Florida Senate - 2022                                    SB 1702
       
       
        
       By Senator Bradley
       
       
       
       
       
       5-01086B-22                                           20221702__
    1                        A bill to be entitled                      
    2         An act relating to mandatory building inspections;
    3         creating s. 553.899, F.S.; providing legislative
    4         findings; defining the term “milestone inspection”;
    5         specifying that the purpose of a milestone inspection
    6         is not to determine compliance with the Florida
    7         Building Code; requiring owners of certain multifamily
    8         residential buildings to have milestone inspections
    9         performed at specified times; requiring the boards of
   10         administration for condominium and cooperative
   11         associations to arrange for milestone inspections of
   12         condominium buildings and cooperative buildings,
   13         respectively; specifying that such associations are
   14         responsible for costs relating to milestone
   15         inspections; providing applicability; requiring that
   16         initial milestone inspections for certain buildings be
   17         performed before a specified date; specifying that
   18         milestone inspections consist of two phases; providing
   19         requirements for each phase of a milestone inspection;
   20         requiring architects and engineers performing a
   21         milestone inspection to submit a sealed copy of the
   22         inspection report to certain entities; requiring
   23         boards of administrations of condominium associations
   24         and cooperative associations to distribute a copy of
   25         each inspection report for a condominium building or
   26         cooperative building to unit owners and publish the
   27         report on the association’s website under certain
   28         circumstances; authorizing local enforcement agencies
   29         to prescribe timelines and penalties relating to
   30         milestone inspections; requiring the Florida Building
   31         Commission to develop certain standards by a specified
   32         date and make such standards available to local
   33         governments for adoption; amending s. 718.111, F.S.;
   34         revising the types of records that constitute the
   35         official records of a condominium association;
   36         amending s. 718.503, F.S.; revising nondeveloper
   37         disclosure requirements relating to resales of
   38         residential condominium units; amending s. 719.104,
   39         F.S.; revising the types of records that constitute
   40         the official records of a cooperative association;
   41         amending s. 719.503, F.S.; entitling prospective
   42         purchasers of an interest in a cooperative to a copy
   43         of milestone inspection reports; providing an
   44         effective date.
   45          
   46  Be It Enacted by the Legislature of the State of Florida:
   47  
   48         Section 1. Section 553.899, Florida Statutes, is created to
   49  read:
   50         553.899 Mandatory structural inspections for multifamily
   51  residential 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 multifamily residential 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 term “milestone
   62  inspection” means a structural inspection of a building by a
   63  licensed architect or engineer authorized to practice in this
   64  state for the purposes of attesting to the life safety and
   65  adequacy of the structural components of the building and, to
   66  the extent reasonably possible, determining the general
   67  structural condition of the building as it affects the safety of
   68  such building. The purpose of such inspection is not to
   69  determine if the condition of an existing building is in
   70  compliance with the Florida Building Code.
   71         (3)The owner of a multifamily residential building that is
   72  greater than three stories in height must have a milestone
   73  inspection performed by December 31 of the year in which the
   74  building reaches 30 years of age, based on the date the
   75  certificate of occupancy was issued, and every 10 years
   76  thereafter. The owner of a multifamily residential building that
   77  is greater than three stories in height and is located within 3
   78  miles of a coastline as defined in s. 376.031 must have a
   79  milestone inspection performed by December 31 of the year in
   80  which the building reaches 20 years of age, based on the date
   81  the certificate of occupancy was issued, and every 7 years
   82  thereafter. If a condominium building or cooperative building is
   83  required to have a milestone inspection performed pursuant to
   84  this section, the board of administration of the condominium
   85  association or cooperative association must arrange for the
   86  milestone inspection to be performed and is responsible for
   87  ensuring compliance with the requirements of this section. The
   88  building owner or board of administration of a condominium
   89  association or cooperative association responsible for the
   90  milestone inspection is responsible for all costs associated
   91  with the inspection. This subsection does not apply to two
   92  family dwellings or to buildings less than 3,500 square feet.
   93         (4)If a milestone inspection is required under this
   94  section and the building’s certificate of occupancy was issued
   95  on or before July 1, 1992, the building’s initial milestone
   96  inspection must be performed before December 31, 2024.
   97         (5)A milestone inspection consists of two phases:
   98         (a)For phase one of the milestone inspection, a licensed
   99  architect or engineer authorized to practice in this state shall
  100  perform a visual examination of all habitable and nonhabitable
  101  areas of a building and provide a qualitative assessment of the
  102  structural conditions of the building. Surface imperfections
  103  such as cracks, distortion, sagging, excessive deflections,
  104  significant misalignment, signs of leakage, or peeling of
  105  finishes constitute signs of structural distress. If the
  106  architect or engineer finds no signs of structural distress to
  107  any building components under visual examination, phase two of
  108  the inspection, as provided in paragraph (b), is not required.
  109  An architect or engineer who completes the first phase of a
  110  milestone inspection shall prepare and submit an inspection
  111  report pursuant to subsection (6).
  112         (b)Phase two of the milestone inspection must be performed
  113  if any structural distress is identified during phase one. Only
  114  a special inspector as defined in s. 553.71 may perform a phase
  115  two inspection. A phase two inspection may involve destructive
  116  or nondestructive testing at the special inspector’s direction.
  117  The inspection may be as extensive or as limited as necessary to
  118  fully assess damaged areas of the building in order to confirm
  119  that the building is safe for its intended use or to recommend a
  120  program for fully assessing and repairing damaged portions of
  121  the building. When determining testing locations, the special
  122  inspector must give preference to locations that are the least
  123  disruptive and most easily repairable while still being
  124  representative of the structure. A special inspector who
  125  completes the second phase of a milestone inspection shall
  126  prepare and submit an inspection report pursuant to subsection
  127  (6).
  128         (6)Upon completion of a phase one or phase two milestone
  129  inspection, the architect or engineer who performed the
  130  inspection must submit a sealed copy of the inspection report to
  131  the building owner or, if the building is a condominium or
  132  cooperative, to the board of administration of the condominium
  133  or cooperative, and to the building official of the local
  134  government which has jurisdiction. For a milestone inspection of
  135  a condominium or cooperative, the board of administration must
  136  distribute a copy of each inspection report to each condominium
  137  unit owner or cooperative unit owner, regardless of whether
  138  there are deficiencies reported, and, if the association is
  139  required by law to have a website, must publish the report on
  140  the association’s website.
  141         (7)A local enforcement agency may prescribe timelines and
  142  penalties with respect to compliance with this section.
  143         (8)The commission shall develop comprehensive structural
  144  and life safety standards for maintaining and inspecting all
  145  building types and structures in this state by December 31,
  146  2022. The standards are in addition to those provided in this
  147  section and must be made available for local governments to
  148  adopt at their discretion.
  149         Section 2. Paragraph (a) of subsection (12) of section
  150  718.111, Florida Statutes, is amended to read:
  151         718.111 The association.—
  152         (12) OFFICIAL RECORDS.—
  153         (a) From the inception of the association, the association
  154  shall maintain each of the following items, if applicable, which
  155  constitutes the official records of the association:
  156         1. A copy of the plans, permits, warranties, and other
  157  items provided by the developer under s. 718.301(4).
  158         2. A photocopy of the recorded declaration of condominium
  159  of each condominium operated by the association and each
  160  amendment to each declaration.
  161         3. A photocopy of the recorded bylaws of the association
  162  and each amendment to the bylaws.
  163         4. A certified copy of the articles of incorporation of the
  164  association, or other documents creating the association, and
  165  each amendment thereto.
  166         5. A copy of the current rules of the association.
  167         6. A book or books that contain the minutes of all meetings
  168  of the association, the board of administration, and the unit
  169  owners.
  170         7. A current roster of all unit owners and their mailing
  171  addresses, unit identifications, voting certifications, and, if
  172  known, telephone numbers. The association shall also maintain
  173  the e-mail addresses and facsimile numbers of unit owners
  174  consenting to receive notice by electronic transmission. The e
  175  mail addresses and facsimile numbers are not accessible to unit
  176  owners if consent to receive notice by electronic transmission
  177  is not provided in accordance with sub-subparagraph (c)3.e.
  178  However, the association is not liable for an inadvertent
  179  disclosure of the e-mail address or facsimile number for
  180  receiving electronic transmission of notices.
  181         8. All current insurance policies of the association and
  182  condominiums operated by the association.
  183         9. A current copy of any management agreement, lease, or
  184  other contract to which the association is a party or under
  185  which the association or the unit owners have an obligation or
  186  responsibility.
  187         10. Bills of sale or transfer for all property owned by the
  188  association.
  189         11. Accounting records for the association and separate
  190  accounting records for each condominium that the association
  191  operates. Any person who knowingly or intentionally defaces or
  192  destroys such records, or who knowingly or intentionally fails
  193  to create or maintain such records, with the intent of causing
  194  harm to the association or one or more of its members, is
  195  personally subject to a civil penalty pursuant to s.
  196  718.501(1)(d). The accounting records must include, but are not
  197  limited to:
  198         a. Accurate, itemized, and detailed records of all receipts
  199  and expenditures.
  200         b. A current account and a monthly, bimonthly, or quarterly
  201  statement of the account for each unit designating the name of
  202  the unit owner, the due date and amount of each assessment, the
  203  amount paid on the account, and the balance due.
  204         c. All audits, reviews, accounting statements, and
  205  financial reports of the association or condominium.
  206         d. All contracts for work to be performed. Bids for work to
  207  be performed are also considered official records and must be
  208  maintained by the association for at least 1 year after receipt
  209  of the bid.
  210         12. Ballots, sign-in sheets, voting proxies, and all other
  211  papers and electronic records relating to voting by unit owners,
  212  which must be maintained for 1 year from the date of the
  213  election, vote, or meeting to which the document relates,
  214  notwithstanding paragraph (b).
  215         13. All rental records if the association is acting as
  216  agent for the rental of condominium units.
  217         14. A copy of the current question and answer sheet as
  218  described in s. 718.504.
  219         15. A copy of the inspection report as described in s.
  220  718.301(4)(p).
  221         16. A copy of all milestone inspection reports required by
  222  s. 553.899.
  223         17. Bids for materials, equipment, or services.
  224         18.17. All affirmative acknowledgments made pursuant to s.
  225  718.121(4)(c).
  226         19.18. All other written records of the association not
  227  specifically included in the foregoing which are related to the
  228  operation of the association.
  229         Section 3. Paragraph (c) of subsection (2) of section
  230  718.503, Florida Statutes, is amended to read:
  231         718.503 Developer disclosure prior to sale; nondeveloper
  232  unit owner disclosure prior to sale; voidability.—
  233         (2) NONDEVELOPER DISCLOSURE.—
  234         (c) Each contract entered into after July 1, 1992, for the
  235  resale of a residential unit shall contain in conspicuous type
  236  either:
  237         1. A clause which states: THE BUYER HEREBY ACKNOWLEDGES
  238  THAT BUYER HAS BEEN PROVIDED A CURRENT COPY OF THE DECLARATION
  239  OF CONDOMINIUM; THE, ARTICLES OF INCORPORATION OF THE
  240  ASSOCIATION; THE, BYLAWS AND RULES OF THE ASSOCIATION; ALL
  241  MILESTONE INSPECTION REPORTS REQUIRED BY SECTION 553.899,
  242  FLORIDA STATUTES; AND A COPY OF THE MOST RECENT YEAR-END
  243  FINANCIAL INFORMATION AND FREQUENTLY ASKED QUESTIONS AND ANSWERS
  244  DOCUMENT MORE THAN 3 DAYS, EXCLUDING SATURDAYS, SUNDAYS, AND
  245  LEGAL HOLIDAYS, PRIOR TO EXECUTION OF THIS CONTRACT; or
  246         2. A clause which states: THIS AGREEMENT IS VOIDABLE BY
  247  BUYER BY DELIVERING WRITTEN NOTICE OF THE BUYER’S INTENTION TO
  248  CANCEL WITHIN 3 DAYS, EXCLUDING SATURDAYS, SUNDAYS, AND LEGAL
  249  HOLIDAYS, AFTER THE DATE OF EXECUTION OF THIS AGREEMENT BY THE
  250  BUYER AND RECEIPT BY BUYER OF A CURRENT COPY OF THE DECLARATION
  251  OF CONDOMINIUM; THE, ARTICLES OF INCORPORATION; THE, BYLAWS AND
  252  RULES OF THE ASSOCIATION; ALL MILESTONE INSPECTION REPORTS
  253  REQUIRED BY SECTION 553.899, FLORIDA STATUTES; AND A COPY OF THE
  254  MOST RECENT YEAR-END FINANCIAL INFORMATION AND FREQUENTLY ASKED
  255  QUESTIONS AND ANSWERS DOCUMENT IF SO REQUESTED IN WRITING. ANY
  256  PURPORTED WAIVER OF THESE VOIDABILITY RIGHTS SHALL BE OF NO
  257  EFFECT. BUYER MAY EXTEND THE TIME FOR CLOSING FOR A PERIOD OF
  258  NOT MORE THAN 3 DAYS, EXCLUDING SATURDAYS, SUNDAYS, AND LEGAL
  259  HOLIDAYS, AFTER THE BUYER RECEIVES THE DECLARATION, ARTICLES OF
  260  INCORPORATION, BYLAWS AND RULES OF THE ASSOCIATION, AND A COPY
  261  OF THE MOST RECENT YEAR-END FINANCIAL INFORMATION AND FREQUENTLY
  262  ASKED QUESTIONS AND ANSWERS DOCUMENT IF REQUESTED IN WRITING.
  263  BUYER’S RIGHT TO VOID THIS AGREEMENT SHALL TERMINATE AT CLOSING.
  264  
  265  A contract that does not conform to the requirements of this
  266  paragraph is voidable at the option of the purchaser prior to
  267  closing.
  268         Section 4. Paragraph (a) of subsection (2) of section
  269  719.104, Florida Statutes, is amended to read:
  270         719.104 Cooperatives; access to units; records; financial
  271  reports; assessments; purchase of leases.—
  272         (2) OFFICIAL RECORDS.—
  273         (a) From the inception of the association, the association
  274  shall maintain a copy of each of the following, where
  275  applicable, which shall constitute the official records of the
  276  association:
  277         1. The plans, permits, warranties, and other items provided
  278  by the developer pursuant to s. 719.301(4).
  279         2. A photocopy of the cooperative documents.
  280         3. A copy of the current rules of the association.
  281         4. A book or books containing the minutes of all meetings
  282  of the association, of the board of directors, and of the unit
  283  owners.
  284         5. A current roster of all unit owners and their mailing
  285  addresses, unit identifications, voting certifications, and, if
  286  known, telephone numbers. The association shall also maintain
  287  the e-mail addresses and the numbers designated by unit owners
  288  for receiving notice sent by electronic transmission of those
  289  unit owners consenting to receive notice by electronic
  290  transmission. The e-mail addresses and numbers provided by unit
  291  owners to receive notice by electronic transmission shall be
  292  removed from association records when consent to receive notice
  293  by electronic transmission is revoked. However, the association
  294  is not liable for an erroneous disclosure of the e-mail address
  295  or the number for receiving electronic transmission of notices.
  296         6. All current insurance policies of the association.
  297         7. A current copy of any management agreement, lease, or
  298  other contract to which the association is a party or under
  299  which the association or the unit owners have an obligation or
  300  responsibility.
  301         8. Bills of sale or transfer for all property owned by the
  302  association.
  303         9. Accounting records for the association and separate
  304  accounting records for each unit it operates, according to good
  305  accounting practices. The accounting records shall include, but
  306  not be limited to:
  307         a. Accurate, itemized, and detailed records of all receipts
  308  and expenditures.
  309         b. A current account and a monthly, bimonthly, or quarterly
  310  statement of the account for each unit designating the name of
  311  the unit owner, the due date and amount of each assessment, the
  312  amount paid upon the account, and the balance due.
  313         c. All audits, reviews, accounting statements, and
  314  financial reports of the association.
  315         d. All contracts for work to be performed. Bids for work to
  316  be performed shall also be considered official records and shall
  317  be maintained for a period of 1 year.
  318         10. Ballots, sign-in sheets, voting proxies, and all other
  319  papers and electronic records relating to voting by unit owners,
  320  which shall be maintained for a period of 1 year after the date
  321  of the election, vote, or meeting to which the document relates.
  322         11. All rental records where the association is acting as
  323  agent for the rental of units.
  324         12. A copy of the current question and answer sheet as
  325  described in s. 719.504.
  326         13. All affirmative acknowledgments made pursuant to s.
  327  719.108(3)(b)3.
  328         14. All milestone inspection reports required by s.
  329  553.899.
  330         15. All other written records of the association not
  331  specifically included in the foregoing which are related to the
  332  operation of the association.
  333         Section 5. Paragraph (a) of subsection (2) of section
  334  719.503, Florida Statutes, is amended to read:
  335         719.503 Disclosure prior to sale.—
  336         (2) NONDEVELOPER DISCLOSURE.—
  337         (a) Each unit owner who is not a developer as defined by
  338  this chapter must comply with the provisions of this subsection
  339  prior to the sale of his or her interest in the association.
  340  Each prospective purchaser who has entered into a contract for
  341  the purchase of an interest in a cooperative is entitled, at the
  342  seller’s expense, to a current copy of the articles of
  343  incorporation of the association, the bylaws, and rules of the
  344  association, as well as a copy of the question and answer sheet
  345  as provided in s. 719.504 and all milestone inspection reports
  346  required by s. 553.899.
  347         Section 6. This act shall take effect July 1, 2022.