Fla. Admin. Code Ann. R. 61B-40.004 - Budgets

(1) Required elements for estimated operating budgets. The proposed and adopted budget for each timeshare plan shall:

(a) Be stated on an annual basis;

(b) Disclose the fiscal year for which the budget will be in effect;

(c) Show the total assessment for each use availability period or ownership interest according to its proportionate share of ownership or as allocated by the timeshare instrument, as applicable;

(d) Include a good faith estimate of all revenues of the timeshare plan. Revenue classifications, such as interest, assessments, and other categories shall be shown separately. If applicable, the following items shall be included in the estimated revenues section of the budget:

1. Estimated non-assessment revenues; and

2. Estimated common surplus as of the beginning of the period for which the budget will be in effect.

(e) Include a good faith estimate of all common expenses or expenditures of the timeshare plan including the categories set forth in Section 721.07(5)(t)3., F.S. The following minimum reserve disclosures for proposed budgets are required:

1. Reserves for capital expenditures and deferred maintenance as required by Section 721.07(5)(u)3., F.S., shall be included in the proposed annual budget, or as a separate reserve budget, stating each such reserve category for capital expenditures and deferred maintenance as a separate line item and with the following minimum disclosures:

a. The total estimated useful life of the asset;

b. The estimated remaining useful life of the asset;

c. The estimated replacement cost or deferred maintenance expense of the asset;

d. The estimated fund balance of the asset as of the beginning of the period for which the budget will be in effect; and

e. The developer's total funding obligation, as if all timeshare periods are sold, for each converter reserve account established pursuant to Section 721.03(3)(e), F.S., if applicable.

2. Categories of expense that are restricted as to use shall be stated in the reserve portion of the budget. Categories of expense that are not restricted as to use shall be stated in the operating portion of the budget.

(f) Include estimated common deficits as of the beginning of the period for which the budget will be in effect as a separate line item of the budget.

(2) Condominium associations operating both timeshared units and non-timeshared units. The budget for an association operating both whole condominium units and timeshared condominium units shall provide separate schedules, conforming to the requirements for budgets as stated in this rule, of all estimated common expenses related to the underlying condominium units and all of the estimated common expenses related to the timeshare plan, including any applicable reserves for deferred maintenance and capital expenditures.

(3) Non-condominium timeshare plans with units to be used on a non-timeshared basis. The budget for a non-condominium timeshare plan consisting of timeshared units and non-timeshared units shall provide separate schedules, conforming to the requirements for budgets as stated in this rule, of all estimated common expenses related to the non-timeshared units and all of the estimated common expenses related to the timeshared units, including any applicable reserves for deferred maintenance and capital expenditures.

(4) Condominium timeshare plans with limited common elements. If a condominium association maintains limited common elements at the expense of only those purchasers entitled to use the limited common elements pursuant to Section 718.113(1), F.S., the budget shall include a separate schedule, or schedules, conforming to the requirements for budgets as stated in this rule, of all estimated expenses specific to each of the limited common elements, including any applicable reserves for deferred maintenance and capital expenditures. The schedule or schedules may aggregate the maintenance expense of any limited common elements for which the declaration provides that the maintenance expense is to be shared by a group of purchasers.

(5) Non-condominium timeshare plans that allocate common expenses to certain purchasers based on exclusive use rights. If a non-condominium timeshare plan maintains facilities of the timeshare plan at the expense of only those purchasers entitled to use those facilities the budget shall include a separate schedule, or schedules, conforming to the requirements for budgets as stated in this rule, of all estimated expenses specific to each of the facilities, including any applicable reserves for deferred maintenance and capital expenditures. The schedule or schedules may aggregate the maintenance expense of any facilities for which the timeshare instrument provides that the maintenance expense is to be shared by a group of purchasers.

(6) Multicondominium timeshare plans. The managing entity of a multicondominium timeshare plan shall:

(a) Provide a separate schedule of estimated expenses specific to each condominium such as the maintenance, deferred maintenance, repair or replacement of the common elements of that condominium;

(b) Provide a separate schedule of estimated expenses of the association that are not specific to a condominium such as the maintenance, deferred maintenance, repair or replacement of the property serving more than one condominium;

(c) Multicondominium associations, created after June 30, 2000, or multicondominium associations that have created separate ownership interests of the common surplus of the association for each purchaser as provided in Sections 718.104(4)(h) and 718.110(12), F.S., shall include the estimated common surplus of the association and the condominium as a line item in the revenue section of the respective budgets; and

(d) Multicondominium associations created after June 30, 2000, or multicondominium associations that have created separate ownership interests of the common surplus of the association for each purchaser as provided in Sections 718.104(4)(h) and 718.110(12), F.S., shall include each purchaser's share of the estimated expenses of the association, referred to in subsection (b) of this rule, which shall be shown on the individual condominium budgets. Multicondominium associations created prior to July 1, 2000, that have not created separate ownership interests of the common surplus of the association for each purchaser as provided in Sections 718.104(4)(h) and 718.110(12), F.S., shall disclose each condominium's share of the estimated expenses of the association, as referenced in subsection (b) of this rule.

(7) Phase condominium timeshare plans. By operation of law, the annual budget of a phase condominium created pursuant to Section 718.403, F.S., shall automatically be adjusted when phases are added to a condominium to incorporate the change in proportionate ownership of the common elements by the purchasers and to incorporate any other changes related to the addition of phases in accordance with the declaration of condominium. The adjusted annual budget shall be effective on the date that the amendment to the declaration adding a phase to a phase condominium is recorded in the official records of the county in which the condominium is located. Notwithstanding the requirements of subsection (8) of this rule, the board shall not be required to follow the provisions of Section 718.112(2)(e), F.S., unless, as a result of the budget adjustment, the assessment per use availability period or ownership interest has changed.

(8) Budget amendments for condominium timeshare plans. The association of a condominium timeshare plan may amend a previously approved annual budget. In order to do so the board of administration shall follow the provisions of Section 718.112(2)(e), F.S. For example, the board shall mail a meeting notice and copies of the proposed amended annual budget to the purchasers not less than 14 days prior to the meeting at which the budget amendment will be considered.

(9) Authorized level of assessments. Assessments charged to a purchaser pursuant to an annual budget shall be based on the adopted budget and the purchaser's proportional obligation for sharing common expenses as stated in the timeshare instrument.

(10) Budgets are a part of the official records. A copy of the proposed and adopted budgets shall be maintained as part of the books and financial records of the timeshare plan.

Notes

Fla. Admin. Code Ann. R. 61B-40.004

Rulemaking Authority 718.501(1)(f), 721.03(2), 721.13(3)(d)3., 721.26(6) FS. Law Implemented 718.111(6), 718.112(2)(e), (f), 718.113(1), 718.115(2), 718.403(6)(e), 721.03(3), 721.07(5)(u)3., 721.13(2)(a), 721.15(2), (5) FS.

New 2-5-96, Amended 12-18-01.

New 2-5-96, Amended 12-18-01.