by paragraph (a).3124 2.3.Financial statementsA report of cash receipts and3125disbursementsmust disclose the amount of receipts by accounts 3126 and receipt classifications and the amount of expenses by 3127 accounts and expense classifications, including, but not limited 3128 to, the following, as applicable: costs for security, 3129 professional and management fees and expenses, taxes, costs for 3130 recreation facilities, expenses for refuse collection and 3131 utility services, expenses for lawn care, costs for building 3132 maintenance and repair, insurance costs, administration and 3133 salary expenses, and reserves accumulated and expended for 3134 capital expenditures, deferred maintenance, and any other 3135 category for which the association maintains reserves. 3136 (e)(c)The boardAn associationmay prepare, or cause to be 3137 prepared, a higher level of reporting,without a meeting of or 3138 approval by the unit owners:31391. Compiled, reviewed, or audited financial statements, if3140the association is required to prepare a report of cash receipts3141and expenditures;31422. Reviewed or audited financial statements, if the3143association is required to prepare compiled financial3144statements; or31453. Audited financial statements if the association is3146required to prepare reviewed financial statements. 3147 (f)(d)If approved by a majority of the voting interests 3148 present at a properly called meeting of the association, an 3149 association may prepare, or cause to be prepared, a lower level 3150 of reporting, but not lower than the level of reporting required 3151 in paragraph (d). 3152 (g) If an association is under developer control, the 3153 developer must hire a certified public accountant firm to 3154 prepare the appropriate fiscal year report in accordance with 3155 generally accepted accounting principles. The certified public 3156 accountant firm must be licensed in the state and have passed 3157 its current peer review administered by the American Institute 3158 of Certified Public Accountants. The developer may not waive or 3159 modify its reporting requirements pursuant to this subsection. 3160 Any report prepared under this paragraph shall be paid for by 3161 the developer.:31621. A report of cash receipts and expenditures in lieu of a3163compiled, reviewed, or audited financial statement;31642. A report of cash receipts and expenditures or a compiled3165financial statement in lieu of a reviewed or audited financial3166statement; or31673. A report of cash receipts and expenditures, a compiled3168financial statement, or a reviewed financial statement in lieu3169of an audited financial statement.3170 3171Such meeting and approval must occur before the end of the3172fiscal year and is effective only for the fiscal year in which3173the vote is taken, except that the approval may also be3174effective for the following fiscal year. If the developer has3175not turned over control of the association, all unit owners,3176including the developer, may vote on issues related to the3177preparation of the association’s financial reports, from the3178date of incorporation of the association through the end of the3179second fiscal year after the fiscal year in which the3180certificate of a surveyor and mapper is recorded pursuant to s.3181718.104(4)(e) or an instrument that transfers title to a unit in3182the condominium which is not accompanied by a recorded3183assignment of developer rights in favor of the grantee of such3184unit is recorded, whichever occurs first. Thereafter, all unit3185owners except the developer may vote on such issues until3186control is turned over to the association by the developer. Any3187audit or review prepared under this section shall be paid for by3188the developer if done before turnover of control of the3189association. An association may not waive the financial3190reporting requirements of this section for more than 33191consecutive years.3192 (14) COMMINGLING.—All funds collected by an association 3193 shall be maintained separately in the association’s name.For3194investment purposes only, reserve funds may be commingled with3195operating funds of the association. CommingledOperating and 3196 reserve funds shall be accounted for separately in, anda 3197 commingled account and shall not, at any time, be less than the 3198 amount identified as reserve funds. A community association 3199 manager or community association management firm required to be 3200 licensed under s. 468.432, or an agent, an employee, an officer, 3201 or a director of an association, may not commingle any 3202 association funds with his or her funds or with the funds of any 3203 other association. 3204 (a) All association funds held by a developer shall be 3205 maintained separately in the association’s name. Reserve and 3206 operating funds of the association may not be commingled before 3207 turnover of control of the association. 3208 (b) A developer in control of a common interest community 3209 association may not commingle any association funds with his or 3210 her funds or with the funds of any other common interest 3211 community association. 3212 (c) Association funds may not be used by a developer to 3213 defend a civil or criminal action, administrative proceeding, or 3214 arbitration proceeding filed against the developer or directors 3215 appointed to the association board by the developer, including 3216 any action or proceeding involving the operation of the 3217 developer-controlled association. 3218 (d) This subsection does not prohibit a multi-common 3219 interest communitymulticondominiumassociation from commingling 3220 the operating funds of separate common interest communities 3221condominiumsor the reserve funds of separate common interest 3222 communitiescondominiums. Furthermore, for investment purposes 3223 only, a multi-common interest communitymulticondominium3224 association may commingle the operating funds of separate common 3225 interest communitiescondominiumswith the reserve funds of 3226 separate common interest communitiescondominiums. 3227 (e) A manageror business entityrequired to be licensedor3228registeredunder s. 468.432, or an agent, employee, officer, or 3229 director of an association, shall not commingle any association 3230 funds with his or her funds or with the funds of any other 3231 common interest communitycondominiumassociation or the funds 3232 of a community association as defined in s. 468.431. 3233 (15) LIMITATION OF LIABILITY OF ASSOCIATION.—After turnover 3234 from the developer, notwithstanding the duty of the association 3235 to maintain and repair parts of the common interest community 3236 property, the association is not liable to unit owners for 3237 injury or damage, other than for the cost of maintenance and 3238 repair, caused by any latent defect of the property. The 3239 association is not liable for any injury or damage caused by 3240 such defects in design or workmanship or any other reason 3241 connected with any additions, alterations, or improvements made 3242 by or on behalf of any unit owner, regardless of whether the 3243 same shall have been approved by the association pursuant to the 3244 provisions of this subsection. The documents shall include, or 3245 if not included shall be deemed to include, the following: 3246 3247 NOTWITHSTANDING ANYTHING CONTAINED IN THIS DOCUMENT OR IN THE 3248 ARTICLES OF INCORPORATION, BYLAWS, ANY RULES OR REGULATIONS OF 3249 THE ASSOCIATION, OR ANY OTHER DOCUMENT GOVERNING OR BINDING THE 3250 ASSOCIATION (COLLECTIVELY, THE “ASSOCIATION DOCUMENTS”), THE 3251 ASSOCIATION IS NOT LIABLE OR RESPONSIBLE FOR, OR IN ANY MANNER 3252 DEEMED A GUARANTOR OR INSURER OF, THE HEALTH, SAFETY, AND/OR 3253 WELFARE OF ANY OWNER, OCCUPANT, OR USER OF ANY PORTION OF THE 3254 COMMON INTEREST COMMUNITY PROPERTY, INCLUDING, WITHOUT 3255 LIMITATION, RESIDENTS AND THEIR FAMILIES, GUESTS, INVITEES, 3256 AGENTS, SERVANTS, CONTRACTORS, OR SUBCONTRACTORS OR FOR ANY 3257 PROPERTY OF ANY SUCH PERSONS. WITHOUT LIMITING THE GENERALITY OF 3258 THE FOREGOING: 3259 3260 (A) IT IS THE EXPRESS INTENT OF THE ASSOCIATION DOCUMENTS THAT 3261 THE VARIOUS PROVISIONS OF THE DOCUMENTS THAT ARE ENFORCEABLE BY 3262 THE ASSOCIATION AND THAT GOVERN OR REGULATE THE USES OF THE 3263 COMMON INTEREST COMMUNITY PROPERTY HAVE BEEN WRITTEN, AND ARE TO 3264 BE INTERPRETED AND ENFORCED, FOR THE SOLE PURPOSE OF ENHANCING 3265 AND MAINTAINING THE ENJOYMENT OF THE COMMON INTEREST COMMUNITY 3266 PROPERTY AND THE VALUE OF THE PROPERTY. 3267 3268 (B) THE ASSOCIATION IS NOT EMPOWERED, AND HAS NOT BEEN CREATED, 3269 TO ACT AS AN ENTITY THAT ENFORCES OR ENSURES COMPLIANCE WITH THE 3270 LAWS OF THE UNITED STATES, THE STATE OF FLORIDA, ... COUNTY, 3271 AND/OR ANY OTHER JURISDICTION OR THE PREVENTION OF TORTIOUS 3272 ACTIVITIES. 3273 3274 (C) ANY PROVISIONS OF THE ASSOCIATION DOCUMENTS ESTABLISHING THE 3275 USES OF ASSESSMENTS WHICH RELATE TO HEALTH, SAFETY, AND/OR 3276 WELFARE OF ANY OWNER, OCCUPANT, OR USER OF ANY PORTION OF THE 3277 COMMON INTEREST COMMUNITY PROPERTY SHALL BE INTERPRETED AND 3278 APPLIED ONLY AS LIMITATIONS ON THE USES OF ASSESSMENT FUNDS AND 3279 NOT AS CREATING A DUTY OF THE ASSOCIATION TO PROTECT OR FURTHER 3280 THE HEALTH, SAFETY, AND/OR WELFARE OF ANY SUCH PERSON, EVEN IF 3281 ASSESSMENT FUNDS ARE USED FOR ANY SUCH REASON. 3282 3283 (D) A UNIT OWNER, BY VIRTUE OF HIS OR HER ACCEPTANCE OF TITLE TO 3284 HIS OR HER UNIT, AND ANY OTHER PERSON HAVING AN INTEREST IN OR 3285 LIEN UPON, OR MAKING ANY USE OF, ANY PORTION OF THE COMMON 3286 INTEREST COMMUNITY PROPERTY, BY VIRTUE OF ACCEPTING SUCH 3287 INTEREST OR MAKING SUCH USES, IS BOUND BY THIS PROVISION AND 3288 WAIVES ALL RIGHTS, CLAIMS, DEMANDS, AND CAUSES OF ACTION AGAINST 3289 THE ASSOCIATION ARISING FROM OR CONNECTED WITH ANY MATTER FOR 3290 WHICH THE LIABILITY OF THE ASSOCIATION HAS BEEN DISCLAIMED IN 3291 THIS PROVISION. 3292 3293 (E) AS USED IN THIS SECTION, THE TERM “ASSOCIATION” INCLUDES ALL 3294 OF THE ASSOCIATION’S DIRECTORS, OFFICERS, COMMITTEE AND BOARD 3295 MEMBERS, EMPLOYEES, AGENTS, CONTRACTORS, MANAGEMENT COMPANIES, 3296 SUBCONTRACTORS, SUCCESSORS, AND ASSIGNEES. 3297 Section 58. Section 718.112, Florida Statutes, is amended 3298 to read: 3299 718.112 Bylaws.— 3300 (1) GENERALLY.— 3301 (a) The operation of the association shall be governed by 3302 the articles of incorporationif the association is3303incorporated,and the bylaws of the association, which shall be 3304 included as exhibits to the recorded declaration. If one 3305 association operates more than one common interest community 3306condominium, it shall not be necessary to rerecord the same 3307 articles of incorporation and bylaws as exhibits to each 3308 declaration after the first, provided that in each case where 3309 the articles and bylaws are not so recorded, the declaration 3310 expressly incorporates them by reference as exhibits and 3311 identifies the book and page of the public records where the 3312 first declaration to which they were attached is recorded. 3313 (b) No amendment to the articles of incorporation or bylaws 3314 is valid unless recorded with identification on the first page 3315 thereof of the book and page of the public records where the 3316 declaration of each common interest communitycondominium3317 operated by the association is recorded. 3318 (2) REQUIRED PROVISIONS.—The bylaws shall provide for the 3319 following and, if they do not do so, shall be deemed to include 3320 the following: 3321 (a) Administration.— 3322 1. The form of administration of the association shall be 3323 described indicating the title of the officers and board of 3324 directorsadministrationand specifying the responsibilities 3325powers, duties, manner of selection, and removal, and3326compensation, if any,of officers and board membersboards. In 3327 the absence of such a provision, the board of directors 3328administrationshall be composed of five members, except in the 3329 case of a common interest community thatcondominium whichhas 3330 50fiveor fewer units, in which casein a not-for-profit3331corporationthe board shall consist of at leastnot fewer than3332 three members. In the absence of provisions to the contrary in 3333 the bylaws, the board of directorsadministrationshall have a 3334 president, a secretary, and a treasurer, who shall perform the 3335 duties of such officers customarily performed by officers of 3336 corporations. Unless prohibited in the bylaws, the board of 3337 directorsadministrationmay appoint other officers and grant 3338 them the duties it deems appropriate. Unless otherwise provided 3339 in the bylaws, the officers shall serve without compensation and 3340 at the pleasure of the board of administration. Unless otherwise 3341 provided in the bylaws, the members of the board shall serve 3342 without compensation. 3343 2. When a unit owner of a residential unitcondominium3344 files a written inquiry and has proof of delivery toby3345certified mail withthe association or its managerboard of3346administration, the board mustshallrespond in writing to the 3347 unit owner within 1530days after receipt of the inquiry. The 3348 board’s response shalleithergive a substantive response to the 3349 inquirer, notify the inquirer that a legal opinion has been 3350 requested, or notify the inquirer that advice has been requested 3351 from the division. Ifthe board requestsadvice is requested 3352 from the division, the board shall, within 10 days afterits3353 receipt of the advice, provide in writing a substantive response 3354 to the inquirer. If a legal opinion is requested, the board 3355 shall, within 3060days after the receipt of the inquiry, 3356 providein writinga substantive response to the inquiry. The 3357 failure to provide a substantive response to the inquiry as 3358 provided in this subparagraphhereinprecludes the association 3359boardfrom recovering attorney fees and costs in any subsequent 3360 litigation, administrative proceeding, or arbitration arising 3361 out of the inquiry. The division shallassociation may through3362its board of administrationadopt reasonable policiesrules and3363regulationsregardingthe frequency and manner ofresponding to 3364 unit owner inquiries, one of which may be that the association3365is only obligated to respond to one written inquiry per unit in3366any given 30-day period. In such a case, any additional inquiry3367or inquiries must be responded to in the subsequent 30-day3368period, or periods, as applicable. 3369 3. Any substantive response must include, at a minimum, a 3370 restatement of the issue presented by the owner, the board’s 3371 written response to the issue, and the board’s actions or 3372 intended actions in response to the issue, in addition to all 3373 other facts, opinions, requests, and positions taken that are 3374 relevant to the issue. In the event an outside opinion was 3375 requested by the board and the request was conveyed to the unit 3376 owner in an initial response causing a delayed final response, 3377 the outside opinion text will also be included in the board’s 3378 subsequent response to the unit owner. 3379 4. A unit owner who does not receive a substantive response 3380 within 15 days is entitled to the actual damages or minimum 3381 damages for the association’s willful failure to comply with 3382 this paragraph. The minimum damages shall be $100 per calendar 3383 day for up to 20 business days, beginning on the 16th business 3384 day after receipt of the written request. The time limit may 3385 only be extended if the division has not responded. 3386 (b) Quorum; voting requirements; proxies.— 3387 1. Unless a lower number is provided in the bylaws, the 3388 percentage of voting interests required to constitute a quorum 3389 at a meeting of the members in a residential association is a 3390 majority of the total eligible voting interests. Unless 3391 otherwise provided in this chapter or in the declaration, 3392 articles of incorporation, or bylaws, and except as provided in 3393 subparagraph (d)8.subparagraph (d)4., decisions shall be made 3394 by a majority of the voting interests represented at a meeting 3395 at which a quorum is present. 3396 a. If a quorum is not attained, the meeting may be 3397 rescheduled within 30 days with a notice of at least 14 days to 3398 the members not present in person or by proxy. The rescheduled 3399 meetings shall have a quorum requirement of 40 percent of the 3400 total eligible voting interests and, if a quorum is not 3401 attained, may be rescheduled as many times as necessary with the 3402 quorum requirement reduced by 10 percent for each rescheduled 3403 meeting until a quorum is attained. 3404 b. Unless otherwise provided in this chapter or in the 3405 articles of incorporation or bylaws, decisions that require a 3406 vote of the members in a residential association must be 3407 approved by at least a majority of the voting interests present, 3408 in person or by proxy, at a meeting where a quorum has been 3409 attained. 3410 c. Proxies provided for the original meeting are valid for 3411 each successive meeting if the successive meeting is held not 3412 more than 90 days after the date of the original meeting. 3413 2. Except as specifically otherwise provided herein, unit 3414 owners in a residential associationcondominiummay not vote by 3415 general proxy, but may vote by limited proxies substantially 3416 conforming to a limited proxy form adopted by the division. 3417 a. A voting interest or consent right allocated to a unit 3418 owned by the association may not be exercised or considered for 3419 any purpose, whether for a quorum, an election, or otherwise. 3420 b. Limited proxies and general proxies may be used to 3421 establish a quorum. 3422 c. Limited proxies shall be used for votes taken to waive 3423 or reduce reserves in accordance with subparagraph (g)2. 3424subparagraph (f)2.;3425 d. For votes taken to waive the financial reporting 3426 requirements of s. 718.111(13).;3427 e. For votes taken to amend the documentsdeclaration3428 pursuant to s. 718.110.;3429 f. For votes taken to amend the articles of incorporation 3430 or bylaws pursuant to this section.; and3431 g. For any other matter for which this chapter requires or 3432 permits a vote of the unit owners. 3433 h. Limited proxies and general proxies may not be used for 3434 the election of board members in a residential association. 3435 General proxies may be used for matters for which limited 3436 proxies are not required and may be used to vote for 3437 nonsubstantive changes to items for which a limited proxy is 3438 required and given. Notwithstanding this sub-subparagraph, a 3439 unit owner may vote in person at unit owner meetings. 3440 3. Except as specifically otherwise provided in this 3441 paragraph, unit owners in a residential association may not vote 3442 by general proxies but may vote by limited proxies substantially 3443 conforming to a limited proxy form adopted by the division. A 3444 voting interest or consent right allocated to a unit owned by 3445 the association may not be exercised or considered for any 3446 purpose, including a quorum, an election, or any other matter. 3447 4. Limited proxies and general proxies may be used to 3448 establish a quorum. 3449 5. Limited proxies may be used for votes taken to waive or 3450 reduce reserves in accordance with subparagraph (f)2. for votes 3451 taken: 3452 a. To waive the financial reporting requirements in s. 3453 718.111(13); 3454 b. To amend the declaration pursuant to s. 718.110; 3455 c. To amend the articles of incorporation or bylaws 3456 pursuant to this section; or 3457 d. For any other matter that this chapter requires or 3458 authorizes a vote of the unit owners. 3459 3460 This subparagraph does not limit the use of general proxies or 3461 require the use of limited proxies for any agenda item or 3462 election at any meeting of a timeshare association or a 3463 nonresidential association. 3464 6. Except as provided in paragraph (d), a limited proxy or 3465 general proxy, limited or general,may not be used in the 3466 election of board membersin a residential condominium. General 3467 proxies may be used for other matters for which limited proxies 3468 are not required, and may be used in voting for nonsubstantive 3469 changes to items for which a limited proxy is required and 3470 given. Notwithstanding this paragraphsubparagraph, unit owners 3471 may vote in person at unit owner meetings.This subparagraph3472does not limit the use of general proxies or require the use of3473limited proxies for any agenda item or election at any meeting3474of a timeshare condominium association or a nonresidential3475condominium association.3476 7.3.A proxy given is effective only for the specific 3477 meeting for which originally given and any lawfully adjourned 3478 meetings thereof. A proxy is not valid longer than 90 days after 3479 the date of the first meeting for which it was given and may be 3480 revoked. Each proxy is revocable at any timeat the pleasure of 3481 the unit owner executing it at any time prior to a vote being 3482 taken on questions addressed on the proxy. 34834. A member of the board of administration or a committee3484may submit in writing his or her agreement or disagreement with3485any action taken at a meeting that the member did not attend.3486This agreement or disagreement may not be used as a vote for or3487against the action taken or to create a quorum.3488 8.5.A board or committee member’s participation in a 3489 meeting via telephone, real-time videoconferencing, or similar 3490 real-time electronic or video communication counts toward a 3491 quorum, and such member may vote as if physically present. A 3492 speaker must be used so that the conversation of such members 3493 may be heard by the board or committee members attending in 3494 person as well as by any unit owners present at a meeting. 3495 9. If a board or committee meeting includes meeting by 3496 telephone conference or other electronic means, all unit owners 3497 must be authorized to attend by such means if they are or can be 3498 made available, at the unit owners’ expense, and all meeting 3499 notices shall include information necessary for a unit owner to 3500 participate in the meeting. Electronic means of communication 3501 must provide for two-way communications between all parties at 3502 all times unless technical issues exist that require a “listen 3503 only” form of communication. When board or committee members are 3504 attending a meeting by electronic means, all votes must be 3505 recorded as roll call votes. 3506 10. If a voting member is delinquent in excess of 90 days 3507 for the nonpayment of regular or special assessments, the voting 3508 rights of the member shall be suspended and such member may not 3509 be considered for the purpose of establishing a quorum. The 3510 percentage of the membership required for a quorum shall include 3511 only such nondelinquent members. 3512 (c) Board of directors’administrationmeetings.—Meetings 3513 of the board of directorsadministrationat which a quorum of 3514 the boardmembersis present are open to all unit owners. The 3515 board must use board meetings for consideration and discussion, 3516 and the board may not conclude any decisions before the owners 3517 have an opportunity to witness the deliberations. Members of the 3518 board of directorsadministrationmay use e-mail as a means of 3519 communication but may not cast a vote on an association matter 3520 via e-mail. 3521 1. A unit owner may audiotape recordor video record 3522videotape themeetings. The division shall adopt reasonable 3523 rules governing such recordings. A copy of such recording shall 3524 be made available to the association upon request and at the 3525 association’s expense. A unit owner with a hearing or vision 3526 disability may have an interpreter accompany him or her if the 3527 assistance does not disrupt the board meeting. A unit owner not 3528 proficient in English may have an interpreter accompany him or 3529 her if the translating does not disrupt the board meeting. 3530 2. Upon notice to the unit owners, the board shall 3531 designate by rule a specific location on the common interest 3532 community property or association property where notices of 3533 board meetings shall be posted. If there is no common interest 3534 community property or association property where notices can be 3535 posted, notices of board meetings shall be mailed, hand 3536 delivered, or electronically transmitted to each unit owner at 3537 least 14 days before the board meeting. 3538 3. Notice of board meetings that specifically identifies 3539 all agenda items must be posted conspicuously on the common 3540 interest community property at least 48 continuous hours before 3541 the board meeting, except in an emergency. Electronic 3542 transmission of meeting notices shall be provided to any unit 3543 owner requesting such notification. The intent of board meetings 3544 is to encourage participatory consideration by the owners. Any 3545 owner may petition the board to address an item of business. If 3546 20 percent of the voting interests petition the board to address 3547 an item of business, the board, within 60 days after receipt of 3548 the petition, shall place the item on the agenda at its next 3549 regular board meeting or at a special meeting called for that 3550 purpose. 3551 4. Written notice of any board meeting at which 3552 nonemergency special assessments, or at which an amendment to 3553 rules regarding unit or common element use, will be considered 3554 must be mailed, hand delivered, or electronically transmitted to 3555 the unit owners and posted conspicuously on the common interest 3556 community property at least 14 days before the board meeting. 3557 Evidence of the notice shall be made by affidavit executed by 3558 the person providing the notice and filed with the official 3559 records of the association. 3560 5. In addition to the physical posting of the notice on the 3561 common interest community property, the association may adopt a 3562 procedure for conspicuously posting and repeatedly broadcasting 3563 the notice and agenda on a closed-circuit cable television 3564 system serving the association. The notice and agenda must be 3565 broadcast at least four times every broadcast hour of each day 3566 that a posted notice is required under this paragraph. If 3567 broadcast notice is provided, the notice and agenda must be 3568 broadcast in a manner and for a sufficient continuous length of 3569 time so as to allow an average reader to observe the notice and 3570 agenda and read and comprehend the entire content of the notice 3571 and agenda. 3572 6. Notice of any meeting in which regular or special 3573 assessments are to be considered shall specifically state that 3574 regular or special assessments will be considered and the 3575 nature, estimated cost, and description of the purposes of such 3576 assessments. 3577 7. Any item not included on the notice may be taken up on 3578 an emergency basis by at least a majority plus one vote of the 3579 board members if they are reasonably available. The emergency 3580 action shall be noticed and ratified at the next regular board 3581 meeting. 3582 8. The right to attend boardsuchmeetings includes the 3583 right to speak at boardsuchmeetings with reference to all 3584 designated agenda items when the item is addressed by the board 3585 and before the agenda item is voted on.The division shall adopt3586reasonable rules governing the tape recording and videotaping of3587the meeting.The association may adopt written reasonable rules 3588 governing the frequency, duration, and manner of unit owner 3589 statements. 3590 9. A committee may be appointed by the board if it is 3591 comprised of less than a quorum of board members. The committee 3592 may consider items of personnel, discipline, or contracts 3593 provided the committee’s minutes and recommendations are 3594 considered at the next board meeting. 3595 10. Meetings of a committee of the board are subject to the 3596 provisions of this paragraph. 35971. Adequate notice of all board meetings, which must3598specifically identify all agenda items, must be posted3599conspicuously on the condominium property at least 48 continuous3600hours before the meeting except in an emergency. If 20 percent3601of the voting interests petition the board to address an item of3602business, the board, within 60 days after receipt of the3603petition, shall place the item on the agenda at its next regular3604board meeting or at a special meeting called for that purpose.3605An item not included on the notice may be taken up on an3606emergency basis by a vote of at least a majority plus one of the3607board members. Such emergency action must be noticed and3608ratified at the next regular board meeting. However, written3609notice of a meeting at which a nonemergency special assessment3610or an amendment to rules regarding unit use will be considered3611must be mailed, delivered, or electronically transmitted to the3612unit owners and posted conspicuously on the condominium property3613at least 14 days before the meeting. Evidence of compliance with3614this 14-day notice requirement must be made by an affidavit3615executed by the person providing the notice and filed with the3616official records of the association. Upon notice to the unit3617owners, the board shall, by duly adopted rule, designate a3618specific location on the condominium or association property3619where all notices of board meetings must be posted. If there is3620no condominium property or association property where notices3621can be posted, notices shall be mailed, delivered, or3622electronically transmitted to each unit owner at least 14 days3623before the meeting. In lieu of or in addition to the physical3624posting of the notice on the condominium property, the3625association may, by reasonable rule, adopt a procedure for3626conspicuously posting and repeatedly broadcasting the notice and3627the agenda on a closed-circuit cable television system serving3628the condominium association. However, if broadcast notice is3629used in lieu of a notice physically posted on condominium3630property, the notice and agenda must be broadcast at least four3631times every broadcast hour of each day that a posted notice is3632otherwise required under this section. If broadcast notice is3633provided, the notice and agenda must be broadcast in a manner3634and for a sufficient continuous length of time so as to allow an3635average reader to observe the notice and read and comprehend the3636entire content of the notice and the agenda. Notice of any3637meeting in which regular or special assessments against unit3638owners are to be considered must specifically state that3639assessments will be considered and provide the nature, estimated3640cost, and description of the purposes for such assessments.36412. Meetings of a committee to take final action on behalf3642of the board or make recommendations to the board regarding the3643association budget are subject to this paragraph. Meetings of a3644committee that does not take final action on behalf of the board3645or make recommendations to the board regarding the association3646budget are subject to this section, unless those meetings are3647exempted from this section by the bylaws of the association.3648 11.3.Notwithstanding any other law, the requirement that 3649 board meetings and committee meetings be open to the unit owners 3650 does not apply to:3651a.meetings between the board or a committee and the 3652 association’s attorney, with respect to proposed or pending 3653 litigation, if the meeting is held for the purpose of seeking or 3654 rendering legal advice.; or3655b. Board meetings held for the purpose of discussing3656personnel matters.3657 (d) Unit owner meetings.— 3658 1. An annual meeting of the unit owners shall be held at 3659 the location provided in the association bylaws and, if the 3660 bylaws are silent as to the location, the meeting shall be held 3661 within 1045miles of the common interest communitycondominium3662 property. However, such distance requirement does not apply to 3663 an association governing a timeshare associationcondominium. 3664 2.Unless the bylaws provide otherwise,A vacancy on the 3665 board caused by the expiration of a director’s term shall be 3666 filled by electing a new board member, and the election must be 3667 by secret ballot. However,An election is not requiredif the 3668 number of vacancies equals or exceeds the number of candidates, 3669 an election is not required. 3670 3.For purposes of this paragraph, the term “candidate”3671means an eligible person who has timely submitted the written3672notice, as described in sub-subparagraph 4.a., of his or her3673intention to become a candidate. Except in a timeshare or3674nonresidential condominium, or if the staggered term of a board3675member does not expire until a later annual meeting, or if all3676members’ terms would otherwise expire but there are no3677candidates,The terms of all board members expire at the annual 3678 meeting and current board, and suchmembers may stand for 3679 reelectionunless prohibited by the bylaws. If no person is 3680 interested in, or demonstrates an intention to run for, the 3681 position of a board member whose term has expired, the current 3682 board member may be reappointed to the board if he or she 3683 provides a signed certification and educational certificate as 3684 provided in subparagraph 9.If the bylaws or articles of3685incorporation permit terms of no more than 2 years, the3686association board members may serve 2-year terms. If the number3687of board members whose terms expire at the annual meeting equals3688or exceeds the number of candidates, the candidates become3689members of the board effective upon the adjournment of the3690annual meeting. Unless the bylaws provide otherwise, any3691remaining vacancies shall be filled by the affirmative vote of3692the majority of the directors making up the newly constituted3693board even if the directors constitute less than a quorum or3694there is only one director. In a residential condominium3695association of more than 10 units or in a residential3696condominium association that does not include timeshare units or3697timeshare interests, coowners3698 4. Co-owners of a unit may not serve as members of the 3699 board of directors at the same timeunless they own more than3700one unit or unless there are not enough eligible candidates to3701fill the vacancies on the board at the time of the vacancy. A 3702 unit owner in a residential common interest community 3703condominiumdesiring to be a candidate for board membership must 3704 comply with subparagraph 3.sub-subparagraph 4.a. and must be3705eligible to be a candidate to serve on the board of directors at3706the time of the deadline for submitting a notice of intent to3707run in order to have his or her name listed as a proper3708candidate on the ballot or to serve on the board.A person who 3709 has been suspended or removed by the division under this 3710 chapter, or who is delinquent in the payment of any fee or 3711 assessment as provided in paragraph (h)monetary obligation due3712to the association, is not eligible to be a candidate for board 3713 membershipand may not be listed on the ballot. 3714 5. A person who has entered a plea of nolo contendere to or 3715 been convicted of any felony in this state or in a United States 3716 District or Territorial Court, or who has entered a plea of nolo 3717 contendere to or been convicted of any offense in another 3718 jurisdiction which would be considered a felony if committed in 3719 this state, is not eligible for board membership unless such 3720 felon’s civil rights have been restored for at least 105years 3721 as of the date such person seeks election to the board. The 3722 validity of an action by the board is not affected if it is 3723 later determined that aboardmember of the board is ineligible 3724 for board membershipdue to having been convicted of a felony. 3725This subparagraph does not limit the term of a member of the3726board of a nonresidential condominium.3727 6.3.The bylaws must provide the method of calling meetings 3728 of unit owners, including annual meetings. Written notice that 3729 must include an agenda shall, mustbe mailed, hand delivered, or 3730 electronically transmitted to each unit owner at least 14 days 3731 before the annual meeting, and must be posted in a conspicuous 3732 place on the common interest communitycondominiumproperty at 3733 least 14 continuous days before the annual meeting. Upon notice 3734 to the unit owners, the board shall, by duly adopted rule, 3735 designate a specific location on the common interest community 3736condominiumproperty or association property where all notices 3737 of unit owner meetings shall be posted. However,This3738requirement does not applyif there is no common interest 3739 communitycondominiumproperty or association property wherefor3740postingnotices can be posted, this requirement does not apply. 3741In lieu of, or in addition to, the physical posting of meeting3742notices, the association may, by reasonable rule, adopt a3743procedure for conspicuously posting and repeatedly broadcasting3744the notice and the agenda on a closed-circuit cable television3745system serving the condominium association. However, if3746broadcast notice is used in lieu of a notice posted physically3747on the condominium property, the notice and agenda must be3748broadcast at least four times every broadcast hour of each day3749that a posted notice is otherwise required under this section.3750If broadcast notice is provided, the notice and agenda must be3751broadcast in a manner and for a sufficient continuous length of3752time so as to allow an average reader to observe the notice and3753read and comprehend the entire content of the notice and the3754agenda.3755 7. Unless a unit owner waives in writing the right to 3756 receive noticeof the annual meeting, such notice shallmustbe 3757 hand delivered, mailed, or electronically transmitted to each 3758 unit owner. Notice for meetings and notice for all other3759purposes must be mailed to each unit ownerat the address last 3760 furnished to the association by the unit owner, or hand3761delivered to each unit owner. However, if a unit is owned by 3762 more than one person, the association shallmustprovide notice 3763 for meetings and all other purposes to the address that the 3764 developer initially identifies for that purpose and thereafter 3765 as one or more of the owners of the unit advise the association 3766 in writing, or if no address is given or the owners of the unit 3767 do not agree, to the address provided on the county records of 3768 the property appraiser. Thedeed of record. An officer of the3769association, or the manager or otherperson providing notice of 3770 the association meeting shall, mustprovide an affidavitor3771United States Postal Service certificate of mailing,to be 3772 included in the official records of the association affirming 3773 that the notice was mailed, electronically transmitted, or hand 3774 delivered in accordance with this subparagraphprovision. 3775 8.4.The members of the board of a residential common 3776 interest communitycondominiumshall be elected by secret 3777writtenballotor voting machine. Proxies may not be used in 3778 electing the board in general elections or elections to fill 3779 vacancies caused by recall, resignation, or otherwise, unless 3780 otherwise provided in this chapter.This subparagraph does not3781apply to an association governing a timeshare condominium.3782 9.a.At least 60 days, but not more than 90 days, before a 3783 scheduled election, the association shall mail, hand deliver, or 3784 electronically transmit, whether by separate association mailing 3785 or included in another association mailing, delivery, or 3786 transmission, including regularly published newsletters, to each 3787 unit ownerentitled to a vote,a first notice of the date of the 3788 election and the procedure to qualify as a candidate for the 3789 board. 3790 a. Within 1 year before, or 90 days after, being elected or 3791 appointed to the board, the newly elected or appointed member 3792 must: 3793 (I) Submit an educational certificate of satisfactory 3794 completion of the educational curriculum administered by a 3795 division-approved common interest community education provider. 3796 (II) Submit a written certification attesting that he or 3797 she has read the documents, bylaws, current written policies, 3798 provisions of this chapter, applicable sections of the Florida 3799 Administrative Code, and association rules; he or she will work 3800 to uphold such documents and policies to the best of his or her 3801 ability; and he or she will faithfully discharge his or her 3802 fiduciary responsibility to the association’s members. 3803 b. The written certification and educational certificate 3804 must be valid and are not required to be resubmitted if the 3805 member serves on the board without interruption. Failure to 3806 complete the requirements of this sub-subparagraph excludes the 3807 member from being reelected, appointed, or eligible to continue 3808 to serve on the board. 3809 c. In order to be eligible to be included on the ballot and 3810 serve on the board, the member’s written certification and 3811 educational certificate must be entered in the minutes of the 3812 association and made available for verification by any owner. 3813 10. A unit owner or other eligible person desiring to be a 3814 candidate for the board must give written notice of his or her 3815 intent to be a candidate to the association at least 40 days 3816 before a scheduled election along with the signed certification 3817 provided for in this subparagraph. If the certification is not 3818 provided, or the person is otherwise ineligible for election, 3819 his or her name may not be listed on the ballot. 3820 11. Together with the written notice and agenda as set 3821 forth in subparagraph 6.3., the association shall mail, 3822 deliver, or electronically transmit a second notice of the 3823 election to all unit owners entitled to vote, together with a 3824 ballot that lists all eligible candidates. Upon request of a 3825 candidate, an information sheet, no larger than 8 1/2 inches by 3826 11 inches,which must befurnished by the candidate at least 35 3827 days before the election, must be included with the mailing, 3828 delivery, or transmission of the ballot, with the costs of 3829 mailing, delivery, or electronic transmission and copying to be 3830 borne by the association. The association is not liable for the 3831 contents of the information sheets prepared by the candidates. 3832 In order to reduce costs, the association may print or duplicate 3833 the information sheets on both sides of the paper. 3834 12. The division shall by rule establish voting procedures 3835 consistent with this subparagraphsub-subparagraph, including 3836 rules establishing procedures for giving notice by electronic 3837 transmission and rules providing for the secrecy of ballots. 3838 Elections shall be decided by a plurality of the ballots cast. 3839 There is no quorum requirement; however, at least 20 percent of 3840 the eligible voters must cast a ballot in order to have a valid 3841 election of members of the board. A unit owner may not permit 3842 any other person to vote his or her ballot, and any such ballots 3843 improperly cast are invalid. A unit owner who violates this 3844 provision may be assessed a financial penaltyfinedby the 3845 association in accordance with s. 718.303. A unit owner who 3846 needs assistance in casting the ballot for the reasons stated in 3847 s. 101.051 may obtainsuchassistance. The regular election 3848 shallmustoccur on the date of the annual meeting. 3849 Notwithstanding this subparagraphsub-subparagraph, an election 3850 is not required unless more candidates file notices of intent to 3851 runor are nominatedthan board vacancies exist. Tie votes may 3852 be determined by lot or runoff election at the option of the 3853 candidates and shall be by runoff election if the candidates do 3854 not agree on a method. 3855b. Within 90 days after being elected or appointed to the3856board of an association of a residential condominium, each newly3857elected or appointed director shall certify in writing to the3858secretary of the association that he or she has read the3859association’s declaration of condominium, articles of3860incorporation, bylaws, and current written policies; that he or3861she will work to uphold such documents and policies to the best3862of his or her ability; and that he or she will faithfully3863discharge his or her fiduciary responsibility to the3864association’s members. In lieu of this written certification,3865within 90 days after being elected or appointed to the board,3866the newly elected or appointed director may submit a certificate3867of having satisfactorily completed the educational curriculum3868administered by a division-approved condominium education3869provider within 1 year before or 90 days after the date of3870election or appointment. The written certification or3871educational certificate is valid and does not have to be3872resubmitted as long as the director serves on the board without3873interruption. A director of an association of a residential3874condominium who fails to timely file the written certification3875or educational certificate is suspended from service on the3876board until he or she complies with this sub-subparagraph. The3877board may temporarily fill the vacancy during the period of3878suspension. The secretary shall cause the association to retain3879a director’s written certification or educational certificate3880for inspection by the members for 5 years after a director’s3881election or the duration of the director’s uninterrupted tenure,3882whichever is longer. Failure to have such written certification3883or educational certificate on file does not affect the validity3884of any board action.3885c. Any challenge to the election process must be commenced3886within 60 days after the election results are announced.3887 13.5.AnyApproval by unit owners called for by this 3888 chapter or the applicable documentsdeclarationor bylaws, 3889 including, but not limited to, the approval requirement in s. 3890 718.111(8), must be made at a duly noticed meeting of unit 3891 owners and is subject to all requirements of this chapter or the 3892 applicablecondominiumdocuments relating to unit owner 3893 decisionmaking, except that unit owners may take action by 3894 written agreement, without meetings, on matters for which action 3895 by written agreement without meetings is not expressly 3896 prohibitedallowedby the applicable bylaws or documents 3897declarationor any law that provides for such action. 3898 14.6.Unit owners may waive notice of specific meetings if 3899 allowed by the applicable bylaws or declaration or any law. 3900 Notice of meetings of the boardof administration, unit owner 3901 meetings,except unit owner meetings called to recall board3902members under paragraph (j),and committee meetings may be given 3903 by electronic transmission or hand delivery to unit owners 3904 unlesswho consent to receivenotice is requested by mail 3905electronic transmission. 3906 15.7.Unit owners haveThe right to attendparticipate in3907 meetings includes the right to speak at meetingsof unit owners3908 with reference to all designated agenda items at the time the 3909 item is addressed and before the item is voted on.However,The 3910 association may adopt written reasonable rules governing the 3911 frequency, duration, and manner of unit owner statements 3912participation. 3913 16.8.A unit owner may audio or videotaperecordor3914videotapea meeting of the unit owners subject to reasonable 3915 rules adopted by the division. A unit owner with a hearing or 3916 vision disability may have an interpreter accompany him or her 3917 if the assistance does not disrupt the meeting. A unit owner not 3918 proficient in English may have an interpreter accompany him or 3919 her if the translating does not disrupt the meeting. 3920 17.9.Unless otherwise provided in the bylaws, any vacancy 3921 occurring on the board before the expiration of a term may be 3922 filled by the affirmative vote of the majority of the remaining 3923 directors, even if the remaining directors constitute less than 3924 a quorum, or by the sole remaining director. In the alternative, 3925 a board may hold an election to fill the vacancy, in which case 3926 the election procedures must conform to the requirements of 3927 subparagraph 9.sub-subparagraph 4.a. unless the association3928governs 10 units or fewer and has opted out of the statutory3929election process, in which case the bylaws of the association3930control. Unless otherwise provided in the bylaws,A board member 3931 appointed or elected under this section shall fill the vacancy 3932 until the next electionfor the unexpired term of the seat being3933filled. Filling vacancies created by recall is governed by 3934 paragraph (k)(j)and rules adopted by the division. 3935 18. Any rule or regulation of the association may be 3936 overturned by vote of a majority of owners represented in person 3937 or by proxy at a duly called meeting. Any rule or regulation 3938 ratification or revocation must be added to the agenda of the 3939 next owners’ meeting by petition of at least 10 percent of the 3940 voting interests. Any rule or regulation adopted by the board 3941 shall be added to the agenda for the annual meeting for 3942 ratification or revocation. 3943 19. Elections for members of the board of a master 3944 association are exempt from the election procedures in this 3945 paragraph if the members of the board are elected as 3946 representatives of the common interest community exclusively by 3947 the members of the common interest community they represent. 3948 (e) Special meetings.—Special meetings must be held when 3949 called by the board of directors or by at least 10 percent of 3950 the total voting interests of the association, unless a 3951 different percentage is stated in the governing documents. 3952 Business conducted at a special meeting is limited to the 3953 purposes described in the notice of the meeting. 395410. This chapter does not limit the use of general or3955limited proxies, require the use of general or limited proxies,3956or require the use of a written ballot or voting machine for any3957agenda item or election at any meeting of a timeshare3958condominium association or nonresidential condominium3959association.3960 3961Notwithstanding subparagraph (b)2. and sub-subparagraph 4.a., an3962association of 10 or fewer units may, by affirmative vote of a3963majority of the total voting interests, provide for different3964voting and election procedures in its bylaws, which may be by a3965proxy specifically delineating the different voting and election3966procedures. The different voting and election procedures may3967provide for elections to be conducted by limited or general3968proxy.3969 (f)(e)Budget meeting.— 3970 1. Any meeting at which a proposed annual budget of an 3971 association will be considered for adoption by the board or unit 3972 owners shall be open to all unit owners. At least 14 days before 3973 theprior to such ameeting, the board shall electronically 3974 transmit to the unit owners, unless notice is requested by mail 3975 or is hand delivereddeliverto each unit owner, mail to each3976unit ownerat the address last furnished to the association by 3977 the unit owner,or electronically transmit to the location3978furnished by the unit owner for that purposea notice of such 3979 meeting and a copy of the proposed annual budget. TheAn officer3980or manager of the association, or otherperson providing notice 3981 of such meeting, shall execute an affidavit evidencing 3982 compliance with such notice requirement, and such affidavit 3983 shall be filed among the official records of the association. 3984 2.a.If a board adopts in any fiscal year an annual budget 3985 thatwhichrequires an assessmentassessmentsagainst unit 3986 owners which is 15which exceed 115percent or more than the 3987 amount of assessments for the preceding fiscal year, the board 3988 shall conduct a special meeting of the unit owners to consider a 3989 substitute budget if the board receives, within 21 days after 3990 adoption of the annual budget, a written request for a special 3991 meeting from at least 10 percent of all voting interests with a 3992 draft of the proposed substitute annual budget. 3993 a. The special meeting shall be conducted within 3060days 3994 after adoption of the annual budget and may not be rescheduled 3995 if a quorum is not present. At least 14 days before theprior to3996suchspecial meeting, the board shall electronically transmit to 3997 the unit owners, unless notice is requested by mail or is hand 3998 delivereddeliverto each unit owner, or mail to each unit owner3999 at the address last furnished to the association by the unit 4000 owner, a notice of the meeting and a copy of the proposed 4001 substitute annual budget. TheAn officer or manager of the4002association, or otherperson providing notice of such meeting 4003 shall execute an affidavit evidencing compliance with this 4004 notice requirement, and such affidavit shall be filed among the 4005 official records of the association. Unit owners may consider 4006 and adopt a substitute budget at the special meeting. A 4007 substitute budget is adopted if approved by a majority of all 4008 voting interestsunless the bylaws require adoption by a greater4009percentage of voting interests. If there is not a quorum at the 4010 special meeting or a substitute budget is not adopted, the 4011 annual budget previously adopted by the board shall take effect 4012 as scheduled. 4013 b. Any determination of whether assessments exceed 115 4014 percent of assessments for the prior fiscal year shall exclude 4015 anyauthorizedprovision for reasonable reserves for deferred 4016 maintenancerepairor replacement of the common interest 4017 communitycondominiumproperty, anticipated expenses of the 4018 association which the board does not expect to be incurred on a 4019 regular or annual basis, and statutory expense requirements or 4020 expenses over which the board has no control, or assessments for4021betterments to the condominium property. 4022 c. If the developer controls the board, assessments shall 4023 not exceed the115 percent ofassessments for the prior fiscal 4024 year by more than 15 percent unless approved by a majority of 4025 all voting interests other than the developer. 4026 (g)(f)Annual budget.— 4027 1. The proposed annual budget of estimated revenues and 4028 expenses shallmustbe detailed and must show the amounts 4029 budgeted by accounts and expense classifications, including, at 4030 a minimum, any applicableexpenses listed in s. 718.504(21). A 4031 multi-common interest communitymulticondominiumassociation 4032 shall adopt a separate budget of common expenses for each common 4033 interest communitycondominiumthe association operates and 4034 shall adopt a separate budget of common expenses for the 4035 association. In addition, if the association maintains limited 4036 common elements with the cost to be shared only by those 4037 entitled to use the limited common elements as provided for in 4038 s. 718.113(1), the budget or a schedule attached to it must show 4039 any amountsthe amountbudgeted for this maintenance. If, after 4040 turnover of control of the association to the unit owners, any 4041 of the expenses listed in s. 718.504(21) are not applicable, 4042 they need not be listed. 4043 2.a. In addition to annual operating expenses, the budget 4044 shallmustinclude reserve accounts for capital expenditures and 4045 deferred maintenance. These accounts shallmustinclude, but are 4046 not limited to, any item for which the full funding of, roof4047replacement, building painting, and pavement resurfacing,4048regardless ofthe amount of deferred maintenance expense or 4049 replacement cost would require a reserve contribution of more 4050 than $600 per year for any unit in the association, and any4051other item that has a deferred maintenance expense or4052replacement cost that exceeds $10,000. 4053 b. The amount to be reserved shallmustbe computed using a 4054 formula based upon estimated remaining useful life and estimated 4055 replacement cost or deferred maintenance expense of each reserve 4056 item. The total reserve contribution requirement may be 4057 calculated by pooling, as determined by the division. The 4058 association shallmayadjust replacement reserve assessments 4059 annually to take into account any changes in estimates or change 4060extensionof the useful life of a reserve itemcaused by4061deferred maintenance.This subsection does not apply to an4062adopted budget in which the members of an association have4063determined, by a majority vote at a duly called meeting of the4064association, to provide no reserves or less reserves than4065required by this subsection.4066b. Before turnover of control of an association by a4067developer to unit owners other than a developer pursuant to s.4068718.301, the developer may vote the voting interests allocated4069to its units to waive the reserves or reduce the funding of4070reserves through the period expiring at the end of the second4071fiscal year after the fiscal year in which the certificate of a4072surveyor and mapper is recorded pursuant to s. 718.104(4)(e) or4073an instrument that transfers title to a unit in the condominium4074which is not accompanied by a recorded assignment of developer4075rights in favor of the grantee of such unit is recorded,4076whichever occurs first, after which time reserves may be waived4077or reduced only upon the vote of a majority of all nondeveloper4078voting interests voting in person or by limited proxy at a duly4079called meeting of the association. If a meeting of the unit4080owners has been called to determine whether to waive or reduce4081the funding of reserves and no such result is achieved or a4082quorum is not attained, the reserves included in the budget4083shall go into effect. After the turnover, the developer may vote4084its voting interest to waive or reduce the funding of reserves.4085 3. Reserve fundsand any interest accruing thereonshall 4086 remain in the reserve account or accounts, and mustmaybe used 4087 only for authorized reserve expenditures unless their use for 4088 other purposes is approved in advance by a majority vote at a 4089 duly called meeting of the association. Before turnover of 4090 control of an association by a developer to unit owners other 4091 than the developer pursuant to s. 718.301, the developer 4092 controlled association may notvote touse reserves for purposes 4093 other than those for which they were intendedwithout the4094approval of a majority of all nondeveloper voting interests,4095voting in person or by limited proxy at a duly called meeting of4096the association. 4097 4. The only voting intereststhat areeligible to vote on 4098 questions that involvewaiving or reducing the funding of4099reserves, orusing existing reserve funds for purposes other 4100 than purposes thatfor whichthe reserves were intended for,are 4101 the voting interests of the units subject to assessment to fund 4102 the reserves in question. Proxy questions relating towaiving or4103reducing the funding of reserves orusing existing reserve funds 4104 for purposes other than purposes for which the reserves were 4105 intended must contain the following statement in capitalized, 4106 bold letters in a font size larger than any other used on the 4107 face of the proxy ballot: WAIVING OF RESERVES, IN WHOLE OR IN 4108 PART, OR ALLOWING ALTERNATIVE USES OF EXISTING RESERVES WILLMAY4109 RESULT IN UNIT OWNER LIABILITY FOR PAYMENT OF ANTICIPATED 4110UNANTICIPATEDSPECIAL ASSESSMENTS REGARDING THOSE ITEMS. 4111 5. If the board fails to adopt an annual budget before the 4112 beginning of the fiscal year, the previous year’s budget shall 4113 continue until a new budget is adopted. When a new budget is 4114 adopted, it shall be retroactive to the beginning of the fiscal 4115 year. 4116 (h)(g)Assessments.—The manner of collecting from the unit 4117 owners their shares of the common expenses shall be stated in 4118 the bylaws. Assessments shall be made against units not less 4119 frequently than quarterly in an amount thatwhichis not less 4120 than that required to provide funds in advance for payment of 4121all of theanticipated current operating expenses and for all of 4122 the unpaid operating expenses previously incurred. Nothing in 4123 this paragraph shall preclude the right of an association to 4124 accelerate assessments of an owner delinquent in payment of 4125 common expenses. Accelerated assessments shall be due and 4126 payable on the date the claim of lien is filed. Such accelerated 4127 assessments shall include the amounts due for the remainder of 4128 the budget year in which the claim of lien was filed and, if the 4129 unit is foreclosed, shall not be forgiven as to the remaining 4130 portion of the year if not paid. 4131 (i)(h)Amendment of bylaws.— 4132 1.The method by which the bylaws may be amended consistent4133with the provisions of this chapter shall be stated. If the4134bylaws fail to provide a method of amendment,The bylaws may be 4135 amended if the amendment is approved by the owners of a majority 4136 of the units present and voting at a duly called meeting of the 4137 common interest communitynot less than two-thirds of the voting4138interests. 4139 2. No bylaw shall be revised or amended by reference to its 4140 title or number only. Proposals to amend existing bylaws shall 4141 contain the full text of the bylaws to be amended; new words 4142 shall be inserted in the text underlined, and words to be 4143 deleted shall be lined through with hyphens. However, if the 4144 proposed change is so extensive that this procedure would 4145 hinder, rather than assist, the understanding of the proposed 4146 amendment, it is not necessary to use underlining and hyphens as 4147 indicators of words added or deleted, but, instead, a notation 4148 must be inserted immediately preceding the proposed amendment in 4149 substantially the following language: “Substantial rewording of 4150 bylaw. See bylaw .... for present text.” 4151 3. Nonmaterial errors or omissions in the bylaw process 4152 will not invalidate an otherwise properly promulgated amendment. 4153 (j)(i)Transfer fees.—ANochargeshall bemade by the 4154 associationor any body thereofin connection with the sale, 4155 mortgage, lease, sublease, or other transfer of a unit unless 4156 the association is not required to approve such transferand a4157fee for such approval is provided for in the declaration,4158articles, or bylaws. 4159 1. Any such fee may be preset and may not, but in no event4160may such feeexceed $100. Aper applicant other than4161 husband/wife or parent/dependent child shall be, which are4162 considered one applicant. However, if the lease or sublease is a 4163 renewal of a lease or sublease with the same lessee or 4164 sublessee, no charge shall be made. 4165 2.The foregoingNotwithstanding subparagraph 1., an 4166 association may, unless prohibited byifthe documentsauthority4167to do so appears in the declarationor bylaws, require that a 4168 prospective lessee place a security deposit, in an amount not to 4169 exceed the equivalent of 1 month’s rent, into an escrow account 4170 maintained by the association. The security deposit shall 4171 protect against damages to the common elements or association 4172 property. Claims for payment of interest, claimsagainst the 4173 deposit, refunds, and disputes under this paragraph shall be 4174 handled in the same fashion as provided in part II of chapter 4175 83. 4176 3. The lease must provide that the provisions of s. 718.303 4177 apply to such lease, including the assignment of rent to the 4178 association in the case of delinquency of assessments, and if 4179 the provisions of s. 718.303 are not included in such lease, 4180 such provisions shall be deemed included. 4181 (k)(j)Recall of board members.—Subject to s. 718.301,Any 4182 member of the board of directorsadministrationmay be recalled 4183 and removed from office with or without cause bythe vote or4184 agreement in writing by a majority of all the voting interests 4185 on a form provided by the division.A special meeting of the4186unit owners to recall a member or members of the board of4187administration may be called by 10 percent of the voting4188interests giving notice of the meeting as required for a meeting4189of unit owners, and the notice shall state the purpose of the4190meeting. Electronic transmission may not be used as a method of4191giving notice of a meeting called in whole or in part for this4192purpose.41931. If the recall is approved by a majority of all voting4194interests by a vote at a meeting, the recall will be effective4195as provided in this paragraph. The board shall duly notice and4196hold a board meeting within 5 full business days after the4197adjournment of the unit owner meeting to recall one or more4198board members. At the meeting, the board shall either certify4199the recall, in which case such member or members shall be4200recalled effective immediately and shall turn over to the board4201within 5 full business days any and all records and property of4202the association in their possession, or shall proceed as set4203forth in subparagraph 3.4204 1.2.TheIf the proposed recall is by anagreement in 4205 writing by a majority of all voting interests, the agreement in4206writingor a copy of the agreementthereofshall be served on 4207 the association or community association manager by certified 4208 mail or by personal service in the manner authorized by chapter 4209 48 and the Florida Rules of Civil Procedure. 4210 2. The board of directorsadministrationshall duly notice 4211 and hold a meeting of the board within 5 full business days 4212 after receipt of the agreementin writing. At the meeting, the 4213 board shall either certify the written agreement to recall a 4214 member or members of the board, in which case such member or 4215 members shall be recalled effective immediately and shall turn 4216 over to the board within 5 full business days any and all 4217 records and property of the association in their possession, or 4218 proceed as described in subparagraph 3. 4219 3. If the board determines not to certify the written 4220 agreement to recall a member or members of the board,or does4221not certify the recall by a vote at a meeting,the board shall, 4222 within 5 full business days after the meeting, file with the 4223 division a petition for arbitration pursuant to the procedures 4224 in s. 718.1255. For the purposes of this section, the unit 4225 ownerswho voted at the meeting orwho executed the agreement in 4226 writing shall constitute one party under the petition for 4227 arbitration. If the arbitrator certifies the recall as to any 4228 member or members of the board, the recall will be effective 4229 upon mailing of the final order of arbitration to the 4230 association. If the association fails to comply with the order 4231 of the arbitrator, the division may take action pursuant to s. 4232 718.501. Any member or members so recalled shall deliver to the 4233 board any and all records of the association in their possession 4234 within 5 full business days after the effective date of the 4235 recall. 4236 4. If the board fails to duly notice and hold a board 4237 meeting within 5 full business days after service of an 4238 agreement in writingor within 5 full business days after the4239adjournment of the unit owner recall meeting, the recall shall 4240 be deemed effective and the board members so recalled shall 4241 immediately turn over to the board any and all records and 4242 property of the association. 42435. If the board fails to duly notice and hold the required4244meeting or fails to file the required petition, the unit owner4245representative may file a petition pursuant to s. 718.12554246challenging the board’s failure to act. The petition must be4247filed within 60 days after the expiration of the applicable 54248full-business-day period. The review of a petition under this4249subparagraph is limited to the sufficiency of service on the4250board and the facial validity of the written agreement or4251ballots filed.4252 5.6.If a vacancy occurs on the board as a result of a 4253 recall or removal and less than a majority of the board members 4254 are removed, the vacancy may be filled by persons specified on 4255 the recall petition form. If the vacancies exceed the number of 4256 replacement directors on the recall form, the vacancy may be 4257 filled by the affirmative vote of a majority of the remaining 4258 directors, notwithstanding any provision to the contrary 4259 contained in this subsection. If vacancies occur on the board as 4260 a result of a recall and a majority or more of the board members 4261 are removed, the vacancies shall be filled in accordance with 4262 procedural rules to be adopted by the division, which rules need 4263 not be consistent with this subsection. The rules must provide 4264 procedures governing the conduct of the recall election as well 4265 as the operation of the association during the period after a 4266 recall but before the recall election. 4267 6.7.Any recalled director who fails to turn over 4268 association records pursuant to this paragraph commits a 4269 violation of s. 718.111(12)(d) and shall be fined by the 4270 divisionA board member who has been recalled may file a4271petition pursuant to s. 718.1255 challenging the validity of the4272recall.The petition must be filed within 60 days after the4273recall is deemed certified. The association and the unit owner4274representative shall be named as the respondents.42758. The division may not accept for filing a recall4276petition, whether filed pursuant to subparagraph 1.,4277subparagraph 2., subparagraph 5., or subparagraph 7. and4278regardless of whether the recall was certified, when there are427960 or fewer days until the scheduled reelection of the board4280member sought to be recalled or when 60 or fewer days have4281elapsed since the election of the board member sought to be4282recalled.4283 (l)(k)Arbitration.—There shall be a provision for 4284 mandatory nonbinding arbitration as provided for in s. 718.1255 4285 for any residential common interest communitycondominium. 4286 (m)(l)Certificate of compliance.—A provision that a 4287 certificate of compliance from a licensed electrical contractor, 4288orelectrician, or engineer may be accepted by the association’s 4289 board as evidence of compliance of the common interest community 4290condominiumunits with the applicable fire and life safety code 4291 must be included. Notwithstanding chapter 633 or of any other 4292 code, statute, ordinance, administrative rule, or regulation, or 4293 any interpretation of the foregoing, an association, residential 4294 common interest communitycondominium, or unit owner is not 4295 obligated to retrofit the common elements, association property, 4296 or units of a residential common interest communitycondominium4297 with a fire sprinkler system in a building that has been 4298 certified for occupancy by the applicable governmental entity if 4299 the unit owners have voted to forego such retrofitting by the 4300 affirmative vote of a majority of all voting interests in the 4301 affected common interest communitycondominium. The local 4302 authority having jurisdiction may not require completion of 4303 retrofitting with a fire sprinkler system before January 1, 4304 2020. By December 31, 2016, a residential common interest 4305 communitycondominiumassociation that is not in compliance with 4306 the requirements for a fire sprinkler system and has not voted 4307 to forego retrofitting of such a system must initiate an 4308 application for a building permit for the required installation 4309 with the local government having jurisdiction demonstrating that 4310 the association will become compliant by December 31, 2019. 4311 1. A vote to forego retrofitting may be obtained by limited 4312 proxy or by a ballot personally cast at a duly called membership 4313 meeting, or by execution of a written consent by the member, and 4314 is effective upon recording a certificate attesting to such vote 4315 in the public records of the county where the common interest 4316 communitycondominiumis located. The association shall mail or 4317 hand deliver to each unit owner written notice at least 14 days 4318 before the membership meeting in which the vote to forego 4319 retrofitting of the required fire sprinkler system is to take 4320 place. Within 30 days after the association’s opt-out vote, 4321 notice of the results of the opt-out vote must be mailed or hand 4322 delivered to all unit owners. Evidence of compliance with this 4323 notice requirement shallmustbe made by an affidavit executed 4324 by the person providing the notice and filed among the official 4325 records of the association. After notice is provided to each 4326 owner, a copy must be provided by the current owner to a new 4327 owner before closing and shall be provided by a unit owner or 4328 agent to a renter before signing a lease. 4329 2. If there has been a previous vote to forego 4330 retrofitting, a vote to require retrofitting may be obtained at 4331 a special meeting of the unit owners called by a petition of at 4332 least 10 percent of the voting interests. Such a vote may only 4333 be called once every 3 years. Notice shall be provided as 4334 required for any regularly called meeting of the unit owners, 4335 and must state the purpose of the meeting. Electronic 4336 transmission may not be used to provide notice of a meeting 4337 called in whole or in part for this purpose. 4338 3. As part of the information collected annually from 4339 common interest communitiescondominiums, the division shall 4340 require common interest communitycondominiumassociations to 4341 report the membership vote and recording of a certificate under 4342 this subsection and, if retrofitting has been undertaken, the 4343 per-unit cost of such work. The division shall annually report 4344 to the Division of State Fire Marshal of the Department of 4345 Financial Services the number of unitscondominiumsthat have 4346 elected to forego retrofitting. 4347 4. Notwithstanding s. 553.509, a common interest community 4348residential associationmay not be obligated to, and may forego 4349 the retrofitting of, any improvements required by s. 553.509(2) 4350 upon an affirmative vote of a majority of the voting interests 4351 in the affected common interest communitycondominium. 4352 5. A notice of approval by the division of the opt-out 4353 provision shall be posted in a conspicuous place adjacent to 4354 each elevator door on the first floor of the building. 4355 (n)(m)Common elements; limited power to convey.— 43561. With respect to condominiums created on or after October43571, 1994, the bylaws shall include a provision grantingThe board 4358 of directors mayassociation a limited power toconvey a portion 4359 of the common elements to a condemning authority for the purpose 4360 of providing utility easements, right-of-way expansion, or other 4361 public purposes, whether negotiated or as a result of eminent 4362 domain proceedings. 43632. In any case where the bylaws are silent as to the4364association’s power to convey common elements as described in4365subparagraph 1., the bylaws shall be deemed to include the4366provision described in subparagraph 1.4367 (o)(n)Director or officer delinquencies.—A director or 4368 officer more than 90 days delinquent in the payment of any fee 4369 or assessmentmonetary obligation due the associationshall be 4370 deemed to have abandoned the office, creating a vacancy in the 4371 office to be filled according to law. 4372 (p)(o)Director or officer offenses.—A director or officer 4373 charged by information or indictment with a felony theft or 4374 embezzlement offense involving the association’s funds or 4375 property must be removed from office, creating a vacancy in the 4376 office to be filled according to law until the end of the period 4377 of the suspension or the end of the director’s term of office, 4378 whichever occurs first. While such director or officer has such 4379 criminal charge pending, he or she may not be appointed or 4380 elected to a position as a director or officer. However, if the 4381 charges are resolved without a finding of guilt, the director or 4382 officer shall be reinstated for the remainder of his or her term 4383 of office, if any. 4384 (q) Member responsibility.—In determining whether a member 4385 of the board performed his or her duties pursuant to s. 4386 718.111(1)(f), the division or commission may consider whether 4387 the member of the board has: 4388 1. Acted outside the scope of the authority granted in the 4389 governing documents; 4390 2. Acted for reasons of self-interest, gain, prejudice, or 4391 revenge; 4392 3. Committed an act or omission that constitutes 4393 incompetence, negligence, or gross negligence; 4394 4. Disclosed confidential information relating to a unit’s 4395 owner, a member of the executive board, or an officer, employee, 4396 or authorized agent of the association unless the disclosure is 4397 consented to by the person to whom the information relates, 4398 except as otherwise required by law or court order; 4399 5. Impeded or otherwise interfered with an investigation of 4400 the division by: 4401 a. Failing to comply with a request by the division to 4402 provide information or documents; 4403 b. Supplying false or misleading information to an 4404 investigator, auditor, or any other officer or agent of the 4405 division; or 4406 c. Concealing any facts or documents relating to the 4407 business of the association; 4408 6. Kept informed of laws, regulations, and developments 4409 relating to common interest communities; 4410 7. Cooperated with the division in resolving complaints 4411 filed with the division; and 4412 8. Caused the association to: 4413 a. Comply with all applicable federal, state, and local 4414 laws and regulations and the governing documents of the 4415 association; 4416 b. Uniformly enforce the governing documents of the 4417 association; 4418 c. Hold meetings of the board with such frequency as to 4419 properly and efficiently address the affairs of the association; 4420 d. Obtain, when practicable, at least three bids from 4421 reputable service providers who possess the proper licensing 4422 before purchasing any service for use by the association; 4423 e. Consult with appropriate professionals as necessary 4424 before making any major decision affecting the association or 4425 the common elements; 4426 f. Deposit all funds of the association for investment in 4427 government securities that are backed by the full faith and 4428 credit of the United States or in a financial institution, only 4429 if such funds do not exceed the institution’s insured amount, 4430 whose accounts are insured by the Federal Deposit Insurance 4431 Corporation, the National Credit Union Share Insurance Fund, or 4432 the Securities Investor Protection Corporation; 4433 g. Maintain current, accurate, and properly documented 4434 financial records; 4435 h. Establish policies and procedures for the disclosure of 4436 potential conflicts of interest and the appropriate manner by 4437 which to resolve such conflicts; 4438 i. Establish policies and procedures that are designed to 4439 provide reasonable assurances in the reliability of financial 4440 reporting, including, without limitation, proper maintenance of 4441 accounting records, documentation of the authorization for 4442 receipts and disbursements, verification of the integrity of the 4443 data used in making business decisions, facilitation of fraud 4444 detection and prevention, and compliance with the applicable 4445 laws and regulations governing financial records; 4446 j. Prepare interim and annual financial statements that 4447 will allow the division, the board, the unit owners, and an 4448 accountant or auditor to determine whether the financial 4449 position of the association is fairly presented in accordance 4450 with good business practices; 4451 k. Make the financial records of the association available 4452 for inspection by the division in accordance with the applicable 4453 laws and regulations of the state; 4454 l. Cooperate with the division in resolving complaints 4455 filed with the division; and 4456 m. Adopt and fairly enforce the collection policies and 4457 operating policies of the association. 4458 (3) OPTIONAL PROVISIONS.—The bylaws as originally recorded 4459 or as amended under the procedures provided therein may provide 4460 for the following: 4461 (a) A method of adopting and amending administrative rules 4462 and regulations governing the details of the operation and use 4463 of the common elements which may not be implemented before 4464 publication and disbursement of such method to all members and 4465 residents. 4466 (b) Restrictions on and requirements for the use, 4467 maintenance, and appearance of the units and the use of the 4468 common elements. 4469 (c) Provisions for giving noticeby electronic transmission4470 in a manner authorized by law of meetings of the board of 4471 directors and committees and of annual and special meetings of 4472 the members. 4473 (d) Other provisionswhich arenot inconsistent with this 4474 chapter or with the documentsdeclaration, as may be desired. 4475 Section 59. Section 718.1124, Florida Statutes, is amended 4476 to read: 4477 718.1124 Failure to fill vacancies on board of 4478 administration sufficient to constitute a quorum; appointment of 4479 receiver upon petition of unit owner.— 4480 (1) If an association fails to fill vacancies on the board 4481 of administration sufficient to constitute a quorum in 4482 accordance with the bylaws, any unit owner may give notice of 4483 his or her intent to apply to the circuit court within whose 4484 jurisdiction the common interest communitycondominiumlies for 4485 the appointment of a receiver to manage the affairs of the 4486 association. The form of the notice shall be as follows: 4487 4488 NOTICE OF INTENT TO 4489 APPLY FOR RECEIVERSHIP 4490 4491 YOU ARE HEREBY NOTIFIED that the undersigned owner of 4492 a common interest communitycondominiumunit in 4493 ...(name of common interest communitycondominium)... 4494 intends to file a petition in the circuit court for 4495 appointment of a receiver to manage the affairs of the 4496 association on the grounds that the association has 4497 failed to fill vacancies on the board of 4498 administration sufficient to constitute a quorum. This 4499 petition will not be filed if the vacancies are filled 4500 within 30 days after the date on which this notice was 4501 sent or posted, whichever is later. If a receiver is 4502 appointed, the receiver shall have all of the powers 4503 of the board and shall be entitled to receive a salary 4504 and reimbursement of all costs and attorneyattorney’s4505 fees payable from association funds. 4506 4507 ...(name and address of petitioning unit owner)... 4508 4509 (2) The notice required by subsection (1) must be provided 4510 by the unit owner to the association by certified mail or 4511 personal delivery, must be posted in a conspicuous place on the 4512 common interest communitycondominiumproperty, and must be 4513 provided by the unit owner to every other unit owner of the 4514 association by certified mail or personal delivery. The notice 4515 must be posted and mailed, electronically transmitted, or hand 4516 delivered at least 30 days beforeprior tothe filing of a 4517 petition seeking receivership. Notice by mail to a unit owner 4518 shall be sent to the address used by the county property 4519 appraiser for notice to the unit owner, except that where a unit 4520 owner’s address is not publicly available the notice shall be 4521 mailed to the unit. 4522 (3) If the association fails to fill the vacancies within 4523 30 days after the notice required by subsection (1) is posted 4524 and mailed or delivered, the unit owner may proceed with the 4525 petition. 4526 (4) If a receiver is appointed, all unit owners shall be 4527 given written notice of such appointment as provided in s. 4528 718.127. 4529 (5) The association shall be responsible for the salary of 4530 the receiver, court costs, and attorneyattorney’sfees. The 4531 receiver shall have all powers and duties of a duly constituted 4532 board of administration and shall serve until the association 4533 fills vacancies on the board sufficient to constitute a quorum 4534 and the court relieves the receiver of the appointment. 4535 Section 60. Section 718.113, Florida Statutes, is amended 4536 to read: 4537 718.113 Maintenance; limitation upon improvement; display 4538 of flag; hurricaneshutters andprotection; display of spiritual 4539religiousdecorations; access ramps; decals; xeriscape; mold.— 4540 (1) Maintenance of the common elements is the 4541 responsibility of the association. The documentsdeclarationmay 4542 provide that certain limited common elements shall be maintained 4543 by those entitled to use the limited common elements or that the 4544 association shall provide the maintenance, either as a common 4545 expense or with the cost shared only by those entitled to use 4546 the limited common elements. If the maintenance is to be by the 4547 association at the expense of only those entitled to use the 4548 limited common elements, the documentsdeclarationshall 4549 describe in detail the method of apportioning such costs among 4550 those entitled to use the limited common elements, and the 4551 association may use the provisions of s. 718.116 to enforce 4552 payment of the shares of such costs by the unit owners entitled 4553 to use the limited common elements. 4554 (2)(a)Except as otherwise provided in this section, there 4555 shall be no material alteration or substantial additions to the 4556 common elements or to real property that is association 4557 property, common interest community property, or multi-common 4558 interest community property except in a manner provided in an 4559 amendment to the documentswhich is association property, except4560in a manner provided in the declaration as originally recorded4561or as amended under the procedures provided therein.If the4562declaration as originally recorded or as amended under the4563procedures provided therein does not specify the procedure for4564approval of material alterations or substantial additions, 754565percent of the total voting interests of the association must4566approve the alterations or additions. This paragraph is intended4567to clarify existing law and applies to associations existing on4568October 1, 2008.4569(b) There shall not be any material alteration of, or4570substantial addition to, the common elements of any condominium4571operated by a multicondominium association unless approved in4572the manner provided in the declaration of the affected4573condominium or condominiums as originally recorded or as amended4574under the procedures provided therein. If a declaration as4575originally recorded or as amended under the procedures provided4576therein does not specify a procedure for approving such an4577alteration or addition, the approval of 75 percent of the total4578voting interests of each affected condominium is required. This4579subsection does not prohibit a provision in any declaration,4580articles of incorporation, or bylaws as originally recorded or4581as amended under the procedures provided therein requiring the4582approval of unit owners in any condominium operated by the same4583association or requiring board approval before a material4584alteration or substantial addition to the common elements is4585permitted. This paragraph is intended to clarify existing law4586and applies to associations existing on the effective date of4587this act.4588(c) There shall not be any material alteration or4589substantial addition made to association real property operated4590by a multicondominium association, except as provided in the4591declaration, articles of incorporation, or bylaws as originally4592recorded or as amended under the procedures provided therein. If4593the declaration, articles of incorporation, or bylaws as4594originally recorded or as amended under the procedures provided4595therein do not specify the procedure for approving an alteration4596or addition to association real property, the approval of 754597percent of the total voting interests of the association is4598required. This paragraph is intended to clarify existing law and4599applies to associations existing on the effective date of this4600act.4601 (3) A unit owner shall not do anything within his or her 4602 unit or on the common elements which would adversely affect the 4603 safety or soundness of the common elements or any portion of the 4604 association property or common interest communitycondominium4605 property which is to be maintained by the association. 4606 (4) Any unit owner may display one portable, removable 4607 United States flag in a respectful way and, on Armed Forces Day, 4608 Memorial Day, Flag Day, Independence Day, and Veterans Day, may 4609 display in a respectful way portable, removable official flags, 4610 not larger than 4 1/2 feet by 6 feet, that represent the United 4611 States Army, Navy, Air Force, Marine Corps, or Coast Guard, 4612 regardless of any declaration rules or requirements dealing with 4613 flags or decorations. The flag must be equal in size or smaller 4614 than the United States flag. An owner may erect a freestanding 4615 flagpole on property not owned or maintained by the common 4616 interest community which is no more than 20 feet high on any 4617 portion of his or her real property if the flagpole does not 4618 obstruct sightlines at intersections and is not erected within 4619 or upon an easement. If a flagpole is installed on property 4620 maintained by the association, reasonable accommodations shall 4621 be adopted to allow display of the flag. 4622 (5) Each boardof administrationof a residential common 4623 interest communitycondominiumshall adopt building opening 4624 hurricane protectionshutterspecifications for each building 4625 within each common interest communitycondominiumoperated by 4626 the association which shall include color, style, and other 4627 factors deemed relevant by the board. All specifications adopted 4628 by the board must comply with or exceed the applicable building 4629 code. 4630 (a) The board may, subject to s. 718.3026 and the approval 4631 of a majority of voting interests of the residential common 4632 interest communitycondominium, install building opening 4633hurricane shutters, impact glass, code-compliant windows or4634doors, or other types of code-complianthurricane protection 4635 that compliescomplywith or exceedsexceedthe applicable 4636 building code. However, a vote of the owners is not required if 4637 the maintenance, repair, and replacement of building opening 4638hurricane shutters, impact glass, code-compliant windows or4639doors, or other types of code-complianthurricane protection is 4640arethe responsibility of the association pursuant to the 4641 declaration of common interest communitycondominium. If 4642 hurricane protection or laminated glass or window film 4643 architecturally designed to function as hurricane protection 4644 that complies with or exceeds the current applicable building 4645 code has been previously installed, the board may not install 4646 additional hurricaneshutters, impact glass, code-compliant4647windows or doors, or other types of code-compliant hurricane4648 protection except upon approval by a majority vote of the owners 4649 at a duly called meetingvoting interests. 4650 (b) The association is responsible for the maintenance, 4651 repair, and replacement of the building openinghurricane4652shutters, impact glass, code-compliant windows or doors, or4653other types of code-complianthurricane protection authorized by 4654 this subsection if such protectionpropertyis the 4655 responsibility of the association pursuant to the documents 4656declaration of condominium. If the building openinghurricane4657shutters, impact glass, code-compliant windows or doors, or4658other types of code-complianthurricane protection authorized by 4659 this subsection isarethe responsibility of the unit owners 4660 pursuant to the documentsdeclaration of condominium, the 4661 maintenance, repair, and replacement of such items are the 4662 responsibility of the unit owner. 4663 (c) The board may operate shutters, impact glass, code4664compliant windows or doors, or other types of code-compliant4665hurricane protectioninstalled pursuant to this subsection 4666 without permission of the unit ownersonlyif such operation is 4667 necessary to preserve and protect the common interest community 4668condominiumproperty and association property. The installation, 4669 replacement, operation, repair, and maintenance of such 4670 shutters, impact glass, code-compliant windows or doors, or4671other types of code-compliant hurricane protectionin accordance 4672 with the procedures set forth in this paragraph are not a 4673 material alteration to the common elements or association 4674 property within the meaning of this section. 4675 (d) Notwithstanding any other provision in the residential 4676 common interest communitycondominiumdocuments, if approval is 4677 required by the documents, a board may not refuse to approve the 4678 installation or replacement of hurricane shutters, impact glass,4679code-compliant windows or doors, or other types of code4680compliant hurricane protectionby a unit owner conforming tothe4681 specifications adopted by the board. 4682 (e) A prohibition of use of hurricane shutters may not be 4683 enforced by the association unless the association also accepts 4684 the responsibility to install or operate such shutters at the 4685 time of a hurricane warning to protect the property. 4686 (6) An association may not refuse the request of a unit 4687 owner for a reasonable accommodation for the attachment on the 4688 mantel or frame of the door of the unit owner of a spiritual 4689religiousobject not to exceed 3 inches wide, 6 inches high, and 4690 1.5 inches deep. 4691 (7) Notwithstanding the provisions of this section or the 4692 governing documents of a common interest communitycondominium4693 or a multi-common interest communitymulticondominium4694 association, the boardof administrationmay, without any 4695 requirement for approval of the unit owners, install upon or 4696 within the common elements or association property solar 4697 collectors, clotheslines,or other energy-efficient devices 4698 based on renewable resources for the benefit of the unit owners. 4699 (8)(a) Any parcel owner may construct an access ramp if a 4700 resident or occupant of the parcel has a medical necessity or 4701 disability that requires a ramp for egress and ingress under the 4702 following conditions: 4703 1. The ramp must be as unobtrusive as possible, be designed 4704 to blend in as aesthetically as practicable, and be reasonably 4705 sized to fit the intended use without obstructing ingress or 4706 egress for any other person. 4707 2. Plans for the ramp must be submitted to the association 4708 before it is installed and the association may make reasonable 4709 requests to modify the design to achieve architectural 4710 consistency with surrounding structures and surfaces. 4711 (b) The parcel owner must submit to the association an 4712 affidavit from a physician attesting to the medical necessity or 4713 disability of the resident or occupant of the parcel requiring 4714 the access ramp. Certification used for s. 320.0848 shall be 4715 sufficient to meet the affidavit requirement. 4716 (c) Costs for installation, removal, and renovation of the 4717 property to its original condition are the responsibility of the 4718 owner. 4719 (9) An owner may display a sign or window decal of 4720 reasonable size provided by a contractor for security services 4721 within 10 feet of any entrance to the home as long as it is not 4722 on common interest community property. 4723 (10) An association may not restrict, prohibit, or limit 4724 xeriscape; prohibit or limit the installation or use of drought 4725 tolerant vegetative landscapes; or require cultivated vegetation 4726 to consist exclusively or primarily of turf grass on property 4727 that is the responsibility of the unit owner to maintain. Any 4728 such restriction is contrary to public policy and, therefore, 4729 the section of the documents which includes such restriction 4730 shall be unenforceable and not a material alteration to the 4731 common elements or association property within the meaning of 4732 this section. 4733 (11) An association responsible for landscape installation 4734 and maintenance on common property may, by amending the 4735 documents, provide for xeriscape and the use of drought-tolerant 4736 vegetative landscapes. The association may replace cultivated 4737 vegetation consisting exclusively or primarily of turf grass on 4738 property that is the responsibility of the association to 4739 maintain. Any such restriction is contrary to public policy and, 4740 therefore, the section of the documents which includes such 4741 restriction is unenforceable and not a material alteration to 4742 the common elements or association property within the meaning 4743 of this section. 4744 (12)(a) The prevention of mold and mildew in proximity to 4745 the unit is the unit owner’s responsibility through proper 4746 inspection and maintenance of the unit. 4747 (b) The association is not responsible for the prevention 4748 of mold and mildew or any damages, including, but not limited 4749 to, any special or consequential damages, property damages, 4750 personal injury, loss of income, emotional distress, death, loss 4751 of use, loss of income, diminution or loss of value of the unit, 4752 economic damages, or adverse health effects relating to, arising 4753 from, or caused by mold and mildew accumulation regardless of 4754 the cause of the mold or mildew. 4755 (c) A unit owner, by virtue of his or her acceptance of 4756 title to the unit, and each other person having an interest in 4757 or lien upon, or making any use of, any portion of the common 4758 interest community property by virtue of accepting such interest 4759 or making such uses is bound by this subsection and shall be 4760 deemed to have automatically waived any and all claims, 4761 obligations, demands, damages, causes of action, liabilities, 4762 losses, and expenses, whether now known or hereafter known, 4763 foreseen or unforeseen, that the unit owner has, or may have in 4764 the future, in law or in equity arising out of, relating to, or 4765 in any way connected with indoor air quality, moisture, or the 4766 growth, release, discharge, dispersal, or presence of mold or 4767 mildew or any chemical or toxin secreted therefrom. 4768 Section 61. Section 718.114, Florida Statutes, is amended 4769 to read: 4770 718.114 Association powers.— 4771 (1) An association may enter into agreements to acquire 4772 leaseholds, memberships, and other possessory or use interests 4773 in lands or facilities such as country clubs, golf courses, 4774 marinas, and other recreational facilities, regardless of 4775 whether the lands or facilities are contiguous to the lands of 4776 the common interest communitycondominium, if such lands and 4777 facilities are intended to provide enjoyment, recreation, or 4778 other use or benefit to the unit owners. 4779 (2) All of these leaseholds, memberships, and other 4780 possessory or use interests existing or created at the time of 4781 recording the declaration must be stated and fully described in 4782 the declaration. 4783 (3) Subsequent to the recording of the declaration, 4784 agreements acquiring these leaseholds, memberships, or other 4785 possessory or use interestswhich arenot entered into within 12 4786 months afterof the date ofthe recording of documentsthe4787certificate of a surveyor and mapper pursuant to s.4788718.104(4)(e) or the recording of an instrument that transfers4789title to a unit in the condominium which is not accompanied by a4790recorded assignment of developer rights in favor of the grantee4791of such unit, whichever occurs first,are a material alteration 4792 or substantial addition to the real property that is association 4793 property, and the association may not acquire or enter into such 4794 agreements except upon a vote of, or written consent by, a 4795 majority of the total voting interests or as authorized by the 4796 declaration as provided in s. 718.113. 4797 (4) The documentsdeclarationmay provide that the rental, 4798 membership fees, operations, replacements, and other expenses 4799 are common expenses and may impose covenants and restrictions 4800 concerning their use and may contain other provisions not 4801 inconsistent with this chapter. 4802 (5) Mandatory membership or other possessory or use rights 4803 may only be enforced upon membership-owned facilities. 4804 (6) A common interest communitycondominium associationmay 4805 conduct bingo games as provided in s. 849.0931. 4806 Section 62. Section 718.115, Florida Statutes, is amended 4807 to read: 4808 718.115 Common expenses and common surplus.— 4809(1)(a)Common expenses include the expenses of the 4810 operation, maintenance, repair, replacement, or protection of 4811 the common elements and association property, costs of carrying 4812 out the responsibilitiespowersand duties of the association, 4813 and any other expense, whether or not included in the foregoing, 4814 designated as common expense by this chapter, the governing 4815 documentsdeclaration, the documents creating the association, 4816 or the bylaws. 4817 (1) Common expenses also include reasonable transportation 4818 services, insurance for directors and officers, road maintenance 4819 and operation expenses, in-house communications, and security 4820 services, which are reasonably related to the general benefit of 4821 the unit owners even if such expenses do not attach to the 4822 common elements or property of the common interest community 4823condominium. 4824 (2) However, such common expenses must either have been 4825 services or items provided on or after the date control of the 4826 association is transferred from the developer to the unit owners 4827 or must be services or items provided for in the common interest 4828 communitycondominiumdocuments or bylaws. 4829 (3) Unless the manner of payment or allocation of expenses 4830 is otherwise addressed in the documentsdeclaration of4831condominium, the expenses of any items or services required by 4832 any federal, state, or local governmental entity to be 4833 installed, maintained, or supplied to the common interest 4834 communitycondominiumproperty by the association, including, 4835 but not limited to, firesafety equipment or water and sewer 4836 service where a master meter serves the common interest 4837 communitycondominium, shall be common expenses as provided in 4838 subsection (4), regardless of whetheror notsuch items or 4839 services are specifically identified as common expenses in the 4840 documentsdeclaration of condominium, articles of incorporation, 4841 or bylaws of the association. 4842 (4) In a common interest community where water service is 4843 provided through a master meter serving the common interest 4844 community, if the board determines water usage per unit, 4845 compared to similar common interest communities with individual 4846 meters, is excessive, individual meters may be installed at the 4847 common interest community. The installation of meters may be by 4848 the utility company serving the common interest community or 4849 sub-meters may be installed by the common interest community and 4850 the common interest community shall bill each unit at least 4851 quarterly for the usage based on the actual cost per gallon of 4852 water and sewer service billed by the utility. Such meters may 4853 not be considered material alterations or a change in the 4854 allocation of common expenses. 4855 (5) The common expenses of a common interest community 4856 within a multi-common interest community are the common expenses 4857 directly attributable to the operation of that common interest 4858 community. 4859(b) The common expenses of a condominium within a4860multicondominium are the common expenses directly attributable4861to the operation of that condominium.The common expenses of the 4862a multicondominiumassociation do not include the common 4863 expenses directly attributable to the operation of any specific 4864 multi-common interest community, common interest community, or 4865 common interest communities within the multi-common interest 4866 communitycondominium or condominiums within the4867multicondominium.This paragraph is intended to clarify existing4868law and applies to associations existing on the effective date4869of this act.4870 (6)(c)The common expenses of a multi-common interest 4871 communitymulticondominiumassociation may include categories of 4872 expenses related to the property or common elements within a 4873 specific common interest communitycondominiumin the multi 4874 common interest communitymulticondominiumif such property or 4875 common elements are areas in which all members of the multi 4876 common interest communitymulticondominiumassociation have use 4877 rights or from which all members receive tangible economic 4878 benefits. Such common expenses of the association shall be 4879 identified in the documentsdeclarationor bylaws as originally 4880 recorded or as amended under the procedures provided therein of 4881 each common interest communitycondominiumwithin the multi 4882 common interest communitymulticondominiumassociation.This4883paragraph is intended to clarify existing law and applies to4884associations existing on the effective date of this act.4885 (7)(d)If provided in the documentsdeclaration, the cost 4886 of a master antenna systemcommunications services as defined in4887chapter 202, information services,or duly franchised cable 4888 serviceInternet servicesobtained pursuant to a bulk contract 4889 is a common expense. If the documents dodeclaration doesnot 4890 provide for the cost of a master antenna system or duly 4891 franchised cable service obtained under a bulk contractsuch4892servicesas a common expense, the board may enter into such a 4893 contract, and the cost of the service will be a common expense 4894 but. The cost for the services under a bulk rate contract may be4895 allocated on a per-unit basis rather than a percentage basis if 4896 the documents providedeclaration providesfor other than an 4897 equal sharing of common expenses, and any contract entered into 4898 before July 1, 20161998, in which the cost of the service is 4899 not equally divided among all unit owners, may be changed by 4900 vote of a majority of the voting interests present at a regular 4901 or special meeting of the association, to allocate the cost 4902 equally among all units. The contract shallmustbe for a term 4903 of at least 2 years. 4904 (a)1.Any contract made by the board on or after July 1, 4905 20161998, for a community antenna system or duly franchised 4906 cable service may be canceled by a majority of the voting 4907 interests present at the next regular or special meeting of the 4908 association. The question shall be included on the limited proxy 4909 for the meeting and a copy of the contract shall be included 4910 with the information for the meeting. If the questionAny member4911may make a motion to cancel the contract, but if no motion is4912made or if such motionfails to obtain the required majority at 4913 the next regular or special meeting, whichever occurs first, 4914 following the making of the contract, such contract shall be 4915 deemed ratified for the term therein expressed. 4916 (b)2.Any such contract shallmustprovide, and is deemed 4917 to provide if not expressly set forth, that any hearing-impaired 4918 or legally blind unit owner who does not occupy the unit with a 4919 non-hearing-impaired or sighted person, or any unit owner 4920 receiving supplemental security income under Title XVI of the 4921 Social Security Act or food stampsassistanceas administered by 4922 the Department of Children and Families pursuant to s. 414.31, 4923 may discontinue the cable or video service without incurring 4924 disconnect fees, penalties, or subsequent service charges, and, 4925 as to such units, the owners are not required to pay any common 4926 expenses charge related to such service and that amount shall be 4927 deducted from the amount of the payment required to be made to 4928 the service provider.If fewer than all members of an4929association share the expenses of cable or video service, the4930expense shall be shared equally by all participating unit4931owners.The association may use the provisions of s. 718.116 to 4932 enforce payment of the shares of such costs by the unit owners 4933 receiving cableor videoservice. If a unit owner is in default 4934 of payment of regular assessments for more than 60 days, the 4935 service provider, upon request by the association, shall 4936 terminate the service to the unit without charge to the 4937 association and adjust the payment due to the service provider 4938 to remove the relevant charge. Any charge to reconnect services 4939 shall be at the expense of the unit owner. 4940 (8)(e)The expense of installation, replacement, operation, 4941 repair, and maintenance of building openinghurricane shutters,4942impact glass, code-compliant windows or doors, or other types of4943code-complianthurricane protection by the board pursuant to s. 4944 718.113(5) constitutes a common expense and shall be collected 4945 as provided in this section if the association is responsible 4946 for the maintenance, repair, and replacement of the building 4947 openinghurricane shutters, impact glass, code-compliant windows4948or doors, or other types of code-complianthurricane protection 4949 pursuant to the documents of the common interest community 4950declaration of condominium. 4951 (a) However, if the maintenance, repair, and replacement of 4952 the hurricane protection isshutters, impact glass, code4953compliant windows or doors, or other types of code-compliant4954hurricane protection arethe responsibility of the unit owners 4955 pursuant to the documents of the common interest community 4956declaration of condominium, the cost of the installation of the 4957 hurricaneshutters, impact glass, code-compliant windows or4958doors, or other types of code-compliant hurricaneprotection is 4959 not a common expense and shall be charged individually to the 4960 unit owners based on the cost of installation of the hurricane 4961shutters, impact glass, code-compliant windows or doors, or4962other types of code-compliant hurricaneprotection appurtenant 4963 to the unit. 4964 (b) Notwithstanding s. 718.116(10)718.116(9), and 4965 regardless of whetheror notthe documents requiredeclaration4966requiresthe association or unit owners to maintain, repair, or 4967 replace hurricaneshutters, impact glass, code-compliant windows4968or doors, or other types of code-compliant hurricaneprotection, 4969 a unit owner who has previously installed hurricane protection 4970shuttersin accordance with s. 718.113(5)that comply with the4971current applicable building codeshall receive a creditwhen the4972shutters are installed; a unit owner who has previously4973installed impact glass or code-compliant windows or doors that4974comply with the current applicable building code shall receive a4975credit when the impact glass or code-compliant windows or doors4976are installed; and a unit owner who has installed other types of4977code-compliant hurricane protection that comply with the current4978applicable building code shall receive a credit when the same4979type of other code-compliant hurricane protection is installed,4980and the credit shall beequal to the pro rata portion of the 4981 assessed installation cost assigned to each unit. 4982 (c) However, such unit owner remains responsible for the 4983 pro rata share of expenses for hurricaneshutters, impact glass,4984code-compliant windows or doors, or other types of code4985compliant hurricaneprotection installed on common elements and 4986 association property by the board pursuant to s. 718.113(5) and 4987 remains responsible for a pro rata share of the expense of the 4988 replacement, operation, repair, and maintenance of such 4989shutters, impact glass, code-compliant windows or doors, or4990other types of code-compliant hurricaneprotection. 4991 (9) If common expenses are based on the size of the unit, 4992 any other charges that are considered common expenses but are 4993 not attributable to the size of the unit shall be allocated to 4994 the units on a per-unit basis and not prorated by any regular or 4995 special assessment allocation based on the unit’s size. The 4996 division shall by rule determine what expenses shall be included 4997 under this subsection. 4998(f) Common expenses include the costs of insurance acquired4999by the association under the authority of s. 718.111(11),5000including costs and contingent expenses required to participate5001in a self-insurance fund authorized and approved pursuant to s.5002624.462.5003(g) If any unpaid share of common expenses or assessments5004is extinguished by foreclosure of a superior lien or by a deed5005in lieu of foreclosure thereof, the unpaid share of common5006expenses or assessments are common expenses collectible from all5007the unit owners in the condominium in which the unit is located.5008 (10)(2)Except as otherwise provided by this chapter, funds 5009 for payment of the common expenses of a common interest 5010 communitycondominiumshall be collected by assessments against 5011 the units in that common interest communitycondominiumin the 5012 proportions or percentages provided in that common interest 5013 community’s documentscondominium’s declaration.In a5014residential condominium, or mixed-use condominium created after5015January 1, 1996,Each unit’s share of the common expenses of the 5016 common interest communitycondominiumand common surplus of the 5017 common interest communitycondominiumshall be the same as the 5018 unit’s appurtenant ownership interest in the common elements. 5019(3) Common surplus is owned by unit owners in the same5020shares as their ownership interest in the common elements.5021 (11)(4)(a) Funds for payment of the common expenses of a 5022 common interest communitycondominiumwithin a multi-common 5023 interest communitymulticondominiumshall be collected as 5024 provided in subsection (10)(2). Common expenses of a multi 5025 common interest communitymulticondominiumassociation shall be 5026 funded by assessments against all unit owners in the association 5027 in the proportion or percentage set forth in the declaration or 5028 documents as required by s. 718.104(6)(l),718.104(4)(h) ors. 5029 718.110(12), or subsections (1) and (2), as applicable. 5030 (b) In a multi-common interest communitymulticondominium5031 association, the total common surplus owned by a unit owner 5032 consists of that owner’s share of the common surplus of the 5033 association plus that owner’s share of the common surplus of the 5034 common interest communitycondominiumin which the owner’s unit 5035 is located, in the proportion or percentage set forth in the 5036 declaration or documents as required by s. 718.104(6)(l), 5037718.104(4)(h) ors. 718.110(12), or subsections (1) and (2), as 5038 applicable. 5039 Section 63. Section 718.116, Florida Statutes, is amended 5040 to read: 5041 718.116 Assessments; liability; lien and priority; 5042 interest; collection.— 5043 (1)(a) A unit owner, regardless of howhis or hertitle has 5044 been acquired, including by purchase at a foreclosure sale or by 5045 deed in lieu of foreclosure, is liable for all assessments that 5046whichcome due during ownershipwhile he or she is the unit5047owner. Additionally, a unit owner is jointly and severally 5048 liable with the previous owner for all unpaid assessments and 5049 costs that came due up to the time of transfer of title. This 5050 liability is without prejudice to any right the owner may have 5051 to recover from the previous owner the amounts paid by the 5052 owner. For the purposes of this paragraph, the term “previous 5053 owner” does not include an association that acquires title to a 5054 delinquent property through foreclosure or by deed in lieu of 5055 foreclosure. A present unit owner’s liability for unpaid 5056 assessments is limited to any unpaid assessments that accrued 5057 before the association acquired title to the delinquent property 5058 through foreclosure or by deed in lieu of foreclosure. 5059 (b)1.The person acquiring title shall pay the amount owed 5060 to the association within 30 days after transfer of title. 5061 Failure to pay the full amount when due entitles the association 5062 to record a claim of lien and proceed in the same manner as 5063 provided in this section for the collection of unpaid 5064 assessments. 5065 (c) Notwithstanding the provisions of chapter 48, the 5066 association is a proper party to intervene in any foreclosure 5067 proceeding to seek equitable relief.liability of a first5068mortgagee or its successor or assignees who acquire title to a5069unit by foreclosure or by deed in lieu of foreclosure for the5070unpaid assessments that became due before the mortgagee’s5071acquisition of title is limited to the lesser of:5072a. The unit’s unpaid common expenses and regular periodic5073assessments which accrued or came due during the 12 months5074immediately preceding the acquisition of title and for which5075payment in full has not been received by the association; or5076b. One percent of the original mortgage debt. The5077provisions of this paragraph apply only if the first mortgagee5078joined the association as a defendant in the foreclosure action.5079Joinder of the association is not required if, on the date the5080complaint is filed, the association was dissolved or did not5081maintain an office or agent for service of process at a location5082which was known to or reasonably discoverable by the mortgagee.5083 (2)2.An association, or its successor or assignee, that 5084 acquires title to a unit through the foreclosure of its lien for 5085 assessments is not liable for any unpaid assessments, late fees, 5086 interest, or reasonable attorneyattorney’sfees and costs that 5087 came due before the association’s acquisition of title in favor 5088 of any other association, as defined in s. 718.103(2)or s.5089720.301(9), which holds a superior lien interest on the unit. 5090 This subsectionsubparagraphis intended to clarify existing 5091 law. 5092(c) The person acquiring title shall pay the amount owed to5093the association within 30 days after transfer of title. Failure5094to pay the full amount when due shall entitle the association to5095record a claim of lien against the parcel and proceed in the5096same manner as provided in this section for the collection of5097unpaid assessments.5098(d) With respect to each timeshare unit, each owner of a5099timeshare estate therein is jointly and severally liable for the5100payment of all assessments and other charges levied against or5101with respect to that unit pursuant to the declaration or bylaws,5102except to the extent that the declaration or bylaws may provide5103to the contrary.5104(e) Notwithstanding the provisions of paragraph (b), a5105first mortgagee or its successor or assignees who acquire title5106to a condominium unit as a result of the foreclosure of the5107mortgage or by deed in lieu of foreclosure of the mortgage shall5108be exempt from liability for all unpaid assessments attributable5109to the parcel or chargeable to the previous owner which came due5110prior to acquisition of title if the first mortgage was recorded5111prior to April 1, 1992. If, however, the first mortgage was5112recorded on or after April 1, 1992, or on the date the mortgage5113was recorded, the declaration included language incorporating by5114reference future amendments to this chapter, the provisions of5115paragraph (b) shall apply.5116(f) The provisions of this subsection are intended to5117clarify existing law, and shall not be available in any case5118where the unpaid assessments sought to be recovered by the5119association are secured by a lien recorded prior to the5120recording of the mortgage. Notwithstanding the provisions of5121chapter 48, the association shall be a proper party to intervene5122in any foreclosure proceeding to seek equitable relief.5123(g) For purposes of this subsection, the term “successor or5124assignee” as used with respect to a first mortgagee includes5125only a subsequent holder of the first mortgage.5126 (3)(2)The liability for assessments may not be avoided by 5127 waiver of the use or enjoyment of any common element or by 5128 abandonment of the unit for which the assessments are made. 5129 (4)(3)Assessments and installments on assessments which 5130 are not paid when due bear interest at the rate provided in the 5131 documentsdeclaration, from the due date until paid. The rate 5132 may not exceed the rate allowed by law, and, if no rate is 5133 provided in the documentsdeclaration, interest accrues at the 5134 rate of 18 percent per year. If not prohibitedprovidedby the 5135 documentsdeclarationor bylaws, the association may, in5136addition to such interest,charge an administrative late fee in 5137 addition to such interest in an amount not to exceedof up to5138 the greater of $25 or 5 percent of eachdelinquentinstallment 5139 whenfor whichthe payment is late. Any payment received by an 5140 association must be applied first to any interest accrued by the 5141 association, then to any administrative late fee, then to any 5142 costs and reasonable costs for collection services for which the 5143 association has contracted against the unit owner, then to 5144 reasonable attorney fees incurred in collection, and then to the 5145 delinquent assessment. The foregoing is applicable 5146 notwithstanding s. 673.3111, any purported accord and 5147 satisfaction, or any restrictive endorsement, designation, or 5148 instruction placed on or accompanying a payment. The preceding 5149 sentence is intended to clarify existing law. A late fee is not 5150 subject to chapter 687 or s. 718.303(4). 5151 (5)(4)If the association is authorized by the declaration 5152 or bylaws to approve or disapprove a proposed lease of a unit, 5153 the grounds for disapproval may include, but are not limited to, 5154 a unit owner being delinquent in the payment of an assessment at 5155 the time approval is sought. 5156 (6)(5)(a)The association has a lien on each common 5157 interest communitycondominiumparcel to secure the payment of 5158 assessments. Except as otherwise provided in subsection (1) and 5159 as set forth below, the lien is effective from and shall relate 5160 back to the recording of the original documentsdeclaration of5161condominium, or, in the case of lien on a parcel located in a 5162 phase common interest communitycondominium, the last to occur 5163 of the recording of the original documentsdeclarationor 5164 amendment thereto creating the parcel.However, as to first5165mortgages of record, the lien is effective from and after5166recording of a claim of lien in the public records of the county5167in which the condominium parcel is located. Nothing in this5168subsection shall be construed to bestow upon any lien, mortgage,5169or certified judgment of record on April 1, 1992, including the5170lien for unpaid assessments created herein, a priority which, by5171law, the lien, mortgage, or judgment did not have before that5172date.5173 (a)(b)To be valid, a claim of lien must state the 5174 description of the common interest communitycondominiumparcel, 5175 the name of the record owner, the name and address of the 5176 association, the amount due, and the due dates. It must be 5177 executed and acknowledged by an officer or authorized agent of 5178 the association. The lien is not effective 1 year after the 5179 claim of lien was recorded unless, within that time, an action 5180 to enforce the lien is commenced. The 1-year period is 5181 automatically extended for any length of time during which the 5182 association is prevented from filing a foreclosure action by an 5183 automatic stay resulting from a bankruptcy petition filed by the 5184 parcel owner or any other person claiming an interest in the 5185 parcel. The claim of lien secures all unpaid assessments that 5186 are due and that may accrue after the claim of lien is recorded 5187 and beforethroughthe entry of a certificate of titlefinal5188judgment, as well as interest, administrative late fees, and all 5189 reasonable costs and attorney fees incurred by the association 5190 incident to the collection process. Upon payment in full, the 5191 person making the payment is entitled to a satisfaction of the 5192 lien. 5193 (b)(c)By recording a notice of contest of lienin5194substantially the following form, a unit owner or the unit 5195 owner’s agent or attorney may require the association to enforce 5196 a recorded claim of lien against his or her common interest 5197 communitycondominiumparcel.:5198NOTICE OF CONTEST OF LIEN5199TO: ...(Name and address of association)... You are5200notified that the undersigned contests the claim of lien filed5201by you on ...., ...(year)..., and recorded in Official Records5202Book .... at Page ...., of the public records of .... County,5203Florida, and that the time within which you may file suit to5204enforce your lien is limited to 90 days from the date of service5205of this notice. Executed this .... day of ...., ...(year)....5206Signed: ...(Owner or Attorney)...5207 After notice of contest of lien has been recorded, the clerk of 5208 the circuit court shall mail a copy of the recorded notice to 5209 the association by certified mail, return receipt requested, at 5210 the address shown in the claim of lien or most recent amendment 5211 to it and shall certify to the service on the face of the 5212 notice. Service is complete upon mailing. After service, the 5213 association has 90 days in which to file an action to enforce 5214 the lien; and, if the action is not filed within the 90-day 5215 period, the lien is void. However, the 90-day period shall be 5216 extended for any length of time during which the association is 5217 prevented from filing its action because of an automatic stay 5218 resulting from the filing of a bankruptcy petition by the unit 5219 owner or by any other person claiming an interest in the parcel. 5220 (c)(d)A release of lien must be filed within 10 days after 5221 the final payment.in substantially the following form:5222RELEASE OF LIEN5223The undersigned lienor, in consideration of the final payment in5224the amount of $...., hereby waives and releases its lien and5225right to claim a lien for unpaid assessments through ....,5226...(year)..., recorded in the Official Records Book .... at Page5227...., of the public records of .... County, Florida, for the5228following described real property:5229UNIT NO. .... OF ...(NAME OF CONDOMINIUM)..., A CONDOMINIUM AS5230SET FORTH IN THE DECLARATION OF CONDOMINIUM AND THE EXHIBITS5231ANNEXED THERETO AND FORMING A PART THEREOF, RECORDED IN OFFICIAL5232RECORDS BOOK ...., PAGE ...., OF THE PUBLIC RECORDS OF ....5233COUNTY, FLORIDA. THE ABOVE DESCRIPTION INCLUDES, BUT IS NOT5234LIMITED TO, ALL APPURTENANCES TO THE CONDOMINIUM UNIT ABOVE5235DESCRIBED, INCLUDING THE UNDIVIDED INTEREST IN THE COMMON5236ELEMENTS OF SAID CONDOMINIUM.5237...(Signature of Authorized Agent)......(Signature of5238Witness)...5239...(Print Name)......(Print Name)...5240...(Signature of Witness)...5241...(Print Name)...5242Sworn to (or affirmed) and subscribed before me this .... day of5243...., ...(year)..., by ...(name of person making statement)....5244...(Signature of Notary Public)...5245...(Print, type, or stamp commissioned name of Notary Public)...5246Personally Known.... OR Produced.... as identification.5247 (7)(6)(a)The association may bring an action in its name 5248 to foreclose a lien for assessments in the manner a mortgage of 5249 real property is foreclosed and may also bring an action to 5250 recover a money judgment, including in county court or small 5251 claims court, for the unpaid assessments without waiving any 5252 claim of lien. Any money judgment obtained shall continue to 5253 increase based on any additional assessments, fees, or costs 5254 reasonably expended or coming due until such judgment is paid in 5255 full. The association is entitled to recover its reasonable 5256 attorneyattorney’sfees incurred in either a lien foreclosure 5257 action or an action to recover a money judgment for unpaid 5258 assessments. 5259 (a)(b)No foreclosure judgment may be entered until at 5260 least 30 days after the association gives written notice to the 5261 unit owner of its intention to foreclose its lien to collect the 5262 unpaid assessments.The notice must be in substantially the5263following form:5264DELINQUENT ASSESSMENT5265This letter is to inform you a Claim of Lien has been filed5266against your property because you have not paid the ...(type of5267assessment)... assessment to ...(name of association).... The5268association intends to foreclose the lien and collect the unpaid5269amount within 30 days of this letter being provided to you.5270You owe the interest accruing from ...(month/year)... to the5271present. As of the date of this letter, the total amount due5272with interest is $..... All costs of any action and interest5273from this day forward will also be charged to your account.5274Any questions concerning this matter should be directed to5275...(insert name, addresses, and telephone numbers of association5276representative)....5277 If this notice is not given at least 30 days before the 5278 foreclosure action is filed, and if the unpaid assessments, 5279 including those coming due after the claim of lien is recorded, 5280 are paid before the entry of a final judgment of foreclosure, 5281 the association shall not recover attorneyattorney’sfees or 5282 costs. The notice must be given by delivery of a copy of it to 5283 the unit owner or by certified or registered mail, return 5284 receipt requested, addressed to the unit owner at his or her 5285 last known address; and, upon such mailing, the notice shall be 5286 deemed to have been given, and the court shall proceed with the 5287 foreclosure action and may award attorneyattorney’sfees and 5288 costs as permitted by law. The notice requirements of this 5289 subsection are satisfied if the unit owner records a notice of 5290 contest of lien as provided in subsection (6)(5). The notice 5291 requirements of this subsection do not apply if an action to 5292 foreclose a mortgage on the common interest community 5293condominiumunit is pending before any court; if the rights of 5294 the association would be affected by such foreclosure; and if 5295 actual, constructive, or substitute service of process has been 5296 made on the unit owner. 5297 (b)(c)If the unit owner remains in possession of the unit 5298 after a foreclosure judgment has been entered, the court, in its 5299 discretion, may require the unit owner to pay a reasonable 5300 rental for the unit. If the unit is rented or leased during the 5301 pendency of the foreclosure action, the association is entitled 5302 to the appointment of a receiver to collect the rent. The 5303 expenses of the receiver shall be paid by the party thatwhich5304 does not prevail in the foreclosure action. 5305 (c)(d)The association mayhas the power topurchase the 5306 common interest communitycondominiumparcel at the foreclosure 5307 sale and to hold, lease, mortgage, or convey it. 5308 (8)(7)Afirstmortgagee acquiring title to a common 5309 interest communitycondominiumparcel as a result of 5310 foreclosure, or a deed in lieu of foreclosure, may not, during 5311 the period of its ownership of such parcel, whether or not such 5312 parcel is unoccupied, be excused from the payment of some or all 5313 of the common expenses coming due during the period of such 5314 ownership. It is the public policy of the state to prohibit the 5315 inclusion or enforcement of superiority of lien clauses in 5316 mortgage contracts or declarations for common interest 5317 communities and, therefore, such clauses are void. This 5318 subsection applies retroactively and is remedial in nature. 5319 (9)(8)Within 15 days after receiving a written request 5320thereforfrom a unit owner or his or her designee, or a unit 5321 mortgagee or his or her designee, the association or its agent 5322 shall provide a certificate signed by an officer or agent of the 5323 association stating all assessments and other moneys owed to the 5324 association by the unit owner with respect to the common 5325 interest communitycondominiumparcel. 5326 (a) Any person other than the owner who relies upon such 5327 certificate shall be protected thereby. 5328 (b) A summary proceeding pursuant to s. 51.011 may be 5329 brought to compel compliance with this subsection, and in any 5330 such action the prevailing party is entitled to recover 5331 reasonable attorneyattorney’sfees. 5332 (c) Notwithstanding any limitation on transfer fees 5333 contained in s. 718.112(2)(j)718.112(2)(i), the association or 5334 its authorized agent may charge a reasonable fee or the cost of 5335 attorney fees incurred for the preparation of the certificate. 5336 The amount of the fee must be included on the certificate. 5337 (d) The authority to charge a fee for the certificate shall 5338 be established by a written resolution adopted by the board or 5339 provided by a written management, bookkeeping, or retainer 5340 agreementmaintenance contractand is payable upon the 5341 preparation of the certificate. If the certificate is requested 5342 in conjunction with the sale or mortgage of a unit, the contract 5343 or mortgage application must state that the fee is not 5344 refundablebut the closing does not occur and no later than 305345days after the closing date for which the certificate was sought5346the preparer receives a written request, accompanied by5347reasonable documentation, that the sale did not occur from a5348payor that is not the unit owner, the fee shall be refunded to5349that payor within 30 days after receipt of the request.The5350refund is the obligation of the unit owner, and the association5351may collect it from that owner in the same manner as an5352assessment as provided in this section.5353 (10)(9)(a) A unit owner may not be excused from payment of 5354 the unit owner’s share of common expenses unless all other unit 5355 owners are likewise proportionately excluded from payment, 5356 except as provided in subsection (1) and in the following cases: 5357 1. If authorized by the documentsdeclaration, a developer 5358 who is offering units for sale may elect to be excused from 5359 payment of assessments against those unsold units for a stated 5360 period of time after the documents aredeclaration isrecorded. 5361 However, the developer must pay common expenses incurred during 5362 thesuchperiod which exceed regular periodic assessments 5363 against other unit owners in the same common interest community 5364condominium. The stated period must terminate no later than the 5365 first day of the fourth calendar month following the month in 5366 which the first closing occurs of a purchase contract for a unit 5367 in that common interest communitycondominium. If a developer 5368 controlled association has maintainedallinsurance coverage 5369 required by s. 718.111(11)(a), common expenses incurred during 5370 the stated period resulting from a natural disaster or an act of 5371 God occurring during the stated period, which are not covered by 5372 proceeds from insurance maintained by the association, may be 5373 assessed against all unit owners owning units on the date of 5374 such natural disaster or act of God, and their respective 5375 successors and assigns, including the developer with respect to 5376 units owned by the developer. In the event of such an 5377 assessment, all units shall be assessed in accordance with s. 5378 718.115(10)718.115(2). 5379 2. A developer who owns common interest community 5380condominiumunits, and who is offering the units for sale, may 5381 be excused from payment of assessments against those unsold 5382 units for the period of time the developer has guaranteed to all 5383 buyerspurchasersor other unit owners in the same common 5384 interest communitycondominiumthat assessments will not exceed 5385 a stated dollar amount and that the developer will pay any 5386 common expenses that exceed the guaranteed amount. Such 5387 guarantee may be stated in the purchase contract, documents 5388declaration, prospectus, or written agreement between the 5389 developer and a majority of the unit owners other than the 5390 developer and may provide that, after the initial guarantee 5391 period, the developer may extend the guarantee for one or more 5392 stated periods. If a developer-controlled association has 5393 maintained all insurance coverage required by s. 718.111(11)(a), 5394 common expenses incurred during a guarantee period, as a result 5395 of a natural disaster or an act of God occurring during the same 5396 guarantee period, which are not covered by the proceeds from 5397 such insurance, may be assessed against all unit owners owning 5398 units on the date of such natural disaster or act of God, and 5399 their successors and assigns, including the developer with 5400 respect to units owned by the developer. Any such assessment 5401 shall be in accordance with s. 718.115(10) or (11)718.115(2)or5402(4), as applicable. 5403 (b) If the purchase contract, documentsdeclaration, 5404 prospectus, or written agreement between the developer and a 5405 majority of unit owners other than the developer provides for 5406 the developer to be excused from payment of assessments under 5407 paragraph (a), only regular periodic assessments for common 5408 expenses as provided for in the documentsdeclarationand 5409 prospectus and disclosed in the estimated operating budget shall 5410 be used for payment of common expenses during any period in 5411 which the developer is excused. Accordingly, no funds thatwhich5412 are receivable from unit purchasers or unit owners and payable 5413 to the association, including capital contributions or startup 5414 funds collected from unit buyerspurchasersat closing, may be 5415 used for payment of such common expenses. 5416 (c) If a developer of a multi-common interest community 5417multicondominiumis excused from payment of assessments under 5418 paragraph (a), the developer’s financial obligation to the 5419 multi-common interest communitymulticondominiumassociation 5420 during any period in which the developer is excused from payment 5421 of assessments is as follows: 5422 1. The developer shall pay the common expenses of a common 5423 interest communitycondominiumaffected by a guarantee, 5424 including the funding of reserves as provided in the adopted 5425 annual budget of that common interest communitycondominium, 5426 which exceed the regular periodic assessments at the guaranteed 5427 level against all other unit owners within that common interest 5428 communitycondominium. 5429 2. The developer shall pay the common expenses of a multi 5430 common interest communitymulticondominiumassociation, 5431 including the funding of reserves as provided in the adopted 5432 annual budget of the association, which are allocated to units 5433 within a common interest communitycondominiumaffected by a 5434 guarantee and which exceed the regular periodic assessments 5435 against all other unit owners within that common interest 5436 communitycondominium. 5437 (11)(10)The specific purpose or purposes of any special 5438 assessment, including any contingent special assessment levied 5439 in conjunction with the purchase of an insurance policy 5440 authorized by s. 718.111(11), approved in accordance with the 5441 common interest communitycondominiumdocuments shall be set 5442 forth in a written notice of such assessment sent or delivered 5443 to each unit owner. The funds collected pursuant to a special 5444 assessment shall be used only for the specific purpose or 5445 purposes set forth in such notice. However, upon completion of 5446 such specific purpose or purposes, any excess funds will be 5447 considered common surplus, and may, at the discretion of the 5448 board, either be returned to the unit owners or applied as a 5449 credit toward future assessments. 5450 (12)(11)(a) If the unit is occupied by a tenant and the 5451 unit owner is delinquent in paying any monetary obligation due 5452 to the association, the association may make a written demand 5453 that the tenant pay to the association the subsequent rental 5454 payments and continue to make such payments until all monetary 5455 obligations of the unit owner related to the unit have been paid 5456 in full to the association. The tenant must pay the monetary 5457 obligations to the association until the association releases 5458 the tenant or the tenant discontinues tenancy in the unit. 5459 1. The association must provide the tenant a notice, by 5460 hand delivery or United States mail, in substantially the 5461 following form: 5462 5463 Pursuant to section 718.116(12)718.116(11), 5464 Florida Statutes, the association demands that you pay 5465 your rent directly to the common interest community 5466condominiumassociation and continue doing so until 5467 the association notifies you otherwise. 5468 Payment due the common interest community 5469condominiumassociation may be in the same form as you 5470 paid your landlord and must be sent by United States 5471 mail or hand delivery to ...(full address)..., payable 5472 to ...(name).... 5473 Your obligation to pay your rent to the 5474 association begins immediately, unless you have 5475 already paid rent to your landlord for the current 5476 period before receiving this notice. In that case, you 5477 must provide the association written proof of your 5478 payment within 14 days after receiving this notice and 5479 your obligation to pay rent to the association would 5480 then begin with the next rental period. 5481 Pursuant to section 718.116(12)718.116(11), 5482 Florida Statutes, your payment of rent to the 5483 association gives you complete immunity from any claim 5484 for the rent by your landlord for all amounts timely 5485 paid to the association. 5486 5487 2. The association must mail written notice to the unit 5488 owner of the association’s demand that the tenant make payments 5489 to the association. 5490 3. The association shall, upon request, provide the tenant 5491 with written receipts for payments made. 5492 4. A tenant is immune from any claim by the landlord or 5493 unit owner related to the rent timely paid to the association 5494 after the association has made written demand. 5495 (b) If the tenant paid rent to the landlord or unit owner 5496 for a given rental period before receiving the demand from the 5497 association and provides written evidence to the association of 5498 having paid the rent within 14 days after receiving the demand, 5499 the tenant shall begin making rental payments to the association 5500 for the following rental period and shall continue making rental 5501 payments to the association to be credited against the monetary 5502 obligations of the unit owner until the association releases the 5503 tenant or the tenant discontinues tenancy in the unit. 5504 (c) The liability of the tenant may not exceed the amount 5505 due from the tenant to the tenant’s landlord. The tenant’s 5506 landlord shall provide the tenant a credit against rents due to 5507 the landlord in the amount of moneys paid to the association. 5508 (d) The association may issue notice under s. 83.56 and sue 5509 for eviction under ss. 83.59-83.625 as if the association were a 5510 landlord under part II of chapter 83 if the tenant fails to pay 5511 a required payment to the association after written demand has 5512 been made to the tenant. However, the association is not 5513 otherwise considered a landlord under chapter 83 and 5514 specifically has no obligations under s. 83.51. 5515 (e) The tenant does not, by virtue of payment of monetary 5516 obligations to the association, have any of the rights of a unit 5517 owner to vote in any election or to examine the books and 5518 records of the association. 5519 (f) A court may supersede the effect of this subsection by 5520 appointing a receiver. 5521 Section 64. Section 718.117, Florida Statutes, is amended 5522 to read: 5523 718.117 Termination of common interest community 5524condominium.— 5525 (1) LEGISLATIVE FINDINGS.—The Legislature finds that common 5526 interest communitiescondominiumsare created as authorized by 5527 statute. In circumstances that may create economic waste, areas 5528 of disrepair, or obsolescence of a common interest community 5529condominiumproperty for its intended use and thereby lower 5530 property tax values, the Legislature further finds that it is 5531 the public policy of this state to provide by statute a method 5532 to preserve the value of the property interests and the rights 5533 of alienation thereof that owners have in the common interest 5534 communitycondominiumproperty before and after termination. The 5535 Legislature further finds that it is contrary to the public 5536 policy of this state to require the continued operation of a 5537 common interest communitycondominiumwhen to do so constitutes 5538 economic waste or when the ability to do so is made impossible 5539 by law or regulation. This section applies to all common 5540 interest communitiescondominiumsin this state in existence on 5541 or after July 1, 2007. 5542 (2) TERMINATION BECAUSE OF ECONOMIC WASTE OR 5543 IMPOSSIBILITY.— 5544 (a) Notwithstanding any provision in the declaration, the 5545 common interest communitycondominiumform of ownership of a 5546 property may be terminated by a plan of termination approved by 5547 the lesser of the lowest percentage of voting interests 5548 necessary to amend the declaration or as otherwise provided in 5549 the declaration for approval of termination if: 5550 1. The total estimated cost of construction or repairs 5551 necessary to construct the intended improvements or restore the 5552 improvements to their former condition or bring them into 5553 compliance with applicable laws or regulations exceeds the 5554 combined fair market value of the units in the common interest 5555 communitycondominiumafter completion of the construction or 5556 repairs; or 5557 2. It becomes impossible to operate or reconstruct a common 5558 interest communitycondominiumto its prior physical 5559 configuration because of land use laws or regulations. 5560 (b) Notwithstanding paragraph (a), a common interest 5561 communitycondominiumin which 75 percent or more of the units 5562 are timeshare units may be terminated only pursuant to a plan of 5563 termination approved by 80 percent of the total voting interests 5564 of the association and the holders of 80 percent of the original 5565 principal amount of outstanding recorded mortgage liens of 5566 timeshare estates in the common interest communitycondominium, 5567 unless the declaration provides for a lower voting percentage. 5568 (c) Notwithstanding paragraph (a), a common interest 5569 communitycondominiumthat includes units and timeshare estates 5570 where the improvements have been totally destroyed or demolished 5571 may be terminated pursuant to a plan of termination proposed by 5572 a unit owner upon the filing of a petition in court seeking 5573 equitable relief. Within 10 days after the filing of a petition 5574 as provided in this paragraph and in lieu of the requirements of 5575 paragraph (14)(a)(15)(a), the petitioner shall record the 5576 proposed plan of termination and mail a copy of the proposed 5577 plan and a copy of the petition to: 5578 1. If the association has not been dissolved as a matter of 5579 law, each member of the board of directors of the association 5580 identified in the most recent annual report filed with the 5581 Department of State and the registered agent of the association; 5582 2. The managing entity as defined in s. 721.05(22); 5583 3. Each unit owner and each timeshare estate owner at the 5584 address reflected in the official records of the association, 5585 or, if the association records cannot be obtained by the 5586 petitioner, each unit owner and each timeshare estate owner at 5587 the address listed in the office of the tax collector for tax 5588 notices; and 5589 4. Each holder of a recorded mortgage lien affecting a unit 5590 or timeshare estate at the address appearing on the recorded 5591 mortgage or any recorded assignment thereof. 5592 5593 The association, if it has not been dissolved as a matter of 5594 law, acting as class representative, or the managing entity as 5595 defined in s. 721.05(22), any unit owner, any timeshare estate 5596 owner, or any holder of a recorded mortgage lien affecting a 5597 unit or timeshare estate may intervene in the proceedings to 5598 contest the proposed plan of termination brought pursuant to 5599 this paragraph. The provisions of subsection (8)(9), to the 5600 extent inconsistent with this paragraph, and subsection (15) 5601(16)are not applicable to a party contesting a plan of 5602 termination under this paragraph. If no party intervenes to 5603 contest the proposed plan within 45 days after the filing of the 5604 petition, the petitioner may move the court to enter a final 5605 judgment to authorize implementation of the plan of termination. 5606 If a party timely intervenes to contest the proposed plan, the 5607 plan may not be implemented until a final judgment has been 5608 entered by the court finding that the proposed plan of 5609 termination is fair and reasonable and authorizing 5610 implementation of the plan. 5611(3) OPTIONAL TERMINATION.—Except as provided in subsection5612(2) or unless the declaration provides for a lower percentage,5613the condominium form of ownership may be terminated for all or a5614portion of the condominium property pursuant to a plan of5615termination approved by at least 80 percent of the total voting5616interests of the condominium. If 10 percent or more of the total5617voting interests of the condominium have rejected the plan of5618termination by negative vote or by providing written objections,5619the plan of termination may not proceed.5620(a)The termination of the condominium form of ownership is5621subject to the following conditions:56221.The total voting interests of the condominium must5623include all voting interests for the purpose of considering a5624plan of termination. A voting interest of the condominium may5625not be suspended for any reason when voting on termination5626pursuant to this subsection.56272.If 10 percent or more of the total voting interests of5628the condominium reject a plan of termination, a subsequent plan5629of termination pursuant to this subsection may not be considered5630for 18 months after the date of the rejection.5631(b)This subsection does not apply to any condominium5632created pursuant to part VI of this chapter until 5 years after5633the recording of the declaration of condominium, unless there is5634no objection to the plan of termination.5635(c)For purposes of this subsection, the term “bulk owner”5636means the single holder of such voting interests or an owner5637together with a related entity or entities that would be5638considered an insider, as defined in s. 726.102, holding such5639voting interests. If the condominium association is a5640residential association proposed for termination pursuant to5641this section and, at the time of recording the plan of5642termination, at least 80 percent of the total voting interests5643are owned by a bulk owner, the plan of termination is subject to5644the following conditions and limitations:56451.If the former condominium units are offered for lease to5646the public after the termination, each unit owner in occupancy5647immediately before the date of recording of the plan of5648termination may lease his or her former unit and remain in5649possession of the unit for 12 months after the effective date of5650the termination on the same terms as similar unit types within5651the property are being offered to the public. In order to obtain5652a lease and exercise the right to retain exclusive possession of5653the unit owner’s former unit, the unit owner must make a written5654request to the termination trustee to rent the former unit5655within 90 days after the date the plan of termination is5656recorded. Any unit owner who fails to timely make such written5657request and sign a lease within 15 days after being presented5658with a lease is deemed to have waived his or her right to retain5659possession of his or her former unit and shall be required to5660vacate the former unit upon the effective date of the5661termination, unless otherwise provided in the plan of5662termination.56632.Any former unit owner whose unit was granted homestead5664exemption status by the applicable county property appraiser as5665of the date of the recording of the plan of termination shall be5666paid a relocation payment in an amount equal to 1 percent of the5667termination proceeds allocated to the owner’s former unit. Any5668relocation payment payable under this subparagraph shall be paid5669by the single entity or related entities owning at least 805670percent of the total voting interests. Such relocation payment5671shall be in addition to the termination proceeds for such5672owner’s former unit and shall be paid no later than 10 days5673after the former unit owner vacates his or her former unit.56743.For their respective units, all unit owners other than5675the bulk owner must be compensated at least 100 percent of the5676fair market value of their units. The fair market value shall be5677determined as of a date that is no earlier than 90 days before5678the date that the plan of termination is recorded and shall be5679determined by an independent appraiser selected by the5680termination trustee. For an original purchaser from the5681developer who rejects the plan of termination and whose unit was5682granted homestead exemption status by the applicable county5683property appraiser, or was an owner-occupied operating business,5684as of the date that the plan of termination is recorded and who5685is current in payment of both assessments and other monetary5686obligations to the association and any mortgage encumbering the5687unit as of the date the plan of termination is recorded, the5688fair market value for the unit owner rejecting the plan shall be5689at least the original purchase price paid for the unit. For5690purposes of this subparagraph, the term “fair market value”5691means the price of a unit that a seller is willing to accept and5692a buyer is willing to pay on the open market in an arms-length5693transaction based on similar units sold in other condominiums,5694including units sold in bulk purchases but excluding units sold5695at wholesale or distressed prices. The purchase price of units5696acquired in bulk following a bankruptcy or foreclosure shall not5697be considered for purposes of determining fair market value.56984.The plan of termination must provide for payment of a5699first mortgage encumbering a unit to the extent necessary to5700satisfy the lien, but the payment may not exceed the unit’s5701share of the proceeds of termination under the plan. If the unit5702owner is current in payment of both assessments and other5703monetary obligations to the association and any mortgage5704encumbering the unit as of the date the plan of termination is5705recorded, the receipt by the holder of the unit’s share of the5706proceeds of termination under the plan or the outstanding5707balance of the mortgage, whichever is less, shall be deemed to5708have satisfied the first mortgage in full.57095.Before a plan of termination is presented to the unit5710owners for consideration pursuant to this paragraph, the plan5711must include the following written disclosures in a sworn5712statement:5713a.The identity of any person or entity that owns or5714controls 50 percent or more of the units in the condominium and,5715if the units are owned by an artificial entity or entities, a5716disclosure of the natural person or persons who, directly or5717indirectly, manage or control the entity or entities and the5718natural person or persons who, directly or indirectly, own or5719control 20 percent or more of the artificial entity or entities5720that constitute the bulk owner.5721b.The units acquired by any bulk owner, the date each unit5722was acquired, and the total amount of compensation paid to each5723prior unit owner by the bulk owner, regardless of whether5724attributed to the purchase price of the unit.5725c.The relationship of any board member to the bulk owner5726or any person or entity affiliated with the bulk owner subject5727to disclosure pursuant to this subparagraph.5728(d)If the members of the board of administration are5729elected by the bulk owner, unit owners other than the bulk owner5730may elect at least one-third of the members of the board of5731administration before the approval of any plan of termination.5732 (3)(4)EXEMPTION.—A plan of termination is not an amendment 5733 subject to s. 718.110(4). In a partial termination, a plan of 5734 termination is not an amendment subject to s. 718.110(4) if the 5735 ownership share of the common elements of a surviving unit in 5736 the common interest communitycondominiumremains in the same 5737 proportion to the surviving units as it was before the partial 5738 termination. 5739 (4)(5)MORTGAGE LIENHOLDERS.—Notwithstanding any provision 5740 to the contrary in the declaration or this chapter, approval of 5741 a plan of termination by the holder of a recorded mortgage lien 5742 affecting a common interest communitycondominiumparcel in 5743 which fewer than 75 percent of the units are timeshare units is 5744 not required unless the plan of termination will result in less 5745 than the full satisfaction of the mortgage lien affecting the 5746 common interest communitycondominiumparcel. If such approval 5747 is required and not given, a holder of a recorded mortgage lien 5748 who objects to the plan of termination may contest the plan as 5749 provided in subsection (15)(16). At the time of sale, the lien 5750 shall be transferred to the proportionate share of the proceeds 5751 assigned to the common interest communitycondominiumparcel in 5752 the plan of termination or as subsequently modified by the 5753 court. 5754 (5)(6)POWERS IN CONNECTION WITH TERMINATION.—The approval 5755 of the plan of termination does not terminate the association. 5756 It shall continue in existence following approval of the plan of 5757 termination with all powers and duties it had before approval of 5758 the plan. Notwithstanding any provision to the contrary in the 5759 declaration or bylaws, after approval of the plan the board 5760 shall: 5761 (a) Employ directors, agents, attorneys, and other 5762 professionals to liquidate or conclude its affairs. 5763 (b) Conduct the affairs of the association as necessary for 5764 the liquidation or termination. 5765 (c) Carry out contracts and collect, pay, and settle debts 5766 and claims for and against the association. 5767 (d) Defend suits brought against the association. 5768 (e) Sue in the name of the association for all sums due or 5769 owed to the association or to recover any of its property. 5770 (f) Perform any act necessary to maintain, repair, or 5771 demolish unsafe or uninhabitable improvements or other common 5772 interest communitycondominiumproperty in compliance with 5773 applicable codes. 5774 (g) Sell at public or private sale or exchange, convey, or 5775 otherwise dispose of assets of the association for an amount 5776 deemed to be in the best interests of the association, and 5777 execute bills of sale and deeds of conveyance in the name of the 5778 association. 5779 (h) Collect and receive rents, profits, accounts 5780 receivable, income, maintenance fees, special assessments, or 5781 insurance proceeds for the association. 5782 (i) Contract and do anything in the name of the association 5783 which is proper or convenient to terminate the affairs of the 5784 association. 5785 (6)(7)NATURAL DISASTERS.— 5786 (a) If, after a natural disaster, the identity of the 5787 directors or their right to hold office is in doubt, if they are 5788 deceased or unable to act, if they fail or refuse to act, or if 5789 they cannot be located, any interested person may petition the 5790 circuit court to determine the identity of the directors or, if 5791 found to be in the best interests of the unit owners, to appoint 5792 a receiver to conclude the affairs of the association after a 5793 hearing following notice to such persons as the court directs. 5794 Lienholders shall be given notice of the petition and have the 5795 right to propose persons for the consideration by the court as 5796 receiver. If a receiver is appointed, the court shall direct the 5797 receiver to provide to all unit owners written notice of his or 5798 her appointment as receiver. Such notice shall be mailed, 5799 electronically transmitted, or hand delivered within 10 days 5800 after the appointment. Notice by mail to a unit owner shall be 5801 sent to the address used by the county property appraiser for 5802 notice to the unit owner. 5803 (b) The receiver shall have all powers given to the board 5804 pursuant to the declaration, bylaws, and subsection (5)(6), and 5805 any other powers that are necessary to conclude the affairs of 5806 the association and are set forth in the order of appointment. 5807 The appointment of the receiver is subject to the bonding 5808 requirements of such order. The order shall also provide for the 5809 payment of a reasonable fee to the receiver from the sources 5810 identified in the order, which may include rents, profits, 5811 incomes, maintenance fees, or special assessments collected from 5812 the common interest communitycondominiumproperty. 5813 (7)(8)REPORTS AND REPLACEMENT OF RECEIVER.— 5814 (a) The association, receiver, or termination trustee shall 5815 prepare reports each quarter following the approval of the plan 5816 of termination setting forth the status and progress of the 5817 termination, costs and fees incurred, the date the termination 5818 is expected to be completed, and the current financial condition 5819 of the association, receivership, or trusteeship and provide 5820 copies of the report by regular mail to the unit owners and 5821 lienors at the mailing address provided to the association by 5822 the unit owners and the lienors. 5823 (b) The unit owners of an association in termination may 5824 recall or remove members of the board of administration with or 5825 without cause at any time as provided in s. 718.112(2)(k) 5826718.112(2)(j). 5827 (c) The lienors of an association in termination 5828 representing at least 50 percent of the outstanding amount of 5829 liens may petition the court for the appointment of a 5830 termination trustee, which shall be granted upon good cause 5831 shown. 5832 (8)(9)PLAN OF TERMINATION.—The plan of termination must be 5833 a written document executed in the same manner as a deed by unit 5834 owners having the requisite percentage of voting interests to 5835 approve the plan and by the termination trustee. A copy of the 5836 proposed plan of termination shall be given to all unit owners, 5837 in the same manner as for notice of an annual meeting, at least 5838 14 days prior to the meeting at which the plan of termination is 5839 to be voted upon or prior to or simultaneously with the 5840 distribution of the solicitation seeking execution of the plan 5841 of termination or written consent to or joinder in the plan. A 5842 unit owner may document assent to the plan by executing the plan 5843 or by consent to or joinder in the plan in the manner of a deed. 5844 A plan of termination and the consents or joinders of unit 5845 owners must be recorded in the public records of each county in 5846 which any portion of the common interest communitycondominium5847 is located. The plan is effective only upon recordation or at a 5848 later date specified in the plan. If the plan of termination 5849 fails to receive the required approval, the plan shall not be 5850 recorded and a new attempt to terminate the common interest 5851 communitycondominiummay not be proposed at a meeting or by 5852 solicitation for joinder and consent for 18 months after the 5853 date that such failed plan of termination was first given to all 5854 unit owners in the manner as provided in this subsection. 5855 (a) If the plan of termination is voted on at a meeting of 5856 the unit owners called in accordance with this subsection, any 5857 unit owner desiring to reject the plan must do so by either 5858 voting to reject the plan in person or by proxy, or by 5859 delivering a written rejection to the association before or at 5860 the meeting. 5861 (b) If the plan of termination is approved by written 5862 consent or joinder without a meeting of the unit owners, any 5863 unit owner desiring to object to the plan must deliver a written 5864 objection to the association within 20 days after the date that 5865 the association notifies the nonconsenting owners, in the manner 5866 provided in paragraph (14)(a)(15)(a), that the plan of 5867 termination has been approved by written action in lieu of a 5868 unit owner meeting. 5869 (9)(10)PLAN OF TERMINATION; REQUIRED PROVISIONS.—The plan 5870 of termination must specify: 5871 (a) The name, address, and powers of the termination 5872 trustee. 5873 (b) A date after which the plan of termination is void if 5874 it has not been recorded. 5875 (c) The interests of the respective unit owners in the 5876 association property, common surplus, and other assets of the 5877 association, which shall be the same as the respective interests 5878 of the unit owners in the common elements immediately before the 5879 termination, unless otherwise provided in the declaration. 5880 (d) The interests of the respective unit owners in any 5881 proceeds from the sale of the common interest community 5882condominiumproperty. The plan of termination may apportion 5883 those proceeds pursuant to any method prescribed in subsection 5884 (11)(12). If, pursuant to the plan of termination, common 5885 interest communitycondominiumproperty or real property owned 5886 by the association is to be sold following termination, the plan 5887 must provide for the sale and may establish any minimum sale 5888 terms. 5889 (e) Any interests of the respective unit owners in 5890 insurance proceeds or condemnation proceeds that are not used 5891 for repair or reconstruction at the time of termination. Unless 5892 the declaration expressly addresses the distribution of 5893 insurance proceeds or condemnation proceeds, the plan of 5894 termination may apportion those proceeds pursuant to any method 5895 prescribed in subsection (11)(12). 5896 (10)(11)PLAN OF TERMINATION; OPTIONAL PROVISIONS; 5897 CONDITIONAL TERMINATION; WITHDRAWAL; ERRORS.— 5898 (a) Unless the plan of termination expressly authorizes a 5899 unit owner or other person to retain the exclusive right to 5900 possess that portion of the real estate which formerly 5901 constituted the unit after termination or to use the common 5902 elements of the condominium after termination, all such rights 5903 in the unit and common elements automatically terminate on the 5904 effective date of termination. Unless the plan expressly 5905 provides otherwise, all leases, occupancy agreements, subleases, 5906 licenses, or other agreements for the use or occupancy of any 5907 unit or common elements of the condominium automatically 5908 terminate on the effective date of termination. If the plan 5909 expressly authorizes a unit owner or other person to retain 5910 exclusive right of possession for that portion of the real 5911 estate that formerly constituted the unit or to use the common 5912 elements of the condominium after termination, the plan must 5913 specify the terms and conditions of possession. In a partial 5914 termination, the plan of termination as specified in subsection 5915 (9)(10)must also identify the units that survive the partial 5916 termination and provide that such units remain in the common 5917 interest communitycondominiumform of ownership pursuant to an 5918 amendment to the documentsdeclarationof the common interest 5919 communitycondominiumor an amended and restated declaration. In 5920 a partial termination, title to the surviving units and common 5921 elements that remain part of the common interest community 5922condominiumproperty specified in the plan of termination remain 5923 vested in the ownership shown in the public records and do not 5924 vest in the termination trustee. 5925 (b) In a conditional termination, the plan must specify the 5926 conditions for termination. A conditional plan does not vest 5927 title in the termination trustee until the plan and a 5928 certificate executed by the association with the formalities of 5929 a deed, confirming that the conditions in the conditional plan 5930 have been satisfied or waived by the requisite percentage of the 5931 voting interests, have been recorded. In a partial termination, 5932 the plan does not vest title to the surviving units or common 5933 elements that remain part of the common interest community 5934condominiumproperty in the termination trustee. 5935 (c) Unless otherwise provided in the plan of termination, 5936 at any time before the sale of the condominium property, a plan 5937 may be withdrawn or modified by the affirmative vote or written 5938 agreement of at least the same percentage of voting interests in 5939 the condominium as that which was required for the initial 5940 approval of the plan. 5941 (d) Upon the discovery of a scrivener’s error in the plan 5942 of termination, the termination trustee may record an amended 5943 plan or an amendment to the plan for the purpose of correcting 5944 the error, and the amended plan or amendment to the plan must be 5945 executed by the termination trustee in the same manner as 5946 required for the execution of a deed. 5947 (11)(12)ALLOCATION OF PROCEEDS OF SALE OF COMMON INTEREST 5948 COMMUNITYCONDOMINIUMPROPERTY.— 5949 (a) Unless the declaration expressly provides for the 5950 allocation of the proceeds of sale of common interest community 5951condominiumproperty, the plan of termination may require 5952 separate valuations for the common elements. However, in the 5953 absence of such provision, it is presumed that the common 5954 elements have no independent value but rather that their value 5955 is incorporated into the valuation of the units. In a partial 5956 termination, the aggregate values of the units and common 5957 elements that are being terminated must be separately 5958 determined, and the plan of termination must specify the 5959 allocation of the proceeds of sale for the units and common 5960 elements being terminated. 5961 (b) The portion of proceeds allocated to the units shall be 5962 apportioned among the individual units. The apportionment is 5963 deemed fair and reasonable if it is determined by any of the 5964 following methods: 5965 1. The respective values of the units based on the fair 5966 market values of the units immediately before the termination, 5967 as determined by one or more independent appraisers selected by 5968 the association or termination trustee; 5969 2. The respective values of the units based on the most 5970 recent market value of the units before the termination, as 5971 provided in the county property appraiser’s records; or 5972 3. The respective interests of the units in the common 5973 elements specified in the declaration immediately before the 5974 termination. 5975 (c) The methods of apportionment in paragraph (b) do not 5976 prohibit any other method of apportioning the proceeds of sale 5977 allocated to the units or any other method of valuing the units 5978 agreed upon in the plan of termination. Any portion of the 5979 proceeds separately allocated to the common elements shall be 5980 apportioned among the units based upon their respective 5981 interests in the common elements as provided in the declaration. 5982 (d) Liens that encumber a unit shall, unless otherwise 5983 provided in the plan of termination, be transferred to the 5984 proceeds of sale of the common interest communitycondominium5985 property and the proceeds of sale or other distribution of 5986 association property, common surplus, or other association 5987 assets attributable to such unit in their same priority. In a 5988 partial termination, liens that encumber a unit being terminated 5989 must be transferred to the proceeds of sale of that portion of 5990 the common interest communitycondominiumproperty being 5991 terminated which are attributable to such unit. The proceeds of 5992 any sale of common interest communitycondominiumproperty 5993 pursuant to a plan of termination may not be deemed to be common 5994 surplus or association property. The holder of a lien that 5995 encumbers a unit at the time of recording a plan must, within 30 5996 days after the written request from the termination trustee, 5997 deliver a statement to the termination trustee confirming the 5998 outstanding amount of any obligations of the unit owner secured 5999 by the lien. 6000 (e) The termination trustee may setoff against, and reduce 6001 the share of, the termination proceeds allocated to a unit by 6002 the following amounts, which may include attorney fees and 6003 costs: 6004 1. All unpaid assessments, taxes, late fees, interest, 6005 fines, charges, and other amounts due and owing to the 6006 association associated with the unit, its owner, or the owner’s 6007 family members, guests, tenants, occupants, licensees, invitees, 6008 or other persons. 6009 2. All costs of clearing title to the owner’s unit, 6010 including, but not limited to, locating lienors, obtaining 6011 statements from such lienors confirming the outstanding amount 6012 of any obligations of the unit owner, and paying all mortgages 6013 and other liens, judgments, and encumbrances and filing suit to 6014 quiet title or remove title defects. 6015 3. All costs of removing the owner or the owner’s family 6016 members, guests, tenants, occupants, licensees, invitees, or 6017 other persons from the unit in the event such persons fail to 6018 vacate a unit as required by the plan. 6019 4. All costs arising from, or related to, any breach of the 6020 plan by the owner or the owner’s family members, guests, 6021 tenants, occupants, licensees, invitees, or other persons. 6022 5. All costs arising out of, or related to, the removal and 6023 storage of all personal property remaining in a unit, other than 6024 personal property owned by the association, so that the unit may 6025 be delivered vacant and clear of the owner or the owner’s family 6026 members, guests, tenants, occupants, licensees, invitees, or 6027 other persons as required by the plan. 6028 6. All costs arising out of, or related to, the appointment 6029 and activities of a receiver or attorney ad litem acting for the 6030 owner in the event that the owner is unable to be located. 6031 (12)(13)TERMINATION TRUSTEE.—The association shall serve 6032 as termination trustee unless another person is appointed in the 6033 plan of termination. If the association is unable, unwilling, or 6034 fails to act as trustee, any unit owner may petition the court 6035 to appoint a trustee. Upon the date of the recording or at a 6036 later date specified in the plan, title to the common interest 6037 communitycondominiumproperty vests in the trustee. Unless 6038 prohibited by the plan, the termination trustee shall be vested 6039 with the powers given to the board pursuant to the declaration, 6040 bylaws, and subsection (5)(6). If the association is not the 6041 termination trustee, the trustee’s powers shall be coextensive 6042 with those of the association to the extent not prohibited in 6043 the plan of termination or the order of appointment. If the 6044 association is not the termination trustee, the association 6045 shall transfer any association property to the trustee. If the 6046 association is dissolved, the trustee shall also have such other 6047 powers necessary to conclude the affairs of the association. 6048 (13)(14)TITLE VESTED IN TERMINATION TRUSTEE.—If 6049 termination is pursuant to a plan of terminationunder6050subsection (2) or subsection (3), title to the common interest 6051 communitycondominiumproperty being terminated vests in the 6052 termination trustee when the plan is recorded or at a later date 6053 specified in the plan. The unit owners thereafter become the 6054 beneficiaries of the proceeds realized from the plan of 6055 termination as set forth in the plan. The termination trustee 6056 may deal with the common interest communitycondominiumproperty 6057 being terminated or any interest therein if the plan confers on 6058 the trustee the authority to protect, conserve, manage, sell, or 6059 dispose of the common interest communitycondominiumproperty. 6060 The trustee, on behalf of the unit owners, may contract for the 6061 sale of real property being terminated, but the contract is not 6062 binding on the unit owners until the plan is approvedpursuant6063to subsection (2) or subsection (3). 6064 (14)(15)NOTICE.— 6065 (a) Within 30 days after a plan of termination has been 6066 recorded, the termination trustee shall deliver by certified 6067 mail, return receipt requested, notice to all unit owners, 6068 lienors of the common interest communitycondominiumproperty, 6069 and lienors of all units at their last known addresses that a 6070 plan of termination has been recorded. The notice must include 6071 the book and page number of the public records in which the plan 6072 was recorded, notice that a copy of the plan shall be furnished 6073 upon written request, and notice that the unit owner or lienor 6074 has the right to contest the fairness of the plan. 6075 (b) The trustee, within 90 days after the effective date of 6076 the plan, shall provide to the division a certified copy of the 6077 recorded plan, the date the plan was recorded, and the county, 6078 book, and page number of the public records in which the plan is 6079 recorded. 6080 (15)(16)RIGHT TO CONTEST.—A unit owner or lienor may 6081 contest a plan of termination by initiating a petition for 6082 mandatory nonbinding arbitration pursuant to s. 718.1255 within 6083 90 days after the date the plan is recorded. A unit owner or 6084 lienor may only contest the fairness and reasonableness of the 6085 apportionment of the proceeds from the sale among the unit 6086 owners, that the liens of the first mortgages of unit owners 6087 other than the bulk owner have not or will not be satisfiedto6088the extent required by subsection (3), or that the required vote 6089 to approve the plan was not obtained. A unit owner or lienor who 6090 does not contest the plan within the 90-day period is barred 6091 from asserting or prosecuting a claim against the association, 6092 the termination trustee, any unit owner, or any successor in 6093 interest to the common interest communitycondominiumproperty. 6094 In an action contesting a plan of termination, the person 6095 contesting the plan has the burden of pleading and proving that 6096 the apportionment of the proceeds from the sale among the unit 6097 owners was not fair and reasonable or that the required vote was 6098 not obtained. The apportionment of sale proceeds is presumed 6099 fair and reasonable if it was determined pursuant to the methods 6100 prescribed in subsection (11)(12). The arbitrator shall 6101 determine the rights and interests of the parties in the 6102 apportionment of the sale proceeds. If the arbitrator determines 6103 that the apportionment of sales proceeds is not fair and 6104 reasonable, the arbitrator may void the plan or may modify the 6105 plan to apportion the proceeds in a fair and reasonable manner 6106 pursuant to this section based upon the proceedings and order 6107 the modified plan of termination to be implemented. If the 6108 arbitrator determines that the plan was not properly approved, 6109 or that the procedures to adopt the plan were not properly 6110 followed, the arbitrator may void the plan or grant other relief 6111 it deems just and proper. The arbitrator shall automatically 6112 void the plan upon a finding that any of the disclosures 6113required in subparagraph (3)(c)5.are omitted, misleading, 6114 incomplete, or inaccurate. Any challenge to a plan, other than a 6115 challenge that the required vote was not obtained, does not 6116 affect title to the condominium property or the vesting of the 6117 condominium property in the trustee, but shall only be a claim 6118 against the proceeds of the plan. In any such action, the 6119 prevailing party shall recover reasonable attorney fees and 6120 costs. 6121 (16)(17)DISTRIBUTION.— 6122 (a) Following termination of the common interest community 6123condominium, the common interest communitycondominiumproperty, 6124 association property, common surplus, and other assets of the 6125 association shall be held by the termination trustee pursuant to 6126 the plan of termination, as trustee for unit owners and holders 6127 of liens on the units, in their order of priority unless 6128 otherwise set forth in the plan of termination. 6129 (b) Not less than 30 days before the first distribution, 6130 the termination trustee shall deliver by certified mail, return 6131 receipt requested, a notice of the estimated distribution to all 6132 unit owners, lienors of the common interest community 6133condominiumproperty, and lienors of each unit at their last 6134 known addresses stating a good faith estimate of the amount of 6135 the distributions to each class and the procedures and deadline 6136 for notifying the termination trustee of any objections to the 6137 amount. The deadline must be at least 15 days after the date the 6138 notice was mailed. The notice may be sent with or after the 6139 notice required by subsection (14)(15). If a unit owner or 6140 lienor files a timely objection with the termination trustee, 6141 the trustee need not distribute the funds and property allocated 6142 to the respective unit owner or lienor until the trustee has had 6143 a reasonable time to determine the validity of the adverse 6144 claim. In the alternative, the trustee may interplead the unit 6145 owner, lienor, and any other person claiming an interest in the 6146 unit and deposit the funds allocated to the unit in the court 6147 registry, at which time the common interest community 6148condominiumproperty, association property, common surplus, and 6149 other assets of the association are free of all claims and liens 6150 of the parties to the suit. In an interpleader action, the 6151 trustee and prevailing party may recover reasonable attorney 6152attorney’sfees and costs. 6153 (c) The proceeds from any sale of common interest community 6154condominiumproperty or association property and any remaining 6155 common interest communitycondominiumproperty or association 6156 property, common surplus, and other assets shall be distributed 6157 in the following priority: 6158 1. To pay the reasonable termination trustee’s fees and 6159 costs and accounting fees and costs. 6160 2. To lienholders of liens recorded prior to the recording 6161 of the declaration. 6162 3. To purchase-money lienholders on units to the extent 6163 necessary to satisfy their liens; however, the distribution may 6164 not exceed a unit owner’s share of the proceeds. 6165 4. To lienholders of liens of the association which have 6166 been consented to under s. 718.121(1). 6167 5. To creditors of the association, as their interests 6168 appear. 6169 6. To unit owners, the proceeds of any sale of common 6170 interest communitycondominiumproperty subject to satisfaction 6171 of liens on each unit in their order of priority, in shares 6172 specified in the plan of termination, unless objected to by a 6173 unit owner or lienor as provided in paragraph (b). 6174 7. To unit owners, the remaining common interest community 6175condominiumproperty, subject to satisfaction of liens on each 6176 unit in their order of priority, in shares specified in the plan 6177 of termination, unless objected to by a unit owner or a lienor 6178 as provided in paragraph (b). 6179 8. To unit owners, the proceeds of any sale of association 6180 property, the remaining association property, common surplus, 6181 and other assets of the association, subject to satisfaction of 6182 liens on each unit in their order of priority, in shares 6183 specified in the plan of termination, unless objected to by a 6184 unit owner or a lienor as provided in paragraph (b). 6185 (d) After determining that all known debts and liabilities 6186 of an association in the process of termination have been paid 6187 or adequately provided for, the termination trustee shall 6188 distribute the remaining assets pursuant to the plan of 6189 termination. If the termination is by court proceeding or 6190 subject to court supervision, the distribution may not be made 6191 until any period for the presentation of claims ordered by the 6192 court has elapsed. 6193 (e) Assets held by an association upon a valid condition 6194 requiring return, transfer, or conveyance, which condition has 6195 occurred or will occur, shall be returned, transferred, or 6196 conveyed in accordance with the condition. The remaining 6197 association assets shall be distributed pursuant to paragraph 6198 (c). 6199 (f) Distribution may be made in money, property, or 6200 securities and in installments or as a lump sum, if it can be 6201 done fairly and ratably and in conformity with the plan of 6202 termination. Distribution shall be made as soon as is reasonably 6203 consistent with the beneficial liquidation of the assets. 6204 (17)(18)ASSOCIATION STATUS.—The termination of a common 6205 interest communitycondominiumdoes not change the corporate 6206 status of the association that operated the common interest 6207 communitycondominiumproperty. The association continues to 6208 exist to conclude its affairs, prosecute and defend actions by 6209 or against it, collect and discharge obligations, dispose of and 6210 convey its property, and collect and divide its assets, but not 6211 to act except as necessary to conclude its affairs. In a partial 6212 termination, the association may continue as the common interest 6213 communitycondominiumassociation for the property that remains 6214 subject to the documentsdeclarationof the common interest 6215 communitycondominium. 6216 (18)(19)CREATION OF ANOTHER COMMON INTEREST COMMUNITY 6217CONDOMINIUM.—The termination or partial termination of a common 6218 interest communitycondominiumdoes not bar the filing ofanew 6219 documentsdeclarationof the common interest community 6220condominiumby the termination trustee, or the trustee’s 6221 successor in interest, for the terminated property or any 6222 portion thereof. The partial termination of a common interest 6223 communitycondominiummay provide for the simultaneous filing of 6224 an amendment to the documentsdeclarationof the common interest 6225 communitycondominiumoranamended and restated documents 6226declarationof the common interest communitycondominiumby the 6227 common interest communitycondominiumassociation for any 6228 portion of the property not terminated from the common interest 6229 communitycondominiumform of ownership. 6230 (19)(20)EXCLUSION.—This section does not apply to the 6231 termination of a common interest communitycondominiumincident 6232 to a merger of that common interest communitycondominiumwith 6233 one or more other common interest communitiescondominiumsunder 6234 s. 718.110(7). 6235 Section 65. Section 718.118, Florida Statutes, is amended 6236 to read: 6237 718.118 Equitable relief.—In the event of substantial 6238 damage to or destruction of all or a substantial part of the 6239 common interest communitycondominiumproperty, and if the 6240 property is not repaired, reconstructed, or rebuilt within a 6241 reasonable period of time, any unit owner may petition a court 6242 for equitable relief, which may include a termination of the 6243 common interest communitycondominiumand a partition. 6244 Section 66. Section 718.119, Florida Statutes, is amended 6245 to read: 6246 718.119 Limitation of liability.— 6247 (1) The liability of the owner of a unit for common 6248 expenses is limited to the amountsfor which he or she is6249 assessed for common expenses from time to time in accordance 6250 with this chapter, the declaration, and bylaws. 6251 (2) The owner of a unit may be personally liable for the 6252 acts or omissions of the association in relation to the use of 6253 the common elements, but only to the extent of his or her pro 6254 rata share of that liability in the same percentage as his or 6255 her interest in the common elements, and then in no case shall 6256 that liability exceed the value of his or her unit. 6257 (3) In any legal action in which the association may be 6258 exposed to liability in excess of insurance coverage protecting 6259 it and the unit owners, the association shall give notice of the 6260 exposure within a reasonable time to all unit owners, and they 6261 shall have the right to intervene and defend. 6262 Section 67. Section 718.120, Florida Statutes, is amended 6263 to read: 6264 718.120 Separate taxation of common interest community 6265condominiumparcels; survival of declaration after tax sale;6266assessment of timeshare estates.— 6267 (1) Ad valorem taxes, benefit taxes, and special 6268 assessments by taxing authorities shall be assessed against the 6269 common interest communitycondominiumparcels and not upon the 6270 common interest communitycondominiumproperty as a whole. No ad 6271 valorem tax, benefit tax, or special assessment, including those 6272 made by special districts, drainage districts, or water 6273 management districts, may be separately assessed against 6274 recreational facilities or other common elements if such 6275 facilities or common elements are owned by the common interest 6276 communitycondominiumassociation or are owned jointly by the 6277 owners of the common interest communitycondominiumparcels. 6278 Each common interest communitycondominiumparcel shall be 6279 separately assessed for ad valorem taxes and special assessments 6280 as a single parcel. The taxes and special assessments levied 6281 against each common interest communitycondominiumparcel shall 6282 constitute a lien only upon the common interest community 6283condominiumparcel assessed and upon no other portion of the 6284 common interest communitycondominiumproperty. 6285 (2) All provisions of the documentsa declarationrelating 6286 to a common interest communitycondominiumparcel thatwhichhas 6287 been sold for taxes or special assessments survive and are 6288 enforceable after the issuance of a tax deed or master’s deed, 6289 upon foreclosure of an assessment, a certificate or lien, a tax 6290 deed, tax certificate, or tax lien, to the same extent that they 6291 would be enforceable against a voluntary grantee of the title 6292 immediately prior to the delivery of the tax deed, master’s 6293 deed, or clerk’s certificate of title as provided in s. 197.573. 6294 (3) The association shall provide information to the county 6295 property appraiser annually upon request as to the rental status 6296 of each common interest community unit to verify homestead 6297 exemptions. 6298 (4) Any common interest community unit not constructed 6299 within 7 years after recordation of the documents shall, upon 6300 application and certification to the property appraiser by the 6301 association, be removed from the tax rolls. 6302 (5) Any common interest community subject to a submerged 6303 land lease with the Department of Environmental Protection is 6304 not subject to any lease fee or tax on the lease. 6305(3) Condominium property divided into fee timeshare real6306property shall be assessed for purposes of ad valorem taxes and6307special assessments as provided in s. 192.037.6308 Section 68. Section 718.121, Florida Statutes, is amended 6309 to read: 6310 718.121 Liens.— 6311 (1) Subsequent to recording the declaration and while the 6312 property remains subject to the declaration, no liens of any 6313 nature are valid against the common interest community 6314condominiumproperty as a whole except with the unanimous 6315 consent of the unit owners. During this period, liens may arise 6316 or be created only against individual common interest community 6317condominiumparcels. 6318 (2) Labor performed on or materials furnished to a unit 6319 shall not be the basis for the filing of a lien pursuant to part 6320 I of chapter 713, the Construction Lien Law, against the unit or 6321 common interest communitycondominiumparcel of any unit owner 6322 not expressly consenting to or requesting the labor or 6323 materials. Labor performed on or materials furnished to the 6324 common elements are not the basis for a lien on the common 6325 elements, but if authorized by the association, the labor or 6326 materials are deemed to be performed or furnished with the 6327 express consent of each unit owner and may be the basis for the 6328 filing of a lien against all common interest community 6329condominiumparcels in the proportions for which the owners are 6330 liable for common expenses only if a money judgment has been 6331 obtained in a court of competent jurisdiction. 6332 (3) If a lien against two or more common interest community 6333condominiumparcels becomes effective, each owner may relieve 6334 his or her common interest communitycondominiumparcel of the 6335 lien by exercising any of the rights of a property owner under 6336 chapter 713, or by payment of the proportionate amount 6337 attributable to his or her common interest communitycondominium6338 parcel. Upon the payment, the lienholderlienorshall release 6339 the lien of record for that common interest community 6340condominiumparcel. 6341 (4) Except as otherwise provided in this chapter, no lien 6342 may be filed by the association against a common interest 6343 communitycondominiumunit until 30 days after the date on which 6344 a notice of intent to file a lien has been delivered to the 6345 owner byregistered orcertified mail, return receipt requested, 6346 and by first-class United States mail to the owner at his or her 6347 last known address as reflected in the records of the 6348 association. However, if the addressis within the United6349States, and delivered to the owner at the address of the unit if6350the owner’s address as reflected in the records of the6351association is not the unit address. If the addressreflected in 6352 the records is outside the United States,sendingthe notice 6353 must be sentto that address and to the unit addressby first 6354 class United States mail to the unit and by first-class mail 6355 international to the unit owner’s last known address to beis6356 sufficient. Delivery of the notice shall be deemed given upon 6357 mailing as required by this subsection. Notice is provided if 6358 served on the unit owner in the manner authorized by chapter 48 6359 and the Florida Rules of Civil Procedure.The notice must be in6360substantially the following form:6361NOTICE OF INTENT6362TO RECORD A CLAIM OF LIEN6363RE: Unit .... of ...(name of association)...6364The following amounts are currently due on your account to6365...(name of association)..., and must be paid within 30 days6366after your receipt of this letter. This letter shall serve as6367the association’s notice of intent to record a Claim of Lien6368against your property no sooner than 30 days after your receipt6369of this letter, unless you pay in full the amounts set forth6370below:6371Maintenance due ...(dates)...$.....6372Late fee, if applicable$.....6373Interest through ...(dates)...*$.....6374Certified mail charges$.....6375Other costs$.....6376TOTAL OUTSTANDING$.....6377*Interest accrues at the rate of .... percent per annum.6378 Section 69. Section 718.122, Florida Statutes, is amended 6379 to read: 6380 718.122 Unconscionability of certain leases; rebuttable 6381 presumption.— 6382 (1) A lease pertaining to use by common interest community 6383condominiumunit owners of recreational or other common 6384 facilities, irrespective of the date on which such lease was 6385 entered into, is presumptively unconscionable if all of the 6386 following elements exist: 6387 (a) The lease was executed by persons none of whom at the 6388 time of the execution of the lease were elected by common 6389 interest communitycondominiumunit owners, other than the 6390 developer, to represent their interests; 6391 (b) The lease requires either the common interest community 6392condominiumassociation or the common interest community 6393condominiumunit owners to pay real estate taxes on the subject 6394 real property; 6395 (c) The lease requires either the common interest community 6396condominiumassociation or the common interest community 6397condominiumunit owners to insure buildings or other facilities 6398 on the subject real property against fire or any other hazard; 6399 (d) The lease requires either the common interest community 6400condominiumassociation or the common interest community 6401condominiumunit owners to perform some or all maintenance 6402 obligations pertaining to the subject real property or 6403 facilities located upon the subject real property; 6404 (e) The lease requires either the common interest community 6405condominiumassociation or the common interest community 6406condominiumunit owners to pay rents to the lessor for a period 6407 of 21 years or more; 6408 (f) The lease provides that failure of the lessee to make 6409 payments of rents due under the lease either creates, 6410 establishes, or permits establishment of a lien upon individual 6411 common interest communitycondominiumunits of the common 6412 interest communitycondominiumto secure claims for rent; 6413 (g) The lease requires an annual rental thatwhichexceeds 6414 25 percent of the appraised value of the leased property as 6415 improved, provided that, for purposes of this paragraph, “annual 6416 rental” means the amount due during the first 12 months of the 6417 lease for all units, regardless of whether such units were in 6418 fact occupied or sold during that period, and “appraised value” 6419 means the appraised value placed upon the leased property the 6420 first tax year after the sale of a unit in the common interest 6421 communitycondominium; 6422 (h) The lease provides for a periodic rental increase; and 6423 (i) The lease or other common interest community 6424condominiumdocuments require that every transferee of a common 6425 interest communitycondominiumunit must assume obligations 6426 under the lease. 6427 (2) The Legislature expressly finds that many leases 6428 involving use of recreational or other common facilities by 6429 residents of common interest communitiescondominiumswere 6430 entered into by parties wholly representative of the interests 6431 of a common interest communitycondominiumdeveloper at a time 6432 when the common interest communitycondominiumunit owners not 6433 only did not control the administration of their common interest 6434 communitycondominium, but also had little or no voice in such 6435 administration. Such leases often contain numerous obligations 6436 on the part of either or both a common interest community 6437condominiumassociation and common interest community 6438condominiumunit owners with relatively few obligations on the 6439 part of the lessor. Such leases may or may not be unconscionable 6440 in any given case. Nevertheless, the Legislature finds that a 6441 combination of certain onerous obligations and circumstances 6442 warrants the establishment of a rebuttable presumption of 6443 unconscionability of certain leases, as specified in subsection 6444 (1). The presumption may be rebutted by a lessor upon the 6445 showing of additional facts and circumstances to justify and 6446 validate what may otherwise appearappearsto be an 6447 unconscionable lease under this section. Failure of a lease to 6448 contain all the enumerated elements shall neither preclude a 6449 determination of unconscionability of the lease nor raise a 6450 presumption as to its conscionability. It is the intent of the 6451 Legislature that this section is remedial and does not create 6452 any new cause of action to invalidate any common interest 6453 communitycondominiumlease, but shall operate as a statutory 6454 prescription on procedural matters in actions brought on one or 6455 more causes of action existing at the time of the execution of 6456 such lease. 6457 (3) Any provision of the Florida Statutes to the contrary 6458 notwithstanding, neither the statute of limitations nor laches 6459 shall prohibit unit owners from maintaining a cause of action 6460 under the provisions of this section. 6461 Section 70. Section 718.1224, Florida Statutes, is amended 6462 to read: 6463 718.1224 Prohibition against SLAPP suits.— 6464 (1) It is the intent of the Legislature to protect the 6465 right of common interest communitycondominiumunit owners to 6466 exercise their rights to instruct their representatives and 6467 petition for redress of grievances before the various 6468 governmental entities of this state as protected by the First 6469 Amendment to the United States Constitution and s. 5, Art. I of 6470 the State Constitution. The Legislature recognizes that 6471 strategic lawsuits against public participation, or “SLAPP 6472 suits,” as they are typically referred to, have occurred when 6473 association members are sued by individuals, business entities, 6474 or governmental entities arising out of a common interest 6475 communitycondominiumunit owner’s appearance and presentation 6476 before a governmental entity on matters related to the common 6477 interest communitycondominiumassociation. However, it is the 6478 public policy of this state that governmental entities, business 6479 organizations, and individuals not engage in SLAPP suits, 6480 because such actions are inconsistent with the right of common 6481 interest communitycondominiumunit owners to participate in the 6482 state’s institutions of government. Therefore, the Legislature 6483 finds and declares that prohibiting such lawsuits by 6484 governmental entities, business entities, and individuals 6485 against common interest communitycondominiumunit owners who 6486 address matters concerning their common interest community 6487condominiumassociation will preserve this fundamental state 6488 policy, preserve the constitutional rights of common interest 6489 communitycondominiumunit owners, and ensure the continuation 6490 of representative government in this state. It is the intent of 6491 the Legislature that such lawsuits be expeditiously disposed of 6492 by the courts. As used in this subsection, the term 6493 “governmental entity” means the state, including the executive, 6494 legislative, and judicial branches of government; the 6495 independent establishments of the state, counties, 6496 municipalities, districts, authorities, boards, or commissions; 6497 or any agencies of these branches that are subject to chapter 6498 286. 6499 (2) A governmental entity, business organization, or 6500 individual in this state may not file or cause to be filed 6501 through its employees or agents any lawsuit, cause of action, 6502 claim, cross-claim, or counterclaim against a common interest 6503 communitycondominiumunit owner without merit and solely 6504 because such common interest communitycondominiumunit owner 6505 has exercised the right to instruct his or her representatives 6506 or the right to petition for redress of grievances before the 6507 various governmental entities of this state, as protected by the 6508 First Amendment to the United States Constitution and s. 5, Art. 6509 I of the State Constitution. 6510 (3) A common interest communitycondominiumunit owner sued 6511 by a governmental entity, business organization, or individual 6512 in violation of this section has a right to an expeditious 6513 resolution of a claim that the suit is in violation of this 6514 section. A common interest communitycondominiumunit owner may 6515 petition the court for an order dismissing the action or 6516 granting final judgment in favor of that common interest 6517 communitycondominiumunit owner. The petitioner may file a 6518 motion for summary judgment, together with supplemental 6519 affidavits, seeking a determination that the governmental 6520 entity’s, business organization’s, or individual’s lawsuit has 6521 been brought in violation of this section. The governmental 6522 entity, business organization, or individual shall thereafter 6523 file its response and any supplemental affidavits. As soon as 6524 practicable, the court shall set a hearing on the petitioner’s 6525 motion, which shall be held at the earliest possible time after 6526 the filing of the governmental entity’s, business 6527 organization’s, or individual’s response. The court may award 6528 the common interest communitycondominiumunit owner sued by the 6529 governmental entity, business organization, or individual actual 6530 damages arising from the governmental entity’s, individual’s, or 6531 business organization’s violation of this section. A court may 6532 treble the damages awarded to a prevailing common interest 6533 communitycondominiumunit owner and shall state the basis for 6534 the treble damages award in its judgment. The court shall award 6535 the prevailing party reasonable attorneyattorney’sfees and 6536 costs incurred in connection with a claim that an action was 6537 filed in violation of this section. 6538 (4) Common interest communityCondominiumassociations may 6539 not expend association funds in prosecuting a SLAPP suit against 6540 a common interest communitycondominiumunit owner. 6541 Section 71. Section 718.123, Florida Statutes, is amended 6542 to read: 6543 718.123 Right of owners to peaceably assemble.— 6544 (1) All common elements, common areas, and recreational 6545 facilities serving any common interest communitycondominium6546 shall be available to unit owners in the common interest 6547 communitycondominiumor common interest communities 6548condominiumsserved thereby and their invited guests for the use 6549 intended for such common elements, common areas, and 6550 recreational facilities, subject to the provisions of s. 6551 718.106(5)718.106(4). The entity or entities responsible for 6552 the operation of the common elements, common areas, and 6553 recreational facilities may adopt reasonable rules and 6554 regulations pertaining to the use of such common elements, 6555 common areas, and recreational facilities. No entity or entities 6556 shall unreasonably restrict any unit owner’s right to peaceably 6557 assemble or right to invite public officers or candidates for 6558 public office to appear and speak in common elements, common 6559 areas, and recreational facilities. 6560 (2) Any owner prevented from exercising rights guaranteed 6561 by subsection (1) may bring an action in the appropriate court 6562 of the county in which the alleged infringement occurred, and, 6563 upon favorable adjudication, the court shall enjoin the 6564 enforcement of any provision contained in any common interest 6565 communitycondominiumdocument or rule thatwhichoperates to 6566 deprive the owner of such rights. 6567 Section 72. Section 718.1232, Florida Statutes, is amended 6568 to read: 6569 718.1232 Cable television service; resident’s right to 6570 access without extra charge.—No resident of any common interest 6571 communitycondominiumdwelling unit, whether tenant or owner, 6572 shall be denied access to any available franchised or licensed 6573 cable television service, nor shall such resident or cable 6574 television service be required to pay anything of value in order 6575 to obtain or provide such service except those charges normally 6576 paid for like services by residents of, or providers of such 6577 services to, single-family homes within the same franchised or 6578 licensed area and except for installation charges as such 6579 charges may be agreed to between such resident and the provider 6580 of such services. 6581 Section 73. Section 718.124, Florida Statutes, is amended 6582 to read: 6583 718.124 Limitation on actions by association.—The statute 6584 of limitations for any actions in law or equity which a common 6585 interest communitywhich a condominiumassociationor a6586cooperative associationmay have shall not begin to run until 6587 the unit owners have elected a majority of the members of the 6588 board of administration. 6589 Section 74. Section 718.125, Florida Statutes, is amended 6590 to read: 6591 718.125 AttorneyAttorney’sfees.—If a contract or lease 6592 between a common interest communitycondominiumunit owner or 6593 association and a developer contains a provision allowing 6594 attorneyattorney’sfees to the developer, should any litigation 6595 arise under the provisions of the contract or lease, the court 6596 shall also allow reasonable attorneyattorney’sfees to the unit 6597 owner or association when the unit owner or association prevails 6598 in any action by or against the unit owner or association with 6599 respect to the contract or lease. 6600 Section 75. Section 718.1255, Florida Statutes, is amended 6601 to read: 6602 718.1255 Alternative dispute resolution; voluntary 6603 mediation; mandatory nonbinding arbitration; legislative 6604 findings.— 6605 (1) DEFINITIONS.—As used in this section, the term 6606 “dispute” means any disagreement between two or more parties 6607 that involves: 6608 (a) The authority of the board of directors, under this 6609 chapter or association document to: 6610 1. Require any owner to take any action, or not to take any 6611 action, involving that owner’s unit or the appurtenances 6612 thereto. 6613 2. Alter or add to a common area or element. 6614 (b) The failure of a governing body, when required by this 6615 chapter or an association document, to: 6616 1. Properly conduct elections. 6617 2. Give adequate notice of meetings or other actions. 6618 3. Properly conduct meetings. 6619 4. Allow inspection of books and records. 6620 (c) A plan of termination pursuant to s. 718.117. 6621 6622 “Dispute” does not include any disagreement that primarily 6623 involves: title to any unit or common element; the 6624 interpretation or enforcement of any warranty; the levy of a fee 6625 or assessment, or the collection of an assessment levied against 6626 a party; the eviction or other removal of a tenant from a unit; 6627 alleged breaches of fiduciary duty by one or more directors; or 6628 claims for damages to a unit based upon the alleged failure of 6629 the association to maintain the common elements or common 6630 interest communitycondominiumproperty. 6631 (2) VOLUNTARY MEDIATION.—Voluntary mediation through 6632 Citizen Dispute Settlement Centers as provided for in s. 44.201 6633 is encouraged. 6634 (3) LEGISLATIVE FINDINGS.— 6635 (a) The Legislature finds that unit owners are frequently 6636 at a disadvantage when litigating against an association. 6637 Specifically, a common interest communitycondominium6638 association, with its statutory assessment authority, is often 6639 more able to bear the costs and expenses of litigation than the 6640 unit owner who must rely on his or her own financial resources 6641 to satisfy the costs of litigation against the association. 6642 (b) The Legislature finds that alternative dispute 6643 resolution has been making progress in reducing court dockets 6644 and trials and in offering a more efficient, cost-effective 6645 option to court litigation. However, the Legislature also finds 6646 that alternative dispute resolution should not be used as a 6647 mechanism to encourage the filing of frivolous or nuisance 6648 suits. 6649 (c) There exists a need to develop a flexible means of 6650 alternative dispute resolution that directs disputes to the most 6651 efficient means of resolution. 6652 (d) The high cost and significant delay of circuit court 6653 litigation faced by unit owners in the state can be alleviated 6654 by requiring nonbinding arbitration and mediation in appropriate 6655 cases, thereby reducing delay and attorneyattorney’sfees while 6656 preserving the right of either party to have its case heard by a 6657 jury, if applicable, in a court of law. 6658 (4) MANDATORY NONBINDING ARBITRATION AND MEDIATION OF 6659 DISPUTES.—The Division of Common Interest CommunitiesFlorida6660Condominiums, Timeshares, and Mobile Homesof the Department of 6661 Business and Professional Regulation shall employ full-time 6662 attorneys to act as arbitrators to conduct the arbitration 6663 hearings provided by this chapter. The division may also certify 6664 attorneys who are not employed by the division to act as 6665 arbitrators to conduct the arbitration hearings provided by this 6666 section. No person may be employed by the department as a full 6667 time arbitrator unless he or she is a member in good standing of 6668 The Florida Bar. The department shall adopt rules of procedure 6669 to govern such arbitration hearings including mediation incident 6670 thereto. The decision of an arbitrator shall be final; however, 6671 a decision shall not be deemed final agency action. Nothing in 6672 this provision shall be construed to foreclose parties from 6673 proceeding in a trial de novo unless the parties have agreed 6674 that the arbitration is binding. If judicial proceedings are 6675 initiated, the final decision of the arbitrator shall be 6676 admissible in evidence in the trial de novo. 6677 (a) Prior to the institution of court litigation, a party 6678 to a dispute shall petition the division for nonbinding 6679 arbitration. The petition must be accompanied by a filing fee in 6680 the amount of $50. Filing fees collected under this section must 6681 be used to defray the expenses of the alternative dispute 6682 resolution program. 6683 (b) The petition must recite, and have attached thereto, 6684 supporting proof that the petitioner gave the respondents: 6685 1. Advance written notice of the specific nature of the 6686 dispute; 6687 2. A demand for relief, and a reasonable opportunity to 6688 comply or to provide the relief; and 6689 3. Notice of the intention to file an arbitration petition 6690 or other legal action in the absence of a resolution of the 6691 dispute. 6692 6693 Failure to include the allegations or proof of compliance with 6694 these prerequisites requires dismissal of the petition without 6695 prejudice. 6696 (c) Upon receipt, the petition shall be promptly reviewed 6697 by the division to determine the existence of a dispute and 6698 compliance with the requirements of paragraphs (a) and (b). If 6699 emergency relief is required and is not available through 6700 arbitration, a motion to stay the arbitration may be filed. The 6701 motion must be accompanied by a verified petition alleging facts 6702 that, if proven, would support entry of a temporary injunction, 6703 and if an appropriate motion and supporting papers are filed, 6704 the division may abate the arbitration pending a court hearing 6705 and disposition of a motion for temporary injunction. 6706 (d) Upon determination by the division that a dispute 6707 exists and that the petition substantially meets the 6708 requirements of paragraphs (a) and (b) and any other applicable 6709 rules, a copy of the petition shall be served by the division 6710 upon all respondents. 6711 (e) Before or after the filing of the respondents’ answer 6712 to the petition, any party may request that the arbitrator refer 6713 the case to mediation under this section and any rules adopted 6714 by the division. Upon receipt of a request for mediation, the 6715 division shall promptly contact the parties to determine if 6716 there is agreement that mediation would be appropriate. If all 6717 parties agree, the dispute must be referred to mediation. 6718 Notwithstanding a lack of an agreement by all parties, the 6719 arbitrator may refer a dispute to mediation at any time. 6720 (f) Upon referral of a case to mediation, the parties must 6721 select a mutually acceptable mediator. To assist in the 6722 selection, the arbitrator shall provide the parties with a list 6723 of both volunteer and paid mediators that have been certified by 6724 the division under s. 718.501. If the parties are unable to 6725 agree on a mediator within the time allowed by the arbitrator, 6726 the arbitrator shall appoint a mediator from the list of 6727 certified mediators. If a case is referred to mediation, the 6728 parties shall attend a mediation conference, as scheduled by the 6729 parties and the mediator. If any party fails to attend a duly 6730 noticed mediation conference, without the permission or approval 6731 of the arbitrator or mediator, the arbitrator must impose 6732 sanctions against the party, including the striking of any 6733 pleadings filed, the entry of an order of dismissal or default 6734 if appropriate, and the award of costs and attorneys’ fees 6735 incurred by the other parties. Unless otherwise agreed to by the 6736 parties or as provided by order of the arbitrator, a party is 6737 deemed to have appeared at a mediation conference by the 6738 physical presence of the party or its representative having full 6739 authority to settle without further consultation, provided that 6740 an association may comply by having one or more representatives 6741 present with full authority to negotiate a settlement and 6742 recommend that the board of administration ratify and approve 6743 such a settlement within 5 days from the date of the mediation 6744 conference. The parties shall share equally the expense of 6745 mediation, unless they agree otherwise. 6746 (g) The purpose of mediation as provided for by this 6747 section is to present the parties with an opportunity to resolve 6748 the underlying dispute in good faith, and with a minimum 6749 expenditure of time and resources. 6750 (h) Mediation proceedings must generally be conducted in 6751 accordance with the Florida Rules of Civil Procedure, and these 6752 proceedings are privileged and confidential to the same extent 6753 as court-ordered mediation. Persons who are not parties to the 6754 dispute are not allowed to attend the mediation conference 6755 without the consent of all parties, with the exception of 6756 counsel for the parties and corporate representatives designated 6757 to appear for a party. If the mediator declares an impasse after 6758 a mediation conference has been held, the arbitration proceeding 6759 terminates, unless all parties agree in writing to continue the 6760 arbitration proceeding, in which case the arbitrator’s decision 6761 shall be binding or nonbinding, as agreed upon by the parties; 6762 in the arbitration proceeding, the arbitrator shall not consider 6763 any evidence relating to the unsuccessful mediation except in a 6764 proceeding to impose sanctions for failure to appear at the 6765 mediation conference. If the parties do not agree to continue 6766 arbitration, the arbitrator shall enter an order of dismissal, 6767 and either party may institute a suit in a court of competent 6768 jurisdiction. The parties may seek to recover any costs and 6769 attorneyattorneys’fees incurred in connection with arbitration 6770 and mediation proceedings under this section as part of the 6771 costs and fees that may be recovered by the prevailing party in 6772 any subsequent litigation. 6773 (i) Arbitration shall be conducted according to rules 6774 adopted by the division. The filing of a petition for 6775 arbitration shall toll the applicable statute of limitations. 6776 (j) At the request of any party to the arbitration, the 6777 arbitrator shall issue subpoenas for the attendance of witnesses 6778 and the production of books, records, documents, and other 6779 evidence and any party on whose behalf a subpoena is issued may 6780 apply to the court for orders compelling such attendance and 6781 production. Subpoenas shall be served and shall be enforceable 6782 in the manner provided by the Florida Rules of Civil Procedure. 6783 Discovery may, in the discretion of the arbitrator, be permitted 6784 in the manner provided by the Florida Rules of Civil Procedure. 6785 Rules adopted by the division may authorize any reasonable 6786 sanctions except contempt for a violation of the arbitration 6787 procedural rules of the division or for the failure of a party 6788 to comply with a reasonable nonfinal order issued by an 6789 arbitrator which is not under judicial review. 6790 (k) The arbitration decision shall be presented to the 6791 parties in writing. An arbitration decision is final in those 6792 disputes in which the parties have agreed to be bound. An 6793 arbitration decision is also final if a complaint for a trial de 6794 novo is not filed in a court of competent jurisdiction in which 6795 the common interest communitycondominiumis located within 30 6796 days. The right to file for a trial de novo entitles the parties 6797 to file a complaint in the appropriate trial court for a 6798 judicial resolution of the dispute. The prevailing party in an 6799 arbitration proceeding shall be awarded the costs of the 6800 arbitration and reasonable attorneyattorney’sfees in an amount 6801 determined by the arbitrator. Such an award shall include the 6802 costs and reasonable attorneyattorney’sfees incurred in the 6803 arbitration proceeding as well as the costs and reasonable 6804 attorneyattorney’sfees incurred in preparing for and attending 6805 any scheduled mediation. 6806 (l) The party who files a complaint for a trial de novo 6807 shall be assessed the other party’s arbitration costs, court 6808 costs, and other reasonable costs, including attorneyattorney’s6809 fees, investigation expenses, and expenses for expert or other 6810 testimony or evidence incurred after the arbitration hearing if 6811 the judgment upon the trial de novo is not more favorable than 6812 the arbitration decision. If the judgment is more favorable, the 6813 party who filed a complaint for trial de novo shall be awarded 6814 reasonable court costs and attorneyattorney’sfees. 6815 (m) Any party to an arbitration proceeding may enforce an 6816 arbitration award by filing a petition in a court of competent 6817 jurisdiction in which the common interest communitycondominium6818 is located. A petition may not be granted unless the time for 6819 appeal by the filing of a complaint for trial de novo has 6820 expired. If a complaint for a trial de novo has been filed, a 6821 petition may not be granted with respect to an arbitration award 6822 that has been stayed. If the petition for enforcement is 6823 granted, the petitioner shall recover reasonable attorney 6824attorney’sfees and costs incurred in enforcing the arbitration 6825 award. A mediation settlement may also be enforced through the 6826 county or circuit court, as applicable, and any costs and fees 6827 incurred in the enforcement of a settlement agreement reached at 6828 mediation must be awarded to the prevailing party in any 6829 enforcement action. 6830 (5) DISPUTES INVOLVING ELECTION IRREGULARITIES.—Every 6831 arbitration petition received by the division and required to be 6832 filed under this section challenging the legality of the 6833 election of any director of the board of administration must be 6834 handled on an expedited basisin the manner provided by the6835division’s rules for recall arbitration disputes. 6836 (6) APPLICABILITY.—This section does not apply to a 6837 nonresidential common interest communitycondominiumunless 6838 otherwise specifically provided for in the documentsdeclaration6839 of the nonresidential common interest communitycondominium. 6840 Section 76. Section 718.1256, Florida Statutes, is amended 6841 to read: 6842 718.1256 Common interest communitiesCondominiumsas 6843 residential property.—For the purpose of property and casualty 6844 insurance risk classification, common interest communities 6845condominiumsshall be classed as residential property. 6846 Section 77. Section 718.1265, Florida Statutes, is amended 6847 to read: 6848 718.1265 Association emergency powers.— 6849 (1) To the extent allowed by law and unless specifically 6850 prohibited by the documentsdeclarationof the common interest 6851 communitycondominium, the articles, or the bylaws of an 6852 association, and consistent with the provisions of s. 617.0830, 6853 the board of administration, in response to damage caused by an 6854 event for which a state of emergency is declared pursuant to s. 6855 252.36 in the locale in which the common interest community 6856condominiumis located, may, but is not required to, exercise 6857 the following powers: 6858 (a) Conduct board meetings and membership meetings with 6859 notice given as is practicable. Such notice may be given in any 6860 practicable manner, including publication, radio, United States 6861 mail, the Internet, public service announcements, and 6862 conspicuous posting on the common interest communitycondominium6863 property or any other means the board deems reasonable under the 6864 circumstances. Notice of board decisions may be communicated as 6865 provided in this paragraph. 6866 (b) Cancel and reschedule any association meeting. 6867 (c) Name as assistant officers persons who are not 6868 directors, which assistant officers shall have the same 6869 authority as the executive officers to whom they are assistants 6870 during the state of emergency to accommodate the incapacity or 6871 unavailability of any officer of the association. 6872 (d) Relocate the association’s principal office or 6873 designate alternative principal offices. 6874 (e) Enter into agreements with local counties and 6875 municipalities to assist counties and municipalities with debris 6876 removal. 6877 (f) Implement a disaster plan before or immediately 6878 following the event for which a state of emergency is declared 6879 which may include, but is not limited to, shutting down or off 6880 elevators; electricity; water, sewer, or security systems; or 6881 air conditioners. 6882 (g) Based upon advice of emergency management officials or 6883 upon the advice of licensed professionals retained by the board, 6884 determine any portion of the common interest community 6885condominiumproperty unavailable for entry or occupancy by unit 6886 owners, family members, tenants, guests, agents, or invitees to 6887 protect the health, safety, or welfare of such persons. 6888 (h) Require the evacuation of the common interest community 6889condominiumproperty in the event of a mandatory evacuation 6890 order in the locale in which the common interest community 6891condominiumis located. Should any unit owner or other occupant 6892 of a common interest communitycondominiumfail or refuse to 6893 evacuate the common interest communitycondominiumproperty 6894 where the board has required evacuation, the association shall 6895 be immune from liability or injury to persons or property 6896 arising from such failure or refusal. 6897 (i) Based upon advice of emergency management officials or 6898 upon the advice of licensed professionals retained by the board, 6899 determine whether the common interest communitycondominium6900 property can be safely inhabited or occupied. However, such 6901 determination is not conclusive as to any determination of 6902 habitability pursuant to the documentsdeclaration. 6903 (j) Mitigate further damage, including taking action to 6904 contract for the removal of debris and to prevent or mitigate 6905 the spread of fungus, including, but not limited to, mold or 6906 mildew, by removing and disposing of wet drywall, insulation, 6907 carpet, cabinetry, or other fixtures on or within the common 6908 interest communitycondominiumproperty, even if the unit owner 6909 is obligated by the documentsdeclarationor law to insure or 6910 replace those fixtures and to remove personal property from a 6911 unit. 6912 (k) Contract, on behalf of any unit owner or owners, for 6913 items or services for which the owners are otherwise 6914 individually responsible, but which are necessary to prevent 6915 further damage to the common interest communitycondominium6916 property. In such event, the unit owner or owners on whose 6917 behalf the board has contracted are responsible for reimbursing 6918 the association for the actual costs of the items or services, 6919 and the association may use its lien authority provided by s. 6920 718.116 to enforce collection of the charges. Without 6921 limitation, such items or services may include the drying of 6922 units, the boarding of broken windows or doors, and the 6923 replacement of damaged air conditioners or air handlers to 6924 provide climate control in the units or other portions of the 6925 property. 6926 (l) Regardless of any provision to the contrary and even if 6927 such authority does not specifically appear in the documents 6928declarationof the common interest communitycondominium, 6929 articles, or bylaws of the association, levy special assessments 6930 without a vote of the owners. 6931 (m) Without unit owners’ approval, borrow money and pledge 6932 association assets as collateral to fund emergency repairs and 6933 carry out the duties of the association when operating funds are 6934 insufficient. This paragraph does not limit the general 6935 authority of the association to borrow money, subject to such 6936 restrictions as are contained in the documentsdeclarationof 6937 the common interest communitycondominium, articles, or bylaws 6938 of the association. 6939 (2) The special powers authorized under subsection (1) 6940 shall be limited to that time reasonably necessary to protect 6941 the health, safety, and welfare of the association and the unit 6942 owners and the unit owners’ family members, tenants, guests, 6943 agents, or invitees and shall be reasonably necessary to 6944 mitigate further damage and make emergency repairs. 6945 Section 78. Section 718.127, Florida Statutes, is amended 6946 to read: 6947 718.127 Receivership notification.—Upon the appointment of 6948 a receiver by a court for any reason relating to a common 6949 interest communitycondominiumassociation, the court shall 6950 direct the receiver to provide to all unit owners written notice 6951 of his or her appointment as receiver. Such notice shall be 6952 mailed or delivered within 10 days after the appointment. Notice 6953 by mail to a unit owner shall be sent to the address used by the 6954 county property appraiser for notice to the unit owner. 6955 Section 79. Section 719.114, Florida Statutes, is 6956 transferred and renumbered as section 718.129, Florida Statutes. 6957 Section 80. Section 718.202, Florida Statutes, is amended 6958 to read: 6959 718.202 Sales or reservation deposits prior to closing.— 6960 (1) If a developer contracts to sell a common interest 6961 communitycondominiumparcel and the construction, furnishing, 6962 and landscaping of the property submitted or proposed to be 6963 submitted to common interest communitycondominiumownership has 6964 not been substantially completed in accordance with the plans 6965 and specifications and representations made by the developer in 6966 the disclosures required by this chapter, the developer shall 6967 pay into an escrow account all payments up to 10 percent of the 6968 sale price received by the developer from the buyer towards the 6969 sale price. The escrow agent shall give to the purchaser a 6970 receipt for the deposit, upon request. In lieu of the foregoing, 6971 the division director has the discretion to accept other 6972 assurances, including, but not limited to, a surety bond or an 6973 irrevocable letter of credit in an amount equal to the escrow 6974 requirements of this section. Default determinations and refund 6975 of deposits shall be governed by the escrow release provision of 6976 this subsection. Funds shall be released from escrow as follows: 6977 (a) If a buyer properly terminates the contract pursuant to 6978 its terms or pursuant to this chapter, the funds shall be paid 6979 to the buyer together with any interest earned. 6980 (b) If the buyer defaults in the performance of his or her 6981 obligations under the contract of purchase and sale, the funds 6982 shall be paid to the developer together with any interest 6983 earned. 6984 (c) If the contract does not provide for the payment of any 6985 interest earned on the escrowed funds, interest shall be paid to 6986 the developer at the closing of the transaction. 6987 (d) If the funds of a buyer have not been previously 6988 disbursed in accordance with the provisions of this subsection, 6989 they may be disbursed to the developer by the escrow agent at 6990 the closing of the transaction, unless prior to the disbursement 6991 the escrow agent receives from the buyer written notice of a 6992 dispute between the buyer and developer. 6993 (2) All payments which are in excess of the 10 percent of 6994 the sale price described in subsection (1) and which have been 6995 received prior to completion of construction by the developer 6996 from the buyer on a contract for purchase of a common interest 6997 communitycondominiumparcel shall be held in a special escrow 6998 account established as provided in subsection (1) and controlled 6999 by an escrow agent and may not be used by the developer prior to 7000 closing the transaction, except as provided in subsection (3) or 7001 except for refund to the buyer. If the money remains in this 7002 special account for more than 3 months and earns interest, the 7003 interest shall be paid as provided in subsection (1). 7004 (3) If the contract for sale of the common interest 7005 communitycondominiumunit so provides, the developer may 7006 withdraw escrow funds in excess of 10 percent of the purchase 7007 price from the special account required by subsection (2) when 7008 the construction of improvements has begun. He or she may use 7009 the funds in the actual construction and development of the 7010 common interest communitycondominiumproperty in which the unit 7011 to be sold is located. However, no part of these funds may be 7012 used for salaries, commissions, or expenses of salespersons or 7013 for advertising purposes. A contract which permits use of the 7014 advance payments for these purposes shall include the following 7015 legend conspicuously printed or stamped in boldfaced type on the 7016 first page of the contract and immediately above the place for 7017 the signature of the buyer: ANY PAYMENT IN EXCESS OF 10 PERCENT 7018 OF THE PURCHASE PRICE MADE TO DEVELOPER PRIOR TO CLOSING 7019 PURSUANT TO THIS CONTRACT MAY BE USED FOR CONSTRUCTION PURPOSES 7020 BY THE DEVELOPER. 7021 (4) The term “completion of construction” means issuance of 7022 a certificate of occupancy for the entire building or 7023 improvement, or the equivalent authorization issued by the 7024 governmental body having jurisdiction, and, in a jurisdiction 7025 where no certificate of occupancy or equivalent authorization is 7026 issued, it means substantial completion of construction, 7027 finishing, and equipping of the building or improvements 7028 according to the plans and specifications. 7029 (5) The failure to comply with the provisions of this 7030 section renders the contract voidable by the buyer, and, if 7031 voided, all sums deposited or advanced under the contract shall 7032 be refunded with interest at the highest rate then being paid on 7033 savings accounts, excluding certificates of deposit, by savings 7034 and loan associations in the area in which the common interest 7035 communitycondominiumproperty is located. 7036 (6) If a developer enters into a reservation agreement, the 7037 developer shall pay into an escrow account all reservation 7038 deposit payments. Reservation deposits shall be payable to the 7039 escrow agent, who shall give to the prospective purchaser a 7040 receipt for the deposit, acknowledging that the deposit is being 7041 held pursuant to the requirements of this subsection. The funds 7042 may be placed in either interest-bearing or non-interest-bearing 7043 accounts, provided that the funds shall at all reasonable times 7044 be available for withdrawal in full by the escrow agent. The 7045 developer shall maintain separate records for each common 7046 interest communitycondominiumor proposed common interest 7047 communitycondominiumfor which deposits are being accepted. 7048 Upon written request to the escrow agent by the prospective 7049 purchaser or developer, the funds shall be immediately and 7050 without qualification refunded in full to the prospective 7051 purchaser. Upon such refund, any interest shall be paid to the 7052 prospective purchaser, unless otherwise provided in the 7053 reservation agreement. A reservation deposit shall not be 7054 released directly to the developer except as a down payment on 7055 the purchase price simultaneously with or subsequent to the 7056 execution of a contract. Upon the execution of a purchase 7057 agreement for a unit, any funds paid by the purchaser as a 7058 deposit to reserve the unit pursuant to a reservation agreement, 7059 and any interest thereon, shall cease to be subject to the 7060 provisions of this subsection and shall instead be subject to 7061 the provisions of subsections (1)-(5). 7062 (7) Any developer who willfully fails to comply with the 7063 provisions of this section concerning establishment of an escrow 7064 account, deposits of funds into escrow, and withdrawal of funds 7065 from escrow is guilty of a felony of the third degree, 7066 punishable as provided in s. 775.082, s. 775.083, or s. 775.084, 7067 or the successor thereof. The failure to establish an escrow 7068 account or to place funds in an escrow account is prima facie 7069 evidence of an intentional and purposeful violation of this 7070 section. 7071 (8) Every escrow account required by this section shall be 7072 established with a bank; a savings and loan association; an 7073 attorney who is a member of The Florida Bar; a real estate 7074 broker registered under chapter 475; a title insurer authorized 7075 to do business in this state, acting through either its 7076 employees or a title insurance agent licensed under chapter 626; 7077 or any financial lending institution having a net worth in 7078 excess of $5 million. The escrow agent shall not be located 7079 outside the state unless, pursuant to the escrow agreement, the 7080 escrow agent submits to the jurisdiction of the division and the 7081 courts of this state for any cause of action arising from the 7082 escrow. Every escrow agent shall be independent of the 7083 developer, and no developer or any officer, director, affiliate, 7084 subsidiary, or employee of a developer may serve as escrow 7085 agent. Escrow funds may be invested only in securities of the 7086 United States or an agency thereof or in accounts in 7087 institutions the deposits of which are insured by an agency of 7088 the United States. 7089 (9) Any developer who is subject to the provisions of this 7090 section is not subject to the provisions of s. 501.1375. 7091 (10) Nothing in this section shall be construed to require 7092 any filing with the division in the case of common interest 7093 communitiescondominiumsother than residential common interest 7094 communitiescondominiums. 7095 (11) All funds deposited into escrow pursuant to subsection 7096 (1) or subsection (2) may be held in one or more escrow accounts 7097 by the escrow agent. If only one escrow account is used, the 7098 escrow agent must maintain separate accounting records for each 7099 purchaser and for amounts separately covered under subsections 7100 (1) and (2) and, if applicable, released to the developer 7101 pursuant to subsection (3). Separate accounting by the escrow 7102 agent of the escrow funds constitutes compliance with this 7103 section even if the funds are held by the escrow agent in a 7104 single escrow account. It is the intent of this subsection to 7105 clarify existing law. 7106 Section 81. Section 718.203, Florida Statutes, is amended 7107 to read: 7108 718.203 Warranties.— 7109 (1) The developer shall be deemed to have granted to the 7110 purchaser of each unit an implied warranty of fitness and 7111 merchantability for the purposes or uses intended as follows: 7112 (a) As to each unit, a warranty for 3 years commencing with 7113 the completion of the building containing the unit. 7114 (b) As to the personal property that is transferred with, 7115 or appurtenant to, each unit, a warranty which is for the same 7116 period as that provided by the manufacturer of the personal 7117 property, commencing with the date of closing of the purchase or 7118 the date of possession of the unit, whichever is earlier. 7119 (c) As to all other improvements for the use of unit 7120 owners, a 3-year warranty commencing with the date of completion 7121 of the improvements. 7122 (d) As to all other personal property for the use of unit 7123 owners, a warranty which shall be the same as that provided by 7124 the manufacturer of the personal property. 7125 (e) As to the roof and structural components of a building 7126 or other improvements and as to mechanical, electrical, and 7127 plumbing elements serving improvements or a building, except 7128 mechanical elements serving only one unit, a warranty for a 7129 period beginning with the completion of construction of each 7130 building or improvement and continuing for 3 years thereafter or 7131 1 year after owners other than the developer obtain control of 7132 the association, whichever occurs last, but in no event more 7133 than 5 years. 7134 (f) As to all other property which is conveyed with a unit, 7135 a warranty to the initial purchaser of each unit for a period of 7136 1 year from the date of closing of the purchase or the date of 7137 possession, whichever occurs first. 7138 (2) The contractor, and all subcontractors and suppliers, 7139 grant to the developer and to the purchaser of each unit implied 7140 warranties of fitness as to the work performed or materials 7141 supplied by them as follows: 7142 (a) For a period of 3 years from the date of completion of 7143 construction of a building or improvement, a warranty as to the 7144 roof and structural components of the building or improvement 7145 and mechanical and plumbing elements serving a building or an 7146 improvement, except mechanical elements serving only one unit. 7147 (b) For a period of 1 year after completion of all 7148 construction, a warranty as to all other improvements and 7149 materials. 7150 (3) “Completion of a building or improvement” means 7151 issuance of a certificate of occupancy, whether temporary or 7152 otherwise, that allows for occupancy or use of the entire 7153 building or improvement, or an equivalent authorization issued 7154 by the governmental body having jurisdiction. In jurisdictions 7155 where no certificate of occupancy or equivalent authorization is 7156 issued, the term means substantial completion of construction, 7157 finishing, and equipping of the building or improvement 7158 according to the plans and specifications. 7159 (4) These warranties are conditioned upon routine 7160 maintenance being performed, unless the maintenance is an 7161 obligation of the developer or a developer-controlled 7162 association. 7163 (5) The warranties provided by this section shall inure to 7164 the benefit of each owner and his or her successor owners and to 7165 the benefit of the developer. 7166 (6) Nothing in this section affects a common interest 7167 communitycondominiumas to which rights are established by 7168 contracts for sale of 10 percent or more of the units in the 7169 common interest communitycondominiumby the developer to 7170 prospective unit owners prior to July 1, 1974, or as to common 7171 interest communitycondominiumbuildings on which construction 7172 has been commenced prior to July 1, 1974. 7173 (7) Residential common interest communitiescondominiums7174 may be covered by an insured warranty program underwritten by a 7175 licensed insurance company registered in this state, provided 7176 that such warranty program meets the minimum requirements of 7177 this chapter; to the degree that such warranty program does not 7178 meet the minimum requirements of this chapter, such requirements 7179 shall apply. 7180 Section 82. Section 718.301, Florida Statutes, is amended 7181 to read: 7182 718.301 Transfer of association control; claims of defect 7183 by association.— 7184 (1) If unit owners other than the developer own 15 percent 7185 or more of the units in a common interest communitycondominium7186 that will be operated ultimately by an association, the unit 7187 owners other than the developer are entitled to elect at least 7188 one-third of the members of the board of administration of the 7189 association. Unit owners other than the developer are entitled 7190 to elect at least a majority of the members of the board of 7191 administration of an association, upon the first to occur of any 7192 of the following events: 7193 (a) Three years after 50 percent of the units that will be 7194 operated ultimately by the association have been conveyed to 7195 purchasers; 7196 (b) Three months after 90 percent of the units that will be 7197 operated ultimately by the association have been conveyed to 7198 purchasers; 7199 (c) When all the units that will be operated ultimately by 7200 the association have been completed, some of them have been 7201 conveyed to purchasers, and none of the others are being offered 7202 for sale by the developer in the ordinary course of business; 7203 (d) When some of the units have been conveyed to purchasers 7204 and none of the others are being constructed or offered for sale 7205 by the developer in the ordinary course of business; 7206 (e) When the developer files a petition seeking protection 7207 in bankruptcy; 7208 (f) When a receiver for the developer is appointed by a 7209 circuit court and is not discharged within 30 days after such 7210 appointment, unless the court determines within 30 days after 7211 appointment of the receiver that transfer of control would be 7212 detrimental to the association or its members; or 7213 (g) Seven years after the date of the recording of the 7214 certificate of a surveyor and mapper pursuant to s. 718.104(6) 7215718.104(4)(e)or the recording of an instrument that transfers 7216 title to a unit in the common interest communitycondominium7217 which is not accompanied by a recorded assignment of developer 7218 rights in favor of the grantee of such unit, whichever occurs 7219 first; or, in the case of an association that may ultimately 7220 operate more than one common interest community, 7 years after 7221 the date of the recording of the certificate of a surveyor and 7222 mapper pursuant to s. 718.104(6) or the recording of an 7223 instrument that transfers title to a unit in the common interest 7224 community which is not accompanied by a recorded assignment of 7225 developer rights in favor of the grantee of such unit, whichever 7226 occurs first, for the first common interest community it 7227 operates; or, in the case of an association operating a phase 7228 common interest community created pursuant to s. 718.403 7229condominium, 7 years after the date of the recording of the 7230 certificate of a surveyor and mapper pursuant to s. 718.104(6) 7231718.104(4)(e)or the recording of an instrument that transfers 7232 title to a unit in the common interest community which is not 7233 accompanied by a recorded assignment of developer rights in 7234 favor of the grantee of such unit, whichever occurs first, for7235the first condominium it operates; or, in the case of an7236association operating a phase condominium created pursuant to s.7237718.403, 7 years after the date of the recording of the7238certificate of a surveyor and mapper pursuant to s.7239718.104(4)(e) or the recording of an instrument that transfers7240title to a unit which is not accompanied by a recorded7241assignment of developer rights in favor of the grantee of such7242unit, whichever occurs first. 7243 7244 The developer is entitled to elect at least one member of the 7245 board of administration of an association as long as the 7246 developer holds for sale in the ordinary course of business at 7247 least 5 percent, in common interest communitiescondominiums7248 with fewer than 500 units, and 2 percent, in common interest 7249 communitiescondominiumswith more than 500 units, of the units 7250 in a common interest communitycondominiumoperated by the 7251 association. After the developer relinquishes control of the 7252 association, the developer may exercise the right to vote any 7253 developer-owned units in the same manner as any other unit owner 7254 except for purposes of reacquiring control of the association or 7255 selecting the majority members of the board of administration. 7256 (2) Within 75 days after the unit owners other than the 7257 developer are entitled to elect a member or members of the board 7258 of administration of an association, the association shall call, 7259 and give not less than 60 days’ notice of an election for the 7260 members of the board of administration. The election shall 7261 proceed as provided in s. 718.112(2)(d). The notice may be given 7262 by any unit owner if the association fails to do so. Upon 7263 election of the first unit owner other than the developer to the 7264 board of administration, the developer shall forward to the 7265 division the name and mailing address of the unit owner board 7266 member. 7267 (3) If a developer holds units for sale in the ordinary 7268 course of business, none of the following actions may be taken 7269 without approval in writing by the developer: 7270 (a) Assessment of the developer as a unit owner for capital 7271 improvements. 7272 (b) Any action by the association that would be detrimental 7273 to the sales of units by the developer. However, an increase in 7274 assessments for common expenses without discrimination against 7275 the developer shall not be deemed to be detrimental to the sales 7276 of units. 7277 (4) At the time that unit owners other than the developer 7278 elect a majority of the members of the board of administration 7279 of an association, the developer shall relinquish control of the 7280 association, and the unit owners shall accept control. 7281 Simultaneously, or for the purposes of paragraph (c) not more 7282 than 90 days thereafter, the developer shall deliver to the 7283 association, at the developer’s expense, all property of the 7284 unit owners and of the association which is held or controlled 7285 by the developer, including, but not limited to, the following 7286 items, if applicable, as to each common interest community 7287condominiumoperated by the association: 7288 (a)1. The original or a photocopy of the recorded documents 7289declarationof the common interest communitycondominiumand all 7290 amendments thereto. If a photocopy is provided, it must be 7291 certified by affidavit of the developer or an officer or agent 7292 of the developer as being a complete copy of the actual recorded 7293 documentsdeclaration. 7294 2. A certified copy of the articles of incorporation of the 7295 association or, if the association was created prior to the 7296 effective date of this act and it is not incorporated, copies of 7297 the documents creating the association. 7298 3. A copy of the bylaws. 7299 4. The minute books, including all minutes, and other books 7300 and records of the association, if any. 7301 5. Any house rules and regulations that have been 7302 promulgated. 7303 (b) Resignations of officers and members of the board of 7304 administration who are required to resign because the developer 7305 is required to relinquish control of the association. 7306 (c) The financial records, including financial statements 7307 of the association, and source documents from the incorporation 7308 of the association through the date of turnover. The records 7309 must be audited for the period from the incorporation of the 7310 association or from the period covered by the last audit, if an 7311 audit has been performed for each fiscal year since 7312 incorporation, by an independent certified public accountant. 7313 All financial statements must be prepared in accordance with 7314 generally accepted accounting principles and must be audited in 7315 accordance with generally accepted auditing standards, as 7316 prescribed by the Florida Board of Accountancy, pursuant to 7317 chapter 473. The accountant performing the audit shall examine 7318 to the extent necessary supporting documents and records, 7319 including the cash disbursements and related paid invoices to 7320 determine if expenditures were for association purposes and the 7321 billings, cash receipts, and related records to determine that 7322 the developer was charged and paid the proper amounts of 7323 assessments. 7324 (d) Association funds or control thereof. 7325 (e) All tangible personal property that is property of the 7326 association, which is represented by the developer to be part of 7327 the common elements or which is ostensibly part of the common 7328 elements, and an inventory of that property. 7329 (f) A copy of the plans and specifications utilized in the 7330 construction or remodeling of improvements and the supplying of 7331 equipment to the common interest communitycondominiumand in 7332 the construction and installation of all mechanical components 7333 serving the improvements and the site with a certificate in 7334 affidavit form of the developer or the developer’s agent or an 7335 architect or engineer authorized to practice in this state that 7336 such plans and specifications represent, to the best of his or 7337 her knowledge and belief, the actual plans and specifications 7338 utilized in the construction and improvement of the common 7339 interest communitycondominiumproperty and for the construction 7340 and installation of the mechanical components serving the 7341 improvements. If the common interest communitycondominium7342 property has been declared a common interest community 7343condominiummore than 3 years after the completion of 7344 construction or remodeling of the improvements, the requirements 7345 of this paragraph do not apply. 7346 (g) A list of the names and addresses of all contractors, 7347 subcontractors, and suppliers utilized in the construction or 7348 remodeling of the improvements and in the landscaping of the 7349 common interest communitycondominiumor association property 7350 which the developer had knowledge of at any time in the 7351 development of the common interest communitycondominium. 7352 (h) Insurance policies. 7353 (i) Copies of any certificates of occupancy that may have 7354 been issued for the common interest communitycondominium7355 property. 7356 (j) Any other permits applicable to the common interest 7357 communitycondominiumproperty which have been issued by 7358 governmental bodies and are in force or were issued within 1 7359 year prior to the date the unit owners other than the developer 7360 took control of the association. 7361 (k) All written warranties of the contractor, 7362 subcontractors, suppliers, and manufacturers, if any, that are 7363 still effective. 7364 (l) A roster of unit owners and their addresses and 7365 telephone numbers, if known, as shown on the developer’s 7366 records. 7367 (m) Leases of the common elements and other leases to which 7368 the association is a party. 7369 (n) Employment contracts or service contracts in which the 7370 association is one of the contracting parties or service 7371 contracts in which the association or the unit owners have an 7372 obligation or responsibility, directly or indirectly, to pay 7373 some or all of the fee or charge of the person or persons 7374 performing the service. 7375 (o) All other contracts to which the association is a 7376 party. 7377 (p) A report included in the official records, under seal 7378 of an architect or engineer authorized to practice in this 7379 state, attesting to required maintenance, useful life, and 7380 replacement costs of the following applicable common elements 7381 comprising a turnover inspection report: 7382 1. Roof. 7383 2. Structure. 7384 3. Fireproofing and fire protection systems. 7385 4. Elevators. 7386 5. Heating and cooling systems. 7387 6. Plumbing. 7388 7. Electrical systems. 7389 8. Swimming pool or spa and equipment. 7390 9. Seawalls. 7391 10. Pavement and parking areas. 7392 11. Drainage systems. 7393 12. Painting. 7394 13. Irrigation systems. 7395 (q) A copy of the certificate of a surveyor and mapper 7396 recorded pursuant to s. 718.104(6)718.104(4)(e)or the recorded 7397 instrument that transfers title to a unit in the common interest 7398 communitycondominiumwhich is not accompanied by a recorded 7399 assignment of developer rights in favor of the grantee of such 7400 unit, whichever occurred first. 7401 (5) If, during the period beforeprior tothe time that the 7402 developer relinquishes control of the association pursuant to 7403 subsection (4), any provision of the Common Interest Community 7404CondominiumAct or any rule adoptedpromulgatedthereunder is 7405 violated by the association, the developer is responsible for 7406 such violation and is subject to the administrative action 7407 provided in this chapter for such violation or violations and is 7408 liable for such violation or violations to third parties. This 7409 subsection is intended to clarify existing law. 7410 (6) BeforePrior tothe developer relinquishes 7411relinquishingcontrol of the association pursuant to subsection 7412 (4), actions taken by members of the board of administration 7413 designated by the developer are considered actions taken by the 7414 developer, and the developer is responsible to the association 7415 and its members for all such actions. 7416 (7) In any claim against a developer by an association 7417 alleging a defect in design, structural elements, construction, 7418 or any mechanical, electrical, fire protection, plumbing, or 7419 other element that requires a licensed professional for design 7420 or installation under chapter 455, chapter 471, chapter 481, 7421 chapter 489, or chapter 633, such defect must be examined and 7422 certified by an appropriately licensed Florida engineer, design 7423 professional, contractor, or otherwise licensed Florida 7424 individual or entity. 7425 (8) The division has authority to adopt rules pursuant to 7426 the Administrative Procedure Act to ensure the efficient and 7427 effective transition from developer control of a common interest 7428 communitycondominiumto the establishment of a unit-owner 7429 controlled association. 7430 Section 83. Section 718.302, Florida Statutes, is amended 7431 to read: 7432 718.302 Agreements entered into by the association.— 7433 (1) Any grant or reservation made by a declaration, lease, 7434 or other document, and any contract made by an association 7435 beforeprior toassumption of control of the association by unit 7436 owners other than the developer, whichthatprovides for 7437 operation, maintenance, or management of a common interest 7438 communitycondominiumassociation or property serving the unit 7439 owners of a common interest communitycondominiumshall be fair 7440 and reasonable, and such grant, reservation, or contract may be 7441 canceled by unit owners other than the developer: 7442 (a) If the association operates only one common interest 7443 communitycondominiumand the unit owners other than the 7444 developer have assumed control of the association, or if unit 7445 owners other than the developer own not less than 75 percent of 7446 the voting interests in the common interest community 7447condominium, the cancellation shall be by concurrence of the 7448 owners of not less than 75 percent of the voting interests other 7449 than the voting interests owned by the developer. If a grant, 7450 reservation, or contract is so canceled and the unit owners 7451 other than the developer have not assumed control of the 7452 association, the association shall make a new contract or 7453 otherwise provide for maintenance, management, or operation in 7454 lieu of the canceled obligation, at the direction of the owners 7455 of not less than a majority of the voting interests in the 7456 common interest communitycondominiumother than the voting 7457 interests owned by the developer. 7458 (b) If the association operates more than one common 7459 interest communitycondominiumand the unit owners other than 7460 the developer have not assumed control of the association, and 7461 if unit owners other than the developer own at least 75 percent 7462 of the voting interests in a common interest community 7463condominiumoperated by the association, any grant, reservation, 7464 or contract for maintenance, management, or operation of 7465 buildings containing the units in that common interest community 7466condominiumor of improvements used only by unit owners of that 7467 common interest communitycondominiummay be canceled by 7468 concurrence of the owners of at least 75 percent of the voting 7469 interests in the common interest communitycondominiumother 7470 than the voting interests owned by the developer. No grant, 7471 reservation, or contract for maintenance, management, or 7472 operation of recreational areas or any other property serving 7473 more than one common interest communitycondominium, and 7474 operated by more than one association, may be canceled except 7475 pursuant to paragraph (d). 7476 (c) If the association operates more than one common 7477 interest communitycondominiumand the unit owners other than 7478 the developer have assumed control of the association, the 7479 cancellation shall be by concurrence of the owners of not less 7480 than 75 percent of the total number of voting interests in all 7481 common interest communitiescondominiumsoperated by the 7482 association other than the voting interests owned by the 7483 developer. 7484 (d) If the owners of units in a common interest community 7485condominiumhave the right to use property in common with owners 7486 of units in other common interest communitiescondominiumsand 7487 those common interest communitiescondominiumsare operated by 7488 more than one association, no grant, reservation, or contract 7489 for maintenance, management, or operation of the property 7490 serving more than one common interest communitycondominiummay 7491 be canceled until unit owners other than the developer have 7492 assumed control of all of the associations operating the common 7493 interest communitiescondominiumsthat are to be served by the 7494 recreational area or other property, after which cancellation 7495 may be effected by concurrence of the owners of not less than 75 7496 percent of the total number of voting interests in those common 7497 interest communitiescondominiumsother than voting interests 7498 owned by the developer. 7499 (2) Any grant or reservation made by a declaration, lease, 7500 or other document, or any contract made by the developer or 7501 association prior to the time when unit owners other than the 7502 developer elect a majority of the board of administration, which 7503 grant, reservation, or contract requires the association to 7504 purchase common interest communitycondominiumproperty or to 7505 lease common interest communitycondominiumproperty to another 7506 party, shall be deemed ratified unless rejected by a majority of 7507 the voting interests of unit owners other than the developer 7508 within 18 months after unit owners other than the developer 7509 elect a majority of the board of administration. This subsection 7510 does not apply to any grant or reservation made by documentsa7511declarationwhereby persons other than the developer or the 7512 developer’s heirs, assigns, affiliates, directors, officers, or 7513 employees are granted the right to use the common interest 7514 communitycondominiumproperty, so long as such persons are 7515 obligated to pay, at a minimum, a proportionate share of the 7516 cost associated with such property. 7517 (3) Any grant or reservation made by documentsa7518declaration, a lease, or other document, and any contract made 7519 by an association, whether before or after assumption of control 7520 of the association by unit owners other than the developer, that 7521 provides for operation, maintenance, or management of a common 7522 interest communitycondominiumassociation or property serving 7523 the unit owners of a common interest communitycondominiumshall 7524 not be in conflict with the powers and duties of the association 7525 or the rights of the unit owners as provided in this chapter. 7526 This subsection is intended only as a clarification of existing 7527 law. 7528 (4) Any grant or reservation made by documentsa7529declaration, a lease, or other document, and any contract made 7530 by an association prior to assumption of control of the 7531 association by unit owners other than the developer, shall be 7532 fair and reasonable. 7533 (5) It is declared that the public policy of this state 7534 prohibits the inclusion or enforcement of escalation clauses in 7535 management contracts for common interest communities 7536condominiums, and such clauses are hereby declared void for 7537 public policy. For the purposes of this section, an escalation 7538 clause is any clause in a common interest communitycondominium7539 management contract which provides that the fee under the 7540 contract shall increase at the same percentage rate as any 7541 nationally recognized and conveniently available commodity or 7542 consumer price index. 7543 (6) Any action to compel compliance with the provisions of 7544 this section or of s. 718.301 may be brought pursuant to the 7545 summary procedure provided for in s. 51.011. In any such action 7546 brought to compel compliance with the provisions of s. 718.301, 7547 the prevailing party is entitled to recover reasonable attorney 7548attorney’sfees. 7549 Section 84. Section 718.3025, Florida Statutes, is amended 7550 to read: 7551 718.3025 Agreements for operation, maintenance, or 7552 management of common interest communitiescondominiums; specific 7553 requirements.— 7554 (1) No written contract between a party contracting to 7555 provide maintenance or management services and an association 7556 which contract provides for operation, maintenance, or 7557 management of a common interest communitycondominium7558 association or property serving the unit owners of a common 7559 interest communitycondominiumshall be valid or enforceable 7560 unless the contract: 7561 (a) Specifies the services, obligations, and 7562 responsibilities of the party contracting to provide maintenance 7563 or management services to the unit owners. 7564 (b) Specifies those costs incurred in the performance of 7565 those services, obligations, or responsibilities which are to be 7566 reimbursed by the association to the party contracting to 7567 provide maintenance or management services. 7568 (c) Provides an indication of how often each service, 7569 obligation, or responsibility is to be performed, whether stated 7570 for each service, obligation, or responsibility or in categories 7571 thereof. 7572 (d) Specifies a minimum number of personnel to be employed 7573 by the party contracting to provide maintenance or management 7574 services for the purpose of providing service to the 7575 association. 7576 (e) Discloses any financial or ownership interest that 7577whichthe developer, if the developer is in control of the 7578 association, holds with regard to the party contracting to 7579 provide maintenance or management services. 7580 (f) Discloses any financial or ownership interest a board 7581 member or any party providing maintenance or management services 7582 to the association holds with the contracting party. 7583 (2) IfIn any case in whichthe party contracting to 7584 provide maintenance or management services fails to provide such 7585 services in accordance with the contract, the association is 7586 authorized to procure such services from some other party and 7587 shall be entitled to collect any fees or charges paid for 7588 service performed by another party from the party contracting to 7589 provide maintenance or management services. 7590 (3) Any services or obligations not stated on the face of 7591 the contract shall be unenforceable. 7592 (4) Notwithstanding the fact that certain vendors contract 7593 with associations to maintain equipment or property thatwhich7594 is made available to serve unit owners, it is the intent of the 7595 Legislature that this section applies to contracts for 7596 maintenance or management services for which the association 7597 pays compensation. This section does not apply to contracts for 7598 services or property made available for the convenience of unit 7599 owners by lessees or licensees of the association, such as coin 7600 operated laundry, food, soft drink, or telephone vendors; cable 7601 television operators; retail store operators; businesses; 7602 restaurants; or similar vendors. 7603 Section 85. Section 718.3026, Florida Statutes, is amended 7604 to read: 7605 718.3026 Contracts for products and services; in writing; 7606 bids; exceptions.—Associations with 10 or fewer units may opt 7607 out of the provisions of this section if two-thirds of the unit 7608 owners vote to do so, which opt-out may be accomplished by a 7609 proxy specifically setting forth the exception from this 7610 section. 7611 (1) All contracts as further described herein or any 7612 contract that is not to be fully performed within 1 year after 7613 the making thereof, for the purchase, lease, or renting of 7614 materials or equipment to be used by the association in 7615 accomplishing its purposes under this chapter, and all contracts 7616 for the provision of services, shall be in writing. If a 7617 contract for the purchase, lease, or renting of materials or 7618 equipment, or for the provision of services, requires payment by 7619 the association on behalf of any common interest community 7620condominiumoperated by the association in the aggregate that 7621 exceeds 5 percent of the total annual budget of the association, 7622 including reserves, the association shall obtain competitive 7623 bids for the materials, equipment, or services. Nothing 7624 contained herein shall be construed to require the association 7625 to accept the lowest bid. 7626 (2)(a) Notwithstanding the foregoing, contracts with 7627 employees of the association, and contracts for attorney, 7628 accountant, architect, community association manager, timeshare 7629 management firm, engineering, and landscape architect services 7630 are not subject to the provisions of this section. 7631 (b) Nothing contained herein is intended to limit the 7632 ability of an association to obtain needed products and services 7633 in an emergency. 7634 (c) This section shall not apply if the business entity 7635 with which the association desires to enter into a contract is 7636 the only source of supply within the county serving the 7637 association. 7638 (d) Nothing contained herein shall excuse a party 7639 contracting to provide maintenance or management services from 7640 compliance with s. 718.3025. 7641 (3) As to any contract or other transaction between an 7642 association and one or more of its directors or any other 7643 corporation, firm, association, or entity in which one or more 7644 of its directors are directors or officers or are financially 7645 interested: 7646 (a) The association shall comply with the requirements of 7647 s. 617.0832. 7648 (b) The disclosures required by s. 617.0832 shall be 7649 entered into the written minutes of the meeting. 7650 (c) Approval of the contract or other transaction shall 7651 require an affirmative vote of two-thirds of the directors 7652 present. 7653 (d) At the next regular or special meeting of the members, 7654 the existence of the contract or other transaction shall be 7655 disclosed to the members. Upon motion of any member, the 7656 contract or transaction shall be brought up for a vote and may 7657 be canceled by a majority vote of the members present. Should 7658 the members cancel the contract, the association shall only be 7659 liable for the reasonable value of goods and services provided 7660 up to the time of cancellation and shall not be liable for any 7661 termination fee, liquidated damages, or other form of penalty 7662 for such cancellation. 7663 Section 86. Subsections (1), (4), (5), and (6), of section 7664 718.303, Florida Statutes, are amended to read: 7665 718.303 Obligations of owners and occupants; remedies.— 7666 (1) Each unit owner, each tenant and other invitee, and 7667 each association is governed by, and must comply with the 7668 provisions of, this chapter, the declaration, the documents 7669 creating the association, and the association bylaws thatwhich7670 shall be deemed expressly incorporated into any lease of a unit. 7671 Actions for damages or for injunctive relief, or both, for 7672 failure to comply with these provisions may be brought by the 7673 association or by a unit owner against: 7674 (a) The association. 7675 (b) A unit owner. 7676 (c) Directors designated by the developer, for actions 7677 taken by them before control of the association is assumed by 7678 unit owners other than the developer. 7679 (d) Any director who willfully and knowingly fails to 7680 comply with these provisions. 7681 (e) Any tenant leasing a unit, and any other invitee 7682 occupying a unit. 7683 7684 The prevailing party in any such action or in any action in 7685 which the purchaser claims a right of voidability based upon 7686 contractual provisions as required in s. 718.503(1)(a) is 7687 entitled to recover reasonable attorneyattorney’sfees. A unit 7688 owner prevailing in an action between the association and the 7689 unit owner under this section, in addition to recovering his or 7690 her reasonable attorneyattorney’sfees, may recover additional 7691 amounts as determined by the court to be necessary to reimburse 7692 the unit owner for his or her share of assessments levied by the 7693 association to fund its expenses of the litigation. This relief 7694 does not exclude other remedies provided by law. Actions arising 7695 under this subsection may not be deemed to be actions for 7696 specific performance. 7697 (4) If a unit owner is more than 6090days delinquent in 7698 paying a fee, fine, or other monetary obligation due to the 7699 association, the association may suspend the right of the unit 7700 owner or the unit’s occupant, licensee, or invitee to use common 7701 elements, common facilities, or any other association property 7702 until the fee, fine, or other monetary obligation is paid in 7703 full. This subsection does not apply to limited common elements 7704 intended to be used only by that unit, common elements needed to 7705 access the unit, utility services provided to the unit, parking 7706 spaces, or elevators. The notice and hearing requirements under 7707 subsection (3) do not apply to suspensions imposed under this 7708 subsection. 7709 (5) An association may suspend the voting rights of a unit 7710 or member due to nonpayment of any fee, fine, or other monetary 7711 obligation due to the association which is more than 6090days 7712 delinquent. A voting interest or consent right allocated to a 7713 unit or member which has been suspended by the association shall 7714 be subtracted from the total number of voting interests in the 7715 association, which shall be reduced by the number of suspended 7716 voting interests in the association, which shall be reduced by 7717 the number of suspended voting interests when calculating the 7718 total percentage or number of all voting interests available to 7719 take or approve any action, and the suspended voting interests 7720 shall not be considered for any purpose, including, but not 7721 limited to, the percentage or number of voting interests when 7722 calculating the total percentage or number of all voting 7723 interests available to take or approve any action, and the 7724 suspended voting interests shall not be considered for any 7725 purpose, including, but not limited to, the percentage or number 7726 of voting interests necessary to constitute a quorum, the 7727 percentage or number of voting interests required to conduct an 7728 election, or the percentage or number of voting interests 7729 required to approve an action under this chapter or pursuant to 7730 the documentsdeclaration, articles of incorporation, or bylaws. 7731 The suspension ends upon full payment of all obligations 7732 currently due or overdue the association. The notice and hearing 7733 requirements under subsection (3) do not apply to a suspension 7734 imposed under this subsection. 7735 (6) All fines and suspensionsimposed pursuant to7736subsection (4) or subsection (5)must be approved at a properly 7737 noticed board meeting. Upon approval, the association must 7738 notify the unit owner and, if applicable, the unit’s occupant, 7739 licensee, or invitee by mail or hand delivery. 7740 Section 87. Section 718.401, Florida Statutes, is amended 7741 to read: 7742 718.401 Leaseholds.— 7743 (1) A common interest communitycondominiummay be created 7744 on lands held under lease or may include recreational facilities 7745 or other common elements or commonly used facilities on a 7746 leasehold if, on the date the first unit is conveyed by the 7747 developer to a bona fide purchaser, the lease has an unexpired 7748 term of at least 50 years. However, if the common interest 7749 communitycondominiumconstitutes a nonresidential common 7750 interest communitycondominiumor commercial common interest 7751 communitycondominium, or a timeshare common interest community 7752condominiumcreated pursuant to chapter 721, the lease shall 7753 have an unexpired term of at least 30 years. If rent under the 7754 lease is payable by the association or by the unit owners, the 7755 lease shall include the following requirements: 7756 (a) The leased land must be identified by a description 7757 that is sufficient to pass title, and the leased personal 7758 property must be identified by a general description of the 7759 items of personal property and the approximate number of each 7760 item of personal property that the developer is committing to 7761 furnish for each room or other facility. In the alternative, the 7762 personal property may be identified by a representation as to 7763 the minimum amount of expenditure that will be made to purchase 7764 the personal property for the facility. Unless the lease is of a 7765 unit, the identification of the land shall be supplemented by a 7766 survey showing the relation of the leased land to the land 7767 included in the common elements. This provision shall not 7768 prohibit adding additional land or personal property in 7769 accordance with the terms of the lease, provided there is no 7770 increase in rent or material increase in maintenance costs to 7771 the individual unit owner. 7772 (b) The lease shall not contain a reservation of the right 7773 of possession or control of the leased property by the lessor or 7774 any person other than unit owners or the association and shall 7775 not create rights to possession or use of the leased property in 7776 any parties other than the association or unit owners of the 7777 common interest communitycondominiumto be served by the leased 7778 property, unless the reservations and rights created are 7779 conspicuously disclosed. Any provision for use of the leased 7780 property by anyone other than unit owners of the common interest 7781 communitycondominiumto be served by the leased property shall 7782 require the other users to pay a fair and reasonable share of 7783 the maintenance and repair obligations and other exactions due 7784 from users of the leased property. 7785 (c) The lease shall state the minimum number of unit owners 7786 that will be required, directly or indirectly, to pay the rent 7787 under the lease and the maximum number of units that will be 7788 served by the leased property. The limitation of the number of 7789 units to be served shall not preclude enlargement of the 7790 facilities leased and an increase in their capacity, if approved 7791 by the association operating the leased property after unit 7792 owners other than the developer have assumed control of the 7793 association. The provisions of this paragraph do not apply if 7794 the lessor is the Government of the United States or this state 7795 or any political subdivision thereof or any agency of any 7796 political subdivision thereof. 7797 (d)1. In any action by the lessor to enforce a lien for 7798 rent payable or in any action by the association or a unit owner 7799 with respect to the obligations of the lessee or the lessor 7800 under the lease, the unit owner or the association may raise any 7801 issue or interpose any defense, legal or equitable, that he or 7802 she or it may have with respect to the lessor’s obligations 7803 under the lease. If the unit owner or the association initiates 7804 any action or interposes any defense other than payment of rent 7805 under the lease, the unit owner or the association shall, upon 7806 service of process upon the lessor, pay into the registry of the 7807 court any allegedly accrued rent and the rent which accrues 7808 during the pendency of the proceeding, when due. If the unit 7809 owner or the association fails to pay the rent into the registry 7810 of the court, the failure constitutes an absolute waiver of the 7811 unit owner’s or association’s defenses other than payment, and 7812 the lessor is entitled to default. The unit owner or the 7813 association shall notify the lessor of any deposits. When the 7814 unit owner or the association has deposited the required funds 7815 into the registry of the court, the lessor may apply to the 7816 court for disbursement of all or part of the funds shown to be 7817 necessary for the payment of taxes, mortgage payments, 7818 maintenance and operating expenses, and other necessary expenses 7819 incident to maintaining and equipping the leased facilities or 7820 necessary for the payment of other expenses arising out of 7821 personal hardship resulting from the loss of rental income from 7822 the leased facilities. The court, after an evidentiary hearing, 7823 may award all or part of the funds on deposit to the lessor for 7824 such purpose. The court shall require the lessor to post bond or 7825 other security, as a condition to the release of funds from the 7826 registry, when the value of the leased land and improvements, 7827 apart from the lease itself, is inadequate to fully secure the 7828 sum of existing encumbrances on the leased property and the 7829 amounts released from the court registry. 7830 2. When the association or unit owners have deposited funds 7831 into the registry of the court pursuant to this subsection and 7832 the unit owners and association have otherwise complied with 7833 their obligations under the lease or agreement, other than 7834 paying rent into the registry of the court rather than to the 7835 lessor, the lessor cannot hold the association or unit owners in 7836 default on their rental payments nor may the lessor file liens 7837 or initiate foreclosure proceedings against unit owners. If the 7838 lessor, in violation of this subsection, attempts such liens or 7839 foreclosures, then the lessor may be liable for damages plus 7840 attorneyattorney’sfees and costs that the association or unit 7841 owners incurred in satisfying those liens or foreclosures. 78423. Nothing in this paragraph affects litigation commenced7843prior to October 1, 1979.7844 (e) If the lease is of recreational facilities or other 7845 commonly used facilities that are not completed, rent shall not 7846 commence until some of the facilities are completed. Until all 7847 of the facilities leased are completed, rent shall be prorated 7848 and paid only for the completed facilities in the proportion 7849 that the value of the completed facilities bears to the 7850 estimated value, when completed, of all of the facilities that 7851 are leased. The facilities shall be complete when they have been 7852 constructed, finished, and equipped and are available for use. 7853 (f)1. A lease of recreational or other commonly used 7854 facilities entered into by the association or unit owners prior 7855 to the time when the control of the association is turned over 7856 to unit owners other than the developer shall grant to the 7857 lessee an option to purchase the leased property, payable in 7858 cash, on any anniversary date of the beginning of the lease term 7859 after the 10th anniversary, at a price then determined by 7860 agreement. If there is no agreement as to the price, then the 7861 price shall be determined by arbitration conducted pursuant to 7862 chapter 44 or chapter 682.This paragraph shall be applied to7863contracts entered into on, before, or after January 1, 1977,7864regardless of the duration of the lease.7865 2. If the lessor wishes to sell his or her interest and has 7866 received a bona fide offer to purchase it, the lessor shall send 7867 the association and each unit owner a copy of the executed 7868 offer. For 90 days following receipt of the offer by the 7869 association or unit owners, the association or unit owners have 7870 the option to purchase the interest on the terms and conditions 7871 in the offer. The option shall be exercised, if at all, by 7872 notice in writing given to the lessor within the 90-day period. 7873 If the association or unit owners do not exercise the option, 7874 the lessor shall have the right, for a period of 60 days after 7875 the 90-day period has expired, to complete the transaction 7876 described in the offer to purchase. If for any reason such 7877 transaction is not concluded within the 60 days, the offer shall 7878 have been abandoned, and the provisions of this subsection shall 7879 be reimposed. 7880 3. The option shall be exercised upon approval by owners of 7881 two-thirds of the units served by the leased property. 7882 4. The provisions of this paragraph do not apply to a 7883 nonresidential common interest communitycondominiumand do not 7884 apply if the lessor is the Government of the United States or 7885 this state or any political subdivision thereof or, in the case 7886 of an underlying land lease, a person or entity thatwhichis 7887 not the developer or directly or indirectly owned or controlled 7888 by the developer and did not obtain, directly or indirectly, 7889 ownership of the leased property from the developer. 7890 (g) The lease or a subordination agreement executed by the 7891 lessor must provideeither:78921. That any lien which encumbers a unit for rent or other7893moneys or exactions payable is subordinate to any mortgage held7894by an institutional lender, or78952.that, upon the foreclosure of any mortgage held by an 7896 institutional lender or upon delivery of a deed in lieu of 7897 foreclosure, the lien for the unit owner’s share of the rent or 7898 other exactions shall not be extinguished but shall be 7899 foreclosed and unenforceable against the mortgagee with respect 7900 to that unit’s share of the rent and other exactions thatwhich7901 mature or become due and payable on or before the date of the 7902 final judgment of foreclosure, in the event of foreclosure, or 7903 on or before the date of delivery of the deed in lieu of 7904 foreclosure. The lien may, however, automatically and by 7905 operation of the lease or other instrument, reattach to the unit 7906 and secure the payment of the unit’s proportionate share of the 7907 rent or other exactions coming due subsequent to the date of 7908 final decree of foreclosure or the date of delivery of the deed 7909 in lieu of foreclosure. The provisions of this paragraph do not 7910 apply if the lessor is the Government of the United States or 7911 this state or any political subdivision thereof or any agency of 7912 any political subdivision thereof. 7913(2) Subsection (1) does not apply to residential7914cooperatives created prior to January 1, 1977, which are7915converted to condominium ownership by the cooperative unit7916owners or their association after control of the association has7917been transferred to the unit owners if, following the7918conversion, the unit owners will be the same persons who were7919unit owners of the cooperative and no units are offered for sale7920or lease to the public as part of the plan of conversion.7921 (2)(3)If rent under the lease is a fixed amount for the 7922 full duration of the lease, and the rent thereunder is payable 7923 by a person or persons other than the association or the unit 7924 owners, the division director has the discretion to accept 7925 alternative assurances thatwhichare sufficient to secure the 7926 payment of rent, including, but not limited to, annuities with 7927 an insurance company authorized to do business in this state, 7928 the beneficiary of which shall be the association, or cash 7929 deposits in trust, the beneficiary of which shall be the 7930 association, thewhichdeposit shall be in an amount sufficient 7931 to generate interest sufficient to meet lease payments as they 7932 occur. If alternative assurances are accepted by the division 7933 director, the following provisions are applicable: 7934 (a) Disclosures contemplated by paragraph (1)(b), if not 7935 contained within the lease, may be made by the developer. 7936 (b) Disclosures as to the minimum number of unit owners 7937 that will be required, directly or indirectly, to pay the rent 7938 under the lease and the maximum number of units that will be 7939 served by the leased property, if not contained in the lease, 7940 may be stated by the developer. 7941 (c) The provisions of paragraphs (1)(d) and (e) apply but 7942 are not required to be stated in the lease. 7943 (d) The provisions of paragraph (1)(g) do not apply. 7944 Section 88. Section 718.4015, Florida Statutes, is amended 7945 to read: 7946 718.4015 Common interest communityCondominiumleases; 7947 escalation clauses.— 7948 (1) It is declared that the public policy of this state 7949 prohibits the inclusion or enforcement of escalation clauses in 7950 land leases or other leases or agreements for recreational 7951 facilities, land, or other commonly used facilities serving 7952 residential common interest communitiescondominiums, and such 7953 clauses are hereby declared void for public policy. For the 7954 purposes of this section, an escalation clause is any clause in 7955 a common interest communitycondominiumlease or agreement which 7956 provides that the rental under the lease or agreement shall 7957 increase at the same percentage rate as any nationally 7958 recognized and conveniently available commodity or consumer 7959 price index. 7960 (2) This public policy prohibits the inclusion or 7961 enforcement of such escalation clauses in leases related to 7962 common interest communities ifcondominiums for whichthe 7963 documentsdeclarationof the common interest community 7964condominiumwas recorded on or after June 4, 1975; it prohibits 7965 the enforcement of escalation clauses in leases related to 7966 common interest communities ifcondominiums for whichthe 7967 documentsdeclarationof the common interest community 7968condominiumwas recorded beforeprior toJune 4, 1975, but which 7969 have been refused enforcement on the grounds that the parties 7970 agreed to be bound by subsequent amendments to the Florida 7971 Statutes or which have been found to be void because of a 7972 finding that such lease is unconscionable or which have been 7973 refused enforcement on the basis of the application of former s. 7974 711.231 or former s. 718.401(8); and it prohibits any further 7975 escalation of rental fees after October 1, 1988, pursuant to 7976 escalation clauses in leases related to common interest 7977 communities ifcondominiums for whichthe declaration was 7978 recorded beforeprior toJune 4, 1975. 7979 (3) The provisions of this section do not apply if the 7980 lessor is the Government of the United States or this state or 7981 any political subdivision thereof or any agency of any political 7982 subdivision thereof. 7983 Section 89. Section 718.402, Florida Statutes, is amended 7984 to read: 7985 718.402 Conversion of existing improvements to common 7986 interest communitycondominium.—A developer may create a common 7987 interest communitycondominiumby converting existing, 7988 previously occupied improvements to such ownership by complying 7989 with part I of this chapter. A developer of a residential common 7990 interest communitycondominiummust also comply with part VI of 7991 this chapter, but the failure to comply will not affect the 7992 validity of the common interest communitycondominium. 7993 Section 90. Section 718.403, Florida Statutes, is amended 7994 to read: 7995 718.403 Phase common interest communitiescondominiums.— 7996 (1) Notwithstanding the provisions of s. 718.110, a 7997 developer may develop a common interest communitycondominiumin 7998 phases, if the original documentsdeclarationof a common 7999 interest communitycondominiumsubmitting the initial phase to 8000 common interest communitycondominiumownership or an amendment 8001 to the documentsdeclarationwhich has beenapproved by all of 8002 the unit owners and unit mortgagees provides for and describes 8003 in detail all anticipated phases; the impact, if any, which the 8004 completion of subsequent phases would have upon the initial 8005 phase; and the time period within which all phases must be added 8006 to the common interest communitycondominiumand comply with the 8007 requirements of this section and at the end of which the right 8008 to add additional phases expires. 8009 (a) All phases must be added to the common interest 8010 communitycondominiumwithin 7 years after the date of the 8011 recording of the certificate of a surveyor and mapper pursuant 8012 to s. 718.104(6)718.104(4)(e)or the recording of an instrument 8013 that transfers title to a unit in the common interest community 8014condominiumwhich is not accompanied by a recorded assignment of 8015 developer rights in favor of the grantee of such unit, whichever 8016 occurs first, unless the unit owners vote to approve an 8017 amendment extending the 7-year period pursuant to paragraph (b). 8018 (b) An amendment to extend the 7-year period shall require 8019 the approval of the owners necessary to amend the common 8020 interest community documentsdeclaration of condominiumpursuant 8021 to s. 718.110(1)718.110(1)(a). An extension of the 7-year 8022 period may be submitted for approval only during the last 3 8023 years of the 7-year period. 8024 (c) An amendment must describe the time period within which 8025 all phases must be added to the common interest community 8026condominium, and such time period may not exceed 10 years from 8027 the date of the recording of the certificate of a surveyor and 8028 mapper pursuant to s. 718.104(6)718.104(4)(e)or the recording 8029 of an instrument that transfers title to a unit in the common 8030 interest communitycondominiumwhich is not accompanied by a 8031 recorded assignment of developer rights in favor of the grantee 8032 of such unit, whichever occurs first. 8033 (d) An amendment that extends the 7-year period pursuant to 8034 this section is not subject to the requirements of s. 8035 718.110(4). 8036 (2) The original documentsdeclarationof the common 8037 interest communitycondominium, or an amendment to the 8038 declaration, whichamendmenthas been approved by all unit 8039 owners and unit mortgagees and the developer, shall describe: 8040 (a) The land thatwhichmay become part of the common 8041 interest communitycondominiumand the land on which each phase 8042 is to be built. The descriptions shall include metes and bounds 8043 or other legal descriptions of the land for each phase, plot 8044 plans, and surveys. Plot plans, attached as an exhibit, must 8045 show the approximate location of all existing and proposed 8046 buildings and improvements that may ultimately be contained 8047 within the common interest communitycondominium. The plot plan 8048 may be modified by the developer as to unit or building types 8049 but, in a residential common interest communitycondominium, 8050 only to the extent that such changes are described in the 8051 declaration. If provided in the declaration, the developer may 8052 make nonmaterial changes in the legal description of a phase. 8053 (b) The minimum and maximum numbers and general size of 8054 units to be included in each phase. The general size may be 8055 expressed in terms of minimum and maximum square feet. In 8056 stating the minimum and maximum numbers of units, the difference 8057 between the minimum and maximum numbers shall not be greater 8058 than 20 percent of the maximum. 8059 (c) Each unit’s percentage of ownership in the common 8060 elements as each phase is added. In lieu of describing specific 8061 percentages, the declaration or amendment may describe a formula 8062 for reallocating each unit’s proportion or percentage of 8063 ownership in the common elements and manner of sharing common 8064 expenses and owning common surplus as additional units are added 8065 to the common interest communitycondominiumby the addition of 8066 any land. The basis for allocating percentage of ownership among 8067 units in added phases shall be consistent with the basis for 8068 allocation made among the units originally in the common 8069 interest communitycondominium. 8070 (d) The recreational areas and facilities thatwhichwill 8071 be owned as common elements by all unit owners and all personal 8072 property to be provided as each phase is added to the common 8073 interest communitycondominiumand those facilities or areas 8074 thatwhichmay not be built or provided if any phase or phases 8075 are not developed and added as a part of the common interest 8076 communitycondominium. The developer may reserve the right to 8077 add additional common-element recreational facilities if the 8078 original documents containdeclaration containsa description of 8079 each type of facility and its proposed location. The declaration 8080 shall set forth the circumstances under which such facilities 8081 will be added. 8082 (e) The membership vote and ownership in the association 8083 attributable to each unit in each phase and the results if any 8084 phase or phases are not developed and added as a part of the 8085 common interest communitycondominium. 8086 (f) Whether or not timeshare estates will or may be created 8087 with respect to units in any phase and, if so, the degree, 8088 quantity, nature, and extent of such estates, specifying the 8089 minimum duration of the recurring periods of rights of use, 8090 possession, or occupancy that may be established with respect to 8091 any unit. 8092 (3) The developer shall notify owners of existing units of 8093 the decision not to add one or more additional phases. Notice 8094 shall be by first-class mail addressed to each owner at the 8095 address of his or her unit or at his or her last known address. 8096 (4) If one or more phases are not built, the units that 8097whichare built are entitled to 100 percent ownership of all 8098 common elements within the phases actually developed and added 8099 as a part of the common interest communitycondominium. 8100 (5) If the documents requiredeclaration requiresthe 8101 developer to convey any additional lands or facilities to the 8102 common interest communitycondominiumafter the completion of 8103 the first phase and he or she fails to do so within the time 8104 specified, or within a reasonable time if none is specified, 8105 then any owner of a unit or the association may enforce such 8106 obligations against the developer or bring an action against the 8107 developer for damages caused by the developer’s failure to 8108 convey to the association such additional lands or facilities. 8109 (6) Notwithstanding other provisions of this chapter, any 8110 amendment by the developer which adds any land to the common 8111 interest communitycondominiumshall be consistent with the 8112 provisions of the documentsdeclarationgranting such right and 8113 shall contain or provide for the following matters: 8114 (a) A statement submitting the additional land to common 8115 interest communitycondominiumownership as an addition to the 8116 common interest communitycondominium. 8117 (b) The legal description of the land being added to the 8118 common interest communitycondominium. 8119 (c)AnIdentification by letter, name, or number, or a 8120 combination thereof, of each unit within the land added to the 8121 common interest communitycondominium, to ensure that no unit in 8122 the common interest communitycondominium, including the 8123 additional land, will bear the same designation as any other 8124 unit. 8125 (d) A survey of the additional land and a graphic 8126 description of the improvements in which any units are located 8127 and a plot plan thereof and a certificate of a surveyor, in 8128 conformance with s. 718.104(6)718.104(4)(e). 8129 (e) The undivided share in the common elements appurtenant 8130 to each unit in the common interest communitycondominium, 8131 stated as a percentage or fraction which, in the aggregate, must 8132 equal the whole and must be determined in conformance with the 8133 manner of allocation set forth in the original documents 8134declarationof the common interest communitycondominium. 8135 (f) The proportion or percentage of, and the manner of 8136 sharing, common expenses and owning common surplus, which for a 8137 residential unit must be the same as the undivided share in the 8138 common elements. 8139 (7) An amendment thatwhichadds phases to a common 8140 interest communitycondominiumdoes not require the execution of 8141 such amendment or consent thereto by unit owners other than the 8142 developer, unless the amendment permits the creation of 8143 timeshare estates in any unit of the additional phase of the 8144 common interest communitycondominiumand such creation is not 8145 authorized by the original documentsdeclaration. 8146 (8)(7)An amendment to the documents declaration of the 8147 common interest communitycondominiumwhich adds land to the 8148 common interest communitycondominiumshall be recorded in the 8149 public records of the county where the land is located and shall 8150 be executed and acknowledged in compliance with the same 8151 requirements as for a deed. All persons who have record title to 8152 the interest in the land submitted to common interest community 8153condominiumownership, or their lawfully authorized agents, must 8154 join in the execution of the amendment. Every such amendment 8155 shall comply with the provisions of s. 718.104(3). 8156 (9)(8)Upon recording the documentsdeclarationof the 8157 common interest communitycondominiumor amendments adding 8158 phases pursuant to this section, the developer shall file the 8159 recording information with the division within 120 calendar days 8160 on a form prescribed by the division. 8161 (10)(9)Paragraphs (2)(b)-(f) and subsection (9)(8)do not 8162 apply to nonresidential common interest communities 8163condominiums. 8164 Section 91. Section 718.404, Florida Statutes, is amended 8165 to read: 8166 718.404 Mixed-use common interest communities 8167condominiums.—When a common interest communitycondominium8168 consists of both residential and commercial units, the following 8169 provisions shall apply: 8170 (1) The common interest communitycondominiumdocuments 8171 shall not provide that the owner of any commercial unit shall 8172 have the authority to veto amendments to the documents 8173declaration, articles of incorporation, bylaws, or rules or 8174 regulations of the association. This subsection shall apply 8175 retroactively as a remedial measure. 8176 (2) Subject to s. 718.301, where the number of residential 8177 units in the common interest communitycondominiumequals or 8178 exceeds 50 percent of the total units operated by the 8179 association, owners of the residential units shall be entitled 8180 to vote for a majority of the seats on the board of 8181 administration. This subsection shall apply retroactively as a 8182 remedial measure. 8183 (3) In the documentsdeclarationof the common interest 8184 communitycondominiumfor mixed-use common interest communities 8185condominiumscreated after January 1, 1996, the ownership share 8186 of the common elements assigned to each unit shall be based 8187 either on the total square footage of each unit in uniform 8188 relationship to the total square footage of each other unit in 8189 the common interest communitycondominiumor on an equal 8190 fractional basis. 8191 (4) The provisions of this section shall not apply to 8192 timeshare common interest communitiescondominiums. 8193 Section 92. Section 718.405, Florida Statutes, is amended 8194 to read: 8195 718.405 Multi-common interest communities 8196Multicondominiums; multi-common interest community 8197multicondominiumassociations.— 8198 (1) An association may operate more than one common 8199 interest communitycondominium. For multi-common interest 8200 communitiesmulticondominiumscreated on or after July 1, 2000, 8201 the documentsdeclarationfor each common interest community 8202condominiumto be operated by that association must provide for 8203 participation in a multi-common interest community 8204multicondominium, in conformity with this section, and disclose 8205 or describe: 8206 (a) The manner or formula by which the assets, liabilities, 8207 common surplus, and common expenses of the association will be 8208 apportioned among the units within the common interest 8209 communitiescondominiumsoperated by the association, in 8210 accordance with s. 718.104(6)718.104(4)(g) or (h), as8211applicable. 8212 (b) Whether unit owners in any other common interest 8213 communitycondominium, or any other persons, will or may have 8214 the right to use recreational areas or any other facilities or 8215 amenities that are common elements of the common interest 8216 communitycondominium, and, if so, the specific formula by which 8217 the other users will share the common expenses related to those 8218 facilities or amenities. 8219 (c) Recreational and other commonly used facilities or 8220 amenities thatwhichthe developer has committed to provide that 8221 will be owned, leased by, or dedicated by a recorded plat to the 8222 association but thatwhichare not included within any common 8223 interest communitycondominiumoperated by the association. The 8224 developer may reserve the right to add additional facilities or 8225 amenities if the declaration and prospectus for each common 8226 interest communitycondominiumto be operated by the association 8227 contains the following statement in conspicuous type and in 8228 substantially the following form: RECREATIONAL FACILITIES MAY BE 8229 EXPANDED OR ADDED WITHOUT CONSENT OF UNIT OWNERS OR THE 8230 ASSOCIATION. 8231 (d) The voting rights of the unit owners in the election of 8232 directors and in other multi-common interest community 8233multicondominiumassociation affairs when a vote of the owners 8234 is taken, including, but not limited to, a statement as to 8235 whether each unit owner will have a right to personally cast his 8236 or her own vote in all matters voted upon. 8237 (2) If any documents requiredeclaration requiresa 8238 developer to convey additional lands or facilities to a multi 8239 common interest communitymulticondominiumassociation and the 8240 developer fails to do so within the time specified, or within a 8241 reasonable time if none is specified in the documents 8242declaration, any unit owner or the association may enforce that 8243 obligation against the developer or bring an action against the 8244 developer for specific performance or for damages that result 8245 from the developer’s failure or refusal to convey the additional 8246 lands or facilities. 8247 (3) The documentsdeclarationfor each common interest 8248 communitycondominiumto be operated by a multi-common interest 8249 communitymulticondominiumassociation may not, at the time of 8250 the initial recording of the documentsdeclaration, contain any 8251 provision with respect to allocation of the association’s 8252 assets, liabilities, common surplus, or common expenses which is 8253 inconsistent with this chapter or the provisions of the 8254 documentsa declarationfor any other common interest community 8255condominiumthen being operated by the multi-common interest 8256 communitymulticondominiumassociation. 8257 (4) This section does not prevent or restrict the formation 8258 of a multi-common interest communitymulticondominiumby the 8259 merger or consolidation of two or more common interest community 8260condominiumassociations. Mergers or consolidations of 8261 associations shall be accomplished in accordance with this 8262 chapter, the documentsdeclarationsof the common interest 8263 communitiescondominiumsbeing merged or consolidated, and 8264 chapter 617. Section 718.110(4) does not apply to amendments to 8265 documentsdeclarationsnecessary to effect a merger or 8266 consolidation. This section is intended to clarify existing law 8267 and applies to associations existing on the effective date of 8268 this act. 8269 Section 93. Section 718.406, Florida Statutes, is amended 8270 to read: 8271 718.406 Common interest communitiescondominiumscreated 8272 within common interest communitycondominiumparcels.— 8273 (1) Unless otherwise expressed in the documentsdeclaration8274 of the common interest communitycondominium, if a common 8275 interest communitycondominiumis created within a common 8276 interest communitycondominiumparcel, the term: 8277 (a) “Primary common interest communitycondominium” means 8278 any common interest communitycondominiumthat is not a 8279 secondary common interest communitycondominiumand contains one 8280 or more subdivided parcels. 8281 (b) “Primary common interest communitycondominium8282 association” means any entity that operates a primary common 8283 interest communitycondominium. 8284 (c) “Primary common interest communitycondominium8285 declaration” means the instrument or instruments by which a 8286 primary common interest communitycondominiumis created, as 8287 they are from time to time amended. 8288 (d) “Secondary common interest communitycondominium” means 8289 one or more common interest communitycondominiumparcels that 8290 have been submitted to common interest communitycondominium8291 ownership pursuant to a secondary common interest community 8292condominiumdeclaration. 8293 (e) “Secondary common interest communitycondominium8294 association” means any entity responsible for the operation of a 8295 secondary common interest communitycondominium. 8296 (f) “Secondary common interest communitycondominium8297 declaration” means the instrument or instruments by which a 8298 secondary common interest communitycondominiumis created, as 8299 they are from time to time amended. 8300 (g) “Secondary unit” means a unit that is part of a 8301 secondary common interest communitycondominium. 8302 (h) “Subdivided parcel” means a common interest community 8303condominiumparcel in a primary common interest community which 8304condominiumthathas been submitted to common interest community 8305condominiumownership pursuant to a secondary common interest 8306 communitycondominiumdeclaration. 8307 (2) Unless otherwise provided in the primary common 8308 interest communitycondominiumdeclaration, if a common interest 8309 communitycondominiumparcel is a subdivided parcel, the 8310 secondary common interest communitycondominiumassociation 8311 responsible for operating the secondary common interest 8312 communitycondominiumupon the subdivided parcel shall act on 8313 behalf of all of the unit owners of secondary units in the 8314 secondary common interest communitycondominiumand shall 8315 exercise all rights of the secondary unit owners in the primary 8316 common interest communitycondominiumassociation, other than 8317 the right of possession of the secondary unit. The secondary 8318 common interest communitycondominiumassociation shall 8319 designate a representative who shall cast the vote of the 8320 subdivided parcel in the primary common interest community 8321condominiumassociation and, if no person is designated by the 8322 secondary common interest communitycondominiumassociation to 8323 cast such vote, the vote shall be cast by the president of the 8324 secondary common interest communitycondominiumassociation or 8325 the designee of the president. 8326 (3) Unless otherwise provided in the primary common 8327 interest communitycondominiumdeclaration as originally 8328 recorded, no secondary common interest communitycondominiummay 8329 be created upon any common interest communitycondominiumparcel 8330 in the primary common interest communitycondominium, and no 8331 amendment to the primary common interest communitycondominium8332 declaration may permit secondary common interest communities 8333condominiumsto be created upon parcels in the primary common 8334 interest communitycondominium, unless the record owners of a 8335 majority of the common interest communitycondominiumparcels 8336 join in the execution of the amendment. 8337 (4) If the primary common interest communitycondominium8338 declaration permits the creation of a secondary common interest 8339 communitycondominiumand a common interest community 8340condominiumparcel in the primary common interest community 8341condominiumis being submitted for common interest community 8342condominiumownership to create a secondary common interest 8343 communitycondominiumupon the primary common interest community 8344condominiumparcel, the approval of the board of administration 8345 of the primary common interest communitycondominiumassociation 8346 is required in order to create the secondary common interest 8347 communitycondominiumon the primary common interest community 8348condominiumparcel. Unless otherwise provided in the primary 8349 common interest communitycondominiumdeclaration, the owners of 8350 common interest communitycondominiumparcels in the primary 8351 common interest community whichcondominium thatwill not be 8352 part of the proposed secondary common interest community 8353condominiumand the holders of liens upon such primary common 8354 interest communitycondominiumparcels shall not have approval 8355 rights regarding the creation of the secondary common interest 8356 communitycondominiumor the contents of the secondary common 8357 interest communitycondominiumdeclaration being submitted. Only 8358 the board of administration of the primary common interest 8359 communitycondominiumassociation, the owner of the subdivided 8360 parcel, and the holders of liens upon the subdivided parcel 8361 shall have approval rights regarding the creation of the 8362 secondary common interest communitycondominiumand the contents 8363 of the secondary common interest communitycondominium8364 declaration. In order for the recording of the secondary common 8365 interest communitycondominiumdeclaration to be effective to 8366 create the secondary common interest communitycondominium, the 8367 board of administration of the primary common interest community 8368condominiumassociation, the owner of the subdivided parcel, and 8369 all holders of liens on the subdivided parcel must execute the 8370 secondary common interest communitycondominiumdeclaration for 8371 the purpose of evidencing their approval. 8372 (5) An owner of a secondary unit is subject to both the 8373 primary common interest communitycondominiumdeclaration and 8374 the secondary common interest communitycondominiumdeclaration. 8375 (6) The primary common interest communitycondominium8376 association may provide insurance required by s. 718.111(11) for 8377 common elements and other improvements within the secondary 8378 common interest communitycondominiumif the primary common 8379 interest communitycondominiumdeclaration permits the primary 8380 common interest communitycondominiumassociation to provide 8381 such insurance for the benefit of the common interest community 8382condominiumproperty included in the subdivided parcel, in lieu 8383 of such insurance being provided by the secondary common 8384 interest communitycondominiumassociation. 8385 (7) Unless otherwise provided in the primary common 8386 interest communitycondominiumdeclaration, the board of 8387 administration of the primary common interest community 8388condominiumassociation may adopt hurricane shutter or hurricane 8389 protection specifications for each building within which 8390 subdivided parcels are located and govern any subdivided parcels 8391 in the primary common interest communitycondominium. 8392 (8) Any unit owner of, or holder of a first mortgage on, a 8393 secondary unit may register such unit owner’s or mortgagee’s 8394 interest in the secondary unit with the primary common interest 8395 communitycondominiumassociation by delivering written notice 8396 to the primary common interest communitycondominium8397 association. Once registered, the primary common interest 8398 communitycondominiumassociation must provide written notice to 8399 such secondary unit owner and his, her, or its first mortgagee 8400 at least 30 days before instituting any foreclosure action 8401 against the subdivided parcel in which the secondary unit owner 8402 and his, her, or its first mortgagee hold an interest for 8403 failure of the subdivided parcel owner to pay any assessments or 8404 other amounts due to the primary common interest community 8405condominiumassociation. A foreclosure action against a 8406 subdivided parcel is not effective without an affidavit 8407 indicating that written notice of the foreclosure was timely 8408 sent to the names and addresses of secondary unit owners and 8409 first mortgagees registered with the primary common interest 8410 communitycondominiumassociation pursuant to this subsection. 8411 The registered secondary unit owner or mortgagee has a right to 8412 pay the proportionate amount of the delinquent assessment 8413 attributable to the secondary unit in which the registered unit 8414 owner or mortgagee holds an interest. Upon such payment, the 8415 primary common interest communitycondominiumassociation is 8416 obligated to promptly modify or partially release the record of 8417 lien on the primary common interest communitycondominium8418 association so that the lien no longer encumbers such secondary 8419 unit. Alternatively, a registered secondary unit owner or 8420 mortgagee may pay the amount of all delinquent assessments 8421 attributed to the subdivided parcel and seek reimbursement for 8422 all such amounts paid and all costs incurred from the secondary 8423 common interest communitycondominiumassociation, including, 8424 without limitation, the costs of collection other than the share 8425 allocable to the secondary unit on behalf of which such payment 8426 was made. 8427 (9) In the event of a conflict between the primary common 8428 interest communitycondominiumdeclaration and the secondary 8429 common interest communitycondominiumdeclaration, the primary 8430 common interest communitycondominiumdeclaration controls. 8431 (10) All common expenses due to the primary common interest 8432 communitycondominiumassociation with respect to a subdivided 8433 parcel are a common expense of the secondary common interest 8434 communitycondominiumassociation and shall be collected by the 8435 secondary common interest communitycondominiumassociation from 8436 its members and paid to the primary common interest community 8437condominiumassociation. 8438 Section 94. Section 718.501, Florida Statutes, is amended 8439 to read: 8440 718.501 Authority, responsibility, and duties of Division 8441 of Common Interest CommunitiesFlorida Condominiums, Timeshares,8442and Mobile Homes.— 8443 (1) The division may enforce and ensure compliance with the 8444 provisions of this chapter and rules relating to the 8445 development, construction, sale, lease, ownership, operation, 8446 and management of residential common interest community 8447condominiumunits. In performing its duties, the division has 8448 complete jurisdiction to investigate complaints and enforce 8449 compliance with respect to associations that are still under 8450 developer control or the control of a bulk assignee or bulk 8451 buyer pursuant to part VII of this chapter and complaints 8452 against developers, bulk assignees, or bulk buyers involving 8453 improper turnover or failure to turnover, pursuant to s. 8454 718.301. However, after turnover has occurred, the division has 8455 jurisdiction to investigate complaints related only to financial 8456 issues, elections, and unit owner access to association records 8457 pursuant to s. 718.111(12). 8458 (a)1. The division may make necessary public or private 8459 investigations within or outside this state to determine whether 8460 any person has violated this chapter or any rule or order 8461 hereunder, to aid in the enforcement of this chapter, or to aid 8462 in the adoption of rules or forms. 8463 2. The division may submit any official written report, 8464 worksheet, or other related paper, or a duly certified copy 8465 thereof, compiled, prepared, drafted, or otherwise made by and 8466 duly authenticated by a financial examiner or analyst to be 8467 admitted as competent evidence in any hearing in which the 8468 financial examiner or analyst is available for cross-examination 8469 and attests under oath that such documents were prepared as a 8470 result of an examination or inspection conducted pursuant to 8471 this chapter. 8472 (b) The division may require or permit any person to file a 8473 statement in writing, under oath or otherwise, as the division 8474 determines, as to the facts and circumstances concerning a 8475 matter to be investigated. 8476 (c) For the purpose of any investigation under this 8477 chapter, the division director or any officer or employee 8478 designated by the division director may administer oaths or 8479 affirmations, subpoena witnesses and compel their attendance, 8480 take evidence, and require the production of any matter which is 8481 relevant to the investigation, including the existence, 8482 description, nature, custody, condition, and location of any 8483 books, documents, or other tangible things and the identity and 8484 location of persons having knowledge of relevant facts or any 8485 other matter reasonably calculated to lead to the discovery of 8486 material evidence. Upon the failure by a person to obey a 8487 subpoena or to answer questions propounded by the investigating 8488 officer and upon reasonable notice to all affected persons, the 8489 division may apply to the circuit court for an order compelling 8490 compliance. 8491 (d) Notwithstanding any remedies available to unit owners 8492 and associations, if the division has reasonable cause to 8493 believe that a violation of any provision of this chapter or 8494 related rule has occurred, the division may institute 8495 enforcement proceedings in its own name against any developer, 8496 bulk assignee, bulk buyer, association, officer, or member of 8497 the board of administration, or its assignees or agents, as 8498 follows: 8499 1. The division may permit a person whose conduct or 8500 actions may be under investigation to waive formal proceedings 8501 and enter into a consent proceeding whereby orders, rules, or 8502 letters of censure or warning, whether formal or informal, may 8503 be entered against the person. 8504 2. The division may issue an order requiring the developer, 8505 bulk assignee, bulk buyer, association, developer-designated 8506 officer, or developer-designated member of the board of 8507 administration, developer-designated assignees or agents, bulk 8508 assignee-designated assignees or agents, bulk buyer-designated 8509 assignees or agents, community association manager, or community 8510 association management firm to cease and desist from the 8511 unlawful practice and take such affirmative action as in the 8512 judgment of the division carry out the purposes of this chapter. 8513 If the division finds that a developer, bulk assignee, bulk 8514 buyer, association, officer, or member of the board of 8515 administration, or its assignees or agents, is violating or is 8516 about to violate any provision of this chapter, any rule adopted 8517 or order issued by the division, or any written agreement 8518 entered into with the division, and presents an immediate danger 8519 to the public requiring an immediate final order, it may issue 8520 an emergency cease and desist order reciting with particularity 8521 the facts underlying such findings. The emergency cease and 8522 desist order is effective for 90 days. If the division begins 8523 nonemergency cease and desist proceedings, the emergency cease 8524 and desist order remains effective until the conclusion of the 8525 proceedings under ss. 120.569 and 120.57. 8526 3. If a developer, bulk assignee, or bulk buyer, fails to 8527 pay any restitution determined by the division to be owed, plus 8528 any accrued interest at the highest rate permitted by law, 8529 within 30 days after expiration of any appellate time period of 8530 a final order requiring payment of restitution or the conclusion 8531 of any appeal thereof, whichever is later, the division must 8532 bring an action in circuit or county court on behalf of any 8533 association, class of unit owners, lessees, or purchasers for 8534 restitution, declaratory relief, injunctive relief, or any other 8535 available remedy. The division may also temporarily revoke its 8536 acceptance of the filing for the developer to which the 8537 restitution relates until payment of restitution is made. 8538 4. The division may petition the court for appointment of a 8539 receiver or conservator. If appointed, the receiver or 8540 conservator may take action to implement the court order to 8541 ensure the performance of the order and to remedy any breach 8542 thereof. In addition to all other means provided by law for the 8543 enforcement of an injunction or temporary restraining order, the 8544 circuit court may impound or sequester the property of a party 8545 defendant, including books, papers, documents, and related 8546 records, and allow the examination and use of the property by 8547 the division and a court-appointed receiver or conservator. 8548 5. The division may apply to the circuit court for an order 8549 of restitution whereby the defendant in an action brought 8550 pursuant to subparagraph 4. is ordered to make restitution of 8551 those sums shown by the division to have been obtained by the 8552 defendant in violation of this chapter. At the option of the 8553 court, such restitution is payable to the conservator or 8554 receiver appointed pursuant to subparagraph 4. or directly to 8555 the persons whose funds or assets were obtained in violation of 8556 this chapter. 8557 6. The division may impose a civil penalty against a 8558 developer, bulk assignee, or bulk buyer, or association, or its 8559 assignee or agent, for any violation of this chapter or related 8560 rule. The division may impose a civil penalty individually 8561 against an officer or board member who willfully and knowingly 8562 violates a provision of this chapter, adopted rule, or a final 8563 order of the division; may order the removal of such individual 8564 as an officer or from the board of administration or as an 8565 officer of the association; and may prohibit such individual 8566 from serving as an officer or on the board of a community 8567 association for a period of time. The term “willfully and 8568 knowingly” means that the division informed the officer or board 8569 member that his or her action or intended action violates this 8570 chapter, a rule adopted under this chapter, or a final order of 8571 the division and that the officer or board member refused to 8572 comply with the requirements of this chapter, a rule adopted 8573 under this chapter, or a final order of the division. The 8574 division, before initiating formal agency action under chapter 8575 120, must afford the officer or board member an opportunity to 8576 voluntarily comply, and an officer or board member who complies 8577 within 10 days is not subject to a civil penalty. A penalty may 8578 be imposed on the basis of each day of continuing violation, but 8579 the penalty for any offense may not exceed $5,000. By January 1, 8580 1998, the division shall adopt, by rule, penalty guidelines 8581 applicable to possible violations or to categories of violations 8582 of this chapter or rules adopted by the division. The guidelines 8583 must specify a meaningful range of civil penalties for each such 8584 violation of the statute and rules and must be based upon the 8585 harm caused by the violation, the repetition of the violation, 8586 and upon such other factors deemed relevant by the division. For 8587 example, the division may consider whether the violations were 8588 committed by a developer, bulk assignee, or bulk buyer, or 8589 owner-controlled association, the size of the association, and 8590 other factors. The guidelines must designate the possible 8591 mitigating or aggravating circumstances that justify a departure 8592 from the range of penalties provided by the rules. It is the 8593 legislative intent that minor violations be distinguished from 8594 those which endanger the health, safety, or welfare of the 8595 common interest communitycondominiumresidents or other persons 8596 and that such guidelines provide reasonable and meaningful 8597 notice to the public of likely penalties that may be imposed for 8598 proscribed conduct. This subsection does not limit the ability 8599 of the division to informally dispose of administrative actions 8600 or complaints by stipulation, agreed settlement, or consent 8601 order. All amounts collected shall be deposited with the Chief 8602 Financial Officer to the credit of the Division of Common 8603 Interest CommunitiesFlorida Condominiums, Timeshares, and8604Mobile HomesTrust Fund. If a developer, bulk assignee, or bulk 8605 buyer fails to pay the civil penalty and the amount deemed to be 8606 owed to the association, the division shall issue an order 8607 directing that such developer, bulk assignee, or bulk buyer 8608 cease and desist from further operation until such time as the 8609 civil penalty is paid or may pursue enforcement of the penalty 8610 in a court of competent jurisdiction. If an association fails to 8611 pay the civil penalty, the division shall pursue enforcement in 8612 a court of competent jurisdiction, and the order imposing the 8613 civil penalty or the cease and desist order is not effective 8614 until 20 days after the date of such order. Any action commenced 8615 by the division shall be brought in the county in which the 8616 division has its executive offices or in the county where the 8617 violation occurred. 8618 7. If a unit owner presents the division with proof that 8619 the unit owner has requested access to official records in 8620 writing by certified mail, and that after 510days the unit 8621 owner again made the same request for access to official records 8622 in writing by certified mail, and that more than 510days has 8623 elapsed since the second request and the association has still 8624 failed or refused to provide access to official records as 8625 required by this chapter, the division shall issue a subpoena 8626 requiring production of the requested records where the records 8627 are kept pursuant to s. 718.112. 8628 8. In addition to subparagraph 6., the division may seek 8629 the imposition of a civil penalty through the circuit court for 8630 any violation for which the division may issue a notice to show 8631 cause under paragraph (r). The civil penalty shall be at least 8632 $500 but no more than $5,000 for each violation. The court may 8633 also awardto the prevailing partycourt costs and reasonable 8634 attorneyattorney’sfees to the prevailing party and, if the 8635 division prevails, may also award reasonable costs of 8636 investigation. 8637 (e) The division may prepare and disseminate a prospectus 8638 and other information to assist prospective owners, purchasers, 8639 lessees, and developers of residential common interest 8640 communitiescondominiumsin assessing the rights, privileges, 8641 and duties pertaining thereto. 8642 (f) The division may adopt rules to administer and enforce 8643 the provisions of this chapter. 8644 (g) The division shall establish procedures for providing 8645 notice to an association and the developer, bulk assignee, or 8646 bulk buyer during the period in which the developer, bulk 8647 assignee, or bulk buyer controls the association if the division 8648 is considering the issuance of a declaratory statement with 8649 respect to the documents declaration of the common interest 8650 communitycondominiumor any related document governing such 8651 common interestcondominiumcommunity. 8652 (h) The division shall furnish each association that pays 8653 the fees required by paragraph (2)(a) a copy of this chapter, as 8654 amended, and the rules adopted thereto on an annual basis. 8655 (i) The division shall annually provide each association 8656 with a summary of declaratory statements and formal legal 8657 opinions relating to the operations of common interest 8658 communitiescondominiumswhich were rendered by the division 8659 during the previous year. 8660 (j) The division shall provide training and educational 8661 programs for common interest communitycondominiumassociation 8662 board members and unit owners. The training may, in the 8663 division’s discretion, include web-based electronic media, and 8664 live training and seminars in various locations throughout the 8665 state. The division may review and approve education and 8666 training programs for board members and unit owners offered by 8667 providers and shall maintain a current list of approved programs 8668 and providers and make such list available to board members and 8669 unit owners in a reasonable and cost-effective manner. 8670 (k) The division shall maintain a toll-free telephone 8671 number accessible to common interest communitycondominiumunit 8672 owners. 8673 (l) The division shall develop a program to certify both 8674 volunteer and paid mediators to provide mediation of common 8675 interest communitycondominiumdisputes. The division shall 8676 provide, upon request, a list of such mediators to any 8677 association, unit owner, or other participant in arbitration 8678 proceedings under s. 718.1255 requesting a copy of the list. The 8679 division shall include on the list of volunteer mediators only 8680 the names of persons who have received at least 20 hours of 8681 training in mediation techniques or who have mediated at least 8682 20 disputes. In order to become initially certified by the 8683 division, paid mediators must be certified by the Supreme Court 8684 to mediate court cases in county or circuit courts. However, the 8685 division may adopt, by rule, additional factors for the 8686 certification of paid mediators, which must be related to 8687 experience, education, or background. Any person initially 8688 certified as a paid mediator by the division must, in order to 8689 continue to be certified, comply with the factors or 8690 requirements adopted by rule. 8691 (m) If a complaint is made, the division must conduct its 8692 inquiry with due regard for the interests of the affected 8693 parties. Within 30 days after receipt of a complaint, the 8694 division shall acknowledge the complaint in writing and notify 8695 the complainant whether the complaint is within the jurisdiction 8696 of the division and whether additional information is needed by 8697 the division from the complainant. The division shall conduct 8698 its investigation and, within 90 days after receipt of the 8699 original complaint or of timely requested additional 8700 information, take action upon the complaint. However, the 8701 failure to complete the investigation within 90 days does not 8702 prevent the division from continuing the investigation, 8703 accepting or considering evidence obtained or received after 90 8704 days, or taking administrative action if reasonable cause exists 8705 to believe that a violation of this chapter or a rule has 8706 occurred. If an investigation is not completed within the time 8707 limits established in this paragraph, the division shall, on a 8708 monthly basis, notify the complainant in writing of the status 8709 of the investigation. When reporting its action to the 8710 complainant, the division shall inform the complainant of any 8711 right to a hearing pursuant to ss. 120.569 and 120.57. 8712 (n) Common interest communityCondominiumassociation 8713 directors, officers, and employees; common interest community 8714condominiumdevelopers; bulk assignees, bulk buyers, and 8715 community association managers; and community association 8716 management firms have an ongoing duty to reasonably cooperate 8717 with the division in any investigation pursuant to this section. 8718 The division shall refer to local law enforcement authorities 8719 any person whom the division believes has altered, destroyed, 8720 concealed, or removed any record, document, or thing required to 8721 be kept or maintained by this chapter with the purpose to impair 8722 its verity or availability in the department’s investigation. 8723 (o) The division may: 8724 1. Contract with agencies in this state or other 8725 jurisdictions to perform investigative functions; or 8726 2. Accept grants-in-aid from any source. 8727 (p) The division shall cooperate with similar agencies in 8728 other jurisdictions to establish uniform filing procedures and 8729 forms, public offering statements, advertising standards, and 8730 rules and common administrative practices. 8731 (q) The division shall consider notice to a developer, bulk 8732 assignee, or bulk buyer to be complete when it is delivered to 8733 the address of the developer, bulk assignee, or bulk buyer 8734 currently on file with the division. 8735 (r) In addition to its enforcement authority, the division 8736 may issue a notice to show cause, which must provide for a 8737 hearing, upon written request, in accordance with chapter 120. 8738 (s) The division shall submit to the Governor, the 8739 President of the Senate, the Speaker of the House of 8740 Representatives, and the chairs of the legislative 8741 appropriations committees an annual report that includes, but 8742 need not be limited to, the number of training programs provided 8743 for common interest communitycondominiumassociation board 8744 members and unit owners, the number of complaints received by 8745 type, the number and percent of complaints acknowledged in 8746 writing within 30 days and the number and percent of 8747 investigations acted upon within 90 days in accordance with 8748 paragraph (m), and the number of investigations exceeding the 8749 90-day requirement. The annual report must also include an 8750 evaluation of the division’s core business processes and make 8751 recommendations for improvements, including statutory changes. 8752 The report shall be submitted by September 30 following the end 8753 of the fiscal year. 8754 (2)(a) Each common interest communitycondominium8755 association thatwhichoperates more than two units shall pay to 8756 the division an annual fee in the amount of $2$4for each 8757 residential unit in common interest communitiescondominiums8758 operated by the association. If the fee is not paid by March 1, 8759 the association shall be assessed a penalty of 10 percent of the 8760 amount due, and the association will not have standing to 8761 maintain or defend any action in the courts of this state until 8762 the amount due, plus any penalty, is paid. 8763 (b) All fees shall be deposited in the Division of Common 8764 Interest CommunitiesFlorida Condominiums, Timeshares, and8765Mobile HomesTrust Fund as provided by law. 8766 Section 95. Section 718.5011, Florida Statutes, is amended 8767 to read: 8768 718.5011 Ombudsman; appointment; administration.— 8769 (1) There is created an Office of the Common Interest 8770 CommunityCondominiumOmbudsman, to be located for 8771 administrative purposes within the Division of Common Interest 8772 CommunitiesFlorida Condominiums, Timeshares, and Mobile Homes. 8773 The functions of the office shall be funded by the Division of 8774 Common Interest CommunitiesFlorida Condominiums, Timeshares,8775and Mobile HomesTrust Fund. The ombudsman shall be a bureau 8776 chief of the division, and the office shall be set within the 8777 division in the same manner as any other bureau is staffed and 8778 funded. 8779 (2) The Governor shall appoint the ombudsman. The ombudsman 8780 must be an attorney admitted to practice before the Florida 8781 Supreme Court and shall serve at the pleasure of the Governor. A 8782 vacancy in the office shall be filled in the same manner as the 8783 original appointment. An officer or full-time employee of the 8784 ombudsman’s office may not actively engage in any other business 8785 or profession that directly or indirectly relates to or 8786 conflicts with his or her work in the ombudsman’s office; serve 8787 as the representative of any political party, executive 8788 committee, or other governing body of a political party; serve 8789 as an executive, officer, or employee of a political party; 8790 receive remuneration for activities on behalf of any candidate 8791 for public office; or engage in soliciting votes or other 8792 activities on behalf of a candidate for public office. The 8793 ombudsman or any employee of his or her office may not become a 8794 candidate for election to public office unless he or she first 8795 resigns from his or her office or employment. 8796 Section 96. Section 718.5012, Florida Statutes, is amended 8797 to read: 8798 718.5012 Ombudsman; powers and duties.—The ombudsman shall 8799 have the powers that are necessary to carry out the duties of 8800 his or her office, including the following specific powers: 8801 (1) To have access to and use of all files and records of 8802 the division. 8803 (2) To employ professional and clerical staff as necessary 8804 for the efficient operation of the office. 8805 (3) To prepare and issue reports and recommendations to the 8806 Governor, the department, the division, the Advisory Council on 8807 Common Interest CommunitiesCondominiums, the President of the 8808 Senate, and the Speaker of the House of Representatives on any 8809 matter or subject within the jurisdiction of the division. The 8810 ombudsman shall make recommendations he or she deems appropriate 8811 for legislation relative to division procedures, rules, 8812 jurisdiction, personnel, and functions. 8813 (4) To act as liaison between the division, unit owners, 8814 boards of directors, board members, community association 8815 managers, and other affected parties. The ombudsman shall 8816 develop policies and procedures to assist unit owners, boards of 8817 directors, board members, community association managers, and 8818 other affected parties to understand their rights and 8819 responsibilities as set forth in this chapter and the common 8820 interest communitycondominiumdocuments governing their 8821 respective association. The ombudsman shall coordinate and 8822 assist in the preparation and adoption of educational and 8823 reference material, and shall endeavor to coordinate with 8824 private or volunteer providers of these services, so that the 8825 availability of these resources is made known to the largest 8826 possible audience. 8827 (5) To monitor and review procedures and disputes 8828 concerning common interest communitycondominiumelections or 8829 meetings, including, but not limited to, recommending that the 8830 division pursue enforcement action in any manner where there is 8831 reasonable cause to believe that election misconduct has 8832 occurred. 8833 (6) To make recommendations to the division for changes in 8834 rules and procedures for the filing, investigation, and 8835 resolution of complaints filed by unit owners, associations, and 8836 managers. 8837 (7) To provide resources to assist members of boards of 8838 directors and officers of associations to carry out their powers 8839 and duties consistent with this chapter, division rules, and the 8840 common interest communitycondominiumdocuments governing the 8841 association. 8842 (8) To encourage and facilitate voluntary meetings with and 8843 between unit owners, boards of directors, board members, 8844 community association managers, and other affected parties when 8845 the meetings may assist in resolving a dispute within a 8846 community association before a person submits a dispute for a 8847 formal or administrative remedy. It is the intent of the 8848 Legislature that the ombudsman act as a neutral resource for 8849 both the rights and responsibilities of unit owners, 8850 associations, and board members. 8851 (9) To assist with the resolution of disputes between unit 8852 owners and the association or between unit owners when the 8853 dispute is not within the jurisdiction of the division to 8854 resolve. 8855 (10) Fifteen percent of the total voting interests in a 8856 common interest communitycondominiumassociation, or six unit 8857 owners, whichever is greater, may petition the ombudsman to 8858 appoint an election monitor to attend the annual meeting of the 8859 unit owners and conduct the election of directors. The ombudsman 8860 shall appoint a division employee, a person or persons 8861 specializing in common interest communitycondominiumelection 8862 monitoring, or an attorney licensed to practice in this state as 8863 the election monitor. All costs associated with the election 8864 monitoring process shall be paid by the association. The 8865 division shall adopt a rule establishing procedures for the 8866 appointment of election monitors and the scope and extent of the 8867 monitor’s role in the election process. 8868 Section 97. Section 718.50156, Florida Statutes, is created 8869 to read: 8870 718.50156 Community Association Living Study Council; 8871 membership functions.— 8872 (1) The Community Association Living Study Council is 8873 created effective October 1, 2016. The council shall consist of 8874 seven appointed members. Two members shall be appointed by the 8875 President of the Senate, two members shall be appointed by the 8876 Speaker of the House of Representatives, and three members, one 8877 of whom may represent timeshare common interest communities, 8878 shall be appointed by the Governor. The director of the division 8879 shall appoint an ex officio nonvoting member. The Legislature 8880 intends that the council members represent a cross-section of 8881 persons interested in community association issues. The council 8882 shall be located within the division for administrative 8883 purposes. Members of the council shall serve without 8884 compensation but may receive per diem and travel expenses 8885 pursuant to s. 112.061 while on official business. 8886 (2) The council shall perform the following functions: 8887 (a) Receive, from the public, Legislature, Governor, and 8888 others, input regarding issues of concern with respect to 8889 community association administration, including living in common 8890 interest communities. The council shall make recommendations for 8891 changes in general law related to community associations. The 8892 issues that the council shall consider include, but are not 8893 limited to, the rights and responsibilities of the unit owners 8894 in relation to the rights and responsibilities of the 8895 association. 8896 (b) Review, evaluate, and advise the division concerning 8897 revisions to and adoption of rules affecting common interest 8898 communities. 8899 (c) Recommend improvements, if needed, in education 8900 programs offered by the division. 8901 (d) Review, evaluate, and advise the Legislature concerning 8902 revisions and improvements to general laws relating to common 8903 interest communities. 8904 (e) Freely consult with the Regulatory Council of Community 8905 Association Managers of the Department of Business and 8906 Professional Regulation to coordinate efforts for regulatory or 8907 legislative improvements. 8908 (3) The council may elect a chair and vice chair and other 8909 officers it deems advisable. The council shall meet at the call 8910 of its chair, at the request of a majority of its membership, at 8911 the request of the division, or at such times as it may 8912 prescribe. A majority of the members of the council shall 8913 constitute a quorum. Council action may be taken by vote of a 8914 majority of the voting members who are present at a meeting 8915 where there is a quorum. 8916 Section 98. Section 718.502, Florida Statutes, is amended 8917 to read: 8918 718.502 Filing prior to sale or lease.— 8919 (1)(a) A developer of a residential common interest 8920 communitycondominiumor mixed-use common interest community 8921condominiumshall file with the division one copy of each of the 8922 documents and items required to be furnished to a buyer or 8923 lessee by ss. 718.503 and 718.504, if applicable. Until the 8924 developer has so filed, a contract for sale of a unit or lease 8925 of a unit for more than 5 years shall be voidable by the 8926 purchaser or lessee prior to the closing of his or her purchase 8927 or lease of a unit. 8928 (b) A developer may not close on any contract for sale or 8929 contract for a lease period of more than 5 years until the 8930 developer prepares and files with the division documents 8931 complying with the requirements of this chapter and the rules 8932 adopted by the division and until the division notifies the 8933 developer that the filing is proper and the developer prepares 8934 and delivers all documents required by s. 718.503(1)(b) to the 8935 prospective buyer. 8936 (c) The division by rule may develop filing, review, and 8937 examination requirements and relevant timetables to ensure 8938 compliance with the notice and disclosure provisions of this 8939 section. 8940 (2)(a) BeforePrior tofiling as required by subsection 8941 (1), and beforeprior toacquiring an ownership, leasehold, or 8942 contractual interest in the land upon which the common interest 8943 communitycondominiumis to be developed, a developer shall not 8944 offer a contract for purchase of a unit or lease of a unit for 8945 more than 5 years. However, the developer may accept deposits 8946 for reservations upon the approval of a fully executed escrow 8947 agreement and reservation agreement form properly filed with the 8948 Division of Common Interest CommunitiesFlorida Condominiums,8949Timeshares, and Mobile Homes. Each filing of a proposed 8950 reservation program shall be accompanied by a filing fee of 8951 $250. Reservations shall not be taken on a proposed common 8952 interest communitycondominiumunless the developer has an 8953 ownership, leasehold, or contractual interest in the land upon 8954 which the common interest communitycondominiumis to be 8955 developed. The division shall notify the developer within 20 8956 days of receipt of the reservation filing of any deficiencies 8957 contained therein. Such notification shall not preclude the 8958 determination of reservation filing deficiencies at a later 8959 date, nor shall it relieve the developer of any responsibility 8960 under the law. The escrow agreement and the reservation 8961 agreement form shall include a statement of the right of the 8962 prospective purchaser to an immediate unqualified refund of the 8963 reservation deposit moneys upon written request to the escrow 8964 agent by the prospective purchaser or the developer. 8965 (b) The executed escrow agreement signed by the developer 8966 and the escrow agent shall contain the following information: 8967 1. A statement that the escrow agent will grant a 8968 prospective purchaser an immediate, unqualified refund of the 8969 reservation deposit moneys upon written request either directly 8970 to the escrow agent or to the developer. 8971 2. A statement that the escrow agent is responsible for not 8972 releasing moneys directly to the developer except as a down 8973 payment on the purchase price at the time a contract is signed 8974 by the purchaser if provided in the contract. 8975 (c) The reservation agreement form shall include the 8976 following: 8977 1. A statement of the obligation of the developer to file 8978 common interest communitycondominiumdocuments with the 8979 division prior to entering into a binding purchase agreement or 8980 binding agreement for a lease of more than 5 years. 8981 2. A statement of the right of the prospective purchaser to 8982 receive all common interest communitycondominiumdocuments as 8983 required by this chapter. 8984 3. The name and address of the escrow agent. 8985 4. A statement as to whether the developer assures that the 8986 purchase price represented in or pursuant to the reservation 8987 agreement will be the price in the contract for purchase and 8988 sale or that the price represented may be exceeded within a 8989 stated amount or percentage or that no assurance is given as to 8990 the price in the contract for purchase or sale. 8991 5. A statement that the deposit must be payable to the 8992 escrow agent and that the escrow agent must provide a receipt to 8993 the prospective purchaser. 8994 (3) Upon filing as required by subsection (1), the 8995 developer shall pay to the division a filing fee of $20 for each 8996 residential unit to be sold by the developer which is described 8997 in the documents filed. If the common interest community 8998condominiumis to be built or sold in phases, the fee shall be 8999 paid prior to offering for sale units in any subsequent phase. 9000 Every developer who holds a unit or units for sale in a common 9001 interest communitycondominiumshall submit to the division any 9002 amendments to documents or items on file with the division and 9003 deliver to purchasers all amendments prior to closing, but in no 9004 event, later than 10 days after the amendment. Upon filing of 9005 amendments to documents currently on file with the division, the 9006 developer shall pay to the division a filing fee of up to $100 9007 per filing, with the exact fee to be set by division rule. 9008 (4) Any developer who complies with this section is not 9009 required to file with any other division or agency of this state 9010 for approval to sell the units in the common interest community 9011condominium, the information for the common interest community 9012condominiumfor which he or she filed. 9013 (5) In addition to those disclosures described by ss. 9014 718.503 and 718.504, the division is authorized to require such 9015 other disclosure as deemed necessary to fully andorfairly 9016 disclose all aspects of the offering. 9017 Section 99. Section 718.503, Florida Statutes, is amended 9018 to read: 9019 718.503 Developer disclosure prior to sale; nondeveloper 9020 unit owner disclosure prior to sale; voidability.— 9021 (1) DEVELOPER DISCLOSURE.— 9022 (a) Contents of contracts.—Any contract for the sale of a 9023 residential unit or a lease thereof for an unexpired term of 9024 more than 5 years shall: 9025 1. Contain the following legend in conspicuous type: THIS 9026 AGREEMENT IS VOIDABLE BY BUYER BY DELIVERING WRITTEN NOTICE OF 9027 THE BUYER’S INTENTION TO CANCEL WITHIN 15 DAYS AFTER THE DATE OF 9028 EXECUTION OF THIS AGREEMENT BY THE BUYER, AND RECEIPT BY BUYER 9029 OF ALL OF THE ITEMS REQUIRED TO BE DELIVERED TO HIM OR HER BY 9030 THE DEVELOPER UNDER SECTION 718.503, FLORIDA STATUTES. THIS 9031 AGREEMENT IS ALSO VOIDABLE BY BUYER BY DELIVERING WRITTEN NOTICE 9032 OF THE BUYER’S INTENTION TO CANCEL WITHIN 15 DAYS AFTER THE DATE 9033 OF RECEIPT FROM THE DEVELOPER OF ANY AMENDMENT WHICH MATERIALLY 9034 ALTERS OR MODIFIES THE OFFERING IN A MANNER THAT IS ADVERSE TO 9035 THE BUYER. ANY PURPORTED WAIVER OF THESE VOIDABILITY RIGHTS 9036 SHALL BE OF NO EFFECT. BUYER MAY EXTEND THE TIME FOR CLOSING FOR 9037 A PERIOD OF NOT MORE THAN 15 DAYS AFTER THE BUYER HAS RECEIVED 9038 ALL OF THE ITEMS REQUIRED. BUYER’S RIGHT TO VOID THIS AGREEMENT 9039 SHALL TERMINATE AT CLOSING. FIGURES CONTAINED IN ANY BUDGET 9040 DELIVERED TO THE BUYER PREPARED IN ACCORDANCE WITH THE COMMON 9041 INTEREST COMMUNITYCONDOMINIUMACT ARE ESTIMATES ONLY AND 9042 REPRESENT AN APPROXIMATION OF FUTURE EXPENSES BASED ON FACTS AND 9043 CIRCUMSTANCES EXISTING AT THE TIME OF THE PREPARATION OF THE 9044 BUDGET BY THE DEVELOPER. ACTUAL COSTS OF SUCH ITEMS MAY EXCEED 9045 THE ESTIMATED COSTS. SUCH CHANGES IN COST DO NOT CONSTITUTE 9046 MATERIAL ADVERSE CHANGES IN THE OFFERING. 9047 2. Contain the following caveat in conspicuous type on the 9048 first page of the contract: ORAL REPRESENTATIONS CANNOT BE 9049 RELIED UPON AS CORRECTLY STATING THE REPRESENTATIONS OF THE 9050 DEVELOPER. FOR CORRECT REPRESENTATIONS, REFERENCE SHOULD BE MADE 9051 TO THIS CONTRACT AND THE DOCUMENTS REQUIRED BY SECTION 718.503, 9052 FLORIDA STATUTES, TO BE FURNISHED BY A DEVELOPER TO A BUYER OR 9053 LESSEE. 9054 3. If the unit has been occupied by someone other than the 9055 buyer, contain a statement that the unit has been occupied. 9056 4. If the contract is for the sale or transfer of a unit 9057 subject to a lease, include as an exhibit a copy of the executed 9058 lease and shall contain within the text in conspicuous type: THE 9059 UNIT IS SUBJECT TO A LEASE (OR SUBLEASE). 9060 5. If the contract is for the lease of a unit for a term of 9061 5 years or more, include as an exhibit a copy of the proposed 9062 lease. 9063 6. If the contract is for the sale or lease of a unit that 9064 is subject to a lien for rent payable under a lease of a 9065 recreational facility or other commonly used facility, contain 9066 within the text the following statement in conspicuous type: 9067 THIS CONTRACT IS FOR THE TRANSFER OF A UNIT THAT IS SUBJECT TO A 9068 LIEN FOR RENT PAYABLE UNDER A LEASE OF COMMONLY USED FACILITIES. 9069 FAILURE TO PAY RENT MAY RESULT IN FORECLOSURE OF THE LIEN. 9070 7. State the name and address of the escrow agent required 9071 by s. 718.202 and state that the purchaser may obtain a receipt 9072 for his or her deposit from the escrow agent upon request. 9073 8. If the contract is for the sale or transfer of a unit in 9074 a common interest communitycondominiumin which timeshare 9075 estates have been or may be created, contain within the text in 9076 conspicuous type: UNITS IN THIS COMMON INTEREST COMMUNITY 9077CONDOMINIUMARE SUBJECT TO TIMESHARE ESTATES. The contract for 9078 the sale of a fee interest in a timeshare estate shall also 9079 contain, in conspicuous type, the following: FOR THE PURPOSE OF 9080 AD VALOREM TAXES OR SPECIAL ASSESSMENTS LEVIED BY TAXING 9081 AUTHORITIES AGAINST A FEE INTEREST IN A TIMESHARE ESTATE, THE 9082 MANAGING ENTITY IS GENERALLY CONSIDERED THE TAXPAYER UNDER 9083 FLORIDA LAW. YOU HAVE THE RIGHT TO CHALLENGE AN ASSESSMENT BY A 9084 TAXING AUTHORITY RELATING TO YOUR TIMESHARE ESTATE PURSUANT TO 9085 THE PROVISIONS OF CHAPTER 194, FLORIDA STATUTES. 9086 (b) Copies of documents to be furnished to prospective 9087 buyer or lessee.—Until such time as the developer has furnished 9088 the documents listed below to a person who has entered into a 9089 contract to purchase a residential unit or lease it for more 9090 than 5 years, the contract may be voided by that person, 9091 entitling the person to a refund of any deposit together with 9092 interest thereon as provided in s. 718.202. The contract may be 9093 terminated by written notice from the proposed buyer or lessee 9094 delivered to the developer within 15 days after the buyer or 9095 lessee receives all of the documents required by this section. 9096 The developer may not close for 15 days following the execution 9097 of the agreement and delivery of the documents to the buyer as 9098 evidenced by a signed receipt for documents unless the buyer is 9099 informed in the 15-day voidability period and agrees to close 9100 prior to the expiration of the 15 days. The developer shall 9101 retain in his or her records a separate agreement signed by the 9102 buyer as proof of the buyer’s agreement to close prior to the 9103 expiration of said voidability period. Said proof shall be 9104 retained for a period of 5 years after the date of the closing 9105 of the transaction. The documents to be delivered to the 9106 prospective buyer are the prospectus or disclosure statement 9107 with all exhibits, if the development is subject to the 9108 provisions of s. 718.504, or, if not, then copies of the 9109 following which are applicable: 9110 1. The question and answer sheet described in s. 718.504, 9111 and documentsdeclarationof the common interest community 9112condominium, or the proposed documentsdeclarationif the 9113 documents havedeclaration hasnot been recorded, which shall 9114 include the certificate of a surveyor approximately representing 9115 the locations required by s. 718.104. 9116 2. The documents creating the association. 9117 3. The bylaws. 9118 4. The ground lease or other underlying lease of the common 9119 interest communitycondominium. 9120 5. The management contract, maintenance contract, and other 9121 contracts for management of the association and operation of the 9122 common interest communitycondominiumand facilities used by the 9123 unit owners having a service term in excess of 1 year, and any 9124 renewable management contractsthat are renewable. 9125 6. The estimated operating budget for the common interest 9126 communitycondominiumand a schedule of expenses for each type 9127 of unit, including fees assessed pursuant to s. 718.113(1) for 9128 the maintenance of limited common elements where such costs are 9129 shared only by those entitled to use the limited common 9130 elements. 9131 7. The lease of recreational and other facilities that will 9132 be used only by unit owners of the subject common interest 9133 communitycondominium. 9134 8. The lease of recreational and other common facilities 9135 that will be used by unit owners in common with unit owners of 9136 other common interest communitiescondominiums. 9137 9. The form of unit lease if the offer is forof a9138 leasehold. 9139 10. Any declaration of servitude of properties serving the 9140 common interest communitycondominiumbut not owned by unit 9141 owners or leased to them or the association. 9142 11. If the development is to be built in phases or if the 9143 association is to manage more than one common interest community 9144condominium, a description of the plan of phase development or 9145 the arrangements for the association to manage two or more 9146 common interest communitiescondominiums. 9147 12. If the common interest communitycondominiumis a 9148 conversion of existing improvements, the statements and 9149 disclosure required by s. 718.616. 9150 13. The form of agreement for sale or lease of units. 9151 14. A copy of the floor plan of the unit and the plot plan 9152 showing the location of the residential buildings and the 9153 recreation and other common areas. 9154 15. A copy of all covenants and restrictions which will 9155 affect the use of the property and which are not contained in 9156 the foregoing. 9157 16. If the developer is required by state or local 9158 authorities to obtain acceptance or approval of any dock or 9159 marina facilities intended to serve the common interest 9160 communitycondominium, a copy of any such acceptance or approval 9161 acquired by the time of filing with the division under s. 9162 718.502(1), or a statement that such acceptance or approval has 9163 not been acquired or received. 9164 17. Evidence demonstrating that the developer has an 9165 ownership, leasehold, or contractual interest in the land upon 9166 which the common interest communitycondominiumis to be 9167 developed. 9168 18. The governance form referenced in paragraph (2)(a). 9169 (c) Subsequent estimates; when provided.—If the closing on 9170 a contract occurs more than 12 months after the filing of the 9171 offering circular with the division, the developer shall provide 9172 a copy of the current estimated operating budget of the 9173 association to the buyer at closing, which shall not be 9174 considered an amendment that modifies the offering provided any 9175 changes to the association’s budget from the budget given to the 9176 buyer at the time of contract signing were the result of matters 9177 beyond the developer’s control. Changes in budgets of any master 9178 association, recreation association, or club and similar budgets 9179 for entities other than the association shall likewise not be 9180 considered amendments that modify the offering. It is the intent 9181 of this paragraph to clarify existing law. 9182 (2) NONDEVELOPER DISCLOSURE.— 9183 (a) Each unit owner who is not a developer as defined by 9184 this chapter shall comply with the provisions of this subsection 9185 prior to the sale of his or her unit. Each prospective purchaser 9186 who has entered into a contract for the purchase of a common 9187 interest communitycondominiumunit is entitled, at the seller’s 9188 expense, to a current copy of the declaration of common interest 9189 communitycondominium, articles of incorporation of the 9190 association, bylaws and rules of the association, financial 9191 information required by s. 718.111,andthe document entitled 9192 “Frequently Asked Questions and Answers” required by s. 718.504, 9193 and. On and after January 1, 2009, the prospective purchaser9194shall also be entitled to receive from the sellera copy of the 9195agovernance form referenced in this paragraph. Such form shall9196beprovided by the division summarizing governance of common 9197 interest communitycondominiumassociations. In addition to such 9198 other information as the division considers helpful to a 9199 prospective purchaser in understanding association governance, 9200 the governance form shall address the following subjects: 9201 1. The role of the board in conducting the day-to-day 9202 affairs of the association on behalf of, and in the best 9203 interests of, the owners. 9204 2. The board’s responsibility to provide advance notice of 9205 board and membership meetings. 9206 3. The rights of owners to attend and speak at board and 9207 membership meetings. 9208 4. The responsibility of the board and of owners with 9209 respect to maintenance of the common interest community 9210condominiumproperty. 9211 5. The responsibility of the board and owners to abide by 9212 the common interest communitycondominiumdocuments, this 9213 chapter, rules adopted by the division, and reasonable rules 9214 adopted by the board. 9215 6. Owners’ rights to inspect and copy association records 9216 and the limitations on such rights. 9217 7. Remedies available to owners with respect to actions by 9218 the board which may be abusive or beyond the board’s power and 9219 authority. 9220 8. The right of the board to hire a property management 9221 firm, subject to its own primary responsibility for such 9222 management. 9223 9. The responsibility of owners with regard to payment of 9224 regular or special assessments necessary for the operation of 9225 the property and the potential consequences of failure to pay 9226 such assessments. 9227 10. The voting rights of owners. 9228 11. Rights and obligations of the board in enforcement of 9229 rules in the common interest communitycondominiumdocuments and 9230 rules adopted by the board. 9231 9232 The governance form shall also include the following statement 9233 in conspicuous type: “This publication is intended as an 9234 informal educational overview of common interest community 9235condominiumgovernance. In the event of a conflict, the 9236 provisions of chapter 718, Florida Statutes, rules adopted by 9237 the Division of Common Interest CommunitiesFlorida9238Condominiums, Timeshares, and Mobile Homesof the Department of 9239 Business and Professional Regulation, the provisions of the 9240 common interest communitycondominiumdocuments, and reasonable 9241 rules adopted by the common interest communitycondominium9242 association’s board of administration prevail over the contents 9243 of this publication.” 9244 (b) If a person licensed under part I of chapter 475 9245 provides to or otherwise obtains for a prospective purchaser the 9246 documents described in this subsection, the person is not liable 9247 for any error or inaccuracy contained in the documents. 9248 (c) Each contract entered into after July 1, 1992, for the 9249 resale of a residential unit shall contain in conspicuous type 9250 either: 9251 1. A clause which states: THE BUYER HEREBY ACKNOWLEDGES 9252 THAT BUYER HAS BEEN PROVIDED A CURRENT COPY OF THE DOCUMENTS 9253DECLARATIONOF THE COMMON INTEREST COMMUNITYCONDOMINIUM, 9254 ARTICLES OF INCORPORATION OF THE ASSOCIATION, BYLAWS AND RULES 9255 OF THE ASSOCIATION, AND A COPY OF THE MOST RECENT YEAR-END 9256 FINANCIAL INFORMATION AND FREQUENTLY ASKED QUESTIONS AND ANSWERS 9257 DOCUMENT MORE THAN 3 DAYS, EXCLUDING SATURDAYS, SUNDAYS, AND 9258 LEGAL HOLIDAYS, PRIOR TO EXECUTION OF THIS CONTRACT; or 9259 2. A clause which states: THIS AGREEMENT IS VOIDABLE BY 9260 BUYER BY DELIVERING WRITTEN NOTICE OF THE BUYER’S INTENTION TO 9261 CANCEL WITHIN 3 DAYS, EXCLUDING SATURDAYS, SUNDAYS, AND LEGAL 9262 HOLIDAYS, AFTER THE DATE OF EXECUTION OF THIS AGREEMENT BY THE 9263 BUYER AND RECEIPT BY BUYER OF A CURRENT COPY OF THE DOCUMENTS 9264DECLARATIONOF THE COMMON INTEREST COMMUNITYCONDOMINIUM, 9265 ARTICLES OF INCORPORATION, BYLAWS AND RULES OF THE ASSOCIATION, 9266 AND A COPY OF THE MOST RECENT YEAR-END FINANCIAL INFORMATION AND 9267 FREQUENTLY ASKED QUESTIONS AND ANSWERS DOCUMENT IF SO REQUESTED 9268 IN WRITING. ANY PURPORTED WAIVER OF THESE VOIDABILITY RIGHTS 9269 SHALL BE OF NO EFFECT. BUYER MAY EXTEND THE TIME FOR CLOSING FOR 9270 A PERIOD OF NOT MORE THAN 3 DAYS, EXCLUDING SATURDAYS, SUNDAYS, 9271 AND LEGAL HOLIDAYS, AFTER THE BUYER RECEIVES THE DOCUMENTS 9272DECLARATION, ARTICLES OF INCORPORATION, BYLAWS AND RULES OF THE 9273 ASSOCIATION, AND A COPY OF THE MOST RECENT YEAR-END FINANCIAL 9274 INFORMATION AND FREQUENTLY ASKED QUESTIONS AND ANSWERS DOCUMENT 9275 IF REQUESTED IN WRITING. BUYER’S RIGHT TO VOID THIS AGREEMENT 9276 SHALL TERMINATE AT CLOSING. 9277 9278 A contract that does not conform to the requirements of this 9279 paragraph is voidable at the option of the purchaser prior to 9280 closing. 9281 (3) OTHER DISCLOSURE.— 9282 (a) If residential common interest communitycondominium9283 parcels are offered for sale or lease prior to completion of 9284 construction of the units and of improvements to the common 9285 elements, or prior to completion of remodeling of previously 9286 occupied buildings, the developer shall make available to each 9287 prospective purchaser or lessee, for his or her inspection at a 9288 place convenient to the site, a copy of the complete plans and 9289 specifications for the construction or remodeling of the unit 9290 offered to him or her and of the improvements to the common 9291 elements appurtenant to the unit. 9292 (b) Sales brochures, if any, shall be provided to each 9293 purchaser, and the following caveat in conspicuous type shall be 9294 placed on the inside front cover or on the first page containing 9295 text material of the sales brochure, or otherwise conspicuously 9296 displayed: ORAL REPRESENTATIONS CANNOT BE RELIED UPON AS 9297 CORRECTLY STATING REPRESENTATIONS OF THE DEVELOPER. FOR CORRECT 9298 REPRESENTATIONS, MAKE REFERENCE TO THIS BROCHURE AND TO THE 9299 DOCUMENTS REQUIRED BY SECTION 718.503, FLORIDA STATUTES, TO BE 9300 FURNISHED BY A DEVELOPER TO A BUYER OR LESSEE. If timeshare 9301 estates have been or may be created with respect to any unit in 9302 the common interest communitycondominium, the sales brochure 9303 shall contain the following statement in conspicuous type: UNITS 9304 IN THIS COMMON INTEREST COMMUNITYCONDOMINIUMARE SUBJECT TO 9305 TIMESHARE ESTATES. 9306 Section 100. Section 718.504, Florida Statutes, is amended 9307 to read: 9308 718.504 Prospectus or offering circular.—Every developer of 9309 a residential common interest community thatcondominiumwhich9310 contains more than 20 residential units, or thatwhichis part 9311 of a group of residential common interest communities 9312condominiumswhich will be served by property to be used in 9313 common by unit owners of more than 20 residential units, shall 9314 prepare a prospectus or offering circular and file it with the 9315 Division of Common Interest Communities beforeFlorida9316Condominiums, Timeshares, and Mobile Homesprior toentering 9317 into an enforceable contract of purchase and sale of any unit or 9318 lease of a unit for more than 5 years and shall furnish a copy 9319 of the prospectus or offering circular to each buyer. In 9320 addition to the prospectus or offering circular, each buyer 9321 shall be furnished a separate page entitled “Frequently Asked 9322 Questions and Answers,” which shall be in accordance with a 9323 format approved by the division and a copy of the financial 9324 information required by s. 718.111. This page shall, in readable 9325 language, inform prospective purchasers regarding their voting 9326 rights and unit use restrictions, including restrictions on the 9327 leasing of a unit; shall indicate whether and in what amount the 9328 unit owners or the association is obligated to pay rent or land 9329 use fees for recreational or other commonly used facilities; 9330 shall contain a statement identifying that amount of assessment 9331 which, pursuant to the budget, would be levied upon each unit 9332 type, exclusive of any special assessments, and which shall 9333 further identify the basis upon which assessments are levied, 9334 whether monthly, quarterly, or otherwise; shall state and 9335 identify any court cases in which the association is currently a 9336 party of record in which the association may face liability in 9337 excess of $100,000; and which shall further state whether 9338 membership in a recreational facilities association is 9339 mandatory, and if so, shall identify the fees currently charged 9340 per unit type. The division shall by rule require such other 9341 disclosure as in its judgment will assist prospective 9342 purchasers. The prospectus or offering circular may include more 9343 than one common interest communitycondominium, although not all 9344 such units are being offered for sale as of the date of the 9345 prospectus or offering circular. The prospectus or offering 9346 circular must contain the following information: 9347 (1) The front cover or the first page must contain only: 9348 (a) The name of the common interest communitycondominium. 9349 (b) The following statements in conspicuous type: 9350 1. THIS PROSPECTUS (OFFERING CIRCULAR) CONTAINS IMPORTANT 9351 MATTERS TO BE CONSIDERED IN ACQUIRING A COMMON INTEREST 9352 COMMUNITYCONDOMINIUMUNIT. 9353 2. THE STATEMENTS CONTAINED HEREIN ARE ONLY SUMMARY IN 9354 NATURE. A PROSPECTIVE PURCHASER SHOULD REFER TO ALL REFERENCES, 9355 ALL EXHIBITS HERETO, THE CONTRACT DOCUMENTS, AND SALES 9356 MATERIALS. 9357 3. ORAL REPRESENTATIONS CANNOT BE RELIED UPON AS CORRECTLY 9358 STATING THE REPRESENTATIONS OF THE DEVELOPER. REFER TO THIS 9359 PROSPECTUS (OFFERING CIRCULAR) AND ITS EXHIBITS FOR CORRECT 9360 REPRESENTATIONS. 9361 (2) Summary: The next page must contain all statements 9362 required to be in conspicuous type in the prospectus or offering 9363 circular. 9364 (3) A separate index of the contents and exhibits of the 9365 prospectus. 9366 (4) Beginning on the first page of the text (not including 9367 the summary and index), a description of the common interest 9368 communitycondominium, including, but not limited to, the 9369 following information: 9370 (a) Its name and location. 9371 (b) A description of the common interest community 9372condominiumproperty, including, without limitation: 9373 1. The number of buildings, the number of units in each 9374 building, the number of bathrooms and bedrooms in each unit, and 9375 the total number of units, if the common interest community 9376condominiumis not a phase common interest community 9377condominium, or the maximum number of buildings that may be 9378 contained within the common interest communitycondominium, the 9379 minimum and maximum numbers of units in each building, the 9380 minimum and maximum numbers of bathrooms and bedrooms that may 9381 be contained in each unit, and the maximum number of units that 9382 may be contained within the common interest community 9383condominium, if the common interest communitycondominiumis a 9384 phase common interest communitycondominium. 9385 2. The page in the common interest communitycondominium9386 documents where a copy of the plot plan and survey of the common 9387 interest communitycondominiumis located. 9388 3. The estimated latest date of completion of constructing, 9389 finishing, and equipping. In lieu of a date, the description 9390 shall include a statement that the estimated date of completion 9391 of the common interest communitycondominiumis in the purchase 9392 agreement and a reference to the article or paragraph containing 9393 that information. 9394 (c) The maximum number of units that will use facilities in 9395 common with the common interest communitycondominium. If the 9396 maximum number of units will vary, a description of the basis 9397 for variation and the minimum amount of dollars per unit to be 9398 spent for additional recreational facilities or enlargement of 9399 such facilities. If the addition or enlargement of facilities 9400 will result in a material increase of a unit owner’s maintenance 9401 expense or rental expense, if any, the maximum increase and 9402 limitations thereon shall be stated. 9403 (5)(a) A statement in conspicuous type describing whether 9404 the common interest communitycondominiumis created and being 9405 sold as fee simple interests or as leasehold interests. If the 9406 common interest communitycondominiumis created or being sold 9407 on a leasehold, the location of the lease in the disclosure 9408 materials shall be stated. 9409 (b) If timeshare estates are or may be created with respect 9410 to any unit in the common interest communitycondominium, a 9411 statement in conspicuous type stating that timeshare estates are 9412 created and being sold in units in the common interest community 9413condominium. 9414 (6) A description of the recreational and other commonly 9415 used facilities that will be used only by unit owners of the 9416 common interest communitycondominium, including, but not 9417 limited to, the following: 9418 (a) Each room and its intended purposes, location, 9419 approximate floor area, and capacity in numbers of people. 9420 (b) Each swimming pool, as to its general location, 9421 approximate size and depths, approximate deck size and capacity, 9422 and whether heated. 9423 (c) Additional facilities, as to the number of each 9424 facility, its approximate location, approximate size, and 9425 approximate capacity. 9426 (d) A general description of the items of personal property 9427 and the approximate number of each item of personal property 9428 that the developer is committing to furnish for each room or 9429 other facility or, in the alternative, a representation as to 9430 the minimum amount of expenditure that will be made to purchase 9431 the personal property for the facility. 9432 (e) The estimated date when each room or other facility 9433 will be available for use by the unit owners. 9434 (f)1. An identification of each room or other facility to 9435 be used by unit owners that will not be owned by the unit owners 9436 or the association; 9437 2. A reference to the location in the disclosure materials 9438 of the lease or other agreements providing for the use of those 9439 facilities; and 9440 3. A description of the terms of the lease or other 9441 agreements, including the length of the term; the rent payable, 9442 directly or indirectly, by each unit owner, and the total rent 9443 payable to the lessor, stated in monthly and annual amounts for 9444 the entire term of the lease; and a description of any option to 9445 purchase the property leased under any such lease, including the 9446 time the option may be exercised, the purchase price or how it 9447 is to be determined, the manner of payment, and whether the 9448 option may be exercised for a unit owner’s share or only as to 9449 the entire leased property. 9450 (g) A statement as to whether the developer may provide 9451 additional facilities not described above; their general 9452 locations and types; improvements or changes that may be made; 9453 the approximate dollar amount to be expended; and the maximum 9454 additional common expense or cost to the individual unit owners 9455 that may be charged during the first annual period of operation 9456 of the modified or added facilities. 9457 9458 Descriptions as to locations, areas, capacities, numbers, 9459 volumes, or sizes may be stated as approximations or minimums. 9460 (7) A description of the recreational and other facilities 9461 that will be used in common with other common interest 9462 communitiescondominiums, community associations, or planned 9463 developments which require the payment of the maintenance and 9464 expenses of such facilities, directly or indirectly, by the unit 9465 owners. The description shall include, but not be limited to, 9466 the following: 9467 (a) Each building and facility committed to be built. 9468 (b) Facilities not committed to be built except under 9469 certain conditions, and a statement of those conditions or 9470 contingencies. 9471 (c) As to each facility committed to be built, or which 9472 will be committed to be built upon the happening of one of the 9473 conditions in paragraph (b), a statement of whether it will be 9474 owned by the unit owners having the use thereof or by an 9475 association or other entity which will be controlled by them, or 9476 others, and the location in the exhibits of the lease or other 9477 document providing for use of those facilities. 9478 (d) The year in which each facility will be available for 9479 use by the unit owners or, in the alternative,the maximum 9480 number of unit owners in the project at the time each of all of 9481 the facilities is committed to be completed. 9482 (e) A general description of the items of personal 9483 property, and the approximate number of each item of personal 9484 property, that the developer is committing to furnish for each 9485 room or other facility or, in the alternative, a representation 9486 as to the minimum amount of expenditure that will be made to 9487 purchase the personal property for the facility. 9488 (f) If there are leases, a description thereof, including 9489 the length of the term, the rent payable, and a description of 9490 anyoption topurchase option. 9491 9492 Descriptions shall include location, areas, capacities, numbers, 9493 volumes, or sizes and may be stated as approximations or 9494 minimums. 9495 (8) Recreation lease or associated club membership: 9496 (a) If any recreational facilities or other facilities 9497 offered by the developer and available to, or to be used by, 9498 unit owners are to be leased or have club membership associated, 9499 the following statement in conspicuous type shall be included: 9500 THERE IS A RECREATIONAL FACILITIES LEASE ASSOCIATED WITH THIS 9501 COMMON INTEREST COMMUNITYCONDOMINIUM; or, THERE IS A CLUB 9502 MEMBERSHIP ASSOCIATED WITH THIS COMMON INTEREST COMMUNITY 9503CONDOMINIUM. There shall be a reference to the location in the 9504 disclosure materials where the recreation lease or club 9505 membership is described in detail. 9506 (b) If it is mandatory that unit owners pay a fee, rent, 9507 dues, or other charges under a recreational facilities lease or 9508 club membership for the use of facilities, there shall be in 9509 conspicuous type the applicable statement: 9510 1. MEMBERSHIP IN THE RECREATIONAL FACILITIES CLUB IS 9511 MANDATORY FOR UNIT OWNERS; or 9512 2. UNIT OWNERS ARE REQUIRED, AS A CONDITION OF OWNERSHIP, 9513 TO BE LESSEES UNDER THE RECREATIONAL FACILITIES LEASE; or 9514 3. UNIT OWNERS ARE REQUIRED TO PAY THEIR SHARE OF THE COSTS 9515 AND EXPENSES OF MAINTENANCE, MANAGEMENT, UPKEEP, REPLACEMENT, 9516 RENT, AND FEES UNDER THE RECREATIONAL FACILITIES LEASE (OR THE 9517 OTHER INSTRUMENTS PROVIDING THE FACILITIES); or 9518 4. A similar statement of the nature of the organization or 9519 the manner in which the use rights are created, andthatunit 9520 owners are required to pay. 9521 9522 Immediately following the applicable statement, the location in 9523 the disclosure materials where the development is described in 9524 detail shall be stated. 9525 (c) If the developer, or any other person other than the 9526 unit owners and other persons having use rights in the 9527 facilities, reserves, or is entitled to receive, any rent, fee, 9528 or other payment for the use of the facilities, then there shall 9529 be the following statement in conspicuous type: THE UNIT OWNERS 9530 OR THE ASSOCIATION(S) MUST PAY RENT OR LAND USE FEES FOR 9531 RECREATIONAL OR OTHER COMMONLY USED FACILITIES. Immediately 9532 following this statement, the location in the disclosure 9533 materials where the rent or fees for land usefeesare described 9534 in detail shall be stated. 9535 (d) If, in any recreation format, whether leasehold, club, 9536 or other, any person other than the association has the right to 9537 a lien on the units to secure the payment of assessments, rent, 9538 or other exactions, there shall appear a statement in 9539 conspicuous type in substantially the following form: 9540 1. THERE IS A LIEN OR LIEN RIGHT AGAINST EACH UNIT TO 9541 SECURE THE PAYMENT OF RENT AND OTHER EXACTIONS UNDER THE 9542 RECREATION LEASE. THE UNIT OWNER’S FAILURE TO MAKE THESE 9543 PAYMENTS MAY RESULT IN FORECLOSURE OF THE LIEN; or 9544 2. THERE IS A LIEN OR LIEN RIGHT AGAINST EACH UNIT TO 9545 SECURE THE PAYMENT OF ASSESSMENTS OR OTHER EXACTIONS COMING DUE 9546 FOR THE USE, MAINTENANCE, UPKEEP, OR REPAIR OF THE RECREATIONAL 9547 OR COMMONLY USED FACILITIES. THE UNIT OWNER’S FAILURE TO MAKE 9548 THESE PAYMENTS MAY RESULT IN FORECLOSURE OF THE LIEN. 9549 9550 Immediately following the applicable statement, the location in 9551 the disclosure materials where the lien or lien right is 9552 described in detail shall be stated. 9553 (9) If the developer or any other person has the right to 9554 increase or add to the recreational facilities at any time after 9555 the establishment of the common interest communitycondominium9556 whose unit owners have use rights therein, without the consent 9557 of the unit owners or associations being required, there shall 9558 appear a statement in conspicuous type in substantially the 9559 following form: RECREATIONAL FACILITIES MAY BE EXPANDED OR ADDED 9560 WITHOUT CONSENT OF UNIT OWNERS OR THE ASSOCIATION(S). 9561 Immediately following this statement, the location in the 9562 disclosure materials where such reserved rights are described 9563 shall be stated. 9564 (10) A statement of whether the developer’s plan includes a 9565 program of leasing units rather than selling them, or leasing 9566 units and selling them subject to such leases. If so, there 9567 shall be a description of the plan, including the number and 9568 identification of the units and the provisions and term of the 9569 proposed leases, and a statement in boldfaced type that: THE 9570 UNITS MAY BE TRANSFERRED SUBJECT TO A LEASE. 9571 (11) The arrangements for management of the association and 9572 maintenance and operation of the common interest community 9573condominiumproperty and of other property that will serve the 9574 unit owners of the common interest communitycondominium9575 property, and a description of the management contract and all 9576 other contracts for these purposes having a term in excess of 1 9577 year, including the following: 9578 (a) The names of contracting parties. 9579 (b) The term of the contract. 9580 (c) The nature of the services included. 9581 (d) The compensation, stated on a monthly and annual basis, 9582 and provisions for increases in the compensation. 9583 (e) A reference to the volumes and pages of the common 9584 interest communitycondominiumdocuments and of the exhibits 9585 containing copies of such contracts. 9586 9587 Copies of all described contracts shall be attached as exhibits. 9588 If there is a contract for the management of the common interest 9589 communitycondominiumproperty, then a statement in conspicuous 9590 type in substantially the following form shall appear, 9591 identifying the proposed or existing contract manager: THERE IS 9592 (IS TO BE) A CONTRACT FOR THE MANAGEMENT OF THE COMMON INTEREST 9593 COMMUNITYCONDOMINIUMPROPERTY WITH (NAME OF THE CONTRACT 9594 MANAGER). Immediately following this statement, the location in 9595 the disclosure materials of the contract for management of the 9596 common interest communitycondominiumproperty shall be stated. 9597 (12) If the developer or any other person or persons other 9598 than the unit owners has the right to retain control of the 9599 board of administration of the association for a period of time 9600 which can exceed 1 year after the closing of the sale of a 9601 majority of the units in that common interest community 9602condominiumto persons other than successors or alternate 9603 developers, then a statement in conspicuous type in 9604 substantially the following form shall be included: THE 9605 DEVELOPER (OR OTHER PERSON) HAS THE RIGHT TO RETAIN CONTROL OF 9606 THE ASSOCIATION AFTER A MAJORITY OF THE UNITS HAVE BEEN SOLD. 9607 Immediately following this statement, the location in the 9608 disclosure materials where this right to control is described in 9609 detail shall be stated. 9610 (13) If there are any restrictions upon the sale, transfer, 9611 conveyance, or leasing of a unit, then a statement in 9612 conspicuous type in substantially the following form shall be 9613 included: THE SALE, LEASE, OR TRANSFER OF UNITS IS RESTRICTED OR 9614 CONTROLLED. Immediately following this statement, the location 9615 in the disclosure materials where the restriction, limitation, 9616 or control on the sale, lease, or transfer of units is described 9617 in detail shall be stated. 9618 (14) If the common interest communitycondominiumis part 9619 of a phase project, the following information shall be stated: 9620 (a) A statement in conspicuous type in substantially the 9621 following form: THIS IS A PHASE COMMON INTEREST COMMUNITY 9622CONDOMINIUM. ADDITIONAL LAND AND UNITS MAY BE ADDED TO THIS 9623 COMMON INTEREST COMMUNITYCONDOMINIUM. Immediately following 9624 this statement, the location in the disclosure materials where 9625 the phasing is described shall be stated. 9626 (b) A summary of the provisions of the declaration which 9627 provide for the phasing. 9628 (c) A statement as to whether or not residential buildings 9629 and units which are added to the common interest community 9630condominiummay be substantially different from the residential 9631 buildings and units originally in the common interest community 9632condominium. If the added residential buildings and units may be 9633 substantially different, there shall be a general description of 9634 the extent to which such added residential buildings and units 9635 may differ, and a statement in conspicuous type in substantially 9636 the following form shall be included: BUILDINGS AND UNITS WHICH 9637 ARE ADDED TO THE COMMON INTEREST COMMUNITYCONDOMINIUMMAY BE 9638 SUBSTANTIALLY DIFFERENT FROM THE OTHER BUILDINGS AND UNITS IN 9639 THE COMMON INTEREST COMMUNITYCONDOMINIUM. Immediately following 9640 this statement, the location in the disclosure materials where 9641 the extent to which added residential buildings and units may 9642 substantially differ is described shall be stated. 9643 (d) A statement of the maximum number of buildings 9644 containing units, the maximum and minimum numbers of units in 9645 each building, the maximum number of units, and the minimum and 9646 maximum square footage of the units that may be contained within 9647 each parcel of land which may be added to the common interest 9648 communitycondominium. 9649 (15) If a common interest communitycondominiumcreated on 9650 or after July 1, 2000, is or may become part of a multi-common 9651 interest communitymulticondominium, the following information 9652 must be provided: 9653 (a) A statement in conspicuous type in substantially the 9654 following form: THIS COMMON INTEREST COMMUNITYCONDOMINIUMIS 9655 (MAY BE) PART OF A MULTI-COMMON INTEREST COMMUNITY 9656MULTICONDOMINIUMDEVELOPMENT IN WHICH OTHER COMMON INTEREST 9657 COMMUNITIESCONDOMINIUMSWILL (MAY) BE OPERATED BY THE SAME 9658 ASSOCIATION. Immediately following this statement, the location 9659 in the prospectus or offering circular and its exhibits where 9660 the multi-common interest communitymulticondominiumaspects of 9661 the offering are described must be stated. 9662 (b) A summary of the provisions in the declaration, 9663 articles of incorporation, and bylaws which establish and 9664 provide for the operation of the multi-common interest community 9665multicondominium, including a statement as to whether unit 9666 owners in the common interest communitycondominiumwill have 9667 the right to use recreational or other facilities located or 9668 planned to be located in other common interest communities 9669condominiumsoperated by the same association, and the manner of 9670 sharing the common expenses related to such facilities. 9671 (c) A statement of the minimum and maximum number of common 9672 interest communitiescondominiums, and the minimum and maximum 9673 number of units in each of those common interest communities 9674condominiums, which will or may be operated by the association, 9675 and the latest date by which the exact number will be finally 9676 determined. 9677 (d) A statement as to whether any of the common interest 9678 communitiescondominiumsin the multi-common interest community 9679multicondominiummay include units intended to be used for 9680 nonresidential purposes and the purpose or purposes permitted 9681 for such use. 9682 (e) A general description of the location and approximate 9683 acreage of any land on which any additional common interest 9684 communitiescondominiumsto be operated by the association may 9685 be located. 9686 (16) If the common interest communitycondominiumis 9687 created by conversion of existing improvements, the following 9688 information shall be stated: 9689 (a) The information required by s. 718.616. 9690 (b) A caveat that there are no express warranties unless 9691 they are stated in writing by the developer. 9692 (17) A summary of the restrictions, if any, to be imposed 9693 on units concerning the use of any of the common interest 9694 communitycondominiumproperty, including statements as to 9695 whether there are restrictions upon children and pets, and 9696 reference to the volumes and pages of the common interest 9697 communitycondominiumdocuments where such restrictions are 9698 found, or if such restrictions are contained elsewhere, then a 9699 copy of the documents containing the restrictions shall be 9700 attached as an exhibit. 9701 (18) If there is any land that is offered by the developer 9702 for use by the unit owners and that is neither owned by them nor 9703 leased to them, the association, or any entity controlled by 9704 unit owners and other persons having the use rights to such 9705 land, a statement shall be made as to how such land will serve 9706 the common interest communitycondominium. If any part of such 9707 land will serve the common interest communitycondominium, the 9708 statement shall describe the land and the nature and term of 9709 service, and the declaration or other instrument creating such 9710 servitude shall be included as an exhibit. 9711 (19) The manner in which utility and other services, 9712 including, but not limited to, sewage and waste disposal, water 9713 supply, and storm drainage, will be provided and the person or 9714 entity furnishing them. 9715 (20) An explanation of the manner in which the 9716 apportionment of common expenses and ownership of the common 9717 elements has been determined. 9718 (21) An estimated operating budget for the common interest 9719 communitycondominiumand the association, and a schedule of the 9720 unit owner’s expenses shall be attached as an exhibit and shall 9721 contain the following information: 9722 (a) The estimated monthly and annual expenses of the common 9723 interest communitycondominiumand the association that are 9724 collected from unit owners by assessments. 9725 (b) The estimated monthly and annual expenses of each unit 9726 owner for a unit, other than common expenses paid by all unit 9727 owners, payable by the unit owner to persons or entities other 9728 than the association, as well as to the association, including 9729 fees assessed pursuant to s. 718.113(1) for maintenance of 9730 limited common elements where such costs are shared only by 9731 those entitled to use the limited common element, and the total 9732 estimated monthly and annual expense. There may be excluded from 9733 this estimate expenses which are not provided for or 9734 contemplated by the common interest communitycondominium9735 documents, including, but not limited to, the costs of private 9736 telephone; maintenance of the interior of common interest 9737 communitycondominiumunits, which is not the obligation of the 9738 association; maid or janitorial services privately contracted 9739 for by the unit owners; utility bills billed directly to each 9740 unit owner for utility services to his or her unit; insurance 9741 premiums other than those incurred for policies obtained by the 9742 common interest communitycondominium; and similar personal 9743 expenses of the unit owner. A unit owner’s estimated payments 9744 for assessments shall also be stated in the estimated amounts 9745 for the times when they will be due. 9746 (c) The estimated items of expenses of the common interest 9747 communitycondominiumand the association, except as excluded 9748 under paragraph (b), including, but not limited to, the 9749 following items, which shall be stated as an association expense 9750 collectible by assessments or as unit owners’ expenses payable 9751 to persons other than the association: 9752 1. Expenses for the association and common interest 9753 communitycondominium: 9754 a. Administration of the association. 9755 b. Management fees. 9756 c. Maintenance. 9757 d. Rent for recreational and other commonly used 9758 facilities. 9759 e. Taxes upon association property. 9760 f. Taxes upon leased areas. 9761 g. Insurance. 9762 h. Security provisions. 9763 i. Other expenses. 9764 j. Operating capital. 9765 k. Reserves. 9766 l. Fees payable to the division. 9767 2. Reserve requirements to provide sufficient information 9768 to document budgetary requirements as provided in s. 9769 718.112(2)(g), including: 9770 a. Specifications of roofing installation. 9771 b. Number of squares of roofing per building. 9772 c. Number of squares of roofing for all association 9773 buildings. 9774 d. Square footage of painted surfaces and applied paint 9775 specifications. 9776 e. Square yards and type of paving. 9777 f. Square footage of pool surfaces. 9778 g. Specifications of any item for which the full funding of 9779 the deferred maintenance expense or replacement cost would 9780 require a reserve contribution of more than $600 per year for 9781 any unit within the association. 9782 3.2.Expenses for a unit owner: 9783 a. Rent for the unit, if subject to a lease. 9784 b. Rent payable by the unit owner directly to the lessor or 9785 agent under any recreational lease or lease for the use of 9786 commonly used facilities, which use and payment is a mandatory 9787 condition of ownership and is not included in the common expense 9788 or assessments for common maintenance paid by the unit owners to 9789 the association. 9790 (d) The following statement in conspicuous type: THE BUDGET 9791 CONTAINED IN THIS OFFERING CIRCULAR HAS BEEN PREPARED IN 9792 ACCORDANCE WITH THE COMMON INTEREST COMMUNITYCONDOMINIUMACT 9793 AND IS A GOOD FAITH ESTIMATE ONLY AND REPRESENTS AN 9794 APPROXIMATION OF FUTURE EXPENSES BASED ON FACTS AND 9795 CIRCUMSTANCES EXISTING AT THE TIME OF ITS PREPARATION. ACTUAL 9796 COSTS OF SUCH ITEMS MAY EXCEED THE ESTIMATED COSTS. SUCH CHANGES 9797 IN COST DO NOT CONSTITUTE MATERIAL ADVERSE CHANGES IN THE 9798 OFFERING. 9799 (e) Each budget for an association prepared by a developer 9800 consistent with this subsection shall be prepared in good faith 9801 and shall reflect accurate estimated amounts for the required 9802 items in paragraph (c) at the time of the filing of the offering 9803 circular with the division, and subsequent increased amounts of 9804 any item included in the association’s estimated budget that are 9805 beyond the control of the developer shall not be considered an 9806 amendment that would give rise to rescission rights set forth in 9807 s. 718.503(1)(a) or (b), nor shall such increases modify, void, 9808 or otherwise affect any guarantee of the developer contained in 9809 the offering circular or any purchase contract. It is the intent 9810 of this paragraph to clarify existing law. 9811 (f) The estimated amounts shall be stated for a period of 9812 at least 12 months and may distinguish between the periods 9813periodprior to the time unit owners other than the developer 9814 elect a majority of the board of administration and the period 9815 after that date. 9816 (22) A schedule of estimated closing expenses to be paid by 9817 a buyer or lessee of a unit and a statement of whether title 9818 opinion or title insurance policy is available to the buyer and, 9819 if so, at whose expense. 9820 (23) The identity of the developer and the chief operating 9821 officer or principal directing the creation and sale of the 9822 common interest communitycondominiumand a statement of its and 9823 his or her experience in this field. 9824 (24) Copies of the following, to the extent they are 9825 applicable, shall be included as exhibits: 9826 (a) The documentsdeclarationof the common interest 9827 communitycondominium, or the proposed documentsdeclarationif 9828 the documents havedeclaration hasnot been recorded. 9829 (b) The articles of incorporation creating the association. 9830 (c) The bylaws of the association. 9831 (d) The ground lease or other underlying lease of the 9832 common interest communitycondominium. 9833 (e) The management agreement and all maintenance and other 9834 contracts for management of the association and operation of the 9835 common interest communitycondominiumand facilities used by the 9836 unit owners having a service term in excess of 1 year. 9837 (f) The estimated operating budget for the common interest 9838 communitycondominiumand the required schedule of unit owners’ 9839 expenses. 9840 (g) A copy of the floor plan of the unit and the plot plan 9841 showing the location of the residential buildings and the 9842 recreation and other common areas. 9843 (h) The lease of recreational and other facilities that 9844 will be used only by unit owners of the subject common interest 9845 communitycondominium. 9846 (i) The lease of facilities used by owners and others. 9847 (j) The form of unit lease, if the offer is of a leasehold. 9848 (k) A declaration of servitude of properties serving the 9849 common interest communitycondominiumbut not owned by unit 9850 owners or leased to them or the association. 9851 (l) The statement of condition of the existing building or 9852 buildings, if the offering is of units in an operation being 9853 converted to common interest communitycondominiumownership. 9854 (m) The statement of inspection for termite damage and 9855 treatment of the existing improvements, if the common interest 9856 communitycondominiumis a conversion. 9857 (n) The form of agreement for sale or lease of units. 9858 (o) A copy of the agreement for escrow of payments made to 9859 the developer prior to closing. 9860 (p) A copy of the documents containing any restrictions on 9861 use of the property required by subsection (17). 9862 (q) A copy of the governance form as referenced in s. 9863 718.503(2)(a). 9864 (25) Any prospectus or offering circular complying, prior 9865 to the effective date of this act, with the provisions of former 9866 ss. 711.69 and 711.802 may continue to be used without amendment 9867 or may be amended to comply with this chapter. 9868 (26) A brief narrative description of the location and 9869 effect of all existing and intended easements located or to be 9870 located on the common interest communitycondominiumproperty 9871 other than those described in the documentsdeclaration. 9872 (27) If the developer is required by state or local 9873 authorities to obtain acceptance or approval of any dock or 9874 marina facilities intended to serve the common interest 9875 communitycondominium, a copy of any such acceptance or approval 9876 acquired by the time of filing with the division under s. 9877 718.502(1) or a statement that such acceptance or approval has 9878 not been acquired or received. 9879 (28) Evidence demonstrating that the developer has an 9880 ownership, leasehold, or contractual interest in the land upon 9881 which the common interest communitycondominiumis to be 9882 developed. 9883 Section 101. Section 718.506, Florida Statutes, is amended 9884 to read: 9885 718.506 Publication of false and misleading information.— 9886 (1) Any person who, in reasonable reliance upon any 9887 material statement or information that is false or misleading 9888 and published by or under authority from the developer in 9889 advertising and promotional materials, including, but not 9890 limited to, a prospectus, the items required as exhibits to a 9891 prospectus, brochures, and newspaper advertising, pays anything 9892 of value toward the purchase of a common interest community 9893condominiumparcel located in this state shall have a cause of 9894 action to rescind the contract or collect damages from the 9895 developer for his or her loss prior to the closing of the 9896 transaction. After the closing of the transaction, the purchaser 9897 shall have a cause of action against the developer for damages 9898 under this section from the time of closing until 1 year after 9899 the date upon which the last of the events described in 9900 paragraphs (a) through (d) shall occur: 9901 (a) The closing of the transaction; 9902 (b) The first issuance by the applicable governmental 9903 authority of a certificate of occupancy or other evidence of 9904 sufficient completion of construction of the building containing 9905 the unit to allow lawful occupancy of the unit. In counties or 9906 municipalities in which certificates of occupancy or other 9907 evidences of completion sufficient to allow lawful occupancy are 9908 not customarily issued, for the purpose of this section, 9909 evidence of lawful occupancy shall be deemed to be given or 9910 issued upon the date that such lawful occupancy of the unit may 9911 first be allowed under prevailing applicable laws, ordinances, 9912 or statutes; 9913 (c) The completion by the developer of the common elements 9914 and such recreational facilities, whether or not the same are 9915 common elements, which the developer is obligated to complete or 9916 provide under the terms of the written contract or written 9917 agreement for purchase or lease of the unit; or 9918 (d) In the event there shall not be a written contract or 9919 agreement for sale or lease of the unit, then the completion by 9920 the developer of the common elements and such recreational 9921 facilities, whether or not the same are common elements, which 9922 the developer would be obligated to complete under any rule of 9923 law applicable to the developer’s obligation. 9924 9925 Under no circumstances shall a cause of action created or 9926 recognized under this section survive for a period of more than 9927 5 years after the closing of the transaction. 9928 (2) In any action for relief under this section or under s. 9929 718.503, the prevailing party shall be entitled to recover 9930 reasonable attorneyattorney’sfees. 9931 Section 102. Section 718.507, Florida Statutes, is amended 9932 to read: 9933 718.507 Zoning and building laws, ordinances, and 9934 regulations.—All laws, ordinances, and regulations concerning 9935 buildings or zoning shall be construed and applied with 9936 reference to the nature and use of such property, without regard 9937 to the form of ownership. No law, ordinance, or regulation shall 9938 establish any requirement concerning the use, location, 9939 placement, or construction of buildings or other improvements 9940 which are, or may thereafter be, subjected to the common 9941 interest communitycondominiumform of ownership, unless such 9942 requirement shall be equally applicable to all buildings and 9943 improvements of the same kind not then, or thereafter to be, 9944 subjected to the common interest communitycondominiumform of 9945 ownership. This section does not apply if the owner in fee of 9946 any land enters into and records a covenant that existing 9947 improvements or improvements to be constructed shall not be 9948 converted to the common interest communitycondominiumform of 9949 residential ownership prior to 5 years after the later of the 9950 date of the covenant or completion date of the improvements. 9951 Such covenant shall be entered into with the governing body of 9952 the municipality in which the land is located or, if the land is 9953 not located in a municipality, with the governing body of the 9954 county in which the land is located. 9955 Section 103. Section 718.508, Florida Statutes, is amended 9956 to read: 9957 718.508 Regulation by Division of Hotels and Restaurants. 9958 In addition to the authority, regulation, or control exercised 9959 by the Division of Common Interest CommunitiesFlorida9960Condominiums, Timeshares, and Mobile Homespursuant to this act 9961 with respect to common interest communitiescondominiums, 9962 buildings included in a common interest communitycondominium9963 property are subject to the authority, regulation, or control of 9964 the Division of Hotels and Restaurants of the Department of 9965 Business and Professional Regulation, to the extent provided in 9966 chapter 399. 9967 Section 104. Section 718.509, Florida Statutes, is amended 9968 to read: 9969 718.509 Division of Common Interest CommunitiesFlorida9970Condominiums, Timeshares, and Mobile HomesTrust Fund.— 9971 (1) There is created within the State Treasury the Division 9972 of Common Interest CommunitiesFlorida Condominiums, Timeshares,9973and Mobile HomesTrust Fund to be used for the administration 9974 and operation of this chapterand chapters 718, 719, 721, and9975723by the division. 9976 (2) All moneys collected by the division from fees, fines, 9977 or penalties or from costs awarded to the division by a court or 9978 administrative final order shall be paid into the Division of 9979 Common Interest CommunitiesFlorida Condominiums, Timeshares,9980and Mobile HomesTrust Fund. The Legislature shall appropriate 9981 funds from this trust fund sufficient to carry out the 9982 provisions of this chapter and the provisions of law with 9983 respect to each category of business covered by the trust fund. 9984 The division shall maintain separate revenue accounts in the 9985 trust fund for each of the businesses regulated by the division. 9986 The division shall provide for the proportionate allocation 9987 among the accounts of expenses incurred by the division in the 9988 performance of its duties with respect to each of these 9989 businesses. As part of its normal budgetary process, the 9990 division shall prepare an annual report of revenue and allocated 9991 expenses related to the operation of each of these businesses 9992 which may be used to determine fees charged by the division. 9993 This subsection shall operate pursuant to the provisions of s. 9994 215.20. 9995 Section 105. Section 718.604, Florida Statutes, is amended 9996 to read: 9997 718.604 Short title.—This part shall be known and may be 9998 cited as the “Roth Act” in memory of Mr. James S. Roth, 9999 Director, Division of Florida Land Sales and Condominiums, 1979 10000 1980. 10001 Section 106. Section 718.606, Florida Statutes, is amended 10002 to read: 10003 718.606 Conversion of existing improvements to common 10004 interest communitycondominium; rental agreements.—When existing 10005 improvements are converted to ownership as a residential common 10006 interest communitycondominium: 10007 (1)(a) Each residential tenant who has resided in the 10008 existing improvements for at least the 180 days preceding the 10009 date of the written notice of intended conversion shall have the 10010 right to extend an expiring rental agreement upon the same terms 10011 for a period that will expire no later than 270 days after the 10012 date of the notice. If the rental agreement expires more than 10013 270 days after the date of the notice, the tenant may not 10014 unilaterally extend the rental agreement. 10015 (b) Each other residential tenant shall have the right to 10016 extend an expiring rental agreement upon the same terms for a 10017 period that will expire no later than 180 days after the date of 10018 the written notice of intended conversion. If the rental 10019 agreement expires more than 180 days after the date of the 10020 notice, the tenant may not unilaterally extend the rental 10021 agreement. 10022 (2)(a) In order to extend the rental agreement as provided 10023 in subsection (1), a tenant shall, within 45 days after the date 10024 of the written notice of intended conversion, give written 10025 notice to the developer of the intention to extend the rental 10026 agreement. 10027 (b) If the rental agreement will expire within 45 days 10028 following the date of the notice, the tenant may remain in 10029 occupancy for the 45-day decision period upon the same terms by 10030 giving the developer written notice and paying rent on a pro 10031 rata basis from the expiration date of the rental agreement to 10032 the end of the 45-day period. 10033 (c) The tenant may extend the rental agreement for the full 10034 extension period or a part of the period. 10035 (3) After the date of a notice of intended conversion, a 10036 tenant may terminate any rental agreement, or any extension 10037 period having an unexpired term of 180 days or less, upon 30 10038 days’ written notice to the developer. However, unless the 10039 rental agreement was entered into, extended, or renewed after 10040 the effective date of this part, the tenant may not unilaterally 10041 terminate the rental agreement but may unilaterally terminate 10042 any extension period having an unexpired term of 180 days or 10043 less upon 30 days’ written notice. 10044 (4) A developer may elect to provide tenants who have been 10045 continuous residents of the existing improvements for at least 10046 180 days preceding the date of the written notice of intended 10047 conversion and whose rental agreements expire within 180 days of 10048 the date of the written notice of intended conversion the option 10049 of receiving in cash a tenant relocation payment at least equal 10050 to 1 month’s rent in consideration for extending the rental 10051 agreement for not more than 180 days, rather than extending the 10052 rental agreement for up to 270 days. 10053 (5) A rental agreement may provide for termination by the 10054 developer upon 60 days’ written notice if the rental agreement 10055 is entered into subsequent to the delivery of the written notice 10056 of intended conversion to all tenants and conspicuously states 10057 that the existing improvements are to be converted. No other 10058 provision in a rental agreement shall be enforceable to the 10059 extent that it purports to reduce the extension period provided 10060 by this section or otherwise would permit a developer to 10061 terminate a rental agreement in the event of a conversion. This 10062 subsection applies to rental agreements entered into, extended, 10063 or renewed after the effective date of this part; the 10064 termination provisions of all other rental agreements are 10065 governed by the provisions of s. 718.402(3), Florida Statutes 10066 1979. 10067 (6) Any provision of this section or of the rental 10068 agreement or other contract or agreement to the contrary 10069 notwithstanding, whenever a county, including a charter county, 10070 determines that there exists within the county a vacancy rate in 10071 rental housing of 3 percent or less, the county may adopt an 10072 ordinance or other measure extending the 270-day extension 10073 period described in paragraph (1)(a) and the 180-day extension 10074 described in paragraph (1)(b) for an additional 90 days, if: 10075 (a) Such measure was duly adopted, after notice and public 10076 hearing, in accordance with all applicable provisions of the 10077 charter governing the county and any other applicable laws; and 10078 (b) The governing body has made and recited in such measure 10079 its findings establishing the existence in fact of a housing 10080 emergency so grave as to constitute a serious menace to the 10081 general public and that such controls are necessary and proper 10082 to eliminate such grave housing emergency. 10083 10084 A county ordinance or other measure adopting an additional 90 10085 day extension under the provisions of this section is 10086 controlling throughout the entire county, including a charter 10087 county, where adopted, including all municipalities, unless a 10088 municipality votes not to have it apply within its boundaries. 10089 Section 107. Section 718.608, Florida Statutes, is amended 10090 to read: 10091 718.608 Notice of intended conversion; time of delivery; 10092 content.— 10093 (1) Prior to or simultaneous with the first offering of 10094 individual units to any person, each developer shall deliver a 10095 notice of intended conversion to all tenants of the existing 10096 improvements being converted to residential common interest 10097 communitycondominium. All such notices shall be given within a 10098 72-hour period. 10099 (2)(a) Each notice of intended conversion shall be dated 10100 and in writing. The notice shall contain the following 10101 statement, with the phrases of the following statement which 10102 appear in upper case printed in conspicuous type: 10103 10104 These apartments are being converted to common interest 10105 communitycondominiumby ...(name of developer)..., the 10106 developer. 10107 1. YOU MAY REMAIN AS A RESIDENT UNTIL THE EXPIRATION OF 10108 YOUR RENTAL AGREEMENT. FURTHER, YOU MAY EXTEND YOUR RENTAL 10109 AGREEMENT AS FOLLOWS: 10110 a. If you have continuously been a resident of these 10111 apartments during the last 180 days and your rental agreement 10112 expires during the next 270 days, you may extend your rental 10113 agreement for up to 270 days after the date of this notice. 10114 b. If you have not been a continuous resident of these 10115 apartments for the last 180 days and your rental agreement 10116 expires during the next 180 days, you may extend your rental 10117 agreement for up to 180 days after the date of this notice. 10118 c. IN ORDER FOR YOU TO EXTEND YOUR RENTAL AGREEMENT, YOU 10119 MUST GIVE THE DEVELOPER WRITTEN NOTICE WITHIN 45 DAYS AFTER THE 10120 DATE OF THIS NOTICE. 10121 2. IF YOUR RENTAL AGREEMENT EXPIRES IN THE NEXT 45 DAYS, 10122 you may extend your rental agreement for up to 45 days after the 10123 date of this notice while you decide whether to extend your 10124 rental agreement as explained above. To do so, you must notify 10125 the developer in writing. You will then have the full 45 days to 10126 decide whether to extend your rental agreement as explained 10127 above. 10128 3. During the extension of your rental agreement you will 10129 be charged the same rent that you are now paying. 10130 4. YOU MAY CANCEL YOUR RENTAL AGREEMENT AND ANY EXTENSION 10131 OF THE RENTAL AGREEMENT AS FOLLOWS: 10132a.If your rental agreementbegan or was extended or10133renewed after May 1, 1980, and your rental agreement, including 10134 extensions and renewals, has an unexpired term of 180 days or 10135 less, you may cancel your rental agreement upon 30 days’ written 10136 notice and move. Also, upon 30 days’ written notice, you may 10137 cancel any extension of the rental agreement. 10138b. If your rental agreement was not begun or was not10139extended or renewed after May 1, 1980, you may not cancel the10140rental agreement without the consent of the developer. If your10141rental agreement, including extensions and renewals, has an10142unexpired term of 180 days or less, you may, however, upon 3010143days’ written notice cancel any extension of the rental10144agreement.10145 5. All notices must be given in writing and sent by mail, 10146 return receipt requested, or delivered in person to the 10147 developer at this address: ...(name and address of 10148 developer).... 10149 6. If you have continuously been a resident of these 10150 apartments during the last 180 days: 10151 a. You have the right to purchase your apartment and will 10152 have 45 days to decide whether to purchase. If you do not buy 10153 the unit at that price and the unit is later offered at a lower 10154 price, you will have the opportunity to buy the unit at the 10155 lower price. However, in all events your right to purchase the 10156 unit ends when the rental agreement or any extension of the 10157 rental agreement ends or when you waive this right in writing. 10158 b. Within 90 days you will be provided purchase information 10159 relating to your apartment, including the price of your unit and 10160 the condition of the building. If you do not receive this 10161 information within 90 days, your rental agreement and any 10162 extension will be extended 1 day for each day over 90 days until 10163 you are given the purchase information. If you do not want this 10164 rental agreement extension, you must notify the developer in 10165 writing. 10166 7. If you have any questions regarding this conversion or 10167 the Common Interest CommunityCondominiumAct, you may contact 10168 the developer or the state agency which regulates common 10169 interest communitiescondominiums: The Division of Common 10170 Interest CommunitiesFlorida Condominiums, Timeshares, and10171Mobile Homes, ...(Tallahassee address and telephone number of 10172 division).... 10173 (b) When a developer offers tenants an optional tenant 10174 relocation payment pursuant to s. 718.606(4), the notice of 10175 intended conversion shall contain a statement substantially as 10176 follows: 10177 If you have been a continuous resident of these apartments 10178 for the last 180 days and your lease expires during the next 180 10179 days, you may extend your rental agreement for up to 270 days, 10180 or you may extend your rental agreement for up to 180 days and 10181 receive a cash payment at least equal to 1 month’s rent. You 10182 must make your decision and inform the developer in writing 10183 within 45 days after the date of this notice. 10184 (c) When the rental agreement extension provisions of s. 10185 718.606(6) are applicable to a conversion, subparagraphs 1.a. 10186 and b. of the notice of intended conversion shall read as 10187 follows: 10188 1. YOU MAY REMAIN AS A RESIDENT UNTIL THE EXPIRATION OF 10189 YOUR RENTAL AGREEMENT. FURTHER, YOU MAY EXTEND YOUR RENTAL 10190 AGREEMENT AS FOLLOWS: 10191 a. If you have continuously been a resident of these 10192 apartments during the last 180 days and your rental agreement 10193 expires during the next 360 days, you may extend your rental 10194 agreement for up to 360 days after the date of this notice. 10195 b. If you have not been a continuous resident of these 10196 apartments for the last 180 days and your rental agreement 10197 expires during the next 270 days, you may extend your rental 10198 agreement for up to 270 days after the date of this notice. 10199 (3) Notice of intended conversion may not be waived by a 10200 tenant unless the tenant’s lease conspicuously states that the 10201 building is to be converted and the other tenants residing in 10202 the building have previously received a notice of intended 10203 conversion. 10204 (4) Upon the request of a developer and payment of a fee 10205 prescribed by the rules of the division, not to exceed $50, the 10206 division may verify to a developer that a notice complies with 10207 this section. 10208 (5) Prior to delivering a notice of intended conversion to 10209 tenants of existing improvements being converted to a 10210 residential common interest communitycondominium, each 10211 developer shall file with the division and receive approval of a 10212 copy of the notice of intended conversion. Upon filing, each 10213 developer shall pay to the division a filing fee of $100. 10214 Section 108. Section 718.616, Florida Statutes, is amended 10215 to read: 10216 718.616 Disclosure of condition of building and estimated 10217 replacement costs and notification of municipalities.— 10218 (1) Each developer of a residential common interest 10219 communitycondominiumcreated by converting existing, previously 10220 occupied improvements to such form of ownership shall prepare a 10221 report that discloses the condition of the improvements and the 10222 condition of certain components and their current estimated 10223 replacement costs as of the date of the report. 10224 (2) The following information shall be stated concerning 10225 the improvements: 10226 (a) The date and type of construction. 10227 (b) The prior use. 10228 (c) Whether there is termite damage or infestation and 10229 whether the termite damage or infestation, if any, has been 10230 properly treated. The statement shall be substantiated by 10231 including, as an exhibit, an inspection report by a certified 10232 pest control operator. 10233 (3)(a) Disclosure of condition shall be made for each of 10234 the following components that the existing improvements may 10235 include: 10236 1. Roof. 10237 2. Structure. 10238 3. Fire protection systems. 10239 4. Elevators. 10240 5. Heating and cooling systems. 10241 6. Plumbing. 10242 7. Electrical systems. 10243 8. Swimming pool. 10244 9. Seawalls, pilings, and docks. 10245 10. Pavement and concrete, including roadways, walkways, 10246 and parking areas. 10247 11. Drainage systems. 10248 12. Irrigation systems. 10249 (b) For each component, the following information shall be 10250 disclosed and substantiated by attaching a copy of a certificate 10251 under seal of an architect or engineer authorized to practice in 10252 this state: 10253 1. The age of the component as of the date of the report. 10254 2. The estimated remaining useful life of the component as 10255 of the date of the report. 10256 3. The estimated current replacement cost of the component 10257 as of the date of the report, expressed: 10258 a. As a total amount; and 10259 b. As a per-unit amount, based upon each unit’s 10260 proportional share of the common expenses. 10261 4. The structural and functional soundness of the 10262 component. 10263 (c) Each unit owner and the association are third-party 10264 beneficiaries of the report. 10265 (d) A supplemental report shall be prepared for any 10266 structure or component that is renovated or repaired after 10267 completion of the original report and prior to the recording of 10268 the documentsdeclarationof the common interest community 10269condominium. If the documents aredeclaration isnot recorded 10270 within 1 year after the date of the original report, the 10271 developer shall update the report annually prior to recording 10272 the documentsdeclarationof the common interest community 10273condominium. 10274 (e) The report may not contain representations on behalf of 10275 the development concerning future improvements or repairs and 10276 must be limited to the current condition of the improvements. 10277 (4) If the proposed common interest communitycondominium10278 is situated within a municipality, the disclosure shall include 10279 a letter from the municipality acknowledging that the 10280 municipality has been notified of the proposed creation of a 10281 residential common interest communitycondominiumby conversion 10282 of existing, previously occupied improvements and, in any 10283 county, as defined in s. 125.011(1), acknowledging compliance 10284 with applicable zoning requirements as determined by the 10285 municipality. 10286 Section 109. Section 718.618, Florida Statutes, is amended 10287 to read: 10288 718.618 Converter reserve accounts; warranties.— 10289 (1) When existing improvements are converted to ownership 10290 as a residential common interest communitycondominium, the 10291 developer shall establish converter reserve accounts for capital 10292 expenditures and deferred maintenance, or give warranties as 10293 provided by subsection (6), or post a surety bond as provided by 10294 subsection (7). The developer shall fund the converter reserve 10295 accounts in amounts calculated as follows: 10296 (a)1. When the existing improvements include an air 10297 conditioning system serving more than one unit or property which 10298 the association is responsible to repair, maintain, or replace, 10299 the developer shall fund an air-conditioning reserve account. 10300 The amount of the reserve account shall be the product of the 10301 estimated current replacement cost of the system, as disclosed 10302 and substantiated pursuant to s. 718.616(3)(b), multiplied by a 10303 fraction, the numerator of which shall be the lesser of the age 10304 of the system in years or 9, and the denominator of which shall 10305 be 10. When such air-conditioning system is within 1,000 yards 10306 of the seacoast, the numerator shall be the lesser of the age of 10307 the system in years or 3, and the denominator shall be 4. 10308 2. The developer shall fund a plumbing reserve account. The 10309 amount of the funding shall be the product of the estimated 10310 current replacement cost of the plumbing component, as disclosed 10311 and substantiated pursuant to s. 718.616(3)(b), multiplied by a 10312 fraction, the numerator of which shall be the lesser of the age 10313 of the plumbing in years or 36, and the denominator of which 10314 shall be 40. 10315 3. The developer shall fund a roof reserve account. The 10316 amount of the funding shall be the product of the estimated 10317 current replacement cost of the roofing component, as disclosed 10318 and substantiated pursuant to s. 718.616(3)(b), multiplied by a 10319 fraction, the numerator of which shall be the lesser of the age 10320 of the roof in years or the numerator listed in the following 10321 table. The denominator of the fraction shall be determined based 10322 on the roof type, as follows: 10323 10324 Roof Type Numerator Denominator 10325 a. Built-up roof without insulation 4 5 10326 b. Built-up roof with insulation 4 5 10327 c. Cement tile roof 2545305010328 d. Asphalt shingle roof 14 15 10329 e. Copper roof 30 35 10330 f. Wood shingle roof 9 10 10331 g. All other types 18 20 10332 (b) The age of any component or structure for which the 10333 developer is required to fund a reserve account shall be 10334 measured in years, rounded to the nearest whole year. The amount 10335 of converter reserves to be funded by the developer for each 10336 structure or component shall be based on the age of the 10337 structure or component as disclosed in the inspection report. 10338 The architect or engineer shall determine the age of the 10339 component from the later of: 10340 1. The date when the component or structure was replaced or 10341 substantially renewed, if the replacement or renewal of the 10342 component at least met the requirements of the then-applicable 10343 building code; or 10344 2. The date when the installation or construction of the 10345 existing component or structure was completed. 10346 (c) When the age of a component or structure is to be 10347 measured from the date of replacement or renewal, the developer 10348 shall provide the division with a certificate, under the seal of 10349 an architect or engineer authorized to practice in this state, 10350 verifying: 10351 1. The date of the replacement or renewal; and 10352 2. That the replacement or renewal at least met the 10353 requirements of the then-applicable building code. 10354 (d) In addition to establishing the reserve accounts 10355 specified above, the developer shall establish those other 10356 reserve accounts required by s. 718.112(g)718.112(2)(f), and 10357 shall fund those accounts in accordance with the formula 10358 provided therein. The vote to waive or reduce the funding or 10359 reserves required by s. 718.112(g)718.112(2)(f)does not affect 10360 or negate the obligations arising under this section. 10361 (2)(a) The developer shall fund the reserve account 10362 required by subsection (1), on a pro rata basis upon the sale of 10363 each unit. The developer shall deposit in the reserve account 10364 not less than a percentage of the total amount to be deposited 10365 in the reserve account equal to the percentage of ownership of 10366 the common elements allocable to the unit sold. When a developer 10367 deposits amounts in excess of the minimum reserve account 10368 funding, later deposits may be reduced to the extent of the 10369 excess funding. For the purposes of this subsection, a unit is 10370 considered sold when a fee interest in the unit is transferred 10371 to a third party or the unit is leased for a period in excess of 10372 5 years. 10373 (b) When an association makes an expenditure of converter 10374 reserve account funds before the developer has sold all units, 10375 the developer shall make a deposit in the reserve account. Such 10376 deposit shall be at least equal to that portion of the 10377 expenditure which would be charged against the reserve account 10378 deposit that would have been made for any such unit had the unit 10379 been sold. Such deposit may be reduced to the extent the 10380 developer has funded the reserve account in excess of the 10381 minimum reserve account funding required by this subsection. 10382 This paragraph applies only when the developer has funded 10383 reserve accounts as provided by paragraph (a). 10384 (3) The use of reserve account funds, as provided in this 10385 section, is limited as follows: 10386 (a) Reserve account funds may be spent prior to the 10387 assumption of control of the association by unit owners other 10388 than the developer; and 10389 (b) Reserve account funds may be expended only for repair 10390 or replacement of the specific components for which the funds 10391 were deposited, unless, after assumption of control of the 10392 association by unit owners other than the developer, it is 10393 determined by three-fourths of the voting interests in the 10394 common interest communitycondominiumto expend the funds for 10395 other purposes. 10396 (4) The developer shall establish the reserve account, as 10397 provided in this section, in the name of the association at a 10398 bank, savings and loan association, or trust company located in 10399 this state. 10400 (5) A developer may establish and fund additional converter 10401 reserve accounts. The amount of funding shall be the product of 10402 the estimated current replacement cost of a component, as 10403 disclosed and substantiated pursuant to s. 718.616(3)(b), 10404 multiplied by a fraction, the numerator of which is the age of 10405 the component in years and the denominator of which is the total 10406 estimated life of the component in years. 10407 (6) A developer makes no implied warranties when existing 10408 improvements are converted to ownership as a residential common 10409 interest communitycondominiumand reserve accounts are funded 10410 in accordance with this section. As an alternative to 10411 establishing such reserve accounts, or when a developer fails to 10412 establish the reserve accounts in accordance with this section, 10413 the developer shall be deemed to have granted to the purchaser 10414 of each unit an implied warranty of fitness and merchantability 10415 for the purposes or uses intended. The warranty shall be for a 10416 period beginning with the notice of intended conversion and 10417 continuing for 3 years thereafter, or the recording of the 10418 documentsdeclarationto common interest communitycondominium10419 and continuing for 3 years thereafter, or 1 year after owners 10420 other than the developer obtain control of the association, 10421 whichever occurs last, but in no event more than 5 years. 10422 (a) The warranty provided for in this section is 10423 conditioned upon routine maintenance being performed, unless the 10424 maintenance is an obligation of the developer or a developer 10425 controlled association. 10426 (b) The warranty shall inure to the benefit of each owner 10427 and successor owner. 10428 (c) Existing improvements converted to residential common 10429 interest communitycondominiummay be covered by an insured 10430 warranty program underwritten by an insurance company authorized 10431 to do business in this state, if such warranty program meets the 10432 minimum requirements of this chapter. To the degree that the 10433 warranty program does not meet the minimum requirements of this 10434 chapter, such requirements shall apply. 10435 (7) When a developer desires to post a surety bond, the 10436 developer shall, after notification to the buyer, acquire a 10437 surety bond issued by a company licensed to do business in this 10438 state, if such a bond is readily available in the open market, 10439 in an amount which would be equal to the total amount of all 10440 reserve accounts required under subsection (1), payable to the 10441 association. 10442 (8) The amended provisions of this section do not affect a 10443 conversion of existing improvements when a developer has filed a 10444 notice of intended conversion and the documents required by s. 10445 718.503 or s. 718.504, as applicable, with the division prior to 10446 the effective date of this law, provided: 10447 (a) The documents are proper for filing purposes. 10448 (b) The developer, not later than 6 months after such 10449 filing: 10450 1. Records a declaration for such filing in accordance with 10451 part I. 10452 2. Gives a notice of intended conversion. 10453 (9) This section applies only to the conversion of existing 10454 improvements where construction of the improvement was commenced 10455 prior to its designation by the developer as a common interest 10456 communitycondominium. In such circumstances, s. 718.203 does 10457 not apply. 10458 (10) A developer who sells a common interest community 10459condominiumparcel that is subject to this part shall disclose 10460 in conspicuous type in the contract of sale whether the 10461 developer has established converter reserve accounts, provided a 10462 warranty of fitness and merchantability, or posted a surety bond 10463 for purposes of complying with this section. 10464 Section 110. Section 718.62, Florida Statutes, is amended 10465 to read: 10466 718.62 Prohibition of discrimination against nonpurchasing 10467 tenants.—When existing improvements are converted to common 10468 interest communitycondominium, tenants who have not purchased a 10469 unit in the common interest communitycondominiumbeing created 10470 shall, during the remaining term of the rental agreement and any 10471 extension thereof, be entitled to the same rights, privileges, 10472 and services that were enjoyed by all tenants prior to the date 10473 of the written notice of conversion and that are granted, 10474 offered, or provided to purchasers. 10475 Section 111. Section 718.621, Florida Statutes, is amended 10476 to read: 10477 718.621 Rulemaking authority.—The division is authorized to 10478 adopt rules pursuant to the Administrative Procedure Act to 10479 administer and ensure compliance with developers’ obligations 10480 with respect to common interest communitycondominium10481 conversions concerning the filing and noticing of intended 10482 conversion, rental agreement extensions, rights of first 10483 refusal, and disclosure and postpurchase protections. 10484 Section 112. Part VII of chapter 718, Florida Statutes, 10485 consisting of ss. 718.701, 718.702, 718.703, 718.704, 718.705, 10486 718.706, 718.707, and 718.708, Florida Statutes, is repealed. 10487 Section 113. Sections 719.101, 719.102, 719.103, 719.1035, 10488 719.104, 719.105, 719.1055, 719.106, 719.1064, 719.1065, 10489 719.107, 719.108, 719.109, 719.110, 719.111, 719.112, 719.1124, 10490 719.115, 719.1255, 719.127, 719.128, 719.129, 719.202, 719.203, 10491 719.301, 719.302, 719.3026, 719.303, 719.304, 719.401, 719.4015, 10492 719.402, 719.403, 719.501, 719.502, 719.503, 719.504, 719.505, 10493 719.506, 719.507, 719.508, 719.604, 719.606, 719.608, 719.61, 10494 719.612, 719.614, 719.616, 719.618, 719.62, 719.621, and 10495 719.622, Florida Statutes, are repealed. 10496 Section 114. Chapter 720, Florida Statutes, consisting of 10497 ss. 720.301, 720.3015, 720.302, 720.303, 720.3033, 720.3035, 10498 720.304, 720.305, 720.3053, 720.3055, 720.306, 720.307, 10499 720.3075, 720.308, 720.3085, 720.30851, 720.3086, 720.309, 10500 720.31, 720.311, 720.312, 720.313, 720.315, 720.316, 720.317, 10501 720.401, 720.402, 720.403, 720.404, 720.405, 720.406, and 10502 720.407, Florida Statutes, is repealed. 10503 Section 115. Subsections (2) and (3) of section 721.03, 10504 Florida Statutes, are amended to read: 10505 721.03 Scope of chapter.— 10506 (2) When a timeshare plan is subject to both the provisions 10507 of this chapter and the provisions of chapter 718or chapter10508719, the plan shall meet the requirements of both chapters 10509 unless exempted as provided in this section. The division shall 10510 have the authority to adopt rules differentiating between 10511 timeshare condominiums and nontimeshare condominiums, and 10512 between timeshare cooperatives and nontimeshare cooperatives, in 10513 the interpretation and implementation of chapterchapters718 10514and 719, respectively. In the event of a conflict between the 10515 provisions of this chapter and the provisions of chapter 718or10516chapter 719, the provisions of this chapter shall prevail. 10517 (3) A timeshare plan thatwhichis subject to the 10518 provisions of chapter 718or chapter 719, if fully in compliance 10519 with the provisions of this chapter, is exempt from the 10520 following: 10521 (a) SectionSections718.202and 719.202, relating to sales 10522 or reservation deposits prior to closing. 10523 (b) SectionSections718.502and 719.502, relating to 10524 filing prior to sale or lease. 10525 (c) SectionSections718.503and 719.503, relating to 10526 disclosure prior to sale. 10527 (d) SectionSections718.504and 719.504, relating to 10528 prospectus or offering circular. 10529 (e) Part VI of chapter 718and part VI of chapter 719, 10530 relating to conversion of existing improvements to the 10531 condominium or cooperative form of ownership, respectively, 10532 provided that a developer converting existing improvements to a 10533 timeshare condominium or timeshare cooperative must comply with 10534 ss. 718.606, 718.608, 718.61, and 718.62, or ss. 719.606,10535719.608, 719.61, and 719.62, if applicable, and, if the existing 10536 improvements received a certificate of occupancy more than 18 10537 months before such conversion, one of the following: 10538 1. The accommodations and facilities shall be renovated and 10539 improved to a condition such that the remaining useful life in 10540 years of the roof, plumbing, air-conditioning, and any component 10541 of the structure which has a useful life less than the useful 10542 life of the overall structure is equal to the useful life of 10543 accommodations or facilities that would exist if such 10544 accommodations and facilities were newly constructed and not 10545 previously occupied. 10546 2. The developer shall fund reserve accounts for capital 10547 expenditures and deferred maintenance for the roof, plumbing, 10548 air-conditioning, and any component of the structure the useful 10549 life of which is less than the useful life of the overall 10550 structure. The reserve accounts shall be funded for each 10551 component in an amount equal to the product of the estimated 10552 current replacement cost of such component as of the date of 10553 such conversion (as disclosed and substantiated by a certificate 10554 under the seal of an architect or engineer authorized to 10555 practice in this state) multiplied by a fraction, the numerator 10556 of which shall be the age of the component in years (as 10557 disclosed and substantiated by a certificate under the seal of 10558 an architect or engineer authorized to practice in this state) 10559 and the denominator of which shall be the total useful life of 10560 the component in years (as disclosed and substantiated by a 10561 certificate under the seal of an architect or engineer 10562 authorized to practice in this state). Alternatively, the 10563 reserve accounts may be funded for each component in an amount 10564 equal to the amount that, except for the application of this 10565 subsection, would be required to be maintained pursuant to s. 10566 718.618(1)or s. 719.618(1). The developer shall fund the 10567 reserve accounts contemplated in this subparagraph out of the 10568 proceeds of each sale of a timeshare interest, on a pro rata 10569 basis, in an amount not less than a percentage of the total 10570 amount to be deposited in the reserve account equal to the 10571 percentage of ownership allocable to the timeshare interest 10572 sold. When an owners’ association makes an expenditure of 10573 reserve account funds before the developer has initially sold 10574 all timeshare interests, the developer shall make a deposit in 10575 the reserve account if the reserve account is insufficient to 10576 pay the expenditure. Such deposit shall be at least equal to 10577 that portion of the expenditure which would be charged against 10578 the reserve account deposit that would have been made for any 10579 such timeshare interest had the timeshare interest been 10580 initially sold. When a developer deposits amounts in excess of 10581 the minimum reserve account funding, later deposits may be 10582 reduced to the extent of the excess funding. 10583 3. The developer shall provide each purchaser with a 10584 warranty of fitness and merchantability pursuant to s. 10585 718.618(6)or s. 719.618(6). 10586 Section 116. Subsections (11), (34), and (40) of section 10587 721.05, Florida Statutes, are amended to read: 10588 721.05 Definitions.—As used in this chapter, the term: 10589 (11) “Division” means the Division of Common Interest 10590 CommunitiesFlorida Condominiums, Timeshares, and Mobile Homes10591 of the Department of Business and Professional Regulation. 10592 (34) “Timeshare estate” means a right to occupy a timeshare 10593 unit, coupled with a freehold estate or an estate for years with 10594 a future interest in a timeshare property or a specified portion 10595 thereof, or coupled with an ownership interest in a common 10596 interest communitycondominiumunit pursuant to s. 718.103, an10597ownership interest in a cooperative unit pursuant to s. 719.103,10598 or a direct or indirect beneficial interest in a trust that 10599 complies in all respects with s. 721.08(2)(c)4. or s. 10600 721.53(1)(e), provided that the trust does not contain any 10601 personal property timeshare interests. A timeshare estate is a 10602 parcel of real property under the laws of this state. 10603 (40) “Timeshare property” means one or more timeshare units 10604 subject to the same timeshare instrument, together with any 10605 other property or rights to property appurtenant to those 10606 timeshare units. Notwithstanding anything to the contrary 10607 contained in chapter 718or chapter 719, the timeshare 10608 instrument for a timeshare common interest communitycondominium10609 or cooperative may designate personal property, contractual 10610 rights, affiliation agreements of component sites of vacation 10611 clubs, exchange companies, or reservation systems, or any other 10612 agreements or personal property, as common elements or limited 10613 common elements of the timeshare common interest community 10614condominiumor cooperative. 10615 Section 117. Paragraph (d) of subsection (2) and paragraph 10616 (q) of subsection (5) of section 721.07, Florida Statutes, are 10617 amended to read: 10618 721.07 Public offering statement.—Prior to offering any 10619 timeshare plan, the developer must submit a filed public 10620 offering statement to the division for approval as prescribed by 10621 s. 721.03, s. 721.55, or this section. Until the division 10622 approves such filing, any contract regarding the sale of that 10623 timeshare plan is subject to cancellation by the purchaser 10624 pursuant to s. 721.10. 10625 (2) 10626 (d) A developer shall have the authority to deliver to 10627 purchasers any purchaser public offering statement that is not 10628 yet approved by the division, provided that the following shall 10629 apply: 10630 1. At the time the developer delivers an unapproved 10631 purchaser public offering statement to a purchaser pursuant to 10632 this paragraph, the developer shall deliver a fully completed 10633 and executed copy of the purchase contract required by s. 721.06 10634 that contains the following statement in conspicuous type in 10635 substantially the following form which shall replace the 10636 statements required by s. 721.06(1)(g): 10637 10638 The developer is delivering to you a public offering statement 10639 that has been filed with but not yet approved by the Division of 10640 Common Interest CommunitiesFlorida Condominiums, Timeshares,10641and Mobile Homes. Any revisions to the unapproved public 10642 offering statement you have received must be delivered to you, 10643 but only if the revisions materially alter or modify the 10644 offering in a manner adverse to you. After the division approves 10645 the public offering statement, you will receive notice of the 10646 approval from the developer and the required revisions, if any. 10647 10648 Your statutory right to cancel this transaction without any 10649 penalty or obligation expires 10 calendar days after the date 10650 you signed your purchase contract or the date on which you 10651 receive the last of all documents required to be given to you 10652 pursuant to section 721.07(6), Florida Statutes, or 10 calendar 10653 days after you receive revisions required to be delivered to 10654 you, if any, whichever is later. If you decide to cancel this 10655 contract, you must notify the seller in writing of your intent 10656 to cancel. Your notice of cancellation shall be effective upon 10657 the date sent and shall be sent to ...(Name of Seller)... at 10658 ...(Address of Seller).... Any attempt to obtain a waiver of 10659 your cancellation right is void and of no effect. While you may 10660 execute all closing documents in advance, the closing, as 10661 evidenced by delivery of the deed or other document, before 10662 expiration of your 10-day cancellation period, is prohibited. 10663 10664 2. After receipt of approval from the division and prior to 10665 closing, if any revisions made to the documents contained in the 10666 purchaser public offering statement materially alter or modify 10667 the offering in a manner adverse to a purchaser, the developer 10668 shall send the purchaser such revisions, together with a notice 10669 containing a statement in conspicuous type in substantially the 10670 following form: 10671 10672 The unapproved public offering statement previously delivered to 10673 you, together with the enclosed revisions, has been approved by 10674 the Division of Common Interest CommunitiesFlorida10675Condominiums, Timeshares, and Mobile Homes. Accordingly, your 10676 cancellation right expires 10 calendar days after you sign your 10677 purchase contract or 10 calendar days after you receive these 10678 revisions, whichever is later. If you have any questions 10679 regarding your cancellation rights, you may contact the division 10680 at [insert division’s current address]. 10681 10682 3. After receipt of approval from the division and prior to 10683 closing, if no revisions have been made to the documents 10684 contained in the unapproved purchaser public offering statement, 10685 or if such revisions do not materially alter or modify the 10686 offering in a manner adverse to a purchaser, the developer shall 10687 send the purchaser a notice containing a statement in 10688 conspicuous type in substantially the following form: 10689 10690 The unapproved public offering statement previously delivered to 10691 you has been approved by the Division of Common Interest 10692 CommunitiesFloridaCondominiums,Timeshares, and Mobile Homes. 10693 Revisions made to the unapproved public offering statement, if 10694 any, are not required to be delivered to you or are not deemed 10695 by the developer, in its opinion, to materially alter or modify 10696 the offering in a manner that is adverse to you. Accordingly, 10697 your cancellation right expired 10 days after you signed your 10698 purchase contract. A complete copy of the approved public 10699 offering statement is available through the managing entity for 10700 inspection as part of the books and records of the plan. If you 10701 have any questions regarding your cancellation rights, you may 10702 contact the division at [insert division’s current address]. 10703 (5) Every filed public offering statement for a timeshare 10704 plan which is not a multisite timeshare plan shall contain the 10705 information required by this subsection. The division is 10706 authorized to provide by rule the method by which a developer 10707 must provide such information to the division. 10708 (q) If the timeshare plan is part of a phase project, a 10709 statement to that effect and a complete description of the 10710 phasing. Notwithstandingany provisions ofs. 718.110or s.10711719.1055, a developer may develop a timeshare condominium or a 10712 timeshare cooperative in phases if the original declaration of 10713 condominium or cooperative documents submitting the initial 10714 phase to condominium ownership or cooperative ownership or an 10715 amendment to the declaration of condominium or cooperative 10716 documents which has been approved by all of the unit owners and 10717 unit mortgagees provides for phasing. Notwithstandingany10718provisions ofs. 718.403or s. 719.403 to the contrary, the 10719 original declaration of condominium or cooperative documents, or 10720 an amendment to the declaration of condominium or cooperative 10721 documents adopted pursuant to this subsection, need only 10722 generally describe the developer’s phasing plan and the land 10723 which may become part of the condominium or cooperative, and, in 10724 conjunction therewith, the developer may also reserve all rights 10725 to vary his or her phasing plan as to phase boundaries, plot 10726 plans and floor plans, timeshare unit types, timeshare unit 10727 sizes and timeshare unit type mixes, numbers of timeshare units, 10728 and facilities with respect to each subsequent phase. There 10729 shall be no time limit during which a developer of a timeshare 10730 condominium or timeshare cooperative must complete his or her 10731 phasing plan, and the developer shall not be required to notify 10732 owners of existing timeshare estates of his or her decision not 10733 to add one or more proposed phases. 10734 Section 118. Paragraph (b) of subsection (5) and subsection 10735 (8) of section 721.08, Florida Statutes, are amended to read: 10736 721.08 Escrow accounts; nondisturbance instruments; 10737 alternate security arrangements; transfer of legal title.— 10738 (5) 10739 (b) Notwithstanding anything in chapter 718or chapter 71910740 to the contrary, the director of the division shall have the 10741 discretion to accept other assurances pursuant to paragraph (a) 10742 in lieu of any requirement that completion of construction of 10743 one or more accommodations or facilities of a timeshare plan be 10744 accomplished prior to closing. 10745 (8) An escrow agent holding escrowed funds pursuant to this 10746 chapter that have not been claimed for a period of 5 years after 10747 the date of deposit shall make at least one reasonable attempt 10748 to deliver such unclaimed funds to the purchaser who submitted 10749 such funds to escrow. In making such attempt, an escrow agent is 10750 entitled to rely on a purchaser’s last known address as set 10751 forth in the books and records of the escrow agent and is not 10752 required to conduct any further search for the purchaser. If an 10753 escrow agent’s attempt to deliver unclaimed funds to any 10754 purchaser is unsuccessful, the escrow agent may deliver such 10755 unclaimed funds to the division and the division shall deposit 10756 such unclaimed funds in the Division of Common Interest 10757 CommunitiesFlorida Condominiums, Timeshares, and Mobile Homes10758 Trust Fund, 30 days after giving notice in a publication of 10759 general circulation in the county in which the timeshare 10760 property containing the purchaser’s timeshare interest is 10761 located. The purchaser may claim the same at any time prior to 10762 the delivery of such funds to the division. After delivery of 10763 such funds to the division, the purchaser shall have no more 10764 rights to the unclaimed funds. The escrow agent shall not be 10765 liable for any claims from any party arising out of the escrow 10766 agent’s delivery of the unclaimed funds to the division pursuant 10767 to this section. 10768 Section 119. Paragraph (b) of subsection (1), paragraphs 10769 (c), (d), (e), and (j) of subsection (3), paragraph (a) of 10770 subsection (6), and subsections (7) and (8) of section 721.13, 10771 Florida Statutes, are amended to read: 10772 721.13 Management.— 10773 (1) 10774 (b)1. With respect to a timeshare plan which is also 10775 regulated under chapter 718or chapter 719, or which contains a 10776 mandatory owners’ association, the board of administration of 10777 the owners’ association shall be considered the managing entity 10778 of the timeshare plan. 10779 2. During any period of time in which such owners’ 10780 association has entered into a contract with a manager or 10781 management firm to provide some or all of the management 10782 services to the timeshare plan, both the board of administration 10783 and the manager or management firm shall be considered the 10784 managing entity of the timeshare plan and shall be jointly and 10785 severally responsible for the faithful discharge of the duties 10786 of the managing entity. 10787 3. An owners’ association which is the managing entity of a 10788 timeshare plan that includes condominium units or cooperative 10789 units shall not be considered a condominium association pursuant 10790 to the provisions of chapter 718or a cooperative association10791pursuant to the provisions of chapter 719, unless such owners’ 10792 association also operates the entire condominium pursuant to s. 10793 718.111or the entire cooperative pursuant to s. 719.104. 10794 (3) The duties of the managing entity include, but are not 10795 limited to: 10796 (c)1. Providing each year to all purchasers an itemized 10797 annual budget which shall include all estimated revenues and 10798 expenses. The budget shall be in the form required by s. 10799 721.07(5)(t). The budget shall be the final budget adopted by 10800 the managing entity for the current fiscal year. The final 10801 adopted budget is not required to be delivered if the managing 10802 entity has previously delivered a proposed annual budget for the 10803 current fiscal year to purchasers in accordance with chapter 718 10804or chapter 719and the managing entity includes a description of 10805 any changes in the adopted budget with the assessment notice and 10806 a disclosure regarding the purchasers’ right to receive a copy 10807 of the adopted budget, if desired. The budget shall contain, as 10808 a footnote or otherwise, any related party transaction 10809 disclosures or notes which appear in the audited financial 10810 statements of the managing entity for the previous budget year 10811 as required by paragraph (e). A copy of the final budget shall 10812 be filed with the division for review within 30 days after the 10813 beginning of each fiscal year, together with a statement of the 10814 number of periods of 7-day annual use availability that exist 10815 within the timeshare plan, including those periods filed for 10816 sale by the developer but not yet committed to the timeshare 10817 plan, for which annual fees are required to be paid to the 10818 division under s. 721.27. 10819 2. Notwithstanding anything contained in chapter 718or10820chapter 719to the contrary, the board of administration of an 10821 owners’ association which serves as the managing entity may from 10822 time to time reallocate reserves for deferred maintenance and 10823 capital expenditures required by s. 721.07(5)(t)3.a.(XI) from 10824 any deferred maintenance or capital expenditure reserve account 10825 to any other deferred maintenance or capital expenditure reserve 10826 account or accounts in its discretion without the consent of 10827 purchasers of the timeshare plan. Funds in any deferred 10828 maintenance or capital expenditure reserve account may not be 10829 transferred to any operating account without the consent of a 10830 majority of the purchasers of the timeshare plan. The managing 10831 entity may from time to time transfer excess funds in any 10832 operating account to any deferred maintenance or capital 10833 expenditure reserve account without the vote or approval of 10834 purchasers of the timeshare plan. In the event any amount of 10835 reserves for accommodations and facilities of a timeshare plan 10836 containing timeshare licenses or personal property timeshare 10837 interests exists at the end of the term of the timeshare plan, 10838 such reserves shall be refunded to purchasers on a pro rata 10839 basis. 10840 3. With respect to any timeshare plan that has a managing 10841 entity that is an owners’ association, reserves may be waived or 10842 reduced by a majority vote of those voting interests that are 10843 present, in person or by proxy, at a duly called meeting of the 10844 owners’ association. If a meeting of the purchasers has been 10845 called to determine whether to waive or reduce the funding of 10846 reserves and no such result is achieved or a quorum is not 10847 attained, the reserves as included in the budget shall go into 10848 effect. 10849 (d)1. Maintenance of all books and records concerning the 10850 timeshare plan so that all such books and records are reasonably 10851 available for inspection by any purchaser or the authorized 10852 agent of such purchaser. For purposes of this subparagraph, the 10853 books and records of the timeshare plan shall be considered 10854 “reasonably available” if copies of the requested portions are 10855 delivered to the purchaser or the purchaser’s agent within 7 10856 days after the date the managing entity receives a written 10857 request for the records signed by the purchaser. The managing 10858 entity may charge the purchaser a reasonable fee for copying the 10859 requested information not to exceed 25 cents per page. However, 10860 any purchaser or agent of such purchaser shall be permitted to 10861 personally inspect and examine the books and records wherever 10862 located at any reasonable time, under reasonable conditions, and 10863 under the supervision of the custodian of those records. The 10864 custodian shall supply copies of the records where requested and 10865 upon payment of the copying fee. No fees other than those set 10866 forth in this section may be charged for the providing of, 10867 inspection, or examination of books and records. All books and 10868 financial records of the timeshare plan must be maintained in 10869 accordance with generally accepted accounting practices. 10870 2. If the books and records of the timeshare plan are not 10871 maintained on the premises of the accommodations and facilities 10872 of the timeshare plan, the managing entity shall inform the 10873 division in writing of the location of the books and records and 10874 the name and address of the person who acts as custodian of the 10875 books and records at that location. In the event that the 10876 location of the books and records changes, the managing entity 10877 shall notify the division of the change in location and the name 10878 and address of the new custodian within 30 days after the date 10879 the books and records are moved. The purchasers shall be 10880 notified of the location of the books and records and the name 10881 and address of the custodian in the copy of the annual budget 10882 provided to them pursuant to paragraph (c). 10883 3. The division is authorized to adopt rules which specify 10884 those items and matters that shall be included in the books and 10885 records of the timeshare plan and which specify procedures to be 10886 followed in requesting and delivering copies of the books and 10887 records. 10888 4. Notwithstanding any provision of chapter 718or chapter10889719to the contrary, the managing entity may not furnish the 10890 name, address, or electronic mail address of any purchaser to 10891 any other purchaser or authorized agent thereof unless the 10892 purchaser whose name, address, or electronic mail address is 10893 requested first approves the disclosure in writing. 10894 (e) Arranging for an annual audit of the financial 10895 statements of the timeshare plan by a certified public 10896 accountant licensed by the Board of Accountancy of the 10897 Department of Business and Professional Regulation, in 10898 accordance with generally accepted auditing standards as defined 10899 by the rules of the Board of Accountancy of the Department of 10900 Business and Professional Regulation. The financial statements 10901 required by this section must be prepared on an accrual basis 10902 using fund accounting, and must be presented in accordance with 10903 generally accepted accounting principles. A copy of the audited 10904 financial statements must be filed with the division for review 10905 and forwarded to the board of directors and officers of the 10906 owners’ association, if one exists, no later than 5 calendar 10907 months after the end of the timeshare plan’s fiscal year. If no 10908 owners’ association exists, each purchaser must be notified, no 10909 later than 5 months after the end of the timeshare plan’s fiscal 10910 year, that a copy of the audited financial statements is 10911 available upon request to the managing entity. Notwithstanding 10912 any requirement of s. 718.111(13)or s. 719.104(4), the audited 10913 financial statements required by this section are the only 10914 annual financial reporting requirements for timeshare common 10915 interest communitiescondominiumsor timeshare cooperatives. 10916 (j) Notwithstanding anything contained in chapter 718or10917chapter 719to the contrary, purchasers shall not have the power 10918 to cancel contracts entered into by the managing entity relating 10919 to a master or community antenna television system, a franchised 10920 cable television service, or any similar paid television 10921 programming service or bulk rate services agreement. 10922 (6)(a) The managing entity of any timeshare plan located in 10923 this state, including, but not limited to, those plans created 10924 with respect to a condominium pursuant to chapter 718or a10925cooperative pursuant to chapter 719, may deny the use of the 10926 accommodations and facilities of the timeshare plan, including 10927 the denial of the right to make a reservation or the 10928 cancellation of a confirmed reservation for timeshare periods in 10929 a floating reservation timeshare plan, to any purchaser who is 10930 delinquent in the payment of any assessments made by the 10931 managing entity against such purchaser for common expenses or 10932 for ad valorem real estate taxes pursuant to this chapter or 10933 pursuant to s. 192.037. Such denial of use shall also extend to 10934 those parties claiming under the delinquent purchaser described 10935 in paragraphs (b) and (c). For purposes of this subsection, a 10936 purchaser shall be considered delinquent in the payment of a 10937 given assessment only upon the expiration of 60 days after the 10938 date the assessment is billed to the purchaser or upon the 10939 expiration of 60 days after the date the assessment is due, 10940 whichever is later. For purposes of this subsection, an 10941 affiliated exchange program shall be any exchange program which 10942 has a contractual relationship with the creating developer or 10943 the managing entity of the timeshare plan, or any exchange 10944 program that notifies the managing entity in writing that it has 10945 members that are purchasers of the timeshare plan, and the 10946 exchange companies operating such affiliated exchange programs 10947 shall be affiliated exchange companies. Any denial of use for 10948 failure to pay assessments shall be implemented only pursuant to 10949 this subsection. 10950 (7) Unless the articles of incorporation, the bylaws, or 10951 the provisions of this chapter provide for a higher quorum 10952 requirement, the percentage of voting interests required to make 10953 decisions and to constitute a quorum at a meeting of the members 10954 of a timeshare condominium or owners’ association shall be 15 10955 percent of the voting interests. If a quorum is not present at 10956 any meeting of the owners’ association at which members of the 10957 board of administration are to be elected, the meeting may be 10958 adjourned and reconvened within 90 days for the sole purpose of 10959 electing members of the board of administration, and the quorum 10960 for such adjourned meeting shall be 15 percent of the voting 10961 interests. This provision shall apply notwithstanding any 10962 provision of chapter 718or chapter 719to the contrary. 10963 (8) Notwithstanding anything to the contrary in s. 718.110, 10964 s. 718.113, or s. 718.114, or s. 719.1055, the board of 10965 administration of any owners’ association that operates a 10966 timeshare condominium pursuant to s. 718.111, or a timeshare10967cooperative pursuant to s. 719.104,shall have the power to make 10968 material alterations or substantial additions to the 10969 accommodations or facilities of such timeshare condominium or 10970 timeshare cooperative without the approval of the owners’ 10971 association. However, if the timeshare condominium or timeshare 10972 cooperative contains any residential units that are not subject 10973 to the timeshare plan, such action by the board of 10974 administration must be approved by a majority of the owners of 10975 such residential units. Unless otherwise provided in the 10976 timeshare instrument as originally recorded, no such amendment 10977 may change the configuration or size of any accommodation in any 10978 material fashion, or change the proportion or percentage by 10979 which a member of the owners’ association shares the common 10980 expenses, unless the record owners of the affected units or 10981 timeshare interests and all record owners of liens on the 10982 affected units or timeshare interests join in the execution of 10983 the amendment. 10984 Section 120. Subsection (3) of section 721.14, Florida 10985 Statutes, is amended to read: 10986 721.14 Discharge of managing entity.— 10987 (3) The managing entity of a timeshare plan subject to the 10988 provisions of chapter 718or chapter 719may be discharged 10989 pursuant to chapter 718or chapter 719, respectively,or its 10990 successor or pursuant to this section. 10991 Section 121. Paragraph (b) of subsection (1) and 10992 subsections (6), (9), and (11) of section 721.15, Florida 10993 Statutes, are amended to read: 10994 721.15 Assessments for common expenses.— 10995 (1) 10996 (b) Notwithstanding any provision of chapter 718or chapter10997719to the contrary, the allocation of total common expenses for 10998 a condominium or a cooperative timeshare plan may vary on any 10999 reasonable basis, including, but not limited to, timeshare unit 11000 size, timeshare unit type, timeshare unit location, specific 11001 identification, or a combination of these factors, if the 11002 percentage interest in the common elements attributable to each 11003 timeshare condominium parcel or timeshare cooperative parcel 11004 equals the share of the total common expenses allocable to that 11005 parcel. The share of a timeshare interest in the common expenses 11006 allocable to the timeshare condominium parcel or the timeshare 11007 cooperative parcel containing such interest may vary on any 11008 reasonable basis if the timeshare interest’s share of its 11009 parcel’s common expense allocation is equal to that timeshare 11010 interest’s share of the percentage interest in common elements 11011 attributable to such parcel. 11012 (6) Notwithstanding any contrary requirements of s. 11013 718.112(2)(h)718.112(2)(g) or s. 719.106(1)(g), for timeshare 11014 plans subject to this chapter, assessments against purchasers 11015 need not be made more frequently than annually. 11016 (9)(a) Anything contained in chapter 718or chapter 719to 11017 the contrary notwithstanding, the managing entity of a timeshare 11018 plan shall not commingle operating funds with reserve funds; 11019 however, the managing entity may maintain operating and reserve 11020 funds within a single account for a period not to exceed 30 days 11021 after the date on which the managing entity received payment of 11022 such funds. 11023 (b) Anything contained in chapter 718or chapter 719to the 11024 contrary notwithstanding, a managing entity which serves as 11025 managing entity of more than one timeshare plan, or of more than 11026 one component site pursuant to part II, shall not commingle the 11027 common expense funds of any one timeshare plan or component site 11028 with the common expense funds of any other timeshare plan or 11029 component site. However, the managing entity may maintain common 11030 expense funds of multiple timeshare plans or multiple component 11031 sites within a single account for a period not to exceed 30 days 11032 after the date on which the managing entity received payment of 11033 such funds. 11034 (11) Notwithstanding any provision of chapter 718or11035chapter 719to the contrary, any determination by a timeshare 11036 association of whether assessments exceed 115 percent of 11037 assessments for the prior fiscal year shall exclude anticipated 11038 expenses for insurance coverage required by law or by the 11039 timeshare instrument to be maintained by the association. 11040 Section 122. Subsection (3) of section 721.16, Florida 11041 Statutes, is amended to read: 11042 721.16 Liens for overdue assessments; liens for labor 11043 performed on, or materials furnished to, a timeshare unit.— 11044 (3) The lien is effective from the date of recording a 11045 claim of lien in the official records of the county or counties 11046 in which the timeshare interest is located. The claim of lien 11047 shall state the name of the timeshare plan and identify the 11048 timeshare interest for which the lien is effective, state the 11049 name of the purchaser, state the assessment amount due, and 11050 state the due dates. Notwithstanding any provision of s. 11051 718.116(6)718.116(5) or s. 719.108(4)to the contrary, the lien 11052 is effective until satisfied or until 5 years have expired after 11053 the date the claim of lien is recorded unless, within that time, 11054 an action to enforce the lien is commenced pursuant to 11055 subsection (2). A claim of lien for assessments may include only 11056 assessments which are due when the claim is recorded. A claim of 11057 lien shall be signed and acknowledged by an officer or agent of 11058 the managing entity. Upon full payment, the person making the 11059 payment is entitled to receive a satisfaction of the lien. 11060 Section 123. Subsections (1) and (4) of section 721.165, 11061 Florida Statutes, are amended to read: 11062 721.165 Insurance.— 11063 (1) Notwithstanding any provision contained in the 11064 timeshare instrument or in this chapter or,chapter 718, or11065chapter 719to the contrary, the managing entity shall use due 11066 diligence to obtain adequate casualty insurance as a common 11067 expense of the timeshare plan to protect the timeshare property 11068 against all reasonably foreseeable perils, in such covered 11069 amounts and subject to such reasonable exclusions and reasonable 11070 deductibles as are consistent with the provisions of this 11071 section. 11072 (4) Notwithstanding any provision contained in the 11073 timeshare instrument or in this chapter or,chapter 718, or11074chapter 719to the contrary, the managing entity is authorized 11075 to apply any existing reserves for deferred maintenance and 11076 capital expenditures toward payment of insurance deductibles or 11077 the repair or replacement of the timeshare property after a 11078 casualty without regard to the purposes for which such reserves 11079 were originally established. 11080 Section 124. Subsection (1) of section 721.17, Florida 11081 Statutes, is amended to read: 11082 721.17 Transfer of interest; resale transfer agreements.— 11083 (1) Except in the case of a timeshare plan subject to the 11084 provisions of chapter 718or chapter 719, no developer, owner of 11085 the underlying fee, or owner of the underlying personal property 11086 shall sell, lease, assign, mortgage, or otherwise transfer his 11087 or her interest in the accommodations and facilities of the 11088 timeshare plan except by an instrument evidencing the transfer 11089 recorded in the public records of the county in which such 11090 accommodations and facilities are located or, with respect to 11091 personal property timeshare plans, in full compliance with s. 11092 721.08. The instrument shall be executed by both the transferor 11093 and transferee and shall state: 11094 (a) That its provisions are intended to protect the rights 11095 of all purchasers of the plan. 11096 (b) That its terms may be enforced by any prior or 11097 subsequent timeshare purchaser so long as that purchaser is not 11098 in default of his or her obligations. 11099 (c) That so long as a purchaser remains in good standing 11100 with respect to her or his obligations under the timeshare 11101 instrument, including making all payments to the managing entity 11102 required by the timeshare instrument with respect to the annual 11103 common expenses of the timeshare plan, the transferee shall 11104 honor all rights of such purchaser relating to the subject 11105 accommodation or facility as reflected in the timeshare 11106 instrument. 11107 (d) That the transferee will fully honor all rights of 11108 timeshare purchasers to cancel their contracts and receive 11109 appropriate refunds. 11110 (e) That the obligations of the transferee under such 11111 instrument will continue to exist despite any cancellation or 11112 rejection of the contracts between the developer and purchaser 11113 arising out of bankruptcy proceedings. 11114 Section 125. Subsection (3) of section 721.20, Florida 11115 Statutes, is amended to read: 11116 721.20 Licensing requirements; suspension or revocation of 11117 license; exceptions to applicability; collection of advance fees 11118 for listings unlawful.— 11119 (3) A solicitor who has violated the provisions of chapter 11120 468, chapter 718,chapter 719,this chapter, or the rules of the 11121 division governing timesharing shall be subject to the 11122 provisions of s. 721.26. Any developer or other person who 11123 supervises, directs, or engages the services of a solicitor 11124 shall be liable for any violation of the provisions of chapter 11125 468, chapter 718,chapter 719,this chapter, or the rules of the 11126 division governing timesharing committed by such solicitor. 11127 Section 126. Subsections (1) and (2) of section 721.24, 11128 Florida Statutes, are amended to read: 11129 721.24 Firesafety.— 11130 (1) Any: 11131 (a) Facility or accommodation of a timeshare plan, as 11132 defined in this chapter or,chapter 718,or chapter 719,which 11133 is of three stories or more and for which the construction 11134 contract has been let after September 30, 1983, with interior 11135 corridors which do not have direct access from the timeshare 11136 unit to exterior means of egress, or 11137 (b) Building over 75 feet in height that has direct access 11138 from the timeshare unit to exterior means of egress and for 11139 which the construction contract has been let after September 30, 11140 1983, 11141 11142 shall be equipped with an automatic sprinkler system installed 11143 in compliance with the provisions prescribed in the National 11144 Fire Protection Association publication NFPA No. 13 (1985), 11145 “Standards for the Installation of Sprinkler Systems.” The 11146 sprinkler installation may be omitted in closets which are not 11147 over 24 square feet in area and in bathrooms which are not over 11148 55 square feet in area, which closets and bathrooms are located 11149 in timeshare units. Each timeshare unit shall be equipped with 11150 an approved listed single-station smoke detector meeting the 11151 minimum requirements of NFPA-74 (1984), “Standards for the 11152 Installation, Maintenance and Use of Household Fire Warning 11153 Equipment,” powered from the building electrical service, 11154 notwithstanding the number of stories in the structure, if the 11155 contract for construction is let after September 30, 1983. 11156 Single-station smoke detection is not required when a timeshare 11157 unit’s smoke detectors are connected to a central alarm system 11158 which also alarms locally. 11159 (2) Any timeshare unit of a timeshare plan, as defined in 11160 this chapter or,chapter 718, or chapter 719which is of three 11161 stories or more and for which the construction contract was let 11162 before October 1, 1983, shall be equipped with: 11163 (a) A system which complies with subsection (1); or 11164 (b) An approved sprinkler system for all interior 11165 corridors, public areas, storage rooms, closets, kitchen areas, 11166 and laundry rooms, less individual timeshare units, if the 11167 following conditions are met: 11168 1. There is a minimum 1-hour separation between each 11169 timeshare unit and between each timeshare unit and a corridor. 11170 2. The building is constructed of noncombustible materials. 11171 3. The egress conditions meet the requirements of s. 5-3 of 11172 the Life Safety Code, NFPA 101 (1985). 11173 4. The building has a complete automatic fire detection 11174 system which meets the requirements of NFPA-72A (1987) and NFPA 11175 72E (1984), including smoke detectors in each timeshare unit 11176 individually annunciating to a panel at a supervised location. 11177 Section 127. Section 721.26, Florida Statutes, is amended 11178 to read: 11179 721.26 Regulation by division.—The division has the power 11180 to enforce and ensure compliance with this chapter, except for 11181 parts III and IV, using the powers provided in this chapter, as 11182 well as the powers prescribed in chapterchapters718and 719. 11183 In performing its duties, the division shall have the following 11184 powers and duties: 11185 (1) To aid in the enforcement of this chapter, or any 11186 division rule adopted or order issued pursuant to this chapter, 11187 the division may make necessary public or private investigations 11188 within or outside this state to determine whether any person has 11189 violated or is about to violate this chapter, or any division 11190 rule adopted or order issued pursuant to this chapter. 11191 (2) The division may require or permit any person to file a 11192 written statement under oath or otherwise, as the division 11193 determines, as to the facts and circumstances concerning a 11194 matter under investigation. 11195 (3) For the purpose of any investigation under this 11196 chapter, the director of the division or any officer or employee 11197 designated by the director may administer oaths or affirmations, 11198 subpoena witnesses and compel their attendance, take evidence, 11199 and require the production of any matter which is relevant to 11200 the investigation, including the identity, existence, 11201 description, nature, custody, condition, and location of any 11202 books, documents, or other tangible things and the identity and 11203 location of persons having knowledge of relevant facts or any 11204 other matter reasonably calculated to lead to the discovery of 11205 material evidence. Failure to obey a subpoena or to answer 11206 questions propounded by the investigating officer and upon 11207 reasonable notice to all persons affected thereby shall be a 11208 violation of this chapter. In addition to the other enforcement 11209 powers authorized in this subsection, the division may apply to 11210 the circuit court for an order compelling compliance. 11211 (4) The division may prepare and disseminate a prospectus 11212 and other information to assist prospective purchasers, sellers, 11213 and managing entities of timeshare plans in assessing the 11214 rights, privileges, and duties pertaining thereto. 11215 (5) Notwithstanding any remedies available to purchasers, 11216 if the division has reasonable cause to believe that a violation 11217 of this chapter, or of any division rule adopted or order issued 11218 pursuant to this chapter, has occurred, the division may 11219 institute enforcement proceedings in its own name against any 11220 regulated party, as such term is defined in this subsection: 11221 (a)1. “Regulated party,” for purposes of this section, 11222 means any developer, exchange company, seller, managing entity, 11223 owners’ association, owners’ association director, owners’ 11224 association officer, manager, management firm, escrow agent, 11225 trustee, any respective assignees or agents, or any other person 11226 having duties or obligations pursuant to this chapter. 11227 2. Any person who materially participates in any offer or 11228 disposition of any interest in, or the management or operation 11229 of, a timeshare plan in violation of this chapter or relevant 11230 rules involving fraud, deception, false pretenses, 11231 misrepresentation, or false advertising or the disbursement, 11232 concealment, or diversion of any funds or assets, which conduct 11233 adversely affects the interests of a purchaser, and which person 11234 directly or indirectly controls a regulated party or is a 11235 general partner, officer, director, agent, or employee of such 11236 regulated party, shall be jointly and severally liable under 11237 this subsection with such regulated party, unless such person 11238 did not know, and in the exercise of reasonable care could not 11239 have known, of the existence of the facts giving rise to the 11240 violation of this chapter. A right of contribution shall exist 11241 among jointly and severally liable persons pursuant to this 11242 paragraph. 11243 (b) The division may permit any person whose conduct or 11244 actions may be under investigation to waive formal proceedings 11245 and enter into a consent proceeding whereby an order, rule, or 11246 letter of censure or warning, whether formal or informal, may be 11247 entered against that person. 11248 (c) The division may issue an order requiring a regulated 11249 party to cease and desist from an unlawful practice under this 11250 chapter and take such affirmative action as in the judgment of 11251 the division will carry out the purposes of this chapter. 11252 (d)1. The division may bring an action in circuit court for 11253 declaratory or injunctive relief or for other appropriate 11254 relief, including restitution. 11255 2. The division shall have broad authority and discretion 11256 to petition the circuit court to appoint a receiver with respect 11257 to any managing entity which fails to perform its duties and 11258 obligations under this chapter with respect to the operation of 11259 a timeshare plan. The circumstances giving rise to an 11260 appropriate petition for receivership under this subparagraph 11261 include, but are not limited to: 11262 a. Damage to or destruction of any of the accommodations or 11263 facilities of a timeshare plan, where the managing entity has 11264 failed to repair or reconstruct same. 11265 b. A breach of fiduciary duty by the managing entity, 11266 including, but not limited to, undisclosed self-dealing or 11267 failure to timely assess, collect, or disburse the common 11268 expenses of the timeshare plan. 11269 c. Failure of the managing entity to operate the timeshare 11270 plan in accordance with the timeshare instrument and this 11271 chapter. 11272 11273 If, under the circumstances, it appears that the events giving 11274 rise to the petition for receivership cannot be reasonably and 11275 timely corrected in a cost-effective manner consistent with the 11276 timeshare instrument, the receiver may petition the circuit 11277 court to implement such amendments or revisions to the timeshare 11278 instrument as may be necessary to enable the managing entity to 11279 resume effective operation of the timeshare plan, or to enter an 11280 order terminating the timeshare plan, or to enter such further 11281 orders regarding the disposition of the timeshare property as 11282 the court deems appropriate, including the disposition and sale 11283 of the timeshare property held by the owners’ association or the 11284 purchasers. In the event of a receiver’s sale, all rights, 11285 title, and interest held by the owners’ association or any 11286 purchaser shall be extinguished and title shall vest in the 11287 buyer. This provision applies to timeshare estates, personal 11288 property timeshare interests, and timeshare licenses. All 11289 reasonable costs and fees of the receiver relating to the 11290 receivership shall become common expenses of the timeshare plan 11291 upon order of the court. 11292 3. The division may revoke its approval of any filing for 11293 any timeshare plan for which a petition for receivership has 11294 been filed pursuant to this paragraph. 11295 (e)1. The division may impose a penalty against any 11296 regulated party for a violation of this chapter or any rule 11297 adopted thereunder. A penalty may be imposed on the basis of 11298 each day of continuing violation, but in no event may the 11299 penalty for any offense exceed $10,000. All accounts collected 11300 shall be deposited with the Chief Financial Officer to the 11301 credit of the Division of Common Interest CommunitiesFlorida11302Condominiums, Timeshares, and Mobile HomesTrust Fund. 11303 2.a. If a regulated party fails to pay a penalty, the 11304 division shall thereupon issue an order directing that such 11305 regulated party cease and desist from further operation until 11306 such time as the penalty is paid; or the division may pursue 11307 enforcement of the penalty in a court of competent jurisdiction. 11308 b. If an owners’ association or managing entity fails to 11309 pay a civil penalty, the division may pursue enforcement in a 11310 court of competent jurisdiction. 11311 (f) In order to permit the regulated party an opportunity 11312 to appeal such decision administratively or to seek relief in a 11313 court of competent jurisdiction, the order imposing the penalty 11314 or the cease and desist order shall not become effective until 11315 20 days after the date of such order. 11316 (g) Any action commenced by the division shall be brought 11317 in the county in which the division has its executive offices or 11318 in the county where the violation occurred. 11319 (h) Notice to any regulated party shall be complete when 11320 delivered by United States mail, return receipt requested, to 11321 the party’s address currently on file with the division or to 11322 such other address at which the division is able to locate the 11323 party. Every regulated party has an affirmative duty to notify 11324 the division of any change of address at least 5 business days 11325 prior to such change. 11326 (6) The division has authority to adopt rules pursuant to 11327 ss. 120.536(1) and 120.54 to implement and enforce the 11328 provisions of this chapter. 11329 (7)(a) The use of any unfair or deceptive act or practice 11330 by any person in connection with the sales or other operations 11331 of an exchange program or timeshare plan is a violation of this 11332 chapter. 11333 (b) Any violation of the Florida Deceptive and Unfair Trade 11334 Practices Act, ss. 501.201 et seq., relating to the creation, 11335 promotion, sale, operation, or management of any timeshare plan 11336 shall also be a violation of this chapter. 11337 (c) The division may institute proceedings against any such 11338 person and take any appropriate action authorized in this 11339 section in connection therewith, notwithstanding any remedies 11340 available to purchasers. 11341 (8) The failure of any person to comply with any order of 11342 the division is a violation of this chapter. 11343 Section 128. Section 721.28, Florida Statutes, is amended 11344 to read: 11345 721.28 Division of Common Interest CommunitiesFlorida11346Condominiums, Timeshares, and Mobile HomesTrust Fund.—All funds 11347 collected by the division and any amounts paid as fees or 11348 penalties under this chapter shall be deposited in the State 11349 Treasury to the credit of the Division of Common Interest 11350 CommunitiesFlorida Condominiums, Timeshares, and Mobile Homes11351 Trust Fund created by s. 718.509. 11352 Section 129. Paragraph (c) of subsection (1) of section 11353 721.301, Florida Statutes, is amended to read: 11354 721.301 Florida Timesharing, Vacation Club, and Hospitality 11355 Program.— 11356 (1) 11357 (c) The director may designate funds from the Division of 11358 Common Interest CommunitiesFlorida Condominiums, Timeshares,11359and Mobile HomesTrust Fund, not to exceed $50,000 annually, to 11360 support the projects and proposals undertaken pursuant to 11361 paragraph (b). All state trust funds to be expended pursuant to 11362 this section must be matched equally with private moneys and 11363 shall comprise no more than half of the total moneys expended 11364 annually. 11365 Section 130. Subsection (2) of section 721.82, Florida 11366 Statutes, is amended to read: 11367 721.82 Definitions.—As used in this part, the term: 11368 (2) “Assessment lien” means: 11369 (a) A lien for delinquent assessments as provided in ss. 11370 718.116, 719.108,and 721.16; or 11371 (b) A lien for unpaid ad valorem assessments, tax 11372 assessments, and special assessments as provided in s. 11373 192.037(8). 11374 Section 131. Paragraph (b) of subsection (2) of section 11375 721.855, Florida Statutes, is amended to read: 11376 721.855 Procedure for the trustee foreclosure of assessment 11377 liens.—The provisions of this section establish a trustee 11378 foreclosure procedure for assessment liens. 11379 (2) INITIATING THE USE OF A TRUSTEE FORECLOSURE PROCEDURE.— 11380 (b) Before initiating the trustee foreclosure procedure 11381 against any timeshare interest, a claim of lien against the 11382 timeshare interest shall be recorded under s. 721.16 or, if 11383 applicable, s. 718.116or s. 719.108, and the notice of the 11384 intent to file a lien shall be given under s. 718.121 for common 11385 interest communitiestimeshare condominiums and s. 719.108 for11386timeshare cooperatives. 11387 Section 132. Subsection (1) of section 721.86, Florida 11388 Statutes, is amended to read: 11389 721.86 Miscellaneous provisions.— 11390 (1) In the event of a conflict between the provisions of 11391 this part and the other provisions of this chapter, chapter 702, 11392 or other applicable law, the provisions of this part shall 11393 prevail. The procedures in this part must be given effect in the 11394 context of any foreclosure proceedings against timeshare 11395 interests governed by this chapter, chapter 702, or chapter 718,11396or chapter 719. 11397 Section 133. Subsection (2) and paragraph (a) of subsection 11398 (7) of section 723.003, Florida Statutes, are amended to read: 11399 723.003 Definitions.—As used in this chapter, the term: 11400 (2) “Division” means the Division of Common Interest 11401 CommunitiesFlorida Condominiums, Timeshares, and Mobile Homes11402 of the Department of Business and Professional Regulation. 11403 (7)(a) “Mediation” means a process whereby a mediator 11404 appointed by the Division of Common Interest CommunitiesFlorida11405Condominiums, Timeshares, and Mobile Homes, or mutually selected 11406 by the parties, acts to encourage and facilitate the resolution 11407 of a dispute. It is an informal and nonadversarial process with 11408 the objective of helping the disputing parties reach a mutually 11409 acceptable agreement. 11410 Section 134. Paragraph (e) of subsection (5) of section 11411 723.006, Florida Statutes, is amended to read: 11412 723.006 Powers and duties of division.—In performing its 11413 duties, the division has the following powers and duties: 11414 (5) Notwithstanding any remedies available to mobile home 11415 owners, mobile home park owners, and homeowners’ associations, 11416 if the division has reasonable cause to believe that a violation 11417 of any provision of this chapter or related rule has occurred, 11418 the division may institute enforcement proceedings in its own 11419 name against a developer, mobile home park owner, or homeowners’ 11420 association, or its assignee or agent, as follows: 11421 (e)1. The division may impose a civil penalty against a 11422 mobile home park owner or homeowners’ association, or its 11423 assignee or agent, for any violation of this chapter, a properly 11424 adopted park rule or regulation, or a rule adopted pursuant 11425 hereto. A penalty may be imposed on the basis of each separate 11426 violation and, if the violation is a continuing one, for each 11427 day of continuing violation, but in no event may the penalty for 11428 each separate violation or for each day of continuing violation 11429 exceed $5,000. All amounts collected shall be deposited with the 11430 Chief Financial Officer to the credit of the Division of Common 11431 Interest CommunitiesFlorida Condominiums, Timeshares, and11432Mobile HomesTrust Fund. 11433 2. If a violator fails to pay the civil penalty, the 11434 division shall thereupon issue an order directing that such 11435 violator cease and desist from further violation until such time 11436 as the civil penalty is paid or may pursue enforcement of the 11437 penalty in a court of competent jurisdiction. If a homeowners’ 11438 association fails to pay the civil penalty, the division shall 11439 thereupon pursue enforcement in a court of competent 11440 jurisdiction, and the order imposing the civil penalty or the 11441 cease and desist order shall not become effective until 20 days 11442 after the date of such order. Any action commenced by the 11443 division shall be brought in the county in which the division 11444 has its executive offices or in which the violation occurred. 11445 Section 135. Section 723.009, Florida Statutes, is amended 11446 to read: 11447 723.009 Division of Common Interest CommunitiesFlorida11448Condominiums, Timeshares, and Mobile HomesTrust Fund.—All 11449 proceeds from the fees, penalties, and fines imposed pursuant to 11450 this chapter shall be deposited into the Division of Common 11451 Interest CommunitiesFlorida Condominiums, Timeshares, and11452Mobile HomesTrust Fund created by s. 718.509. Moneys in this 11453 fund, as appropriated by the Legislature pursuant to chapter 11454 216, may be used to defray the expenses incurred by the division 11455 in administering the provisions of this chapter. 11456 Section 136. Paragraph (c) of subsection (2) of section 11457 723.0611, Florida Statutes, is amended to read: 11458 723.0611 Florida Mobile Home Relocation Corporation.— 11459 (2) 11460 (c) The corporation shall, for purposes of s. 768.28, be 11461 considered an agency of the state. Agents or employees of the 11462 corporation, members of the board of directors of the 11463 corporation, or representatives of the Division of Common 11464 Interest CommunitiesFlorida Condominiums, Timeshares, and11465Mobile Homesshall be considered officers, employees, or agents 11466 of the state, and actions against them and the corporation shall 11467 be governed by s. 768.28. 11468 Section 137. Section 723.073, Florida Statutes, is amended 11469 to read: 11470 723.073 Conveyance by the association.— 11471 (1) In the event that an association acquires a mobile home 11472 park and intends to reconvey a portion or portions of the 11473 property acquired to members of the association, the association 11474 shall record copies of its articles and bylaws and any 11475 additional covenants, restrictions, or declarations of servitude 11476 affecting the property with the clerk of the circuit court prior 11477 to the conveyance of any portion of the property to an 11478 individual member of the association. To create a mobile home 11479 cooperative after acquisition of the property, the association 11480 shall record the cooperative documents, as required by chapter 11481 718719, in the county where the property is located. The 11482 effective date of the cooperative shall be the date of the 11483 recording. 11484 (2) An association that acquires a mobile home park 11485 pursuant to s. 723.071 is exempt froms. 719.1035 andthe 11486 requirements of part VI of chapter 718and part VI of chapter11487719. 11488 Section 138. Subsection (1) of section 723.0751, Florida 11489 Statutes, is amended to read: 11490 723.0751 Mobile home subdivision homeowners’ association.— 11491 (1) In the event that no homeowners’ association has been 11492 created pursuant to chapter 718ss. 720.301-720.312to operate a 11493 mobile home subdivision, the owners of lots in such mobile home 11494 subdivision shall be authorized to create a mobile home 11495 subdivision homeowners’ association in the manner prescribed in 11496 ss. 723.075, 723.076, and 723.078 which shall have the powers 11497 and duties, to the extent applicable, set forth in ss. 11498 723.002(2) and 723.074. 11499 Section 139. Subsection (5) of section 723.078, Florida 11500 Statutes, is amended to read: 11501 723.078 Bylaws of homeowners’ associations.— 11502 (5) Upon purchase of the mobile home park, the association 11503 organized under this chapter may convert to a condominium, 11504 cooperative, or subdivision. The directors shall have the 11505 authority to amend and restate the articles of incorporation and 11506 bylaws in order to comply with the requirements of chapter 718,11507chapter 719,or other applicable sections of the Florida 11508 Statutes. 11509 Section 140. Subsection (12) of section 723.079, Florida 11510 Statutes, is amended to read: 11511 723.079 Powers and duties of homeowners’ association.— 11512 (12) For a period of 180 days after the date of a purchase 11513 of a mobile home park by the association, the association shall 11514 not be required to comply with the provisions of part V of 11515 chapter 718,part V of chapter 719, or part II of chapter 720,11516 as to mobile home owners or persons who have executed contracts 11517 to purchase mobile homes in the park. 11518 Section 141. Section 723.0791, Florida Statutes, is amended 11519 to read: 11520 723.0791 Mobile home cooperative homeowners’ associations; 11521 elections.—The provisions of s. 718.112719.106(1)(b)11522 notwithstanding, the election of board members in a mobile home 11523 cooperative homeowners’ association may be carried out in the 11524 manner provided for in the bylaws of the association. A mobile 11525 home cooperative is a residential cooperative consisting of real 11526 property to which 10 or more mobile homes are located or are 11527 affixed. 11528 Section 142. Section 723.1255, Florida Statutes, is amended 11529 to read: 11530 723.1255 Alternative resolution of recall disputes.—The 11531 Division of Common Interest CommunitiesFlorida Condominiums,11532Timeshares, and Mobile Homesof the Department of Business and 11533 Professional Regulation shall adopt rules of procedure to govern 11534 binding recall arbitration proceedings. 11535 Section 143. Subsections (3) and (6) of section 768.1325, 11536 Florida Statutes, are amended to read: 11537 768.1325 Cardiac Arrest Survival Act; immunity from civil 11538 liability.— 11539 (3) Notwithstanding any other provision of law to the 11540 contrary, and except as provided in subsection (4), any person 11541 who uses or attempts to use an automated external defibrillator 11542 device on a victim of a perceived medical emergency, without 11543 objection of the victim of the perceived medical emergency, is 11544 immune from civil liability for any harm resulting from the use 11545 or attempted use of such device. In addition, notwithstanding 11546 any other provision of law to the contrary, and except as 11547 provided in subsection (4), any person who acquired the device 11548 and makes it available for use, including, but not limited to, a 11549 community association organized under chapter 617, chapter 718, 11550chapter 719, chapter 720,chapter 721, or chapter 723, is immune 11551 from such liability, if the harm was not due to the failure of 11552 such person to: 11553 (a) Properly maintain and test the device; or 11554 (b) Provide appropriate training in the use of the device 11555 to an employee or agent of the acquirer when the employee or 11556 agent was the person who used the device on the victim, except 11557 that such requirement of training does not apply if: 11558 1. The device is equipped with audible, visual, or written 11559 instructions on its use, including any such visual or written 11560 instructions posted on or adjacent to the device; 11561 2. The employee or agent was not an employee or agent who 11562 would have been reasonably expected to use the device; or 11563 3. The period of time elapsing between the engagement of 11564 the person as an employee or agent and the occurrence of the 11565 harm, or between the acquisition of the device and the 11566 occurrence of the harm in any case in which the device was 11567 acquired after engagement of the employee or agent, was not a 11568 reasonably sufficient period in which to provide the training. 11569 (6) An insurer may not require an acquirer of an automated 11570 external defibrillator device which is a community association 11571 organized under chapter 617, chapter 718,chapter 719, chapter11572720,chapter 721, or chapter 723 to purchase medical malpractice 11573 liability coverage as a condition of issuing any other coverage 11574 carried by the association, and an insurer may not exclude 11575 damages resulting from the use of an automated external 11576 defibrillator device from coverage under a general liability 11577 policy issued to an association. 11578 Section 144. Subsection (5) of section 849.085, Florida 11579 Statutes, is amended to read: 11580 849.085 Certain penny-ante games not crimes; restrictions.— 11581 (5) The conduct of any penny-ante game within the common 11582 elements or common area of a common interest community 11583condominium, cooperative, residential subdivision, or mobile11584home parkor the conduct of any penny-ante game within the 11585 dwelling of an eligible organization as defined in subsection 11586 (2) or within a publicly owned community center owned by a 11587 municipality or county creates no civil liability for damages 11588 arising from the penny-ante game on the part of a common 11589 interest communitycondominiumassociation, cooperative11590association, a homeowners’ associationas defined in s. 718.103 11591s. 720.301, mobile home owners’ association, dwelling owner, or 11592 municipality or county or on the part of a unit owner who was 11593 not a participant in the game. 11594 Section 145. Subsection (4) and paragraph (e) of subsection 11595 (11) of section 849.0931, Florida Statutes, are amended to read: 11596 849.0931 Bingo authorized; conditions for conduct; 11597 permitted uses of proceeds; limitations.— 11598 (4) The right of a condominium association,acooperative 11599 association,ahomeowners’ associationas defined in s. 720.301, 11600amobile home owners’ association,agroup of residents of a 11601 mobile home park as defined in chapter 723, oragroup of 11602 residents of a mobile home park or recreational vehicle park as 11603 defined in chapter 513 to conduct bingo is conditioned upon the 11604 return of the net proceeds from such games to players in the 11605 form of prizes after having deducted the actual business 11606 expenses for such games for articles designed for and essential 11607 to the operation, conduct, and playing of bingo. Any net 11608 proceeds remaining after paying prizes may be donated by the 11609 association to a charitable, nonprofit, or veterans’ 11610 organization which is exempt from federal income tax under the 11611 provisions of s. 501(c) of the Internal Revenue Code to be used 11612 in such recipient organization’s charitable, civic, community, 11613 benevolent, religious, or scholastic works or similar activities 11614 or, in the alternative, such remaining proceeds shall be used as 11615 specified in subsection (3). 11616 (11) Bingo games or instant bingo may be held only on the 11617 following premises: 11618 (e) With respect to bingo games conducted by a common 11619 interest communitycondominiumassociation,acooperative 11620 association,ahomeowners’ associationas defined in s. 720.301, 11621amobile home owners’ association,agroup of residents of a 11622 mobile home park as defined in chapter 723, oragroup of 11623 residents of a mobile home park or recreational vehicle park as 11624 defined in chapter 513, property owned by the association, 11625 property owned by the residents of the mobile home park or 11626 recreational vehicle park, or property which is a common area 11627 located within the condominium, mobile home park, or 11628 recreational vehicle park. 11629 Section 146. This act shall take effect July 1, 2016.