Florida Senate - 2022                      CS for CS for SB 1702
       
       
        
       By the Committees on Rules; and Regulated Industries; and
       Senators Bradley, Rodriguez, and Garcia
       
       
       
       
       595-03329-22                                          20221702c2
    1                        A bill to be entitled                      
    2         An act relating to building safety; creating s.
    3         553.899, F.S.; providing legislative findings;
    4         defining the term “milestone inspection”; specifying
    5         that the purpose of a milestone inspection is not to
    6         determine compliance with the Florida Building Code or
    7         the firesafety code; requiring owners of certain
    8         multifamily residential buildings to have milestone
    9         inspections performed at specified times; requiring
   10         condominium and cooperative associations to arrange
   11         for milestone inspections of condominium buildings and
   12         cooperative buildings, respectively; specifying that
   13         such associations are responsible for costs relating
   14         to milestone inspections; providing applicability;
   15         requiring that initial milestone inspections for
   16         certain buildings be performed before a specified
   17         date; specifying that milestone inspections consist of
   18         two phases; providing requirements for each phase of a
   19         milestone inspection; requiring architects and
   20         engineers performing a milestone inspection to submit
   21         a sealed copy of the inspection report and a summary
   22         that includes specified findings and recommendations
   23         to certain entities; requiring condominium
   24         associations and cooperative associations to
   25         distribute and post a copy of each inspection report
   26         and summary in a specified manner; authorizing local
   27         enforcement agencies to prescribe timelines and
   28         penalties relating to milestone inspections; requiring
   29         the Florida Building Commission to develop certain
   30         standards by a specified date and make such standards
   31         available to local governments for adoption; amending
   32         s. 718.103, F.S.; defining the term “alternative
   33         funding method”; amending s. 718.111, F.S.; revising
   34         the types of records that constitute the official
   35         records of a condominium association; requiring
   36         associations to maintain specified records for a
   37         certain timeframe; specifying that renters of a unit
   38         have the right to inspect and copy certain reports;
   39         requiring associations to post a copy of certain
   40         reports and reserve studies on the association’s
   41         website; revising rulemaking requirements for the
   42         Division of Florida Condominiums, Timeshares, and
   43         Mobile Homes of the Department of Business and
   44         Professional Regulation; amending s. 718.112, F.S.;
   45         revising certification and education requirements for
   46         directors of association boards; revising requirements
   47         for association budgets; revising applicability;
   48         requiring certain associations to periodically have a
   49         study conducted relating to required reserves after a
   50         specified date; requiring boards to annually review
   51         the results of such study to determine if reserves are
   52         sufficient; requiring the division to adopt rules;
   53         providing requirements for the reserve study; revising
   54         requirements for approval of using reserve funds for a
   55         purpose other than authorized reserve expenditures;
   56         requiring that budgets include specified disclosures
   57         relating to reserve funds under certain circumstances
   58         on or after a specified date; restating requirements
   59         for associations relating to milestone inspections;
   60         amending s. 718.113, F.S.; requiring associations to
   61         provide for the maintenance, repair, and replacement
   62         of condominium property; providing an exception;
   63         requiring associations to perform specified required
   64         maintenance under certain circumstances; specifying
   65         that necessary maintenance, repair, or replacement of
   66         condominium property does not require unit owner
   67         approval; specifying that associations are not liable
   68         for certain expenses if a unit is vacated or access to
   69         a common element is denied for specified reasons;
   70         amending s. 718.115, F.S.; authorizing boards to adopt
   71         a special assessment or borrow money for certain
   72         reasons without unit owner approval; conforming cross
   73         references; amending s. 718.1255, F.S.; revising the
   74         definition of the term “dispute”; specifying that
   75         certain disputes are not subject to certain nonbinding
   76         arbitration and must be submitted to presuit
   77         mediation; amending s. 718.301, F.S.; revising
   78         reporting requirements relating to the transfer of
   79         association control; amending s. 718.503, F.S.;
   80         revising the documents that must be delivered to a
   81         prospective buyer or lessee of a residential unit;
   82         revising requirements for nondeveloper disclosures;
   83         amending s. 718.504, F.S.; revising requirements for
   84         prospectuses and offering circulars; amending s.
   85         719.103, F.S.; defining the term “alternative funding
   86         method”; amending s. 719.104, F.S.; revising the types
   87         of records that constitute the official records of a
   88         cooperative association; requiring associations to
   89         maintain specified records for a certain timeframe;
   90         specifying that renters of a unit have the right to
   91         inspect and copy certain reports; revising rulemaking
   92         requirements for the division; specifying that
   93         maintenance of the cooperative property and common
   94         areas is the responsibility of associations; providing
   95         an exception; requiring associations to perform
   96         specified required maintenance under certain
   97         circumstances; specifying that necessary maintenance,
   98         repair, or replacement of cooperative property does
   99         not require unit owner approval; specifying that
  100         associations are not liable for certain expenses if a
  101         unit must be vacated or if access to a common area is
  102         denied for specified reasons; amending s. 719.106,
  103         F.S.; revising certification and education
  104         requirements for directors of association boards;
  105         revising requirements for association budgets;
  106         revising applicability; revising requirements for the
  107         use of reserve funds for a purpose other than
  108         authorized reverse expenditures; requiring certain
  109         associations to periodically have a study conducted
  110         relating to required reserves after a specified date;
  111         requiring boards to annually review the results of
  112         such study to determine if reserves are sufficient;
  113         requiring the division to adopt rules; providing
  114         requirements for the reserve study; requiring that
  115         budgets include specified disclosures relating to
  116         reserve funds under certain circumstances on or after
  117         a specified date; restating requirements for
  118         associations relating to milestone inspections;
  119         amending s. 719.107, F.S.; authorizing boards to adopt
  120         a special assessment or borrow money for certain
  121         reasons without unit owner approval; amending s.
  122         719.301, F.S.; requiring developers to deliver a
  123         turnover inspection report relating to cooperative
  124         property under certain circumstances; requiring
  125         developers to deliver a copy of certain reserve
  126         studies and statements when relinquishing control of
  127         an association; amending s. 719.503, F.S.; revising
  128         the documents that must be delivered to a prospective
  129         buyer or lessee of a residential unit; revising
  130         nondeveloper disclosure requirements; amending s.
  131         719.504, F.S.; revising requirements for prospectuses
  132         and offering circulars; amending ss. 558.002, 718.116,
  133         718.121, 718.706, and 720.3085, F.S.; conforming
  134         cross-references; reenacting s. 719.1255, F.S.,
  135         relating to alternative resolution of disputes, to
  136         incorporate the amendment made to s. 718.1255, F.S.,
  137         in a reference thereto; providing an effective date.
  138          
  139  Be It Enacted by the Legislature of the State of Florida:
  140  
  141         Section 1. Section 553.899, Florida Statutes, is created to
  142  read:
  143         553.899 Mandatory structural inspections for multifamily
  144  residential buildings.—
  145         (1)The Legislature finds that maintaining the structural
  146  integrity of a building throughout its service life is of
  147  paramount importance in order to ensure that buildings are
  148  structurally sound so as to not pose a threat to the public
  149  health, safety, or welfare. As such, the Legislature finds that
  150  the imposition of a statewide structural inspection program for
  151  aging multifamily residential buildings in this state is
  152  necessary to ensure that such buildings are safe for continued
  153  use.
  154         (2)As used in this section, the term “milestone
  155  inspection” means a structural inspection of a building,
  156  including an inspection of load-bearing walls and the primary
  157  structural members and primary structural systems as those terms
  158  are defined in s. 627.706, by a licensed architect or engineer
  159  authorized to practice in this state for the purposes of
  160  attesting to the life safety and adequacy of the structural
  161  components of the building and, to the extent reasonably
  162  possible, determining the general structural condition of the
  163  building as it affects the safety of such building, including a
  164  determination of any necessary maintenance, repair, or
  165  replacement of any structural component of the building. The
  166  purpose of such inspection is not to determine if the condition
  167  of an existing building is in compliance with the Florida
  168  Building Code or the firesafety code.
  169         (3)The owner of a multifamily residential building that is
  170  three stories or more in height must have a milestone inspection
  171  performed by December 31 of the year in which the building
  172  reaches 30 years of age, based on the date the certificate of
  173  occupancy for the building was issued, and every 10 years
  174  thereafter. The owner of a multifamily residential building that
  175  is three stories or more in height and is located within 3 miles
  176  of a coastline as defined in s. 376.031 must have a milestone
  177  inspection performed by December 31 of the year in which the
  178  building reaches 20 years of age, based on the date the
  179  certificate of occupancy for the building was issued, and every
  180  7 years thereafter. If a condominium building or cooperative
  181  building is required to have a milestone inspection performed
  182  pursuant to this section, the condominium association or
  183  cooperative association must arrange for the milestone
  184  inspection to be performed and is responsible for ensuring
  185  compliance with the requirements of this section. The building
  186  owner or condominium association or cooperative association is
  187  responsible for all costs associated with the inspection. This
  188  subsection does not apply to a two-family or three-family
  189  dwelling with three or fewer habitable stories above ground.
  190         (4)If a milestone inspection is required under this
  191  section and the building’s certificate of occupancy was issued
  192  on or before July 1, 1992, the building’s initial milestone
  193  inspection must be performed before December 31, 2024.
  194         (5)A milestone inspection consists of two phases:
  195         (a)For phase one of the milestone inspection, a licensed
  196  architect or engineer authorized to practice in this state shall
  197  perform a visual examination of habitable and nonhabitable areas
  198  of a building, including the major structural components of a
  199  building, and provide a qualitative assessment of the structural
  200  conditions of the building. Surface imperfections such as
  201  cracks, distortion, sagging, deflections, misalignment, signs of
  202  leakage, or peeling of finishes are not considered signs of
  203  structural distress unless the architect or engineer performing
  204  the inspection determines that such surface imperfections are a
  205  sign of structural distress. If the architect or engineer finds
  206  no signs of structural distress to any building components under
  207  visual examination, phase two of the inspection, as provided in
  208  paragraph (b), is not required. An architect or engineer who
  209  completes a phase one milestone inspection shall prepare and
  210  submit an inspection report pursuant to subsection (6).
  211         (b)A phase two of the milestone inspection must be
  212  performed if any structural distress is identified during phase
  213  one. The inspector in charge of a phase two inspection must be a
  214  licensed engineer or licensed architect who has a minimum of 5
  215  years of experience designing the primary structural components
  216  of buildings and a minimum of 5 years of experience inspecting
  217  structural components of existing buildings of a similar size,
  218  scope, and type of construction. A phase two inspection may
  219  involve destructive or nondestructive testing at the inspector’s
  220  direction. The inspection may be as extensive or as limited as
  221  necessary to fully assess areas of structural distress in order
  222  to confirm that the building is structurally sound and safe for
  223  its intended use and to recommend a program for fully assessing
  224  and repairing distressed and damaged portions of the building.
  225  When determining testing locations, the inspector must give
  226  preference to locations that are the least disruptive and most
  227  easily repairable while still being representative of the
  228  structure. An inspector who completes a phase two milestone
  229  inspection shall prepare and submit an inspection report
  230  pursuant to subsection (6).
  231         (6)Upon completion of a phase one or phase two milestone
  232  inspection, the architect or engineer who performed the
  233  inspection must submit a sealed copy of the inspection report
  234  with a separate summary of, at minimum, the material findings
  235  and recommendations in the inspection report to the building
  236  owner or, if the building is a condominium or cooperative, to
  237  the condominium association or cooperative association, and to
  238  the building official of the local government which has
  239  jurisdiction. For a milestone inspection of a building that is a
  240  condominium or cooperative, the association must distribute a
  241  copy of the inspector-prepared summary of the inspection report
  242  to each condominium unit owner or cooperative unit owner,
  243  regardless of the findings or recommendations in the report, by
  244  United States mail or personal delivery; must post a copy of the
  245  inspector-prepared summary in a conspicuous place on the
  246  condominium or cooperative property; and must publish the full
  247  report and inspector-prepared summary on the association’s
  248  website, if the association is required to have a website.
  249         (7)A local enforcement agency may prescribe timelines and
  250  penalties with respect to compliance with this section.
  251         (8)The commission shall develop comprehensive structural
  252  and life safety standards for maintaining and inspecting
  253  buildings and structures in this state that are three stories or
  254  more in height by December 31, 2022. The standards are in
  255  addition to those provided in this section and must be made
  256  available for local governments to adopt at their discretion.
  257         Section 2. Present subsections (1) through (30) of section
  258  718.103, Florida Statutes, are redesignated as subsections (2)
  259  through (31), respectively, and a new subsection (1) is added to
  260  that section, to read:
  261         718.103 Definitions.—As used in this chapter, the term:
  262         (1)“Alternative funding method” means a method for the
  263  funding of a reserve account by other than an assessment or
  264  special assessment which may reasonably be expected to fully
  265  satisfy the association’s reserve funding obligations,
  266  including, but not limited to, payments into the reserve account
  267  by a developer who is offering units or any other method
  268  approved by the division.
  269         Section 3. Paragraphs (a), (c), and (g) of subsection (12)
  270  and subsection (13) of section 718.111, Florida Statutes, are
  271  amended to read:
  272         718.111 The association.—
  273         (12) OFFICIAL RECORDS.—
  274         (a) From the inception of the association, the association
  275  shall maintain each of the following items, if applicable, which
  276  constitutes the official records of the association:
  277         1. A copy of the plans, permits, warranties, and other
  278  items provided by the developer under s. 718.301(4).
  279         2. A photocopy of the recorded declaration of condominium
  280  of each condominium operated by the association and each
  281  amendment to each declaration.
  282         3. A photocopy of the recorded bylaws of the association
  283  and each amendment to the bylaws.
  284         4. A certified copy of the articles of incorporation of the
  285  association, or other documents creating the association, and
  286  each amendment thereto.
  287         5. A copy of the current rules of the association.
  288         6. A book or books that contain the minutes of all meetings
  289  of the association, the board of administration, and the unit
  290  owners.
  291         7. A current roster of all unit owners and their mailing
  292  addresses, unit identifications, voting certifications, and, if
  293  known, telephone numbers. The association shall also maintain
  294  the e-mail addresses and facsimile numbers of unit owners
  295  consenting to receive notice by electronic transmission. The e
  296  mail addresses and facsimile numbers are not accessible to unit
  297  owners if consent to receive notice by electronic transmission
  298  is not provided in accordance with sub-subparagraph (c)3.e.
  299  However, the association is not liable for an inadvertent
  300  disclosure of the e-mail address or facsimile number for
  301  receiving electronic transmission of notices.
  302         8. All current insurance policies of the association and
  303  condominiums operated by the association.
  304         9. A current copy of any management agreement, lease, or
  305  other contract to which the association is a party or under
  306  which the association or the unit owners have an obligation or
  307  responsibility.
  308         10. Bills of sale or transfer for all property owned by the
  309  association.
  310         11. Accounting records for the association and separate
  311  accounting records for each condominium that the association
  312  operates. Any person who knowingly or intentionally defaces or
  313  destroys such records, or who knowingly or intentionally fails
  314  to create or maintain such records, with the intent of causing
  315  harm to the association or one or more of its members, is
  316  personally subject to a civil penalty pursuant to s.
  317  718.501(1)(d). The accounting records must include, but are not
  318  limited to:
  319         a. Accurate, itemized, and detailed records of all receipts
  320  and expenditures.
  321         b. A current account and a monthly, bimonthly, or quarterly
  322  statement of the account for each unit designating the name of
  323  the unit owner, the due date and amount of each assessment, the
  324  amount paid on the account, and the balance due.
  325         c. All audits, reviews, accounting statements, reserve
  326  studies and reserve funding plans, and financial reports of the
  327  association or condominium.
  328         d. All contracts for work to be performed. Bids for work to
  329  be performed are also considered official records and must be
  330  maintained by the association for at least 1 year after receipt
  331  of the bid.
  332         12. Ballots, sign-in sheets, voting proxies, and all other
  333  papers and electronic records relating to voting by unit owners,
  334  which must be maintained for 1 year from the date of the
  335  election, vote, or meeting to which the document relates,
  336  notwithstanding paragraph (b).
  337         13. All rental records if the association is acting as
  338  agent for the rental of condominium units.
  339         14. A copy of the current question and answer sheet as
  340  described in s. 718.504.
  341         15. A copy of the inspection reports report as described in
  342  ss. 553.899 and 718.301(4)(p) and any other inspection report
  343  relating to a structural or life safety inspection of
  344  condominium property. Such record must be maintained by the
  345  association for 15 years after receipt of the report s.
  346  718.301(4)(p).
  347         16. Bids for materials, equipment, or services.
  348         17. All affirmative acknowledgments made pursuant to s.
  349  718.121(4)(c).
  350         18. All other written records of the association not
  351  specifically included in the foregoing which are related to the
  352  operation of the association.
  353         (c)1. The official records of the association are open to
  354  inspection by any association member or the authorized
  355  representative of such member at all reasonable times. The right
  356  to inspect the records includes the right to make or obtain
  357  copies, at the reasonable expense, if any, of the member or
  358  authorized representative of such member. A renter of a unit has
  359  a right to inspect and copy only the declaration of condominium,
  360  and the association’s bylaws and rules, and the inspection
  361  reports described in ss. 553.899 and 718.301(4)(p). The
  362  association may adopt reasonable rules regarding the frequency,
  363  time, location, notice, and manner of record inspections and
  364  copying but may not require a member to demonstrate any purpose
  365  or state any reason for the inspection. The failure of an
  366  association to provide the records within 10 working days after
  367  receipt of a written request creates a rebuttable presumption
  368  that the association willfully failed to comply with this
  369  paragraph. A unit owner who is denied access to official records
  370  is entitled to the actual damages or minimum damages for the
  371  association’s willful failure to comply. Minimum damages are $50
  372  per calendar day for up to 10 days, beginning on the 11th
  373  working day after receipt of the written request. The failure to
  374  permit inspection entitles any person prevailing in an
  375  enforcement action to recover reasonable attorney fees from the
  376  person in control of the records who, directly or indirectly,
  377  knowingly denied access to the records.
  378         2. Any person who knowingly or intentionally defaces or
  379  destroys accounting records that are required by this chapter to
  380  be maintained during the period for which such records are
  381  required to be maintained, or who knowingly or intentionally
  382  fails to create or maintain accounting records that are required
  383  to be created or maintained, with the intent of causing harm to
  384  the association or one or more of its members, is personally
  385  subject to a civil penalty pursuant to s. 718.501(1)(d).
  386         3. The association shall maintain an adequate number of
  387  copies of the declaration, articles of incorporation, bylaws,
  388  and rules, and all amendments to each of the foregoing, as well
  389  as the question and answer sheet as described in s. 718.504 and
  390  year-end financial information required under this section, on
  391  the condominium property to ensure their availability to unit
  392  owners and prospective purchasers, and may charge its actual
  393  costs for preparing and furnishing these documents to those
  394  requesting the documents. An association shall allow a member or
  395  his or her authorized representative to use a portable device,
  396  including a smartphone, tablet, portable scanner, or any other
  397  technology capable of scanning or taking photographs, to make an
  398  electronic copy of the official records in lieu of the
  399  association’s providing the member or his or her authorized
  400  representative with a copy of such records. The association may
  401  not charge a member or his or her authorized representative for
  402  the use of a portable device. Notwithstanding this paragraph,
  403  the following records are not accessible to unit owners:
  404         a. Any record protected by the lawyer-client privilege as
  405  described in s. 90.502 and any record protected by the work
  406  product privilege, including a record prepared by an association
  407  attorney or prepared at the attorney’s express direction, which
  408  reflects a mental impression, conclusion, litigation strategy,
  409  or legal theory of the attorney or the association, and which
  410  was prepared exclusively for civil or criminal litigation or for
  411  adversarial administrative proceedings, or which was prepared in
  412  anticipation of such litigation or proceedings until the
  413  conclusion of the litigation or proceedings.
  414         b. Information obtained by an association in connection
  415  with the approval of the lease, sale, or other transfer of a
  416  unit.
  417         c. Personnel records of association or management company
  418  employees, including, but not limited to, disciplinary, payroll,
  419  health, and insurance records. For purposes of this sub
  420  subparagraph, the term “personnel records” does not include
  421  written employment agreements with an association employee or
  422  management company, or budgetary or financial records that
  423  indicate the compensation paid to an association employee.
  424         d. Medical records of unit owners.
  425         e. Social security numbers, driver license numbers, credit
  426  card numbers, e-mail addresses, telephone numbers, facsimile
  427  numbers, emergency contact information, addresses of a unit
  428  owner other than as provided to fulfill the association’s notice
  429  requirements, and other personal identifying information of any
  430  person, excluding the person’s name, unit designation, mailing
  431  address, property address, and any address, e-mail address, or
  432  facsimile number provided to the association to fulfill the
  433  association’s notice requirements. Notwithstanding the
  434  restrictions in this sub-subparagraph, an association may print
  435  and distribute to unit owners a directory containing the name,
  436  unit address, and all telephone numbers of each unit owner.
  437  However, an owner may exclude his or her telephone numbers from
  438  the directory by so requesting in writing to the association. An
  439  owner may consent in writing to the disclosure of other contact
  440  information described in this sub-subparagraph. The association
  441  is not liable for the inadvertent disclosure of information that
  442  is protected under this sub-subparagraph if the information is
  443  included in an official record of the association and is
  444  voluntarily provided by an owner and not requested by the
  445  association.
  446         f. Electronic security measures that are used by the
  447  association to safeguard data, including passwords.
  448         g. The software and operating system used by the
  449  association which allow the manipulation of data, even if the
  450  owner owns a copy of the same software used by the association.
  451  The data is part of the official records of the association.
  452         h. All affirmative acknowledgments made pursuant to s.
  453  718.121(4)(c).
  454         (g)1. By January 1, 2019, an association managing a
  455  condominium with 150 or more units which does not contain
  456  timeshare units shall post digital copies of the documents
  457  specified in subparagraph 2. on its website or make such
  458  documents available through an application that can be
  459  downloaded on a mobile device.
  460         a. The association’s website or application must be:
  461         (I) An independent website, application, or web portal
  462  wholly owned and operated by the association; or
  463         (II) A website, application, or web portal operated by a
  464  third-party provider with whom the association owns, leases,
  465  rents, or otherwise obtains the right to operate a web page,
  466  subpage, web portal, collection of subpages or web portals, or
  467  an application which is dedicated to the association’s
  468  activities and on which required notices, records, and documents
  469  may be posted or made available by the association.
  470         b. The association’s website or application must be
  471  accessible through the Internet and must contain a subpage, web
  472  portal, or other protected electronic location that is
  473  inaccessible to the general public and accessible only to unit
  474  owners and employees of the association.
  475         c. Upon a unit owner’s written request, the association
  476  must provide the unit owner with a username and password and
  477  access to the protected sections of the association’s website or
  478  application which contain any notices, records, or documents
  479  that must be electronically provided.
  480         2. A current copy of the following documents must be posted
  481  in digital format on the association’s website or application:
  482         a. The recorded declaration of condominium of each
  483  condominium operated by the association and each amendment to
  484  each declaration.
  485         b. The recorded bylaws of the association and each
  486  amendment to the bylaws.
  487         c. The articles of incorporation of the association, or
  488  other documents creating the association, and each amendment to
  489  the articles of incorporation or other documents. The copy
  490  posted pursuant to this sub-subparagraph must be a copy of the
  491  articles of incorporation filed with the Department of State.
  492         d. The rules of the association.
  493         e. A list of all executory contracts or documents to which
  494  the association is a party or under which the association or the
  495  unit owners have an obligation or responsibility and, after
  496  bidding for the related materials, equipment, or services has
  497  closed, a list of bids received by the association within the
  498  past year. Summaries of bids for materials, equipment, or
  499  services which exceed $500 must be maintained on the website or
  500  application for 1 year. In lieu of summaries, complete copies of
  501  the bids may be posted.
  502         f. The annual budget required by s. 718.112(2)(f) and any
  503  proposed budget to be considered at the annual meeting.
  504         g. The financial report required by subsection (13) and any
  505  monthly income or expense statement to be considered at a
  506  meeting.
  507         h. The certification of each director required by s.
  508  718.112(2)(d)4.b.
  509         i. All contracts or transactions between the association
  510  and any director, officer, corporation, firm, or association
  511  that is not an affiliated condominium association or any other
  512  entity in which an association director is also a director or
  513  officer and financially interested.
  514         j. Any contract or document regarding a conflict of
  515  interest or possible conflict of interest as provided in ss.
  516  468.436(2)(b)6. and 718.3027(3).
  517         k. The notice of any unit owner meeting and the agenda for
  518  the meeting, as required by s. 718.112(2)(d)3., no later than 14
  519  days before the meeting. The notice must be posted in plain view
  520  on the front page of the website or application, or on a
  521  separate subpage of the website or application labeled “Notices”
  522  which is conspicuously visible and linked from the front page.
  523  The association must also post on its website or application any
  524  document to be considered and voted on by the owners during the
  525  meeting or any document listed on the agenda at least 7 days
  526  before the meeting at which the document or the information
  527  within the document will be considered.
  528         l. Notice of any board meeting, the agenda, and any other
  529  document required for the meeting as required by s.
  530  718.112(2)(c), which must be posted no later than the date
  531  required for notice under s. 718.112(2)(c).
  532         m.The inspection reports described in ss. 553.899 and
  533  718.301(4)(p) and any other inspection report relating to a
  534  structural or life safety inspection of condominium property.
  535         n.The reserve study required under s. 718.112(2).
  536         3. The association shall ensure that the information and
  537  records described in paragraph (c), which are not allowed to be
  538  accessible to unit owners, are not posted on the association’s
  539  website or application. If protected information or information
  540  restricted from being accessible to unit owners is included in
  541  documents that are required to be posted on the association’s
  542  website or application, the association shall ensure the
  543  information is redacted before posting the documents.
  544  Notwithstanding the foregoing, the association or its agent is
  545  not liable for disclosing information that is protected or
  546  restricted under this paragraph unless such disclosure was made
  547  with a knowing or intentional disregard of the protected or
  548  restricted nature of such information.
  549         4. The failure of the association to post information
  550  required under subparagraph 2. is not in and of itself
  551  sufficient to invalidate any action or decision of the
  552  association’s board or its committees.
  553         (13) FINANCIAL REPORTING.—Within 90 days after the end of
  554  the fiscal year, or annually on a date provided in the bylaws,
  555  the association shall prepare and complete, or contract for the
  556  preparation and completion of, a financial report for the
  557  preceding fiscal year. Within 21 days after the final financial
  558  report is completed by the association or received from the
  559  third party, but not later than 120 days after the end of the
  560  fiscal year or other date as provided in the bylaws, the
  561  association shall mail to each unit owner at the address last
  562  furnished to the association by the unit owner, or hand deliver
  563  to each unit owner, a copy of the most recent financial report
  564  or a notice that a copy of the most recent financial report will
  565  be mailed or hand delivered to the unit owner, without charge,
  566  within 5 business days after receipt of a written request from
  567  the unit owner. The division shall adopt rules setting forth
  568  uniform accounting principles and standards to be used by all
  569  associations and addressing the financial reporting requirements
  570  for multicondominium associations. The rules must include, but
  571  not be limited to, standards for presenting a summary of
  572  association reserves, including a good faith estimate disclosing
  573  the annual amount of reserve funds that would be necessary for
  574  the association to fully fund reserves for each reserve item
  575  based on the straight-line accounting method or to fully fund
  576  reserves based on the pooling method. This disclosure is not
  577  applicable to reserves funded via the pooling method. In
  578  adopting such rules, the division shall consider the number of
  579  members and annual revenues of an association. Financial reports
  580  shall be prepared as follows:
  581         (a) An association that meets the criteria of this
  582  paragraph shall prepare a complete set of financial statements
  583  in accordance with generally accepted accounting principles. The
  584  financial statements must be based upon the association’s total
  585  annual revenues, as follows:
  586         1. An association with total annual revenues of $150,000 or
  587  more, but less than $300,000, shall prepare compiled financial
  588  statements.
  589         2. An association with total annual revenues of at least
  590  $300,000, but less than $500,000, shall prepare reviewed
  591  financial statements.
  592         3. An association with total annual revenues of $500,000 or
  593  more shall prepare audited financial statements.
  594         (b)1. An association with total annual revenues of less
  595  than $150,000 shall prepare a report of cash receipts and
  596  expenditures.
  597         2. A report of cash receipts and disbursements must
  598  disclose the amount of receipts by accounts and receipt
  599  classifications and the amount of expenses by accounts and
  600  expense classifications, including, but not limited to, the
  601  following, as applicable: costs for security, professional and
  602  management fees and expenses, taxes, costs for recreation
  603  facilities, expenses for refuse collection and utility services,
  604  expenses for lawn care, costs for building maintenance and
  605  repair, insurance costs, administration and salary expenses, and
  606  reserves accumulated and expended for capital expenditures,
  607  deferred maintenance, and any other category for which the
  608  association maintains reserves.
  609         (c) An association may prepare, without a meeting of or
  610  approval by the unit owners:
  611         1. Compiled, reviewed, or audited financial statements, if
  612  the association is required to prepare a report of cash receipts
  613  and expenditures;
  614         2. Reviewed or audited financial statements, if the
  615  association is required to prepare compiled financial
  616  statements; or
  617         3. Audited financial statements if the association is
  618  required to prepare reviewed financial statements.
  619         (d) If approved by a majority of the voting interests
  620  present at a properly called meeting of the association, an
  621  association may prepare:
  622         1. A report of cash receipts and expenditures in lieu of a
  623  compiled, reviewed, or audited financial statement;
  624         2. A report of cash receipts and expenditures or a compiled
  625  financial statement in lieu of a reviewed or audited financial
  626  statement; or
  627         3. A report of cash receipts and expenditures, a compiled
  628  financial statement, or a reviewed financial statement in lieu
  629  of an audited financial statement.
  630  
  631  Such meeting and approval must occur before the end of the
  632  fiscal year and is effective only for the fiscal year in which
  633  the vote is taken, except that the approval may also be
  634  effective for the following fiscal year. If the developer has
  635  not turned over control of the association, all unit owners,
  636  including the developer, may vote on issues related to the
  637  preparation of the association’s financial reports, from the
  638  date of incorporation of the association through the end of the
  639  second fiscal year after the fiscal year in which the
  640  certificate of a surveyor and mapper is recorded pursuant to s.
  641  718.104(4)(e) or an instrument that transfers title to a unit in
  642  the condominium which is not accompanied by a recorded
  643  assignment of developer rights in favor of the grantee of such
  644  unit is recorded, whichever occurs first. Thereafter, all unit
  645  owners except the developer may vote on such issues until
  646  control is turned over to the association by the developer. Any
  647  audit or review prepared under this section shall be paid for by
  648  the developer if done before turnover of control of the
  649  association.
  650         (e) A unit owner may provide written notice to the division
  651  of the association’s failure to mail or hand deliver him or her
  652  a copy of the most recent financial report within 5 business
  653  days after he or she submitted a written request to the
  654  association for a copy of such report. If the division
  655  determines that the association failed to mail or hand deliver a
  656  copy of the most recent financial report to the unit owner, the
  657  division shall provide written notice to the association that
  658  the association must mail or hand deliver a copy of the most
  659  recent financial report to the unit owner and the division
  660  within 5 business days after it receives such notice from the
  661  division. An association that fails to comply with the
  662  division’s request may not waive the financial reporting
  663  requirement provided in paragraph (d) for the fiscal year in
  664  which the unit owner’s request was made and the following fiscal
  665  year. A financial report received by the division pursuant to
  666  this paragraph shall be maintained, and the division shall
  667  provide a copy of such report to an association member upon his
  668  or her request.
  669         Section 4. Paragraphs (d) and (f) of subsection (2) of
  670  section 718.112, Florida Statutes, are amended, and paragraph
  671  (p) is added to that subsection, to read:
  672         718.112 Bylaws.—
  673         (2) REQUIRED PROVISIONS.—The bylaws shall provide for the
  674  following and, if they do not do so, shall be deemed to include
  675  the following:
  676         (d) Unit owner meetings.—
  677         1. An annual meeting of the unit owners must be held at the
  678  location provided in the association bylaws and, if the bylaws
  679  are silent as to the location, the meeting must be held within
  680  45 miles of the condominium property. However, such distance
  681  requirement does not apply to an association governing a
  682  timeshare condominium.
  683         2. Unless the bylaws provide otherwise, a vacancy on the
  684  board caused by the expiration of a director’s term must be
  685  filled by electing a new board member, and the election must be
  686  by secret ballot. An election is not required if the number of
  687  vacancies equals or exceeds the number of candidates. For
  688  purposes of this paragraph, the term “candidate” means an
  689  eligible person who has timely submitted the written notice, as
  690  described in sub-subparagraph 4.a., of his or her intention to
  691  become a candidate. Except in a timeshare or nonresidential
  692  condominium, or if the staggered term of a board member does not
  693  expire until a later annual meeting, or if all members’ terms
  694  would otherwise expire but there are no candidates, the terms of
  695  all board members expire at the annual meeting, and such members
  696  may stand for reelection unless prohibited by the bylaws. Board
  697  members may serve terms longer than 1 year if permitted by the
  698  bylaws or articles of incorporation. A board member may not
  699  serve more than 8 consecutive years unless approved by an
  700  affirmative vote of unit owners representing two-thirds of all
  701  votes cast in the election or unless there are not enough
  702  eligible candidates to fill the vacancies on the board at the
  703  time of the vacancy. Only board service that occurs on or after
  704  July 1, 2018, may be used when calculating a board member’s term
  705  limit. If the number of board members whose terms expire at the
  706  annual meeting equals or exceeds the number of candidates, the
  707  candidates become members of the board effective upon the
  708  adjournment of the annual meeting. Unless the bylaws provide
  709  otherwise, any remaining vacancies shall be filled by the
  710  affirmative vote of the majority of the directors making up the
  711  newly constituted board even if the directors constitute less
  712  than a quorum or there is only one director. In a residential
  713  condominium association of more than 10 units or in a
  714  residential condominium association that does not include
  715  timeshare units or timeshare interests, co-owners of a unit may
  716  not serve as members of the board of directors at the same time
  717  unless they own more than one unit or unless there are not
  718  enough eligible candidates to fill the vacancies on the board at
  719  the time of the vacancy. A unit owner in a residential
  720  condominium desiring to be a candidate for board membership must
  721  comply with sub-subparagraph 4.a. and must be eligible to be a
  722  candidate to serve on the board of directors at the time of the
  723  deadline for submitting a notice of intent to run in order to
  724  have his or her name listed as a proper candidate on the ballot
  725  or to serve on the board. A person who has been suspended or
  726  removed by the division under this chapter, or who is delinquent
  727  in the payment of any assessment due to the association, is not
  728  eligible to be a candidate for board membership and may not be
  729  listed on the ballot. For purposes of this paragraph, a person
  730  is delinquent if a payment is not made by the due date as
  731  specifically identified in the declaration of condominium,
  732  bylaws, or articles of incorporation. If a due date is not
  733  specifically identified in the declaration of condominium,
  734  bylaws, or articles of incorporation, the due date is the first
  735  day of the assessment period. A person who has been convicted of
  736  any felony in this state or in a United States District or
  737  Territorial Court, or who has been convicted of any offense in
  738  another jurisdiction which would be considered a felony if
  739  committed in this state, is not eligible for board membership
  740  unless such felon’s civil rights have been restored for at least
  741  5 years as of the date such person seeks election to the board.
  742  The validity of an action by the board is not affected if it is
  743  later determined that a board member is ineligible for board
  744  membership due to having been convicted of a felony. This
  745  subparagraph does not limit the term of a member of the board of
  746  a nonresidential or timeshare condominium.
  747         3. The bylaws must provide the method of calling meetings
  748  of unit owners, including annual meetings. Written notice of an
  749  annual meeting must include an agenda; be mailed, hand
  750  delivered, or electronically transmitted to each unit owner at
  751  least 14 days before the annual meeting; and be posted in a
  752  conspicuous place on the condominium property or association
  753  property at least 14 continuous days before the annual meeting.
  754  Written notice of a meeting other than an annual meeting must
  755  include an agenda; be mailed, hand delivered, or electronically
  756  transmitted to each unit owner; and be posted in a conspicuous
  757  place on the condominium property or association property within
  758  the timeframe specified in the bylaws. If the bylaws do not
  759  specify a timeframe for written notice of a meeting other than
  760  an annual meeting, notice must be provided at least 14
  761  continuous days before the meeting. Upon notice to the unit
  762  owners, the board shall, by duly adopted rule, designate a
  763  specific location on the condominium property or association
  764  property where all notices of unit owner meetings must be
  765  posted. This requirement does not apply if there is no
  766  condominium property for posting notices. In lieu of, or in
  767  addition to, the physical posting of meeting notices, the
  768  association may, by reasonable rule, adopt a procedure for
  769  conspicuously posting and repeatedly broadcasting the notice and
  770  the agenda on a closed-circuit cable television system serving
  771  the condominium association. However, if broadcast notice is
  772  used in lieu of a notice posted physically on the condominium
  773  property, the notice and agenda must be broadcast at least four
  774  times every broadcast hour of each day that a posted notice is
  775  otherwise required under this section. If broadcast notice is
  776  provided, the notice and agenda must be broadcast in a manner
  777  and for a sufficient continuous length of time so as to allow an
  778  average reader to observe the notice and read and comprehend the
  779  entire content of the notice and the agenda. In addition to any
  780  of the authorized means of providing notice of a meeting of the
  781  board, the association may, by rule, adopt a procedure for
  782  conspicuously posting the meeting notice and the agenda on a
  783  website serving the condominium association for at least the
  784  minimum period of time for which a notice of a meeting is also
  785  required to be physically posted on the condominium property.
  786  Any rule adopted shall, in addition to other matters, include a
  787  requirement that the association send an electronic notice in
  788  the same manner as a notice for a meeting of the members, which
  789  must include a hyperlink to the website where the notice is
  790  posted, to unit owners whose e-mail addresses are included in
  791  the association’s official records. Unless a unit owner waives
  792  in writing the right to receive notice of the annual meeting,
  793  such notice must be hand delivered, mailed, or electronically
  794  transmitted to each unit owner. Notice for meetings and notice
  795  for all other purposes must be mailed to each unit owner at the
  796  address last furnished to the association by the unit owner, or
  797  hand delivered to each unit owner. However, if a unit is owned
  798  by more than one person, the association must provide notice to
  799  the address that the developer identifies for that purpose and
  800  thereafter as one or more of the owners of the unit advise the
  801  association in writing, or if no address is given or the owners
  802  of the unit do not agree, to the address provided on the deed of
  803  record. An officer of the association, or the manager or other
  804  person providing notice of the association meeting, must provide
  805  an affidavit or United States Postal Service certificate of
  806  mailing, to be included in the official records of the
  807  association affirming that the notice was mailed or hand
  808  delivered in accordance with this provision.
  809         4. The members of the board of a residential condominium
  810  shall be elected by written ballot or voting machine. Proxies
  811  may not be used in electing the board in general elections or
  812  elections to fill vacancies caused by recall, resignation, or
  813  otherwise, unless otherwise provided in this chapter. This
  814  subparagraph does not apply to an association governing a
  815  timeshare condominium.
  816         a. At least 60 days before a scheduled election, the
  817  association shall mail, deliver, or electronically transmit, by
  818  separate association mailing or included in another association
  819  mailing, delivery, or transmission, including regularly
  820  published newsletters, to each unit owner entitled to a vote, a
  821  first notice of the date of the election. A unit owner or other
  822  eligible person desiring to be a candidate for the board must
  823  give written notice of his or her intent to be a candidate to
  824  the association at least 40 days before a scheduled election.
  825  Together with the written notice and agenda as set forth in
  826  subparagraph 3., the association shall mail, deliver, or
  827  electronically transmit a second notice of the election to all
  828  unit owners entitled to vote, together with a ballot that lists
  829  all candidates not less than 14 days or more than 34 days before
  830  the date of the election. Upon request of a candidate, an
  831  information sheet, no larger than 8 1/2 inches by 11 inches,
  832  which must be furnished by the candidate at least 35 days before
  833  the election, must be included with the mailing, delivery, or
  834  transmission of the ballot, with the costs of mailing, delivery,
  835  or electronic transmission and copying to be borne by the
  836  association. The association is not liable for the contents of
  837  the information sheets prepared by the candidates. In order to
  838  reduce costs, the association may print or duplicate the
  839  information sheets on both sides of the paper. The division
  840  shall by rule establish voting procedures consistent with this
  841  sub-subparagraph, including rules establishing procedures for
  842  giving notice by electronic transmission and rules providing for
  843  the secrecy of ballots. Elections shall be decided by a
  844  plurality of ballots cast. There is no quorum requirement;
  845  however, at least 20 percent of the eligible voters must cast a
  846  ballot in order to have a valid election. A unit owner may not
  847  authorize any other person to vote his or her ballot, and any
  848  ballots improperly cast are invalid. A unit owner who violates
  849  this provision may be fined by the association in accordance
  850  with s. 718.303. A unit owner who needs assistance in casting
  851  the ballot for the reasons stated in s. 101.051 may obtain such
  852  assistance. The regular election must occur on the date of the
  853  annual meeting. Notwithstanding this sub-subparagraph, an
  854  election is not required unless more candidates file notices of
  855  intent to run or are nominated than board vacancies exist.
  856         b. Within 90 days after being elected or appointed to the
  857  board of an association of a residential condominium, each newly
  858  elected or appointed director shall do both of the following:
  859         (I) Certify by affidavit in writing to the secretary of the
  860  association that he or she has read the association’s
  861  declaration of condominium, articles of incorporation, bylaws,
  862  and current written policies; that he or she will work to uphold
  863  such documents and policies to the best of his or her ability;
  864  and that he or she will faithfully discharge his or her
  865  fiduciary responsibility to the association’s members. In lieu
  866  of this written certification, within 90 days after being
  867  elected or appointed to the board, the newly elected or
  868  appointed director may
  869         (II) Submit a certificate of having satisfactorily
  870  completed the educational curriculum administered by a division
  871  approved condominium education provider within 1 year before or
  872  90 days after the date of election or appointment. The affidavit
  873  and written certification or educational certificate is valid
  874  and does not have to be resubmitted as long as the director
  875  serves on the board without interruption.
  876  
  877  A director of an association of a residential condominium who
  878  fails to timely file the affidavit and written certification or
  879  educational certificate is suspended from service on the board
  880  until he or she complies with this sub-subparagraph. The board
  881  may temporarily fill the vacancy during the period of
  882  suspension. The secretary shall require cause the association to
  883  retain a director’s affidavit and written certification or
  884  educational certificate for inspection by the members for 5
  885  years after a director’s election or the duration of the
  886  director’s uninterrupted tenure, whichever is longer. Failure to
  887  have such affidavit and written certification or educational
  888  certificate on file does not affect the validity of any board
  889  action.
  890         c. Any challenge to the election process must be commenced
  891  within 60 days after the election results are announced.
  892         5. Any approval by unit owners called for by this chapter
  893  or the applicable declaration or bylaws, including, but not
  894  limited to, the approval requirement in s. 718.111(8), must be
  895  made at a duly noticed meeting of unit owners and is subject to
  896  all requirements of this chapter or the applicable condominium
  897  documents relating to unit owner decisionmaking, except that
  898  unit owners may take action by written agreement, without
  899  meetings, on matters for which action by written agreement
  900  without meetings is expressly allowed by the applicable bylaws
  901  or declaration or any law that provides for such action.
  902         6. Unit owners may waive notice of specific meetings if
  903  allowed by the applicable bylaws or declaration or any law.
  904  Notice of meetings of the board of administration, unit owner
  905  meetings, except unit owner meetings called to recall board
  906  members under paragraph (j), and committee meetings may be given
  907  by electronic transmission to unit owners who consent to receive
  908  notice by electronic transmission. A unit owner who consents to
  909  receiving notices by electronic transmission is solely
  910  responsible for removing or bypassing filters that block receipt
  911  of mass e-mails sent to members on behalf of the association in
  912  the course of giving electronic notices.
  913         7. Unit owners have the right to participate in meetings of
  914  unit owners with reference to all designated agenda items.
  915  However, the association may adopt reasonable rules governing
  916  the frequency, duration, and manner of unit owner participation.
  917         8. A unit owner may tape record or videotape a meeting of
  918  the unit owners subject to reasonable rules adopted by the
  919  division.
  920         9. Unless otherwise provided in the bylaws, any vacancy
  921  occurring on the board before the expiration of a term may be
  922  filled by the affirmative vote of the majority of the remaining
  923  directors, even if the remaining directors constitute less than
  924  a quorum, or by the sole remaining director. In the alternative,
  925  a board may hold an election to fill the vacancy, in which case
  926  the election procedures must conform to sub-subparagraph 4.a.
  927  unless the association governs 10 units or fewer and has opted
  928  out of the statutory election process, in which case the bylaws
  929  of the association control. Unless otherwise provided in the
  930  bylaws, a board member appointed or elected under this section
  931  shall fill the vacancy for the unexpired term of the seat being
  932  filled. Filling vacancies created by recall is governed by
  933  paragraph (j) and rules adopted by the division.
  934         10. This chapter does not limit the use of general or
  935  limited proxies, require the use of general or limited proxies,
  936  or require the use of a written ballot or voting machine for any
  937  agenda item or election at any meeting of a timeshare
  938  condominium association or nonresidential condominium
  939  association.
  940  
  941  Notwithstanding subparagraph (b)2. and sub-subparagraph 4.a., an
  942  association of 10 or fewer units may, by affirmative vote of a
  943  majority of the total voting interests, provide for different
  944  voting and election procedures in its bylaws, which may be by a
  945  proxy specifically delineating the different voting and election
  946  procedures. The different voting and election procedures may
  947  provide for elections to be conducted by limited or general
  948  proxy.
  949         (f) Annual budget.—
  950         1. The proposed annual budget of estimated revenues and
  951  expenses must be detailed and must show the amounts budgeted by
  952  accounts and expense classifications, including, at a minimum,
  953  any applicable expenses listed in s. 718.504(21). The board
  954  shall adopt the annual budget at least 14 days prior to the
  955  start of the association’s fiscal year. In the event that the
  956  board fails to timely adopt the annual budget a second time, it
  957  shall be deemed a minor violation and the prior year’s budget
  958  shall continue in effect until a new budget is adopted. A
  959  multicondominium association shall adopt a separate budget of
  960  common expenses for each condominium the association operates
  961  and shall adopt a separate budget of common expenses for the
  962  association. In addition, if the association maintains limited
  963  common elements with the cost to be shared only by those
  964  entitled to use the limited common elements as provided for in
  965  s. 718.113(1), the budget or a schedule attached to it must show
  966  the amount budgeted for this maintenance. If, after turnover of
  967  control of the association to the unit owners, any of the
  968  expenses listed in s. 718.504(21) are not applicable, they need
  969  not be listed.
  970         2.a. In addition to annual operating expenses, the budget
  971  must include reserve accounts for capital expenditures and
  972  deferred maintenance. These accounts must include, but are not
  973  limited to, the maintenance and replacement of the condominium
  974  property identified in s. 718.301(4)(p) roof replacement,
  975  building painting, and pavement resurfacing, regardless of the
  976  amount of deferred maintenance expense or replacement cost, and
  977  any other item that has a deferred maintenance expense or
  978  replacement cost that exceeds $10,000. The amount to be reserved
  979  must be computed using a formula based upon estimated remaining
  980  useful life and estimated replacement cost or deferred
  981  maintenance expense of each reserve item. The association may
  982  adjust replacement reserve assessments annually to take into
  983  account any changes in estimates or extension of the useful life
  984  of a reserve item caused by deferred maintenance. This
  985  subsection does not apply to an adopted budget in which the
  986  members of an association have determined, by a majority vote of
  987  all the voting interests, voting in person or by proxy at a duly
  988  called meeting of the association, to provide no reserves or
  989  less reserves than required by this subsection.
  990         b. Before turnover of control of an association by a
  991  developer to unit owners other than a developer pursuant to s.
  992  718.301, the developer may vote the voting interests allocated
  993  to its units to waive the reserves or reduce the funding of
  994  reserves through the period expiring at the end of the second
  995  fiscal year after the fiscal year in which the certificate of a
  996  surveyor and mapper is recorded pursuant to s. 718.104(4)(e) or
  997  an instrument that transfers title to a unit in the condominium
  998  which is not accompanied by a recorded assignment of developer
  999  rights in favor of the grantee of such unit is recorded,
 1000  whichever occurs first, after which time reserves may be waived
 1001  or reduced only upon the vote of a majority of all nondeveloper
 1002  voting interests voting in person or by limited proxy at a duly
 1003  called meeting of the association. If an association is required
 1004  to perform a reserve study under subparagraph 3., the developer
 1005  may vote to waive reserve contributions or reduce reserve
 1006  funding only if the association’s reserve obligations are funded
 1007  consistent with the reserve study currently in effect or if the
 1008  association provides an alternative funding method for the
 1009  association’s reserve obligations. If a meeting of the unit
 1010  owners has been called to determine whether to waive or reduce
 1011  the funding of reserves and no such result is achieved or a
 1012  quorum is not attained, the reserves included in the budget
 1013  shall go into effect. After the turnover, the developer may vote
 1014  its voting interest to waive or reduce the funding of reserves.
 1015         3. Effective January 1, 2024, unless the declaration of
 1016  condominium, articles of incorporation, or bylaws provide for a
 1017  more frequent reserve study, an association with a residential
 1018  condominium building that is three stories or more in height and
 1019  subject to the milestone inspection requirements in s. 553.899
 1020  must have a study conducted of the reserves required to
 1021  maintain, repair, replace, and restore the condominium property
 1022  identified in s. 718.301(4)(p) at least every 3 years. The board
 1023  shall review the results of such study at least annually to
 1024  determine if reserves are sufficient to meet the association’s
 1025  reserve obligations and to make any adjustments the board deems
 1026  necessary to maintain reserves, as appropriate. The division
 1027  shall adopt rules setting forth uniform financial standards and
 1028  forms for reserve studies. The reserve study must include,
 1029  without limitation:
 1030         a. A summary of any inspection of the major components of
 1031  the condominium property identified in s. 718.301(4)(p) and any
 1032  other portion of the condominium property that the association
 1033  is obligated to maintain, repair, replace, or restore;
 1034         b.If applicable, a summary of the findings and
 1035  recommendations of the milestone inspection report required
 1036  under s. 553.899 and any other structural or life safety
 1037  inspection of the condominium property considered in the reserve
 1038  study;
 1039         c. An identification of the structural components of the
 1040  building for which necessary reserves may be reasonably
 1041  projected and an identification of the structural components of
 1042  the building with an indefinite useful life for which a
 1043  reasonable determination of necessary reserves may not be
 1044  estimated;
 1045         d. An estimate of the useful life of the structural
 1046  components of the building identified in s. 718.301(4)(p) for
 1047  which an estimate of useful life may be determined as attested
 1048  to by a licensed architect or engineer in the turnover
 1049  inspection required under s. 718.301(4)(p), a milestone
 1050  inspection, or any other structural or life safety inspection of
 1051  the condominium property;
 1052         e. An estimate of the remaining useful life of any other
 1053  portion of the condominium property that the association is
 1054  obligated to maintain, repair, replace, or restore;
 1055         f. An estimate of the cost of maintenance, repair,
 1056  replacement, or restoration of each major component of the
 1057  condominium property identified in s. 718.301(4)(p) and any
 1058  other portion of the condominium property identified pursuant to
 1059  sub-subparagraph c.;
 1060         g. An estimate of the total annual assessment that may be
 1061  necessary to cover the cost of maintaining, repairing,
 1062  replacing, or restoring the major components of the condominium
 1063  property identified in s. 718.301(4)(p) and any other portion of
 1064  the condominium property identified pursuant to sub-subparagraph
 1065  c., and an estimate of the funding plan, including any
 1066  alternative funding method, which may be necessary to provide
 1067  adequate funding for the required reserves; and
 1068         h.A schedule for the full funding of reserves. A reserve
 1069  account is fully funded when the actual or projected reserve
 1070  balance in the reserve account is equal in direct proportion to
 1071  the fraction of useful life for a given component or components
 1072  multiplied by the current replacement costs for the component or
 1073  components.
 1074         4. The annual budget must, at minimum:
 1075         a. Identify all items for which reserves are or will be
 1076  established;
 1077         b. Provide an estimate of the maintenance, repair, and
 1078  replacement costs for the structural components for which an
 1079  estimate of useful life may be determined;
 1080         c. Identify any structural component for which a reserve
 1081  account is not established or reserves are not funded, because
 1082  the useful life of the component cannot be determined;
 1083         d. As of the beginning of the fiscal year for which the
 1084  budget is prepared, identify the current amount of accumulated
 1085  funds for each reserve component or, if the pooling method is
 1086  used, the amount of the accumulated pooled funds;
 1087         e.Provide a description of the funding plan for the
 1088  reserve funding obligations of the association, including the
 1089  use of regular assessments, special assessments, and any other
 1090  alternative funding method; and
 1091         f. Provide a description of the procedures used for the
 1092  estimation and accumulation of reserves pursuant to this
 1093  paragraph, the identity of any independent third party who
 1094  conducted the reserve study on behalf of the association, and
 1095  the extent to which the association is funding its reserve
 1096  obligations consistent with the reserve study currently in
 1097  effect.
 1098         5.3. Reserve funds and any interest accruing thereon shall
 1099  remain in the reserve account or accounts, and may be used only
 1100  for authorized reserve expenditures unless their use for other
 1101  purposes is approved in advance by a majority vote of all voting
 1102  interests, voting in person or by limited proxy at a duly called
 1103  meeting of the association; provided that the use of reserve
 1104  funds for a purpose other than authorized reserve expenditures
 1105  is authorized in the exercise of the association’s emergency
 1106  powers under s. 718.1265. Before turnover of control of an
 1107  association by a developer to unit owners other than the
 1108  developer pursuant to s. 718.301, the developer-controlled
 1109  association may not vote to use reserves for purposes other than
 1110  those for which they were intended without the approval of a
 1111  majority of all nondeveloper voting interests, voting in person
 1112  or by limited proxy at a duly called meeting of the association.
 1113         6.a.4. The only voting interests that are eligible to vote
 1114  on questions that involve waiving or reducing the funding of
 1115  reserves, or using existing reserve funds for purposes other
 1116  than purposes for which the reserves were intended, are the
 1117  voting interests of the units subject to assessment to fund the
 1118  reserves in question. Proxy questions relating to waiving or
 1119  reducing the funding of reserves or using existing reserve funds
 1120  for purposes other than purposes for which the reserves were
 1121  intended must contain the following statement in capitalized,
 1122  bold letters in a font size larger than any other used on the
 1123  face of the proxy ballot: WAIVING OF RESERVES, IN WHOLE OR IN
 1124  PART, OR ALLOWING ALTERNATIVE USES OF EXISTING RESERVES MAY
 1125  RESULT IN UNIT OWNER LIABILITY FOR PAYMENT OF UNANTICIPATED
 1126  SPECIAL ASSESSMENTS REGARDING THOSE ITEMS.
 1127         b. If the association has voted to waive reserves or to use
 1128  existing reserve funds for purposes other than the purposes for
 1129  which the reserves were intended, the budget must contain the
 1130  following statement in conspicuous type: THE OWNERS HAVE ELECTED
 1131  TO WAIVE RESERVES, IN WHOLE OR IN PART, OR ALLOWED ALTERNATIVE
 1132  USES OF EXISTING RESERVES UNDER SECTION 718.112(2)(f), FLORIDA
 1133  STATUTES. THE WAIVING OR ALTERNATIVE USE OF RESERVE FUNDS MAY
 1134  RESULT IN UNIT OWNER LIABILITY FOR PAYMENT OF UNANTICIPATED
 1135  SPECIAL ASSESSMENTS REGARDING THOSE ITEMS.
 1136         c. On or after January 1, 2026, if the association is
 1137  required to perform a reserve study under this paragraph and the
 1138  budget of the association does not fund the association’s
 1139  reserve obligations consistent with the reserve study currently
 1140  in effect, the budget must also contain the following statement
 1141  in conspicuous type: THE ASSOCIATION’S LAST RESERVE STUDY IS
 1142  DATED ..... THE RESERVE AMOUNT BUDGETED AND/OR COLLECTED IS LESS
 1143  THAN REQUIRED BY THE RESERVE STUDY SCHEDULE. FAILURE TO FUND
 1144  RESERVES CONSISTENT WITH THE ASSOCIATION’S RESERVE STUDY MAY
 1145  RESULT IN UNANTICIPATED SPECIAL ASSESSMENTS REGARDING THOSE
 1146  ITEMS.
 1147         (p)Mandatory milestone inspections.—If an association is
 1148  required to have a milestone inspection performed pursuant to s.
 1149  553.899, the association must arrange for the milestone
 1150  inspection to be performed and is responsible for ensuring
 1151  compliance with the requirements of s. 553.899. The association
 1152  is responsible for all costs associated with the inspection.
 1153  Upon completion of a phase one or phase two milestone inspection
 1154  and receipt of the inspector-prepared summary of the inspection
 1155  report from the architect or engineer who performed the
 1156  inspection, the association must distribute a copy of the
 1157  inspector-prepared summary of the inspection report to each unit
 1158  owner, regardless of the findings or recommendations in the
 1159  report, by United States mail or personal delivery; must post a
 1160  copy of the inspector-prepared summary in a conspicuous place on
 1161  the condominium property; and must publish the full report and
 1162  inspector-prepared summary on the association’s website, if the
 1163  association is required to have a website.
 1164         Section 5. Present subsections (4) through (9) of section
 1165  718.113, Florida Statutes, are redesignated as subsections (5)
 1166  through (10), respectively, a new subsection (4) is added to
 1167  that section, and subsections (1) and (2) of that section are
 1168  amended, to read:
 1169         718.113 Maintenance; limitation upon improvement; display
 1170  of flag; hurricane shutters and protection; display of religious
 1171  decorations.—
 1172         (1) Maintenance of the common elements is the
 1173  responsibility of the association, except for any maintenance
 1174  responsibility for limited common elements assigned to the unit
 1175  owner by the declaration. The association shall provide for the
 1176  maintenance, repair, and replacement of the condominium property
 1177  for which it bears responsibility. After turnover of control of
 1178  the association to the unit owners, the association must perform
 1179  any required maintenance identified by the developer pursuant to
 1180  s. 718.301(4)(p) until the association obtains new maintenance
 1181  protocols from a licensed professional engineer or architect.
 1182  The declaration may provide that certain limited common elements
 1183  shall be maintained by those entitled to use the limited common
 1184  elements or that the association shall provide the maintenance,
 1185  either as a common expense or with the cost shared only by those
 1186  entitled to use the limited common elements. If the maintenance
 1187  is to be by the association at the expense of only those
 1188  entitled to use the limited common elements, the declaration
 1189  shall describe in detail the method of apportioning such costs
 1190  among those entitled to use the limited common elements, and the
 1191  association may use the provisions of s. 718.116 to enforce
 1192  payment of the shares of such costs by the unit owners entitled
 1193  to use the limited common elements.
 1194         (2)(a) Except as otherwise provided in this section, there
 1195  shall be no material alteration or substantial additions to the
 1196  common elements or to real property which is association
 1197  property, except in a manner provided in the declaration as
 1198  originally recorded or as amended under the procedures provided
 1199  therein. If the declaration as originally recorded or as amended
 1200  under the procedures provided therein does not specify the
 1201  procedure for approval of material alterations or substantial
 1202  additions, 75 percent of the total voting interests of the
 1203  association must approve the alterations or additions before the
 1204  material alterations or substantial additions are commenced.
 1205  This paragraph is intended to clarify existing law and applies
 1206  to associations existing on July 1, 2018.
 1207         (b) There shall not be any material alteration of, or
 1208  substantial addition to, the common elements of any condominium
 1209  operated by a multicondominium association unless approved in
 1210  the manner provided in the declaration of the affected
 1211  condominium or condominiums as originally recorded or as amended
 1212  under the procedures provided therein. If a declaration as
 1213  originally recorded or as amended under the procedures provided
 1214  therein does not specify a procedure for approving such an
 1215  alteration or addition, the approval of 75 percent of the total
 1216  voting interests of each affected condominium is required before
 1217  the material alterations or substantial additions are commenced.
 1218  This subsection does not prohibit a provision in any
 1219  declaration, articles of incorporation, or bylaws as originally
 1220  recorded or as amended under the procedures provided therein
 1221  requiring the approval of unit owners in any condominium
 1222  operated by the same association or requiring board approval
 1223  before a material alteration or substantial addition to the
 1224  common elements is permitted. This paragraph is intended to
 1225  clarify existing law and applies to associations existing on
 1226  July 1, 2018.
 1227         (c) There shall not be any material alteration or
 1228  substantial addition made to association real property operated
 1229  by a multicondominium association, except as provided in the
 1230  declaration, articles of incorporation, or bylaws as originally
 1231  recorded or as amended under the procedures provided therein. If
 1232  the declaration, articles of incorporation, or bylaws as
 1233  originally recorded or as amended under the procedures provided
 1234  therein do not specify the procedure for approving an alteration
 1235  or addition to association real property, the approval of 75
 1236  percent of the total voting interests of the association is
 1237  required before the material alterations or substantial
 1238  additions are commenced. This paragraph is intended to clarify
 1239  existing law and applies to associations existing on July 1,
 1240  2018.
 1241         (d) The necessary maintenance, repair, or replacement of
 1242  condominium property is not a material alteration or substantial
 1243  addition requiring unit owner approval.
 1244         (4) The association is not liable for alternative housing
 1245  costs, lost rent, or other expenses if a unit must be vacated in
 1246  whole or in part or if access to a common element is denied for
 1247  necessary maintenance, repair, or replacement of condominium
 1248  property.
 1249         Section 6. Paragraphs (a) and (e) of subsection (1) of
 1250  section 718.115, Florida Statutes, are amended to read:
 1251         718.115 Common expenses and common surplus.—
 1252         (1)(a) Common expenses include the expenses of the
 1253  operation, maintenance, repair, replacement, or protection of
 1254  the common elements and association property, costs of carrying
 1255  out the powers and duties of the association, and any other
 1256  expense, whether or not included in the foregoing, designated as
 1257  common expense by this chapter, the declaration, the documents
 1258  creating the association, or the bylaws. Common expenses also
 1259  include reasonable transportation services, insurance for
 1260  directors and officers, road maintenance and operation expenses,
 1261  in-house communications, and security services, which are
 1262  reasonably related to the general benefit of the unit owners
 1263  even if such expenses do not attach to the common elements or
 1264  property of the condominium. However, such common expenses must
 1265  either have been services or items provided on or after the date
 1266  control of the association is transferred from the developer to
 1267  the unit owners or must be services or items provided for in the
 1268  condominium documents or bylaws. Unless the manner of payment or
 1269  allocation of expenses is otherwise addressed in the declaration
 1270  of condominium, the expenses of any items or services required
 1271  by any federal, state, or local governmental entity to be
 1272  installed, maintained, or supplied to the condominium property
 1273  by the association, including, but not limited to, firesafety
 1274  equipment or water and sewer service where a master meter serves
 1275  the condominium, shall be common expenses whether or not such
 1276  items or services are specifically identified as common expenses
 1277  in the declaration of condominium, articles of incorporation, or
 1278  bylaws of the association. Notwithstanding any provision in a
 1279  declaration, the articles of incorporation, or the bylaws
 1280  requiring, prohibiting, or limiting a board of administration’s
 1281  authority to adopt a special assessment or to borrow money on
 1282  behalf of the association, including any provision in a
 1283  declaration, the articles of incorporation, or the bylaws
 1284  requiring unit owner voting or approval, the board may adopt a
 1285  special assessment or borrow money for the necessary
 1286  maintenance, repair, or replacement of condominium property.
 1287         (e) The expense of installation, replacement, operation,
 1288  repair, and maintenance of hurricane shutters, impact glass,
 1289  code-compliant windows or doors, or other types of code
 1290  compliant hurricane protection by the board pursuant to s.
 1291  718.113(6) s. 718.113(5) constitutes a common expense and shall
 1292  be collected as provided in this section if the association is
 1293  responsible for the maintenance, repair, and replacement of the
 1294  hurricane shutters, impact glass, code-compliant windows or
 1295  doors, or other types of code-compliant hurricane protection
 1296  pursuant to the declaration of condominium. However, if the
 1297  maintenance, repair, and replacement of the hurricane shutters,
 1298  impact glass, code-compliant windows or doors, or other types of
 1299  code-compliant hurricane protection are the responsibility of
 1300  the unit owners pursuant to the declaration of condominium, the
 1301  cost of the installation of the hurricane shutters, impact
 1302  glass, code-compliant windows or doors, or other types of code
 1303  compliant hurricane protection is not a common expense and shall
 1304  be charged individually to the unit owners based on the cost of
 1305  installation of the hurricane shutters, impact glass, code
 1306  compliant windows or doors, or other types of code-compliant
 1307  hurricane protection appurtenant to the unit. Notwithstanding s.
 1308  718.116(9), and regardless of whether or not the declaration
 1309  requires the association or unit owners to maintain, repair, or
 1310  replace hurricane shutters, impact glass, code-compliant windows
 1311  or doors, or other types of code-compliant hurricane protection,
 1312  a unit owner who has previously installed hurricane shutters in
 1313  accordance with s. 718.113(6) s. 718.113(5) that comply with the
 1314  current applicable building code shall receive a credit when the
 1315  shutters are installed; a unit owner who has previously
 1316  installed impact glass or code-compliant windows or doors that
 1317  comply with the current applicable building code shall receive a
 1318  credit when the impact glass or code-compliant windows or doors
 1319  are installed; and a unit owner who has installed other types of
 1320  code-compliant hurricane protection that comply with the current
 1321  applicable building code shall receive a credit when the same
 1322  type of other code-compliant hurricane protection is installed,
 1323  and the credit shall be equal to the pro rata portion of the
 1324  assessed installation cost assigned to each unit. However, such
 1325  unit owner remains responsible for the pro rata share of
 1326  expenses for hurricane shutters, impact glass, code-compliant
 1327  windows or doors, or other types of code-compliant hurricane
 1328  protection installed on common elements and association property
 1329  by the board pursuant to s. 718.113(6) s. 718.113(5) and remains
 1330  responsible for a pro rata share of the expense of the
 1331  replacement, operation, repair, and maintenance of such
 1332  shutters, impact glass, code-compliant windows or doors, or
 1333  other types of code-compliant hurricane protection.
 1334         Section 7. Subsections (1) and (5) of section 718.1255,
 1335  Florida Statutes, are amended to read:
 1336         718.1255 Alternative dispute resolution; mediation;
 1337  nonbinding arbitration; applicability.—
 1338         (1) DEFINITIONS.—As used in this section, the term
 1339  “dispute” means any disagreement between two or more parties
 1340  that involves:
 1341         (a) The authority of the board of directors, under this
 1342  chapter or association document, to:
 1343         1. Require any owner to take any action, or not to take any
 1344  action, involving that owner’s unit or the appurtenances
 1345  thereto.
 1346         2. Alter or add to a common area or element.
 1347         (b) The failure of a governing body, when required by this
 1348  chapter or an association document, to:
 1349         1. Properly conduct elections.
 1350         2. Give adequate notice of meetings or other actions.
 1351         3. Properly conduct meetings.
 1352         4. Allow inspection of books and records.
 1353         (c) A plan of termination pursuant to s. 718.117.
 1354         (d) The failure of a governing body, when required by this
 1355  chapter or an association document, to:
 1356         1. Perform a structural or life safety inspection,
 1357  including the milestone inspection required under s. 553.899.
 1358         2. Perform a reserve study as required by law or the
 1359  declaration, articles of incorporation, or bylaws.
 1360         3. Fund reserves as required by law or the declaration,
 1361  articles of incorporation, or bylaws.
 1362         4. Make or provide necessary maintenance or repairs of
 1363  condominium property.
 1364  
 1365  “Dispute” does not include any disagreement that primarily
 1366  involves: title to any unit or common element; the
 1367  interpretation or enforcement of any warranty; the levy of a fee
 1368  or assessment, or the collection of an assessment levied against
 1369  a party; the eviction or other removal of a tenant from a unit;
 1370  alleged breaches of fiduciary duty by one or more directors; or
 1371  claims for damages to a unit based upon the alleged failure of
 1372  the association to maintain the common elements or condominium
 1373  property.
 1374         (5) PRESUIT MEDIATION.—In lieu of the initiation of
 1375  nonbinding arbitration as provided in subsections (1)-(4), a
 1376  party may submit a dispute to presuit mediation in accordance
 1377  with s. 720.311; however, election and recall disputes are not
 1378  eligible for mediation and such disputes must be arbitrated by
 1379  the division or filed in a court of competent jurisdiction.
 1380  Disputes identified in paragraph (1)(d) are not subject to
 1381  nonbinding arbitration under subsections (1)-(4) and must be
 1382  submitted to presuit mediation in accordance with s. 720.311.
 1383         Section 8. Paragraph (p) of subsection (4) of section
 1384  718.301, Florida Statutes, is amended, and paragraph (r) is
 1385  added to that subsection, to read:
 1386         718.301 Transfer of association control; claims of defect
 1387  by association.—
 1388         (4) At the time that unit owners other than the developer
 1389  elect a majority of the members of the board of administration
 1390  of an association, the developer shall relinquish control of the
 1391  association, and the unit owners shall accept control.
 1392  Simultaneously, or for the purposes of paragraph (c) not more
 1393  than 90 days thereafter, the developer shall deliver to the
 1394  association, at the developer’s expense, all property of the
 1395  unit owners and of the association which is held or controlled
 1396  by the developer, including, but not limited to, the following
 1397  items, if applicable, as to each condominium operated by the
 1398  association:
 1399         (p) Notwithstanding when the certificate of occupancy was
 1400  issued or the height of the building, a milestone inspection
 1401  report in compliance with s. 553.899 included in the official
 1402  records, under seal of an architect or engineer authorized to
 1403  practice in this state, and attesting to required maintenance,
 1404  condition, useful life, and replacement costs of the following
 1405  applicable condominium property common elements comprising a
 1406  turnover inspection report:
 1407         1. Roof.
 1408         2. Structure, including load-bearing walls and primary
 1409  structural members and primary structural systems as those terms
 1410  are defined in s. 627.706.
 1411         3. Fireproofing and fire protection systems.
 1412         4. Elevators.
 1413         5. Heating and cooling systems.
 1414         6. Plumbing.
 1415         7. Electrical systems.
 1416         8. Swimming pool or spa and equipment.
 1417         9. Seawalls.
 1418         10. Pavement and parking areas.
 1419         11. Drainage systems.
 1420         12. Painting.
 1421         13. Irrigation systems.
 1422         14. Waterproofing.
 1423         (r)A copy of the most recent reserve study required under
 1424  s. 718.112(2)(f)3., along with the statements indicating the
 1425  status of the reserves required under s. 718.112(2)(f)6., if
 1426  applicable, or a statement in conspicuous type indicating that
 1427  the association has not completed the required reserve study or
 1428  that the association is not required to perform a reserve study,
 1429  as applicable.
 1430         Section 9. Present paragraphs (b) and (c) of subsection (2)
 1431  of section 718.503, Florida Statutes, are redesignated as
 1432  paragraphs (c) and (d), respectively, a new paragraph (b) is
 1433  added to that subsection, and paragraph (b) of subsection (1)
 1434  and paragraph (a) of subsection (2) of that section are amended,
 1435  to read:
 1436         718.503 Developer disclosure prior to sale; nondeveloper
 1437  unit owner disclosure prior to sale; voidability.—
 1438         (1) DEVELOPER DISCLOSURE.—
 1439         (b) Copies of documents to be furnished to prospective
 1440  buyer or lessee.—Until such time as the developer has furnished
 1441  the documents listed below to a person who has entered into a
 1442  contract to purchase a residential unit or lease it for more
 1443  than 5 years, the contract may be voided by that person,
 1444  entitling the person to a refund of any deposit together with
 1445  interest thereon as provided in s. 718.202. The contract may be
 1446  terminated by written notice from the proposed buyer or lessee
 1447  delivered to the developer within 15 days after the buyer or
 1448  lessee receives all of the documents required by this section.
 1449  The developer may not close for 15 days after following the
 1450  execution of the agreement and delivery of the documents to the
 1451  buyer as evidenced by a signed receipt for documents unless the
 1452  buyer is informed in the 15-day voidability period and agrees to
 1453  close before prior to the expiration of the 15 days. The
 1454  developer shall retain in his or her records a separate
 1455  agreement signed by the buyer as proof of the buyer’s agreement
 1456  to close before prior to the expiration of the said voidability
 1457  period. The developer must retain such Said proof shall be
 1458  retained for a period of 5 years after the date of the closing
 1459  of the transaction. The documents to be delivered to the
 1460  prospective buyer are the prospectus or disclosure statement
 1461  with all exhibits, if the development is subject to the
 1462  provisions of s. 718.504, or, if not, then copies of the
 1463  following which are applicable:
 1464         1. The question and answer sheet described in s. 718.504,
 1465  and declaration of condominium, or the proposed declaration if
 1466  the declaration has not been recorded, which shall include the
 1467  certificate of a surveyor approximately representing the
 1468  locations required by s. 718.104.
 1469         2. The documents creating the association.
 1470         3. The bylaws.
 1471         4. The ground lease or other underlying lease of the
 1472  condominium.
 1473         5. The management contract, maintenance contract, and other
 1474  contracts for management of the association and operation of the
 1475  condominium and facilities used by the unit owners having a
 1476  service term in excess of 1 year, and any management contracts
 1477  that are renewable.
 1478         6. The estimated operating budget for the condominium and a
 1479  schedule of expenses for each type of unit, including fees
 1480  assessed pursuant to s. 718.113(1) for the maintenance of
 1481  limited common elements where such costs are shared only by
 1482  those entitled to use the limited common elements.
 1483         7. The lease of recreational and other facilities that will
 1484  be used only by unit owners of the subject condominium.
 1485         8. The lease of recreational and other common facilities
 1486  that will be used by unit owners in common with unit owners of
 1487  other condominiums.
 1488         9. The form of unit lease if the offer is of a leasehold.
 1489         10. Any declaration of servitude of properties serving the
 1490  condominium but not owned by unit owners or leased to them or
 1491  the association.
 1492         11. If the development is to be built in phases or if the
 1493  association is to manage more than one condominium, a
 1494  description of the plan of phase development or the arrangements
 1495  for the association to manage two or more condominiums.
 1496         12. If the condominium is a conversion of existing
 1497  improvements, the statements and disclosure required by s.
 1498  718.616.
 1499         13. The form of agreement for sale or lease of units.
 1500         14. A copy of the floor plan of the unit and the plot plan
 1501  showing the location of the residential buildings and the
 1502  recreation and other common areas.
 1503         15. A copy of all covenants and restrictions that which
 1504  will affect the use of the property and which are not contained
 1505  in the foregoing.
 1506         16. If the developer is required by state or local
 1507  authorities to obtain acceptance or approval of any dock or
 1508  marina facilities intended to serve the condominium, a copy of
 1509  any such acceptance or approval acquired by the time of filing
 1510  with the division under s. 718.502(1), or a statement that such
 1511  acceptance or approval has not been acquired or received.
 1512         17. Evidence demonstrating that the developer has an
 1513  ownership, leasehold, or contractual interest in the land upon
 1514  which the condominium is to be developed.
 1515         18.A copy of the most recent reserve study required under
 1516  s. 718.112(2)(f)3., along with the statements in the budget
 1517  indicating the status of the reserves required under s.
 1518  718.112(2)(f)6., if applicable, or a statement in conspicuous
 1519  type indicating that the association has not completed the
 1520  required reserve study or that the association is not required
 1521  to perform a reserve study, as applicable.
 1522         19. A copy of the inspector-prepared summary of the
 1523  milestone inspection report as described in ss. 553.899 and
 1524  718.301(4)(p).
 1525         (2) NONDEVELOPER DISCLOSURE.—
 1526         (a) Each unit owner who is not a developer as defined by
 1527  this chapter must shall comply with the provisions of this
 1528  subsection before prior to the sale of his or her unit. Each
 1529  prospective purchaser who has entered into a contract for the
 1530  purchase of a condominium unit is entitled, at the seller’s
 1531  expense, to a current copy of all of the following:
 1532         1. The declaration of condominium.,
 1533         2. Articles of incorporation of the association.,
 1534         3. Bylaws and rules of the association.,
 1535         4. Financial information required by s. 718.111.,
 1536         5.A copy of the most recent reserve study required under
 1537  s. 718.112(2)(f)3., along with the statements in the budget
 1538  indicating the status of the reserves required under s.
 1539  718.112(2)(f)6., if applicable, or a statement in conspicuous
 1540  type indicating that the association has not completed the
 1541  required reserve study or that the association is not required
 1542  to perform a reserve study, as applicable.
 1543         6. A copy of the inspector-prepared summary of the
 1544  milestone inspection report as described in ss. 553.899 and
 1545  718.301(4)(p).
 1546         7.and The document entitled “Frequently Asked Questions
 1547  and Answers” required by s. 718.504.
 1548         (b)On and after January 1, 2009, The prospective purchaser
 1549  is shall also be entitled to receive from the seller a copy of a
 1550  governance form. Such form shall be provided by the division
 1551  summarizing governance of condominium associations. In addition
 1552  to such other information as the division considers helpful to a
 1553  prospective purchaser in understanding association governance,
 1554  the governance form shall address the following subjects:
 1555         1. The role of the board in conducting the day-to-day
 1556  affairs of the association on behalf of, and in the best
 1557  interests of, the owners.
 1558         2. The board’s responsibility to provide advance notice of
 1559  board and membership meetings.
 1560         3. The rights of owners to attend and speak at board and
 1561  membership meetings.
 1562         4. The responsibility of the board and of owners with
 1563  respect to maintenance of the condominium property.
 1564         5. The responsibility of the board and owners to abide by
 1565  the condominium documents, this chapter, rules adopted by the
 1566  division, and reasonable rules adopted by the board.
 1567         6. Owners’ rights to inspect and copy association records
 1568  and the limitations on such rights.
 1569         7. Remedies available to owners with respect to actions by
 1570  the board which may be abusive or beyond the board’s power and
 1571  authority.
 1572         8. The right of the board to hire a property management
 1573  firm, subject to its own primary responsibility for such
 1574  management.
 1575         9. The responsibility of owners with regard to payment of
 1576  regular or special assessments necessary for the operation of
 1577  the property and the potential consequences of failure to pay
 1578  such assessments.
 1579         10. The voting rights of owners.
 1580         11. Rights and obligations of the board in enforcement of
 1581  rules in the condominium documents and rules adopted by the
 1582  board.
 1583  
 1584  The governance form shall also include the following statement
 1585  in conspicuous type: “This publication is intended as an
 1586  informal educational overview of condominium governance. In the
 1587  event of a conflict, the provisions of chapter 718, Florida
 1588  Statutes, rules adopted by the Division of Florida Condominiums,
 1589  Timeshares, and Mobile Homes of the Department of Business and
 1590  Professional Regulation, the provisions of the condominium
 1591  documents, and reasonable rules adopted by the condominium
 1592  association’s board of administration prevail over the contents
 1593  of this publication.”
 1594         Section 10. Paragraph (f) of subsection (24) of section
 1595  718.504, Florida Statutes, is amended, and paragraph (q) is
 1596  added to that subsection, to read:
 1597         718.504 Prospectus or offering circular.—Every developer of
 1598  a residential condominium which contains more than 20
 1599  residential units, or which is part of a group of residential
 1600  condominiums which will be served by property to be used in
 1601  common by unit owners of more than 20 residential units, shall
 1602  prepare a prospectus or offering circular and file it with the
 1603  Division of Florida Condominiums, Timeshares, and Mobile Homes
 1604  prior to entering into an enforceable contract of purchase and
 1605  sale of any unit or lease of a unit for more than 5 years and
 1606  shall furnish a copy of the prospectus or offering circular to
 1607  each buyer. In addition to the prospectus or offering circular,
 1608  each buyer shall be furnished a separate page entitled
 1609  “Frequently Asked Questions and Answers,” which shall be in
 1610  accordance with a format approved by the division and a copy of
 1611  the financial information required by s. 718.111. This page
 1612  shall, in readable language, inform prospective purchasers
 1613  regarding their voting rights and unit use restrictions,
 1614  including restrictions on the leasing of a unit; shall indicate
 1615  whether and in what amount the unit owners or the association is
 1616  obligated to pay rent or land use fees for recreational or other
 1617  commonly used facilities; shall contain a statement identifying
 1618  that amount of assessment which, pursuant to the budget, would
 1619  be levied upon each unit type, exclusive of any special
 1620  assessments, and which shall further identify the basis upon
 1621  which assessments are levied, whether monthly, quarterly, or
 1622  otherwise; shall state and identify any court cases in which the
 1623  association is currently a party of record in which the
 1624  association may face liability in excess of $100,000; and which
 1625  shall further state whether membership in a recreational
 1626  facilities association is mandatory, and if so, shall identify
 1627  the fees currently charged per unit type. The division shall by
 1628  rule require such other disclosure as in its judgment will
 1629  assist prospective purchasers. The prospectus or offering
 1630  circular may include more than one condominium, although not all
 1631  such units are being offered for sale as of the date of the
 1632  prospectus or offering circular. The prospectus or offering
 1633  circular must contain the following information:
 1634         (24) Copies of the following, to the extent they are
 1635  applicable, shall be included as exhibits:
 1636         (f) The estimated operating budget for the condominium and
 1637  the required schedule of unit owners’ expenses, and the most
 1638  recent reserve study required under s. 718.112(2)(f)3., along
 1639  with the statements in the budget indicating the status of the
 1640  reserves required under s. 718.112(2)(f)6., if applicable, or a
 1641  statement in conspicuous type indicating that the association
 1642  has not completed the required reserve study or that the
 1643  association is not required to perform a reserve study, as
 1644  applicable.
 1645         (q) A copy of the inspector-prepared summary of the
 1646  milestone inspection report as described in ss. 553.899 and
 1647  718.301(4)(p).
 1648         Section 11. Present subsections (1) through (28) of section
 1649  719.103, Florida Statutes, are redesignated as subsections (2)
 1650  through (29), respectively, and a new subsection (1) is added to
 1651  that section, to read:
 1652         719.103 Definitions.—As used in this chapter:
 1653         (1)“Alternative funding method” means a method for the
 1654  funding of a reserve account by other than an assessment or
 1655  special assessment which may reasonably be expected to fully
 1656  satisfy the association’s reserve funding obligations,
 1657  including, but not limited to, payments into the reserve account
 1658  by a developer who is offering units, or any other method
 1659  approved by the division.
 1660         Section 12. Present subsections (5) through (11) of section
 1661  719.104, Florida Statutes, are redesignated as subsections (6)
 1662  through (12), respectively, a new subsection (5) is added to
 1663  that section, and paragraphs (a) and (c) of subsection (2) and
 1664  paragraph (a) of subsection (4) of that section are amended, to
 1665  read:
 1666         719.104 Cooperatives; access to units; records; financial
 1667  reports; assessments; purchase of leases.—
 1668         (2) OFFICIAL RECORDS.—
 1669         (a) From the inception of the association, the association
 1670  shall maintain a copy of each of the following, where
 1671  applicable, which shall constitute the official records of the
 1672  association:
 1673         1. The plans, permits, warranties, and other items provided
 1674  by the developer pursuant to s. 719.301(4).
 1675         2. A photocopy of the cooperative documents.
 1676         3. A copy of the current rules of the association.
 1677         4. A book or books containing the minutes of all meetings
 1678  of the association, of the board of directors, and of the unit
 1679  owners.
 1680         5. A current roster of all unit owners and their mailing
 1681  addresses, unit identifications, voting certifications, and, if
 1682  known, telephone numbers. The association shall also maintain
 1683  the e-mail addresses and the numbers designated by unit owners
 1684  for receiving notice sent by electronic transmission of those
 1685  unit owners consenting to receive notice by electronic
 1686  transmission. The e-mail addresses and numbers provided by unit
 1687  owners to receive notice by electronic transmission shall be
 1688  removed from association records when consent to receive notice
 1689  by electronic transmission is revoked. However, the association
 1690  is not liable for an erroneous disclosure of the e-mail address
 1691  or the number for receiving electronic transmission of notices.
 1692         6. All current insurance policies of the association.
 1693         7. A current copy of any management agreement, lease, or
 1694  other contract to which the association is a party or under
 1695  which the association or the unit owners have an obligation or
 1696  responsibility.
 1697         8. Bills of sale or transfer for all property owned by the
 1698  association.
 1699         9. Accounting records for the association and separate
 1700  accounting records for each unit it operates, according to good
 1701  accounting practices. The accounting records shall include, but
 1702  not be limited to:
 1703         a. Accurate, itemized, and detailed records of all receipts
 1704  and expenditures.
 1705         b. A current account and a monthly, bimonthly, or quarterly
 1706  statement of the account for each unit designating the name of
 1707  the unit owner, the due date and amount of each assessment, the
 1708  amount paid upon the account, and the balance due.
 1709         c. All audits, reviews, accounting statements, reserve
 1710  studies and reserve funding plans, and financial reports of the
 1711  association.
 1712         d. All contracts for work to be performed. Bids for work to
 1713  be performed shall also be considered official records and shall
 1714  be maintained for a period of 1 year.
 1715         10. Ballots, sign-in sheets, voting proxies, and all other
 1716  papers and electronic records relating to voting by unit owners,
 1717  which shall be maintained for a period of 1 year after the date
 1718  of the election, vote, or meeting to which the document relates.
 1719         11. All rental records where the association is acting as
 1720  agent for the rental of units.
 1721         12. A copy of the current question and answer sheet as
 1722  described in s. 719.504.
 1723         13. All affirmative acknowledgments made pursuant to s.
 1724  719.108(3)(b)3.
 1725         14. A copy of the inspection reports as described in ss.
 1726  553.899 and 719.301(4)(p) and any other inspection report
 1727  relating to a structural or life safety inspection of the
 1728  cooperative property. Such record must be maintained by the
 1729  association for 15 years after receipt of the report.
 1730         15. All other written records of the association not
 1731  specifically included in the foregoing which are related to the
 1732  operation of the association.
 1733         (c) The official records of the association are open to
 1734  inspection by any association member or the authorized
 1735  representative of such member at all reasonable times. The right
 1736  to inspect the records includes the right to make or obtain
 1737  copies, at the reasonable expense, if any, of the association
 1738  member. A renter of a unit has a right to inspect and copy only
 1739  the association’s bylaws and rules and the inspection reports
 1740  described in ss. 553.899 and 719.301(4)(p). The association may
 1741  adopt reasonable rules regarding the frequency, time, location,
 1742  notice, and manner of record inspections and copying, but may
 1743  not require a member to demonstrate any purpose or state any
 1744  reason for the inspection. The failure of an association to
 1745  provide the records within 10 working days after receipt of a
 1746  written request creates a rebuttable presumption that the
 1747  association willfully failed to comply with this paragraph. A
 1748  member who is denied access to official records is entitled to
 1749  the actual damages or minimum damages for the association’s
 1750  willful failure to comply. The minimum damages are $50 per
 1751  calendar day for up to 10 days, beginning on the 11th working
 1752  day after receipt of the written request. The failure to permit
 1753  inspection entitles any person prevailing in an enforcement
 1754  action to recover reasonable attorney fees from the person in
 1755  control of the records who, directly or indirectly, knowingly
 1756  denied access to the records. Any person who knowingly or
 1757  intentionally defaces or destroys accounting records that are
 1758  required by this chapter to be maintained during the period for
 1759  which such records are required to be maintained, or who
 1760  knowingly or intentionally fails to create or maintain
 1761  accounting records that are required to be created or
 1762  maintained, with the intent of causing harm to the association
 1763  or one or more of its members, is personally subject to a civil
 1764  penalty under s. 719.501(1)(d). The association shall maintain
 1765  an adequate number of copies of the declaration, articles of
 1766  incorporation, bylaws, and rules, and all amendments to each of
 1767  the foregoing, as well as the question and answer sheet as
 1768  described in s. 719.504 and year-end financial information
 1769  required by the department, on the cooperative property to
 1770  ensure their availability to members and prospective purchasers,
 1771  and may charge its actual costs for preparing and furnishing
 1772  these documents to those requesting the same. An association
 1773  shall allow a member or his or her authorized representative to
 1774  use a portable device, including a smartphone, tablet, portable
 1775  scanner, or any other technology capable of scanning or taking
 1776  photographs, to make an electronic copy of the official records
 1777  in lieu of the association providing the member or his or her
 1778  authorized representative with a copy of such records. The
 1779  association may not charge a member or his or her authorized
 1780  representative for the use of a portable device. Notwithstanding
 1781  this paragraph, the following records shall not be accessible to
 1782  members:
 1783         1. Any record protected by the lawyer-client privilege as
 1784  described in s. 90.502 and any record protected by the work
 1785  product privilege, including any record prepared by an
 1786  association attorney or prepared at the attorney’s express
 1787  direction which reflects a mental impression, conclusion,
 1788  litigation strategy, or legal theory of the attorney or the
 1789  association, and which was prepared exclusively for civil or
 1790  criminal litigation or for adversarial administrative
 1791  proceedings, or which was prepared in anticipation of such
 1792  litigation or proceedings until the conclusion of the litigation
 1793  or proceedings.
 1794         2. Information obtained by an association in connection
 1795  with the approval of the lease, sale, or other transfer of a
 1796  unit.
 1797         3. Personnel records of association or management company
 1798  employees, including, but not limited to, disciplinary, payroll,
 1799  health, and insurance records. For purposes of this
 1800  subparagraph, the term “personnel records” does not include
 1801  written employment agreements with an association employee or
 1802  management company, or budgetary or financial records that
 1803  indicate the compensation paid to an association employee.
 1804         4. Medical records of unit owners.
 1805         5. Social security numbers, driver license numbers, credit
 1806  card numbers, e-mail addresses, telephone numbers, facsimile
 1807  numbers, emergency contact information, addresses of a unit
 1808  owner other than as provided to fulfill the association’s notice
 1809  requirements, and other personal identifying information of any
 1810  person, excluding the person’s name, unit designation, mailing
 1811  address, property address, and any address, e-mail address, or
 1812  facsimile number provided to the association to fulfill the
 1813  association’s notice requirements. Notwithstanding the
 1814  restrictions in this subparagraph, an association may print and
 1815  distribute to unit owners a directory containing the name, unit
 1816  address, and all telephone numbers of each unit owner. However,
 1817  an owner may exclude his or her telephone numbers from the
 1818  directory by so requesting in writing to the association. An
 1819  owner may consent in writing to the disclosure of other contact
 1820  information described in this subparagraph. The association is
 1821  not liable for the inadvertent disclosure of information that is
 1822  protected under this subparagraph if the information is included
 1823  in an official record of the association and is voluntarily
 1824  provided by an owner and not requested by the association.
 1825         6. Electronic security measures that are used by the
 1826  association to safeguard data, including passwords.
 1827         7. The software and operating system used by the
 1828  association which allow the manipulation of data, even if the
 1829  owner owns a copy of the same software used by the association.
 1830  The data is part of the official records of the association.
 1831         8. All affirmative acknowledgments made pursuant to s.
 1832  719.108(3)(b)3.
 1833         (4) FINANCIAL REPORT.—
 1834         (a) Within 90 days following the end of the fiscal or
 1835  calendar year or annually on such date as provided in the bylaws
 1836  of the association, the board of administration shall prepare
 1837  and complete, or contract with a third party to prepare and
 1838  complete, a financial report covering the preceding fiscal or
 1839  calendar year. Within 21 days after the financial report is
 1840  completed by the association or received from the third party,
 1841  but no later than 120 days after the end of the fiscal year,
 1842  calendar year, or other date provided in the bylaws, the
 1843  association shall provide each member with a copy of the annual
 1844  financial report or a written notice that a copy of the
 1845  financial report is available upon request at no charge to the
 1846  member. The division shall adopt rules setting forth uniform
 1847  accounting principles, standards, and reporting requirements.
 1848  The rules must include, but not be limited to, standards for
 1849  presenting a summary of association reserves, including a good
 1850  faith estimate disclosing the annual amount of reserve funds
 1851  that would be necessary for the association to fully fund
 1852  reserves for each reserve item based on the straight-line method
 1853  or to fully fund reserves based on the pooling method. In
 1854  adopting such rules, the division shall consider the number of
 1855  members and annual revenues of an association.
 1856         (5) MAINTENANCE.—
 1857         (a) Maintenance of the common areas is the responsibility
 1858  of the association, except for any maintenance responsibility
 1859  for limited common areas assigned to the unit owner by the
 1860  cooperative documents. The association shall provide for the
 1861  maintenance, repair, and replacement of the cooperative property
 1862  for which it bears responsibility. After turnover of control of
 1863  the association to the unit owners, the association must perform
 1864  any required maintenance identified by the developer pursuant to
 1865  s. 719.301(4)(p) until the association obtains new maintenance
 1866  protocols from a licensed professional engineer or architect.
 1867         (b) The necessary maintenance, repair, or replacement of
 1868  cooperative property is not a material alteration or substantial
 1869  addition requiring unit owner approval.
 1870         (c) The association is not liable for alternative housing
 1871  costs, lost rent, or other expenses if a unit must be vacated in
 1872  whole or in part or if access is denied to a common area for
 1873  necessary maintenance, repair, or replacement of cooperative
 1874  property.
 1875         Section 13. Paragraphs (d) and (j) of subsection (1) of
 1876  section 719.106, Florida Statutes, are amended, and paragraph
 1877  (n) is added to that subsection, to read:
 1878         719.106 Bylaws; cooperative ownership.—
 1879         (1) MANDATORY PROVISIONS.—The bylaws or other cooperative
 1880  documents shall provide for the following, and if they do not,
 1881  they shall be deemed to include the following:
 1882         (d) Shareholder meetings.—There shall be an annual meeting
 1883  of the shareholders. All members of the board of administration
 1884  shall be elected at the annual meeting unless the bylaws provide
 1885  for staggered election terms or for their election at another
 1886  meeting. Any unit owner desiring to be a candidate for board
 1887  membership must comply with subparagraph 1. The bylaws must
 1888  provide the method for calling meetings, including annual
 1889  meetings. Written notice, which must incorporate an
 1890  identification of agenda items, shall be given to each unit
 1891  owner at least 14 days before the annual meeting and posted in a
 1892  conspicuous place on the cooperative property at least 14
 1893  continuous days preceding the annual meeting. Upon notice to the
 1894  unit owners, the board must by duly adopted rule designate a
 1895  specific location on the cooperative property upon which all
 1896  notice of unit owner meetings are posted. In lieu of or in
 1897  addition to the physical posting of the meeting notice, the
 1898  association may, by reasonable rule, adopt a procedure for
 1899  conspicuously posting and repeatedly broadcasting the notice and
 1900  the agenda on a closed-circuit cable television system serving
 1901  the cooperative association. However, if broadcast notice is
 1902  used in lieu of a posted notice, the notice and agenda must be
 1903  broadcast at least four times every broadcast hour of each day
 1904  that a posted notice is otherwise required under this section.
 1905  If broadcast notice is provided, the notice and agenda must be
 1906  broadcast in a manner and for a sufficient continuous length of
 1907  time to allow an average reader to observe the notice and read
 1908  and comprehend the entire content of the notice and the agenda.
 1909  In addition to any of the authorized means of providing notice
 1910  of a meeting of the shareholders, the association may, by rule,
 1911  adopt a procedure for conspicuously posting the meeting notice
 1912  and the agenda on a website serving the cooperative association
 1913  for at least the minimum period of time for which a notice of a
 1914  meeting is also required to be physically posted on the
 1915  cooperative property. Any rule adopted shall, in addition to
 1916  other matters, include a requirement that the association send
 1917  an electronic notice in the same manner as a notice for a
 1918  meeting of the members, which must include a hyperlink to the
 1919  website where the notice is posted, to unit owners whose e-mail
 1920  addresses are included in the association’s official records.
 1921  Unless a unit owner waives in writing the right to receive
 1922  notice of the annual meeting, the notice of the annual meeting
 1923  must be sent by mail, hand delivered, or electronically
 1924  transmitted to each unit owner. An officer of the association
 1925  must provide an affidavit or United States Postal Service
 1926  certificate of mailing, to be included in the official records
 1927  of the association, affirming that notices of the association
 1928  meeting were mailed, hand delivered, or electronically
 1929  transmitted, in accordance with this provision, to each unit
 1930  owner at the address last furnished to the association.
 1931         1. The board of administration shall be elected by written
 1932  ballot or voting machine. A proxy may not be used in electing
 1933  the board of administration in general elections or elections to
 1934  fill vacancies caused by recall, resignation, or otherwise
 1935  unless otherwise provided in this chapter.
 1936         a. At least 60 days before a scheduled election, the
 1937  association shall mail, deliver, or transmit, whether by
 1938  separate association mailing, delivery, or electronic
 1939  transmission or included in another association mailing,
 1940  delivery, or electronic transmission, including regularly
 1941  published newsletters, to each unit owner entitled to vote, a
 1942  first notice of the date of the election. Any unit owner or
 1943  other eligible person desiring to be a candidate for the board
 1944  of administration must give written notice to the association at
 1945  least 40 days before a scheduled election. Together with the
 1946  written notice and agenda as set forth in this section, the
 1947  association shall mail, deliver, or electronically transmit a
 1948  second notice of election to all unit owners entitled to vote,
 1949  together with a ballot that lists all candidates. Upon request
 1950  of a candidate, the association shall include an information
 1951  sheet, no larger than 8 1/2 inches by 11 inches, which must be
 1952  furnished by the candidate at least 35 days before the election,
 1953  to be included with the mailing, delivery, or electronic
 1954  transmission of the ballot, with the costs of mailing, delivery,
 1955  or transmission and copying to be borne by the association. The
 1956  association is not liable for the contents of the information
 1957  sheets provided by the candidates. In order to reduce costs, the
 1958  association may print or duplicate the information sheets on
 1959  both sides of the paper. The division shall by rule establish
 1960  voting procedures consistent with this subparagraph, including
 1961  rules establishing procedures for giving notice by electronic
 1962  transmission and rules providing for the secrecy of ballots.
 1963  Elections shall be decided by a plurality of those ballots cast.
 1964  There is no quorum requirement. However, at least 20 percent of
 1965  the eligible voters must cast a ballot in order to have a valid
 1966  election. A unit owner may not permit any other person to vote
 1967  his or her ballot, and any such ballots improperly cast are
 1968  invalid. A unit owner who needs assistance in casting the ballot
 1969  for the reasons stated in s. 101.051 may obtain assistance in
 1970  casting the ballot. Any unit owner violating this provision may
 1971  be fined by the association in accordance with s. 719.303. The
 1972  regular election must occur on the date of the annual meeting.
 1973  This subparagraph does not apply to timeshare cooperatives.
 1974  Notwithstanding this subparagraph, an election and balloting are
 1975  not required unless more candidates file a notice of intent to
 1976  run or are nominated than vacancies exist on the board. Any
 1977  challenge to the election process must be commenced within 60
 1978  days after the election results are announced.
 1979         b. Within 90 days after being elected or appointed to the
 1980  board, each new director shall do both of the following:
 1981         (I) Certify by affidavit in writing to the secretary of the
 1982  association that he or she has read the association’s bylaws,
 1983  articles of incorporation, proprietary lease, and current
 1984  written policies; that he or she will work to uphold such
 1985  documents and policies to the best of his or her ability; and
 1986  that he or she will faithfully discharge his or her fiduciary
 1987  responsibility to the association’s members. Within 90 days
 1988  after being elected or appointed to the board, in lieu of this
 1989  written certification, the newly elected or appointed director
 1990  may
 1991         (II) Submit a certificate of having satisfactorily
 1992  completed the educational curriculum administered by an
 1993  education provider as approved by the division pursuant to the
 1994  requirements established in chapter 718 within 1 year before or
 1995  90 days after the date of election or appointment. The
 1996  educational certificate is valid and does not have to be
 1997  resubmitted as long as the director serves on the board without
 1998  interruption.
 1999  
 2000  A director who fails to timely file the affidavit and written
 2001  certification or educational certificate is suspended from
 2002  service on the board until he or she complies with this sub
 2003  subparagraph. The board may temporarily fill the vacancy during
 2004  the period of suspension. The secretary of the association shall
 2005  require cause the association to retain a director’s affidavit
 2006  and written certification or educational certificate for
 2007  inspection by the members for 5 years after a director’s
 2008  election or the duration of the director’s uninterrupted tenure,
 2009  whichever is longer. Failure to have such affidavit and written
 2010  certification or educational certificate on file does not affect
 2011  the validity of any board action.
 2012         2. Any approval by unit owners called for by this chapter,
 2013  or the applicable cooperative documents, must be made at a duly
 2014  noticed meeting of unit owners and is subject to this chapter or
 2015  the applicable cooperative documents relating to unit owner
 2016  decisionmaking, except that unit owners may take action by
 2017  written agreement, without meetings, on matters for which action
 2018  by written agreement without meetings is expressly allowed by
 2019  the applicable cooperative documents or law which provides for
 2020  the unit owner action.
 2021         3. Unit owners may waive notice of specific meetings if
 2022  allowed by the applicable cooperative documents or law. Notice
 2023  of meetings of the board of administration, shareholder
 2024  meetings, except shareholder meetings called to recall board
 2025  members under paragraph (f), and committee meetings may be given
 2026  by electronic transmission to unit owners who consent to receive
 2027  notice by electronic transmission. A unit owner who consents to
 2028  receiving notices by electronic transmission is solely
 2029  responsible for removing or bypassing filters that may block
 2030  receipt of mass emails sent to members on behalf of the
 2031  association in the course of giving electronic notices.
 2032         4. Unit owners have the right to participate in meetings of
 2033  unit owners with reference to all designated agenda items.
 2034  However, the association may adopt reasonable rules governing
 2035  the frequency, duration, and manner of unit owner participation.
 2036         5. Any unit owner may tape record or videotape meetings of
 2037  the unit owners subject to reasonable rules adopted by the
 2038  division.
 2039         6. Unless otherwise provided in the bylaws, a vacancy
 2040  occurring on the board before the expiration of a term may be
 2041  filled by the affirmative vote of the majority of the remaining
 2042  directors, even if the remaining directors constitute less than
 2043  a quorum, or by the sole remaining director. In the alternative,
 2044  a board may hold an election to fill the vacancy, in which case
 2045  the election procedures must conform to the requirements of
 2046  subparagraph 1. unless the association has opted out of the
 2047  statutory election process, in which case the bylaws of the
 2048  association control. Unless otherwise provided in the bylaws, a
 2049  board member appointed or elected under this subparagraph shall
 2050  fill the vacancy for the unexpired term of the seat being
 2051  filled. Filling vacancies created by recall is governed by
 2052  paragraph (f) and rules adopted by the division.
 2053  
 2054  Notwithstanding subparagraphs (b)2. and (d)1., an association
 2055  may, by the affirmative vote of a majority of the total voting
 2056  interests, provide for a different voting and election procedure
 2057  in its bylaws, which vote may be by a proxy specifically
 2058  delineating the different voting and election procedures. The
 2059  different voting and election procedures may provide for
 2060  elections to be conducted by limited or general proxy.
 2061         (j) Annual budget.—
 2062         1. The proposed annual budget of common expenses shall be
 2063  detailed and shall show the amounts budgeted by accounts and
 2064  expense classifications, including, if applicable, but not
 2065  limited to, those expenses listed in s. 719.504(20). The board
 2066  of administration shall adopt the annual budget at least 14 days
 2067  prior to the start of the association’s fiscal year. In the
 2068  event that the board fails to timely adopt the annual budget a
 2069  second time, it shall be deemed a minor violation and the prior
 2070  year’s budget shall continue in effect until a new budget is
 2071  adopted.
 2072         2. In addition to annual operating expenses, the budget
 2073  shall include reserve accounts for capital expenditures and
 2074  deferred maintenance. These accounts shall include, but not be
 2075  limited to, the maintenance and replacement of the cooperative
 2076  property identified in s. 719.301(4)(p) roof replacement,
 2077  building painting, and pavement resurfacing, regardless of the
 2078  amount of deferred maintenance expense or replacement cost, and
 2079  for any other items for which the deferred maintenance expense
 2080  or replacement cost exceeds $10,000. The amount to be reserved
 2081  shall be computed by means of a formula which is based upon
 2082  estimated remaining useful life and estimated replacement cost
 2083  or deferred maintenance expense of each reserve item. The
 2084  association may adjust replacement reserve assessments annually
 2085  to take into account any changes in estimates or extension of
 2086  the useful life of a reserve item caused by deferred
 2087  maintenance. This paragraph shall not apply to any budget in
 2088  which the members of an association have, at a duly called
 2089  meeting of the association and by a majority vote of all the
 2090  voting interests, voting in person or by proxy, determined for a
 2091  fiscal year to provide no reserves or reserves less adequate
 2092  than required by this subsection.
 2093         3. However, Prior to turnover of control of an association
 2094  by a developer to unit owners other than a developer pursuant to
 2095  s. 719.301, the developer may vote to waive the reserves or
 2096  reduce the funding of reserves for the first 2 years of the
 2097  operation of the association after which time reserves may only
 2098  be waived or reduced upon the vote of a majority of all
 2099  nondeveloper voting interests voting in person or by limited
 2100  proxy at a duly called meeting of the association. If a meeting
 2101  of the unit owners has been called to determine to provide no
 2102  reserves, or reserves less adequate than required, and such
 2103  result is not attained or a quorum is not attained, the reserves
 2104  as included in the budget shall go into effect. For an
 2105  association that is required to perform a reserve study under
 2106  this paragraph, the developer may only vote to waive reserve
 2107  contributions or reduce reserve funding if the association’s
 2108  reserve obligations are funded consistent with the reserve study
 2109  currently in effect or if the association provides an
 2110  alternative funding method for the association’s reserve
 2111  obligations.
 2112         4.3. Reserve funds and any interest accruing thereon shall
 2113  remain in the reserve account or accounts, and shall be used
 2114  only for authorized reserve expenditures unless their use for
 2115  other purposes is approved in advance by a vote of the majority
 2116  of all the voting interests, voting in person or by limited
 2117  proxy at a duly called meeting of the association; provided that
 2118  the use of reserve funds for a purpose other than authorized
 2119  reserve expenditures is authorized in the exercise of the
 2120  association’s emergency powers under s. 719.128. Prior to
 2121  turnover of control of an association by a developer to unit
 2122  owners other than the developer under s. 719.301, the developer
 2123  may not vote to use reserves for purposes other than that for
 2124  which they were intended without the approval of a majority of
 2125  all nondeveloper voting interests, voting in person or by
 2126  limited proxy at a duly called meeting of the association.
 2127         5. Effective January 1, 2024, unless the cooperative
 2128  documents provide for a more frequent reserve study, an
 2129  association with a residential cooperative building that is
 2130  three stories or more in height and subject to the milestone
 2131  inspection requirements in s. 553.899 must have a study
 2132  conducted of the reserves required to repair, replace, and
 2133  restore the cooperative property identified in s. 719.301(4)(p)
 2134  at least every 3 years. The board shall review the results of
 2135  such study at least annually to determine if reserves are
 2136  sufficient to meet the association’s reserve obligations and to
 2137  make any adjustments the board deems necessary to maintain
 2138  reserves, as appropriate. The division shall adopt rules setting
 2139  forth uniform financial standards and forms for reserve studies.
 2140  The reserve study must include, without limitation:
 2141         a. A summary of any inspection of the major components of
 2142  the cooperative property identified in s. 719.301(4)(p) and any
 2143  other portion of the cooperative property that the association
 2144  is obligated to maintain, repair, replace, or restore;
 2145         b.If applicable, a summary of the findings and
 2146  recommendations of the milestone inspection report required
 2147  under s. 553.899 and any other structural or life safety
 2148  inspection of the cooperative property considered in the reserve
 2149  study;
 2150         c. An identification of the structural components of the
 2151  building for which necessary reserves may be reasonably
 2152  projected and an identification of the structural components of
 2153  the building with an indefinite useful life for which a
 2154  reasonable determination of necessary reserves may not be
 2155  estimated;
 2156         d. An estimate of the useful life of the structural
 2157  components of the building identified in s. 719.301(4)(p) for
 2158  which an estimate of useful life may be determined as attested
 2159  to by a licensed architect or engineer in the turnover
 2160  inspection required under s. 719.301(4)(p), a milestone
 2161  inspection, or any other structural or life safety inspection of
 2162  the cooperative property;
 2163         e. An estimate of the remaining useful life of any other
 2164  portion of the cooperative property that the association is
 2165  obligated to maintain, repair, replace, or restore;
 2166         f. An estimate of the cost of maintenance, repair,
 2167  replacement, or restoration of each major component of the
 2168  cooperative property identified in s. 719.301(4)(p) and any
 2169  other portion of the cooperative property identified pursuant to
 2170  sub-subparagraph c.;
 2171         g. An estimate of the total annual assessment that may be
 2172  necessary to cover the cost of maintaining, repairing,
 2173  replacing, or restoring the major components of the cooperative
 2174  property identified in s. 719.301(4)(p) and any other portion of
 2175  the cooperative property identified pursuant to sub-subparagraph
 2176  c., and an estimate of the funding plan, including any
 2177  alternative funding method, which may be necessary to provide
 2178  adequate funding for the required reserves; and
 2179         h.A schedule for the full funding of reserves. A reserve
 2180  account is fully funded when the actual or projected reserve
 2181  balance in the reserve account is equal in direct proportion to
 2182  the fraction of useful life for a given component or components
 2183  multiplied by the current replacement costs for the component or
 2184  components.
 2185         6. The annual budget must, at minimum:
 2186         a. Identify all items for which reserves are or will be
 2187  established;
 2188         b. Provide an estimate of the maintenance, repair, and
 2189  replacement costs for the structural components for which an
 2190  estimate of useful life may be determined;
 2191         c. Identify any structural component for which a reserve
 2192  account is not established or reserves are not funded, because
 2193  the useful life of the component cannot be determined;
 2194         d. As of the beginning of the fiscal year for which the
 2195  budget is prepared, identify the current amount of accumulated
 2196  funds for each reserve component or, if the pooling method is
 2197  used, the amount of the accumulated pooled funds;
 2198         e.Provide a description of the funding plan for the
 2199  reserve funding obligations of the association, including the
 2200  use of regular assessments, special assessments, and any other
 2201  alternative funding method; and
 2202         f. Provide a description of the procedures used for the
 2203  estimation and accumulation of reserves pursuant to this
 2204  paragraph, the identity of any independent third party who
 2205  conducted the reserve study on behalf of the association, and
 2206  the extent to which the association is funding its reserve
 2207  obligations consistent with the reserve study currently in
 2208  effect.
 2209         7. If the association has voted to waive reserves or to use
 2210  existing reserve funds for purposes other than the purposes for
 2211  which the reserves were intended, the budget must contain the
 2212  following statement in conspicuous type: THE OWNERS HAVE ELECTED
 2213  TO WAIVE RESERVES, IN WHOLE OR IN PART, OR ALLOWED ALTERNATIVE
 2214  USES OF EXISTING RESERVES UNDER SECTION 719.106(1)(j), FLORIDA
 2215  STATUTES. THE WAIVING OR ALTERNATIVE USE OF RESERVE FUNDS MAY
 2216  RESULT IN UNIT OWNER LIABILITY FOR PAYMENT OF UNANTICIPATED
 2217  SPECIAL ASSESSMENTS REGARDING THOSE ITEMS.
 2218         8. On or after January 1, 2026, if the association is
 2219  required to perform a reserve study under this paragraph and the
 2220  budget of the association does not fund the association’s
 2221  reserve obligations consistent with the reserve study currently
 2222  in effect, the budget must also contain the following statement
 2223  in conspicuous type: THE ASSOCIATION’S LAST RESERVE STUDY IS
 2224  DATED ..... THE RESERVE AMOUNT BUDGETED AND/OR COLLECTED IS LESS
 2225  THAN REQUIRED BY THE RESERVE STUDY SCHEDULE. THE BUDGET OF THE
 2226  ASSOCIATION DOES NOT PROVIDE FOR FULLY FUNDED RESERVE ACCOUNTS
 2227  FOR CAPITAL EXPENDITURES AND DEFERRED MAINTENANCE CONSISTENT
 2228  WITH THE ASSOCIATION’S RESERVE STUDY. FAILURE TO FUND RESERVES
 2229  CONSISTENT WITH THE ASSOCIATION’S RESERVE STUDY MAY RESULT IN
 2230  UNANTICIPATED SPECIAL ASSESSMENTS REGARDING THOSE ITEMS.
 2231         (n)Mandatory milestone inspections.If an association is
 2232  required to have a milestone inspection performed pursuant to s.
 2233  553.899, the association must arrange for the milestone
 2234  inspection to be performed and is responsible for ensuring
 2235  compliance with the requirements of s. 553.899. The association
 2236  is responsible for all costs associated with the inspection.
 2237  Upon completion of a phase one or phase two milestone inspection
 2238  and receipt of the inspector-prepared summary of the inspection
 2239  report from the architect or engineer who performed the
 2240  inspection, the association must distribute a copy of the
 2241  inspector-prepared summary of the inspection report to each unit
 2242  owner, regardless of the findings or recommendations in the
 2243  report, by United States mail or personal delivery; must post a
 2244  copy of the inspector-prepared summary in a conspicuous place on
 2245  the cooperative property; and must publish the full report and
 2246  inspector-prepared summary on the association’s website, if the
 2247  association is required to have a website.
 2248         Section 14. Paragraph (f) is added to subsection (1) of
 2249  section 719.107, Florida Statutes, to read:
 2250         719.107 Common expenses; assessment.—
 2251         (1)
 2252         (f) Notwithstanding any provision in the cooperative
 2253  documents requiring, prohibiting, or limiting a board of
 2254  administration’s authority to adopt a special assessment or to
 2255  borrow money on behalf of the association, including any
 2256  provision in the cooperative documents requiring unit owner
 2257  voting or approval, the board may adopt a special assessment or
 2258  borrow money for the necessary maintenance, repair, or
 2259  replacement of the cooperative property.
 2260         Section 15. Paragraphs (p) and (q) are added to subsection
 2261  (4) of section 719.301, Florida Statutes, to read:
 2262         719.301 Transfer of association control.—
 2263         (4) When unit owners other than the developer elect a
 2264  majority of the members of the board of administration of an
 2265  association, the developer shall relinquish control of the
 2266  association, and the unit owners shall accept control.
 2267  Simultaneously, or for the purpose of paragraph (c) not more
 2268  than 90 days thereafter, the developer shall deliver to the
 2269  association, at the developer’s expense, all property of the
 2270  unit owners and of the association held or controlled by the
 2271  developer, including, but not limited to, the following items,
 2272  if applicable, as to each cooperative operated by the
 2273  association:
 2274         (p) Notwithstanding when the certificate of occupancy was
 2275  issued or the height of the building, a milestone inspection
 2276  report in compliance with s. 553.899 included in the official
 2277  records, under seal of an architect or engineer authorized to
 2278  practice in this state, attesting to required maintenance,
 2279  condition, useful life, and replacement costs of the following
 2280  applicable cooperative property comprising a turnover inspection
 2281  report:
 2282         1. Roof.
 2283         2. Structure, including load-bearing walls and primary
 2284  structural members and primary structural systems as those terms
 2285  are defined in s. 627.706.
 2286         3. Fireproofing and fire protection systems.
 2287         4. Elevators.
 2288         5. Heating and cooling systems.
 2289         6. Plumbing.
 2290         7. Electrical systems.
 2291         8. Swimming pool or spa and equipment.
 2292         9. Seawalls.
 2293         10. Pavement and parking areas.
 2294         11. Drainage systems.
 2295         12. Painting.
 2296         13. Irrigation systems.
 2297         14.Waterproofing.
 2298         (q) A copy of the most recent reserve study required under
 2299  s. 719.106(1)(j), along with the statements indicating the
 2300  status of the reserves required under s. 719.106(1)(j)7. and 8.,
 2301  if applicable, or a statement in conspicuous type indicating
 2302  that the association has not completed the required reserve
 2303  study or that the association is not required to perform a
 2304  reserve study, as applicable.
 2305         Section 16. Paragraph (b) of subsection (1) and paragraph
 2306  (a) of subsection (2) of section 719.503, Florida Statutes, are
 2307  amended to read:
 2308         719.503 Disclosure prior to sale.—
 2309         (1) DEVELOPER DISCLOSURE.—
 2310         (b) Copies of documents to be furnished to prospective
 2311  buyer or lessee.—Until such time as the developer has furnished
 2312  the documents listed below to a person who has entered into a
 2313  contract to purchase a unit or lease it for more than 5 years,
 2314  the contract may be voided by that person, entitling the person
 2315  to a refund of any deposit together with interest thereon as
 2316  provided in s. 719.202. The contract may be terminated by
 2317  written notice from the proposed buyer or lessee delivered to
 2318  the developer within 15 days after the buyer or lessee receives
 2319  all of the documents required by this section. The developer may
 2320  shall not close for 15 days after following the execution of the
 2321  agreement and delivery of the documents to the buyer as
 2322  evidenced by a receipt for documents signed by the buyer unless
 2323  the buyer is informed in the 15-day voidability period and
 2324  agrees to close before prior to the expiration of the 15 days.
 2325  The developer shall retain in his or her records a separate
 2326  signed agreement as proof of the buyer’s agreement to close
 2327  before prior to the expiration of the said voidability period.
 2328  The developer must retain such Said proof shall be retained for
 2329  a period of 5 years after the date of the closing transaction.
 2330  The documents to be delivered to the prospective buyer are the
 2331  prospectus or disclosure statement with all exhibits, if the
 2332  development is subject to the provisions of s. 719.504, or, if
 2333  not, then copies of the following which are applicable:
 2334         1. The question and answer sheet described in s. 719.504,
 2335  and cooperative documents, or the proposed cooperative documents
 2336  if the documents have not been recorded, which shall include the
 2337  certificate of a surveyor approximately representing the
 2338  locations required by s. 719.104.
 2339         2. The documents creating the association.
 2340         3. The bylaws.
 2341         4. The ground lease or other underlying lease of the
 2342  cooperative.
 2343         5. The management contract, maintenance contract, and other
 2344  contracts for management of the association and operation of the
 2345  cooperative and facilities used by the unit owners having a
 2346  service term in excess of 1 year, and any management contracts
 2347  that are renewable.
 2348         6. The estimated operating budget for the cooperative and a
 2349  schedule of expenses for each type of unit, including fees
 2350  assessed to a shareholder who has exclusive use of limited
 2351  common areas, where such costs are shared only by those entitled
 2352  to use such limited common areas.
 2353         7. The lease of recreational and other facilities that will
 2354  be used only by unit owners of the subject cooperative.
 2355         8. The lease of recreational and other common areas that
 2356  will be used by unit owners in common with unit owners of other
 2357  cooperatives.
 2358         9. The form of unit lease if the offer is of a leasehold.
 2359         10. Any declaration of servitude of properties serving the
 2360  cooperative but not owned by unit owners or leased to them or
 2361  the association.
 2362         11. If the development is to be built in phases or if the
 2363  association is to manage more than one cooperative, a
 2364  description of the plan of phase development or the arrangements
 2365  for the association to manage two or more cooperatives.
 2366         12. If the cooperative is a conversion of existing
 2367  improvements, the statements and disclosure required by s.
 2368  719.616.
 2369         13. The form of agreement for sale or lease of units.
 2370         14. A copy of the floor plan of the unit and the plot plan
 2371  showing the location of the residential buildings and the
 2372  recreation and other common areas.
 2373         15. A copy of all covenants and restrictions that which
 2374  will affect the use of the property and which are not contained
 2375  in the foregoing.
 2376         16. If the developer is required by state or local
 2377  authorities to obtain acceptance or approval of any dock or
 2378  marina facilities intended to serve the cooperative, a copy of
 2379  any such acceptance or approval acquired by the time of filing
 2380  with the division pursuant to s. 719.502(1) or a statement that
 2381  such acceptance or approval has not been acquired or received.
 2382         17. Evidence demonstrating that the developer has an
 2383  ownership, leasehold, or contractual interest in the land upon
 2384  which the cooperative is to be developed.
 2385         18. A copy of the most recent reserve study required under
 2386  s. 719.106(1)(j), along with the statements indicating the
 2387  status of the reserves required under s. 719.106(1)(j)7. and 8.,
 2388  if applicable, or a statement in conspicuous type indicating
 2389  that the association has not completed the required reserve
 2390  study or that the association is not required to perform a
 2391  reserve study, as applicable.
 2392         19. A copy of the inspector-prepared summary of the
 2393  milestone inspection report as described in ss. 553.899 and
 2394  719.301(4)(p).
 2395         (2) NONDEVELOPER DISCLOSURE.—
 2396         (a) Each unit owner who is not a developer as defined by
 2397  this chapter must comply with the provisions of this subsection
 2398  before prior to the sale of his or her interest in the
 2399  association. Each prospective purchaser who has entered into a
 2400  contract for the purchase of an interest in a cooperative is
 2401  entitled, at the seller’s expense, to a current copy of all of
 2402  the following:
 2403         1. The articles of incorporation of the association.,
 2404         2. The bylaws, and rules of the association.
 2405         3.,as well as A copy of the question and answer sheet as
 2406  provided in s. 719.504.
 2407         4.A copy of the most recent reserve study required under
 2408  s. 719.106(1)(j), along with the statements in the budget
 2409  indicating the status of the reserves required under s. 719.106
 2410  (1)(j)7. and 8., if applicable, or a statement in conspicuous
 2411  type indicating that the association has not completed the
 2412  required reserve study or that the association is not required
 2413  to perform a reserve study, as applicable.
 2414         5. A copy of the inspector-prepared summary of the
 2415  milestone inspection report as described in ss. 553.899 and
 2416  719.301(4)(p).
 2417         Section 17. Paragraph (f) of subsection (23) of section
 2418  719.504, Florida Statutes, is amended, and paragraph (q) is
 2419  added to that subsection, to read:
 2420         719.504 Prospectus or offering circular.—Every developer of
 2421  a residential cooperative which contains more than 20
 2422  residential units, or which is part of a group of residential
 2423  cooperatives which will be served by property to be used in
 2424  common by unit owners of more than 20 residential units, shall
 2425  prepare a prospectus or offering circular and file it with the
 2426  Division of Florida Condominiums, Timeshares, and Mobile Homes
 2427  prior to entering into an enforceable contract of purchase and
 2428  sale of any unit or lease of a unit for more than 5 years and
 2429  shall furnish a copy of the prospectus or offering circular to
 2430  each buyer. In addition to the prospectus or offering circular,
 2431  each buyer shall be furnished a separate page entitled
 2432  “Frequently Asked Questions and Answers,” which must be in
 2433  accordance with a format approved by the division. This page
 2434  must, in readable language: inform prospective purchasers
 2435  regarding their voting rights and unit use restrictions,
 2436  including restrictions on the leasing of a unit; indicate
 2437  whether and in what amount the unit owners or the association is
 2438  obligated to pay rent or land use fees for recreational or other
 2439  commonly used facilities; contain a statement identifying that
 2440  amount of assessment which, pursuant to the budget, would be
 2441  levied upon each unit type, exclusive of any special
 2442  assessments, and which identifies the basis upon which
 2443  assessments are levied, whether monthly, quarterly, or
 2444  otherwise; state and identify any court cases in which the
 2445  association is currently a party of record in which the
 2446  association may face liability in excess of $100,000; and state
 2447  whether membership in a recreational facilities association is
 2448  mandatory and, if so, identify the fees currently charged per
 2449  unit type. The division shall by rule require such other
 2450  disclosure as in its judgment will assist prospective
 2451  purchasers. The prospectus or offering circular may include more
 2452  than one cooperative, although not all such units are being
 2453  offered for sale as of the date of the prospectus or offering
 2454  circular. The prospectus or offering circular must contain the
 2455  following information:
 2456         (23) Copies of the following, to the extent they are
 2457  applicable, shall be included as exhibits:
 2458         (f) The estimated operating budget for the cooperative and
 2459  the required schedule of unit owners’ expenses, and the most
 2460  recent reserve study required under s. 719.106(1)(j), along with
 2461  the statements in the budget indicating the status of the
 2462  reserves required under s. 719.106(1)(j)7. and 8., if
 2463  applicable, or a statement in conspicuous type indicating that
 2464  the association has not completed the required reserve study or
 2465  that the association is not required to perform a reserve study,
 2466  as applicable.
 2467         (q) A copy of the inspector-prepared summary of the
 2468  milestone inspection report as described in ss. 553.899 and
 2469  719.301(4)(p).
 2470         Section 18. Subsection (2) of section 558.002, Florida
 2471  Statutes, is amended to read:
 2472         558.002 Definitions.—As used in this chapter, the term:
 2473         (2) “Association” has the same meaning as in s. 718.103(3)
 2474  s. 718.103(2), s. 719.103(3) s. 719.103(2), s. 720.301(9), or s.
 2475  723.075.
 2476         Section 19. Paragraph (b) of subsection (1) of section
 2477  718.116, Florida Statutes, is amended to read:
 2478         718.116 Assessments; liability; lien and priority;
 2479  interest; collection.—
 2480         (1)
 2481         (b)1. The liability of a first mortgagee or its successor
 2482  or assignees who acquire title to a unit by foreclosure or by
 2483  deed in lieu of foreclosure for the unpaid assessments that
 2484  became due before the mortgagee’s acquisition of title is
 2485  limited to the lesser of:
 2486         a. The unit’s unpaid common expenses and regular periodic
 2487  assessments which accrued or came due during the 12 months
 2488  immediately preceding the acquisition of title and for which
 2489  payment in full has not been received by the association; or
 2490         b. One percent of the original mortgage debt. The
 2491  provisions of this paragraph apply only if the first mortgagee
 2492  joined the association as a defendant in the foreclosure action.
 2493  Joinder of the association is not required if, on the date the
 2494  complaint is filed, the association was dissolved or did not
 2495  maintain an office or agent for service of process at a location
 2496  which was known to or reasonably discoverable by the mortgagee.
 2497         2. An association, or its successor or assignee, that
 2498  acquires title to a unit through the foreclosure of its lien for
 2499  assessments is not liable for any unpaid assessments, late fees,
 2500  interest, or reasonable attorney’s fees and costs that came due
 2501  before the association’s acquisition of title in favor of any
 2502  other association, as defined in s. 718.103(3) s. 718.103(2) or
 2503  s. 720.301(9), which holds a superior lien interest on the unit.
 2504  This subparagraph is intended to clarify existing law.
 2505         Section 20. Subsection (2) of section 718.121, Florida
 2506  Statutes, is amended to read:
 2507         718.121 Liens.—
 2508         (2) Labor performed on or materials furnished to a unit may
 2509  not be the basis for the filing of a lien under part I of
 2510  chapter 713, the Construction Lien Law, against the unit or
 2511  condominium parcel of any unit owner not expressly consenting to
 2512  or requesting the labor or materials. Labor performed on or
 2513  materials furnished for the installation of a natural gas fuel
 2514  station or an electric vehicle charging station under s.
 2515  718.113(9) s. 718.113(8) may not be the basis for filing a lien
 2516  under part I of chapter 713 against the association, but such a
 2517  lien may be filed against the unit owner. Labor performed on or
 2518  materials furnished to the common elements are not the basis for
 2519  a lien on the common elements, but if authorized by the
 2520  association, the labor or materials are deemed to be performed
 2521  or furnished with the express consent of each unit owner and may
 2522  be the basis for the filing of a lien against all condominium
 2523  parcels in the proportions for which the owners are liable for
 2524  common expenses.
 2525         Section 21. Subsection (3) of section 718.706, Florida
 2526  Statutes, is amended to read:
 2527         718.706 Specific provisions pertaining to offering of units
 2528  by a bulk assignee or bulk buyer.—
 2529         (3) A bulk assignee, while in control of the board of
 2530  administration of the association, may not authorize, on behalf
 2531  of the association:
 2532         (a) The waiver of reserves or the reduction of funding of
 2533  the reserves pursuant to s. 718.112(2)(f)2., unless approved by
 2534  a majority of the voting interests not controlled by the
 2535  developer, bulk assignee, and bulk buyer; or
 2536         (b) The use of reserve expenditures for other purposes
 2537  pursuant to s. 718.112(2)(f)5. s. 718.112(2)(f)3., unless
 2538  approved by a majority of the voting interests not controlled by
 2539  the developer, bulk assignee, and bulk buyer.
 2540         Section 22. Paragraph (d) of subsection (2) of section
 2541  720.3085, Florida Statutes, is amended to read:
 2542         720.3085 Payment for assessments; lien claims.—
 2543         (2)
 2544         (d) An association, or its successor or assignee, that
 2545  acquires title to a parcel through the foreclosure of its lien
 2546  for assessments is not liable for any unpaid assessments, late
 2547  fees, interest, or reasonable attorney’s fees and costs that
 2548  came due before the association’s acquisition of title in favor
 2549  of any other association, as defined in s. 718.103(3) s.
 2550  718.103(2) or s. 720.301(9), which holds a superior lien
 2551  interest on the parcel. This paragraph is intended to clarify
 2552  existing law.
 2553         Section 23. For the purpose of incorporating the amendment
 2554  made by this act to section 718.1255, Florida Statutes, in a
 2555  reference thereto, section 719.1255, Florida Statutes, is
 2556  reenacted to read:
 2557         719.1255 Alternative resolution of disputes.—The Division
 2558  of Florida Condominiums, Timeshares, and Mobile Homes of the
 2559  Department of Business and Professional Regulation shall provide
 2560  for alternative dispute resolution in accordance with s.
 2561  718.1255.
 2562         Section 24. This act shall take effect July 1, 2022.