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720.307
Transition of association control in a community.-- With respect to
homeowners' associations:
(1) Members other than the developer are
entitled to elect at least a majority of the members of the board of
directors of the homeowners’ association when the earlier of the
following events occurs:
(a) Three months after 90 percent of the parcels in all phases of the
community that will ultimately be operated by the homeowners’
association have been conveyed to members other than the developer;
(b) Such other percentage of the parcels has been conveyed to members,
or such other date or event has occurred, as is set forth in the
governing documents in order to comply with the requirements of any
governmentally chartered entity with regard to the mortgage financing of
parcels;
(c) Upon the developer abandoning or deserting its responsibility to
maintain and complete the amenities or infrastructure as disclosed in
the governing documents. There is a rebuttable presumption that the
developer has abandoned and deserted the property if the developer has
unpaid assessments or guaranteed amounts under s. 720.308 for a period
of more than 2 years;
(d) Upon the developer filing a petition seeking protection under
chapter 7 of the federal Bankruptcy Code;
(e) Upon the developer losing title to the property through a
foreclosure action or the transfer of a deed in lieu of foreclosure,
unless the successor owner has accepted an assignment of developer
rights and responsibilities first arising after the date of such
assignment; or
(f) Upon a receiver for the developer being appointed by a circuit court
and not being discharged within 30 days after such appointment, unless
the court determines within 30 days after such appointment that transfer
of control would be detrimental to the association or its members.
For purposes of this section, the term “members other than the
developer” shall not include builders, contractors, or others who
purchase a parcel for the purpose of constructing improvements thereon
for resale.
(2) Members other than the developer are entitled to elect at least one
member of the board of directors of the homeowners’ association if 50
percent of the parcels in all phases of the community which will
ultimately be operated by the association have been conveyed to members
other than the developer.
(3) The developer is entitled to elect at least one member of the board
of directors of the homeowners’ association as long as the developer
holds for sale in the ordinary course of business at least 5 percent of
the parcels in all phases of the community. After the developer
relinquishes control of the homeowners’ association, the developer may
exercise the right to vote any developer-owned voting interests in the
same manner as any other member, except for purposes of reacquiring
control of the homeowners’ association or selecting the majority of the
members of the board of directors.
(4) At the time the members are entitled to elect at least a majority of
the board of directors of the homeowners’ association, the developer
shall, at the developer’s expense, within no more than 90 days deliver
the following documents to the board:
(a) All deeds to common property owned by the association.
(b) The original of the association’s declarations of covenants and
restrictions.
(c) A certified copy of the articles of incorporation of the
association.
(d) A copy of the bylaws.
(e) The minute books, including all minutes.
(f) The books and records of the association.
(g) Policies, rules, and regulations, if any, which have been adopted.
(h) Resignations of directors who are required to resign because the
developer is required to relinquish control of the association.
(i) The financial records of the association from the date of
incorporation through the date of turnover.
(j) All association funds and control thereof.
(k) All tangible property of the association.
(l) A copy of all contracts which may be in force with the association
as one of the parties.
(m) A list of the names and addresses and telephone numbers of all
contractors, subcontractors, or others in the current employ of the
association.
(n) Any and all insurance policies in effect.
(o) Any permits issued to the association by governmental entities.
(p) Any and all warranties in effect.
(q) A roster of current homeowners and their addresses and telephone
numbers and section and lot numbers.
(r) Employment and service contracts in effect.
(s) All other contracts in effect to which the association is a party.
(t) The financial records, including financial statements of the
association, and source documents from the incorporation of the
association through the date of turnover. The records shall be audited
by an independent certified public accountant for the period from the
incorporation of the association or from the period covered by the last
audit, if an audit has been performed for each fiscal year since
incorporation. All financial statements shall be prepared in accordance
with generally accepted accounting principles and shall be audited in
accordance with generally accepted auditing standards, as prescribed by
the Board of Accountancy, pursuant to chapter 473. The certified public
accountant performing the audit shall examine to the extent necessary
supporting documents and records, including the cash disbursements and
related paid invoices to determine if expenditures were for association
purposes and the billings, cash receipts, and related records of the
association to determine that the developer was charged and paid the
proper amounts of assessments. This paragraph applies to associations
with a date of incorporation after December 31, 2007.
(5) This section does not apply to a homeowners’ association in
existence on the effective date of this act, or to a homeowners’
association, no matter when created, if such association is created in a
community that is included in an effective
development-of-regional-impact development order as of the effective
date of this act, together with any approved modifications thereof.
History.—s. 57, ch. 95-274; s. 2, ch. 98-261; s. 48, ch. 2000-258; s. 14, ch. 2007-173; s. 5, ch.
2013-218; ch.
2021-99.
Note.—Former s. 617.307. |