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TO:            Condominium & Homeowners Associations
               Board of Directors

FROM:          Christine & Christine, P.A.
               Edward Ronsman, Esq.
               Preferred Management Services, Inc.

DATE:          March 12, 2010

RE:         2010 Legislative Session - Bills Affecting Community Associations
            Contact Information of State Legislators

       The law firm of Christine & Christine, P.A. and Preferred Management Services, Inc. are
happy to provide this 2010 Legislative Update for the review by our community association clients.
Please note that this memorandum does not constitute legal advice and is not inclusive of every item
introduced by the respective legislative bills. Please feel free to contact Lea Stokes at Preferred
Management Services, Inc. with any questions or to request further clarification, including any legal
memorandums or opinions as to how proposed legislation will affect your association specifically.

        Finally, and in conjunction with Preferred Management Services, Inc., please find enclosed
prepared correspondence for the Association's use in contacting your local legislator. At the end of
this document there includes a list of State senators and representatives for Duval, St. Johns,
Flagler, and Volusia Counties. The Association is encouraged to contact Lea Stokes or its
community association manager to facilitate the mailing of this information on behalf of all
members of the Association.

                   Florida Community Associations: 2010 Legislative Update

       There are numerous bills proposed by the State legislature which would affect community
associations throughout Florida, especially in the area of mortgage foreclosure and lender obligation
for payment of assessments. The Firm will send a memorandum to all of its association clients
upon conclusion of the 2010 legislative session should any of these bills be approved, along with
pertinent analysis and recommendations.

       Please note that numerous bills are proposed during each legislative session, with many bills
not being acted upon. That being said, it is evident that the issue of association financial stability is
the primary focus of this legislative session. Numerous bills support Association ability to demand
payment of rent directly from tenants, as well as restricting use of common areas and facilities in
condominiums where an owner is more than 90 days delinquent in payment of assessments.

        The below summaries are a brief synopsis of proposed bills and do not encompass all of the
proposed changes. The Firm is happy to provide legal opinions and analysis upon request to a
specific association. Please contact your community association manager with further questions in
this regard.

        A URL address to each bill is included at the end of each summary. Bills can be viewed in
their entirety at the linked address in .pdf form. Session history and the current status of the bill can
be found at , which contains information for proposed House and Senate Bills.

This memorandum shall not be disseminated without prior consent of Christine & Christine,
                    P.A. or Preferred Management Services, Inc.

HB 115:
     Permits further restriction of candidates for condominium Board of Directors by making
        ineligible any member who is delinquent in payment of fine, fee, or special or regular
     Condominium director who fails to sign a certificate of compliance – certifying that he/she
        has read the governing documents and will work to uphold the documents and policies – is
        automatically disqualified and removed from the Board.
     Condominium associations may suspend use of common elements and facilities (excluding
        utility services) by owner or tenant if owner is delinquent in payment of regular or special
        assessments. Currently, this restriction is found in Chapter 720 governing homeowner
        associations. Voting rights may also be restricted for non-payment of an assessment, fine, or
        other charge.
     Condominium association may demand payment of rents directly to association during
        pendency of foreclosure; Association also has right of eviction for non-compliance.
     Similar amendments on the above are also proposed for homeowner associations governed
        under Chapter 720.

SB 164:
    Would require foreclosing lenders to pay the statutory cap of the lesser of 6 months
      assessments or 1% of the original mortgage amount to condominium associations if
      foreclosure is not completed within 6 months. Currently, this obligation is not triggered
      until the foreclosing lender obtains title to the property after the judicial sale. This applies to
      condominiums only.

HB 327/SB 840:
     Removes bulk assignees and bulk buyers defined in Fla. Stat. 718.703 from possible
        definition of “developer”
     Establishes Chapter 718, Part VII, “Distressed Condominium Relief”
     Relaxes the requirements of bulk assignees and purchasers by removing warranty and
        reserve funding obligation (to limited extent) in order to persuade potential buyers to
        purchase bulk units.
     Further defines transition protocol when defined bulk assignee/purchaser acquires title to

HB 329:
     Like HB 115, requires tenants to pay rent directly to condominium association when owner
        is delinquent (more than 30 days) in payment of assessments. This includes payment of
        attorney fees and costs incurred as a result of the delinquency.
     Also restricts common element use (owners and tenants) and voting rights for members
        delinquent in payment of assessments.
     Eliminates statutory cap imposed upon first mortgagees and would require foreclosing
        lender to pay all amounts owing if foreclosure is not completed within one year. First
        mortgagee required to pay six months of assessments upon commencement of foreclosure.
     This bill applies only to condominium associations.

HB 337/SB 968:
     Condominium owners shall receive “notice of delinquency” specifying each assessment
        sought by the association and corresponding interest, fee, and cost attached to such unpaid
     No restriction or condition can be placed upon owner until 20 days after receipt of this
        notice of delinquency. Restriction or condition includes any restriction on running for
        office, holding office, serving on committee, leasing the unit, or using common areas.
     This bill applied only to condominium associations.
SB 780
     Requires foreclosing lenders to pay all fees associated with residential property, including
        HOA/COA assessments, maintenance fees, and property taxes.
     Law retroactively applied to all currently filed foreclosure matters

HB 419/SB 864
     This is a very large bill directed at community associations; however, they were recently
        withdrawn. The firm will advise if alternative bills are filed.
     Among many other items, allows associations to demand rent directly from tenants to pay
        amounts owing
     Association claim of lien would be able to include cost of collection efforts by management
        companies or managers.

SB 1196 (compare with HB 1317)
    Large bill that addresses both Condominium Associations and Homeowner Associations
    Condominiums –
          o Establishes further definitions of official records, creates personal liability for
            destroying records
          o Restricts employee records, email/telephone information of members as official
          o Increases financial amount threshold for financial reporting, establishes extension
            from 120 days to 180 days to provide financial report
          o Elected director to supply certificate of compliance 90 days after election
          o Director may be suspended if more than 90 days delinquent in payment of any
            amount to Association (i.e., assessment, late fee, or fine)
          o Information services / Internet expenses treated as common expense
          o Management may charge up to $75.00 for delinquency/collection letters; this amount
            may be secured in claim of lien
          o Association may demand payment of rent from tenant if owner delinquent in
            payment of assessments; Association has right to evict upon non-payment
          o Use of common elements, common facilities, and other association property if owner
            delinquent more than 90 days in payment of “monetary obligation” to association
            (presumably includes assessments, late fees, and fines).
          o Includes language from HB 327 and establishes Chapter 718, Part VII, “Distressed
            Condominium Relief Act” pertaining to developer status and bulk
       Homeowner Associations
             o Establishes further language regarding displaying of flag
             o Further expands Association ability to suspend use of common areas and facilities by
                stating such suspension shall last until monetary obligation is satisfied (as opposed to
                “reasonable period of time”).
             o Vacant seats on Board may be filled upon appointment by Board or by called
                election; Appointed director shall serve remainder of term of previous member
                unless otherwise specified in bylaws.
             o Association may demand payment of rent from tenant occupying property if owner is
                delinquent in payment of assessments; Association has right to evict upon non-
             o Further clarifies language regarding meeting between Board and attorney discussing
                proposed or potential litigation as not being open to membership.
             o Association/management able to charge for employee time in copying records upon
                official request or may pay vendor to do so.
             o Further expands records not subject to inspection, such as personal information of
                members other than that required for association notice; electronic security measures,
                software/operating system data.
             o Additional language clarifying budgeting provisions.
             o Additional language allowing voting by absentee ballot, with additional provisions.
             o Developer-controlled Board may not pass special assessment unless majority of
                parcel owners other than developer approve such assessment by majority vote at duly
                called special meeting of membership at which a quorum is present.
     Note – this bill contains many controversial provisions. Full analysis is required should the
        bill be passed in its present form to determine its applicability to each association.

HB 561/SB 1222:
     Requires that coverage under a unit owner's policy for certain assessments include at least a
        minimum amount of loss assessment coverage.
     Provides an exemption for certain condominiums from installing a manual fire alarm system
        as required in the Life Safety Code if certain conditions are met.
     Revises the definition of the term "developer" to exclude a bulk assignee or bulk buyer, etc.
SB 1270:
     Provides an exemption, if certain conditions are met, from the requirement that certain
        condominiums install a manual fire alarm system as required in the Life Safety Code.
     Prohibits an authority having jurisdiction from requiring the completion of retrofitting of
        common areas with a sprinkler system before a specified date.
     Creates Section 720.314: as with other bills, establishes that condominium or homeowner
        association may suspend use of common areas and facilities if owner delinquent more than
        90 days in payment of assessments.

SB 1272:
     Condominiums:
          o Provides that a person acquiring title to a condominium by foreclosure or recorded
              deed in lieu of foreclosure is liable for certain additional unpaid expenses and
              assessments –specifically, pushing statutory cap from 6 months to 12 months. Such
              cap only available to first mortgagee or assignee who takes the mortgage prior to
              initiation of complaint to foreclose.
          o Creates obligation on first mortgagee to preserve property while foreclosure action is
              pending. Association may take actions to preserve and/or maintain unit, the costs of
              which may be deemed an individual assessment against unit subject to lien and
              foreclosure rights of Association.
          o First mortgagee liable for any special assessments levied during pendency of
              foreclosure as relating to damage to common elements, roof, structural components
              of building, and utilities elements.
     Homeowners Associations:
          o Incorporates language above as to property preservation requirements, special
              assessments, and ability of Association to undertake action to maintain property to
              keep in safe condition.

SB 2458:
    As with other proposed bills, authorizes a condominium association to demand payment
      from tenants of future rents to the association in lieu of payment to the unit owner.
    Association may restrict use of common areas and recreational facilities by owner or tenant;
      may suspend voting rights of owners if assessment payments delinquent 90 days or more.
    Requires that coverage under a unit owner's policy for certain assessments include at least a
      minimum amount of loss assessment coverage.
       Requires that adequate property insurance be based upon the replacement cost of the
        property to be insured as determined by an independent appraisal or update of a prior
        appraisal, etc.
     This bill applies to condominiums only.


         As previously stated, there are numerous bills proposed during the 2010 legislative session
affecting community associations. Many of the bills aim to ease the financial burden existing as a
result of the sheer volume of mortgage foreclosures currently pending across the state. Specifically,
the problems sought to be remedied are (1) statutory cap on first mortgagees for payment of past
due assessments; (2) pre-payment of assessments; and (3) units rented by unit owners who are
failing to pay condominium assessments.

       The Florida legislature is in session through April 30, 2010. Bills may be passed before this
time and thereafter subject to approval by Gov. Christ. Any bills which are not moved upon or
passed by the end of the session are terminated and subject to re-filing for the next legislative

        Please find below the contact information for your local legislator. The Association is
encouraged to contact your local legislator by way of the prepared correspondence attached to this
correspondence. Please contact Lea Stokes or your local community association manager for
further assistance in this regard.

District 18                                         District 19
Rep. Ronald “Doc” Renuart                           Rep. Michael B. Weinstein
50 A1A North                                        155 Blanding Blvd.
Suite 105                                           Suite 10
Ponte Vedra Beach, FL 32082                         Orange Park, FL 32073

District 20
Rep. William Proctor
900 SR 16
Suite 2
St. Augustine, FL 32084
District 1                      District 5
Sen. Anthony C. Hill, Sr.       Sen. Stephen R. Wise
5600 New Kings Road             1460 Cassat Avenue
Suite 5                         Suite B
Jacksonville, FL 32209          Jacksonville, FL 32205

District 8
Sen. John Thrasher
9485 Regency Square Boulevard
Suite 108
Jacksonville, FL 32225

District 20                     District 26
Rep. William Proctor            Rep. Pat Patterson
900 SR 16                       DeLand City Hall
Suite 2                         120 S. Florida Avenue
St. Augustine, FL 32084         Room 206
                                DeLand, FL 32720

District 1                      District 8
Sen. Anthony C. Hill, Sr.       Sen. John Thrasher
5600 New Kings Road             9485 Regency Square Boulevard
Suite 5                         Suite 108
Jacksonville, FL 32209          Jacksonville, FL 32225

District 21                     District 25
Rep. Charles Van Zant           Rep. D. Alan Hays
3841 Reid Street                871 South Central Avenue
Suite 5                         Suite C
Palatka, FL 32177               Umatilla, FL 32784
District 26                     District 27
Rep. Pat Patterson              Rep. Dwayne Taylor
DeLand City Hall                732 Orange Avenue
120 S. Florida Avenue           Daytona Beach, FL 32114
Room 206
DeLand, FL 32720

District 28                     District 33
Rep. Dorothy Hukill             Rep. Sandra Adams
1402 Dunlawton Avenue           2074 Winter Springs Boulevard
Suite 1-A                       Oviedo, FL 32765
Port Orange, FL 32127

District 1                      District 7
Sen. Anthony C. Hill, Sr.       Sen. Evelyn J. Lynn
5600 New Kings Road             536 North Halifax Avenue
Suite 5                         Suite 101
Jacksonville, FL 32209          Daytona Beach, FL 32118

District 8                      District 20
Sen. John Thrasher              Sen. Carey Baker
9485 Regency Square Boulevard   301 West Ward Avenue
Suite 108                       Eustis, FL 32726
Jacksonville, FL 32225

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