Florida Senate - 2023 SENATOR AMENDMENT
Bill No. CS for CS for SB 154
Ì403744*Î403744
LEGISLATIVE ACTION
Senate . House
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Senator Bradley moved the following:
1 Senate Amendment (with title amendment)
2
3 Delete lines 1137 - 1532
4 and insert:
5 719.301(4)(p) and (q) until the association obtains new
6 maintenance protocols from a licensed professional engineer or
7 architect or a person certified as a reserve specialist or
8 professional reserve analyst by the Community Associations
9 Institute or the Association of Professional Reserve Analysts.
10 The declaration may provide that certain limited common elements
11 shall be maintained by those entitled to use the limited common
12 elements or that the association shall provide the maintenance,
13 either as a common expense or with the cost shared only by those
14 entitled to use the limited common elements. If the maintenance
15 is to be by the association at the expense of only those
16 entitled to use the limited common elements, the declaration
17 shall describe in detail the method of apportioning such costs
18 among those entitled to use the limited common elements, and the
19 association may use the provisions of s. 719.108 to enforce
20 payment of the shares of such costs by the unit owners entitled
21 to use the limited common elements.
22 Section 12. Paragraphs (e), (j), (k), and (l) of subsection
23 (1) of section 719.106, Florida Statutes, are amended to read:
24 719.106 Bylaws; cooperative ownership.—
25 (1) MANDATORY PROVISIONS.—The bylaws or other cooperative
26 documents shall provide for the following, and if they do not,
27 they shall be deemed to include the following:
28 (e) Budget procedures.—
29 1. The board of administration shall mail, hand deliver, or
30 electronically transmit to each unit owner at the address last
31 furnished to the association, a meeting notice and copies of the
32 proposed annual budget of common expenses to the unit owners not
33 less than 14 days prior to the meeting at which the budget will
34 be considered. Evidence of compliance with this 14-day notice
35 must be made by an affidavit executed by an officer of the
36 association or the manager or other person providing notice of
37 the meeting and filed among the official records of the
38 association. The meeting must be open to the unit owners.
39 2. If an adopted budget requires assessment against the
40 unit owners in any fiscal or calendar year which exceeds 115
41 percent of the assessments for the preceding year, the board
42 upon written application of 10 percent of the voting interests
43 to the board, shall call a special meeting of the unit owners
44 within 30 days, upon not less than 10 days’ written notice to
45 each unit owner. At the special meeting, unit owners shall
46 consider and enact a budget. Unless the bylaws require a larger
47 vote, the adoption of the budget requires a vote of not less
48 than a majority of all the voting interests.
49 3. The board of administration may, in any event, propose a
50 budget to the unit owners at a meeting of members or by writing,
51 and if the budget or proposed budget is approved by the unit
52 owners at the meeting or by a majority of all voting interests
53 in writing, the budget is adopted. If a meeting of the unit
54 owners has been called and a quorum is not attained or a
55 substitute budget is not adopted by the unit owners, the budget
56 adopted by the board of directors goes into effect as scheduled.
57 4. In determining whether assessments exceed 115 percent of
58 similar assessments for prior years, any authorized provisions
59 for reasonable reserves for repair or replacement of cooperative
60 property, anticipated expenses by the association which are not
61 anticipated to be incurred on a regular or annual basis,
62 insurance premiums, or assessments for betterments to the
63 cooperative property must be excluded from computation. However,
64 as long as the developer is in control of the board of
65 administration, the board may not impose an assessment for any
66 year greater than 115 percent of the prior fiscal or calendar
67 year’s assessment without approval of a majority of all voting
68 interests.
69 (j) Annual budget.—
70 1. The proposed annual budget of common expenses must be
71 detailed and must show the amounts budgeted by accounts and
72 expense classifications, including, if applicable, but not
73 limited to, those expenses listed in s. 719.504(20). The board
74 of administration shall adopt the annual budget at least 14 days
75 before the start of the association’s fiscal year. In the event
76 that the board fails to timely adopt the annual budget a second
77 time, it is deemed a minor violation and the prior year’s budget
78 shall continue in effect until a new budget is adopted.
79 2. In addition to annual operating expenses, the budget
80 must include reserve accounts for capital expenditures and
81 deferred maintenance. These accounts must include, but not be
82 limited to, roof replacement, building painting, and pavement
83 resurfacing, regardless of the amount of deferred maintenance
84 expense or replacement cost, and for any other items for which
85 the deferred maintenance expense or replacement cost exceeds
86 $10,000. The amount to be reserved for an item is determined by
87 the association’s most recent structural integrity reserve study
88 that must be completed by December 31, 2024. If the amount to be
89 reserved for an item is not in the association’s initial or most
90 recent structural integrity reserve study or the association has
91 not completed a structural integrity reserve study, the amount
92 must be computed by means of a formula which is based upon
93 estimated remaining useful life and estimated replacement cost
94 or deferred maintenance expense of the reserve item. In a budget
95 adopted by an association that is required to obtain a
96 structural integrity reserve study, reserves must be maintained
97 for the items identified in paragraph (k) for which the
98 association is responsible pursuant to the declaration, and the
99 reserve amount for such items must be based on the findings and
100 recommendations of the association’s most recent structural
101 integrity reserve study. With respect to items for which an
102 estimate of useful life is not readily ascertainable or with an
103 estimated remaining useful life of greater than 25 years, an
104 association is not required to reserve replacement costs for
105 such items, but an association must reserve the amount of
106 deferred maintenance expense, if any, which is recommended by
107 the structural integrity reserve study for such items. The
108 association may adjust replacement reserve assessments annually
109 to take into account an inflation adjustment and any changes in
110 estimates or extension of the useful life of a reserve item
111 caused by deferred maintenance. The members of a unit-owner
112 controlled association may determine, by a majority vote of the
113 total voting interests at a duly called meeting of the
114 association, for a fiscal year to provide no reserves or
115 reserves less adequate than required by this subsection. Before
116 turnover of control of an association by a developer to unit
117 owners other than a developer under s. 719.301, the developer
118 controlled association may not vote to waive the reserves or
119 reduce funding of the reserves. For a budget adopted on or after
120 Effective December 31, 2024, a unit-owner-controlled association
121 that must obtain a structural integrity reserve study may not
122 determine to provide no reserves or reserves less adequate than
123 required by this paragraph for items listed in paragraph (k). If
124 a meeting of the unit owners has been called to determine to
125 provide no reserves, or reserves less adequate than required,
126 and such result is not attained or a quorum is not attained, the
127 reserves as included in the budget shall go into effect.
128 3. Reserve funds and any interest accruing thereon shall
129 remain in the reserve account or accounts, and shall be used
130 only for authorized reserve expenditures unless their use for
131 other purposes is approved in advance by a vote of the majority
132 of the total voting interests, voting in person or by limited
133 proxy at a duly called meeting of the association. Before
134 turnover of control of an association by a developer to unit
135 owners other than the developer under s. 719.301, the developer
136 may not vote to use reserves for purposes other than that for
137 which they were intended. For a budget adopted on or after
138 Effective December 31, 2024, members of a unit-owner-controlled
139 association that must obtain a structural integrity reserve
140 study may not vote to use reserve funds, or any interest
141 accruing thereon, that are reserved for items listed in
142 paragraph (k) for purposes other than the replacement or
143 deferred maintenance costs of the components listed in paragraph
144 (k) their intended purpose.
145 (k) Structural integrity reserve study.—
146 1. A residential cooperative An association must have a
147 structural integrity reserve study completed at least every 10
148 years for each building on the cooperative property that is
149 three stories or higher in height as determined by the Florida
150 Building Code that includes, at a minimum, a study of the
151 following items as related to the structural integrity and
152 safety of the building:
153 a. Roof.
154 b. Structure, including load-bearing walls and or other
155 primary structural members and primary structural systems as
156 those terms are defined in s. 627.706.
157 c. Floor.
158 d. Foundation.
159 e. Fireproofing and fire protection systems.
160 d.f. Plumbing.
161 e.g. Electrical systems.
162 f.h. Waterproofing and exterior painting.
163 g.i. Windows and exterior doors.
164 h.j. Any other item that has a deferred maintenance expense
165 or replacement cost that exceeds $10,000 and the failure to
166 replace or maintain such item negatively affects the items
167 listed in sub-subparagraphs a.-g. sub-subparagraphs a.-i., as
168 determined by the licensed engineer or architect performing the
169 visual inspection portion of the structural integrity reserve
170 study.
171 2. A structural integrity reserve study is based on a
172 visual inspection of the cooperative property. A structural
173 integrity reserve study may be performed by any person qualified
174 to perform such study. However, the visual inspection portion of
175 the structural integrity reserve study must be performed or
176 verified by an engineer licensed under chapter 471, an architect
177 licensed under chapter 481, or a person certified as a reserve
178 specialist or professional reserve analyst by the Community
179 Associations Institute or the Association of Professional
180 Reserve Analysts.
181 3. At a minimum, a structural integrity reserve study must
182 identify each item of the cooperative property being visually
183 inspected, state the estimated remaining useful life and the
184 estimated replacement cost or deferred maintenance expense of
185 each item of the cooperative property being visually inspected,
186 and provide a reserve funding schedule with a recommended annual
187 reserve amount that achieves the estimated replacement cost or
188 deferred maintenance expense of each item of cooperative
189 property being visually inspected by the end of the estimated
190 remaining useful life of the item. The structural integrity
191 reserve study may recommend that reserves do not need to be
192 maintained for any item for which an estimate of useful life and
193 an estimate of replacement cost cannot be determined, or the
194 study may recommend a deferred maintenance expense amount for
195 such item. The structural integrity reserve study may recommend
196 that reserves for replacement costs do not need to be maintained
197 for any item with an estimated remaining useful life of greater
198 than 25 years, but the study may recommend a deferred
199 maintenance expense amount for such item.
200 4. This paragraph does not apply to buildings less than
201 three stories in height; single-family, two-family, or three
202 family dwellings with three or fewer habitable stories above
203 ground; any portion or component of a building that has not been
204 submitted to the cooperative form of ownership; or any portion
205 or component of a building that is maintained by a party other
206 than the association.
207 5. Before a developer turns over control of an association
208 to unit owners other than the developer, the developer must have
209 a structural integrity reserve study completed for each building
210 on the cooperative property that is three stories or higher in
211 height.
212 6.3. Associations existing on or before July 1, 2022, which
213 are controlled by unit owners other than the developer, must
214 have a structural integrity reserve study completed by December
215 31, 2024, for each building on the cooperative property that is
216 three stories or higher in height. An association that is
217 required to complete a milestone inspection on or before
218 December 31, 2026, in accordance with s. 553.899 may complete
219 the structural integrity reserve study simultaneously with the
220 milestone inspection. In no event may the structural integrity
221 reserve study be completed after December 31, 2026.
222 7. If the milestone inspection required by s. 553.899, or
223 an inspection completed for a similar local requirement, was
224 performed within the past 5 years and meets the requirements of
225 this paragraph, such inspection may be used in place of the
226 visual inspection portion of the structural integrity reserve
227 study.
228 8.4. If the officers or directors of an association
229 willfully and knowingly fail fails to complete a structural
230 integrity reserve study pursuant to this paragraph, such failure
231 is a breach of an officer’s and director’s fiduciary
232 relationship to the unit owners under s. 719.104(9) s.
233 719.104(8).
234 (l) Mandatory milestone inspections.—If an association is
235 required to have a milestone inspection performed pursuant to s.
236 553.899, the association must arrange for the milestone
237 inspection to be performed and is responsible for ensuring
238 compliance with the requirements of s. 553.899. The association
239 is responsible for all costs associated with the milestone
240 inspection attributable to the portions of the building which
241 the association is responsible for maintaining under the
242 governing documents of the association. If the officers or
243 directors of an association willfully and knowingly fail to have
244 a milestone inspection performed pursuant to s. 553.899, such
245 failure is a breach of the officers’ and directors’ fiduciary
246 relationship to the unit owners under s. 719.104(9)(a) s.
247 719.104(8)(a). Within 14 days after receipt of a written notice
248 from the local enforcement agency that a milestone inspection is
249 required, the association must notify the unit owners of the
250 required milestone inspection and provide the date by which the
251 milestone inspection must be completed. Such notice may be given
252 by electronic submission to unit owners who consent to receive
253 notice by electronic submission or by posting on the
254 association’s website. Within 45 days after receiving Upon
255 completion of a phase one or phase two milestone inspection and
256 receipt of the inspector-prepared summary of the inspection
257 report from the architect or engineer who performed the
258 inspection, the association must distribute a copy of the
259 inspector-prepared summary of the inspection report to each unit
260 owner, regardless of the findings or recommendations in the
261 report, by United States mail or personal delivery at the
262 mailing address, property address, or any other address of the
263 owner provided to fulfill the association’s notice requirements
264 under this chapter and by electronic transmission to the e-mail
265 address or facsimile number provided to fulfill the
266 association’s notice requirements to unit owners who previously
267 consented to receive notice by electronic transmission; must
268 post a copy of the inspector-prepared summary in a conspicuous
269 place on the cooperative property; and must publish the full
270 report and inspector-prepared summary on the association’s
271 website, if the association is required to have a website.
272 Section 13. Present paragraph (q) of subsection (4) of
273 section 719.301, Florida Statutes, is redesignated as paragraph
274 (r), a new paragraph (q) is added to that subsection, and
275 paragraph (p) that subsection is amended, to read:
276 719.301 Transfer of association control.—
277 (4) When unit owners other than the developer elect a
278 majority of the members of the board of administration of an
279 association, the developer shall relinquish control of the
280 association, and the unit owners shall accept control.
281 Simultaneously, or for the purpose of paragraph (c) not more
282 than 90 days thereafter, the developer shall deliver to the
283 association, at the developer’s expense, all property of the
284 unit owners and of the association held or controlled by the
285 developer, including, but not limited to, the following items,
286 if applicable, as to each cooperative operated by the
287 association:
288 (p) Notwithstanding when the certificate of occupancy was
289 issued or the height of the building, a structural integrity
290 reserve study milestone inspection report in compliance with s.
291 719.106(1)(k) s. 553.899 included in the official records, under
292 seal of an architect or engineer authorized to practice in this
293 state or a person certified as a reserve specialist or
294 professional reserve analyst by the Community Associations
295 Institute or the Association of Professional Reserve Analysts,
296 attesting to required maintenance, condition, useful life, and
297 replacement costs of the following applicable cooperative
298 property comprising a turnover inspection report:
299 1. Roof.
300 2. Structure, including load-bearing walls and primary
301 structural members and primary structural systems as those terms
302 are defined in s. 627.706.
303 3. Fireproofing and fire protection systems.
304 4. Plumbing Elevators.
305 5. Electrical systems Heating and cooling systems.
306 6. Waterproofing and exterior painting Plumbing.
307 7. Windows and exterior doors Electrical systems.
308 8. Swimming pool or spa and equipment.
309 9. Seawalls.
310 10. Pavement and parking areas.
311 11. Drainage systems.
312 12. Painting.
313 13. Irrigation systems.
314 14. Waterproofing.
315 (q) Notwithstanding when the certificate of occupancy was
316 issued or the height of the building, a turnover inspection
317 report included in the official records, under seal of an
318 architect or engineer authorized to practice in this state or a
319 person certified as a reserve specialist or professional reserve
320 analyst by the Community Associations Institute or the
321 Association of Professional Reserve Analysts, and attesting to
322 required maintenance, condition, useful life, and replacement
323 costs of the following applicable cooperative property
324 comprising a turnover inspection report:
325 1. Elevators.
326 2. Heating and cooling systems.
327 3. Swimming pool or spa and equipment.
328 4. Seawalls.
329 5. Pavement and parking areas.
330 6. Drainage systems.
331 7. Irrigation systems.
332 Section 14. Paragraph (b) of subsection (1) and paragraph
333 (a) of subsection (2) of section 719.503, Florida Statutes, are
334 amended, and paragraph (d) is added to subsection (1) and
335 paragraph (d) is added to subsection (2) of that section, to
336 read:
337 719.503 Disclosure prior to sale.—
338 (1) DEVELOPER DISCLOSURE.—
339 (b) Copies of documents to be furnished to prospective
340 buyer or lessee.—Until such time as the developer has furnished
341 the documents listed below to a person who has entered into a
342 contract to purchase a unit or lease it for more than 5 years,
343 the contract may be voided by that person, entitling the person
344 to a refund of any deposit together with interest thereon as
345 provided in s. 719.202. The contract may be terminated by
346 written notice from the proposed buyer or lessee delivered to
347 the developer within 15 days after the buyer or lessee receives
348 all of the documents required by this section. The developer may
349 not close for 15 days after the execution of the agreement and
350 delivery of the documents to the buyer as evidenced by a receipt
351 for documents signed by the buyer unless the buyer is informed
352 in the 15-day voidability period and agrees to close before the
353 expiration of the 15 days. The developer shall retain in his or
354 her records a separate signed agreement as proof of the buyer’s
355 agreement to close before the expiration of the voidability
356 period. The developer must retain such proof for a period of 5
357 years after the date of the closing transaction. The documents
358 to be delivered to the prospective buyer are the prospectus or
359 disclosure statement with all exhibits, if the development is
360 subject to s. 719.504, or, if not, then copies of the following
361 which are applicable:
362 1. The question and answer sheet described in s. 719.504,
363 and cooperative documents, or the proposed cooperative documents
364 if the documents have not been recorded, which shall include the
365 certificate of a surveyor approximately representing the
366 locations required by s. 719.104.
367 2. The documents creating the association.
368 3. The bylaws.
369 4. The ground lease or other underlying lease of the
370 cooperative.
371 5. The management contract, maintenance contract, and other
372 contracts for management of the association and operation of the
373 cooperative and facilities used by the unit owners having a
374 service term in excess of 1 year, and any management contracts
375 that are renewable.
376 6. The estimated operating budget for the cooperative and a
377 schedule of expenses for each type of unit, including fees
378 assessed to a shareholder who has exclusive use of limited
379 common areas, where such costs are shared only by those entitled
380 to use such limited common areas.
381 7. The lease of recreational and other facilities that will
382 be used only by unit owners of the subject cooperative.
383 8. The lease of recreational and other common areas that
384 will be used by unit owners in common with unit owners of other
385 cooperatives.
386 9. The form of unit lease if the offer is of a leasehold.
387 10. Any declaration of servitude of properties serving the
388 cooperative but not owned by unit owners or leased to them or
389 the association.
390 11. If the development is to be built in phases or if the
391 association is to manage more than one cooperative, a
392 description of the plan of phase development or the arrangements
393 for the association to manage two or more cooperatives.
394 12. If the cooperative is a conversion of existing
395 improvements, the statements and disclosure required by s.
396 719.616.
397 13. The form of agreement for sale or lease of units.
398 14. A copy of the floor plan of the unit and the plot plan
399 showing the location of the residential buildings and the
400 recreation and other common areas.
401 15. A copy of all covenants and restrictions that will
402 affect the use of the property and are not contained in the
403 foregoing.
404 16. If the developer is required by state or local
405 authorities to obtain acceptance or approval of any dock or
406 marina facilities intended to serve the cooperative, a copy of
407 any such acceptance or approval acquired by the time of filing
408 with the division pursuant to s. 719.502(1) or a statement that
409 such acceptance or approval has not been acquired or received.
410 17. Evidence demonstrating that the developer has an
411 ownership, leasehold, or contractual interest in the land upon
412 which the cooperative is to be developed.
413 18. A copy of the inspector-prepared summary of the
414 milestone inspection report as described in s. 553.899 ss.
415 553.899 and 719.301(4)(p), or a statement in conspicuous type
416 indicating that the required milestone inspection described in
417 s. 553.899 has not been completed or that a milestone inspection
418 is not required, as if applicable.
419 19. A copy of the association’s most recent structural
420 integrity reserve study or a statement in conspicuous type
421 indicating that the association has not completed a required
422 structural integrity reserve study has not been completed or
423 that a structural integrity reserve study is not required, as
424 applicable.
425 20. A copy of the turnover inspection report described in
426 s. 719.301(4)(p) and (q) or a statement in conspicuous type
427 indicating that a turnover inspection report has not been
428 completed, as applicable.
429 (d) Milestone inspection, turnover inspection report, or
430 structural integrity reserve study.—If the association is
431 required to have completed a milestone inspection as described
432 in s. 553.899, a turnover inspection report for a turnover
433 inspection performed on or after July 1, 2023, or a structural
434 integrity reserve study, and the association has not completed
435 the milestone inspection, the turnover inspection report, or the
436 structural integrity reserve study, each contract entered into
437 after December 31, 2024, for the sale of a residential unit
438 shall contain in conspicuous type a statement indicating that
439 the association is required to have a milestone inspection, a
440 turnover inspection report, or a structural integrity reserve
441 study and has not completed such inspection, report, or study,
442 as appropriate. If the association is not required to have a
443 milestone inspection as described in s. 553.899 or a structural
444 integrity reserve study, each contract entered into after
445 December 31, 2024, for the sale of a residential unit shall
446 contain in conspicuous type a statement indicating that the
447 association is not required to have a milestone inspection or a
448 structural integrity reserve study, as appropriate. If the
449 association has completed a milestone inspection as described in
450 s. 553.899, a turnover inspection report for a turnover
451 inspection performed on or after July 1, 2023, or a structural
452 integrity reserve study, each contract entered into after
453 December 31, 2024, for the sale of a residential unit shall
454 contain in conspicuous type:
455 1. A clause which states: THE BUYER HEREBY ACKNOWLEDGES
456 THAT BUYER HAS BEEN PROVIDED A CURRENT COPY OF THE INSPECTOR
457 PREPARED SUMMARY OF THE MILESTONE INSPECTION REPORT AS DESCRIBED
458 IN SECTION 553.899, FLORIDA STATUTES, IF APPLICABLE; A COPY OF
459 THE TURNOVER INSPECTION REPORT DESCRIBED IN SECTION
460 719.301(4)(p) AND (q), FLORIDA STATUTES, IF APPLICABLE; AND A
461 COPY OF THE ASSOCIATION’S MOST RECENT STRUCTURAL INTEGRITY
462 RESERVE STUDY DESCRIBED IN SECTIONS 719.103(24) AND
463 719.106(1)(k), FLORIDA STATUTES, IF APPLICABLE, MORE THAN 15
464 DAYS, EXCLUDING SATURDAYS, SUNDAYS, AND LEGAL HOLIDAYS, PRIOR TO
465 EXECUTION OF THIS CONTRACT; and
466 2. A clause which states: THIS AGREEMENT IS VOIDABLE BY
467 BUYER BY DELIVERING WRITTEN NOTICE OF THE BUYER’S INTENTION TO
468 CANCEL WITHIN 15 DAYS, EXCLUDING SATURDAYS, SUNDAYS, AND LEGAL
469 HOLIDAYS, AFTER THE DATE OF EXECUTION OF THIS AGREEMENT BY THE
470 BUYER AND RECEIPT BY BUYER OF A CURRENT COPY OF THE INSPECTOR
471 PREPARED SUMMARY OF THE MILESTONE INSPECTION REPORT AS DESCRIBED
472 IN SECTION 553.899, FLORIDA STATUTES, IF APPLICABLE; A COPY OF
473 THE TURNOVER INSPECTION REPORT DESCRIBED IN SECTION
474 719.301(4)(p) AND (q), FLORIDA STATUTES, IF APPLICABLE; AND A
475 COPY OF THE ASSOCIATION’S MOST RECENT STRUCTURAL INTEGRITY
476 RESERVE STUDY DESCRIBED IN SECTIONS 719.103(24) AND
477 719.106(1)(k), FLORIDA STATUTES, IF APPLICABLE. ANY PURPORTED
478 WAIVER OF THESE VOIDABILITY RIGHTS SHALL BE OF NO EFFECT. BUYER
479 MAY EXTEND THE TIME FOR CLOSING FOR A PERIOD OF NOT MORE THAN 15
480 DAYS, EXCLUDING SATURDAYS, SUNDAYS, AND LEGAL HOLIDAYS, AFTER
481 THE BUYER RECEIVES A CURRENT COPY OF THE INSPECTOR-PREPARED
482 SUMMARY OF THE MILESTONE INSPECTION REPORT AS DESCRIBED IN
483 SECTION 553.899, FLORIDA STATUTES; A COPY OF THE TURNOVER
484 INSPECTION REPORT DESCRIBED IN SECTION 719.301(4)(p) AND (q),
485 FLORIDA STATUTES; OR A COPY OF THE ASSOCIATION’S MOST RECENT
486 STRUCTURAL INTEGRITY RESERVE STUDY DESCRIBED IN SECTIONS
487 719.103(24) AND 719.106(1)(k), FLORIDA STATUTES, IF REQUESTED IN
488 WRITING. BUYER’S RIGHT TO VOID THIS AGREEMENT SHALL TERMINATE AT
489 CLOSING.
490
491 A contract that does not conform to the requirements of this
492 paragraph is voidable at the option of the purchaser prior to
493 closing.
494 (2) NONDEVELOPER DISCLOSURE.—
495 (a) Each unit owner who is not a developer as defined by
496 this chapter must comply with this subsection before the sale of
497 his or her interest in the association. Each prospective
498 purchaser who has entered into a contract for the purchase of an
499 interest in a cooperative is entitled, at the seller’s expense,
500 to a current copy of all of the following:
501 1. The articles of incorporation of the association.
502 2. The bylaws and rules of the association.
503 3. A copy of the question and answer sheet as provided in
504 s. 719.504.
505 4. A copy of the inspector-prepared summary of the
506 milestone inspection report as described in s. 553.899 ss.
507 553.899 and 719.301(4)(p), if applicable.
508 5. A copy of the association’s most recent structural
509 integrity reserve study or a statement that the association has
510 not completed a structural integrity reserve study.
511 6. A copy of the inspection report described in s.
512 719.301(4)(p) and (q) for a turnover inspection performed on or
513 after July 1, 2023.
514 (d) If the association is required to have completed a
515 milestone inspection as described in s. 553.899, a turnover
516 inspection report for a turnover inspection performed on or
517 after July 1, 2023, or a structural integrity reserve study, and
518 the association has not completed the milestone inspection, the
519 turnover inspection report, or the structural integrity reserve
520 study, each contract entered into after December 31, 2024, for
521 the sale of a residential unit shall contain in conspicuous type
522 a statement indicating that the association is required to have
523 a milestone inspection, a turnover inspection report, or a
524 structural integrity reserve study and has not completed such
525 inspection, report, or study, as appropriate. If the association
526 is not required to have a milestone inspection as described in
527 s. 553.899 or a structural integrity reserve study, each
528 contract entered into after December 31, 2024, for the sale of a
529 residential unit shall contain in conspicuous type a statement
530 indicating that the association is not required to have a
531 milestone inspection or a structural integrity reserve study, as
532 appropriate. If the association has completed a milestone
533 inspection as described in s. 553.899, a turnover inspection
534 report for a turnover inspection performed on or after July 1,
535 2023, or a structural integrity reserve study, each contract
536 entered into after December 31, 2024, for the resale of a
537 residential unit shall contain in conspicuous type:
538 1. A clause which states: THE BUYER HEREBY ACKNOWLEDGES
539 THAT BUYER HAS BEEN PROVIDED A CURRENT COPY OF THE INSPECTOR
540 PREPARED SUMMARY OF THE MILESTONE INSPECTION REPORT AS DESCRIBED
541 IN SECTION 553.899, FLORIDA STATUTES, IF APPLICABLE; A COPY OF
542 THE TURNOVER INSPECTION REPORT DESCRIBED IN SECTION
543 719.301(4)(p) AND (q), FLORIDA STATUTES, IF APPLICABLE; AND A
544 COPY OF THE ASSOCIATION’S MOST RECENT STRUCTURAL INTEGRITY
545 RESERVE STUDY DESCRIBED IN SECTIONS 719.103(24) AND
546 719.106(1)(k), FLORIDA STATUTES, IF APPLICABLE, MORE THAN 3
547 DAYS, EXCLUDING SATURDAYS, SUNDAYS, AND LEGAL HOLIDAYS, PRIOR TO
548 EXECUTION OF THIS CONTRACT; and
549 2. A clause which states: THIS AGREEMENT IS VOIDABLE BY
550 BUYER BY DELIVERING WRITTEN NOTICE OF THE BUYER’S INTENTION TO
551 CANCEL WITHIN 3 DAYS, EXCLUDING SATURDAYS, SUNDAYS, AND LEGAL
552 HOLIDAYS, AFTER THE DATE OF EXECUTION OF THIS AGREEMENT BY THE
553 BUYER AND RECEIPT BY BUYER OF A CURRENT COPY OF THE INSPECTOR
554 PREPARED SUMMARY OF THE MILESTONE INSPECTION REPORT AS DESCRIBED
555 IN SECTION 553.899, FLORIDA STATUTES, IF APPLICABLE; A COPY OF
556 THE TURNOVER INSPECTION REPORT DESCRIBED IN SECTION
557 719.301(4)(p) AND (q), FLORIDA STATUTES, IF APPLICABLE; AND A
558 COPY OF THE ASSOCIATION’S MOST RECENT STRUCTURAL INTEGRITY
559 RESERVE STUDY DESCRIBED IN SECTIONS 719.103(24) AND
560 719.106(1)(k), FLORIDA STATUTES, IF APPLICABLE. ANY PURPORTED
561 WAIVER OF THESE VOIDABILITY RIGHTS SHALL BE OF NO EFFECT. BUYER
562 MAY EXTEND THE TIME FOR CLOSING FOR A PERIOD OF NOT MORE THAN 3
563 DAYS, EXCLUDING SATURDAYS, SUNDAYS, AND LEGAL HOLIDAYS, AFTER
564 THE BUYER RECEIVES A CURRENT COPY OF THE INSPECTOR-PREPARED
565 SUMMARY OF THE MILESTONE INSPECTION REPORT AS DESCRIBED IN
566 SECTION 553.899, FLORIDA STATUTES; A COPY OF THE TURNOVER
567 INSPECTION REPORT DESCRIBED IN SECTION 719.301(4)(p) AND (q),
568 FLORIDA STATUTES; OR A COPY OF THE ASSOCIATION’S MOST RECENT
569 STRUCTURAL INTEGRITY RESERVE STUDY DESCRIBED IN SECTIONS
570 719.103(24) AND 719.106(1)(k), FLORIDA STATUTES, IF REQUESTED IN
571 WRITING. BUYER’S RIGHT TO VOID THIS AGREEMENT SHALL TERMINATE AT
572 CLOSING.
573
574 A contract that does not conform to the requirements of this
575 paragraph is voidable at the option of the purchaser prior to
576 closing.
577 Section 15. Paragraph (a) of subsection (7) and paragraph
578 (c) of subsection (20) of section 719.504, Florida Statutes, are
579 amended to read:
580 719.504 Prospectus or offering circular.—Every developer of
581 a residential cooperative which contains more than 20
582 residential units, or which is part of a group of residential
583 cooperatives which will be served by property to be used in
584 common by unit owners of more than 20 residential units, shall
585 prepare a prospectus or offering circular and file it with the
586 Division of Florida Condominiums, Timeshares, and Mobile Homes
587 prior to entering into an enforceable contract of purchase and
588 sale of any unit or lease of a unit for more than 5 years and
589 shall furnish a copy of the prospectus or offering circular to
590 each buyer. In addition to the prospectus or offering circular,
591 each buyer shall be furnished a separate page entitled
592 “Frequently Asked Questions and Answers,” which must be in
593 accordance with a format approved by the division. This page
594 must, in readable language: inform prospective purchasers
595 regarding their voting rights and unit use restrictions,
596 including restrictions on the leasing of a unit; indicate
597 whether and in what amount the unit owners or the association is
598 obligated to pay rent or land use fees for recreational or other
599 commonly used facilities; contain a statement identifying that
600 amount of assessment which, pursuant to the budget, would be
601 levied upon each unit type, exclusive of any special
602 assessments, and which identifies the basis upon which
603 assessments are levied, whether monthly, quarterly, or
604 otherwise; state and identify any court cases in which the
605 association is currently a party of record in which the
606 association may face liability in excess of $100,000; and state
607 whether membership in a recreational facilities association is
608 mandatory and, if so, identify the fees currently charged per
609 unit type. The division shall by rule require such other
610 disclosure as in its judgment will assist prospective
611 purchasers. The prospectus or offering circular may include more
612 than one cooperative, although not all such units are being
613 offered for sale as of the date of the prospectus or offering
614 circular. The prospectus or offering circular must contain the
615 following information:
616 (7) A description of the recreational and other facilities
617 that will be used in common with other cooperatives, community
618 associations, or planned developments which require the payment
619 of the maintenance and expenses of such facilities, directly or
620 indirectly, by the unit owners. The description shall include,
621 but not be limited to, the following:
622 (a) Each building and facility committed to be built and a
623 summary description of the structural integrity of each building
624 for which reserves are required pursuant to s. 719.106(1)(k).
625
626 Descriptions shall include location, areas, capacities, numbers,
627 volumes, or sizes and may be stated as approximations or
628 minimums.
629 (20) An estimated operating budget for the cooperative and
630 the association, and a schedule of the unit owner’s expenses
631 shall be attached as an exhibit and shall contain the following
632 information:
633 (c) The estimated items of expenses of the cooperative and
634 the association, except as excluded under paragraph (b),
635 including, but not limited to, the following items, which shall
636 be stated as an association expense collectible by assessments
637 or as unit owners’ expenses payable to persons other than the
638 association:
639 1. Expenses for the association and cooperative:
640 a. Administration of the association.
641 b. Management fees.
642 c. Maintenance.
643 d. Rent for recreational and other commonly used areas.
644 e. Taxes upon association property.
645 f. Taxes upon leased areas.
646 g. Insurance.
647 h. Security provisions.
648 i. Other expenses.
649 j. Operating capital.
650 k. Reserves for all applicable items referenced in s.
651 719.106(1)(k).
652 l. Fee payable to the division.
653 2. Expenses for a unit owner:
654 a. Rent for the unit, if subject to a lease.
655 b. Rent payable by the unit owner directly to the lessor or
656 agent under any recreational lease or lease for the use of
657 commonly used areas, which use and payment are a mandatory
658 condition of ownership and are not included in the common
659 expense or assessments for common maintenance paid by the unit
660 owners to the association.
661
662 ================= T I T L E A M E N D M E N T ================
663 And the title is amended as follows:
664 Delete lines 71 - 84
665 and insert:
666 revising requirements relating to budget procedures;
667 revising cooperative association reserve account
668 requirements; revising requirements relating to
669 waiving reserve requirements or providing less
670 reserves than required by law; revising a prohibition
671 on using reserve funds or interest accrued on reserve
672 funds for certain purposes; revising requirements for
673 structural integrity reserve studies and mandatory
674 milestone inspections; providing applicability;
675 conforming provisions to changes made by the act;
676 amending s. 719.301, F.S.; revising items that
677 developers are required to deliver to an association
678 upon relinquishing control of the association;
679 amending s. 719.503, F.S.; revising the types of
680 documents developers are required to provide to
681 prospective buyers and lessees; revising the documents
682 that a prospective purchaser is entitled to when
683 purchasing an interest in cooperative from a unit
684 owner; requiring specified disclosures relating to
685 milestone inspections, turnover inspection reports,
686 and structural integrity reserve studies for certain
687 contracts entered into after a specified date;
688 amending s. 719.504, F.S.; revising requirements for
689 prospectuses and offering circulars;