Excerpts of applicable Florida Statutes
     
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Excerpts of Florida Statutes

 

The following are excerpts of Florida Condominium Statutes and Administrative Code.




For complete copy of Florida's Condominium Statutes, click on the following link to the State site: Chapter 718, Condominium Statutes

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718.111 The association.--
(1) CORPORATE ENTITY.--
(a) The operation of the condominium shall be by the association, which must be a Florida Corporation....
...The owners of units shall be shareholders or members of the association.
The officers and directors of the association have a fiduciary relationship to the unit owners.
It is the intent of the Legislature that nothing in this paragraph shall be construed as providing for or removing a requirement of a fiduciary relationship between any manager employed by the association and the unit owners.


(b) A director of the association who is present at a meeting of its board at which action on any corporate matter is taken shall be presumed to have assented to the action taken unless he or she votes against such action or abstains from voting in respect thereto because of an asserted conflict of interest.

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FLORIDA ADMINISTRATIVE CODE.

For the complete version of Florida's Administrative Code click on the following link to the State site: Florida Administrative Code. After you click here, please, click on FAC Online, and then on Chapter 61, for Florida Code applicable to Condo Associations.

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61B-21.003 Enforcement Resolution and Civil Penalties.
(1) The division will seek compliance through an enforcement resolution for repeated minor or major violations.....
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(a) Minor Violations. The following violations shall be considered minor....
(THERE ARE DOZENS OF POSSIBLE VIOLATIONS LISTED. THE FOLLOWING ARE JUST A FEW)
....
Board 718.112(2)(a)2., FS. Failure to provide a timely or substantive response to a written inquiry received by certified mail
....
Board 718.112(2)(b)2., FS. Failure of proxy to contain required elements.
....
Board 718.3026(1), FS. Failure to obtain competitive bids on contracts that exceed five percent of the association's budget
....
Board 61B-23.001(6), FAC. Failure to employ a licensed manager when licensure is required.
....
Budgets 718.112(2)(f)1., FS. Failure to include applicable line items in proposed budget
....
Records 718.111(12)(b),(c), FS. Failure to provide access to records.
....


(b) Major Violations. The following violations shall be considered major due to their increased potential for consumer harm.....
(THERE ARE DOZENS OF POSSIBLE VIOLATIONS LISTED. THE FOLLOWING ARE JUST A FEW).

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Accounting 718.111(12)(a)11., FS. Insufficient detail in the accounting records 2 .....
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Budgets 61B-22.003(1)(e),(f), FAC. Failure to include reserve schedule in the Proposed budget. 1
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Records 718.111(12)(a)6., FS. Failure to maintain minutes of meetings. 1.....
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Reporting 718.111(13), FS. Failure to provide the annual financial report. 2
Reporting 718.111(14), FS. 61B-22.006(7)(b), FAC. Failure to provide year-end financial statements in a timely manner. 1
Reporting 718.111(14), FS. 61B-22.006(10), FAC. Failure to provide year-end financial statements.2
.....
Reporting 61B-22.006(1), FAC. Failure to prepare year-end financial statements in accordance with Generally Accepted Accounting Principles (GAAP).
Failure to have reviewed or audited year-end
financial statements prepared by a Florida licensed CPA. 2
....
Reserves 718.112(2)(f)2., FS. 61B-22.005(6), FAC Failure to fund reserves in a timely manner.
Failure to fully fund reserves.
Reserves 718.112(2)(f)2., FS. 61B-22.005(6),(8),FAC Failure to follow proper method to waive or
reduce reserve funding.
Reserves 718.112(2)(f)3., FS. 61B-22.005(7), FAC. Failure to obtain unit owner approval prior to using reserve funds for other purposes.
Special Assessment 718.116(10), FS. Failure to use special assessment funds for intended purposes.



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CHAPTER 61B-22 FINANCIAL AND ACCOUNTING REQUIREMENTS; BUDGETS, RESERVES,AND GUARANTEES

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61B-22.001 Definitions.
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(2) "Capital expenditure" means any expenditure of funds for:
(a) The purchase of an asset whose useful life is greater than one year in length;
(b) The replacement of an asset whose useful life is greater than one year in length; or
(c) The addition to an asset that extends the useful life of the previously existing asset for a period greater than one year in length.
.....

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61B-22.003 Budgets.
(1) Required elements for estimated operating budgets. The budget for each association shall:
(a) State the estimated common expenses or expenditures on at least an annual basis;
(b) Disclose the beginning and ending dates of the period covered by the budget;.....
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(d) Include all estimated common expenses or expenditures of the association including the categories set forth in Section 718.504(20)(c), Florida Statutes.
(The following are some of the estimated common expenses or expenditures listed)
1. Expenses for the association and condominium:
a. Administration of the association.
b. Management fees.
c. Maintenance.
......
g. Insurance.
h. Security provisions.
i. Other expenses.
j. Operating capital.
k. Reserves.
......

(e) Include a schedule stating each reserve account for capital expenditures and deferred maintenance as a separate line item with the following minimum disclosures:
1. The total estimated useful life of the asset;
2. The estimated remaining useful life of the asset;
3. The estimated replacement cost or deferred maintenance expense of the asset;
4. The estimated fund balance as of the beginning of the period for which the budget will be in effect; .....
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61B-22.005 Reserves.

(1) Reserves required by statute. Reserves required by Section 718.112(2)(f), Florida Statutes, for capital expenditures and deferred maintenance including roofing, painting, paving, and any other item for which the deferred maintenance expense or replacement cost exceeds 10,000.00 shall be included in the budget. .....
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61B-22.006 Financial Reporting Requirements.
(1) Basis of accounting. The financial statements required by Rule 61B-22.006(10), Florida Administrative Code, and Section 718.301(4), Florida Statutes, as well as financial statements voluntarily prepared in lieu of a financial report as provided in Section 718.111(13), Florida Statutes, shall be prepared on the accrual basis using fund accounting in accordance with generally accepted accounting principles. ......
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(7) Timing.

(a) Financial reports prepared pursuant to Section 718.111(13), Florida Statutes, as well as financial statements voluntarily prepared in lieu of a financial report as provided in Section 718.111(13), Florida Statutes, shall be mailed or delivered by the association to the unit owners within 60 days following the end of the fiscal or calendar year to which the statements relate or
annually on such date as is otherwise provided in the association bylaws.

(b) Financial statements required by Rule 61B-22.006(10), Florida Administrative Code, shall be mailed or delivered by the association to the unit owners within 90 days following the end of the fiscal or calendar year to which the statements relate or
annually on such date as is otherwise provided in the association bylaws.
.....


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