Florida Senate - 2023 SENATOR AMENDMENT
Bill No. CS for CS for SB 154
Ì4097169Î409716
LEGISLATIVE ACTION
Senate . House
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Senator Pizzo moved the following:
1 Senate Substitute for Amendment (315026) (with title
2 amendment)
3
4 Delete lines 575 - 710
5 and insert:
6 determine, by a majority vote of the total voting interests of
7 the association at a duly called meeting of the association, to
8 provide no reserves or less reserves than required by this
9 subsection. For a budget adopted on or after Effective December
10 31, 2024, the members of a unit-owner-controlled association
11 that must obtain a structural integrity reserve study may not
12 determine to provide no reserves or less reserves than required
13 by this subsection for items listed in paragraph (g), except
14 that members of an association operating a multicondominium may
15 determine to provide no reserves or less reserves than required
16 by this subsection if an alternative funding method has been
17 approved by the division.
18 b. Before turnover of control of an association by a
19 developer to unit owners other than a developer under s.
20 718.301, the developer-controlled association may not vote to
21 waive the reserves or reduce funding of the reserves. If a
22 meeting of the unit owners has been called to determine whether
23 to waive or reduce the funding of reserves and no such result is
24 achieved or a quorum is not attained, the reserves included in
25 the budget shall go into effect. After the turnover, the
26 developer may vote its voting interest to waive or reduce the
27 funding of reserves or approve contingent special assessments
28 and lines of credit as provided in sub-subparagraph c.
29 c.(I) In lieu of the reserve accounts required by this
30 subparagraph, members of a unit-owner-controlled association may
31 approve contingent special assessments against each unit to
32 secure a line of credit for the association to provide available
33 funding for deferred maintenance and replacement costs as
34 needed. The line of credit and the contingent special
35 assessments must be approved by a majority of the voting
36 interests of the association. Upon approval by the members of
37 the association and once a line of credit has been approved and
38 made available to the board for the funding of the required
39 deferred maintenance and replacement costs, the association must
40 record a declaration of special assessments evidencing the levy
41 of such special assessments in the public records.
42 (II) Funding from the line of credit must be immediately
43 available for access by the board to fund maintenance and
44 replacement costs that come due, without further approval by the
45 members of the association. At the option of a unit owner, the
46 special assessment may be paid in full at the time it becomes
47 due or the payment may be amortized over a term of years as
48 provided for by the line of credit. However, a unit owner must
49 be able to pay the remaining balance of the special assessment
50 at any time during the amortization period.
51 3. Reserve funds and any interest accruing thereon shall
52 remain in the reserve account or accounts, and may be used only
53 for authorized reserve expenditures unless their use for other
54 purposes is approved in advance by a majority vote of all the
55 total voting interests at a duly called meeting of the
56 association. Before turnover of control of an association by a
57 developer to unit owners other than the developer pursuant to s.
58 718.301, the developer-controlled association may not vote to
59 use reserves for purposes other than those for which they were
60 intended. For a budget adopted on or after Effective December
61 31, 2024, members of a unit-owner-controlled association that
62 must obtain a structural integrity reserve study may not vote to
63 use reserve funds, or any interest accruing thereon, that are
64 reserved for items listed in paragraph (g) for any other purpose
65 other than the replacement or deferred maintenance costs of the
66 components listed in paragraph (g) their intended purpose.
67 4. The only voting interests that are eligible to vote on
68 questions that involve waiving or reducing the funding of
69 reserves, or using existing reserve funds for purposes other
70 than purposes for which the reserves were intended, are the
71 voting interests of the units subject to assessment to fund the
72 reserves in question. Proxy questions relating to waiving or
73 reducing the funding of reserves or using existing reserve funds
74 for purposes other than purposes for which the reserves were
75 intended must contain the following statement in capitalized,
76 bold letters in a font size larger than any other used on the
77 face of the proxy ballot: WAIVING OF RESERVES, IN WHOLE OR IN
78 PART, OR ALLOWING ALTERNATIVE USES OF EXISTING RESERVES MAY
79 RESULT IN UNIT OWNER LIABILITY FOR PAYMENT OF UNANTICIPATED
80 SPECIAL ASSESSMENTS REGARDING THOSE ITEMS.
81 (g) Structural integrity reserve study.—
82 1. A residential condominium An association must have a
83 structural integrity reserve study completed at least every 10
84 years after the condominium’s creation for each building on the
85 condominium property that is three stories or higher in height
86 as determined by the Florida Building Code which includes, at a
87 minimum, a study of the following items as related to the
88 structural integrity and safety of the building:
89 a. Roof.
90 b. Load-bearing walls or other primary structural members.
91 c. Floor.
92 d. Foundation.
93 d.e. Fireproofing and fire protection systems.
94 e.f. Plumbing.
95 f.g. Electrical systems.
96 g.h. Waterproofing and exterior painting.
97 h.i. Windows and exterior doors.
98 i.j. Any other item that has a deferred maintenance expense
99 or replacement cost that exceeds $10,000 and the failure to
100 replace or maintain such item negatively affects the items
101 listed in sub-subparagraphs a.-h. sub-subparagraphs a.-i., as
102 determined by the licensed engineer or architect performing the
103 visual inspection portion of the structural integrity reserve
104 study.
105 2. A structural integrity reserve study is based on a
106 visual inspection of the condominium property. A structural
107 integrity reserve study may be performed by any person qualified
108 to perform such study. However, the visual inspection portion of
109 the structural integrity reserve study must be performed or
110 verified by an engineer licensed under chapter 471, an architect
111 licensed under chapter 481, or a person who is certified as a
112 reserve specialist or professional reserve analyst by the
113 Community Associations Institute or the Association of
114 Professional Reserve Analysts.
115 3. At a minimum, a structural integrity reserve study must
116 identify each item of the condominium property being visually
117 inspected, state the estimated remaining useful life and the
118 estimated replacement cost or deferred maintenance expense of
119 each item of the condominium property being visually inspected,
120 and provide a reserve funding schedule with a recommended annual
121 reserve amount that achieves the estimated replacement cost or
122 deferred maintenance expense of each item of condominium
123 property being visually inspected by the end of the estimated
124 remaining useful life of the item. The structural integrity
125 reserve study may recommend that reserves do not need to be
126 maintained for any item for which an estimate of useful life and
127 an estimate of replacement cost or deferred maintenance expense
128 cannot be determined, or the study may recommend a deferred
129 maintenance expense amount for such item.
130 4. This paragraph does not apply to buildings less than
131 three stories in height; single-family, two-family, or three
132 family dwellings with three or fewer habitable stories above
133 ground; any portion or component of a building that has not been
134 submitted to the condominium form of ownership; or any portion
135 or component of a building that is maintained by a party other
136 than the association.
137 5. Before a developer turns over control of an association
138 to unit owners other than the developer, the developer must have
139 a structural integrity reserve study completed for each building
140 on the condominium property that is three stories or higher in
141 height.
142 6.3. Associations existing on or before July 1, 2022, which
143 are controlled by unit owners other than the developer, must
144 have a structural integrity reserve study completed by December
145 31, 2024, for each building on the condominium property that is
146 three stories or higher in height. An association that is
147 required to complete a milestone inspection in accordance with
148 s. 553.899 on or before December 31, 2026, may complete the
149 structural integrity reserve study simultaneously with the
150 milestone inspection. In no event may the structural integrity
151 reserve study be completed after December 31, 2026.
152 7. If the milestone inspection required by s. 553.899, or
153 an inspection completed for a similar local requirement, was
154 performed within the past 5 years and meets the requirements of
155 this paragraph, such inspection may be used in place of the
156 visual inspection portion of the structural integrity reserve
157 study.
158 8.4. If an association fails to complete a structural
159 integrity reserve study pursuant to this paragraph, such failure
160 is a breach of an officer’s and director’s fiduciary
161 relationship to the unit owners under s. 718.111(1).
162 (h) Mandatory milestone inspections.—If an association is
163 required to have a milestone inspection performed pursuant to s.
164 553.899, the association must arrange for the milestone
165 inspection to be performed and is responsible for ensuring
166 compliance with the requirements of s. 553.899. The association
167 is responsible for all costs associated with the milestone
168 inspection attributable to the portions of the building which
169 the association is responsible for maintaining under the
170 governing documents of the association. If the officers or
171 directors of an association willfully and knowingly fail to have
172 a milestone inspection performed pursuant to s. 553.899, such
173 failure is a breach of the officers’ and directors’ fiduciary
174 relationship to the unit owners under s. 718.111(1)(a). Within
175 14 days after receipt of a written notice from the local
176 enforcement agency that a milestone inspection is required, the
177 association must notify the unit owners of the required
178 milestone inspection and provide the date by which the milestone
179 inspection must be completed. Such notice may be given by
180 electronic submission to unit owners who consent to receive
181 notice by electronic submission or by posting on the
182 association’s website. Within 45 days after receiving Upon
183 completion of a phase one or phase
184
185 ================= T I T L E A M E N D M E N T ================
186 And the title is amended as follows:
187 Delete line 50
188 and insert:
189 certain purposes; authorizing association members to
190 approve certain special assessments and lines of
191 credit for specified purposes; providing requirements
192 for such special assessments and lines of credit;
193 revising requirements for structural