Florida Senate - 2022                          SENATOR AMENDMENT
       Bill No. CS/HB 7069, 1st Eng.
       
       
       
       
       
       
                                Ì557946UÎ557946                         
       
                              LEGISLATIVE ACTION                        
                    Senate             .             House              
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                  Floor: WD            .                                
             03/09/2022 05:42 PM       .                                
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       Senator Bradley moved the following:
       
    1         Senate Amendment (with title amendment)
    2  
    3         Delete everything after the enacting clause
    4  and insert:
    5         Section 1. Subsection (2) of section 163.04, Florida
    6  Statutes, is amended to read:
    7         163.04 Energy devices based on renewable resources.—
    8         (2) A deed restriction, covenant, declaration, or similar
    9  binding agreement may not prohibit or have the effect of
   10  prohibiting solar collectors, clotheslines, or other energy
   11  devices based on renewable resources from being installed on
   12  buildings erected on the lots or parcels covered by the deed
   13  restriction, covenant, declaration, or binding agreement. A
   14  property owner may not be denied permission to install solar
   15  collectors or other energy devices by any entity granted the
   16  power or right in any deed restriction, covenant, declaration,
   17  or similar binding agreement to approve, forbid, control, or
   18  direct alteration of property with respect to residential
   19  dwellings and within the boundaries of a condominium unit. Such
   20  entity may:
   21         (a) Determine the specific location where solar collectors
   22  may be installed on the roof within an orientation to the south
   23  or within 45 degrees 45° east or west of due south if such
   24  determination does not impair the effective operation of the
   25  solar collectors; and
   26         (b) Prohibit the installation of solar collectors in
   27  locations beyond the parameters specified in paragraph (a).
   28         Section 2. Subsection (1) of section 468.4334, Florida
   29  Statutes, is amended to read:
   30         468.4334 Professional practice standards; liability.—
   31         (1)(a) A community association manager or a community
   32  association management firm is deemed to act as agent on behalf
   33  of a community association as principal within the scope of
   34  authority authorized by a written contract or under this
   35  chapter. A community association manager and a community
   36  association management firm shall discharge duties performed on
   37  behalf of the association as authorized by this chapter loyally,
   38  skillfully, and diligently; dealing honestly and fairly; in good
   39  faith; with care and full disclosure to the community
   40  association; accounting for all funds; and not charging
   41  unreasonable or excessive fees.
   42         (b)If a community association manager or a community
   43  association management firm has a contract with a community
   44  association that has a building on the association’s property
   45  that is subject to s. 553.899, the community association manager
   46  or the community association management firm must comply with
   47  that section as directed by the board.
   48         Section 3. Section 553.899, Florida Statutes, is created to
   49  read:
   50         553.899 Mandatory structural inspections for condominium
   51  and cooperative buildings.—
   52         (1)The Legislature finds that maintaining the structural
   53  integrity of a building throughout its service life is of
   54  paramount importance in order to ensure that buildings are
   55  structurally sound so as to not pose a threat to the public
   56  health, safety, or welfare. As such, the Legislature finds that
   57  the imposition of a statewide structural inspection program for
   58  aging condominium and cooperative buildings in this state is
   59  necessary to ensure that such buildings are safe for continued
   60  use.
   61         (2)As used in this section, the terms:
   62         (a)Milestone inspection” means a structural inspection of
   63  a building, including an inspection of load-bearing walls and
   64  the primary structural members and primary structural systems as
   65  those terms are defined in s. 627.706, by a licensed architect
   66  or engineer authorized to practice in this state for the
   67  purposes of attesting to the life safety and adequacy of the
   68  structural components of the building and, to the extent
   69  reasonably possible, determining the general structural
   70  condition of the building as it affects the safety of such
   71  building, including a determination of any necessary
   72  maintenance, repair, or replacement of any structural component
   73  of the building. The purpose of such inspection is not to
   74  determine if the condition of an existing building is in
   75  compliance with the Florida Building Code or the firesafety
   76  code.
   77         (b)“Substantial structural deterioration” means
   78  substantial structural distress that negatively affects a
   79  building’s general structural condition and integrity. The term
   80  does not include surface imperfections such as cracks,
   81  distortion, sagging, deflections, misalignment, signs of
   82  leakage, or peeling of finishes unless the licensed engineer or
   83  architect performing the phase one or phase two inspection
   84  determines that such surface imperfections are a sign of
   85  substantial structural deterioration.
   86         (3)A condominium association under chapter 718 and a
   87  cooperative association under chapter 719 must have a milestone
   88  inspection performed for each building that is three stories or
   89  more in height by December 31 of the year in which the building
   90  reaches 30 years of age, based on the date the certificate of
   91  occupancy for the building was issued, and every 10 years
   92  thereafter. If the building is located within 3 miles of a
   93  coastline as defined in s. 376.031, the condominium association
   94  or cooperative association must have a milestone inspection
   95  performed by December 31 of the year in which the building
   96  reaches 25 years of age, based on the date the certificate of
   97  occupancy for the building was issued, and every 10 years
   98  thereafter. The condominium association or cooperative
   99  association must arrange for the milestone inspection to be
  100  performed and is responsible for ensuring compliance with the
  101  requirements of this section. The condominium association or
  102  cooperative association is responsible for all costs associated
  103  with the inspection. This subsection does not apply to a two
  104  family or three-family dwelling with three or fewer habitable
  105  stories above ground.
  106         (4)If a milestone inspection is required under this
  107  section and the building’s certificate of occupancy was issued
  108  on or before July 1, 1992, the building’s initial milestone
  109  inspection must be performed before December 31, 2024. If the
  110  date of issuance for the certificate of occupancy is not
  111  available, the date of issuance of the building’s certificate of
  112  occupancy shall be the date of occupancy evidenced in any record
  113  of the local building official.
  114         (5) Upon determining that a building must have a milestone
  115  inspection, the local enforcement agency must provide written
  116  notice of such required inspection to the condominium
  117  association or cooperative association by certified mail, return
  118  receipt requested.
  119         (6) Within 180 days after receiving the written notice
  120  under subsection (5), the condominium association or cooperative
  121  association must complete phase one of the milestone inspection.
  122  For purposes of this section, completion of phase one of the
  123  milestone inspection means the licensed engineer or architect
  124  who performed the phase one inspection submitted the inspection
  125  report by e-mail, United States Postal Service, or commercial
  126  delivery service to the local enforcement agency.
  127         (7)A milestone inspection consists of two phases:
  128         (a)For phase one of the milestone inspection, a licensed
  129  architect or engineer authorized to practice in this state shall
  130  perform a visual examination of habitable and nonhabitable areas
  131  of a building, including the major structural components of a
  132  building, and provide a qualitative assessment of the structural
  133  conditions of the building. If the architect or engineer finds
  134  no signs of substantial structural deterioration to any building
  135  components under visual examination, phase two of the
  136  inspection, as provided in paragraph (b), is not required. An
  137  architect or engineer who completes a phase one milestone
  138  inspection shall prepare and submit an inspection report
  139  pursuant to subsection (8).
  140         (b)A phase two of the milestone inspection must be
  141  performed if any substantial structural deterioration is
  142  identified during phase one. A phase two inspection may involve
  143  destructive or nondestructive testing at the inspector’s
  144  direction. The inspection may be as extensive or as limited as
  145  necessary to fully assess areas of structural distress in order
  146  to confirm that the building is structurally sound and safe for
  147  its intended use and to recommend a program for fully assessing
  148  and repairing distressed and damaged portions of the building.
  149  When determining testing locations, the inspector must give
  150  preference to locations that are the least disruptive and most
  151  easily repairable while still being representative of the
  152  structure. An inspector who completes a phase two milestone
  153  inspection shall prepare and submit an inspection report
  154  pursuant to subsection (8).
  155         (8)Upon completion of a phase one or phase two milestone
  156  inspection, the architect or engineer who performed the
  157  inspection must submit a sealed copy of the inspection report
  158  with a separate summary of, at minimum, the material findings
  159  and recommendations in the inspection report to the condominium
  160  association or cooperative association, and to the building
  161  official of the local government which has jurisdiction. The
  162  inspection report must, at a minimum, meet all of the following
  163  criteria:
  164         (a) Bear the seal and signature, or the electronic
  165  signature, of the licensed engineer or architect who performed
  166  the inspection.
  167         (b) Indicate the manner and type of inspection forming the
  168  basis for the inspection report.
  169         (c) Identify any substantial structural deterioration,
  170  within a reasonable professional probability based on the scope
  171  of the inspection, describe the extent of such deterioration,
  172  and identify any recommended repairs for such deterioration.
  173         (d) State whether unsafe or dangerous conditions, as those
  174  terms are defined in the Florida Building Code, were observed.
  175         (e) Recommend any remedial or preventive repair for any
  176  items that are damaged but are not substantial structural
  177  deterioration.
  178         (f) Identify and describe any items requiring further
  179  inspection.
  180         (9)The association must distribute a copy of the
  181  inspector-prepared summary of the inspection report to each
  182  condominium unit owner or cooperative unit owner, regardless of
  183  the findings or recommendations in the report, by United States
  184  mail or personal delivery and by electronic transmission to unit
  185  owners who previously consented to received notice by electronic
  186  transmission; must post a copy of the inspector-prepared summary
  187  in a conspicuous place on the condominium or cooperative
  188  property; and must publish the full report and inspector
  189  prepared summary on the association’s website, if the
  190  association is required to have a website.
  191         (10)A local enforcement agency may prescribe timelines and
  192  penalties with respect to compliance with this section.
  193         (11) A board of county commissioners may adopt an ordinance
  194  requiring that a condominium or cooperative association schedule
  195  or commence repairs for substantial structural deterioration
  196  within a specified timeframe after the local enforcement agency
  197  receives a phase two inspection report; however, such repairs
  198  must be commenced within 365 days after receiving such report.
  199  If an association fails to submit proof to the local enforcement
  200  agency that repairs have been scheduled or have commenced for
  201  substantial structural deterioration identified in a phase two
  202  inspection report within the required timeframe, the local
  203  enforcement agency must review and determine if the building is
  204  unsafe for human occupancy.
  205         (12)The Florida Building Commission shall review the
  206  milestone inspection requirements under this section and make
  207  recommendations, if any, to the Legislature to ensure
  208  inspections are sufficient to determine the structural integrity
  209  of a building. The commission must provide a written report of
  210  any recommendations to the Governor, the President of the
  211  Senate, and the Speaker of the House of Representatives by
  212  December 31, 2022.
  213         (13) The Florida Building Commission shall consult with the
  214  State Fire Marshal to provide recommendations to the Legislature
  215  for the adoption of comprehensive structural and life safety
  216  standards for maintaining and inspecting all types of buildings
  217  and structures in this state that are three stories or more in
  218  height. The commission shall provide a written report of its
  219  recommendations to the Governor, the President of the Senate,
  220  and the Speaker of the House of Representatives by December 31,
  221  2023.
  222         Section 4. Present subsections (1) through (30) of section
  223  718.103, Florida Statutes, are redesignated as subsections (2)
  224  through (31), respectively, and a new subsection (1) is added to
  225  that section, to read:
  226         718.103 Definitions.—As used in this chapter, the term:
  227         (1)“Alternative funding method” means an alternative to
  228  funding a reserve account which is approved by the division and
  229  which may reasonably be expected to fully satisfy the
  230  association’s budgetary obligations for deferred maintenance,
  231  capital expenditure, and any item for which reserves are
  232  otherwise required, including, but not limited to, payments by a
  233  developer and the incorporation into the budget of expenses for
  234  deferred maintenance, capital expenditure, and any item for
  235  which reserves are otherwise required. The term also includes
  236  any other alternative approved by the division.
  237         Section 5. Paragraphs (a), (c), and (g) of subsection (12)
  238  and subsection (13) of section 718.111, Florida Statutes, are
  239  amended to read:
  240         718.111 The association.—
  241         (12) OFFICIAL RECORDS.—
  242         (a) From the inception of the association, the association
  243  shall maintain each of the following items, if applicable, which
  244  constitutes the official records of the association:
  245         1. A copy of the plans, permits, warranties, and other
  246  items provided by the developer under s. 718.301(4).
  247         2. A photocopy of the recorded declaration of condominium
  248  of each condominium operated by the association and each
  249  amendment to each declaration.
  250         3. A photocopy of the recorded bylaws of the association
  251  and each amendment to the bylaws.
  252         4. A certified copy of the articles of incorporation of the
  253  association, or other documents creating the association, and
  254  each amendment thereto.
  255         5. A copy of the current rules of the association.
  256         6. A book or books that contain the minutes of all meetings
  257  of the association, the board of administration, and the unit
  258  owners.
  259         7. A current roster of all unit owners and their mailing
  260  addresses, unit identifications, voting certifications, and, if
  261  known, telephone numbers. The association shall also maintain
  262  the e-mail addresses and facsimile numbers of unit owners
  263  consenting to receive notice by electronic transmission. The e
  264  mail addresses and facsimile numbers are not accessible to unit
  265  owners if consent to receive notice by electronic transmission
  266  is not provided in accordance with sub-subparagraph (c)3.e.
  267  However, the association is not liable for an inadvertent
  268  disclosure of the e-mail address or facsimile number for
  269  receiving electronic transmission of notices.
  270         8. All current insurance policies of the association and
  271  condominiums operated by the association.
  272         9. A current copy of any management agreement, lease, or
  273  other contract to which the association is a party or under
  274  which the association or the unit owners have an obligation or
  275  responsibility.
  276         10. Bills of sale or transfer for all property owned by the
  277  association.
  278         11. Accounting records for the association and separate
  279  accounting records for each condominium that the association
  280  operates. Any person who knowingly or intentionally defaces or
  281  destroys such records, or who knowingly or intentionally fails
  282  to create or maintain such records, with the intent of causing
  283  harm to the association or one or more of its members, is
  284  personally subject to a civil penalty pursuant to s.
  285  718.501(1)(d). The accounting records must include, but are not
  286  limited to:
  287         a. Accurate, itemized, and detailed records of all receipts
  288  and expenditures.
  289         b. A current account and a monthly, bimonthly, or quarterly
  290  statement of the account for each unit designating the name of
  291  the unit owner, the due date and amount of each assessment, the
  292  amount paid on the account, and the balance due.
  293         c. All audits, reviews, accounting statements, reserve
  294  studies and reserve funding plans, and financial reports of the
  295  association or condominium.
  296         d. All contracts for work to be performed. Bids for work to
  297  be performed are also considered official records and must be
  298  maintained by the association for at least 1 year after receipt
  299  of the bid.
  300         12. Ballots, sign-in sheets, voting proxies, and all other
  301  papers and electronic records relating to voting by unit owners,
  302  which must be maintained for 1 year from the date of the
  303  election, vote, or meeting to which the document relates,
  304  notwithstanding paragraph (b).
  305         13. All rental records if the association is acting as
  306  agent for the rental of condominium units.
  307         14. A copy of the current question and answer sheet as
  308  described in s. 718.504.
  309         15. A copy of the inspection reports report as described in
  310  ss. 553.899 and 718.301(4)(p) and any other inspection report
  311  relating to a structural or life safety inspection of
  312  condominium property. Such record must be maintained by the
  313  association for 15 years after receipt of the report s.
  314  718.301(4)(p).
  315         16. Bids for materials, equipment, or services.
  316         17. All affirmative acknowledgments made pursuant to s.
  317  718.121(4)(c).
  318         18. All other written records of the association not
  319  specifically included in the foregoing which are related to the
  320  operation of the association.
  321         (c)1. The official records of the association are open to
  322  inspection by any association member or the authorized
  323  representative of such member at all reasonable times. The right
  324  to inspect the records includes the right to make or obtain
  325  copies, at the reasonable expense, if any, of the member or
  326  authorized representative of such member. A renter of a unit has
  327  a right to inspect and copy only the declaration of condominium,
  328  and the association’s bylaws and rules, and the inspection
  329  reports described in ss. 553.899 and 718.301(4)(p). The
  330  association may adopt reasonable rules regarding the frequency,
  331  time, location, notice, and manner of record inspections and
  332  copying but may not require a member to demonstrate any purpose
  333  or state any reason for the inspection. The failure of an
  334  association to provide the records within 10 working days after
  335  receipt of a written request creates a rebuttable presumption
  336  that the association willfully failed to comply with this
  337  paragraph. A unit owner who is denied access to official records
  338  is entitled to the actual damages or minimum damages for the
  339  association’s willful failure to comply. Minimum damages are $50
  340  per calendar day for up to 10 days, beginning on the 11th
  341  working day after receipt of the written request. The failure to
  342  permit inspection entitles any person prevailing in an
  343  enforcement action to recover reasonable attorney fees from the
  344  person in control of the records who, directly or indirectly,
  345  knowingly denied access to the records.
  346         2. Any person who knowingly or intentionally defaces or
  347  destroys accounting records that are required by this chapter to
  348  be maintained during the period for which such records are
  349  required to be maintained, or who knowingly or intentionally
  350  fails to create or maintain accounting records that are required
  351  to be created or maintained, with the intent of causing harm to
  352  the association or one or more of its members, is personally
  353  subject to a civil penalty pursuant to s. 718.501(1)(d).
  354         3. The association shall maintain an adequate number of
  355  copies of the declaration, articles of incorporation, bylaws,
  356  and rules, and all amendments to each of the foregoing, as well
  357  as the question and answer sheet as described in s. 718.504 and
  358  year-end financial information required under this section, on
  359  the condominium property to ensure their availability to unit
  360  owners and prospective purchasers, and may charge its actual
  361  costs for preparing and furnishing these documents to those
  362  requesting the documents. An association shall allow a member or
  363  his or her authorized representative to use a portable device,
  364  including a smartphone, tablet, portable scanner, or any other
  365  technology capable of scanning or taking photographs, to make an
  366  electronic copy of the official records in lieu of the
  367  association’s providing the member or his or her authorized
  368  representative with a copy of such records. The association may
  369  not charge a member or his or her authorized representative for
  370  the use of a portable device. Notwithstanding this paragraph,
  371  the following records are not accessible to unit owners:
  372         a. Any record protected by the lawyer-client privilege as
  373  described in s. 90.502 and any record protected by the work
  374  product privilege, including a record prepared by an association
  375  attorney or prepared at the attorney’s express direction, which
  376  reflects a mental impression, conclusion, litigation strategy,
  377  or legal theory of the attorney or the association, and which
  378  was prepared exclusively for civil or criminal litigation or for
  379  adversarial administrative proceedings, or which was prepared in
  380  anticipation of such litigation or proceedings until the
  381  conclusion of the litigation or proceedings.
  382         b. Information obtained by an association in connection
  383  with the approval of the lease, sale, or other transfer of a
  384  unit.
  385         c. Personnel records of association or management company
  386  employees, including, but not limited to, disciplinary, payroll,
  387  health, and insurance records. For purposes of this sub
  388  subparagraph, the term “personnel records” does not include
  389  written employment agreements with an association employee or
  390  management company, or budgetary or financial records that
  391  indicate the compensation paid to an association employee.
  392         d. Medical records of unit owners.
  393         e. Social security numbers, driver license numbers, credit
  394  card numbers, e-mail addresses, telephone numbers, facsimile
  395  numbers, emergency contact information, addresses of a unit
  396  owner other than as provided to fulfill the association’s notice
  397  requirements, and other personal identifying information of any
  398  person, excluding the person’s name, unit designation, mailing
  399  address, property address, and any address, e-mail address, or
  400  facsimile number provided to the association to fulfill the
  401  association’s notice requirements. Notwithstanding the
  402  restrictions in this sub-subparagraph, an association may print
  403  and distribute to unit owners a directory containing the name,
  404  unit address, and all telephone numbers of each unit owner.
  405  However, an owner may exclude his or her telephone numbers from
  406  the directory by so requesting in writing to the association. An
  407  owner may consent in writing to the disclosure of other contact
  408  information described in this sub-subparagraph. The association
  409  is not liable for the inadvertent disclosure of information that
  410  is protected under this sub-subparagraph if the information is
  411  included in an official record of the association and is
  412  voluntarily provided by an owner and not requested by the
  413  association.
  414         f. Electronic security measures that are used by the
  415  association to safeguard data, including passwords.
  416         g. The software and operating system used by the
  417  association which allow the manipulation of data, even if the
  418  owner owns a copy of the same software used by the association.
  419  The data is part of the official records of the association.
  420         h. All affirmative acknowledgments made pursuant to s.
  421  718.121(4)(c).
  422         (g)1. By January 1, 2019, an association managing a
  423  condominium with 150 or more units which does not contain
  424  timeshare units shall post digital copies of the documents
  425  specified in subparagraph 2. on its website or make such
  426  documents available through an application that can be
  427  downloaded on a mobile device.
  428         a. The association’s website or application must be:
  429         (I) An independent website, application, or web portal
  430  wholly owned and operated by the association; or
  431         (II) A website, application, or web portal operated by a
  432  third-party provider with whom the association owns, leases,
  433  rents, or otherwise obtains the right to operate a web page,
  434  subpage, web portal, collection of subpages or web portals, or
  435  an application which is dedicated to the association’s
  436  activities and on which required notices, records, and documents
  437  may be posted or made available by the association.
  438         b. The association’s website or application must be
  439  accessible through the Internet and must contain a subpage, web
  440  portal, or other protected electronic location that is
  441  inaccessible to the general public and accessible only to unit
  442  owners and employees of the association.
  443         c. Upon a unit owner’s written request, the association
  444  must provide the unit owner with a username and password and
  445  access to the protected sections of the association’s website or
  446  application which contain any notices, records, or documents
  447  that must be electronically provided.
  448         2. A current copy of the following documents must be posted
  449  in digital format on the association’s website or application:
  450         a. The recorded declaration of condominium of each
  451  condominium operated by the association and each amendment to
  452  each declaration.
  453         b. The recorded bylaws of the association and each
  454  amendment to the bylaws.
  455         c. The articles of incorporation of the association, or
  456  other documents creating the association, and each amendment to
  457  the articles of incorporation or other documents. The copy
  458  posted pursuant to this sub-subparagraph must be a copy of the
  459  articles of incorporation filed with the Department of State.
  460         d. The rules of the association.
  461         e. A list of all executory contracts or documents to which
  462  the association is a party or under which the association or the
  463  unit owners have an obligation or responsibility and, after
  464  bidding for the related materials, equipment, or services has
  465  closed, a list of bids received by the association within the
  466  past year. Summaries of bids for materials, equipment, or
  467  services which exceed $500 must be maintained on the website or
  468  application for 1 year. In lieu of summaries, complete copies of
  469  the bids may be posted.
  470         f. The annual budget required by s. 718.112(2)(f) and any
  471  proposed budget to be considered at the annual meeting.
  472         g. The financial report required by subsection (13) and any
  473  monthly income or expense statement to be considered at a
  474  meeting.
  475         h. The certification of each director required by s.
  476  718.112(2)(d)4.b.
  477         i. All contracts or transactions between the association
  478  and any director, officer, corporation, firm, or association
  479  that is not an affiliated condominium association or any other
  480  entity in which an association director is also a director or
  481  officer and financially interested.
  482         j. Any contract or document regarding a conflict of
  483  interest or possible conflict of interest as provided in ss.
  484  468.436(2)(b)6. and 718.3027(3).
  485         k. The notice of any unit owner meeting and the agenda for
  486  the meeting, as required by s. 718.112(2)(d)3., no later than 14
  487  days before the meeting. The notice must be posted in plain view
  488  on the front page of the website or application, or on a
  489  separate subpage of the website or application labeled “Notices”
  490  which is conspicuously visible and linked from the front page.
  491  The association must also post on its website or application any
  492  document to be considered and voted on by the owners during the
  493  meeting or any document listed on the agenda at least 7 days
  494  before the meeting at which the document or the information
  495  within the document will be considered.
  496         l. Notice of any board meeting, the agenda, and any other
  497  document required for the meeting as required by s.
  498  718.112(2)(c), which must be posted no later than the date
  499  required for notice under s. 718.112(2)(c).
  500         m.The inspection reports described in ss. 553.899 and
  501  718.301(4)(p) and any other inspection report relating to a
  502  structural or life safety inspection of condominium property.
  503         n.The reserve study required under s. 718.112(2).
  504         3. The association shall ensure that the information and
  505  records described in paragraph (c), which are not allowed to be
  506  accessible to unit owners, are not posted on the association’s
  507  website or application. If protected information or information
  508  restricted from being accessible to unit owners is included in
  509  documents that are required to be posted on the association’s
  510  website or application, the association shall ensure the
  511  information is redacted before posting the documents.
  512  Notwithstanding the foregoing, the association or its agent is
  513  not liable for disclosing information that is protected or
  514  restricted under this paragraph unless such disclosure was made
  515  with a knowing or intentional disregard of the protected or
  516  restricted nature of such information.
  517         4. The failure of the association to post information
  518  required under subparagraph 2. is not in and of itself
  519  sufficient to invalidate any action or decision of the
  520  association’s board or its committees.
  521         (13) FINANCIAL REPORTING.—Within 90 days after the end of
  522  the fiscal year, or annually on a date provided in the bylaws,
  523  the association shall prepare and complete, or contract for the
  524  preparation and completion of, a financial report for the
  525  preceding fiscal year. Within 21 days after the final financial
  526  report is completed by the association or received from the
  527  third party, but not later than 120 days after the end of the
  528  fiscal year or other date as provided in the bylaws, the
  529  association shall mail to each unit owner at the address last
  530  furnished to the association by the unit owner, or hand deliver
  531  to each unit owner, a copy of the most recent financial report
  532  or a notice that a copy of the most recent financial report will
  533  be mailed or hand delivered to the unit owner, without charge,
  534  within 5 business days after receipt of a written request from
  535  the unit owner. The division shall adopt rules setting forth
  536  uniform accounting principles and standards to be used by all
  537  associations and addressing the financial reporting requirements
  538  for multicondominium associations. The rules must include, but
  539  not be limited to, standards for presenting a summary of
  540  association reserves, including a good faith estimate disclosing
  541  the annual amount of reserve funds that would be necessary for
  542  the association to fully fund reserves for each reserve item
  543  based on the straight-line accounting method or to fully fund
  544  reserves based on the pooling method. This disclosure is not
  545  applicable to reserves funded via the pooling method. In
  546  adopting such rules, the division shall consider the number of
  547  members and annual revenues of an association. Financial reports
  548  shall be prepared as follows:
  549         (a) An association that meets the criteria of this
  550  paragraph shall prepare a complete set of financial statements
  551  in accordance with generally accepted accounting principles. The
  552  financial statements must be based upon the association’s total
  553  annual revenues, as follows:
  554         1. An association with total annual revenues of $150,000 or
  555  more, but less than $300,000, shall prepare compiled financial
  556  statements.
  557         2. An association with total annual revenues of at least
  558  $300,000, but less than $500,000, shall prepare reviewed
  559  financial statements.
  560         3. An association with total annual revenues of $500,000 or
  561  more shall prepare audited financial statements.
  562         (b)1. An association with total annual revenues of less
  563  than $150,000 shall prepare a report of cash receipts and
  564  expenditures.
  565         2. A report of cash receipts and disbursements must
  566  disclose the amount of receipts by accounts and receipt
  567  classifications and the amount of expenses by accounts and
  568  expense classifications, including, but not limited to, the
  569  following, as applicable: costs for security, professional and
  570  management fees and expenses, taxes, costs for recreation
  571  facilities, expenses for refuse collection and utility services,
  572  expenses for lawn care, costs for building maintenance and
  573  repair, insurance costs, administration and salary expenses, and
  574  reserves accumulated and expended for capital expenditures,
  575  deferred maintenance, and any other category for which the
  576  association maintains reserves.
  577         (c) An association may prepare, without a meeting of or
  578  approval by the unit owners:
  579         1. Compiled, reviewed, or audited financial statements, if
  580  the association is required to prepare a report of cash receipts
  581  and expenditures;
  582         2. Reviewed or audited financial statements, if the
  583  association is required to prepare compiled financial
  584  statements; or
  585         3. Audited financial statements if the association is
  586  required to prepare reviewed financial statements.
  587         (d) If approved by a majority of the voting interests
  588  present at a properly called meeting of the association, an
  589  association may prepare:
  590         1. A report of cash receipts and expenditures in lieu of a
  591  compiled, reviewed, or audited financial statement;
  592         2. A report of cash receipts and expenditures or a compiled
  593  financial statement in lieu of a reviewed or audited financial
  594  statement; or
  595         3. A report of cash receipts and expenditures, a compiled
  596  financial statement, or a reviewed financial statement in lieu
  597  of an audited financial statement.
  598  
  599  Such meeting and approval must occur before the end of the
  600  fiscal year and is effective only for the fiscal year in which
  601  the vote is taken, except that the approval may also be
  602  effective for the following fiscal year. If the developer has
  603  not turned over control of the association, all unit owners,
  604  including the developer, may vote on issues related to the
  605  preparation of the association’s financial reports, from the
  606  date of incorporation of the association through the end of the
  607  second fiscal year after the fiscal year in which the
  608  certificate of a surveyor and mapper is recorded pursuant to s.
  609  718.104(4)(e) or an instrument that transfers title to a unit in
  610  the condominium which is not accompanied by a recorded
  611  assignment of developer rights in favor of the grantee of such
  612  unit is recorded, whichever occurs first. Thereafter, all unit
  613  owners except the developer may vote on such issues until
  614  control is turned over to the association by the developer. Any
  615  audit or review prepared under this section shall be paid for by
  616  the developer if done before turnover of control of the
  617  association.
  618         (e) A unit owner may provide written notice to the division
  619  of the association’s failure to mail or hand deliver him or her
  620  a copy of the most recent financial report within 5 business
  621  days after he or she submitted a written request to the
  622  association for a copy of such report. If the division
  623  determines that the association failed to mail or hand deliver a
  624  copy of the most recent financial report to the unit owner, the
  625  division shall provide written notice to the association that
  626  the association must mail or hand deliver a copy of the most
  627  recent financial report to the unit owner and the division
  628  within 5 business days after it receives such notice from the
  629  division. An association that fails to comply with the
  630  division’s request may not waive the financial reporting
  631  requirement provided in paragraph (d) for the fiscal year in
  632  which the unit owner’s request was made and the following fiscal
  633  year. A financial report received by the division pursuant to
  634  this paragraph shall be maintained, and the division shall
  635  provide a copy of such report to an association member upon his
  636  or her request.
  637         Section 6. Paragraphs (d) and (f) of subsection (2) of
  638  section 718.112, Florida Statutes, are amended, and paragraph
  639  (p) is added to that subsection, to read:
  640         718.112 Bylaws.—
  641         (2) REQUIRED PROVISIONS.—The bylaws shall provide for the
  642  following and, if they do not do so, shall be deemed to include
  643  the following:
  644         (d) Unit owner meetings.—
  645         1. An annual meeting of the unit owners must be held at the
  646  location provided in the association bylaws and, if the bylaws
  647  are silent as to the location, the meeting must be held within
  648  45 miles of the condominium property. However, such distance
  649  requirement does not apply to an association governing a
  650  timeshare condominium.
  651         2. Unless the bylaws provide otherwise, a vacancy on the
  652  board caused by the expiration of a director’s term must be
  653  filled by electing a new board member, and the election must be
  654  by secret ballot. An election is not required if the number of
  655  vacancies equals or exceeds the number of candidates. For
  656  purposes of this paragraph, the term “candidate” means an
  657  eligible person who has timely submitted the written notice, as
  658  described in sub-subparagraph 4.a., of his or her intention to
  659  become a candidate. Except in a timeshare or nonresidential
  660  condominium, or if the staggered term of a board member does not
  661  expire until a later annual meeting, or if all members’ terms
  662  would otherwise expire but there are no candidates, the terms of
  663  all board members expire at the annual meeting, and such members
  664  may stand for reelection unless prohibited by the bylaws. Board
  665  members may serve terms longer than 1 year if permitted by the
  666  bylaws or articles of incorporation. A board member may not
  667  serve more than 8 consecutive years unless approved by an
  668  affirmative vote of unit owners representing two-thirds of all
  669  votes cast in the election or unless there are not enough
  670  eligible candidates to fill the vacancies on the board at the
  671  time of the vacancy. Only board service that occurs on or after
  672  July 1, 2018, may be used when calculating a board member’s term
  673  limit. If the number of board members whose terms expire at the
  674  annual meeting equals or exceeds the number of candidates, the
  675  candidates become members of the board effective upon the
  676  adjournment of the annual meeting. Unless the bylaws provide
  677  otherwise, any remaining vacancies shall be filled by the
  678  affirmative vote of the majority of the directors making up the
  679  newly constituted board even if the directors constitute less
  680  than a quorum or there is only one director. In a residential
  681  condominium association of more than 10 units or in a
  682  residential condominium association that does not include
  683  timeshare units or timeshare interests, co-owners of a unit may
  684  not serve as members of the board of directors at the same time
  685  unless they own more than one unit or unless there are not
  686  enough eligible candidates to fill the vacancies on the board at
  687  the time of the vacancy. A unit owner in a residential
  688  condominium desiring to be a candidate for board membership must
  689  comply with sub-subparagraph 4.a. and must be eligible to be a
  690  candidate to serve on the board of directors at the time of the
  691  deadline for submitting a notice of intent to run in order to
  692  have his or her name listed as a proper candidate on the ballot
  693  or to serve on the board. A person who has been suspended or
  694  removed by the division under this chapter, or who is delinquent
  695  in the payment of any assessment due to the association, is not
  696  eligible to be a candidate for board membership and may not be
  697  listed on the ballot. For purposes of this paragraph, a person
  698  is delinquent if a payment is not made by the due date as
  699  specifically identified in the declaration of condominium,
  700  bylaws, or articles of incorporation. If a due date is not
  701  specifically identified in the declaration of condominium,
  702  bylaws, or articles of incorporation, the due date is the first
  703  day of the assessment period. A person who has been convicted of
  704  any felony in this state or in a United States District or
  705  Territorial Court, or who has been convicted of any offense in
  706  another jurisdiction which would be considered a felony if
  707  committed in this state, is not eligible for board membership
  708  unless such felon’s civil rights have been restored for at least
  709  5 years as of the date such person seeks election to the board.
  710  The validity of an action by the board is not affected if it is
  711  later determined that a board member is ineligible for board
  712  membership due to having been convicted of a felony. This
  713  subparagraph does not limit the term of a member of the board of
  714  a nonresidential or timeshare condominium.
  715         3. The bylaws must provide the method of calling meetings
  716  of unit owners, including annual meetings. Written notice of an
  717  annual meeting must include an agenda; be mailed, hand
  718  delivered, or electronically transmitted to each unit owner at
  719  least 14 days before the annual meeting; and be posted in a
  720  conspicuous place on the condominium property or association
  721  property at least 14 continuous days before the annual meeting.
  722  Written notice of a meeting other than an annual meeting must
  723  include an agenda; be mailed, hand delivered, or electronically
  724  transmitted to each unit owner; and be posted in a conspicuous
  725  place on the condominium property or association property within
  726  the timeframe specified in the bylaws. If the bylaws do not
  727  specify a timeframe for written notice of a meeting other than
  728  an annual meeting, notice must be provided at least 14
  729  continuous days before the meeting. Upon notice to the unit
  730  owners, the board shall, by duly adopted rule, designate a
  731  specific location on the condominium property or association
  732  property where all notices of unit owner meetings must be
  733  posted. This requirement does not apply if there is no
  734  condominium property for posting notices. In lieu of, or in
  735  addition to, the physical posting of meeting notices, the
  736  association may, by reasonable rule, adopt a procedure for
  737  conspicuously posting and repeatedly broadcasting the notice and
  738  the agenda on a closed-circuit cable television system serving
  739  the condominium association. However, if broadcast notice is
  740  used in lieu of a notice posted physically on the condominium
  741  property, the notice and agenda must be broadcast at least four
  742  times every broadcast hour of each day that a posted notice is
  743  otherwise required under this section. If broadcast notice is
  744  provided, the notice and agenda must be broadcast in a manner
  745  and for a sufficient continuous length of time so as to allow an
  746  average reader to observe the notice and read and comprehend the
  747  entire content of the notice and the agenda. In addition to any
  748  of the authorized means of providing notice of a meeting of the
  749  board, the association may, by rule, adopt a procedure for
  750  conspicuously posting the meeting notice and the agenda on a
  751  website serving the condominium association for at least the
  752  minimum period of time for which a notice of a meeting is also
  753  required to be physically posted on the condominium property.
  754  Any rule adopted shall, in addition to other matters, include a
  755  requirement that the association send an electronic notice in
  756  the same manner as a notice for a meeting of the members, which
  757  must include a hyperlink to the website where the notice is
  758  posted, to unit owners whose e-mail addresses are included in
  759  the association’s official records. Unless a unit owner waives
  760  in writing the right to receive notice of the annual meeting,
  761  such notice must be hand delivered, mailed, or electronically
  762  transmitted to each unit owner. Notice for meetings and notice
  763  for all other purposes must be mailed to each unit owner at the
  764  address last furnished to the association by the unit owner, or
  765  hand delivered to each unit owner. However, if a unit is owned
  766  by more than one person, the association must provide notice to
  767  the address that the developer identifies for that purpose and
  768  thereafter as one or more of the owners of the unit advise the
  769  association in writing, or if no address is given or the owners
  770  of the unit do not agree, to the address provided on the deed of
  771  record. An officer of the association, or the manager or other
  772  person providing notice of the association meeting, must provide
  773  an affidavit or United States Postal Service certificate of
  774  mailing, to be included in the official records of the
  775  association affirming that the notice was mailed or hand
  776  delivered in accordance with this provision.
  777         4. The members of the board of a residential condominium
  778  shall be elected by written ballot or voting machine. Proxies
  779  may not be used in electing the board in general elections or
  780  elections to fill vacancies caused by recall, resignation, or
  781  otherwise, unless otherwise provided in this chapter. This
  782  subparagraph does not apply to an association governing a
  783  timeshare condominium.
  784         a. At least 60 days before a scheduled election, the
  785  association shall mail, deliver, or electronically transmit, by
  786  separate association mailing or included in another association
  787  mailing, delivery, or transmission, including regularly
  788  published newsletters, to each unit owner entitled to a vote, a
  789  first notice of the date of the election. A unit owner or other
  790  eligible person desiring to be a candidate for the board must
  791  give written notice of his or her intent to be a candidate to
  792  the association at least 40 days before a scheduled election.
  793  Together with the written notice and agenda as set forth in
  794  subparagraph 3., the association shall mail, deliver, or
  795  electronically transmit a second notice of the election to all
  796  unit owners entitled to vote, together with a ballot that lists
  797  all candidates not less than 14 days or more than 34 days before
  798  the date of the election. Upon request of a candidate, an
  799  information sheet, no larger than 8 1/2 inches by 11 inches,
  800  which must be furnished by the candidate at least 35 days before
  801  the election, must be included with the mailing, delivery, or
  802  transmission of the ballot, with the costs of mailing, delivery,
  803  or electronic transmission and copying to be borne by the
  804  association. The association is not liable for the contents of
  805  the information sheets prepared by the candidates. In order to
  806  reduce costs, the association may print or duplicate the
  807  information sheets on both sides of the paper. The division
  808  shall by rule establish voting procedures consistent with this
  809  sub-subparagraph, including rules establishing procedures for
  810  giving notice by electronic transmission and rules providing for
  811  the secrecy of ballots. Elections shall be decided by a
  812  plurality of ballots cast. There is no quorum requirement;
  813  however, at least 20 percent of the eligible voters must cast a
  814  ballot in order to have a valid election. A unit owner may not
  815  authorize any other person to vote his or her ballot, and any
  816  ballots improperly cast are invalid. A unit owner who violates
  817  this provision may be fined by the association in accordance
  818  with s. 718.303. A unit owner who needs assistance in casting
  819  the ballot for the reasons stated in s. 101.051 may obtain such
  820  assistance. The regular election must occur on the date of the
  821  annual meeting. Notwithstanding this sub-subparagraph, an
  822  election is not required unless more candidates file notices of
  823  intent to run or are nominated than board vacancies exist.
  824         b. Within 90 days after being elected or appointed to the
  825  board of an association of a residential condominium, each newly
  826  elected or appointed director shall do both of the following:
  827         (I) Certify in writing to the secretary of the association
  828  that he or she has read the association’s declaration of
  829  condominium, articles of incorporation, bylaws, and current
  830  written policies; that he or she will work to uphold such
  831  documents and policies to the best of his or her ability; and
  832  that he or she will faithfully discharge his or her fiduciary
  833  responsibility to the association’s members. In lieu of this
  834  written certification, within 90 days after being elected or
  835  appointed to the board, the newly elected or appointed director
  836  may
  837         (II) Submit a certificate of having satisfactorily
  838  completed the educational curriculum administered by a division
  839  approved condominium education provider within 1 year before or
  840  90 days after the date of election or appointment. The written
  841  certification and or educational certificate are is valid and do
  842  does not have to be resubmitted as long as the director serves
  843  on the board without interruption.
  844  
  845  A director of an association of a residential condominium who
  846  fails to timely file the written certification and or
  847  educational certificate is suspended from service on the board
  848  until he or she complies with this sub-subparagraph. The board
  849  may temporarily fill the vacancy during the period of
  850  suspension. The secretary shall require cause the association to
  851  retain a director’s written certification and or educational
  852  certificate for inspection by the members for 5 years after a
  853  director’s election or the duration of the director’s
  854  uninterrupted tenure, whichever is longer. Failure to have such
  855  written certification and or educational certificate on file
  856  does not affect the validity of any board action.
  857         c. Any challenge to the election process must be commenced
  858  within 60 days after the election results are announced.
  859         5. Any approval by unit owners called for by this chapter
  860  or the applicable declaration or bylaws, including, but not
  861  limited to, the approval requirement in s. 718.111(8), must be
  862  made at a duly noticed meeting of unit owners and is subject to
  863  all requirements of this chapter or the applicable condominium
  864  documents relating to unit owner decisionmaking, except that
  865  unit owners may take action by written agreement, without
  866  meetings, on matters for which action by written agreement
  867  without meetings is expressly allowed by the applicable bylaws
  868  or declaration or any law that provides for such action.
  869         6. Unit owners may waive notice of specific meetings if
  870  allowed by the applicable bylaws or declaration or any law.
  871  Notice of meetings of the board of administration, unit owner
  872  meetings, except unit owner meetings called to recall board
  873  members under paragraph (j), and committee meetings may be given
  874  by electronic transmission to unit owners who consent to receive
  875  notice by electronic transmission. A unit owner who consents to
  876  receiving notices by electronic transmission is solely
  877  responsible for removing or bypassing filters that block receipt
  878  of mass e-mails sent to members on behalf of the association in
  879  the course of giving electronic notices.
  880         7. Unit owners have the right to participate in meetings of
  881  unit owners with reference to all designated agenda items.
  882  However, the association may adopt reasonable rules governing
  883  the frequency, duration, and manner of unit owner participation.
  884         8. A unit owner may tape record or videotape a meeting of
  885  the unit owners subject to reasonable rules adopted by the
  886  division.
  887         9. Unless otherwise provided in the bylaws, any vacancy
  888  occurring on the board before the expiration of a term may be
  889  filled by the affirmative vote of the majority of the remaining
  890  directors, even if the remaining directors constitute less than
  891  a quorum, or by the sole remaining director. In the alternative,
  892  a board may hold an election to fill the vacancy, in which case
  893  the election procedures must conform to sub-subparagraph 4.a.
  894  unless the association governs 10 units or fewer and has opted
  895  out of the statutory election process, in which case the bylaws
  896  of the association control. Unless otherwise provided in the
  897  bylaws, a board member appointed or elected under this section
  898  shall fill the vacancy for the unexpired term of the seat being
  899  filled. Filling vacancies created by recall is governed by
  900  paragraph (j) and rules adopted by the division.
  901         10. This chapter does not limit the use of general or
  902  limited proxies, require the use of general or limited proxies,
  903  or require the use of a written ballot or voting machine for any
  904  agenda item or election at any meeting of a timeshare
  905  condominium association or nonresidential condominium
  906  association.
  907  
  908  Notwithstanding subparagraph (b)2. and sub-subparagraph 4.a., an
  909  association of 10 or fewer units may, by affirmative vote of a
  910  majority of the total voting interests, provide for different
  911  voting and election procedures in its bylaws, which may be by a
  912  proxy specifically delineating the different voting and election
  913  procedures. The different voting and election procedures may
  914  provide for elections to be conducted by limited or general
  915  proxy.
  916         (f) Annual budget.—
  917         1. The proposed annual budget of estimated revenues and
  918  expenses must be detailed and must show the amounts budgeted by
  919  accounts and expense classifications, including, at a minimum,
  920  any applicable expenses listed in s. 718.504(21). The board
  921  shall adopt the annual budget at least 14 days prior to the
  922  start of the association’s fiscal year. In the event that the
  923  board fails to timely adopt the annual budget a second time, it
  924  shall be deemed a minor violation and the prior year’s budget
  925  shall continue in effect until a new budget is adopted. A
  926  multicondominium association shall adopt a separate budget of
  927  common expenses for each condominium the association operates
  928  and shall adopt a separate budget of common expenses for the
  929  association. In addition, if the association maintains limited
  930  common elements with the cost to be shared only by those
  931  entitled to use the limited common elements as provided for in
  932  s. 718.113(1), the budget or a schedule attached to it must show
  933  the amount budgeted for this maintenance. If, after turnover of
  934  control of the association to the unit owners, any of the
  935  expenses listed in s. 718.504(21) are not applicable, they need
  936  not be listed.
  937         2.a. In addition to annual operating expenses, the budget
  938  must include reserve accounts for capital expenditures and
  939  deferred maintenance. These accounts must include, but are not
  940  limited to, the maintenance and replacement of the condominium
  941  property identified in s. 718.301(4)(p) which are the
  942  maintenance responsibility of the association pursuant to the
  943  declaration roof replacement, building painting, and pavement
  944  resurfacing, regardless of the amount of deferred maintenance
  945  expense or replacement cost, and any other item that has a
  946  deferred maintenance expense or replacement cost that exceeds
  947  $10,000. The amount to be reserved must be computed using a
  948  formula based upon estimated remaining useful life and estimated
  949  replacement cost or deferred maintenance expense of each reserve
  950  item. The association may adjust replacement reserve assessments
  951  annually to take into account any changes in estimates or
  952  extension of the useful life of a reserve item caused by
  953  deferred maintenance. This subsection does not apply to an
  954  adopted budget in which the members of an association have
  955  determined, by a two-thirds majority vote of all the voting
  956  interests, voting in person or by proxy at a duly called meeting
  957  of the association, to provide no reserves or less reserves than
  958  required by this subsection. An annual budget adopted on or
  959  after January 1, 2024, must, at minimum:
  960         (I) Identify all items for which reserves are or will be
  961  established;
  962         (II) Provide an estimate of the maintenance, repair, and
  963  replacement costs for the structural components for which an
  964  estimate of useful life may be determined;
  965         (III) Identify any structural component for which a reserve
  966  account is not established or reserves are not funded, because
  967  the useful life of the component cannot be determined;
  968         (IV) As of the beginning of the fiscal year for which the
  969  budget is prepared, identify the estimated current amount of
  970  accumulated funds for each reserve component or, if the pooling
  971  method is used, the estimated current amount of the accumulated
  972  pooled funds;
  973         (V)Provide a description of the manner in which the
  974  association plans to fund reserves, including the use of regular
  975  assessments, special assessments, and any other alternative
  976  funding method; and
  977         (VI) Provide a description of the procedures used for
  978  estimating the funding of reserves pursuant to this paragraph,
  979  including, as applicable, the identity of any independent third
  980  party who conducted the reserve study on behalf of the
  981  association and the extent to which the association is funding
  982  its reserve obligations consistent with the reserve study
  983  currently in effect.
  984         b. Before turnover of control of an association by a
  985  developer to unit owners other than a developer pursuant to s.
  986  718.301, the developer may not vote the voting interests
  987  allocated to its units to waive the reserves or reduce the
  988  funding of reserves. through the period expiring at the end of
  989  the second fiscal year after the fiscal year in which the
  990  certificate of a surveyor and mapper is recorded pursuant to s.
  991  718.104(4)(e) or an instrument that transfers title to a unit in
  992  the condominium which is not accompanied by a recorded
  993  assignment of developer rights in favor of the grantee of such
  994  unit is recorded, whichever occurs first, after which time
  995  Reserves may be waived or reduced only upon the vote of two
  996  thirds a majority of all nondeveloper voting interests, voting
  997  in person or by limited proxy at a duly called meeting of the
  998  association. If a meeting of the unit owners has been called to
  999  determine whether to waive or reduce the funding of reserves and
 1000  no such result is achieved or a quorum is not attained, the
 1001  reserves included in the budget shall go into effect. After the
 1002  turnover, the developer may vote its voting interest to waive or
 1003  reduce the funding of reserves.
 1004         3. Effective January 1, 2024, an association with a
 1005  residential condominium building that is three stories or more
 1006  in height and subject to the milestone inspection requirements
 1007  in s. 553.899 must conduct a study of the amount of reserve
 1008  funds needed to fund reserves for the maintenance, repair,
 1009  replacement, and restoration of the condominium property. The
 1010  reserve study must be conducted at least every 5 years. The
 1011  board shall review the results of such study at least annually
 1012  to determine if reserves are sufficient to meet the
 1013  association’s reserve obligations and to make any adjustments
 1014  the board deems necessary to maintain reserves, as appropriate.
 1015  The division shall adopt rules setting forth uniform financial
 1016  standards and forms for reserve studies. The reserve study must
 1017  include, without limitation:
 1018         a.A visual inspection by a licensed architect, engineer,
 1019  or other independent professional with demonstrated experience
 1020  or knowledge preparing reserve studies for the purpose of
 1021  estimating the useful life and estimated replacement cost or
 1022  deferred maintenance expense. The visual inspection shall be
 1023  performed on or before January 1, 2024, and at least once every
 1024  10 years thereafter. The inspection may be the milestone
 1025  inspection required under s. 553.899;
 1026         b. A summary of any inspection of the major components of
 1027  the condominium property identified in sub-subparagraph a. and
 1028  any other portion of the condominium property for which the
 1029  association is required to establish a reserve account or
 1030  accounts;
 1031         c.If applicable, a summary of the findings and
 1032  recommendations of the milestone inspection report required
 1033  under s. 553.899 and any other structural or life safety
 1034  inspection of the condominium property considered in the reserve
 1035  study;
 1036         dAn identification of the structural components of the
 1037  building for which necessary reserves may be reasonably
 1038  projected and an identification of the structural components of
 1039  the building with an indefinite useful life for which a
 1040  reasonable determination of necessary reserves may not be
 1041  estimated;
 1042         e. An estimate of the useful life of the structural
 1043  components of the building identified in sub-subparagraph a. for
 1044  which an estimate of useful life may be determined as attested
 1045  to by a licensed architect or engineer in the turnover
 1046  inspection required under s. 718.301(4)(p), a milestone
 1047  inspection, or any other structural or life safety inspection of
 1048  the condominium property by a licensed architect or engineer,
 1049  whichever is most recent;
 1050         f. An estimate of the remaining useful life of any other
 1051  portion of the condominium property for which the association is
 1052  required to establish a reserve account or accounts;
 1053         g. An estimate of the cost of maintenance, repair,
 1054  replacement, or restoration of each major component of the
 1055  condominium property identified in s. 718.301(4)(p) and any
 1056  other portion of the condominium property identified pursuant to
 1057  sub-subparagraph d.;
 1058         h. An estimate of the total annual assessment that may be
 1059  necessary to cover the cost of maintaining, repairing,
 1060  replacing, or restoring the major components of the condominium
 1061  property identified in sub-subparagraph a. and any other portion
 1062  of the condominium property identified pursuant to sub
 1063  subparagraph f.;
 1064         i.A description of the funding plan, including any
 1065  alternative funding method, to provide adequate funding for the
 1066  required reserves; and
 1067         j.A schedule for the full funding of reserves. A reserve
 1068  account is fully funded when the actual or projected reserve
 1069  balance in the reserve account is equal in direct proportion to
 1070  the fraction of useful life that has expired for a given
 1071  component or components multiplied by the current replacement
 1072  costs for the component or components.
 1073         4.3. Reserve funds and any interest accruing thereon shall
 1074  remain in the reserve account or accounts, and may be used only
 1075  for authorized reserve expenditures unless their use for other
 1076  purposes is approved in advance by a two-thirds majority vote of
 1077  all voting interests, voting in person or by limited proxy at a
 1078  duly called meeting of the association; provided that the use of
 1079  reserve funds for a purpose other than authorized reserve
 1080  expenditures is authorized in the exercise of the association’s
 1081  emergency powers under s. 718.1265. Before turnover of control
 1082  of an association by a developer to unit owners other than the
 1083  developer pursuant to s. 718.301, the developer-controlled
 1084  association may not vote to use reserves for purposes other than
 1085  those for which they were intended without the approval of two
 1086  thirds a majority of all nondeveloper voting interests, voting
 1087  in person or by limited proxy at a duly called meeting of the
 1088  association.
 1089         5.a.4. The only voting interests that are eligible to vote
 1090  on questions that involve waiving or reducing the funding of
 1091  reserves, or using existing reserve funds for purposes other
 1092  than purposes for which the reserves were intended, are the
 1093  voting interests of the units subject to assessment to fund the
 1094  reserves in question. Proxy questions relating to waiving or
 1095  reducing the funding of reserves or using existing reserve funds
 1096  for purposes other than purposes for which the reserves were
 1097  intended must contain the following statement in capitalized,
 1098  bold letters in a font size larger than any other used on the
 1099  face of the proxy ballot: WAIVING OF RESERVES, IN WHOLE OR IN
 1100  PART, OR ALLOWING ALTERNATIVE USES OF EXISTING RESERVES MAY
 1101  RESULT IN UNIT OWNER LIABILITY FOR PAYMENT OF UNANTICIPATED
 1102  SPECIAL ASSESSMENTS REGARDING THOSE ITEMS.
 1103         b. If the association has voted to waive reserves or to use
 1104  existing reserve funds for purposes other than the purposes for
 1105  which the reserves were intended, the budget must contain the
 1106  following statement in conspicuous type: THE OWNERS HAVE ELECTED
 1107  TO WAIVE RESERVES, IN WHOLE OR IN PART, OR ALLOWED ALTERNATIVE
 1108  USES OF EXISTING RESERVES UNDER SECTION 718.112(2)(f), FLORIDA
 1109  STATUTES. THE WAIVING OR ALTERNATIVE USE OF RESERVE FUNDS MAY
 1110  RESULT IN UNIT OWNER LIABILITY FOR PAYMENT OF UNANTICIPATED
 1111  SPECIAL ASSESSMENTS REGARDING THOSE ITEMS.
 1112         c. On or after January 1, 2026, if the association is
 1113  required to perform a reserve study under this paragraph and the
 1114  budget of the association does not fund the association’s
 1115  reserve obligations consistent with the reserve study currently
 1116  in effect, the budget must also contain the following statement
 1117  in conspicuous type: THE ASSOCIATION’S LAST RESERVE STUDY IS
 1118  DATED ..... THE RESERVE AMOUNT BUDGETED AND/OR COLLECTED IS LESS
 1119  THAN REQUIRED BY THE RESERVE STUDY SCHEDULE. FAILURE TO FUND
 1120  RESERVES CONSISTENT WITH THE ASSOCIATION’S RESERVE STUDY MAY
 1121  RESULT IN UNANTICIPATED SPECIAL ASSESSMENTS REGARDING THOSE
 1122  ITEMS.
 1123         (p)Mandatory milestone inspections.—If an association is
 1124  required to have a milestone inspection performed pursuant to s.
 1125  553.899, the association must arrange for the milestone
 1126  inspection to be performed and is responsible for ensuring
 1127  compliance with the requirements of s. 553.899. The association
 1128  is responsible for all costs associated with the inspection. If
 1129  the officers or directors of an association willfully and
 1130  knowingly fail to have a milestone inspection performed pursuant
 1131  to s. 553.899, such failure is a breach of the officers’ and
 1132  directors fiduciary relationship to the unit owners under s.
 1133  718.111(1)(a). Upon completion of a phase one or phase two
 1134  milestone inspection and receipt of the inspector-prepared
 1135  summary of the inspection report from the architect or engineer
 1136  who performed the inspection, the association must distribute a
 1137  copy of the inspector-prepared summary of the inspection report
 1138  to each unit owner, regardless of the findings or
 1139  recommendations in the report, by United States mail or personal
 1140  delivery and by electronic transmission to unit owners who
 1141  previously consented to receive notice by electronic
 1142  transmission; must post a copy of the inspector-prepared summary
 1143  in a conspicuous place on the condominium property; and must
 1144  publish the full report and inspector-prepared summary on the
 1145  association’s website, if the association is required to have a
 1146  website.
 1147         Section 7. Present subsections (4) through (9) of section
 1148  718.113, Florida Statutes, are redesignated as subsections (5)
 1149  through (10), respectively, a new subsection (4) is added to
 1150  that section, and subsections (1) and (2) of that section are
 1151  amended, to read:
 1152         718.113 Maintenance; limitation upon improvement; display
 1153  of flag; hurricane shutters and protection; display of religious
 1154  decorations.—
 1155         (1) Maintenance of the common elements is the
 1156  responsibility of the association, except for any maintenance
 1157  responsibility for limited common elements assigned to the unit
 1158  owner by the declaration. The association shall provide for the
 1159  maintenance, repair, and replacement of the condominium property
 1160  for which it bears responsibility. After turnover of control of
 1161  the association to the unit owners, the association must perform
 1162  any required maintenance identified by the developer pursuant to
 1163  s. 718.301(4)(p) until the association obtains new maintenance
 1164  protocols from a licensed professional engineer or architect.
 1165  The declaration may provide that certain limited common elements
 1166  shall be maintained by those entitled to use the limited common
 1167  elements or that the association shall provide the maintenance,
 1168  either as a common expense or with the cost shared only by those
 1169  entitled to use the limited common elements. If the maintenance
 1170  is to be by the association at the expense of only those
 1171  entitled to use the limited common elements, the declaration
 1172  shall describe in detail the method of apportioning such costs
 1173  among those entitled to use the limited common elements, and the
 1174  association may use the provisions of s. 718.116 to enforce
 1175  payment of the shares of such costs by the unit owners entitled
 1176  to use the limited common elements.
 1177         (2)(a) Except as otherwise provided in this section, there
 1178  shall be no material alteration or substantial additions to the
 1179  common elements or to real property which is association
 1180  property, except in a manner provided in the declaration as
 1181  originally recorded or as amended under the procedures provided
 1182  therein. If the declaration as originally recorded or as amended
 1183  under the procedures provided therein does not specify the
 1184  procedure for approval of material alterations or substantial
 1185  additions, 75 percent of the total voting interests of the
 1186  association must approve the alterations or additions before the
 1187  material alterations or substantial additions are commenced.
 1188  This paragraph is intended to clarify existing law and applies
 1189  to associations existing on July 1, 2018.
 1190         (b) There shall not be any material alteration of, or
 1191  substantial addition to, the common elements of any condominium
 1192  operated by a multicondominium association unless approved in
 1193  the manner provided in the declaration of the affected
 1194  condominium or condominiums as originally recorded or as amended
 1195  under the procedures provided therein. If a declaration as
 1196  originally recorded or as amended under the procedures provided
 1197  therein does not specify a procedure for approving such an
 1198  alteration or addition, the approval of 75 percent of the total
 1199  voting interests of each affected condominium is required before
 1200  the material alterations or substantial additions are commenced.
 1201  This subsection does not prohibit a provision in any
 1202  declaration, articles of incorporation, or bylaws as originally
 1203  recorded or as amended under the procedures provided therein
 1204  requiring the approval of unit owners in any condominium
 1205  operated by the same association or requiring board approval
 1206  before a material alteration or substantial addition to the
 1207  common elements is permitted. This paragraph is intended to
 1208  clarify existing law and applies to associations existing on
 1209  July 1, 2018.
 1210         (c) There shall not be any material alteration or
 1211  substantial addition made to association real property operated
 1212  by a multicondominium association, except as provided in the
 1213  declaration, articles of incorporation, or bylaws as originally
 1214  recorded or as amended under the procedures provided therein. If
 1215  the declaration, articles of incorporation, or bylaws as
 1216  originally recorded or as amended under the procedures provided
 1217  therein do not specify the procedure for approving an alteration
 1218  or addition to association real property, the approval of 75
 1219  percent of the total voting interests of the association is
 1220  required before the material alterations or substantial
 1221  additions are commenced. This paragraph is intended to clarify
 1222  existing law and applies to associations existing on July 1,
 1223  2018.
 1224         (d) The necessary maintenance, repair, or replacement of
 1225  condominium property is not a material alteration or substantial
 1226  addition requiring unit owner approval.
 1227         (4) The association is not liable for alternative housing
 1228  costs, lost rent, or other expenses if a unit must be vacated in
 1229  whole or in part or if access to a common element is denied for
 1230  necessary maintenance, repair, or replacement of condominium
 1231  property.
 1232         Section 8. Subsections (1) and (5) of section 718.1255,
 1233  Florida Statutes, are amended to read:
 1234         718.1255 Alternative dispute resolution; mediation;
 1235  nonbinding arbitration; applicability.—
 1236         (1) DEFINITIONS.—As used in this section, the term
 1237  “dispute” means any disagreement between two or more parties
 1238  that involves:
 1239         (a) The authority of the board of directors, under this
 1240  chapter or association document, to:
 1241         1. Require any owner to take any action, or not to take any
 1242  action, involving that owner’s unit or the appurtenances
 1243  thereto.
 1244         2. Alter or add to a common area or element.
 1245         (b) The failure of a governing body, when required by this
 1246  chapter or an association document, to:
 1247         1. Properly conduct elections.
 1248         2. Give adequate notice of meetings or other actions.
 1249         3. Properly conduct meetings.
 1250         4. Allow inspection of books and records.
 1251         (c) A plan of termination pursuant to s. 718.117.
 1252         (d) The failure of a governing body, when required by this
 1253  chapter or an association document, to:
 1254         1. Perform a structural or life safety inspection,
 1255  including the milestone inspection required under s. 553.899.
 1256         2. Perform a reserve study as required by law or the
 1257  declaration, articles of incorporation, or bylaws.
 1258         3. Fund reserves as required by law or the declaration,
 1259  articles of incorporation, or bylaws.
 1260         4. Make or provide necessary maintenance or repairs of
 1261  condominium property.
 1262  
 1263  “Dispute” does not include any disagreement that primarily
 1264  involves: title to any unit or common element; the
 1265  interpretation or enforcement of any warranty; the levy of a fee
 1266  or assessment, or the collection of an assessment levied against
 1267  a party; the eviction or other removal of a tenant from a unit;
 1268  alleged breaches of fiduciary duty by one or more directors; or
 1269  claims for damages to a unit based upon the alleged failure of
 1270  the association to maintain the common elements or condominium
 1271  property.
 1272         (5) PRESUIT MEDIATION.—In lieu of the initiation of
 1273  nonbinding arbitration as provided in subsections (1)-(4), a
 1274  party may submit a dispute to presuit mediation in accordance
 1275  with s. 720.311; however, election and recall disputes are not
 1276  eligible for mediation and such disputes must be arbitrated by
 1277  the division or filed in a court of competent jurisdiction.
 1278  Disputes identified in paragraph (1)(d) are not subject to
 1279  nonbinding arbitration under subsections (1)-(4) and must be
 1280  submitted to presuit mediation in accordance with s. 720.311.
 1281         Section 9. Paragraph (p) of subsection (4) of section
 1282  718.301, Florida Statutes, is amended, and paragraph (r) is
 1283  added to that subsection, to read:
 1284         718.301 Transfer of association control; claims of defect
 1285  by association.—
 1286         (4) At the time that unit owners other than the developer
 1287  elect a majority of the members of the board of administration
 1288  of an association, the developer shall relinquish control of the
 1289  association, and the unit owners shall accept control.
 1290  Simultaneously, or for the purposes of paragraph (c) not more
 1291  than 90 days thereafter, the developer shall deliver to the
 1292  association, at the developer’s expense, all property of the
 1293  unit owners and of the association which is held or controlled
 1294  by the developer, including, but not limited to, the following
 1295  items, if applicable, as to each condominium operated by the
 1296  association:
 1297         (p) Notwithstanding when the certificate of occupancy was
 1298  issued or the height of the building, a milestone inspection
 1299  report in compliance with s. 553.899 included in the official
 1300  records, under seal of an architect or engineer authorized to
 1301  practice in this state, and attesting to required maintenance,
 1302  condition, useful life, and replacement costs of the following
 1303  applicable condominium property common elements comprising a
 1304  turnover inspection report:
 1305         1. Roof.
 1306         2. Structure, including load-bearing walls and primary
 1307  structural members and primary structural systems as those terms
 1308  are defined in s. 627.706.
 1309         3. Fireproofing and fire protection systems.
 1310         4. Elevators.
 1311         5. Heating and cooling systems.
 1312         6. Plumbing.
 1313         7. Electrical systems.
 1314         8. Swimming pool or spa and equipment.
 1315         9. Seawalls.
 1316         10. Pavement and parking areas.
 1317         11. Drainage systems.
 1318         12. Painting.
 1319         13. Irrigation systems.
 1320         14. Waterproofing.
 1321         (r)A copy of the most recent reserve study required under
 1322  s. 718.112(2)(f)3., along with the statements indicating the
 1323  status of the reserves required under s. 718.112(2)(f)5., if
 1324  applicable, or a statement in conspicuous type indicating that
 1325  the association has not completed the required reserve study or
 1326  that the association is not required to perform a reserve study,
 1327  as applicable.
 1328         Section 10. Subsection (3) is added to section 718.501,
 1329  Florida Statutes, to read:
 1330         718.501 Authority, responsibility, and duties of Division
 1331  of Florida Condominiums, Timeshares, and Mobile Homes.—
 1332         (3)(a)On or before January 1, 2023, condominium
 1333  associations existing on or before July 1, 2022, must provide
 1334  the following information to the division in writing, by e-mail,
 1335  United States Postal Service, commercial delivery service, or
 1336  hand delivery, at a physical address or e-mail address provided
 1337  by the division and on a form posted on the division’s website:
 1338         1.The number of buildings on the condominium property that
 1339  are three stories or higher in height.
 1340         2.The total number of units in all such buildings.
 1341         3.The addresses of all such buildings.
 1342         4.The counties in which all such buildings are located.
 1343         (b)The division must compile a list of the number of
 1344  buildings on condominium property that are three stories or
 1345  higher in height, which is searchable by county, and must post
 1346  the list on the division’s website. This list must include all
 1347  of the following information:
 1348         1.The name of each association with buildings on the
 1349  condominium property that are three stories or higher in height.
 1350         2.The number of such buildings on each association’s
 1351  property.
 1352         3.The addresses of all such buildings.
 1353         4.The counties in which all such buildings are located.
 1354         (c)An association must provide an update in writing to the
 1355  division if there are any changes to the information in the list
 1356  under paragraph (b) within 6 months after the change.
 1357         Section 11. Present paragraphs (b) and (c) of subsection
 1358  (2) of section 718.503, Florida Statutes, are redesignated as
 1359  paragraphs (c) and (d), respectively, a new paragraph (b) is
 1360  added to that subsection, and paragraph (b) of subsection (1)
 1361  and paragraph (a) of subsection (2) of that section are amended,
 1362  to read:
 1363         718.503 Developer disclosure prior to sale; nondeveloper
 1364  unit owner disclosure prior to sale; voidability.—
 1365         (1) DEVELOPER DISCLOSURE.—
 1366         (b) Copies of documents to be furnished to prospective
 1367  buyer or lessee.—Until such time as the developer has furnished
 1368  the documents listed below to a person who has entered into a
 1369  contract to purchase a residential unit or lease it for more
 1370  than 5 years, the contract may be voided by that person,
 1371  entitling the person to a refund of any deposit together with
 1372  interest thereon as provided in s. 718.202. The contract may be
 1373  terminated by written notice from the proposed buyer or lessee
 1374  delivered to the developer within 15 days after the buyer or
 1375  lessee receives all of the documents required by this section.
 1376  The developer may not close for 15 days after following the
 1377  execution of the agreement and delivery of the documents to the
 1378  buyer as evidenced by a signed receipt for documents unless the
 1379  buyer is informed in the 15-day voidability period and agrees to
 1380  close before prior to the expiration of the 15 days. The
 1381  developer shall retain in his or her records a separate
 1382  agreement signed by the buyer as proof of the buyer’s agreement
 1383  to close before prior to the expiration of the said voidability
 1384  period. The developer must retain such Said proof shall be
 1385  retained for a period of 5 years after the date of the closing
 1386  of the transaction. The documents to be delivered to the
 1387  prospective buyer are the prospectus or disclosure statement
 1388  with all exhibits, if the development is subject to the
 1389  provisions of s. 718.504, or, if not, then copies of the
 1390  following which are applicable:
 1391         1. The question and answer sheet described in s. 718.504,
 1392  and declaration of condominium, or the proposed declaration if
 1393  the declaration has not been recorded, which shall include the
 1394  certificate of a surveyor approximately representing the
 1395  locations required by s. 718.104.
 1396         2. The documents creating the association.
 1397         3. The bylaws.
 1398         4. The ground lease or other underlying lease of the
 1399  condominium.
 1400         5. The management contract, maintenance contract, and other
 1401  contracts for management of the association and operation of the
 1402  condominium and facilities used by the unit owners having a
 1403  service term in excess of 1 year, and any management contracts
 1404  that are renewable.
 1405         6. The estimated operating budget for the condominium and a
 1406  schedule of expenses for each type of unit, including fees
 1407  assessed pursuant to s. 718.113(1) for the maintenance of
 1408  limited common elements where such costs are shared only by
 1409  those entitled to use the limited common elements.
 1410         7. The lease of recreational and other facilities that will
 1411  be used only by unit owners of the subject condominium.
 1412         8. The lease of recreational and other common facilities
 1413  that will be used by unit owners in common with unit owners of
 1414  other condominiums.
 1415         9. The form of unit lease if the offer is of a leasehold.
 1416         10. Any declaration of servitude of properties serving the
 1417  condominium but not owned by unit owners or leased to them or
 1418  the association.
 1419         11. If the development is to be built in phases or if the
 1420  association is to manage more than one condominium, a
 1421  description of the plan of phase development or the arrangements
 1422  for the association to manage two or more condominiums.
 1423         12. If the condominium is a conversion of existing
 1424  improvements, the statements and disclosure required by s.
 1425  718.616.
 1426         13. The form of agreement for sale or lease of units.
 1427         14. A copy of the floor plan of the unit and the plot plan
 1428  showing the location of the residential buildings and the
 1429  recreation and other common areas.
 1430         15. A copy of all covenants and restrictions that which
 1431  will affect the use of the property and which are not contained
 1432  in the foregoing.
 1433         16. If the developer is required by state or local
 1434  authorities to obtain acceptance or approval of any dock or
 1435  marina facilities intended to serve the condominium, a copy of
 1436  any such acceptance or approval acquired by the time of filing
 1437  with the division under s. 718.502(1), or a statement that such
 1438  acceptance or approval has not been acquired or received.
 1439         17. Evidence demonstrating that the developer has an
 1440  ownership, leasehold, or contractual interest in the land upon
 1441  which the condominium is to be developed.
 1442         18.A copy of the most recent reserve study required under
 1443  s. 718.112(2)(f)3., along with the statements in the budget
 1444  indicating the status of the reserves required under s.
 1445  718.112(2)(f)5., if applicable, or a statement in conspicuous
 1446  type indicating that the association has not completed the
 1447  required reserve study or that the association is not required
 1448  to perform a reserve study, as applicable.
 1449         19. A copy of the inspector-prepared summary of the
 1450  milestone inspection report as described in ss. 553.899 and
 1451  718.301(4)(p).
 1452         (2) NONDEVELOPER DISCLOSURE.—
 1453         (a) Each unit owner who is not a developer as defined by
 1454  this chapter must shall comply with the provisions of this
 1455  subsection before prior to the sale of his or her unit. Each
 1456  prospective purchaser who has entered into a contract for the
 1457  purchase of a condominium unit is entitled, at the seller’s
 1458  expense, to a current copy of all of the following:
 1459         1. The declaration of condominium.,
 1460         2. Articles of incorporation of the association.,
 1461         3. Bylaws and rules of the association.,
 1462         4. Financial information required by s. 718.111.,
 1463         5.A copy of the most recent reserve study required under
 1464  s. 718.112(2)(f)3., along with the statements in the budget
 1465  indicating the status of the reserves required under s.
 1466  718.112(2)(f)5., if applicable, or a statement in conspicuous
 1467  type indicating that the association has not completed the
 1468  required reserve study or that the association is not required
 1469  to perform a reserve study, as applicable.
 1470         6. A copy of the inspector-prepared summary of the
 1471  milestone inspection report as described in ss. 553.899 and
 1472  718.301(4)(p).
 1473         7.and The document entitled “Frequently Asked Questions
 1474  and Answers” required by s. 718.504.
 1475         (b)On and after January 1, 2009, The prospective purchaser
 1476  is shall also be entitled to receive from the seller a copy of a
 1477  governance form. Such form shall be provided by the division
 1478  summarizing governance of condominium associations. In addition
 1479  to such other information as the division considers helpful to a
 1480  prospective purchaser in understanding association governance,
 1481  the governance form shall address the following subjects:
 1482         1. The role of the board in conducting the day-to-day
 1483  affairs of the association on behalf of, and in the best
 1484  interests of, the owners.
 1485         2. The board’s responsibility to provide advance notice of
 1486  board and membership meetings.
 1487         3. The rights of owners to attend and speak at board and
 1488  membership meetings.
 1489         4. The responsibility of the board and of owners with
 1490  respect to maintenance of the condominium property.
 1491         5. The responsibility of the board and owners to abide by
 1492  the condominium documents, this chapter, rules adopted by the
 1493  division, and reasonable rules adopted by the board.
 1494         6. Owners’ rights to inspect and copy association records
 1495  and the limitations on such rights.
 1496         7. Remedies available to owners with respect to actions by
 1497  the board which may be abusive or beyond the board’s power and
 1498  authority.
 1499         8. The right of the board to hire a property management
 1500  firm, subject to its own primary responsibility for such
 1501  management.
 1502         9. The responsibility of owners with regard to payment of
 1503  regular or special assessments necessary for the operation of
 1504  the property and the potential consequences of failure to pay
 1505  such assessments.
 1506         10. The voting rights of owners.
 1507         11. Rights and obligations of the board in enforcement of
 1508  rules in the condominium documents and rules adopted by the
 1509  board.
 1510  
 1511  The governance form shall also include the following statement
 1512  in conspicuous type: “This publication is intended as an
 1513  informal educational overview of condominium governance. In the
 1514  event of a conflict, the provisions of chapter 718, Florida
 1515  Statutes, rules adopted by the Division of Florida Condominiums,
 1516  Timeshares, and Mobile Homes of the Department of Business and
 1517  Professional Regulation, the provisions of the condominium
 1518  documents, and reasonable rules adopted by the condominium
 1519  association’s board of administration prevail over the contents
 1520  of this publication.”
 1521         Section 12. Paragraph (f) of subsection (24) of section
 1522  718.504, Florida Statutes, is amended, and paragraph (q) is
 1523  added to that subsection, to read:
 1524         718.504 Prospectus or offering circular.—Every developer of
 1525  a residential condominium which contains more than 20
 1526  residential units, or which is part of a group of residential
 1527  condominiums which will be served by property to be used in
 1528  common by unit owners of more than 20 residential units, shall
 1529  prepare a prospectus or offering circular and file it with the
 1530  Division of Florida Condominiums, Timeshares, and Mobile Homes
 1531  prior to entering into an enforceable contract of purchase and
 1532  sale of any unit or lease of a unit for more than 5 years and
 1533  shall furnish a copy of the prospectus or offering circular to
 1534  each buyer. In addition to the prospectus or offering circular,
 1535  each buyer shall be furnished a separate page entitled
 1536  “Frequently Asked Questions and Answers,” which shall be in
 1537  accordance with a format approved by the division and a copy of
 1538  the financial information required by s. 718.111. This page
 1539  shall, in readable language, inform prospective purchasers
 1540  regarding their voting rights and unit use restrictions,
 1541  including restrictions on the leasing of a unit; shall indicate
 1542  whether and in what amount the unit owners or the association is
 1543  obligated to pay rent or land use fees for recreational or other
 1544  commonly used facilities; shall contain a statement identifying
 1545  that amount of assessment which, pursuant to the budget, would
 1546  be levied upon each unit type, exclusive of any special
 1547  assessments, and which shall further identify the basis upon
 1548  which assessments are levied, whether monthly, quarterly, or
 1549  otherwise; shall state and identify any court cases in which the
 1550  association is currently a party of record in which the
 1551  association may face liability in excess of $100,000; and which
 1552  shall further state whether membership in a recreational
 1553  facilities association is mandatory, and if so, shall identify
 1554  the fees currently charged per unit type. The division shall by
 1555  rule require such other disclosure as in its judgment will
 1556  assist prospective purchasers. The prospectus or offering
 1557  circular may include more than one condominium, although not all
 1558  such units are being offered for sale as of the date of the
 1559  prospectus or offering circular. The prospectus or offering
 1560  circular must contain the following information:
 1561         (24) Copies of the following, to the extent they are
 1562  applicable, shall be included as exhibits:
 1563         (f) The estimated operating budget for the condominium and
 1564  the required schedule of unit owners’ expenses, and the most
 1565  recent reserve study required under s. 718.112(2)(f)3., along
 1566  with the statements in the budget indicating the status of the
 1567  reserves required under s. 718.112(2)(f)5., if applicable, or a
 1568  statement in conspicuous type indicating that the association
 1569  has not completed the required reserve study or that the
 1570  association is not required to perform a reserve study, as
 1571  applicable.
 1572         (q) A copy of the inspector-prepared summary of the
 1573  milestone inspection report as described in ss. 553.899 and
 1574  718.301(4)(p).
 1575         Section 13. Present subsections (1) through (28) of section
 1576  719.103, Florida Statutes, are redesignated as subsections (2)
 1577  through (29), respectively, and a new subsection (1) is added to
 1578  that section, to read:
 1579         719.103 Definitions.—As used in this chapter:
 1580         (1)“Alternative funding method” means an alternative to
 1581  funding a reserve account which is approved by the division and
 1582  which may reasonably be expected to fully satisfy the
 1583  association’s budgetary obligations for deferred maintenance,
 1584  capital expenditure, and any item for which reserves are
 1585  otherwise required, including, but not limited to, payments by a
 1586  developer and the incorporation into the budget of expenses for
 1587  deferred maintenance, capital expenditure, and any item for
 1588  which reserves are otherwise required. The term also includes
 1589  any other alternative approved by the division.
 1590         Section 14. Present subsections (5) through (11) of section
 1591  719.104, Florida Statutes, are redesignated as subsections (6)
 1592  through (12), respectively, a new subsection (5) is added to
 1593  that section, and paragraphs (a) and (c) of subsection (2) and
 1594  paragraph (a) of subsection (4) of that section are amended, to
 1595  read:
 1596         719.104 Cooperatives; access to units; records; financial
 1597  reports; assessments; purchase of leases.—
 1598         (2) OFFICIAL RECORDS.—
 1599         (a) From the inception of the association, the association
 1600  shall maintain a copy of each of the following, where
 1601  applicable, which shall constitute the official records of the
 1602  association:
 1603         1. The plans, permits, warranties, and other items provided
 1604  by the developer pursuant to s. 719.301(4).
 1605         2. A photocopy of the cooperative documents.
 1606         3. A copy of the current rules of the association.
 1607         4. A book or books containing the minutes of all meetings
 1608  of the association, of the board of directors, and of the unit
 1609  owners.
 1610         5. A current roster of all unit owners and their mailing
 1611  addresses, unit identifications, voting certifications, and, if
 1612  known, telephone numbers. The association shall also maintain
 1613  the e-mail addresses and the numbers designated by unit owners
 1614  for receiving notice sent by electronic transmission of those
 1615  unit owners consenting to receive notice by electronic
 1616  transmission. The e-mail addresses and numbers provided by unit
 1617  owners to receive notice by electronic transmission shall be
 1618  removed from association records when consent to receive notice
 1619  by electronic transmission is revoked. However, the association
 1620  is not liable for an erroneous disclosure of the e-mail address
 1621  or the number for receiving electronic transmission of notices.
 1622         6. All current insurance policies of the association.
 1623         7. A current copy of any management agreement, lease, or
 1624  other contract to which the association is a party or under
 1625  which the association or the unit owners have an obligation or
 1626  responsibility.
 1627         8. Bills of sale or transfer for all property owned by the
 1628  association.
 1629         9. Accounting records for the association and separate
 1630  accounting records for each unit it operates, according to good
 1631  accounting practices. The accounting records shall include, but
 1632  not be limited to:
 1633         a. Accurate, itemized, and detailed records of all receipts
 1634  and expenditures.
 1635         b. A current account and a monthly, bimonthly, or quarterly
 1636  statement of the account for each unit designating the name of
 1637  the unit owner, the due date and amount of each assessment, the
 1638  amount paid upon the account, and the balance due.
 1639         c. All audits, reviews, accounting statements, reserve
 1640  studies and reserve funding plans, and financial reports of the
 1641  association.
 1642         d. All contracts for work to be performed. Bids for work to
 1643  be performed shall also be considered official records and shall
 1644  be maintained for a period of 1 year.
 1645         10. Ballots, sign-in sheets, voting proxies, and all other
 1646  papers and electronic records relating to voting by unit owners,
 1647  which shall be maintained for a period of 1 year after the date
 1648  of the election, vote, or meeting to which the document relates.
 1649         11. All rental records where the association is acting as
 1650  agent for the rental of units.
 1651         12. A copy of the current question and answer sheet as
 1652  described in s. 719.504.
 1653         13. All affirmative acknowledgments made pursuant to s.
 1654  719.108(3)(b)3.
 1655         14. A copy of the inspection reports as described in ss.
 1656  553.899 and 719.301(4)(p) and any other inspection report
 1657  relating to a structural or life safety inspection of the
 1658  cooperative property. Such record must be maintained by the
 1659  association for 15 years after receipt of the report.
 1660         15. All other written records of the association not
 1661  specifically included in the foregoing which are related to the
 1662  operation of the association.
 1663         (c) The official records of the association are open to
 1664  inspection by any association member or the authorized
 1665  representative of such member at all reasonable times. The right
 1666  to inspect the records includes the right to make or obtain
 1667  copies, at the reasonable expense, if any, of the association
 1668  member. A renter of a unit has a right to inspect and copy only
 1669  the association’s bylaws and rules and the inspection reports
 1670  described in ss. 553.899 and 719.301(4)(p). The association may
 1671  adopt reasonable rules regarding the frequency, time, location,
 1672  notice, and manner of record inspections and copying, but may
 1673  not require a member to demonstrate any purpose or state any
 1674  reason for the inspection. The failure of an association to
 1675  provide the records within 10 working days after receipt of a
 1676  written request creates a rebuttable presumption that the
 1677  association willfully failed to comply with this paragraph. A
 1678  member who is denied access to official records is entitled to
 1679  the actual damages or minimum damages for the association’s
 1680  willful failure to comply. The minimum damages are $50 per
 1681  calendar day for up to 10 days, beginning on the 11th working
 1682  day after receipt of the written request. The failure to permit
 1683  inspection entitles any person prevailing in an enforcement
 1684  action to recover reasonable attorney fees from the person in
 1685  control of the records who, directly or indirectly, knowingly
 1686  denied access to the records. Any person who knowingly or
 1687  intentionally defaces or destroys accounting records that are
 1688  required by this chapter to be maintained during the period for
 1689  which such records are required to be maintained, or who
 1690  knowingly or intentionally fails to create or maintain
 1691  accounting records that are required to be created or
 1692  maintained, with the intent of causing harm to the association
 1693  or one or more of its members, is personally subject to a civil
 1694  penalty under s. 719.501(1)(d). The association shall maintain
 1695  an adequate number of copies of the declaration, articles of
 1696  incorporation, bylaws, and rules, and all amendments to each of
 1697  the foregoing, as well as the question and answer sheet as
 1698  described in s. 719.504 and year-end financial information
 1699  required by the department, on the cooperative property to
 1700  ensure their availability to members and prospective purchasers,
 1701  and may charge its actual costs for preparing and furnishing
 1702  these documents to those requesting the same. An association
 1703  shall allow a member or his or her authorized representative to
 1704  use a portable device, including a smartphone, tablet, portable
 1705  scanner, or any other technology capable of scanning or taking
 1706  photographs, to make an electronic copy of the official records
 1707  in lieu of the association providing the member or his or her
 1708  authorized representative with a copy of such records. The
 1709  association may not charge a member or his or her authorized
 1710  representative for the use of a portable device. Notwithstanding
 1711  this paragraph, the following records shall not be accessible to
 1712  members:
 1713         1. Any record protected by the lawyer-client privilege as
 1714  described in s. 90.502 and any record protected by the work
 1715  product privilege, including any record prepared by an
 1716  association attorney or prepared at the attorney’s express
 1717  direction which reflects a mental impression, conclusion,
 1718  litigation strategy, or legal theory of the attorney or the
 1719  association, and which was prepared exclusively for civil or
 1720  criminal litigation or for adversarial administrative
 1721  proceedings, or which was prepared in anticipation of such
 1722  litigation or proceedings until the conclusion of the litigation
 1723  or proceedings.
 1724         2. Information obtained by an association in connection
 1725  with the approval of the lease, sale, or other transfer of a
 1726  unit.
 1727         3. Personnel records of association or management company
 1728  employees, including, but not limited to, disciplinary, payroll,
 1729  health, and insurance records. For purposes of this
 1730  subparagraph, the term “personnel records” does not include
 1731  written employment agreements with an association employee or
 1732  management company, or budgetary or financial records that
 1733  indicate the compensation paid to an association employee.
 1734         4. Medical records of unit owners.
 1735         5. Social security numbers, driver license numbers, credit
 1736  card numbers, e-mail addresses, telephone numbers, facsimile
 1737  numbers, emergency contact information, addresses of a unit
 1738  owner other than as provided to fulfill the association’s notice
 1739  requirements, and other personal identifying information of any
 1740  person, excluding the person’s name, unit designation, mailing
 1741  address, property address, and any address, e-mail address, or
 1742  facsimile number provided to the association to fulfill the
 1743  association’s notice requirements. Notwithstanding the
 1744  restrictions in this subparagraph, an association may print and
 1745  distribute to unit owners a directory containing the name, unit
 1746  address, and all telephone numbers of each unit owner. However,
 1747  an owner may exclude his or her telephone numbers from the
 1748  directory by so requesting in writing to the association. An
 1749  owner may consent in writing to the disclosure of other contact
 1750  information described in this subparagraph. The association is
 1751  not liable for the inadvertent disclosure of information that is
 1752  protected under this subparagraph if the information is included
 1753  in an official record of the association and is voluntarily
 1754  provided by an owner and not requested by the association.
 1755         6. Electronic security measures that are used by the
 1756  association to safeguard data, including passwords.
 1757         7. The software and operating system used by the
 1758  association which allow the manipulation of data, even if the
 1759  owner owns a copy of the same software used by the association.
 1760  The data is part of the official records of the association.
 1761         8. All affirmative acknowledgments made pursuant to s.
 1762  719.108(3)(b)3.
 1763         (4) FINANCIAL REPORT.—
 1764         (a) Within 90 days following the end of the fiscal or
 1765  calendar year or annually on such date as provided in the bylaws
 1766  of the association, the board of administration shall prepare
 1767  and complete, or contract with a third party to prepare and
 1768  complete, a financial report covering the preceding fiscal or
 1769  calendar year. Within 21 days after the financial report is
 1770  completed by the association or received from the third party,
 1771  but no later than 120 days after the end of the fiscal year,
 1772  calendar year, or other date provided in the bylaws, the
 1773  association shall provide each member with a copy of the annual
 1774  financial report or a written notice that a copy of the
 1775  financial report is available upon request at no charge to the
 1776  member. The division shall adopt rules setting forth uniform
 1777  accounting principles, standards, and reporting requirements.
 1778  The rules must include, but not be limited to, standards for
 1779  presenting a summary of association reserves, including a good
 1780  faith estimate disclosing the annual amount of reserve funds
 1781  that would be necessary for the association to fully fund
 1782  reserves for each reserve item based on the straight-line method
 1783  or to fully fund reserves based on the pooling method. In
 1784  adopting such rules, the division shall consider the number of
 1785  members and annual revenues of an association.
 1786         (5) MAINTENANCE.—
 1787         (a) Maintenance of the common areas is the responsibility
 1788  of the association, except for any maintenance responsibility
 1789  for limited common areas assigned to the unit owner by the
 1790  cooperative documents. The association shall provide for the
 1791  maintenance, repair, and replacement of the cooperative property
 1792  for which it bears responsibility. After turnover of control of
 1793  the association to the unit owners, the association must perform
 1794  any required maintenance identified by the developer pursuant to
 1795  s. 719.301(4)(p) until the association obtains new maintenance
 1796  protocols from a licensed professional engineer or architect.
 1797         (b) The necessary maintenance, repair, or replacement of
 1798  cooperative property is not a material alteration or substantial
 1799  addition requiring unit owner approval.
 1800         (c) The association is not liable for alternative housing
 1801  costs, lost rent, or other expenses if a unit must be vacated in
 1802  whole or in part or if access is denied to a common area for
 1803  necessary maintenance, repair, or replacement of cooperative
 1804  property.
 1805         Section 15. Paragraphs (d) and (j) of subsection (1) of
 1806  section 719.106, Florida Statutes, are amended, and paragraph
 1807  (n) is added to that subsection, to read:
 1808         719.106 Bylaws; cooperative ownership.—
 1809         (1) MANDATORY PROVISIONS.—The bylaws or other cooperative
 1810  documents shall provide for the following, and if they do not,
 1811  they shall be deemed to include the following:
 1812         (d) Shareholder meetings.—There shall be an annual meeting
 1813  of the shareholders. All members of the board of administration
 1814  shall be elected at the annual meeting unless the bylaws provide
 1815  for staggered election terms or for their election at another
 1816  meeting. Any unit owner desiring to be a candidate for board
 1817  membership must comply with subparagraph 1. The bylaws must
 1818  provide the method for calling meetings, including annual
 1819  meetings. Written notice, which must incorporate an
 1820  identification of agenda items, shall be given to each unit
 1821  owner at least 14 days before the annual meeting and posted in a
 1822  conspicuous place on the cooperative property at least 14
 1823  continuous days preceding the annual meeting. Upon notice to the
 1824  unit owners, the board must by duly adopted rule designate a
 1825  specific location on the cooperative property upon which all
 1826  notice of unit owner meetings are posted. In lieu of or in
 1827  addition to the physical posting of the meeting notice, the
 1828  association may, by reasonable rule, adopt a procedure for
 1829  conspicuously posting and repeatedly broadcasting the notice and
 1830  the agenda on a closed-circuit cable television system serving
 1831  the cooperative association. However, if broadcast notice is
 1832  used in lieu of a posted notice, the notice and agenda must be
 1833  broadcast at least four times every broadcast hour of each day
 1834  that a posted notice is otherwise required under this section.
 1835  If broadcast notice is provided, the notice and agenda must be
 1836  broadcast in a manner and for a sufficient continuous length of
 1837  time to allow an average reader to observe the notice and read
 1838  and comprehend the entire content of the notice and the agenda.
 1839  In addition to any of the authorized means of providing notice
 1840  of a meeting of the shareholders, the association may, by rule,
 1841  adopt a procedure for conspicuously posting the meeting notice
 1842  and the agenda on a website serving the cooperative association
 1843  for at least the minimum period of time for which a notice of a
 1844  meeting is also required to be physically posted on the
 1845  cooperative property. Any rule adopted shall, in addition to
 1846  other matters, include a requirement that the association send
 1847  an electronic notice in the same manner as a notice for a
 1848  meeting of the members, which must include a hyperlink to the
 1849  website where the notice is posted, to unit owners whose e-mail
 1850  addresses are included in the association’s official records.
 1851  Unless a unit owner waives in writing the right to receive
 1852  notice of the annual meeting, the notice of the annual meeting
 1853  must be sent by mail, hand delivered, or electronically
 1854  transmitted to each unit owner. An officer of the association
 1855  must provide an affidavit or United States Postal Service
 1856  certificate of mailing, to be included in the official records
 1857  of the association, affirming that notices of the association
 1858  meeting were mailed, hand delivered, or electronically
 1859  transmitted, in accordance with this provision, to each unit
 1860  owner at the address last furnished to the association.
 1861         1. The board of administration shall be elected by written
 1862  ballot or voting machine. A proxy may not be used in electing
 1863  the board of administration in general elections or elections to
 1864  fill vacancies caused by recall, resignation, or otherwise
 1865  unless otherwise provided in this chapter.
 1866         a. At least 60 days before a scheduled election, the
 1867  association shall mail, deliver, or transmit, whether by
 1868  separate association mailing, delivery, or electronic
 1869  transmission or included in another association mailing,
 1870  delivery, or electronic transmission, including regularly
 1871  published newsletters, to each unit owner entitled to vote, a
 1872  first notice of the date of the election. Any unit owner or
 1873  other eligible person desiring to be a candidate for the board
 1874  of administration must give written notice to the association at
 1875  least 40 days before a scheduled election. Together with the
 1876  written notice and agenda as set forth in this section, the
 1877  association shall mail, deliver, or electronically transmit a
 1878  second notice of election to all unit owners entitled to vote,
 1879  together with a ballot that lists all candidates. Upon request
 1880  of a candidate, the association shall include an information
 1881  sheet, no larger than 8 1/2 inches by 11 inches, which must be
 1882  furnished by the candidate at least 35 days before the election,
 1883  to be included with the mailing, delivery, or electronic
 1884  transmission of the ballot, with the costs of mailing, delivery,
 1885  or transmission and copying to be borne by the association. The
 1886  association is not liable for the contents of the information
 1887  sheets provided by the candidates. In order to reduce costs, the
 1888  association may print or duplicate the information sheets on
 1889  both sides of the paper. The division shall by rule establish
 1890  voting procedures consistent with this subparagraph, including
 1891  rules establishing procedures for giving notice by electronic
 1892  transmission and rules providing for the secrecy of ballots.
 1893  Elections shall be decided by a plurality of those ballots cast.
 1894  There is no quorum requirement. However, at least 20 percent of
 1895  the eligible voters must cast a ballot in order to have a valid
 1896  election. A unit owner may not permit any other person to vote
 1897  his or her ballot, and any such ballots improperly cast are
 1898  invalid. A unit owner who needs assistance in casting the ballot
 1899  for the reasons stated in s. 101.051 may obtain assistance in
 1900  casting the ballot. Any unit owner violating this provision may
 1901  be fined by the association in accordance with s. 719.303. The
 1902  regular election must occur on the date of the annual meeting.
 1903  This subparagraph does not apply to timeshare cooperatives.
 1904  Notwithstanding this subparagraph, an election and balloting are
 1905  not required unless more candidates file a notice of intent to
 1906  run or are nominated than vacancies exist on the board. Any
 1907  challenge to the election process must be commenced within 60
 1908  days after the election results are announced.
 1909         b. Within 90 days after being elected or appointed to the
 1910  board, each new director shall do both of the following:
 1911         (I) Certify in writing to the secretary of the association
 1912  that he or she has read the association’s bylaws, articles of
 1913  incorporation, proprietary lease, and current written policies;
 1914  that he or she will work to uphold such documents and policies
 1915  to the best of his or her ability; and that he or she will
 1916  faithfully discharge his or her fiduciary responsibility to the
 1917  association’s members. Within 90 days after being elected or
 1918  appointed to the board, in lieu of this written certification,
 1919  the newly elected or appointed director may
 1920         (II) Submit a certificate of having satisfactorily
 1921  completed the educational curriculum administered by an
 1922  education provider as approved by the division pursuant to the
 1923  requirements established in chapter 718 within 1 year before or
 1924  90 days after the date of election or appointment. The
 1925  educational certificate is valid and does not have to be
 1926  resubmitted as long as the director serves on the board without
 1927  interruption.
 1928  
 1929  A director who fails to timely file the written certification
 1930  and or educational certificate is suspended from service on the
 1931  board until he or she complies with this sub-subparagraph. The
 1932  board may temporarily fill the vacancy during the period of
 1933  suspension. The secretary of the association shall require cause
 1934  the association to retain a director’s written certification and
 1935  or educational certificate for inspection by the members for 5
 1936  years after a director’s election or the duration of the
 1937  director’s uninterrupted tenure, whichever is longer. Failure to
 1938  have such written certification and or educational certificate
 1939  on file does not affect the validity of any board action.
 1940         2. Any approval by unit owners called for by this chapter,
 1941  or the applicable cooperative documents, must be made at a duly
 1942  noticed meeting of unit owners and is subject to this chapter or
 1943  the applicable cooperative documents relating to unit owner
 1944  decisionmaking, except that unit owners may take action by
 1945  written agreement, without meetings, on matters for which action
 1946  by written agreement without meetings is expressly allowed by
 1947  the applicable cooperative documents or law which provides for
 1948  the unit owner action.
 1949         3. Unit owners may waive notice of specific meetings if
 1950  allowed by the applicable cooperative documents or law. Notice
 1951  of meetings of the board of administration, shareholder
 1952  meetings, except shareholder meetings called to recall board
 1953  members under paragraph (f), and committee meetings may be given
 1954  by electronic transmission to unit owners who consent to receive
 1955  notice by electronic transmission. A unit owner who consents to
 1956  receiving notices by electronic transmission is solely
 1957  responsible for removing or bypassing filters that may block
 1958  receipt of mass emails sent to members on behalf of the
 1959  association in the course of giving electronic notices.
 1960         4. Unit owners have the right to participate in meetings of
 1961  unit owners with reference to all designated agenda items.
 1962  However, the association may adopt reasonable rules governing
 1963  the frequency, duration, and manner of unit owner participation.
 1964         5. Any unit owner may tape record or videotape meetings of
 1965  the unit owners subject to reasonable rules adopted by the
 1966  division.
 1967         6. Unless otherwise provided in the bylaws, a vacancy
 1968  occurring on the board before the expiration of a term may be
 1969  filled by the affirmative vote of the majority of the remaining
 1970  directors, even if the remaining directors constitute less than
 1971  a quorum, or by the sole remaining director. In the alternative,
 1972  a board may hold an election to fill the vacancy, in which case
 1973  the election procedures must conform to the requirements of
 1974  subparagraph 1. unless the association has opted out of the
 1975  statutory election process, in which case the bylaws of the
 1976  association control. Unless otherwise provided in the bylaws, a
 1977  board member appointed or elected under this subparagraph shall
 1978  fill the vacancy for the unexpired term of the seat being
 1979  filled. Filling vacancies created by recall is governed by
 1980  paragraph (f) and rules adopted by the division.
 1981  
 1982  Notwithstanding subparagraphs (b)2. and (d)1., an association
 1983  may, by the affirmative vote of a majority of the total voting
 1984  interests, provide for a different voting and election procedure
 1985  in its bylaws, which vote may be by a proxy specifically
 1986  delineating the different voting and election procedures. The
 1987  different voting and election procedures may provide for
 1988  elections to be conducted by limited or general proxy.
 1989         (j) Annual budget.—
 1990         1. The proposed annual budget of common expenses shall be
 1991  detailed and shall show the amounts budgeted by accounts and
 1992  expense classifications, including, if applicable, but not
 1993  limited to, those expenses listed in s. 719.504(20). The board
 1994  of administration shall adopt the annual budget at least 14 days
 1995  prior to the start of the association’s fiscal year. In the
 1996  event that the board fails to timely adopt the annual budget a
 1997  second time, it shall be deemed a minor violation and the prior
 1998  year’s budget shall continue in effect until a new budget is
 1999  adopted.
 2000         2. In addition to annual operating expenses, the budget
 2001  shall include reserve accounts for capital expenditures and
 2002  deferred maintenance. These accounts shall include, but not be
 2003  limited to, the maintenance and replacement of the cooperative
 2004  property identified in s. 719.301(4)(p) which are the
 2005  maintenance responsibility of the association pursuant to the
 2006  declaration roof replacement, building painting, and pavement
 2007  resurfacing, regardless of the amount of deferred maintenance
 2008  expense or replacement cost, and for any other items for which
 2009  the deferred maintenance expense or replacement cost exceeds
 2010  $10,000. The amount to be reserved shall be computed by means of
 2011  a formula which is based upon estimated remaining useful life
 2012  and estimated replacement cost or deferred maintenance expense
 2013  of each reserve item. The association may adjust replacement
 2014  reserve assessments annually to take into account any changes in
 2015  estimates or extension of the useful life of a reserve item
 2016  caused by deferred maintenance. This paragraph shall not apply
 2017  to any budget in which the members of an association have, at a
 2018  duly called meeting of the association and by a two-thirds vote
 2019  of all the voting interests, voting in person or by proxy,
 2020  determined for a fiscal year to provide no reserves or reserves
 2021  less adequate than required by this subsection. An annual budget
 2022  adopted on or after January 1, 2024, must, at minimum:
 2023         a. Identify all items for which reserves are or will be
 2024  established;
 2025         b. Provide an estimate of the maintenance, repair, and
 2026  replacement costs for the structural components for which an
 2027  estimate of useful life may be determined;
 2028         c. Identify any structural component for which a reserve
 2029  account is not established or reserves are not funded, because
 2030  the useful life of the component cannot be determined;
 2031         d. As of the beginning of the fiscal year for which the
 2032  budget is prepared, identify the estimated current amount of
 2033  accumulated funds for each reserve component or, if the pooling
 2034  method is used, the estimated current amount of the accumulated
 2035  pooled funds;
 2036         e.Provide a description of the manner in which the
 2037  association plans to fund reserves, including the use of regular
 2038  assessments, special assessments, and any other alternative
 2039  funding method; and
 2040         f. Provide a description of the procedures used for
 2041  estimating the funding of reserves pursuant to this paragraph,
 2042  including, as applicable, the identity of any independent third
 2043  party who conducted the reserve study on behalf of the
 2044  association and the extent to which the association is funding
 2045  its reserve obligations consistent with the reserve study
 2046  currently in effect.
 2047         3. However, Prior to turnover of control of an association
 2048  by a developer to unit owners other than a developer pursuant to
 2049  s. 719.301, the developer may not vote to waive the reserves or
 2050  reduce the funding of reserves. for the first 2 years of the
 2051  operation of the association after which time Reserves may only
 2052  be waived or reduced upon the vote of two-thirds a majority of
 2053  all nondeveloper voting interests, voting in person or by
 2054  limited proxy at a duly called meeting of the association. If a
 2055  meeting of the unit owners has been called to determine to
 2056  provide no reserves, or reserves less adequate than required,
 2057  and such result is not attained or a quorum is not attained, the
 2058  reserves as included in the budget shall go into effect.
 2059         4.3. Reserve funds and any interest accruing thereon shall
 2060  remain in the reserve account or accounts, and shall be used
 2061  only for authorized reserve expenditures unless their use for
 2062  other purposes is approved in advance by a vote of two-thirds
 2063  the majority of all the voting interests, voting in person or by
 2064  limited proxy at a duly called meeting of the association;
 2065  provided that the use of reserve funds for a purpose other than
 2066  authorized reserve expenditures is authorized in the exercise of
 2067  the association’s emergency powers under s. 719.128. Prior to
 2068  turnover of control of an association by a developer to unit
 2069  owners other than the developer under s. 719.301, the developer
 2070  may not vote to use reserves for purposes other than that for
 2071  which they were intended without the approval of two-thirds a
 2072  majority of all nondeveloper voting interests, voting in person
 2073  or by limited proxy at a duly called meeting of the association.
 2074         5. Effective January 1, 2024, an association with a
 2075  residential cooperative building that is three stories or more
 2076  in height and subject to the milestone inspection requirements
 2077  in s. 553.899 must conduct a study of the amount of reserve
 2078  funds needed to fund reserves for the maintenance, repair,
 2079  replacement, and restoration of the cooperative property. The
 2080  reserve study must be conducted at least every 5 years. The
 2081  board shall review the results of such study at least annually
 2082  to determine if reserves are sufficient to meet the
 2083  association’s reserve obligations and to make any adjustments
 2084  the board deems necessary to maintain reserves, as appropriate.
 2085  The division shall adopt rules setting forth uniform financial
 2086  standards and forms for reserve studies. The reserve study must
 2087  include, without limitation:
 2088         a.A visual inspection by a licensed architect, engineer,
 2089  or other independent professional with demonstrated experience
 2090  or knowledge preparing reserve studies for the purpose of
 2091  estimating the useful life and estimated replacement cost or
 2092  deferred maintenance expense. The visual inspection shall be
 2093  performed on or before January 1, 2024, and at least once every
 2094  10 years thereafter. The inspection may be the milestone
 2095  inspection required under s. 553.899;
 2096         b. A summary of any inspection of the major components of
 2097  the cooperative property identified in sub-subparagraph a. and
 2098  any other portion of the cooperative property for which the
 2099  association is required to establish a reserve account or
 2100  accounts;
 2101         c.If applicable, a summary of the findings and
 2102  recommendations of the milestone inspection report required
 2103  under s. 553.899 and any other structural or life safety
 2104  inspection of the cooperative property considered in the reserve
 2105  study;
 2106         dAn identification of the structural components of the
 2107  building for which necessary reserves may be reasonably
 2108  projected and an identification of the structural components of
 2109  the building with an indefinite useful life for which a
 2110  reasonable determination of necessary reserves may not be
 2111  estimated;
 2112         e. An estimate of the useful life of the structural
 2113  components of the building identified in sub-subparagraph a. for
 2114  which an estimate of useful life may be determined as attested
 2115  to by a licensed architect or engineer in the turnover
 2116  inspection required under s. 719.301(4)(p), a milestone
 2117  inspection, or any other structural or life safety inspection of
 2118  the cooperative property by a licensed architect or engineer,
 2119  whichever is most recent;
 2120         f. An estimate of the remaining useful life of any other
 2121  portion of the cooperative property for which the association is
 2122  required to establish a reserve account or accounts;
 2123         g. An estimate of the cost of maintenance, repair,
 2124  replacement, or restoration of each major component of the
 2125  condominium property identified in s. 719.301(4)(p) and any
 2126  other portion of the condominium property identified pursuant to
 2127  sub-subparagraph d.;
 2128         h. An estimate of the total annual assessment that may be
 2129  necessary to cover the cost of maintaining, repairing,
 2130  replacing, or restoring the major components of the cooperative
 2131  property identified in sub-subparagraph a. and any other portion
 2132  of the cooperative property identified pursuant to sub
 2133  subparagraph f.;
 2134         i.A description of the funding plan, including any
 2135  alternative funding method, to provide adequate funding for the
 2136  required reserves; and
 2137         j.A schedule for the full funding of reserves. A reserve
 2138  account is fully funded when the actual or projected reserve
 2139  balance in the reserve account is equal in direct proportion to
 2140  the fraction of useful life that has expired for a given
 2141  component or components multiplied by the current replacement
 2142  costs for the component or components.
 2143         6. If the association has voted to waive reserves or to use
 2144  existing reserve funds for purposes other than the purposes for
 2145  which the reserves were intended, the budget must contain the
 2146  following statement in conspicuous type: THE OWNERS HAVE ELECTED
 2147  TO WAIVE RESERVES, IN WHOLE OR IN PART, OR ALLOWED ALTERNATIVE
 2148  USES OF EXISTING RESERVES UNDER SECTION 719.106(1)(j), FLORIDA
 2149  STATUTES. THE WAIVING OR ALTERNATIVE USE OF RESERVE FUNDS MAY
 2150  RESULT IN UNIT OWNER LIABILITY FOR PAYMENT OF UNANTICIPATED
 2151  SPECIAL ASSESSMENTS REGARDING THOSE ITEMS.
 2152         7. On or after January 1, 2026, if the association is
 2153  required to perform a reserve study under this paragraph and the
 2154  budget of the association does not fund the association’s
 2155  reserve obligations consistent with the reserve study currently
 2156  in effect, the budget must also contain the following statement
 2157  in conspicuous type: THE ASSOCIATION’S LAST RESERVE STUDY IS
 2158  DATED ..... THE RESERVE AMOUNT BUDGETED AND/OR COLLECTED IS LESS
 2159  THAN REQUIRED BY THE RESERVE STUDY SCHEDULE. THE BUDGET OF THE
 2160  ASSOCIATION DOES NOT PROVIDE FOR FULLY FUNDED RESERVE ACCOUNTS
 2161  FOR CAPITAL EXPENDITURES AND DEFERRED MAINTENANCE CONSISTENT
 2162  WITH THE ASSOCIATION’S RESERVE STUDY. FAILURE TO FUND RESERVES
 2163  CONSISTENT WITH THE ASSOCIATION’S RESERVE STUDY MAY RESULT IN
 2164  UNANTICIPATED SPECIAL ASSESSMENTS REGARDING THOSE ITEMS.
 2165         (n)Mandatory milestone inspections.If an association is
 2166  required to have a milestone inspection performed pursuant to s.
 2167  553.899, the association must arrange for the milestone
 2168  inspection to be performed and is responsible for ensuring
 2169  compliance with the requirements of s. 553.899. The association
 2170  is responsible for all costs associated with the inspection. If
 2171  the officers or directors of an association willfully and
 2172  knowingly fail to have a milestone inspection performed pursuant
 2173  to s. 553.899, such failure is a breach of the officers’ and
 2174  directors’ fiduciary relationship to the unit owners under s.
 2175  719.104(8)(a). Upon completion of a phase one or phase two
 2176  milestone inspection and receipt of the inspector-prepared
 2177  summary of the inspection report from the architect or engineer
 2178  who performed the inspection, the association must distribute a
 2179  copy of the inspector-prepared summary of the inspection report
 2180  to each unit owner, regardless of the findings or
 2181  recommendations in the report, by United States mail or personal
 2182  delivery and by electronic transmission to unit owners who
 2183  previously consented to receive notice by electronic
 2184  transmission; must post a copy of the inspector-prepared summary
 2185  in a conspicuous place on the cooperative property; and must
 2186  publish the full report and inspector-prepared summary on the
 2187  association’s website, if the association is required to have a
 2188  website.
 2189         Section 16. Paragraphs (p) and (q) are added to subsection
 2190  (4) of section 719.301, Florida Statutes, to read:
 2191         719.301 Transfer of association control.—
 2192         (4) When unit owners other than the developer elect a
 2193  majority of the members of the board of administration of an
 2194  association, the developer shall relinquish control of the
 2195  association, and the unit owners shall accept control.
 2196  Simultaneously, or for the purpose of paragraph (c) not more
 2197  than 90 days thereafter, the developer shall deliver to the
 2198  association, at the developer’s expense, all property of the
 2199  unit owners and of the association held or controlled by the
 2200  developer, including, but not limited to, the following items,
 2201  if applicable, as to each cooperative operated by the
 2202  association:
 2203         (p) Notwithstanding when the certificate of occupancy was
 2204  issued or the height of the building, a milestone inspection
 2205  report in compliance with s. 553.899 included in the official
 2206  records, under seal of an architect or engineer authorized to
 2207  practice in this state, attesting to required maintenance,
 2208  condition, useful life, and replacement costs of the following
 2209  applicable cooperative property comprising a turnover inspection
 2210  report:
 2211         1. Roof.
 2212         2. Structure, including load-bearing walls and primary
 2213  structural members and primary structural systems as those terms
 2214  are defined in s. 627.706.
 2215         3. Fireproofing and fire protection systems.
 2216         4. Elevators.
 2217         5. Heating and cooling systems.
 2218         6. Plumbing.
 2219         7. Electrical systems.
 2220         8. Swimming pool or spa and equipment.
 2221         9. Seawalls.
 2222         10. Pavement and parking areas.
 2223         11. Drainage systems.
 2224         12. Painting.
 2225         13. Irrigation systems.
 2226         14.Waterproofing.
 2227         (q) A copy of the most recent reserve study required under
 2228  s. 719.106(1)(j), along with the statements indicating the
 2229  status of the reserves required under s. 719.106(1)(j)6. and 7.,
 2230  if applicable, or a statement in conspicuous type indicating
 2231  that the association has not completed the required reserve
 2232  study or that the association is not required to perform a
 2233  reserve study, as applicable.
 2234         Section 17. Subsection (3) is added to section 719.501,
 2235  Florida Statutes, to read:
 2236         719.501 Powers and duties of Division of Florida
 2237  Condominiums, Timeshares, and Mobile Homes.—
 2238         (3)(a)On or before January 1, 2023, cooperative
 2239  associations existing on or before July 1, 2022, must provide
 2240  the following information to the division in writing, by e-mail,
 2241  United States Postal Service, commercial delivery service, or
 2242  hand delivery, at a physical address or e-mail address provided
 2243  by the division and on a form posted on the division’s website:
 2244         1.The number of buildings on the cooperative property that
 2245  are three stories or higher in height.
 2246         2.The total number of units in all such buildings.
 2247         3.The addresses of all such buildings.
 2248         4.The counties in which all such buildings are located.
 2249         (b)The division must compile a list of the number of
 2250  buildings on cooperative property that are three stories or
 2251  higher in height, which is searchable by county, and must post
 2252  the list on the division’s website. This list must include all
 2253  of the following information:
 2254         1.The name of each association with buildings on the
 2255  cooperative property that are three stories or higher in height.
 2256         2.The number of such buildings on each association’s
 2257  property.
 2258         3.The addresses of all such buildings.
 2259         4.The counties in which all such buildings are located.
 2260         (c)An association must provide an update in writing to the
 2261  division if there are any changes to the information in the list
 2262  under paragraph (b) within 6 months after the change.
 2263         Section 18. Paragraph (b) of subsection (1) and paragraph
 2264  (a) of subsection (2) of section 719.503, Florida Statutes, are
 2265  amended to read:
 2266         719.503 Disclosure prior to sale.—
 2267         (1) DEVELOPER DISCLOSURE.—
 2268         (b) Copies of documents to be furnished to prospective
 2269  buyer or lessee.—Until such time as the developer has furnished
 2270  the documents listed below to a person who has entered into a
 2271  contract to purchase a unit or lease it for more than 5 years,
 2272  the contract may be voided by that person, entitling the person
 2273  to a refund of any deposit together with interest thereon as
 2274  provided in s. 719.202. The contract may be terminated by
 2275  written notice from the proposed buyer or lessee delivered to
 2276  the developer within 15 days after the buyer or lessee receives
 2277  all of the documents required by this section. The developer may
 2278  shall not close for 15 days after following the execution of the
 2279  agreement and delivery of the documents to the buyer as
 2280  evidenced by a receipt for documents signed by the buyer unless
 2281  the buyer is informed in the 15-day voidability period and
 2282  agrees to close before prior to the expiration of the 15 days.
 2283  The developer shall retain in his or her records a separate
 2284  signed agreement as proof of the buyer’s agreement to close
 2285  before prior to the expiration of the said voidability period.
 2286  The developer must retain such Said proof shall be retained for
 2287  a period of 5 years after the date of the closing transaction.
 2288  The documents to be delivered to the prospective buyer are the
 2289  prospectus or disclosure statement with all exhibits, if the
 2290  development is subject to the provisions of s. 719.504, or, if
 2291  not, then copies of the following which are applicable:
 2292         1. The question and answer sheet described in s. 719.504,
 2293  and cooperative documents, or the proposed cooperative documents
 2294  if the documents have not been recorded, which shall include the
 2295  certificate of a surveyor approximately representing the
 2296  locations required by s. 719.104.
 2297         2. The documents creating the association.
 2298         3. The bylaws.
 2299         4. The ground lease or other underlying lease of the
 2300  cooperative.
 2301         5. The management contract, maintenance contract, and other
 2302  contracts for management of the association and operation of the
 2303  cooperative and facilities used by the unit owners having a
 2304  service term in excess of 1 year, and any management contracts
 2305  that are renewable.
 2306         6. The estimated operating budget for the cooperative and a
 2307  schedule of expenses for each type of unit, including fees
 2308  assessed to a shareholder who has exclusive use of limited
 2309  common areas, where such costs are shared only by those entitled
 2310  to use such limited common areas.
 2311         7. The lease of recreational and other facilities that will
 2312  be used only by unit owners of the subject cooperative.
 2313         8. The lease of recreational and other common areas that
 2314  will be used by unit owners in common with unit owners of other
 2315  cooperatives.
 2316         9. The form of unit lease if the offer is of a leasehold.
 2317         10. Any declaration of servitude of properties serving the
 2318  cooperative but not owned by unit owners or leased to them or
 2319  the association.
 2320         11. If the development is to be built in phases or if the
 2321  association is to manage more than one cooperative, a
 2322  description of the plan of phase development or the arrangements
 2323  for the association to manage two or more cooperatives.
 2324         12. If the cooperative is a conversion of existing
 2325  improvements, the statements and disclosure required by s.
 2326  719.616.
 2327         13. The form of agreement for sale or lease of units.
 2328         14. A copy of the floor plan of the unit and the plot plan
 2329  showing the location of the residential buildings and the
 2330  recreation and other common areas.
 2331         15. A copy of all covenants and restrictions that which
 2332  will affect the use of the property and which are not contained
 2333  in the foregoing.
 2334         16. If the developer is required by state or local
 2335  authorities to obtain acceptance or approval of any dock or
 2336  marina facilities intended to serve the cooperative, a copy of
 2337  any such acceptance or approval acquired by the time of filing
 2338  with the division pursuant to s. 719.502(1) or a statement that
 2339  such acceptance or approval has not been acquired or received.
 2340         17. Evidence demonstrating that the developer has an
 2341  ownership, leasehold, or contractual interest in the land upon
 2342  which the cooperative is to be developed.
 2343         18. A copy of the most recent reserve study required under
 2344  s. 719.106(1)(j), along with the statements indicating the
 2345  status of the reserves required under s. 719.106(1)(j)6. and 7.,
 2346  if applicable, or a statement in conspicuous type indicating
 2347  that the association has not completed the required reserve
 2348  study or that the association is not required to perform a
 2349  reserve study, as applicable.
 2350         19. A copy of the inspector-prepared summary of the
 2351  milestone inspection report as described in ss. 553.899 and
 2352  719.301(4)(p).
 2353         (2) NONDEVELOPER DISCLOSURE.—
 2354         (a) Each unit owner who is not a developer as defined by
 2355  this chapter must comply with the provisions of this subsection
 2356  before prior to the sale of his or her interest in the
 2357  association. Each prospective purchaser who has entered into a
 2358  contract for the purchase of an interest in a cooperative is
 2359  entitled, at the seller’s expense, to a current copy of all of
 2360  the following:
 2361         1. The articles of incorporation of the association.,
 2362         2. The bylaws, and rules of the association.
 2363         3.,as well as A copy of the question and answer sheet as
 2364  provided in s. 719.504.
 2365         4.A copy of the most recent reserve study required under
 2366  s. 719.106(1)(j), along with the statements in the budget
 2367  indicating the status of the reserves required under s. 719.106
 2368  (1)(j)6. and 7., if applicable, or a statement in conspicuous
 2369  type indicating that the association has not completed the
 2370  required reserve study or that the association is not required
 2371  to perform a reserve study, as applicable.
 2372         5. A copy of the inspector-prepared summary of the
 2373  milestone inspection report as described in ss. 553.899 and
 2374  719.301(4)(p).
 2375         Section 19. Paragraph (f) of subsection (23) of section
 2376  719.504, Florida Statutes, is amended, and paragraph (q) is
 2377  added to that subsection, to read:
 2378         719.504 Prospectus or offering circular.—Every developer of
 2379  a residential cooperative which contains more than 20
 2380  residential units, or which is part of a group of residential
 2381  cooperatives which will be served by property to be used in
 2382  common by unit owners of more than 20 residential units, shall
 2383  prepare a prospectus or offering circular and file it with the
 2384  Division of Florida Condominiums, Timeshares, and Mobile Homes
 2385  prior to entering into an enforceable contract of purchase and
 2386  sale of any unit or lease of a unit for more than 5 years and
 2387  shall furnish a copy of the prospectus or offering circular to
 2388  each buyer. In addition to the prospectus or offering circular,
 2389  each buyer shall be furnished a separate page entitled
 2390  “Frequently Asked Questions and Answers,” which must be in
 2391  accordance with a format approved by the division. This page
 2392  must, in readable language: inform prospective purchasers
 2393  regarding their voting rights and unit use restrictions,
 2394  including restrictions on the leasing of a unit; indicate
 2395  whether and in what amount the unit owners or the association is
 2396  obligated to pay rent or land use fees for recreational or other
 2397  commonly used facilities; contain a statement identifying that
 2398  amount of assessment which, pursuant to the budget, would be
 2399  levied upon each unit type, exclusive of any special
 2400  assessments, and which identifies the basis upon which
 2401  assessments are levied, whether monthly, quarterly, or
 2402  otherwise; state and identify any court cases in which the
 2403  association is currently a party of record in which the
 2404  association may face liability in excess of $100,000; and state
 2405  whether membership in a recreational facilities association is
 2406  mandatory and, if so, identify the fees currently charged per
 2407  unit type. The division shall by rule require such other
 2408  disclosure as in its judgment will assist prospective
 2409  purchasers. The prospectus or offering circular may include more
 2410  than one cooperative, although not all such units are being
 2411  offered for sale as of the date of the prospectus or offering
 2412  circular. The prospectus or offering circular must contain the
 2413  following information:
 2414         (23) Copies of the following, to the extent they are
 2415  applicable, shall be included as exhibits:
 2416         (f) The estimated operating budget for the cooperative and
 2417  the required schedule of unit owners’ expenses, and the most
 2418  recent reserve study required under s. 719.106(1)(j), along with
 2419  the statements in the budget indicating the status of the
 2420  reserves required under s. 719.106(1)(j)6. and 7., if
 2421  applicable, or a statement in conspicuous type indicating that
 2422  the association has not completed the required reserve study or
 2423  that the association is not required to perform a reserve study,
 2424  as applicable.
 2425         (q) A copy of the inspector-prepared summary of the
 2426  milestone inspection report as described in ss. 553.899 and
 2427  719.301(4)(p).
 2428         Section 20. Subsection (2) of section 558.002, Florida
 2429  Statutes, is amended to read:
 2430         558.002 Definitions.—As used in this chapter, the term:
 2431         (2) “Association” has the same meaning as in s. 718.103(3)
 2432  s. 718.103(2), s. 719.103(3) s. 719.103(2), s. 720.301(9), or s.
 2433  723.075.
 2434         Section 21. Paragraph (e) of subsection (1) of section
 2435  718.115, Florida Statutes, is amended to read:
 2436         718.115 Common expenses and common surplus.—
 2437         (1)
 2438         (e) The expense of installation, replacement, operation,
 2439  repair, and maintenance of hurricane shutters, impact glass,
 2440  code-compliant windows or doors, or other types of code
 2441  compliant hurricane protection by the board pursuant to s.
 2442  718.113(6) s. 718.113(5) constitutes a common expense and shall
 2443  be collected as provided in this section if the association is
 2444  responsible for the maintenance, repair, and replacement of the
 2445  hurricane shutters, impact glass, code-compliant windows or
 2446  doors, or other types of code-compliant hurricane protection
 2447  pursuant to the declaration of condominium. However, if the
 2448  maintenance, repair, and replacement of the hurricane shutters,
 2449  impact glass, code-compliant windows or doors, or other types of
 2450  code-compliant hurricane protection are the responsibility of
 2451  the unit owners pursuant to the declaration of condominium, the
 2452  cost of the installation of the hurricane shutters, impact
 2453  glass, code-compliant windows or doors, or other types of code
 2454  compliant hurricane protection is not a common expense and shall
 2455  be charged individually to the unit owners based on the cost of
 2456  installation of the hurricane shutters, impact glass, code
 2457  compliant windows or doors, or other types of code-compliant
 2458  hurricane protection appurtenant to the unit. Notwithstanding s.
 2459  718.116(9), and regardless of whether or not the declaration
 2460  requires the association or unit owners to maintain, repair, or
 2461  replace hurricane shutters, impact glass, code-compliant windows
 2462  or doors, or other types of code-compliant hurricane protection,
 2463  a unit owner who has previously installed hurricane shutters in
 2464  accordance with s. 718.113(6) s. 718.113(5) that comply with the
 2465  current applicable building code shall receive a credit when the
 2466  shutters are installed; a unit owner who has previously
 2467  installed impact glass or code-compliant windows or doors that
 2468  comply with the current applicable building code shall receive a
 2469  credit when the impact glass or code-compliant windows or doors
 2470  are installed; and a unit owner who has installed other types of
 2471  code-compliant hurricane protection that comply with the current
 2472  applicable building code shall receive a credit when the same
 2473  type of other code-compliant hurricane protection is installed,
 2474  and the credit shall be equal to the pro rata portion of the
 2475  assessed installation cost assigned to each unit. However, such
 2476  unit owner remains responsible for the pro rata share of
 2477  expenses for hurricane shutters, impact glass, code-compliant
 2478  windows or doors, or other types of code-compliant hurricane
 2479  protection installed on common elements and association property
 2480  by the board pursuant to s. 718.113(6) s. 718.113(5) and remains
 2481  responsible for a pro rata share of the expense of the
 2482  replacement, operation, repair, and maintenance of such
 2483  shutters, impact glass, code-compliant windows or doors, or
 2484  other types of code-compliant hurricane protection.
 2485         Section 22. Paragraph (b) of subsection (1) of section
 2486  718.116, Florida Statutes, is amended to read:
 2487         718.116 Assessments; liability; lien and priority;
 2488  interest; collection.—
 2489         (1)
 2490         (b)1. The liability of a first mortgagee or its successor
 2491  or assignees who acquire title to a unit by foreclosure or by
 2492  deed in lieu of foreclosure for the unpaid assessments that
 2493  became due before the mortgagee’s acquisition of title is
 2494  limited to the lesser of:
 2495         a. The unit’s unpaid common expenses and regular periodic
 2496  assessments which accrued or came due during the 12 months
 2497  immediately preceding the acquisition of title and for which
 2498  payment in full has not been received by the association; or
 2499         b. One percent of the original mortgage debt. The
 2500  provisions of this paragraph apply only if the first mortgagee
 2501  joined the association as a defendant in the foreclosure action.
 2502  Joinder of the association is not required if, on the date the
 2503  complaint is filed, the association was dissolved or did not
 2504  maintain an office or agent for service of process at a location
 2505  which was known to or reasonably discoverable by the mortgagee.
 2506         2. An association, or its successor or assignee, that
 2507  acquires title to a unit through the foreclosure of its lien for
 2508  assessments is not liable for any unpaid assessments, late fees,
 2509  interest, or reasonable attorney’s fees and costs that came due
 2510  before the association’s acquisition of title in favor of any
 2511  other association, as defined in s. 718.103(3) s. 718.103(2) or
 2512  s. 720.301(9), which holds a superior lien interest on the unit.
 2513  This subparagraph is intended to clarify existing law.
 2514         Section 23. Subsection (2) of section 718.121, Florida
 2515  Statutes, is amended to read:
 2516         718.121 Liens.—
 2517         (2) Labor performed on or materials furnished to a unit may
 2518  not be the basis for the filing of a lien under part I of
 2519  chapter 713, the Construction Lien Law, against the unit or
 2520  condominium parcel of any unit owner not expressly consenting to
 2521  or requesting the labor or materials. Labor performed on or
 2522  materials furnished for the installation of a natural gas fuel
 2523  station or an electric vehicle charging station under s.
 2524  718.113(9) s. 718.113(8) may not be the basis for filing a lien
 2525  under part I of chapter 713 against the association, but such a
 2526  lien may be filed against the unit owner. Labor performed on or
 2527  materials furnished to the common elements are not the basis for
 2528  a lien on the common elements, but if authorized by the
 2529  association, the labor or materials are deemed to be performed
 2530  or furnished with the express consent of each unit owner and may
 2531  be the basis for the filing of a lien against all condominium
 2532  parcels in the proportions for which the owners are liable for
 2533  common expenses.
 2534         Section 24. Subsection (3) of section 718.706, Florida
 2535  Statutes, is amended to read:
 2536         718.706 Specific provisions pertaining to offering of units
 2537  by a bulk assignee or bulk buyer.—
 2538         (3) A bulk assignee, while in control of the board of
 2539  administration of the association, may not authorize, on behalf
 2540  of the association:
 2541         (a) The waiver of reserves or the reduction of funding of
 2542  the reserves pursuant to s. 718.112(2)(f)2., unless approved by
 2543  a majority of the voting interests not controlled by the
 2544  developer, bulk assignee, and bulk buyer; or
 2545         (b) The use of reserve expenditures for other purposes
 2546  pursuant to s. 718.112(2)(f)4. s. 718.112(2)(f)3., unless
 2547  approved by a majority of the voting interests not controlled by
 2548  the developer, bulk assignee, and bulk buyer.
 2549         Section 25. Paragraph (d) of subsection (2) of section
 2550  720.3085, Florida Statutes, is amended to read:
 2551         720.3085 Payment for assessments; lien claims.—
 2552         (2)
 2553         (d) An association, or its successor or assignee, that
 2554  acquires title to a parcel through the foreclosure of its lien
 2555  for assessments is not liable for any unpaid assessments, late
 2556  fees, interest, or reasonable attorney’s fees and costs that
 2557  came due before the association’s acquisition of title in favor
 2558  of any other association, as defined in s. 718.103(3) s.
 2559  718.103(2) or s. 720.301(9), which holds a superior lien
 2560  interest on the parcel. This paragraph is intended to clarify
 2561  existing law.
 2562         Section 26. For the purpose of incorporating the amendment
 2563  made by this act to section 718.1255, Florida Statutes, in a
 2564  reference thereto, section 719.1255, Florida Statutes, is
 2565  reenacted to read:
 2566         719.1255 Alternative resolution of disputes.—The Division
 2567  of Florida Condominiums, Timeshares, and Mobile Homes of the
 2568  Department of Business and Professional Regulation shall provide
 2569  for alternative dispute resolution in accordance with s.
 2570  718.1255.
 2571         Section 27. This act shall take effect July 1, 2022.
 2572  
 2573  ================= T I T L E  A M E N D M E N T ================
 2574  And the title is amended as follows:
 2575         Delete everything before the enacting clause
 2576  and insert:
 2577                        A bill to be entitled                      
 2578         An act relating to community associations; amending s.
 2579         163.04, F.S.; authorizing certain entities to prohibit
 2580         the installation of solar collectors under certain
 2581         circumstances; amending s. 468.4334, F.S.; requiring
 2582         community association managers and community
 2583         association management firms to comply with a
 2584         specified provision under certain circumstances;
 2585         creating s. 553.899, F.S.; providing legislative
 2586         findings; defining the terms “milestone inspection”
 2587         and “substantial structural deterioration”; specifying
 2588         that the purpose of a milestone inspection is not to
 2589         determine compliance with the Florida Building Code or
 2590         the firesafety code; requiring condominium
 2591         associations and cooperative associations to have
 2592         milestone inspections performed on certain buildings
 2593         at specified times; specifying that such associations
 2594         are responsible for costs relating to milestone
 2595         inspections; providing applicability; requiring that
 2596         initial milestone inspections for certain buildings be
 2597         performed before a specified date; requiring local
 2598         enforcement agencies to provide certain written notice
 2599         to condominium associations and cooperative
 2600         associations; requiring condominium associations and
 2601         cooperative associations to complete phase one of a
 2602         milestone inspection within a specified timeframe;
 2603         specifying that milestone inspections consist of two
 2604         phases; providing requirements for each phase of a
 2605         milestone inspection; requiring architects and
 2606         engineers performing a milestone inspection to submit
 2607         a sealed copy of the inspection report and a summary
 2608         that includes specified findings and recommendations
 2609         to certain entities; providing requirements for such
 2610         inspection reports; requiring condominium associations
 2611         and cooperative associations to distribute and post a
 2612         copy of each inspection report and summary in a
 2613         specified manner; authorizing local enforcement
 2614         agencies to prescribe timelines and penalties relating
 2615         to milestone inspections; authorizing boards of county
 2616         commissioners to adopt certain ordinances relating to
 2617         repairs for substantial structural deterioration;
 2618         requiring local enforcement agencies to review and
 2619         determine if a building is unsafe for human occupancy
 2620         under certain circumstances; requiring the Florida
 2621         Building Commission to review milestone inspection
 2622         requirements and make any recommendations to the
 2623         Governor and the Legislature by a specified date;
 2624         requiring the commission to consult with the State
 2625         Fire Marshal to provide certain recommendations to the
 2626         Governor and the Legislature by a specified date;
 2627         amending s. 718.103, F.S.; defining the term
 2628         “alternative funding method”; amending s. 718.111,
 2629         F.S.; revising the types of records that constitute
 2630         the official records of a condominium association;
 2631         requiring associations to maintain specified records
 2632         for a certain timeframe; specifying that renters of a
 2633         unit have the right to inspect and copy certain
 2634         reports; requiring associations to post a copy of
 2635         certain reports and reserve studies on the
 2636         association’s website; revising rulemaking
 2637         requirements for the Division of Florida Condominiums,
 2638         Timeshares, and Mobile Homes of the Department of
 2639         Business and Professional Regulation; amending s.
 2640         718.112, F.S.; revising certification and education
 2641         requirements for directors of association boards;
 2642         revising requirements for association budgets;
 2643         revising applicability; prohibiting developers from
 2644         voting the voting interests allocated to its units to
 2645         waive the reserves or reduce funding of reserves
 2646         before turnover of control of an association;
 2647         requiring certain associations to periodically conduct
 2648         a study relating to reserves after a specified date;
 2649         requiring boards to annually review the results of
 2650         such study to determine if reserves are sufficient;
 2651         requiring the division to adopt rules; providing
 2652         requirements for the reserve study; revising
 2653         requirements for approval of using reserve funds for a
 2654         purpose other than authorized reserve expenditures;
 2655         requiring that budgets include specified disclosures
 2656         relating to reserve funds under certain circumstances
 2657         on or after a specified date; restating requirements
 2658         for associations relating to milestone inspections;
 2659         specifying that if the officers or directors of a
 2660         condominium association fail to have a milestone
 2661         inspection performed, such failure is a breach of
 2662         their fiduciary relationship to the unit owners;
 2663         amending s. 718.113, F.S.; requiring associations to
 2664         provide for the maintenance, repair, and replacement
 2665         of condominium property; providing an exception;
 2666         requiring associations to perform specified required
 2667         maintenance under certain circumstances; specifying
 2668         that necessary maintenance, repair, or replacement of
 2669         condominium property does not require unit owner
 2670         approval; specifying that associations are not liable
 2671         for certain expenses if a unit is vacated or access to
 2672         a common element is denied for specified reasons;
 2673         amending s. 718.1255, F.S.; revising the definition of
 2674         the term “dispute”; specifying that certain disputes
 2675         are not subject to certain nonbinding arbitration and
 2676         must be submitted to presuit mediation; amending s.
 2677         718.301, F.S.; revising reporting requirements
 2678         relating to the transfer of association control;
 2679         amending s. 718.501, F.S.; requiring certain
 2680         associations to provide certain information and
 2681         updates to the division by a specified date and within
 2682         a specified timeframe; requiring the division to
 2683         compile a list with certain information and post such
 2684         list on its website; amending s. 718.503, F.S.;
 2685         revising the documents that must be delivered to a
 2686         prospective buyer or lessee of a residential unit;
 2687         revising requirements for nondeveloper disclosures;
 2688         amending s. 718.504, F.S.; revising requirements for
 2689         prospectuses and offering circulars; amending s.
 2690         719.103, F.S.; defining the term “alternative funding
 2691         method”; amending s. 719.104, F.S.; revising the types
 2692         of records that constitute the official records of a
 2693         cooperative association; requiring associations to
 2694         maintain specified records for a certain timeframe;
 2695         specifying that renters of a unit have the right to
 2696         inspect and copy certain reports; revising rulemaking
 2697         requirements for the division; specifying that
 2698         maintenance of the cooperative property and common
 2699         areas is the responsibility of associations; providing
 2700         an exception; requiring associations to perform
 2701         specified required maintenance under certain
 2702         circumstances; specifying that necessary maintenance,
 2703         repair, or replacement of cooperative property does
 2704         not require unit owner approval; specifying that
 2705         associations are not liable for certain expenses if a
 2706         unit must be vacated or if access to a common area is
 2707         denied for specified reasons; amending s. 719.106,
 2708         F.S.; revising certification and education
 2709         requirements for directors of association boards;
 2710         revising requirements for association budgets;
 2711         revising applicability; prohibiting developers from
 2712         voting to waive the reserves or reduce the funding of
 2713         reserves before turnover of control of an association;
 2714         revising requirements for the use of reserve funds for
 2715         a purpose other than authorized reverse expenditures;
 2716         requiring certain associations to periodically conduct
 2717         a study relating to reserves after a specified date;
 2718         requiring boards to annually review the results of
 2719         such study to determine if reserves are sufficient;
 2720         requiring the division to adopt rules; providing
 2721         requirements for the reserve study; requiring that
 2722         budgets include specified disclosures relating to
 2723         reserve funds under certain circumstances on or after
 2724         a specified date; restating requirements for
 2725         associations relating to milestone inspections;
 2726         specifying that if the officers or directors of a
 2727         cooperative association fail to have a milestone
 2728         inspection performed, such failure is a breach of
 2729         their fiduciary relationship to the unit owners;
 2730         amending s. 719.301, F.S.; requiring developers to
 2731         deliver a turnover inspection report relating to
 2732         cooperative property under certain circumstances;
 2733         requiring developers to deliver a copy of certain
 2734         reserve studies and statements when relinquishing
 2735         control of an association; amending s. 719.501, F.S.;
 2736         requiring certain associations to provide certain
 2737         information and updates to the division by a specified
 2738         date and within a specified time; requiring the
 2739         division to compile a list with certain information
 2740         and post such list on its website; amending s.
 2741         719.503, F.S.; revising the documents that must be
 2742         delivered to a prospective buyer or lessee of a
 2743         residential unit; revising nondeveloper disclosure
 2744         requirements; amending s. 719.504, F.S.; revising
 2745         requirements for prospectuses and offering circulars;
 2746         amending ss. 558.002, 718.115, 718.116, 718.121,
 2747         718.706, and 720.3085, F.S.; conforming cross
 2748         references; reenacting s. 719.1255, F.S., relating to
 2749         alternative resolution of disputes, to incorporate the
 2750         amendment made to s. 718.1255, F.S., in a reference
 2751         thereto; providing an effective date.