<<

MOBILE

Overview This chapter provides information to familiarize you with mobile homes and the Mobile Act. We explain the background and purpose of this Act, and review general provisions of the law. We review the sections of the Act, and examine important provisions. This chapter also includes important definitions.

Objectives After completing this chapter, you should be able to:  Be familiar with the laws that govern mobile home communities  Recognize definitions pertinent to mobile homes and mobile home parks  Understand the rights and responsibilities of mobile home park owners  Identify requirements of the prospectus  Comprehend the rights and responsibilities of mobile home owners  Identify how a mobile home homeowners’ association is formed  Recognize the powers and duties of mobile home homeowners’ associations  Recognize director and officer fiduciary responsibilities  Be familiar with required association procedures  Understand how mobile home association directors are recalled  Identify the responsibilities of the Florida Mobile Home Relocation Corporation (FMHRC)  Identify responsibilities of DFCTSMH  Understand the rights of the mobile home association during the sale of a mobile home park  Identify procedures related to evictions in mobile home parks

Reicon Publishing 1 Chapter 13 - Mobile Homes

1 THE FLORIDA MOBILE HOME ACT 2 3 BACKGROUND 4 5 Like , cooperatives, and homeowners’ associations, mobile home parks 6 with ten or more lots are governed by specific statutes and administrative rules. We 7 identified these laws and administrative codes in an earlier chapter. 8 9 10 Type of Association Statute Administrative Rules 11 Mobile Home F.A.C. 61B-29 through 35 F.S. 723 12 (with 10 or more lots) F.A.C. 61M-1 13 14 The statute and administrative rules provide the main framework and guidelines for 15 creating and operating mobile home parks. Association-specific requirements and 16 guidelines are set forth in the association documents.

17 As discussed earlier, effective January 1, 1977, the Florida Legislature requires that 18 community associations be structured as corporations. 19 20 Keep in mind that “not for profit” does not mean tax-exempt and that all 21 community associations must file tax returns. 22 23 THE ACT (F.S. 723) 24 25 This course does not dedicate substantial resources to the discussion of F.S. 723. If you 26 are hired to manage a mobile home park, we strongly recommend that you carefully 27 review F.S. 723 and F.A.C. 61B-29 through 35 and F.A.C. 61M-1 and consider taking a 28 course that is specific to mobile home park management. 29 30 F.S. 723.004 states that: 31 32  There are factors that are unique to the relationship between a mobile home owner 33 and the mobile home park owner that create inherently real and substantial 34 differences from other landlord-tenant relationships. 35  A mobile home park owner has a legitimate business interest in the operation of the 36 park as a part of the market and has certain basic property rights that must 37 be protected. 38  The Act is created to address potential inequalities that could exist between mobile 39 home park owners and mobile home owners, and to provide regulations to protect 40 each party while preserving and protecting the rights of both parties. 41  F.S. 723 governs any residential tenancy in which a mobile home is placed upon a 42 rented or leased lot in a mobile home park or a mobile home subdivision in which 43 10 or more lots are offered for rent or lease. 44  The Act does not apply to: 45 o Any other tenancy, including one in which both a mobile home and mobile home 46 lot are rented or leased by the mobile home resident 47 o A tenancy in which rental space is offered for occupancy by recreational-vehicle- 48 type units, which are primarily designed as temporary living quarters for 49 recreational camping or travel use, and which have their own motor power or are 50 mounted on or drawn by another vehicle.

Reicon Publishing 2 Chapter 13 - Mobile Homes

1 A mobile home park of fewer than 10 units is governed by F.S. 83, Part II (Florida 2 Residential Landlord and Tenant Act). We do not discuss mobile home parks with fewer 3 than 10 units. 4 5 DEFINITIONS 6 7 Electronic transmission: A form of communication, not directly involving the physical 8 transmission or transfer of paper, that creates a record that may be retained, retrieved, 9 and reviewed by a recipient and that may be directly reproduced in a comprehensible 10 and legible paper form by the recipient through an automated process, such as a printer 11 or copy machine. 12 13 Example: Telegrams, facsimile transmission of images, and text that is sent via e- 14 mail between computers. Electronic transmission does not include oral 15 communication by telephone. 16 17 Homeowners’ association: A corporation not for profit that is formed and operates in 18 compliance with the Act, in which not less than two-thirds of all mobile home park 19 owners within the park have consented, in writing, to become members. Upon 20 incorporation, all consenting mobile home owners become members.1 A park owner 21 cannot be a member of the association, even if they own a mobile home within the park. 22 When used in F.S. 723 and this chapter, we refer to a mobile home homeowners’ 23 association. This is distinguished from an HOA, formed under F.S. 720. 24 25 Homeowners’ committee: A committee, not to exceed five persons in number, 26 designated by a majority of the affected homeowners in a mobile home park or a 27 subdivision (when no homeowners’ association exists); or, if a homeowners’ association 28 has been formed, designated by the board of the association. The purpose of 29 homeowners’ committee is to meet with the park owner or park developer to discuss lot 30 rental increases, reduction in services or utilities, or changes in rules and regulations 31 and any other matter authorized by the homeowners’ association, or the majority of the 32 affected home owners, and who is authorized to enter into a binding agreement with the 33 park owner or subdivision developer, or a binding mediation agreement, on behalf of the 34 association, its members, and all other mobile home owners in the mobile home park. 35 36 Lot rental amount: All financial obligations, except user fees, that are required as a 37 condition of the tenancy. 38 39 Mediation: A process whereby a mediator appointed by the DFCTSMH, or mutually 40 selected by the parties, acts to encourage and facilitate the resolution of a dispute. It is 41 an informal and non-adversarial process with the objective of helping the disputing 42 parties reach a mutually acceptable agreement. For purposes of mediation, the term 43 parties mean a park owner and a homeowners’ committee. 44 45 Member: A mobile home owner who consents to being bound by the articles of 46 incorporation, bylaws, and policies of the incorporated homeowners’ association. Also 47 referred to as a shareholder. Anyone who is not a bona fide owner of a mobile home in 48 the park is prohibited from becoming a member.

1 When a mobile home association has voted to purchase the mobile home park from the park owner, it creates a subdivision, which must be a , cooperative, HOA, or other legal subdivision entity. F.S. 723 provides certain requirements that the association must follow during the transition to another type of entity. Reicon Publishing 3 Chapter 13 - Mobile Homes

1 Mobile home owner: Refers to the owner of a mobile home who leases or rents a lot or 2 space within a mobile home park. 3 4 Mobile home park owner (park owner): Refers to the owner or operator of a mobile 5 home park as defined above. The ownership instrument may be any form of land 6 ownership that is permitted under Florida law. 7 8 Mobile home park: Use of land in which lots or spaces are offered for rent or lease for 9 the placement of mobile homes and in which the primary use is residential. May also be 10 referred to as a mobile home subdivision. 11 12 Mobile home: A residential structure that is transportable in one or more sections. 8 13 body feet or more in width and over 35 body feet in length, with a hitch, built on an 14 integral chassis, designed to be used as a unit when it is connected to required 15 utilities, and not originally sold as a recreational vehicle. It includes plumbing, heating, 16 air-conditioning, and electrical systems. 17 18 Non-ad valorem assessment: Those assessments which are not based upon millage 19 and which can become a lien against a homestead as permitted in s. 4, Art. X of the 20 State Constitution. 21 22 Pass-through charge: The mobile home owner’s proportionate share of the necessary 23 and actual direct costs and impact or hookup fees for a governmentally mandated capital 24 improvement, which may include the necessary and actual direct costs and impact or 25 hookup fees incurred for capital improvements required for public or private regulated 26 utilities. 27 28 Prospectus: A document prepared by the park owner and presented to prospective 29 tenants, which summarizes key information, such as rules and regulations, lot rental 30 amounts, and procedures to increase the fees, and other information pertinent to the 31 mobile home owners. 32 33 Rescission period: the period after delivery of the prospectus to a prospective lessee 34 that they have to void the lease. For mobile homes, the rescission period is 15 days. 35 36 PARK OWNER RESPONSIBILITIES 37 38 The park owner has specific statutory responsibilities. We have listed them here. 39 40  Develop and provide a prospectus, offering circular, or written notice 41  Provide advertising materials, offering circulars and other information to the DBPR 42 Department of Division of Florida Condominiums, Timeshares and Mobile Homes 43 (DFCTSMH) for approval prior to issuance to prospective tenants 44  Comply with all health, , and housing codes 45  Ensure that the mobile home park is maintained in a safe and sanitary manner 46  Provide access to all owners, guests, and tenants to all common areas at all 47 reasonable times 48  Maintain utility connections and systems 49  Comply with properly promulgated park rules and regulations and require other 50 persons on the premises to comply 51  Post rules and regulations in the clubhouse or in some other common location

Reicon Publishing 4 Chapter 13 - Mobile Homes

1  Provide the method for the payment of any fee, fine, assessment, or charge as 2 described in the prospectus or the association documents 3 4 PARK OWNER ACCESS TO MOBILE HOMES 5 6 Mobile homes are owned by individual owners and are not a part of the mobile home 7 park. Owners of the mobile homes have the same basic rights to privacy as any other 8 home owner. As such, the park owner has no right to access a mobile home unless the 9 following applies: 10 11  The mobile home owner’s prior written consent has been obtained 12  Access is necessary to prevent imminent danger to an occupant or to the mobile 13 home 14 15 The park owner has the right of access to a mobile home for repair and replacement of 16 utilities and protection of the mobile home park at reasonable times but not in such a 17 manner to unreasonably interfere with the mobile home owner’s quiet and peaceful 18 enjoyment. 19 20 RENTAL AGREEMENTS AND CHARGES 21 22 No rental agreement shall be offered by a park owner for a term of less than one year 23 (except for the initial lease period). If there is no written rental agreement, no rental term 24 shall be less than one year from the date of initial occupancy. 25 26 Note that the initial term may be less than one year to permit the park owner to 27 have all rental agreements within the park commence and terminate at the same 28 time. This allows the park owner to have all leases expire and renew on the same day. 29 This facilitates the sale of the park, if and when the park owner chooses to do so. 30 31 The park owner cannot charge a mobile home owner more rent solely based on interior 32 improvements or installation of improved appliances in a mobile home. 33 34 A park owner must notify mobile home owners at least 90 days in advance of 35 increases in rent or fees. 36 37 Basis of Increases 38 39 The park owner must base rent or other increases on the following: 40 41  Rent comparisons to comparable mobile home parks that are operated by the same 42 owner or operator 43  Parks within the general market area 44  Parks with similar facilities, services, and amenities 45  Parks that share unique characteristics with that park 46  Any factors that a professional would normally consider in a market analysis to 47 determine appropriate rents

Reicon Publishing 5 Chapter 13 - Mobile Homes

1 Increases in Rental Amounts 2 3 The park owner may not increase the lot rental amount during the term of the lot rental 4 agreement except: 5 6  When the manner of the increase is disclosed in a lot rental agreement with a term 7 exceeding 12 months and which provides for such increases not more frequently 8 than annually 9  For pass-through charges as discussed under definitions 10 11 Passing on Increased Charges 12 13 Additionally, the park owner may pass on ad valorem taxes, non-ad valorem 14 assessments, and utility charges to the lessee, as part of, or in addition to, the lot rental 15 amount. The park owner shall collect these charges from the mobile home owners in 16 one of two ways. They may include these charges as part of the lot rental amount, or 17 may pass them on, at any time during the term of the lot rental agreement. 18 19 The park owner must state in the prospectus, offering circular, or lease agreement that 20 the passing on of such charges or increases was: 21 22  Disclosed prior to tenancy 23  Passed on as a matter of custom between the park owner and the mobile home 24 owner, or 25  Authorized by law 26 27 Other provisions of the Act, notwithstanding pass on charges, may be passed on only 28 within one year of the date a park owner remits payment of the charge. If a park owner is 29 delinquent in payment of any invoice or bill, they are prohibited from passing on any fine, 30 interest, fee, or increase levied due to their delinquency. Nothing herein shall prohibit a 31 park owner and a lessee from mutually agreeing to an alternative manner of payment to 32 the park owner of the charges. 33 34 Meeting to Discuss Increased Charges 35 36 No later than 60 days before the effective date, a committee of affected mobile home 37 owners, or the board, shall meet with the park owner to discuss the reasons for an 38 increase in lot rental amount, reduction in services or utilities, or changes in rules and 39 regulations. 40 41 F.S. 723.037(5)(d) encourages the park owner and mobile home owners to exchange 42 information, thereby encouraging resolution through mediation rather than litigation. 43 44 Court Challenges of Rental Agreements 45 46 If a court, as a matter of law, finds a mobile home lot rental amount, rent increase, or 47 change, or any provision of the rental agreement, to be unreasonable, the court may: 48 49  Refuse to enforce the lot rental agreement 50  Refuse to enforce the rent increase or change 51  Enforce the remainder of the lot rental agreement without the unreasonable provision

Reicon Publishing 6 Chapter 13 - Mobile Homes

1  Limit the application of the unreasonable provision to avoid any unreasonable result 2  Award a refund or a reduction in future rent payments 3  Award such other equitable relief as deemed necessary 4 5 When it is claimed or appears to the court that a lot rental amount, rent increase, or 6 change, or any provision thereof, may be unreasonable, the parties shall be afforded a 7 reasonable opportunity to present evidence as to its meaning and purpose, the 8 relationship of the parties, and other relevant factors to aid the court in making the 9 determination. 10 11 Market Rent 12 13 A lot rental amount that is in excess of market rent shall be considered unreasonable. 14 Market rent means that rent that would result from market forces absent an unequal 15 bargaining position between mobile home park owners and mobile home owners. 16 In determining market rent, the court may consider rents charged by comparable mobile 17 home parks in its competitive area. To be comparable, a mobile home park must offer 18 similar facilities, services, amenities, and management. 19 In determining whether a rent increase or resulting lot rental amount is unreasonable, 20 the court may consider economic or other factors, including, but not limited to, increases 21 or decreases in the consumer price index, published by the Bureau of Labor Statistics of 22 the Department of Labor; increases or decreases in operating costs or taxes; and prior 23 disclosures. 24 25 PARK OWNER RETALIATION 26 27 The park owner cannot take retaliatory or discriminatory action against a mobile home 28 owner who: 29 30  Has complained in good faith to a government agency charged with responsibility for 31 enforcement of a building, housing, or health code of a suspected violation 32 applicable to the mobile home park 33  Has organized, encouraged, or participated in a homeowners’ organization 34  Has complained to the park owner for failure to comply with F.S. 723.022 (mobile 35 home park owner general obligation) 36 37 EVICTIONS 38 39 A mobile home park owner may evict a lessee for the following grounds: 40 41  Nonpayment of the lot rental amount 42  Conviction of a violation of federal or state law or local ordinance, which violation 43 may be deemed detrimental to the health, safety, or welfare of the residents or 44 employees of the mobile home park 45  Violation of the mobile home park rules or regulations, the rental agreement, or F.S. 46 723 47  A change in the use of the land that comprises the mobile home park (see the 48 section below regarding change in land use) 49 50 No earlier than ten days after entry of a judgment in favor of the park owner, the clerk of 51 the court issues a writ of possession to the sheriff that puts the park owner in possession 52 of the mobile home owner’s personal property and mobile home.

Reicon Publishing 7 Chapter 13 - Mobile Homes

1 A mobile home owner may defend against an eviction by claiming the park owner is in 2 material noncompliance only if seven days have elapsed after the mobile home owner 3 has notified the park owner of their intention not to pay rent based on the park owner’s 4 noncompliance with provisions of F.S. 723. The mobile home owner must pay the 5 unpaid rent into the court registry. 6 7 MOBILE HOME LIENHOLDER RIGHTS 8 9 It shall be unlawful for a mobile home park owner to execute on a writ of possession of a 10 mobile home that is either undergoing foreclosure of a lien for the unpaid purchase price 11 or first lien, properly noticed pursuant to F.S. 723, or that has been foreclosed on by the 12 lienholder, and the lienholder is the titleholder of the mobile home, so long as the lot 13 rental amount is paid. 14 15 Upon the foreclosure of the lien for unpaid purchase price and sale of the mobile home, 16 the new owner of the mobile home must qualify for tenancy in the mobile home park in 17 accordance with the rules and regulations of the mobile home park. The park owner 18 shall comply with the provisions of F.S. 723.061 in determining whether the new owner 19 may qualify as a tenant. 20 21 MOBILE HOME STORAGE 22 23 The mobile home park owner shall be entitled to collect storage charges accruing from 24 five days after the lienholder (typically a bank or finance company holding the mortgage 25 to the mobile home) receives written notice of either an eviction proceeding instituted by 26 the mobile home park owner against the mobile home owner, or that the mobile home is 27 abandoned or voluntarily surrendered by the mobile home owner. 28 29 The notice shall state: 30 31  An action for eviction has been filed against the member (mobile homeowner). 32  The amount of the daily storage charges calculated pursuant to F.S. 723, and 33  The date upon which the homeowner is required to make regular payments to the 34 property owner (mobile home park owner). 35 36 The lienholder must notify the mobile home park owner within 30 days of receipt of the 37 notice pursuant to F.S. 723 whether it intends to make payment of the storage charges 38 and, if the lienholder agrees to make payment, to pay the storage charges accruing to 39 that date. Thereafter, the lienholder shall pay storage charges according to the schedule 40 of payments that the member was responsible for paying. If the lienholder does not 41 notify the park owner of its intention to not pay storage charges, the storage charges 42 shall accrue and be due and owing to the park owner. In the event the lienholder notifies 43 the park owner within 30 days of the receipt of the notice that it does not intend to pay 44 the storage charges, the storage charges shall not accrue, but the lienholder shall not be 45 entitled to any of the protections set forth in F.S. 723, and shall be subject to any 46 remedies available to the park owner including retention of possession of the mobile 47 home and foreclosure thereon to satisfy the landlord’s lien for rent. 48 49 If the lienholder files an action for replevin of the home or forecloses on the lien for the 50 unpaid purchase price or first lien, the lienholder is responsible for storage charges 51 accrued from 30 days after the date of filing of the action for replevin or foreclosure.

Reicon Publishing 8 Chapter 13 - Mobile Homes

1 If the member declares bankruptcy, the lienholder is responsible for storage charges 2 accrued from and after five days after the final court action discharging the bankruptcy, 3 or releasing the collateral, whichever occurs first. 4 5 Maximum Storage Charge 6 7 The maximum storage charge available to the park owner is: 8 9  A daily rate equal to one-thirtieth of the amount of the monthly payment last paid by 10 the member, 11  The then-current lot rental amount paid by the member, or 12  If no payment has been made, the payment required pursuant to the contract 13 between the park owner and the member. 14 15 The maximum daily storage charges may be increased over time in accordance with the 16 notice requirements under applicable provisions of Florida law, including, but not limited 17 to, F.S. 723. 18 19 Storage Charge Notice 20 21 Notice required as set forth in F.S. 723 shall be mailed by certified mail, return receipt 22 requested. Notice by certified mail shall be effective on the date of receipt or, if refused, 23 on the date of refusal. All other notices may be by regular mail, and, for purposes of 24 calculation of time, will be considered delivered five days after the date postmarked. 25 For any lien for unpaid purchase price or first lien recorded after April 8, 1992, the 26 lienholder shall notify the park owner of the lien against the mobile home and the 27 address of the lienholder. 28 29 It shall be unlawful for the park owner to refuse to allow the lienholder to repossess and 30 move the mobile home for failure to pay any charges that were not noticed in 31 accordance with the requirements of this section. If the park owner refuses to allow the 32 lienholder to repossess and move the mobile home, then the park owner shall be liable 33 to the lienholder for each day that the park owner unlawfully maintains possession of the 34 home, at a daily rate equal to one-thirtieth of the monthly payment last paid by the 35 member to the park owner, or, if no payment has been made, the payment required 36 pursuant to contract between the park owner and the member. 37 38 SALE OF MOBILE HOMES AND PARKS 39 40 The park owner cannot enforce any rule, regulation, or rental agreement that denies or 41 abridges the right of a mobile home owner to sell their mobile home within the mobile 42 home park. The park owner can regulate the size and placement of “for sale” signs. The 43 park owner cannot require the mobile home owner to use the park owner as an agent for 44 the resale of the mobile home. The park owner shall not exact a commission or fee with 45 respect to the price of the mobile home unless the park owner acted as agent for the 46 mobile home sale pursuant to a written contract. 47 48 PURCHASER RIGHTS 49 50 The purchaser of a mobile home within a mobile home park may become a lessee in the 51 mobile home park if they would otherwise qualify with the requirements of entry into the 52 park under the park rules and regulations. This is subject to the approval of the park

Reicon Publishing 9 Chapter 13 - Mobile Homes

1 owner, who may not unreasonably withhold approval. The purchaser of the mobile home 2 may cancel or rescind the contract for purchase of the mobile home if the purchaser’s 3 tenancy has not been approved by the park owner five days before the closing of the 4 purchase. 5 6 PROSPECTUS 7 8 Contents of the Prospectus 9 10 The state requires that a mobile home park owner provide a prospectus or offering 11 circular to each prospective lessee. The contents of the prospectus differ slightly, 12 depending on whether the mobile home park has less than 26 lots, or 26 or more lots. 13 We have specified the major items to be included in the prospectus, noting which 14 apply only to 26 or more lots, or to all lots. 15 16  The name and address or location of the mobile home park (all mobile home parks) 17  The name and address of the person who is authorized to receive notices and 18 demands (all mobile home parks) 19  The rental agreement (all mobile home parks) 20  The lot rental amount or user fees (all mobile home parks) 21  An explanation of the basis for rent increases (all mobile home parks) 22  Disclosure of all user fees or charges and how fees are increased [such as entrance 23 fees] (all mobile home parks) 24  Disclosure of pass-through charges and the way they will be assessed (all mobile 25 home parks) 26  Park rules and regulations, and how these may be set, changed, or promulgated (all 27 mobile home parks) 28  The existing classification and permitted uses (all mobile home parks) 29  The name of the zoning authority (all mobile home parks) 30  A detailed description of future changes in the use of the mobile home park or a 31 portion thereof (all mobile home parks) 32  If applicable, the ground lease (all mobile home parks) 33  A description of the mobile home park property, including, but not limited to, the 34 number of lots, the distance between mobile homes, recreational and other common 35 facilities, swimming pool locations and sizes, the maximum number of lots that use 36 shared facilities, personal property that is available for use by lessees, and the days 37 and hours that the facilities are available (26 lots or greater) 38  The mobile home park lot layout (26 lots or greater) 39  The lease between the mobile home park owner and the mobile home owner (26 lots 40 or greater) 41  Management and maintenance/operation arrangements, including the services that 42 are provided (26 lots or greater) 43  A description of the improvements that are required as a condition of operating the 44 mobile home park (26 lots or greater 45  How utilities will be supplied and by what entity (26 lots or greater) 46 47 Some of the charges that might affect the rental fees and/or pass through charges 48 include: 49 50  Water rates 51  Sewer rates

Reicon Publishing 10 Chapter 13 - Mobile Homes

1  Waste disposal rates 2  Major repairs or improvements 3  Management costs 4  Ad valorem (property) taxes 5  Non- valorem assessments 6  Any other fees, costs, entrance fees, or charges 7 8 Disclosures 9 10 The prospectus must contain specific disclosure language in conspicuous type stating: 11 12 1. THIS PROSPECTUS CONTAINS VERY IMPORTANT INFORMATION REGARDING YOUR 13 LEGAL RIGHTS AND YOUR FINANCIAL OBLIGATIONS IN LEASING A MOBILE HOME LOT. 14 MAKE SURE THAT YOU READ THE ENTIRE DOCUMENT AND SEEK LEGAL ADVICE IF YOU HAVE ANY QUESTIONS REGARDING THE INFORMATION SET FORTH IN THIS DOCUMENT. 15 16 2. THE STATEMENTS CONTAINED HEREIN ARE ONLY SUMMARY IN NATURE. A 17 PROSPECTIVE LESSEE SHOULD REFER TO ALL REFERENCES, ALL EXHIBITS HERETO, THE CONTRACT DOCUMENTS, AND SALES MATERIALS. 18 19 3. ORAL REPRESENTATIONS SHOULD NOT BE RELIED UPON AS CORRECTLY STATING THE REPRESENTATIONS OF THE PARK OWNER OR OPERATOR. REFER TO THIS 20 PROSPECTUS (OFFERING CIRCULAR) AND ITS EXHIBITS FOR CORRECT 21 REPRESENTATIONS. 22 4. UPON DELIVERY OF THE PROSPECTUS TO A PROSPECTIVE LESSEE, THE RENTAL 23 AGREEMENT IS VOIDABLE BY THE LESSEE FOR A PERIOD OF 15 DAYS. 24 25 Acknowledgement of Receipt 26 27 The park owner may request that the homeowner sign a receipt acknowledging receipt 28 of a copy of the prospectus, the rules and regulations, and other pertinent documents if 29 any such documents are clearly identified in the receipt itself. Such a receipt indicates 30 only that prospective lessee received the required documents. The receipt, if requested 31 by the mobile home park owner, shall be signed at the time of delivery of the identified 32 documents. 33 34 If the lessee refuses to sign the receipt, the park owner is still required to deliver the 35 required documents. However, the lessee shall thereafter be prohibited from claiming 36 that the park owner failed to deliver such documents. 37 38 The refusal of the lessee to sign the receipt shall under no circumstances constitute a 39 ground for eviction of the homeowner or of a mobile home or for the imposition of any 40 other penalty. 41 42 CHANGE IN LAND USE 43 44 Rights of the Mobile Home Homeowners’ Association 45 46 Given the shortage of open space upon which to build, developers often look to mobile 47 home parks, as a less expensive means of acquiring (re)developable lands. In many 48 cases, the infrastructure (roads, water, sewer, electric, etc.) is partially in place. Mobile 49 home park owners have therefore been open to selling park lands to developers. The 50 legislature, in recognition of the residential nature of mobile home parks, has codified a 51 process through which mobile home park owners must offer the mobile home owners

Reicon Publishing 11 Chapter 13 - Mobile Homes

1 with the opportunity to purchase the land, usually at the same price and with the same 2 conditions as a private buyer. 3 The park owner must give the association written notice of the association’s right to buy 4 the mobile home park, if the land that comprises the park is changing use from mobile 5 home rentals to a different use, at the price and under the terms and conditions that are 6 set forth in the notice. The notice must be delivered to the officers of the association by 7 United States mail. 8 9 Within 45 days of the date of mailing (not receipt) of the notice, the association may 10 execute and deliver a signed contract agreeing to the price, terms, and conditions. If the 11 association does not respond within 45 days, the park owner has no further obligation to 12 the association, unless the park owner elects to offer or sell the park at a lower price. In 13 that case, the association has an additional 10 days to execute a contract at the new 14 price, terms, and conditions. 15 16 The park owner is not obligated to give any other notice or to further negotiate with the 17 association for the sale of the park after 6 months from the date of mailing of the initial 18 notice. 19 20 The park owner must give the affected mobile home owners at least 6 months’ notice of 21 eviction due to the change in the use of the land. The following language must appear 22 on the eviction notice in a font that is no smaller than the font in which the body of the 23 notice appears: 24 25 You may be entitled to compensation from the Florida Mobile Home Relocation 26 Trust Fund, administered by the Florida Mobile Home Relocation Corporation 27 (FMHRC). FMHRC contact information is available from the Florida Department of 28 Business and Professional Regulation. 29 30 31 ACQUISITION OF THE MOBILE HOME PARK 32 33 By the Lessees 34 35 If the lessees vote to acquire the property and covert it to another form of ownership, the 36 park ceases to operate as a mobile home park, is no longer governed by F.S. 723, and 37 the association becomes a different type of association, subject to a different set of 38 statutory requirements, for instance, a condominium association. Note that F.S. 723 has 39 assumed that the creation of a new form of association will take no more than 180 days. 40 Therefore, this Act has provided certain rights and responsibilities of the mobile home 41 park association during that interim period. We discuss this shortly. 42 43 By the Association 44 45 Upon purchase of the mobile home park, the association organized under this chapter 46 may convert to a condominium, cooperative, or subdivision. The directors shall have the 47 authority to amend and restate the articles of incorporation and bylaws to comply with 48 the requirements of chapter 718, chapter 719, or other applicable sections of the Florida 49 Statutes. For a period of 180 days after the date of a purchase of a mobile home 50 park by the association, the association shall not be required to comply with the 51 provisions of F.S. 718 Part V, F.S. 719 Part V, or F.S. 720 Part II, as to mobile home

Reicon Publishing 12 Chapter 13 - Mobile Homes

1 owners or persons who have executed contracts to purchase mobile homes in the 2 park.2 3 4 Upon purchase of the park and conversion of the association to a condominium, 5 cooperative, or subdivision, the mobile home owners who were members of the 6 association prior to the conversion and who no longer meet the requirements for 7 membership, as established by the amended or restated articles of incorporation and 8 bylaws, shall no longer be members of the converted association. Mobile home owners, 9 as defined in this chapter, who no longer are eligible for membership in the converted 10 association may form an association pursuant to F.S. 723.075. Mobile home owners 11 may purchase lots in the mobile home park. 12 13 An association organized under F.S. 723 may offer subscriptions, to raise the necessary 14 funds to purchase, acquire, and operate the mobile home park, to its members or other 15 owners of mobile homes within the park. Subscription funds collected to purchase the 16 park shall be placed in an association or other escrow account prior to purchase, which 17 funds shall be held according to the terms of the subscription agreement. The directors 18 shall maintain accounting records according to generally accepted accounting practices 19 and shall, upon written request by a subscriber, furnish an accounting of the subscription 20 fund escrow account within 60 days of the purchase of the park or the ending date as 21 provided in the subscription agreement, whichever occurs first. 22 23 The election of directors in a mobile home cooperative homeowners’ association may be 24 carried out in the manner provided for in the bylaws of the association. 25 26 MOBILE HOME HOMEOWNERS’ ASSOCIATION 27 28 A mobile home park homeowners’ association3 is a not for profit corporation that is 29 created upon the consent of a minimum of two-thirds of the mobile home owners in 30 writing. After the association is created, only consenting lessees are members. However, 31 association represents all lessees in the park. 32 33 Upon receipt of its certificate of incorporation, the association shall: 34 35  Notify the park owner in writing of such incorporation 36  Advise the park owner of the names and addresses of the officers of the 37 homeowners’ association by personal delivery upon the park owner’s representative 38 as designated in the prospectus or by certified mail, return receipt requested. 39 40 Thereafter, the homeowners’ association shall notify the park owner in writing by 41 certified mail, return receipt requested, of any change of names and addresses of its 42 president or registered agent. 43 44 ASSOCIATION GOVERNING DOCUMENTS 45 46 A brief explanation of the mobile home’s association documents follows.

2 This exempts the mobile home association from sections of F.S. 718, F.S. 719, or F.S. 720, as applicable, for individuals buying into the mobile home park for 180 days. 3 F.S. 723 uses mobile home park association interchangeably with mobile home association and homeowners’ association. Reicon Publishing 13 Chapter 13 - Mobile Homes

1 Articles of Incorporation 2 3 The association must create articles of incorporation that provide: 4 5  That the association has the power to negotiate for, acquire, and operate the mobile 6 home park on behalf of the mobile home owners 7  For the conversion of the mobile home park to a condominium, a cooperative, a 8 subdivision form of ownership, or another type of ownership (such as an HOA under 9 F.S. 720) 10 11 Bylaws 12 13 The mobile home homeowners’ association, governed by F.S. 723, must create bylaws 14 that include, but are not limited to, the following provisions: 15 16  State the number of directors (Note: If the bylaws are silent, F.S. 723 defaults to five 17 directors) 18  Specify the form of administration, the manner of selection of the board and officers, 19 the specific powers and duties of the board and officers, quorum requirements, and 20 the manner of removal of officers and directors 21  Provide for, at a minimum, a president, secretary, and treasurer 22  Provide that the officers and directors serve without compensation 23  Provide that the board propose a budget to its members at a meeting of the member, 24 or in writing 25  Provide for make, levy, and collect assessments and to lease, maintain, repair, and 26 replace the common areas upon purchase of the mobile home park, in appropriate 27 shares from the members 28  A method of adopting and of amending administrative rules and regulations 29 governing the details of the operation and use of the park property 30 31 Amendment of Articles of Incorporation and Bylaws 32 33 No amendment may change the proportion or percentage by which members share in 34 the assessments and expenses as initially established unless all the members affected 35 by such change approve the amendment. 36 37 If the bylaws fail to provide a method of amendment, the bylaws may be amended by the 38 board and approved by a majority of members at a meeting at which a quorum is 39 present. 40 41 If an amendment to the articles of incorporation or the bylaws is required by any action 42 of any federal, state, or local governmental authority or agency, or any law, ordinance, or 43 rule thereof, the board may, by majority vote at a duly noticed meeting, amend the 44 articles of incorporation or bylaws without a vote of the membership.

Reicon Publishing 14 Chapter 13 - Mobile Homes

1 MOBILE HOME ASSOCIATION AND OWNER 2 3 Powers and duties of the Mobile Home Association 4 5 An association may contract, sue, or be sued with respect to the exercise or non- 6 exercise of its powers. For these purposes, the powers of the association include, but 7 are not limited to, the maintenance, management, and operation of the park property.4 8 9 The powers and duties of the association are those set forth in the articles of 10 incorporation and bylaws and any recorded declarations or restrictions encumbering the 11 park property, if not inconsistent with F.S. 723. 12 13 The association has the power to make, levy, and collect assessments and to lease, 14 maintain, repair, and replace the common areas upon purchase of the mobile home 15 park. 16 17 Rights and Responsibilities of the Mobile Home Owner 18 19 The mobile home owner has many rights and responsibilities. A partial list is below. 20 21  May make an interior improvement or install an electric or gas appliance, provided 22 that the improvement or installation is in compliance with the Florida Building Code 23 and applicable laws 24  May transfer the remainder of the term of the lease to a new owner 25  Must adhere to the rules and regulations of the association 26  Is entitled to receive a written rental agreement and a copy of the rules and 27 regulations from the park owner 28  Is entitled to 90 days’ notice of proposed changes to the rules and regulations from 29 the park owner. Neither a mobile home owner, the association, nor its committee 30 may waive the right of a 90-day prior written notice by the park owner of any increase 31 in lot rental amount, reduction in services or utilities, or change in rules and 32 regulations 33  Has the right for their spouse to assume a lease only one time during the term of that 34 lease 35  Must comply with all building permits and construction requirements on the mobile 36 home and lot and be responsible for all fines imposed by the local government for 37 noncompliance 38  Keep the mobile home lot neat and maintained in compliance with all local codes 39 40 OFFICIAL RECORDS 41 42 The association shall maintain the following items, when applicable, which constitute the 43 official records of the association: 44 45  A copy of the association’s articles of incorporation and each amendment to the 46 articles of incorporation 47  A copy of the bylaws of the association and each amendment to the bylaws 48  A copy of the written rules or policies of the association and each amendment to the 49 written rules or policies

4 This applies when the mobile home association has acquired the park from the park owner. Reicon Publishing 15 Chapter 13 - Mobile Homes

1  The approved minutes of all meetings of the members, the board, and committees of 2 the board, which minutes must be retained within the state for at least seven years 3  A current roster of all members and their mailing addresses and lot identifications. 4 The association shall also maintain the e-mail addresses and the numbers 5 designated by members for receiving notice sent by electronic transmission of those 6 members consenting to receive notice by electronic transmission. The e-mail 7 addresses and numbers provided by members to receive notice by electronic 8 transmission shall be removed from the association records when consent to receive 9 notice by electronic transmission is revoked. 10  A copy of each policy of insurance in effect. All of the association’s insurance policies 11 or copies thereof, must be retained for at least seven years 12  A copy of all contracts or agreements to which the association is a party, including, 13 without limitation, any written agreements with the park owner, leases, or other 14 agreements or contracts under which the association or its members has any 15 obligation or responsibility, which must be retained for at least seven years 16  The financial and accounting records of the association, kept according to good 17 accounting practices. All financial and accounting records must be maintained for a 18 period of at least seven years. The financial and accounting records must include: 19 o Accurate, itemized, and detailed records of all receipts and expenditures. 20 o A current account and a periodic statement of the account for each member, 21 designating the name and current address of each member who is obligated to 22 pay dues or assessments, the due date and amount of each assessment or other 23 charge against the member, the date and amount of each payment on the 24 account, and the balance due. 25 o All tax returns, financial statements, and financial reports of the association. 26 o Any other records that identify, measure, record, or communicate financial 27 information. 28  All other written records of the association not specifically included in the foregoing, 29 which are related to the operation of the association 30 31 Availability of Official Records to Members 32 33 The official records shall be maintained within the state for at least seven years and shall 34 be made available to a member for inspection or photocopying within 10 business days 35 after receipt by the board or its designee of a written request submitted by certified mail, 36 return receipt requested. The association may meet these by making the records 37 available to a member electronically via the Internet or by allowing the records to be 38 viewed in electronic format on a computer screen and printed upon request. 39 40 If the association has a photocopy machine available where the records are maintained, 41 it must provide a member with copies on request during the inspection if the entire 42 request is no more than 25 pages. An association shall allow a member or their 43 authorized representative to use a portable device, including a smartphone, tablet, 44 portable scanner, or any other technology capable of scanning or taking photographs, to 45 make an electronic copy of the official records in lieu of the association’s providing the 46 member or their authorized representative with a copy of such records. The association 47 may not charge a fee to a member or their authorized representative for the use of a 48 portable device.

Reicon Publishing 16 Chapter 13 - Mobile Homes

1 The failure of an association to provide access to the records within 10 business days 2 after receipt of a written request submitted by certified mail, return receipt requested, 3 creates a rebuttable presumption that the association willfully failed to comply the 4 statutory requirements. 5 6 A member who is denied access to official records is entitled to the actual damages or 7 minimum damages for the association’s willful failure to comply with this subsection. The 8 minimum damages are to be $10 per calendar day up to 10 days, the calculation to 9 begin on the 11th business day after receipt of the written request, submitted by certified 10 mail, return receipt requested. 11 12 The association may adopt reasonable written rules governing the frequency, time, 13 location, notice, records to be inspected, and manner of inspections, but may not require 14 a member to demonstrate a proper purpose for the inspection, state a reason for the 15 inspection, or limit a member’s right to inspect records to less than one business day per 16 month. The association may impose fees to cover the costs of providing copies of the 17 official records, including the costs of copying and for personnel to retrieve and copy the 18 records if the time spent retrieving and copying the records exceeds 30 minutes and if 19 the personnel costs do not exceed $20 per hour. Personnel costs may not be charged 20 for records requests that result in the copying of 25 or fewer pages. The association may 21 charge up to 25 cents per page for copies made on the association’s photocopier. If the 22 association does not have a photocopy machine available where the records are kept, or 23 if the records requested to be copied exceed 25 pages in length, the association may 24 have copies made by an outside duplicating service and may charge the actual cost of 25 copying, as supported by the vendor invoice. 26 27 The association shall maintain an adequate number of copies of the recorded governing 28 documents, to ensure their availability to members and prospective members. 29 30 Records Not Accessible to Members 31 32 Records not accessible to members or home owners include: 33 34  A record protected by the lawyer-client privilege, including, but not limited to, a 35 record prepared by an association attorney or prepared at the attorney’s express 36 direction which was prepared exclusively for civil or criminal litigation, for adversarial 37 administrative proceedings, or in anticipation of such litigation or proceedings until 38 the conclusion of the litigation or proceedings. 39  E-mail addresses, telephone numbers, facsimile numbers, emergency contact 40 information, any addresses for a home owner other than as provided for association 41 notice requirements, and other personal identifying information of any person, 42 excluding the person’s name, lot designation, mailing address, and property address. 43  An electronic security measure that is used by the association to safeguard data, 44 including passwords. 45  The software and operating system used by the association which allows the 46 manipulation of data, even if the home owner owns a copy of the same software 47 used by the association. The data is part of the official records of the association.

Reicon Publishing 17 Chapter 13 - Mobile Homes

1 Association Directory 2 3 An association may print and distribute to home owners a directory containing the name, 4 park address, and telephone number of each home owner. However, a home owner may 5 exclude their telephone number from the directory by so requesting in writing to the 6 association. The association is not liable for the disclosure of information that is 7 protected under this subparagraph if the information is included in an official record of 8 the association and is voluntarily provided by a home owner and not requested by the 9 association. 10 11 STATUTORY REQUIREMENTS AND PROCEDURES 12 13 MEMBER MEETINGS 14 15  There must be at least one member meeting per year. 16  At least 14 days’ written notice of a member meeting must be provided to the 17 members, and the notice must be posted in a conspicuous place on the property. 18  Unless otherwise provided in the bylaws, 30% TVI is required to constitute a quorum. 19 Any number greater than 50% TVI constitutes the majority of members. 20  Members may vote in person or by secret ballot (including absentee ballots), as 21 provided for in this Act. 22  If a mobile home or subdivision lot is owned jointly, the owners must be counted as 23 one for the purpose of determining the number of votes required for a majority. Only 24 one vote per mobile home or subdivision lot can be counted. 25  A proxy is effective only for the specific meeting for which originally given and any 26 lawfully adjourned meeting thereof and for 90 days thereafter. A proxy may be 27 revoked at any time by the member executing it. A member may not vote by general 28 proxy but may vote by limited proxy substantially conforming to a limited proxy form 29 adopted by the DFCTSMH. Limited and general proxies may be used to establish a 30 quorum. Limited proxies may be used for votes taken to amend the articles of 31 incorporation or bylaws, and any other matters for which F.S. 723 requires or permits 32 a vote of members, except that no proxy, limited or general, may be used in the 33 election of directors. 34 35 Annual Meeting and Elections 36 37  Unless waived, the notice of the annual meeting shall be mailed, hand delivered, or 38 electronically transmitted to each member. 39  All nominations for the board of directors which occur from the floor must be made 40 available at a duly noticed meeting of the members held at least 30 days before the 41 annual meeting. 42 43 Board of Directors 44 45  The board must use its best efforts to obtain and maintain adequate insurance to 46 protect the association and the park property upon purchase of the mobile home 47 park. 48  Directors may use email as a means of communication but may not cast a vote on 49 an association matter via email. 50  A vacancy occurring on the board may be filled by the affirmative vote of the majority 51 of the remaining directors, even if they constitute less than a quorum, or by the sole

Reicon Publishing 18 Chapter 13 - Mobile Homes

1 remaining director, and if the vacancy is not filled or if no director remains, by the 2 members; or, on the application of any person, by the circuit court of the county in 3 which the registered office of the corporation is located. 4  The term of a director elected or appointed to fill a vacancy expires at the next 5 annual meeting at which directors are elected. 6  A directorship to be filled because of an increase in the number of directors may be 7 filled by the board, but only for the term of office continuing until the next election of 8 directors by members. 9  A vacancy of the board that will occur at a specific later date, because of a 10 resignation effective at a later date, may be filled before the vacancy occurs; 11 however, the new director may not take office until the vacancy occurs. 12  An outgoing board or committee member must relinquish all official records and 13 property of the association in their possession or under their control to the incoming 14 board within five days after the election or removal. 15 16 Board and Committee Meetings 17 18  Meetings of the board and committees are open to all members, except meetings 19 held for the purpose of discussing personnel matters, meetings between the board or 20 a committee and the association’s attorney, with respect to actual, potential or 21 pending litigation, where the meeting is held for the purpose of seeking or rendering 22 legal advice, and where the contents of the discussion would otherwise be governed 23 by the attorney-client privilege, and meetings with the park owner to discuss rental lot 24 increases. 25  The right to attend meetings of the board and its committees includes the right to 26 speak at such meetings with reference to all designated agenda items. The 27 association may adopt reasonable written rules governing the frequency, duration, 28 and manner of members’ statements. 29  Any member may tape or videotape board and committee meetings, except for 30 meetings between the board or its appointed homeowners’ committee and the park 31 owner. DFCTSMH is responsible for developing reasonable rules regarding the tape 32 recording and videotaping. [F.A.C. 61B-33.004] 33  Except in an emergency, the board must provide 48 hours’ notice of board meetings 34 and post the notice in a conspicuous place on the property. 35  A director or committee member’s participation in a meeting via telephone, real-time 36 videoconferencing, or similar real-time telephonic, electronic, or video 37 communication counts toward a quorum, and such member may vote as if physically 38 present. A speaker shall be used so that the conversation of those board or 39 committee members attending remotely may be heard by the board or committee 40 members attending in person, as well as by members present at a meeting. 41  A director or a committee member may submit in writing their agreement or 42 disagreement with any action taken at a meeting that the director/committee member 43 did not attend. This agreement or disagreement may not be used as a vote or for the 44 purposes of creating a quorum. 45  Any item not included on the notice may be taken up on an emergency basis by at 46 least a majority plus one of directors and that such emergency action shall be 47 noticed and ratified at the next regular meeting of the board.

Reicon Publishing 19 Chapter 13 - Mobile Homes

1 Minutes 2 3  Minutes of all meetings of members, the board, and committees must be maintained 4 in written form and approved by the members, board, or committee, as applicable. 5  Each director’s vote or abstention on each matter at a board meeting must be 6 recorded in the minutes. 7  Minutes of board, member, and committee meetings must be kept for seven years. 8 9 Amending the Documents 10 11 The method by which the articles of incorporation and bylaws may be amended should 12 be stated in the documents. If the bylaws fail to provide a method of amendment, the 13 bylaws may be amended by the board and approved by a majority of members at a duly 14 called meeting at which a quorum is present. 15 16 Budgets and Finances 17 18  The board must adopt an annual budget. 19  The board must provide 30 days’ notice of the meeting at which the budget will be 20 considered. 21  The bylaws must specify the manner of collecting assessments for members’ shares 22 of the expenses of maintaining the property, which must be made no less frequently 23 than quarterly. 24  The association cannot change the percentage by which members share in 25 assessments and expenses unless all of the members who are affected approve of 26 the change. 27 28 Fiduciary Responsibilities 29 30  The officers and directors have a fiduciary responsibility to the members and each 31 director or committee person shall discharge their duties in good faith, with the care 32 an ordinary person in a like position would exercise under similar circumstances and 33 in a manner they reasonably believe to be in the best interest of the corporation. 34  In discharging their duties, a director may rely on information, opinions, reports, or 35 statements, including financial statements and other financial data, if prepared or 36 presented by: 37 o One or more officers or employees of the corporation who the director 38 reasonably believes to be reliable and competent in the matters presented. 39 o Legal counsel, public accountants, or other persons as to matters the director 40 reasonably believes are within the person’s professional or expert competence. 41 o A committee of the board of which they are not a member if the director 42 reasonably believes the committee merits confidence. 43  A director is not acting in good faith if they have knowledge concerning the matter in 44 question that makes reliance otherwise permitted unwarranted. 45  A director is not liable for any action taken as a director, or any failure to take any 46 action, if they performed the duties of their office in compliance with F.S. 723.

Reicon Publishing 20 Chapter 13 - Mobile Homes

1 Director Training 2 3 Within 90 days after being elected or appointed to the board, a newly elected or 4 appointed director shall certify by an affidavit in writing to the secretary of the association 5 that: 6 7  They have read the association’s current articles of incorporation, bylaws, and the 8 mobile home park’s prospectus, rental agreement, rules, regulations, and written 9 policies; 10  They will work to uphold such documents and policies to the best of their ability; and 11  They will faithfully discharge their fiduciary responsibility to the association’s 12 members. 13 14 In lieu of this written certification, within 90 days after being elected or appointed to the 15 board, the newly elected or appointed director may submit a certificate of having 16 satisfactorily completed the educational curriculum approved by the DFCTSMH within 17 one year before or 90 days after the date of election or appointment. The educational 18 certificate is valid and does not have to be resubmitted as long as the director serves on 19 the board without interruption. 20 21 A director who fails to timely file the written certification or educational certificate is 22 suspended from service on the board until they comply with this section. The board may 23 temporarily fill the vacancy during the period of suspension. 24 25 The secretary of the association shall retain a director’s written certification or 26 educational certificate for inspection by the members for five years after the director’s 27 election or the duration of the director’s uninterrupted tenure, whichever is longer. 28 Failure to have such written certification or educational certificate on file does not affect 29 the validity of any board action. 30 31 Recall of Directors 32 33 Recall of directors from the board is a process initiated by the association members. If 34 successful, it removes the director(s) from the board for the remainder of their term. Note 35 that a director who is recalled can run again for the board in future elections. But the 36 recalled director cannot be reappointed or re-elected during a term in which they are 37 recalled. 38 39 The members may recall directors either via a meeting or via a written petition. In either 40 case, a majority TVI must vote in favor of the recall for it to be valid. If recalled via a 41 meeting, the members must meet all requirements to hold a member meeting, including 42 the 14-day notice requirement. The use of electronic transmission as a method of giving 43 notice of a meeting for recalling a director(s) is prohibited. 44 45 If the members are successful in gaining a majority TVI to support the recall, they must 46 serve the recall by certified mail or by personal service in the manner authorized by F.S. 47 48 (Process and Service of Process) and the Florida Rules of Civic Procedure. 48 The board is required to duly notice and hold a board meeting within five full business 49 days after the member meeting to recall one or more members.

Reicon Publishing 21 Chapter 13 - Mobile Homes

1  If the board fails to duly notice and hold a board meeting within five full business 2 days after the adjournment of the members’ recall meeting or receipt of the recall 3 agreements, the recall shall be deemed effective. 4  At the board meeting, the board either certifies the recall, in which case such 5 directors are immediately recalled or determines not to certify the recall. 6  If the board does not certify the recall, it shall, within five full business days after the 7 board meeting, file with the DFCTSMH a petition for binding arbitration. 8  The board constitutes the petitioner in the arbitration, and the members who voted 9 for the recall constitute the respondents. 10  If the arbitrator certifies the recall, it shall be effective upon mailing of the final order 11 of arbitration to the association. 12 13 The recalled directors shall turn over to the board, within five full business days, all 14 records and property of the association in their possession. 15 16 A vacancy that occurs on a board as a result of a recall, where less than a majority of 17 the board are removed, the vacancy may be filled by the affirmative vote of the 18 remaining directors. If a majority or more of the directors are removed, the vacancies 19 shall be filled in accordance with procedural rules to be adopted by the DFCTSMH. 20 [F.A.C. 61B-33.002 and 61B-33.003] 21 22 If the board fails to duly notice and hold the required meeting or fails to file the required 23 arbitration petition, the member’s representative may file a petition pursuant to F.S. 24 723.1255 challenging the board’s failure to act. The petition must be filed within 60 days 25 after expiration of the applicable five full business day period. The review of this petition 26 is limited to the sufficiency of service on the board and the validity of the written 27 agreement or ballots filed. 28 29 Separately from any action of the board, a director who has been recalled may file a 30 petition pursuant to F.S. 723.1255 challenging the validity of the recall, within 60 days 31 after the recall is deemed certified and naming the association and member’s 32 representative as respondents. 33 The DFCTSMH may not accept a recall petition when there are 60 or fewer days until 34 the scheduled reelection of the director(s) sought to be recalled, or when 60 or fewer 35 days have elapsed since the election of the director(s) sought to be recalled. 36 37 FLORIDA GOVERNING ENTITIES 38 39 DIVISION OF FLORIDA CONDOMINIUMS, TIMESHARES, AND MOBILE HOMES 40 (DFCTSMH) 41 42 The DFCTSMH is charged, under F.S. 723, with the oversight of mobile home parks with 43 more than 10 lots. This includes offering education and training programs for directors, 44 officers and owners in mobile home parks. DFCTSMH has the power and duty to 45 enforce and ensure compliance with the provisions of F.S. 723 and administrative rules 46 promulgated pursuant to the Act, relating to the rental, development, and sale of mobile 47 home parks. However, DFCTSMH does not have the power or duty to enforce mobile 48 home park rules and regulations or to enforce the provisions of F.S. 723.022, 723.023, 49 and 723.033 (related to mobile home park operators).

Reicon Publishing 22 Chapter 13 - Mobile Homes

1 Powers of the DFCTSMH 2 3 The DFCTSMH has the power to make the necessary private or public investigations 4 within or outside Florida to determine whether violations of law have occurred. The 5 DFCTSMH can: 6  Subpoena witnesses and take evidence 7  Require the production of books, records, documents, or other tangible things that 8 are pertinent to the investigation 9  Make the financial records of a park owner, which are normally exempt from the 10 public records, public because of the investigation 11  Take a park owner to circuit court in a class action on behalf of mobile home owners 12  Issue orders that require a park owner to: 13  Refund rent increases, improper fees, charges, and assessments, including pass- 14 through and pass-on charges, that are collected in violation of law or rule 15  File certain documents to correct a violation 16  Assess civil penalties. 17 18 Assessing civil penalties may include imposing a civil penalty against a mobile home 19 park owner or homeowners’ association, or its assignee or agent, for any violation of this 20 chapter, a properly adopted park rule or regulation, or an administrative rule. 21 22 Violation 23 24 A penalty may be imposed based on each separate violation and, if the violation is a 25 continuing one, for each day of continuing violation. Penalties can begin from $250 and 26 up, but in no event, may a penalty for each separate violation or for each day of a 27 continuing violation exceed $5,000. 28 29 Complaint 30 31 DFCTSMH must, within 30 days after receipt of a written complaint, notify, in writing, the 32 complainant of the status of the complaint. DFCTSMH will follow up with status reports 33 to the complainant within 90 days after receipt of the written complaint. Upon completion 34 of the investigation, the DFCTSMH shall notify, in writing, the complainant and the party 35 complained against of the results of the investigation and disposition of the complaint. 36 37 Annual Fee to DFCTSMH 38 39 Each mobile home park owner shall pay to the DFCTSMH, on or before October 1 of 40 each year, an annual fee of $4 for each mobile home lot within a mobile home park 41 which they own. If the fee is not paid by December 31, the mobile home park owner shall 42 be assessed a penalty of 10% of the amount due, and they shall not have standing to 43 maintain or defend any action in the courts of this state until the amount due, plus any 44 penalty, is paid.

Reicon Publishing 23 Chapter 13 - Mobile Homes

1 Training and Education Program 2 3 DFCTSMH is required to approve training and educational programs for directors of 4 mobile homeowners’ associations and mobile home owners. The DFCTSMH: 5 6  Reviews and approves educational curriculums and training programs to be offered 7 by providers, maintains a current list of approved programs and providers, and 8 makes such lists available to directors in a reasonable and cost-effective manner 9  Has the discretion to include web-based electronic media and live training and 10 seminars in various locations throughout the state 11  Has the authority to review and approve educational curriculums and training 12 programs for directors and mobile home members to be offered by providers 13  Must establish a fee structure for the programs sufficient to recover any cost incurred 14 by the DFCTSMH in operating this program 15 16 F.S. 723 requires that the cost of educational programs be borne by the providers of the 17 programs. The education curriculum information must include: 18 19  The provider 20  A price list, if any, for the programs and copies of all materials 21  The physical location where the programs will be available, if not web-based 22  The curriculum of the program to be offered 23 24 F.S. 723 requires the educational programs provide information about statutory and 25 regulatory matters relating to the board and to the mobile home owner. It prohibits 26 programs and materials from containing editorial comments. 27 28 FLORIDA MOBILE HOME RELOCATION CORPORATION (FMHRC) 29 30 The FMHRC oversees the Florida Mobile Home Relocation Trust Fund (FMHRTF), 31 which funds the administration and operation of the FMHRC and makes payments to 32 mobile home owners under the relocation program. 33 34 The FMHRC is administered by a board of directors that is composed of six members, 35 who are appointed by the secretary of DBPR. Three are appointed from a list of 36 nominees that is submitted by the largest nonprofit association that represents mobile 37 home owners in Florida. Three are appointed from a list of nominees that is submitted by 38 the largest nonprofit association that represents the manufactured housing industry in 39 Florida. Members of the board of directors serve three-year staggered terms. The 40 secretary of DBPR, with or without cause, may remove a director from the board upon 41 written request from the association that originally nominated that director. The 42 nominating entity must include nominees for replacement with the request for removal 43 and the secretary of DBPR must immediately fill the vacancy created by the removal. 44 45 Funding 46 47 The FMHRTF is funded by: 48 49  A $1 surcharge to DFCTSMH 50  The moneys collected by the FMHRC from mobile home park owners under F.S. 51 723.06116 when there is a change in land use

Reicon Publishing 24 Chapter 13 - Mobile Homes

1  The surcharge collected by the Department of Highway Safety and Motor Vehicles 2 (FDHSMV) 3  Interest earned from the investment or deposit of moneys in the FMHRTF 4  Other appropriated funds 5 6 Fund Distribution 7 8 Before the beginning of each fiscal year, the FMHRC shall submit its annual operating 9 budget to the DBPR in writing. The DBPR distributes moneys in the FMHRTF to the 10 FMHRC as follows. 11 12  One-fourth of the operating budget shall be transferred to the FMHRC each quarter. 13  The FMHRC may approve changes to the operating budget for a fiscal year by 14 providing written notification of such changes to the DBPR. The written notification 15 must indicate the changes to the operating budget and the conditions that were 16 unforeseen at the time the FMHRC developed the operating budget and why the 17 changes are essential to continue operation of the FMHRC. 18 19 Transfer Funds 20 21 The FMHRC shall periodically submit requests to the DBPR for the transfer of funds to 22 the FMHRC needed to make payments to mobile home owners under the relocation 23 program. Requests must include documentation specifying: 24 25  The amount of funds needed 26  The name and location of the mobile home park 27  The number of approved applications for moving expenses or abandonment 28 allowance 29  Summary information specifying the number and type, single-section or multi- 30 section, of homes moved or abandoned 31 32 The DBPR shall process requests that include such documentation, subject to the 33 availability of sufficient funds within the FMHRTF, within five business days after receipt 34 of the request. 35 36 Moving Expenses 37 38 If mobile home owners are required to move because of a change in the use of the land, 39 the park owner must pay to the FMHRC $2,750 for each single-section mobile home and 40 $3,750 for each multi-section mobile home for which the mobile home owner has applied 41 for payment of moving expenses. 42 43 If the park owner does not make the payment within 30 days after they will receive an 44 invoice from the FMHRC, the park owner is subject to the following late fees: 45 46  30 days late 10% 47  60 days late 15% 48  90 days late 20% 49  120 days or more late 25%

Reicon Publishing 25 Chapter 13 - Mobile Homes

1 The park owner is not required to make the payment on behalf of a mobile home owner 2 and the mobile home owner is not entitled to compensation from the FMHRC under 3 certain conditions: 4 5  The park owner moves the mobile home owner to another space in the mobile home 6 park or to another park at the park owner’s expense. 7  Before the change-in-use eviction notice has been given, the mobile home owner 8 notifies the park owner of their intention to move. 9  The mobile home owner abandons their mobile home. 10  The mobile home owner has a pending eviction notice for nonpayment of rent. 11  If a mobile home owner is required to move because of a change in the use of the 12 land, they are entitled to one of the following payments, whichever is less: 13 o The actual moving expenses of relocating to a new location within 50 miles of the 14 vacated mobile home park 15 o $3,000 for a single-section mobile home or $6,000 for a multi-section mobile 16 home 17 18 Mobile Home Abandonment 19 20 A mobile home owner may abandon their mobile home and collect from the FMHRC 21 $1,375 for a single-section mobile home or $2,750 for a multi-section mobile home under 22 the following conditions: 23 24  The mobile home owner delivers to the park owner current title to the mobile home 25 and valid releases from all liens that are shown on the title. 26  The park owner pays to the FMHRC the amount that the mobile home owner is 27 entitled to collect from the FMHRTF.

Reicon Publishing 26