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Florida Administrative Code (Last Updated: April 18, 2024) |
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61. Department of Business and Professional Regulation |
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61B. Division of Florida Condominiums, Timeshares and Mobile Homes |
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61B-76. Accounting And Financial Reporting Requirements; Budgets, Guarantees, And Reserves; Financial Statements And Reports |
1(1) Establishment of the guarantee. If a guarantee is not included in the purchase contracts, cooperative documents, or prospectus, any agreement establishing a guarantee shall be effective only upon the approval of a majority of the voting interests of the unit owners other than the developer. Approval shall be expressed at a meeting of the unit owners, voting in person or by limited proxy; or by agreement in writing without a meeting if provided in the bylaws. Such guarantee shall meet the requirements of this rule.
87(2) Guarantee period. The period of time for the guarantee shall be indicated by a specific beginning and ending date or event.
109(a) The ending date or event shall be the same for all of the unit owners of a cooperative including the unit owners in different phases of phase cooperatives;
138(b) The guarantee may provide for different intervals of time during a guarantee period with different dollar amounts for each such interval; and
161(c) The guarantee may provide that after the initial stated period, the developer has an option to extend the guarantee for one or more additional stated periods. The extension of a guarantee is limited to extending the ending date or event; therefore, the developer does not have the option of changing the level of assessments guaranteed.
217(3) Maximum level of assessments. The stated dollar amount of the guarantee shall be an exact dollar amount for each type of unit identified in the cooperative documents. Regardless of the stated dollar amount of the guarantee, assessments charged to a unit owner shall not exceed the maximum obligation of the unit owner based on the total amount of the adopted budget and the unit owner's proportion or percentage of sharing common expenses.
290(4) Cash funding requirements during the guarantee. The cash payments required from the guarantor during the guarantee period shall be determined as follows:
313(a) If at any time during the guarantee period the funds collected from unit owner assessments at the guaranteed level are not sufficient to provide payment, on a timely basis, of all common expenses, including the full funding of reserves unless properly waived, the guarantor shall advance sufficient cash to the association at the time such payments are due; and
373(b) No revenues or capital contributions other than regular periodic assessments, and cash payments by the guarantor as provided in subsection (4)(a) of this rule, shall be utilized for the payment of common expenses during the guarantee period. This restriction includes items such as interest revenue, vending revenue, laundry revenue, other non-assessment revenue and capital contributions.
429(5) Calculation of guarantor's final obligation. The guarantor's total financial obligation to the association at the end of the guarantee period shall be determined on the accrual basis using the following formula:
461(a) The guarantor shall fund the total common expenses incurred during the guarantee period; less
476(b) The total regular periodic assessments charged to the unit owners other than the guarantor during the guarantee period regardless of whether the actual level charged was less than the maximum guaranteed amount.
509Specific Authority 511719.501(1)(f), 512(j) FS. Law Implemented 516719.108(8), 517719.501(1)(j) FS. 519History–New 12-20-95.
