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