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F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
A bill to be entitled 1
An act relating to homeowners' associations; amending 2
s. 720.301, F.S.; revising definitions; amending s. 3
720.302, F.S.; revising the purpose and scope of ch. 4
720, F.S.; providing legislative findings; requiring 5
the Office of the Condominium Ombudsman, upo n 6
petition, to appoint a specified employee or attorney 7
to monitor the homeowners' association election of 8
directors; requiring that all costs for such 9
monitoring be borne by the association; requiring the 10
division to adopt rules and procedures; providing 11
applicability; creating s. 720.3025, F.S.; providing 12
certain powers and authority to the division and local 13
law enforcement agencies; amending s. 720.303, F.S.; 14
prohibiting the suspension of a parcel owner's or 15
member's voting rights when voting on the rec all of a 16
board member; providing that any specified prior 17
suspensions have no effect for any recall; requiring a 18
recall agreement to be served on an association by 19
registered mail, rather than by certified mail or by 20
personal service; removing the requirem ent that a 21
board perform certain actions to either certify or not 22
certify the written ballots or written agreements to 23
recall a director of a board; providing construction; 24
requiring a board to duly notice and hold a meeting of 25
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the board within a specified timeframe after receipt 26
of a recall agreement; providing that board members 27
are recalled effective immediately upon the conclusion 28
of a board meeting, provided the recall is facially 29
valid; specifying the timeframe in which a recalled 30
board member must re turn to the board specified 31
property belonging to the association; providing that 32
the board may reject a parcel owner's recall agreement 33
under certain circumstances; providing a rebuttable 34
presumption that a parcel owner executing the recall 35
agreement is the designated voter for the parcel; 36
prohibiting an association from enforcing a voting 37
certificate requirement under certain circumstances; 38
removing the provision that board members may be 39
recalled and removed by a vote taken at a meeting; 40
removing the provision that a special meeting may be 41
convened to recall a director or directors of the 42
board if called by a specified percentage of the 43
voting interests; removing the prohibition against 44
electronic transmission being used as a method of 45
giving notice of such a meeting; removing the 46
requirement that a board file an action with a court 47
or file with the Department of Business and 48
Professional Regulation a petition for binding 49
arbitration within a specified timeframe if the board 50
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does not certify the written ag reement or written 51
ballots to recall a director; removing the provision 52
that board members who voted at a meeting or who 53
executed an agreement in writing constitute one party 54
under the petition for arbitration or court action; 55
removing the provision that a recall is effective upon 56
the final order of the court or the mailing of the 57
final order of arbitration to the association; 58
requiring that recalled board members turn over 59
specified property of the association to the board 60
within a specified timeframe; rev ising the timeframe 61
in which such petition or action must be filed; 62
requiring that the association be named as the 63
respondent in such petition or action; providing that 64
a petition or action filed by a board member who has 65
been recalled may challenge the fa cial validity of the 66
recall agreement or the substantial compliance with 67
the procedural requirements for a recall; requiring 68
that a board member be reinstated and a recall be 69
deemed null and void if an arbitrator or a court 70
determines that a recall was inv alid; providing that a 71
prevailing party is entitled to recover reasonable 72
attorney fees and costs if certain findings are made; 73
amending s. 720.306, F.S.; removing the requirement 74
that secret ballots cast by members who are not in 75
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attendance at a meeting b e mailed or delivered to the 76
association in a specified manner; removing the 77
requirement that a valid ballot be cast once confirmed 78
valid; removing the requirement that a ballot for a 79
lot that has more than one ballot submitted be 80
disqualified; removing th e provision that any ballot 81
received after the closing of the balloting may not be 82
considered; removing the provision that a member may 83
nominate himself or herself as a candidate for the 84
board at a meeting where the election is held, 85
provided certain condi tions are met; requiring that 86
board members be elected by written ballot or voting 87
machine; prohibiting the use of proxies in electing 88
the board in general elections or in elections to fill 89
vacancies; requiring the association to mail, deliver, 90
or electronically transmit, by separate association 91
mailing or included in another association mailing, 92
delivery, or electronic transmission, to each member 93
entitled to vote a first notice of the date of the 94
election a specified timeframe before the election; 95
requiring a member intending to be a candidate for the 96
board to give written notice of his or her intent a 97
specified timeframe before the election; requiring the 98
association to send a second notice of the election, 99
with the written notice of the annual meeting an d 100
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agenda, to all members entitled to vote, together with 101
a ballot that lists all candidates; requiring that an 102
information sheet be sent in the second notice at the 103
request of a candidate; providing requirements for 104
such information sheet; requiring that t he candidate 105
furnish the information sheet to the association 106
within a specified timeframe; requiring the 107
association to bear the costs of mailing, delivering, 108
or electronically transmitting the information sheet; 109
providing that the association is not liab le for the 110
content of the information sheet; authorizing the 111
association to print the information sheet on both 112
sides of the paper; requiring that elections be 113
decided by a plurality of ballots cast; providing that 114
there are no quorum requirements; providi ng an 115
exception; prohibiting a member from authorizing any 116
other person to cast his or her ballot; providing that 117
any improperly cast ballots are invalid; providing 118
penalties; authorizing a member who requires 119
assistance to cast a ballot to seek such assis tance; 120
requiring the election to occur on the date of the 121
annual meeting; providing that an election is not 122
required unless more candidates file notices of intent 123
to run or are nominated than there are vacancies on 124
the board; providing that such candidates become board 125
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members upon the adjournment of the annual meeting 126
under certain circumstances; providing applicability; 127
requiring that a candidate for board membership be 128
eligible at the time of the mailing, delivery, or 129
electronic transmission of the candi date's notice of 130
intent to be a candidate; prohibiting co -owners of a 131
parcel from serving together; providing exceptions; 132
removing the prohibition against write -in nominations 133
being permitted under certain circumstances and that 134
qualified candidates seekin g nomination must commence 135
their service on the board of directors, regardless of 136
whether a quorum is attained at the annual meeting; 137
removing the requirement that boards of directors be 138
elected by a plurality of votes unless otherwise 139
provided by the gove rning documents; removing the 140
provision that any challenge to the election process 141
be commenced within a specified timeframe after the 142
election results are announced; providing that a 143
person who is delinquent in the payment of any 144
assessments is not eligib le to be a candidate; 145
providing that a director or an officer is delinquent 146
if payment is not made by a specified due date 147
identified in the declaration, bylaws, or articles of 148
incorporation; providing that a payment is delinquent 149
on the first day of the a ssessment period if no 150
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specified due date is in the declaration, bylaws, or 151
articles of incorporation; removing the definition of 152
the term "any fee, fine, or other monetary 153
obligation"; providing that the terms of all board 154
members expire at the annual mee ting and that such 155
board members may stand for reelection unless 156
prohibited by the association's declaration, bylaws, 157
or articles of incorporation, if certain conditions 158
are met; amending s. 720.3086, F.S.; providing 159
requirements for financial reporting by a private 160
amenities owner; providing applicability; amending s. 161
720.311, F.S.; providing that a certain action filed 162
be tried without a jury; providing that the parties 163
are entitled to an immediate hearing; authorizing the 164
court to limit the time for taki ng testimony; 165
authorizing the party filing an action to request a 166
temporary injunction for a certain purpose; 167
authorizing a party to remove an action for 168
arbitration and seek a trial de novo in circuit court; 169
removing the requirement that the Department of 170
Business and Professional Regulation adopt rules; 171
requiring that an association be ordered, by judgment 172
or decree, to pay a prevailing parcel owner's 173
reasonable attorney fees and costs; providing that 174
compensation or fees of an attorney may be included in 175
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the judgment or decree rendered in such action or in a 176
separate judgment or decree; prohibiting any other 177
recovery of attorney fees or costs, with an exception; 178
amending s. 720.401, F.S.; requiring prospective 179
purchasers of a parcel subject to association 180
membership to be provided with certain documents, in 181
addition to the disclosure summary, before executing a 182
contract; authorizing prospective purchasers to cancel 183
their contract within a specified timeframe under 184
certain circumstances; specifying that the 3-day 185
cancellation period does not include Saturdays, 186
Sundays, and legal holidays; reenacting ss. 187
720.3033(4)(b) and 720.405(6), F.S., relating to 188
officers and directors and organizing committee parcel 189
and parcel owner approval, respectively, to 190
incorporate the amendment made to s. 720.306, F.S., in 191
references thereto; creating part IV of ch. 720, F.S., 192
entitled "Recreational Covenants"; creating s. 193
720.408, F.S.; providing definitions; creating s. 194
720.409, F.S.; providing legislative findings; 195
providing the scope and applicability of the part; 196
creating s. 720.412, F.S.; providing requirements for 197
recreational covenants recorded on or after a 198
specified date; providing requirements for 199
recreational covenants recorded before a specified 200
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date; providing the ma ximum annual increase of amenity 201
expenses for certain recreational covenants; 202
authorizing a private amenities owner to increase 203
amenity expenses under certain conditions; providing 204
that a homeowners' association is not responsible for 205
collecting or remitti ng amenity dues; prohibiting 206
certain expenses and costs from being included as 207
amenity expenses; providing that a parcel owner or the 208
tenant of a parcel owner retains certain rights even 209
if a recreational covenant is terminated or the 210
private amenities own er suspends the use of the 211
privately-owned recreational amenities; specifying 212
that a recreational covenant is not a governing 213
document of a homeowners' association; providing 214
legislative intent; providing construction; creating 215
s. 720.413, F.S.; requiring each contract entered into 216
on or after a date certain for the sale of a 217
residential parcel governed by a homeowners' 218
association to include a specified disclosure summary; 219
requiring a developer or parcel owner selling the 220
parcel to provide such disclosure summary to a 221
prospective purchaser; providing that a contract or 222
agreement for sale of a parcel is voidable under 223
certain circumstances; providing the method in which 224
such contract or agreement is voidable; providing an 225
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effective date. 226
227
Be It Enacted by the Legislature of the State of Florida: 228
229
Section 1. Subsections (1), (8), and (10) of section 230
720.301, Florida Statutes, are amended to read: 231
720.301 Definitions. —As used in this chapter, the term: 232
(1) "Assessment" or "amenity fee" means a sum or sums of 233
money payable to the association , to the developer or other 234
owner of common areas, or to recreational facilities and other 235
properties serving the parcels by the owners of one or more 236
parcels as authorized in the governing documents, which if no t 237
paid by the owner of a parcel, can result in a lien against the 238
parcel by the association. 239
(8)(a) "Governing documents" means both of the following : 240
1.(a) Subject to paragraph (b), the recorded declaration 241
of covenants for a community and all duly ad opted and recorded 242
amendments, supplements, and recorded exhibits thereto .; and 243
2.(b) The articles of incorporation and bylaws of the 244
homeowners' association and any duly adopted amendments thereto. 245
(b) Consistent with s. 720.302(3)(b), recreational 246
covenants relating to privately -owned recreational amenities as 247
set forth in part IV of this chapter may not be considered 248
governing documents of an association, even if such recreational 249
covenants are attached as exhibits to a declaration of covenants 250
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for a community. This paragraph is remedial in nature and 251
intended to clarify existing law. 252
(10) "Member" means a member of an association, and may 253
include, but is not limited to, a parcel owner or an association 254
representing parcel owners or a combination th ereof, and 255
includes any person or entity obligated by the governing 256
documents to pay an assessment to the association or amenity 257
fee. 258
Section 2. Subsections (1) and (2) and paragraph (b) of 259
subsection (3) of section 720.302, Florida Statutes, are amend ed 260
to read: 261
720.302 Purposes, scope, and application. — 262
(1)(a) This chapter defines the property rights of 263
individually owned and shared real property in a manner that is 264
intended to protect and preserve the private property rights of 265
the individual owners and the public policy of preserving 266
environmental protections and public safety. This chapter 267
creates standards for the preservation of property, including, 268
but not limited to, the preservation of the taxable value of the 269
property. This chapter is inte nded to create transparency of 270
management of the property and the transferability of ownership 271
interests in the property. 272
(b) As a matter of public policy, any provision of a 273
homeowners' association's declaration, as it is amended from 274
time to time, that unreasonably impairs or restricts the 275
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transferability of real property owned individually, impairs the 276
taxable value of the property, facilitates the creation of 277
derelict properties at the end of the useful life of 278
improvements to the property, or jeopard izes the safety and 279
welfare of the occupants of the property are inconsistent with 280
this chapter and deemed void as a matter of public policy. The 281
declaration must require that the provisions of chapter 720 as 282
it exists on the date of recording and as amend ed from time to 283
time be adopted and included in the declaration. The purposes of 284
this chapter are to give statutory recognition to corporations 285
not for profit that operate residential communities in this 286
state, to provide procedures for operating homeowner s' 287
associations, and to protect the rights of association members 288
without unduly impairing the ability of such associations to 289
perform their functions. 290
(2)(a) The Legislature recognizes that it is not in the 291
best interest of homeowners' associations or the individual 292
association members thereof to create or impose a bureau or 293
other agency of state government to regulate the affairs of 294
homeowners' associations. However, in accordance with s. 295
720.311, the Legislature finds that homeowners' associations and 296
their individual members will benefit from an expedited 297
alternative process for resolution of election and recall 298
disputes and presuit mediation of other dispu tes involving 299
covenant enforcement and authorizes the department to hear, 300
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administer, and determine these disputes as more fully set forth 301
in this chapter. Further, the Legislature recognizes that 302
certain contract rights have been created for the benefit o f 303
homeowners' associations and members thereof before the 304
effective date of this act and that ss. 720.301 -720.407 are not 305
intended to impair such contract rights, including, but not 306
limited to, the rights of the developer to complete the 307
community as initially contemplated. 308
(b)1. Further, the Legislature finds that homeowners' 309
associations and their individual members will benefit from 310
oversight of the election of directors, and the Legislature 311
authorizes the Office of the Condominium Ombudsman to appoint an 312
election monitor to attend the annual meeting of the members and 313
to conduct the election of directors. 314
2. Upon receipt of a petition of 10 percent of the total 315
voting interests in the homeowners' association or eight 316
members, whichever is greater, th e ombudsman shall appoint a 317
division employee, a person specializing in election monitoring, 318
or an attorney licensed to practice in this state as the 319
election monitor. All costs associated with the election 320
monitoring process must be borne by the associati on. The 321
division shall adopt rules establishing procedures for the 322
appointment of such monitors, including the scope and extent of 323
the monitors' role in the election process. This subparagraph 324
does not apply to any election conducted in accordance with the 325
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bylaws of the association. 326
(3) This chapter does not apply to: 327
(b) The commercial or industrial parcels or privately-328
owned recreational amenities in a community that contains both 329
residential parcels and parcels intended for commercial or 330
industrial use. However, privately-owned recreational amenities 331
are subject to and governed by s. 720.3086(2) and part IV of 332
this chapter. 333
Section 3. Section 720.3025, Florida Statutes, is created 334
to read: 335
720.3025 Regulation. —Local law enforcement agencies have 336
the authority to audit, inspect, and investigate homeowners' 337
associations under this chapter. 338
Section 4. Paragraphs (e) through (l) of subsection (10) 339
of section 720.303, Florida Statutes, are redesignated as 340
paragraphs (d) through (k), respectively, present paragraphs (a) 341
through (d), (f), (g), (j), (k), and (l) of subsection (10) are 342
amended, and paragraph (b) of subsection (4) of that section is 343
republished to read: 344
720.303 Association powers and duties; meetings of board; 345
official records; budget s; financial reporting; association 346
funds; recalls.— 347
(4) OFFICIAL RECORDS. — 348
(b)1. By January 1, 2025, an association that has 100 or 349
more parcels shall post the following documents on its website 350
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or make available such documents through an application that can 351
be downloaded on a mobile device: 352
a. The articles of incorporation of the association and 353
each amendment thereto. 354
b. The recorded bylaws of the association and each 355
amendment thereto. 356
c. The declaration of covenants and a copy of each 357
amendment thereto. 358
d. The current rules of the association. 359
e. A list of all current executory contracts or documents 360
to which the association is a party or under which the 361
association or the parcel owners have an obligation or 362
responsibility and, after bidd ing for the related materials, 363
equipment, or services has closed, a list of bids received by 364
the association within the past year. 365
f. The annual budget required by subsection (6) and any 366
proposed budget to be considered at the annual meeting. 367
g. The financial report required by subsection (7) and any 368
monthly income or expense statement to be considered at a 369
meeting. 370
h. The association's current insurance policies. 371
i. The certification of each director as required by s. 372
720.3033(1)(a). 373
j. All contracts or transactions between the association 374
and any director, officer, corporation, firm, or association 375
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that is not an affiliated homeowners' association or any other 376
entity in which a director of an association is also a director 377
or an officer and has a financial interest. 378
k. Any contract or document regarding a conflict of 379
interest or possible conflict of interest as provided in ss. 380
468.436(2)(b)6. and 720.3033(2). 381
l. Notice of any scheduled meeting of members and the 382
agenda for the meeting, as requ ired by s. 720.306, at least 14 383
days before such meeting. The notice must be posted in plain 384
view on the homepage of the website or application, or on a 385
separate subpage of the website or application labeled "Notices" 386
which is conspicuously visible and lin ked from the homepage. The 387
association shall also post on its website or application any 388
document to be considered and voted on by the members during the 389
meeting or any document listed on the meeting agenda at least 7 390
days before the meeting at which such document or information 391
within the document will be considered. 392
m. Notice of any board meeting, the agenda, and any other 393
document required for such meeting as required by subsection 394
(3), which must be posted on the website or application no later 395
than the date required for notice under subsection (3). 396
2. The association's website or application must be 397
accessible through the Internet and must contain a subpage, web 398
portal, or other protected electronic location that is 399
inaccessible to the general publi c and accessible only to parcel 400
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owners and employees of the association. 401
3. Upon written request by a parcel owner, the association 402
must provide the parcel owner with a username and password and 403
access to the protected sections of the association's websi te or 404
application which contains the official documents of the 405
association. 406
4. The association shall ensure that the information and 407
records described in paragraph (5)(g), which are not allowed to 408
be accessible to parcel owners, are not posted on the 409
association's website or application. If protected information 410
or information restricted from being accessible to parcel owners 411
is included in documents that are required to be posted on the 412
association's website or application, the association must 413
ensure the information is redacted before posting the documents. 414
Notwithstanding the foregoing, the association or its authorized 415
agent is not liable for disclosing information that is protected 416
or restricted under paragraph (5)(g) unless such disclosure was 417
made with a knowing or intentional disregard of the protected or 418
restricted nature of such information. 419
(10) RECALL OF DIRECTORS. — 420
(a)1. Regardless of any provision to the contrary 421
contained in the governing documents, subject to the provisions 422
of s. 720.307 regarding transition of association control, any 423
member of the board of directors may be recalled and removed 424
from office with or without cause by a majority of the total 425
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voting interests. The voting rights of a parcel owner or member 426
may not be suspended when voting on the recall of a board 427
director, and any prior suspension of voting rights pursuant to 428
s. 720.305(4) shall have no effect on a recall vote. 429
2. When the governing documents, including the 430
declaration, articles of incorporation, or bylaws, provide that 431
only a specific class of members is entitled to elect a board 432
director or directors, only that class of members may vote to 433
recall those board directors so elected. 434
(b)1. Board directors may be recalled by an agreement in 435
writing or by written ballot without a membership meeting. The 436
recall agreement in writing or the written ballots , or a copy 437
thereof, must shall be served on the association by registered 438
certified mail or by personal service in the manner authorized 439
by chapter 48 and the Florida Rules of Civil Procedure. 440
2. The board shall duly notice and hold a meeting of the 441
board within 5 full business days after receipt of the agreement 442
in writing or written ballots. At the meeting, the board shall 443
either certify the written ballots or written agreement to 444
recall a director or directors of the board, in which case such 445
director or directors shall be recalled effective immediately 446
and shall turn over to the board within 5 full business da ys any 447
and all records and property of the association in their 448
possession, or proceed as described in paragraph (d). 449
2. If 3. When it is determined by the department pursuant 450
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to binding arbitration proceedings or the court in an action 451
filed in a court of competent jurisdiction that an initial 452
recall effort was defective, written recall agreements or 453
written ballots used in the first recall effort and not found to 454
be defective may be reused in one subsequent recall effort. 455
However, in no event is a recall written agreement or written 456
ballot valid for more than 120 days after it has been signed by 457
the member. 458
3.4. Any rescission or revocation of a member's written 459
recall ballot or agreement must be in writing and , in order to 460
be effective, must be delivered to the association before the 461
association is served with the written recall agreements or 462
ballots. This subparagraph must be liberally construed to ensure 463
a parcel owner is not disenfranchised by an association in a 464
recall and to prevent an associatio n from failing to certify a 465
recall agreement on a technical omission playing no part in the 466
discharge of a parcel owner's voting rights. 467
4.5. The recall agreement in writing or ballot must shall 468
list at least as many possible replacement directors as the re 469
are directors subject to the recall, when at least a majority of 470
the board is sought to be recalled; the person executing the 471
recall instrument may vote for as many replacement candidates as 472
there are directors subject to the recall. 473
(c)1. The board shall duly notice and hold a meeting of 474
the board within 5 business days after receipt of the recall 475
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agreement. The board member or members are recalled effective 476
immediately upon the conclusion of the board meeting, provided 477
that the recall is facially val id. A recalled member must return 478
to the board all records and property of the association in his 479
or her possession within 10 business days after being recalled. 480
2. A parcel owner's recall agreement is facially invalid 481
and may be rejected by the board if : 482
a. The parcel owner failed to properly serve notice of the 483
recall agreement; 484
b. The recall agreement was executed by a person who was 485
not a parcel's record owner or designated voter; 486
c. The recall agreement was marked before the removal of a 487
board member; 488
d. The recall agreement does not contain any marking 489
indicating the selection by the parcel owner to either remove or 490
retain a board member; or 491
e. The recall agreement does not contain the signature of 492
the parcel owner or designated voter. 493
3. There is a rebuttable presumption that a parcel owner 494
executing the recall agreement is the designated voter for the 495
parcel. An association may not enforce a voting certificate 496
requirement if the association has not enforced such requirement 497
in all matters in the year immediately preceding service of the 498
recall agreement If the declaration, articles of incorporation, 499
or bylaws specifically provide, the members may also recall and 500
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remove a board director or directors by a vote taken at a 501
meeting. If so provided in the governing documents, a special 502
meeting of the members to recall a director or directors of the 503
board of administration may be called by 10 percent of the 504
voting interests giving notice of the meeting as required for a 505
meeting of members, and th e notice shall state the purpose of 506
the meeting. Electronic transmission may not be used as a method 507
of giving notice of a meeting called in whole or in part for 508
this purpose. 509
2. The board shall duly notice and hold a board meeting 510
within 5 full business days after the adjournment of the member 511
meeting to recall one or more directors. At the meeting, the 512
board shall certify the recall, in which case such member or 513
members shall be recalled effective immediately and shall turn 514
over to the board within 5 fu ll business days any and all 515
records and property of the association in their possession, or 516
shall proceed as set forth in paragraph (d). 517
(d) If the board determines not to certify the written 518
agreement or written ballots to recall a director or director s 519
of the board or does not certify the recall by a vote at a 520
meeting, the board shall, within 5 full business days after the 521
meeting, file an action with a court of competent jurisdiction 522
or file with the department a petition for binding arbitration 523
under the applicable procedures in ss. 718.112(2)(l) and 524
718.1255 and the rules adopted thereunder. For the purposes of 525
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this section, the members who voted at the meeting or who 526
executed the agreement in writing shall constitute one party 527
under the petition for arbitration or in a court action. If the 528
arbitrator or court certifies the recall as to any director or 529
directors of the board, the recall will be effective upon the 530
final order of the court or the mailing of the final order of 531
arbitration to the associat ion. The director or directors so 532
recalled shall deliver to the board any and all records of the 533
association in their possession within 5 full business days 534
after the effective date of the recall. 535
(d)(f) If the board fails to duly notice and hold a board 536
meeting within 5 full business days after service of a recall an 537
agreement in writing or within 5 full business days after the 538
adjournment of the member recall meeting , the recall is shall be 539
deemed effective and the board member or members directors so 540
recalled must shall immediately turn over to the board all 541
records and property of the association within 10 full business 542
days. 543
(e)(g) If the board fails to duly notice and hold the 544
required meeting or at the conclusion of the meeting the board 545
determines that the recall is facially invalid fails to file the 546
required petition or action , the parcel owner representative may 547
file a petition or a court action under s. 718.1255 or file an 548
action in a court of competent jurisdiction challenging the 549
board's failure to act or determination that the recall is 550
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invalid. The petition or court action must be filed within 30 60 551
days after the expiration of the applicable 5 -full-business-day 552
period. The review of a petition or court action under this 553
paragraph is limited to the sufficiency of service on the board 554
and the facial validity of the recall written agreement or 555
ballots filed. The association must be named as the respondent. 556
(f)(j) When the recall of more than one board member 557
director is sought, the recall written agreement must, ballot, 558
or vote at a meeting shall provide for a separate vote for each 559
board member director sought to be recalled. 560
(g)(k) A board member who has been recalled may file an 561
action with a court of competent jurisdiction or a petition 562
under ss. 718.112(2)(l) and 718.1255 and the rules adopted 563
challenging the validity of the recall. The petition or court 564
action must be filed within 45 60 days after the recall is 565
deemed certified. The association and the parcel owner 566
representative must shall be named as respondents. The petition 567
or the court action may challenge the facial validity of the 568
recall agreement or the substantial compliance with the 569
procedural requirements for the recall. If the arbitrator or the 570
court determines that the recall was invalid, the arbitrator or 571
the court must immediately reinstate the petitioning board 572
member and deem the recall null and void. A board member who 573
prevails is entitled to recover reasonable attorney fees and 574
costs from the respondents. The a rbitrator or the court may 575
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award reasonable attorney fees and costs to a respondent if they 576
prevail, provided the arbitrator or the court makes a finding 577
that the petitioner's claim is frivolous. 578
(h)(l) The division or a court of competent jurisdiction 579
may not accept for filing a recall petition or action, whether 580
filed under paragraph (e) or paragraph (g) (b), paragraph (c), 581
paragraph (g), or paragraph (k) and regardless of whether the 582
recall was certified, when there are 60 or fewer days until the 583
scheduled reelection of the board member sought to be recalled 584
or when 45 60 or fewer days have not elapsed since the election 585
of the board member sought to be recalled. 586
Section 5. Subsections (8) and (9) of section 720.306, 587
Florida Statutes, are amended, a nd paragraph (g) of subsection 588
(1) of that section is republished, to read: 589
720.306 Meetings of members; voting and election 590
procedures; amendments. — 591
(1) QUORUM; AMENDMENTS. — 592
(g) A notice required under this section must be mailed or 593
delivered to the address identified as the parcel owner's 594
mailing address in the official records of the association as 595
required under s. 720.303(4), or electronically transmitted in a 596
manner authorized by the association if the parcel owner has 597
consented, in writing, to receive notice by electronic 598
transmission. 599
(8) PROXY VOTING.—The members have the right, unless 600
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otherwise provided in this subsection or in the governing 601
documents, to vote in person or by proxy. 602
(a) To be valid, a proxy must be dated, must state the 603
date, time, and place of the meeting for which it was given, and 604
must be signed by the authorized person who executed the proxy. 605
A proxy is effective only for the specific meeting for which it 606
was originally given, as the meeting may lawfully be adjourned 607
and reconvened from time to time, and automatically expires 90 608
days after the date of the meeting for which it was originally 609
given. A proxy is revocable at any time at the pleasure of the 610
person who executes it. If the proxy form expressly so provides, 611
any proxy holder may appoint, in writing, a substitute to act in 612
his or her place. 613
(b) If the governing documents permit voting by secret 614
ballot by members who are not in attendance at a meeting of the 615
members for the election of directors, such ballots mus t be 616
placed in an inner envelope with no identifying markings and 617
mailed or delivered to the association in an outer envelope 618
bearing identifying information reflecting the name of the 619
member, the lot or parcel for which the vote is being cast, and 620
the signature of the lot or parcel owner casting that ballot. If 621
the eligibility of the member to vote is confirmed and no other 622
ballot has been submitted for that lot or parcel, the inner 623
envelope shall be removed from the outer envelope bearing the 624
identification information, placed with the ballots which were 625
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personally cast, and opened when the ballots are counted. If 626
more than one ballot is submitted for a lot or parcel, the 627
ballots for that lot or parcel shall be disqualified. Any vote 628
by ballot received aft er the closing of the balloting may not be 629
considered. 630
(9) ELECTIONS AND BOARD VACANCIES. — 631
(a) Elections of directors must be conducted in accordance 632
with the procedures set forth in this subsection the governing 633
documents of the association . Except as provided in paragraph 634
(b), all members of the association are eligible to serve on the 635
board of directors, and a member may nominate himself or herself 636
as a candidate for the board at a meeting where the election is 637
to be held; provided, however, that if the election process 638
allows candidates to be nominated in advance of the meeting, the 639
association is not required to allow nominations at the meeting . 640
An election is not required unless more candidates are nominated 641
than vacancies exist. 642
1. The members of the board must be elected by written 643
ballot or voting machine. Proxies may not be used in electing 644
the board in general elections or in elections to fill vacancies 645
caused by recall, resignation, or otherwise. 646
2. At least 60 days before a scheduled elec tion, the 647
association must mail, deliver, or electronically transmit, by 648
separate association mailing or included in another association 649
mailing, delivery, or electronic transmission, including 650
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regularly published newsletters, to each member entitled to vo te 651
a first notice of the date of the election. 652
3. A member intending to be a candidate for the board must 653
give written notice of his or her intent to be a candidate to 654
the association at least 40 days before the scheduled election. 655
4. Together with the written notice of the annual meeting 656
and agenda, the association must mail, deliver, or 657
electronically transmit a second notice of the election to all 658
members entitled to vote, together with a ballot that lists all 659
candidates. 660
5. Upon the request of a c andidate, an information sheet 661
must also be made available for the mailed, delivered, or 662
electronically transmitted second notice of the election. Such 663
information sheet may not be larger than 8 1/2 by 11 inches. The 664
candidate must furnish the information sheet to the association 665
no later than 35 days before the election. The association shall 666
bear the costs of mailing, delivering, or electronically 667
transmitting the information sheet. The association is not 668
liable for the content of the information sheet. I n order to 669
reduce costs, the association may print or duplicate the 670
information sheets on both sides of the paper. 671
6. Elections must be decided by a plurality of ballots 672
cast. There are no quorum requirements; however, at least 20 673
percent of the eligible voters must cast a ballot in order to 674
have a valid election. A member may not authorize any other 675
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person to cast his or her ballot, and any ballot improperly cast 676
is deemed invalid. A member who violates this subparagraph may 677
be fined by the association u nder s. 720.305. 678
7. A member who requires assistance in casting a ballot 679
may seek such assistance as prescribed under s. 101.051. 680
8. The election must occur on the date of the annual 681
meeting. 682
9. Notwithstanding this paragraph, an election is not 683
required unless more candidates file notices of intent to run or 684
are nominated than there are vacancies on the board. If the 685
number of board members whose terms expire at the annual meeting 686
equals or exceeds the number of candidates, the candidates 687
become board members effective upon the adjournment of the 688
annual meeting. 689
10. This paragraph applies to all elections for directors 690
where the process for the election is scheduled to commence on 691
or after October 1, 2025. 692
(b) A member desiring to be a candidate f or board 693
membership must be eligible to be a candidate to serve on the 694
board at the time of the mailing, delivery, or electronic 695
transmission of a notice of intent to be a candidate. Co -owners 696
of a parcel may not serve together as members of the board 697
unless they own more than one parcel, or unless there are not 698
enough eligible candidates to fill the vacancies on the board at 699
the time of the vacancy If an election is not required because 700
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there are either an equal number or fewer qualified candidates 701
than vacancies exist, and if nominations from the floor are not 702
required pursuant to this section or the bylaws, write -in 703
nominations are not permitted and such qualified candidates 704
shall commence service on the board of directors, regardless of 705
whether a quorum is attained at the annual meeting. Except as 706
otherwise provided in the governing documents, boards of 707
directors must be elected by a plurality of the votes cast by 708
eligible voters. Any challenge to the election process must be 709
commenced within 60 days afte r the election results are 710
announced. 711
(b) A person who is delinquent in the payment of any 712
assessment due to the association is not eligible to be a 713
candidate for board membership any fee, fine, or other monetary 714
obligation to the association on the day that he or she could 715
last nominate himself or herself or be nominated for the board 716
may not seek election to the board , and his or her name may 717
shall not be listed on the ballot. A person serving as a board 718
member who becomes more than 90 days delinquent i n the payment 719
of any assessment due to the association is fee, fine, or other 720
monetary obligation to the association shall be deemed to have 721
abandoned his or her seat on the board, creating a vacancy on 722
the board to be filled according to law. For purposes of this 723
paragraph, a person is delinquent if a payment is not made by 724
the due date as specifically identified by the declaration, 725
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bylaws, or articles of incorporation. If a due date is not 726
specifically identified by the declaration, bylaws, or articles 727
of incorporation, the due date is the first day of the 728
assessment period the term "any fee, fine, or other monetary 729
obligation" means any delinquency to the association with 730
respect to any parcel . A person who has been convicted of any 731
felony in this state o r in a United States District or 732
Territorial Court, or has been convicted of any offense in 733
another jurisdiction which would be considered a felony if 734
committed in this state, may not seek election to the board and 735
is not eligible for board membership unle ss such felon's civil 736
rights have been restored for at least 5 years as of the date on 737
which such person seeks election to the board. The validity of 738
any action by the board is not affected if it is later 739
determined that a person was ineligible to seek ele ction to the 740
board or that a member of the board is ineligible for board 741
membership. 742
(c) Any election dispute between a member and an 743
association must be submitted to binding arbitration with the 744
division or filed with a court of competent jurisdiction. Such 745
proceedings that are submitted to binding arbitration with the 746
division must be conducted in the manner provided by s. 718.1255 747
and the procedural rules adopted by the division. 748
(d) Unless otherwise provided in the bylaws, any vacancy 749
occurring on the board before the expiration of a term may be 750
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filled by an affirmative vote of the majority of the remaining 751
directors, even if the remaining directors constitute less than 752
a quorum, or by the sole remaining director. In the alternative, 753
a board may hold an election to fill the vacancy, in which case 754
the election procedures must conform to the requirements of the 755
governing documents. Unless otherwise provided in the bylaws, a 756
board member appointed or elected under this section is 757
appointed for the unexpi red term of the seat being filled. 758
Filling vacancies created by recall is governed by s. 759
720.303(10) and rules adopted by the division. 760
(e) If the staggered term of a board member does not 761
expire until a later annual meeting, or if all the members' 762
terms would otherwise expire but there are no eligible 763
candidates, the terms of all board members must expire at the 764
annual meeting, and such members may stand for reelection unless 765
prohibited by the declaration, bylaws, or articles of 766
incorporation. 767
Section 6. Section 720.3086, Florida Statutes, is amended 768
to read: 769
720.3086 Financial report. — 770
(1) In a residential subdivision in which the owners of 771
lots or parcels must pay mandatory maintenance or use amenity 772
fees to the subdivision developer or to the o wners of the common 773
areas, recreational facilities, and other properties serving the 774
lots or parcels, the developer or owner of such areas, 775
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facilities, or properties shall make public, within 60 days 776
after following the end of each fiscal year, a complete 777
financial report of the actual, total receipts of mandatory 778
maintenance or use amenity fees received by it, and an itemized 779
listing of the expenditures made by it from such fees, for that 780
year. Such report must shall be made public by mailing it to 781
each lot or parcel owner in the subdivision, by publishing it in 782
a publication regularly distributed within the subdivision, or 783
by posting it in prominent locations in the subdivision. This 784
subsection section does not apply to: 785
(a) Amounts paid to homeowner ass ociations pursuant to 786
chapter 617, chapter 718, chapter 719, chapter 721, or chapter 787
723;, or to 788
(b) Amounts paid to local governmental entities, including 789
special districts; or 790
(c) Amounts paid to a private amenities owner. Amounts 791
paid to private amenities owners are governed by subsection (2) . 792
(2) In a residential subdivision in which a parcel owner 793
must pay amenity dues owed to a private amenities owner, the 794
private amenities owner shall make public, within 60 days after 795
the end of each fiscal year, a complete financial report of the 796
actual, total receipts of amenity dues received by the owner and 797
an itemized list of the expenditures the owner made with respect 798
to operational costs, expenses, or other amounts expended with 799
respect to the operati on of the privately-owned recreational 800
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amenities for that fiscal year. The private amenities owner must 801
make the financial report available for inspection upon written 802
request from a parcel owner within the applicable subdivision. 803
Such report must be made public to each parcel owner who is 804
subject to the payment of the amenity dues by publishing a 805
notice of the report's availability for inspection in a 806
publication regularly distributed within the subdivision or by 807
posting a notice in a prominent location in the subdivision, 808
including in a prominent location within the privately -owned 809
recreational amenities or other such properties. This subsection 810
does not apply to: 811
(a) Assessments or other amounts paid to homeowners' 812
associations pursuant to chapter 617, chapter 718, chapter 719, 813
chapter 721, or chapter 723; or 814
(b) Amounts paid to local governmental entities, including 815
special districts. 816
Section 7. Subsection (1) and paragraphs (a) and (c) of 817
subsection (2) of section 720.311, Florida Statutes, are 818
amended, and subsection (3) is added to that section, to read: 819
720.311 Dispute resolution. — 820
(1)(a) The Legislature finds that alternative dispute 821
resolution has made progress in reducing court dockets and 822
trials and in offering a more efficient, cost -effective option 823
to litigation. The filing of any petition for arbitration or the 824
serving of a demand for presuit mediation as provided for in 825
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this section shall toll the applicable statute of limitations. 826
Any recall dispute filed with the department under s . 827
720.303(10) must shall be conducted by the department in 828
accordance with the provisions of ss. 718.112(2)(l) and 718.1255 829
and the rules adopted by the division. In addition, the 830
department shall conduct binding arbitration of election 831
disputes between a member and an association in accordance with 832
s. 718.1255 and rules adopted by the division. Election disputes 833
and recall disputes are not eligible for presuit mediation; 834
these disputes must be arbitrated by the department or filed in 835
a court of competent j urisdiction. At the conclusion of an 836
arbitration proceeding, the department shall charge the parties 837
a fee in an amount adequate to cover all costs and expenses 838
incurred by the department in conducting the proceeding. 839
Initially, the petitioner shall remit a filing fee of at least 840
$200 to the department. The fees paid to the department shall 841
become a recoverable cost in the arbitration proceeding, and the 842
prevailing party in an arbitration proceeding shall recover its 843
reasonable costs and attorney fees in an amount found reasonable 844
by the arbitrator. 845
(b) Any action filed pursuant to this section must be 846
tried without a jury. The parties are entitled to an immediate 847
hearing. However, the court may limit the time for taking 848
testimony, considering the circumst ances of the matter and the 849
proximity of any succeeding election. Upon the division or the 850
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court rendering a judgment or decree against an association and 851
in favor of a parcel owner, the division or the court shall 852
award to the parcel owner reasonable atto rney fees and costs 853
incurred in the action. When so awarded, compensation or fees 854
and costs of the attorney may be included in the judgment or 855
decree rendered in the action or in a separate judgment or 856
decree. The party filing an action under this section may 857
request the issuance of a temporary injunction to stay any 858
upcoming election that may occur while the challenge is pending. 859
The department shall adopt rules to effectuate the purposes of 860
this section. 861
(2)(a) Disputes between an association and a parcel owner 862
regarding use of or changes to the parcel or the common areas 863
and other covenant enforcement disputes, disputes regarding 864
amendments to the association documents, disputes regarding 865
meetings of the board and committees appointed by the board, 866
membership meetings not including election meetings, and access 867
to the official records of the association shall be the subject 868
of a demand for presuit mediation served by an aggrieved party 869
before the dispute is filed in court. Presuit mediation 870
proceedings must be conducted in accordance with the applicable 871
Florida Rules of Civil Procedure, and these proceedings are 872
privileged and confidential to the same extent as court -ordered 873
mediation. Disputes subject to presuit mediation under this 874
section shall not include the collection of any assessment, 875
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fine, or other financial obligation, including attorney 876
attorney's fees and costs, claimed to be due or any action to 877
enforce a prior mediation settlement agreement be tween the 878
parties. Also, in any dispute subject to presuit mediation under 879
this section where emergency relief is required, a motion for 880
temporary injunctive relief may be filed with the court without 881
first complying with the presuit mediation requirements of this 882
section. After any issues regarding emergency or temporary 883
relief are resolved, the court may either refer the parties to a 884
mediation program administered by the courts or require 885
mediation under this section. An arbitrator or judge may not 886
consider any information or evidence arising from the presuit 887
mediation proceeding except in a proceeding to impose sanctions 888
for failure to attend a presuit mediation session or to enforce 889
a mediated settlement agreement. Persons who are not parties to 890
the dispute may not attend the presuit mediation conference 891
without the consent of all parties, except for counsel for the 892
parties and a corporate representative designated by the 893
association. When mediation is attended by a quorum of the 894
board, such mediation is not a board meeting for purposes of 895
notice and participation set forth in s. 720.303. An aggrieved 896
party shall serve on the responding party a written demand to 897
participate in presuit mediation in substantially the following 898
form: 899
900
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STATUTORY OFFER TO PARTI CIPATE 901
IN PRESUIT MEDIATION 902
903
The alleged aggrieved party, ................, hereby 904
demands that ................, as the responding 905
party, engage in mandatory presuit mediation in 906
connection with the following disputes, which by 907
statute are of a type that are subject to presuit 908
mediation: 909
910
(List specific nature of the dispute or disputes to be 911
mediated and the authority supporting a finding of a 912
violation as to each dispute.) 913
914
Pursuant to section 720.311, Florida Statutes, this 915
demand to resolve the dispute through presuit 916
mediation is required before a lawsuit can be filed 917
concerning the dispute. Pursuant to the statute, the 918
parties are required to engage in presuit mediation 919
with a neutral third -party mediator in order to 920
attempt to resolve this dispute wi thout court action, 921
and the aggrieved party demands that you likewise 922
agree to this process. If you fail to participate in 923
the mediation process, suit may be brought against you 924
without further warning. 925
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926
The process of mediation involves a supervised 927
negotiation process in which a trained, neutral third -928
party mediator meets with both parties and assists 929
them in exploring possible opportunities for resolving 930
part or all of the dispute. By agreeing to participate 931
in presuit mediation, you are not bound in any way to 932
change your position. Furthermore, the mediator has no 933
authority to make any decisions in this matter or to 934
determine who is right or wrong and merely acts as a 935
facilitator to ensure that each party understands the 936
position of the other party and t hat all options for 937
reasonable settlement are fully explored. 938
939
If an agreement is reached, it shall be reduced to 940
writing and becomes a binding and enforceable 941
commitment of the parties. A resolution of one or more 942
disputes in this fashion avoids the need to litigate 943
these issues in court. The failure to reach an 944
agreement, or the failure of a party to participate in 945
the process, results in the mediator declaring an 946
impasse in the mediation, after which the aggrieved 947
party may proceed to court on all outsta nding, 948
unsettled disputes. If you have failed or refused to 949
participate in the entire mediation process, you will 950
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not be entitled to recover attorney attorney's fees, 951
even if you prevail. 952
953
The aggrieved party has selected and hereby lists five 954
certified mediators who we believe to be neutral and 955
qualified to mediate the dispute. You have the right 956
to select any one of these mediators. The fact that 957
one party may be familiar with one or more of the 958
listed mediators does not mean that the mediator 959
cannot act as a neutral and impartial facilitator. Any 960
mediator who cannot act in this capacity is required 961
ethically to decline to accept engagement. The 962
mediators that we suggest, and their current hourly 963
rates, are as follows: 964
965
(List the names, addresses, telephon e numbers, and 966
hourly rates of the mediators. Other pertinent 967
information about the background of the mediators may 968
be included as an attachment.) 969
970
You may contact the offices of these mediators to 971
confirm that the listed mediators will be neutral and 972
will not show any favoritism toward either party. The 973
Florida Supreme Court can provide you a list of 974
certified mediators. 975
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976
Unless otherwise agreed by the parties, section 977
720.311(2)(b), Florida Statutes, requires that the 978
parties share the costs of presuit me diation equally, 979
including the fee charged by the mediator. An average 980
mediation may require three to four hours of the 981
mediator's time, including some preparation time, and 982
the parties would need to share equally the mediator's 983
fees as well as their own attorney attorney's fees if 984
they choose to employ an attorney in connection with 985
the mediation. However, use of an attorney is not 986
required and is at the option of each party. The 987
mediators may require the advance payment of some or 988
all of the anticipated f ees. The aggrieved party 989
hereby agrees to pay or prepay one -half of the 990
mediator's estimated fees and to forward this amount 991
or such other reasonable advance deposits as the 992
mediator requires for this purpose. Any funds 993
deposited will be returned to you if these are in 994
excess of your share of the fees incurred. 995
996
To begin your participation in presuit mediation to 997
try to resolve the dispute and avoid further legal 998
action, please sign below and clearly indicate which 999
mediator is acceptable to you. We will the n ask the 1000
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mediator to schedule a mutually convenient time and 1001
place for the mediation conference to be held. The 1002
mediation conference must be held within ninety (90) 1003
days of this date, unless extended by mutual written 1004
agreement. In the event that you fail to respond 1005
within 20 days from the date of this letter, or if you 1006
fail to agree to at least one of the mediators that we 1007
have suggested or to pay or prepay to the mediator 1008
one-half of the costs involved, the aggrieved party 1009
will be authorized to proceed w ith the filing of a 1010
lawsuit against you without further notice and may 1011
seek an award of attorney attorney's fees or costs 1012
incurred in attempting to obtain mediation. 1013
1014
Therefore, please give this matter your immediate 1015
attention. By law, your response must b e mailed by 1016
certified mail, return receipt requested, and by 1017
first-class mail to the address shown on this demand. 1018
1019
........................ 1020
........................ 1021
1022
RESPONDING PARTY: YOUR SIGNATURE INDICATES YOUR 1023
AGREEMENT TO THAT CHOICE. 1024
1025
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F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
AGREEMENT TO MEDIATE 1026
1027
The undersigned hereby agrees to participate in 1028
presuit mediation and agrees to attend a mediation 1029
conducted by the following mediator or mediators who 1030
are listed above as someone who would be acceptable to 1031
mediate this dispute: 1032
1033
(List acceptable mediator or mediators.) 1034
1035
I/we further agree to pay or prepay one -half of the 1036
mediator's fees and to forward such advance deposits 1037
as the mediator may require for this purpose. 1038
1039
........................ 1040
Signature of responding party #1 1041
1042
.................... .... 1043
Telephone contact information 1044
1045
........................ 1046
Signature and telephone contact information of 1047
responding party #2 (if applicable)(if property is 1048
owned by more than one person, all owners must sign) 1049
1050
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(c) If presuit mediation as described in paragraph (a) is 1051
not successful in resolving all issues between the parties, the 1052
parties may file the unresolved dispute in a court of competent 1053
jurisdiction or elect to enter into binding or nonbinding 1054
arbitration pursuant to the procedures set forth in s. 718.1255 1055
and rules adopted by the division, with the arbitration 1056
proceeding to be conducted by a department arbitrator or by a 1057
private arbitrator certified by the department. If all parties 1058
do not agree to arbitration proceedings following an 1059
unsuccessful presuit mediation, any party may file the dispute 1060
in court. A final order resulting from nonbinding arbitration is 1061
final and enforceable in the courts if a complaint for trial de 1062
novo is not filed in a court of competent jurisdiction within 30 1063
days after entry of the order. As to any issue or dispute that 1064
is not resolved at presuit mediation, and as to any issue that 1065
is settled at presuit mediation but is thereafter subject to an 1066
action seeking enforcement of the mediation settlement, the 1067
prevailing party in any subsequent arbitration or litigation 1068
proceeding shall be entitled to seek recovery of all costs and 1069
attorney attorney's fees incurred in the presuit mediation 1070
process. 1071
(3) Upon the mediator or the court rendering a judgment or 1072
decree against an association and in favor of a parcel owner, 1073
the mediator or the court shall award to the parcel owner 1074
reasonable attorney fees and costs incurred in the action. 1075
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Attorney fees or costs relating to an action for the recall of a 1076
director may only be awarded as provided in this subsection or 1077
as awarded as a sanction pursuant to s. 57.105. 1078
Section 8. Subsection (1) of section 720.401, Florida 1079
Statutes, is amended to read: 1080
720.401 Prospective purchasers subject to association 1081
membership requirement; disclosu re required; covenants; 1082
assessments; contract cancellation. — 1083
(1)(a) A prospective purchaser parcel owner in a community 1084
must be presented a disclosure summary before executing the 1085
contract for sale. The disclosure summary must be in a form 1086
substantially similar to the following form: 1087
DISCLOSURE SUMMARY 1088
FOR 1089
(NAME OF COMMUNITY) 1090
1. AS A PURCHASER OF PROPERTY IN THIS COMMUNITY, YOU WILL 1091
BE OBLIGATED TO BE A MEMBER OF A HOMEOWNERS' ASSOCIATION. 1092
2. THERE HAVE BEEN OR WILL BE RECORDED RESTRICTIVE 1093
COVENANTS GOVERNING THE USE AND OCCUPANCY OF PROPERTIES IN THIS 1094
COMMUNITY. 1095
3. YOU WILL BE OBLIGATED TO PAY ASSESSMENTS TO THE 1096
ASSOCIATION. ASSESSMENTS MAY BE SUBJECT TO PERIODIC CHANGE. IF 1097
APPLICABLE, THE CURRENT AMOUNT IS $.... PER ..... YOU WILL ALSO 1098
BE OBLIGATED TO PAY ANY SPECIAL ASSESSMENTS IMPOSED BY THE 1099
ASSOCIATION. SUCH SPECIAL ASSESSMENTS MAY BE SUBJECT TO CHANGE. 1100
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IF APPLICABLE, THE CURRENT AMOUNT IS $.... PER ..... 1101
4. YOU MAY BE OBLIGATED TO PAY SPECIAL ASSESSMENTS TO THE 1102
RESPECTIVE MUNICIPALITY, COUNTY , OR SPECIAL DISTRICT. ALL 1103
ASSESSMENTS ARE SUBJECT TO PERIODIC CHANGE. 1104
5. YOUR FAILURE TO PAY SPECIAL ASSESSMENTS OR ASSESSMENTS 1105
LEVIED BY A MANDATORY HOMEOWNERS' ASSOCIATION COULD RESULT IN A 1106
LIEN ON YOUR PROPERTY. 1107
6. THERE MAY BE AN OBLIGATION TO PAY RENT OR LAND USE FEES 1108
FOR RECREATIONAL OR OTHER COMMONLY USED FACILITIES AS AN 1109
OBLIGATION OF MEMBERSHIP IN THE HOMEOWNERS' ASSOCIATION. IF 1110
APPLICABLE, THE CURRENT AMOUNT IS $.... PER ..... 1111
7. THE DEVELOPER MAY HAVE THE RIGHT TO AMEND THE 1112
RESTRICTIVE COVENANTS WITHOUT THE APPROVAL OF THE ASSOCIATION 1113
MEMBERSHIP OR THE APPROVAL OF THE PARCEL OWNERS. 1114
8. THE STATEMENTS CONTAINED IN THIS DISCLOSURE FORM ARE 1115
ONLY SUMMARY IN NATURE, AND, AS A PROSPECTIVE PURCHASER, YOU 1116
SHOULD REFER TO THE COVENANTS AND THE ASS OCIATION GOVERNING 1117
DOCUMENTS BEFORE PURCHASING PROPERTY. 1118
9. YOU ACKNOWLEDGE THAT YOU ARE ENTITLED TO RECEIVE A 1119
CURRENT COPY OF THE ASSOCIATION'S BYLAWS, ARTICLES OF 1120
INCORPORATION, DECLARATION OF RESTRICTIONS, RULES AND 1121
REGULATIONS, NOTICES PERTAINING TO SPECIAL ASSESSMENTS, THE MOST 1122
RECENT FINANCIAL STATEMENTS, AND THE AGENDAS AND MINUTES FROM 1123
ALL ASSOCIATION BOARD MEETINGS THAT TOOK PLACE IN THE 12 MONTHS 1124
IMMEDIATELY PRECEDING THE EXECUTION OF THE CONTRACT FOR SALE 1125
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THESE DOCUMENTS ARE EITHER MATTERS OF P UBLIC RECORD AND CAN BE 1126
OBTAINED FROM THE RECORD OFFICE IN THE COUNTY WHERE THE PROPERTY 1127
IS LOCATED, OR ARE NOT RECORDED AND CAN BE OBTAINED FROM THE 1128
DEVELOPER. 1129
DATE: PURCHASER: 1130
PURCHASER: 1131
The disclosure summary must be supplied by the developer, or by 1132
the parcel owner if the sale is by an owner that is not the 1133
developer. Any contract or agreement for sale must shall refer 1134
to and incorporate the disclosure summary and shall include, in 1135
prominent language, a statement that the prospective purchaser 1136
potential buyer should not execute the contract or agreement 1137
until he or she has they have received and read the disclosure 1138
summary required by this section. 1139
(b) Each contract entered into for the sale of property 1140
governed by covenants subject to disclosure requi red by this 1141
section must contain in conspicuous type a clause that states: 1142
IF THE DISCLOSURE SUMMARY ; A CURRENT COPY OF THE ASSOCIATION'S 1143
BYLAWS, ARTICLES OF INCORPORATION, DECLARATION OF RESTRICTIONS, 1144
RULES AND REGULATIONS, NOTICES PERTAINING TO SPECIAL 1145
ASSESSMENTS, AND MOST RECENT FINANCIAL STATEMENTS; AND THE 1146
AGENDAS AND MINUTES FROM ALL ASSOCIATION BOARD MEETINGS THAT 1147
TOOK PLACE IN THE 12 MONTHS IMMEDIATELY PRECEDING THE EXECUTION 1148
OF THIS CONTRACT, AS REQUIRED BY SECTION 720.401, FLORIDA 1149
STATUTES, HAVE HAS NOT BEEN PROVIDED TO THE PROSPECTIVE 1150
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PURCHASER BEFORE EXECUTING THIS CONTRACT FOR SALE, THIS CONTRACT 1151
IS VOIDABLE BY THE PROSPECTIVE PURCHASER BUYER BY DELIVERING TO 1152
THE SELLER OR THE SELLER'S AGENT OR REPRESENTATIVE WRITTEN 1153
NOTICE OF THE PROSPECTIVE PURCHASER'S BUYER'S INTENTION TO 1154
CANCEL WITHIN 3 DAYS , EXCLUDING SATURDAYS, SUNDAYS, AND LEGAL 1155
HOLIDAYS, AFTER RECEIPT OF SUCH DOCUMENTS OR BEFORE THE 1156
DISCLOSURE SUMMARY OR PRIOR TO CLOSING, WHICHEVER OCCURS FIRST. 1157
ANY PURPORTED WAIVER OF THIS VOIDABILITY RIGHT HAS NO EFFECT. 1158
THE PROSPECTIVE PURCHASER'S BUYER'S RIGHT TO VOID THIS CONTRACT 1159
TERMINATES SHALL TERMINATE AT CLOSING. 1160
(c) If the disclosure summary ; a current copy of the 1161
association's bylaws, articles of incorporation, declaration of 1162
restrictions, rules and regulations, notices pertaining to 1163
special assessments, and most recent financial statements; and 1164
the agendas and minutes from all association board meetings that 1165
took place in the 12 months immediately preceding the execution 1166
of a contract are is not provided to a prospective purchaser 1167
before such the purchaser executes a contract for the sale of 1168
property governed by covenants that are subject to disclosure 1169
pursuant to this section, the prospective purchaser may void the 1170
contract by delivering t o the seller or the seller's agent or 1171
representative written notice canceling the contract within 3 1172
days, excluding Saturdays, Sundays, and legal holidays, after 1173
receipt of such documents or before the disclosure summary or 1174
prior to closing, whichever occu rs first. This right may not be 1175
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waived by the prospective purchaser but terminates at closing. 1176
Section 9. For the purpose of incorporating the amendments 1177
made by this act to section 720.306, Florida Statutes, in a 1178
reference thereto, paragraph (b) of su bsection (4) of section 1179
720.3033, Florida Statutes, is reenacted to read: 1180
720.3033 Officers and directors. — 1181
(4) 1182
(b) The board shall fill the vacancy as provided in s. 1183
720.306(9) until the end of the period of the suspension or the 1184
end of the director' s term of office, whichever occurs first. If 1185
such criminal charge is pending against the officer or director, 1186
he or she may not be appointed or elected to a position as an 1187
officer or a director of any association and may not have access 1188
to the official records of any association, except pursuant to a 1189
court order. However, if the charges are resolved without a 1190
finding of guilt or without acceptance of a plea of guilty or 1191
nolo contendere, the director or officer shall be reinstated for 1192
any remainder of his or her term of office. 1193
Section 10. For the purpose of incorporating the amendment 1194
made by this act to section 720.306, Florida Statutes, in a 1195
reference thereto, subsection (6) of section 720.405, Florida 1196
Statutes, is reenacted to read: 1197
720.405 Organizing committee; parcel owner approval. — 1198
(6) A majority of the affected parcel owners must agree in 1199
writing to the revived declaration of covenants and governing 1200
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documents of the association or approve the revived declaration 1201
and governing documents by a vo te at a meeting of the affected 1202
parcel owners noticed and conducted in the manner prescribed by 1203
s. 720.306. Proof of notice of the meeting to all affected 1204
owners of the meeting and the minutes of the meeting recording 1205
the votes of the property owners shall be certified by a court 1206
reporter or an attorney licensed to practice in the state. 1207
Section 11. Part IV of chapter 720, Florida Statutes, 1208
consisting of ss. 720.408 through 720.413, is created and 1209
entitled "Recreational Covenants." 1210
Section 12. Section 720.408, Florida Statutes, is created 1211
to read: 1212
720.408 Definitions. —As used in this part, the term: 1213
(1) "Amenity dues" means all amenity expenses and amenity 1214
fees, collectively, that are charged in accordance with a 1215
recreational covenant. Amenity du es are not homeowners' 1216
association assessments as defined in s. 720.301. 1217
(2) "Amenity expenses" means all costs, whether direct or 1218
indirect, of owning, operating, managing, maintaining, and 1219
insuring privately-owned recreational amenities that are made 1220
available to parcel owners pursuant to a recreational covenant. 1221
The term includes maintenance expenses; cleaning fees; trash 1222
collection expenses; utility charges; cable service charges; 1223
legal fees; management fees; reserve funding expenses; the cost 1224
of repairs, replacement, and refurbishments; payroll and payroll 1225
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costs; insurance; working capital; ad valorem or other taxes, 1226
excluding income taxes; and costs, expenses, levies, and charges 1227
of any nature that may be levied or imposed against, or in 1228
connection with, the privately-owned recreational amenities made 1229
available to parcel owners pursuant to a recreational covenant. 1230
Amenity expenses are not homeowners' association assessments as 1231
defined in s. 720.301. 1232
(3) "Amenity fees" means any amounts, other than ame nity 1233
expenses, that are levied against a parcel owner for membership 1234
to or use of privately -owned recreational amenities in 1235
accordance with a recreational covenant. Amenity fees may be 1236
comprised, in part, of profit or other components to be paid to 1237
a private amenities owner as set forth in a recreational 1238
covenant, which are not otherwise categorized as amenity 1239
expenses in this part. Amenity fees are not homeowners' 1240
association assessments as defined in s. 720.301. 1241
(4) "Private amenities owner" means the record title owner 1242
of privately-owned recreational amenities who is responsible for 1243
the operation and maintenance of the privately -owned 1244
recreational amenities and who may levy amenity dues pursuant to 1245
a recreational covenant. For purposes of this part, th e term 1246
does not include corporations not for profit pursuant to chapter 1247
617 or local governmental entities, including special districts. 1248
(5) "Privately-owned recreational amenities" means 1249
recreational facilities or amenities owned by a private 1250
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amenities owner which are intended for recreational use or 1251
leisure activities by a parcel owner through mandatory 1252
membership or use rights established pursuant to a recreational 1253
covenant. The term does not include common areas as defined in 1254
s. 720.301, any property or facilities owned by a corporation 1255
not for profit pursuant to chapter 617, or a local governmental 1256
entity, including a special district. 1257
(6) "Recreational covenant" means a recorded covenant, 1258
separate and distinct from a declaration of covenants for a 1259
homeowners' association, that sets forth the nature and 1260
requirements for membership, use, or purchase of privately -owned 1261
recreational amenities by parcel owners in one or more 1262
community. A recreational covenant must: 1263
(a) Be recorded in the public records of the county in 1264
which the property encumbered thereby is located. 1265
(b) Contain information regarding the amenity dues that 1266
may be levied against a parcel owner or other persons to be 1267
members or permitted to use privately -owned recreational 1268
amenities. The recreational covenant must also contain the 1269
remedies that the private amenities owner or other third party 1270
may have in connection with nonpayment of amenity dues. 1271
(c) Require mandatory membership or mandatory payment of 1272
amenity dues by some or all of t he parcel owners in a community. 1273
Section 13. Section 720.409, Florida Statutes, is created 1274
to read: 1275
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720.409 Legislative findings; purpose; applicability. — 1276
(1) The Legislature finds that recreational covenants are 1277
widely used throughout this state as a mechanism to provide 1278
enhanced recreational amenities to communities, but these 1279
covenants are largely unregulated. The Legislature also finds 1280
that there is a need to develop certain protections for parcel 1281
owners while encouraging the economic benefit o f the development 1282
and availability of privately -owned recreational amenities by 1283
providing the means for private amenities owners to operate such 1284
privately-owned recreational amenities pursuant to a 1285
recreational covenant. The Legislature declares that it is the 1286
public policy of this state that recreational covenants be 1287
governed by this part. 1288
(2) This part is intended to provide certain protections 1289
for parcel owners and give statutory recognition to the use of 1290
recreational covenants. 1291
(3) Parcels within a community may be subject to a 1292
recreational covenant. Recreational covenants and any privately -1293
owned recreational amenities governed by such covenants may only 1294
be governed by this part and s. 720.3086(2). 1295
(4) This part does not apply to recorded covenants , 1296
agreements, or other documents that are not recreational 1297
covenants. 1298
(5) This part applies to recreational covenants existing 1299
on or after July 1, 2025. 1300
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Section 14. Section 720.412, Florida Statutes, is created 1301
to read: 1302
720.412 Requirements for rec reational covenants. — 1303
(1) A recreational covenant recorded on or after July 1, 1304
2025, that requires mandatory membership in a club or imposes 1305
mandatory amenity dues on a parcel owner in a community governed 1306
by this chapter must specify all of the followin g: 1307
(a) The property or parcels within the community subject 1308
to mandatory membership in a club or subject to mandatory 1309
amenity dues. 1310
(b) The party responsible for owning, maintaining, and 1311
operating the privately -owned recreational amenities governed by 1312
the recreational covenant. 1313
(c)1. The manner or process by which amenity dues are 1314
apportioned and collected from the encumbered parcels or parcel 1315
owners and the party responsible for collecting the amenity 1316
dues. 1317
2. Except as provided in subsection (5), this section does 1318
not preclude additional components to be included in the amenity 1319
dues as long as such components and the description of such 1320
components are stated in the recreational covenant. 1321
(d) The amount of the amenity fees or, alternatively, if 1322
no specific dollar amount is set forth in the recreational 1323
covenant, the manner in which such amenity fees are calculated 1324
and increased. 1325
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(e) The amount by which amenity fees may be increased, 1326
which may be calculated as a percentage, a fixed dollar amount, 1327
or the consumer price index. 1328
(f) The rights and remedies that are available to enforce 1329
the payment of amenity dues. 1330
(g) Whether the collection rights to enforce the payment 1331
of amenity dues are subordinate to an association's right to 1332
collect assessments. 1333
(h) Whether the privately -owned recreational amenities are 1334
open to the public or may be used by other persons who are not 1335
members or parcel owners within a community. 1336
(i) The remedies available to a private amenities owner 1337
for the nonpayment of amen ity dues. 1338
(2) A recreational covenant recorded before July 1, 2025: 1339
(a) That requires mandatory membership in a club or 1340
imposes mandatory amenity dues on a parcel owner in a community 1341
governed by this chapter remains valid and effective as to its 1342
terms as long as such covenant includes the information required 1343
in paragraphs (1)(a) -(d). 1344
(b) That does not include the information required in 1345
paragraphs (1)(a)-(d) must be amended to include such 1346
information before July 1, 2026, to remain valid and effecti ve. 1347
(c) That does not specify the amount by which the amenity 1348
fees may be increased as required in paragraph (e) is considered 1349
to include a maximum annual increase of no more than the annual 1350
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increase for the current year in the Consumer Price Index for 1351
All Urban Consumers, U.S. City Average, All Items. 1352
(3) With respect to a recreational covenant recorded on or 1353
after July 1, 2025, and notwithstanding any provision to the 1354
contrary in the recreational covenant, a recreational covenant 1355
that does not specif y the amount by which amenity expenses may 1356
be increased is considered to include a maximum annual increase 1357
of no more than 25 percent of the amenity expenses from the 1358
preceding fiscal year. However, a private amenities owner may 1359
increase amenity expenses i n excess of such amount if necessary 1360
due to a natural disaster; act of God; increases in insurance 1361
costs, utility rates, supply costs, or labor rates; or any other 1362
circumstances outside of the reasonable control of the private 1363
amenities owner. 1364
(4) Notwithstanding any provision to the contrary in the 1365
recreational covenant, a homeowners' association does not have 1366
any obligation, duty, or responsibility to collect amenity dues 1367
or to remit amenity dues to the private amenities owner. A 1368
private amenities owner , or his or her management company or 1369
agent, other than the association, is solely responsible for the 1370
collection of amenity dues. 1371
(5) Amenity expenses may not include any of the following: 1372
(a) The initial cost of construction of the privately -1373
owned recreational amenities. 1374
(b) Any costs or fees associated with a loan acquired for 1375
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the construction or purchase of the privately -owned recreational 1376
amenities. 1377
(c) The cost of a debt service of the private amenities 1378
owner. 1379
(6) The termination of a recrea tional covenant or the 1380
right of a private amenities owner to suspend the use of the 1381
privately-owned recreational amenities may not: 1382
(a) Prohibit a parcel owner or tenant of a parcel owner 1383
from having vehicular and pedestrian ingress to and egress from 1384
the property or parcels subject to the recreational covenant; 1385
(b) Prohibit a parcel owner or tenant of a parcel owner 1386
from receiving utilities provided to the property or parcels 1387
subject to the recreational covenant by virtue of utility 1388
facilities or utility easements located within the privately -1389
owned recreational amenities; or 1390
(c) Prohibit a parcel owner or tenant of a parcel owner 1391
from having access to any mail delivery facilities serving the 1392
property or parcels subject to the recreational covenant whi ch 1393
may be located within the privately -owned recreational 1394
amenities. 1395
(7) A recreational covenant is not a governing document of 1396
a homeowners' association, even if such recreational covenant is 1397
attached as an exhibit to a declaration of covenants for a 1398
homeowners' association. This subsection is remedial in nature 1399
and intended to clarify existing law. 1400
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(8) It is the intent of the Legislature to respect the 1401
intent of the parties to a real property transaction that 1402
occurred before July 1, 2025, and the part ies' reliance on the 1403
covenants, conditions, restrictions, or other interests created 1404
by those transactions. However, this section does not revive or 1405
reinstate any right or interest that has been fully and finally 1406
adjudicated as invalid before July 1, 2025. 1407
Section 15. Section 720.413, Florida Statutes, is created 1408
to read: 1409
720.413 Disclosure of recreational covenants before the 1410
sale of residential parcels. — 1411
(1) Beginning July 1, 2025, each contract or agreement for 1412
the sale of a residential parcel th at is governed by a 1413
homeowners' association and subject to a recreational covenant 1414
must contain the following disclosure summary in conspicuous 1415
type and in substantially the following form: 1416
1417
DISCLOSURE SUMMARY 1418
1419
YOUR PARCEL IS SUBJECT TO A RECREATIONAL COVE NANT. AS A 1420
PURCHASER OF PROPERTY SUBJECT TO A RECREATIONAL COVENANT, YOU 1421
ARE OBLIGATED TO PAY AMENITY DUES TO A PRIVATE AMENITIES OWNER. 1422
1423
AS THE PURCHASER OF SUCH PROPERTY, I ACKNOWLEDGE ALL OF THE 1424
FOLLOWING: 1425
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1426
1. THE PROPERTY ON WHICH THE PRIVATELY -OWNED RECREATIONAL 1427
AMENITIES ARE LOCATED, WHICH ARE GOVERNED BY THE RECREATIONAL 1428
COVENANT, IS NOT A COMMON AREA OF THE HOMEOWNERS' ASSOCIATION 1429
AND IS NOT OWNED OR CONTROLLED BY THE HOMEOWNERS' ASSOCIATION. 1430
THE RECREATIONAL COVENANT IS NOT A GOVERNING DOCUMENT OF THE 1431
ASSOCIATION. 1432
1433
2. THE AMOUNT OF ANY AMENITY DUES IS GOVERNED BY THE 1434
RECREATIONAL COVENANT. SUCH DOCUMENT CONTAINS IMPORTANT 1435
PROVISIONS AND RIGHTS AND IS A PUBLIC RECORD AND AVAILABLE UPON 1436
REQUEST. 1437
1438
3. THE PRIVATE AMENITIES OWNER DETERMINES THE BUDGET FOR THE 1439
OPERATION AND MAINTENANCE OF THE PRIVATELY -OWNED RECREATIONAL 1440
AMENITIES. HOWEVER, EACH PARCEL OWNER SUBJECT TO THE 1441
RECREATIONAL COVENANT IS STILL RESPONSIBLE FOR AMENITY DUES. 1442
1443
4. AMENITY DUES MAY BE SUBJECT TO PERIODIC CHANGE. AMENITY DUES 1444
ARE IN ADDITION TO, AND SEPARATE AND DISTINCT FROM, THE 1445
ASSESSMENTS LEVIED BY THE ASSOCIATION. 1446
1447
5. THE FAILURE TO PAY AMENITY DUES OR OTHER CHARGES LEVIED BY A 1448
PRIVATE AMENITIES OWNER COULD RESULT IN A LIEN ON YOUR PARCEL. 1449
1450
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6. THIRD PARTIES WHO ARE NOT MEMBE RS OF THE ASSOCIATION MAY 1451
HAVE THE RIGHT TO ACCESS AND USE THE PRIVATELY -OWNED 1452
RECREATIONAL AMENITIES AS DETERMINED BY THE PRIVATE AMENITIES 1453
OWNER. 1454
1455
7. THE REQUIREMENT FOR MANDATORY MEMBERSHIP AND THE OBLIGATION 1456
TO PAY AMENITY DUES CAN BE FOUND IN THE REC REATIONAL COVENANT OR 1457
OTHER RECORDED INSTRUMENT. 1458
1459
8. THE PRIVATE AMENITIES OWNER MAY AMEND THE RECREATIONAL 1460
COVENANT WITHOUT THE APPROVAL OF THE ASSOCIATION OR PARCEL 1461
OWNERS, SUBJECT TO THE TERMS OF THE RECREATIONAL COVENANT AND 1462
SECTION 720.412, FLORIDA S TATUTES. 1463
1464
9. THE STATEMENTS CONTAINED IN THIS DISCLOSURE ARE ONLY SUMMARY 1465
IN NATURE AND, AS A PROSPECTIVE PURCHASER, YOU SHOULD REFER TO 1466
THE RECREATIONAL COVENANT BEFORE PURCHASING A PARCEL. THE 1467
RECREATIONAL COVENANT IS A MATTER OF PUBLIC RECORD AND MAY B E 1468
OBTAINED FROM THE RECORD OFFICE IN THE COUNTY IN WHICH THE 1469
PARCEL YOU ARE PURCHASING IS LOCATED OR, IF NOT RECORDED, MAY BE 1470
OBTAINED FROM THE DEVELOPER UPON REQUEST. 1471
1472
(2) The disclosure summary required by this section must 1473
be provided to a prospective purchaser by the developer or the 1474
parcel owner selling the parcel. Any contract or agreement for 1475
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sale must refer to and incorporate the disclosure summary and 1476
must include, in prominent language, a statement that the 1477
prospective purchaser should not execu te the contract or 1478
agreement for sale until he or she has received and read the 1479
disclosure summary required by this section. 1480
(3) A contract or agreement for sale is voidable by a 1481
purchaser if the disclosure summary required by this section is 1482
not provided to the purchaser before the execution of the 1483
contract or agreement. In order to void the contract or 1484
agreement, the purchaser must deliver written notice cancelling 1485
the contract or agreement to the seller or the seller's agent or 1486
representative within 3 days after receipt of the disclosure 1487
summary or before closing, whichever occurs first. The 1488
purchaser's right to void a contract or an agreement terminates 1489
at closing. This right may not be waived by the purchaser. 1490
Section 16. This act shall take effec t July 1, 2025. 1491