Florida Senate - 2025 COMMITTEE AMENDMENT
Bill No. CS for CS for SB 1742
Ì295004wÎ295004
LEGISLATIVE ACTION
Senate . House
Comm: RCS .
04/22/2025 .
.
.
.
—————————————————————————————————————————————————————————————————
—————————————————————————————————————————————————————————————————
The Committee on Rules (Bradley) recommended the following:
1 Senate Amendment (with title amendment)
2
3 Delete everything after the enacting clause
4 and insert:
5 Section 1. Paragraph (h) is added to subsection (2) of
6 section 468.432, Florida Statutes, and subsection (3) is added
7 to that section, to read:
8 468.432 Licensure of community association managers and
9 community association management firms; exceptions.—
10 (2) A community association management firm or other
11 similar organization responsible for the management of more than
12 10 units or a budget of $100,000 or greater shall not engage or
13 hold itself out to the public as being able to engage in the
14 business of community association management in this state
15 unless it is licensed by the department as a community
16 association management firm in accordance with the provisions of
17 this part.
18 (h) A person who has had his or her community association
19 manager license revoked may not have an indirect or direct
20 ownership interest in, or be an employee, a partner, an officer,
21 a director, or a trustee of, a community association management
22 firm during the 10-year period after the effective date of the
23 revocation. Such person is ineligible to reapply for
24 certification or registration under this part for a period of 10
25 years after the effective date of a revocation.
26 (3) A licensee must create and maintain an online licensure
27 account with the department. Each community association manager
28 must identify on his or her online licensure account the
29 community association management firm for which he or she
30 provides management services and identify each community
31 association for which he or she is the designated on-site
32 community association manager. A licensee must update his or her
33 online licensure account with this information within 30 days
34 after any change to the required information. A community
35 association management firm must identify on its online
36 licensure account the community association managers that it
37 employs to provide community association management services. If
38 a community association manager has his or her license suspended
39 or revoked, the department must give written notice of such
40 suspension or revocation to the community association management
41 firm and the community association for which the manager
42 performs community management services.
43 Section 2. Subsections (1) and (3) of section 468.4334,
44 Florida Statutes, are amended to read:
45 468.4334 Professional practice standards; liability;
46 community association manager requirements; return of records
47 after termination of contract.—
48 (1)(a) A community association manager or a community
49 association management firm is deemed to act as agent on behalf
50 of a community association as principal within the scope of
51 authority authorized by a written contract or under this
52 chapter. A community association manager or a community
53 association management firm may not knowingly perform any act
54 directed by the community association if such an act violates
55 any state or federal law. A community association manager and a
56 community association management firm shall discharge duties
57 performed on behalf of the association as authorized by this
58 chapter loyally, skillfully, and diligently; dealing honestly
59 and fairly; in good faith; with care and full disclosure to the
60 community association; accounting for all funds; and not
61 charging unreasonable or excessive fees.
62 (b) If a community association manager or a community
63 association management firm has a contract with a community
64 association that is subject to the milestone inspection
65 requirements in s. 553.899, or the structural integrity reserve
66 study requirements in s. 718.112(2)(g) and 719.106(1)(k), the
67 community association manager or the community association
68 management firm must comply with those sections that section as
69 directed by the board.
70 (c) Each contract between a community association and a
71 community association manager or community association
72 management firm for community association management services
73 must include the following written statement in at least 12
74 point type, if applicable to the type of management services
75 provided in the contract:
76
77 The community association manager shall abide by all
78 professional standards and record keeping requirements
79 imposed pursuant to part VIII of chapter 468, Florida
80 Statutes.
81
82 (d) A contract between a community association manager or
83 community association management firm and a community
84 association may not waive or limit the professional practice
85 standards required pursuant to this part.
86 (3) A community association manager or community
87 association management firm that is authorized by contract to
88 provide community association management services to a community
89 homeowners’ association shall do all of the following:
90 (a) Attend in person at least one member meeting or board
91 meeting of the community homeowners’ association annually.
92 (b) Provide to the members of the community homeowners’
93 association the name and contact information for each community
94 association manager or representative of a community association
95 management firm assigned to the community homeowners’
96 association, the manager’s or representative’s hours of
97 availability, and a summary of the duties for which the manager
98 or representative is responsible. The community homeowners’
99 association shall also post this information on the
100 association’s website or mobile application, if the association
101 is required to maintain official records on a website or
102 application required under s. 720.303(4)(b). The community
103 association manager or community association management firm
104 shall update the community homeowners’ association and its
105 members within 14 business days after any change to such
106 information.
107 (c) Provide to any member upon request a copy of the
108 contract between the community association manager or community
109 association management firm and the community homeowners’
110 association and include such contract with association’s
111 official records.
112 Section 3. Section 468.4335, Florida Statutes, is amended
113 to read:
114 468.4335 Conflicts of interest.—
115 (1) A community association manager or a community
116 association management firm, including directors, officers, and
117 persons with a financial interest in a community association
118 management firm, or a relative of such persons, must disclose to
119 the board of a community association any activity that may
120 reasonably be construed to be a conflict of interest. A
121 rebuttable presumption of a conflict of interest exists if any
122 of the following occurs without prior notice:
123 (a) A community association manager or a community
124 association management firm, including directors, officers, and
125 persons with a financial interest in a community association
126 management firm, or a relative of such persons, proposes to
127 enter into a contract or other transaction with the association,
128 or enters into a contract for goods or services with the
129 association, for services other than community association
130 management services.
131 (b) A community association manager or a community
132 association management firm, including directors, officers, and
133 persons with a financial interest in a community association
134 management firm, or a relative of such persons, holds an
135 interest in or receives compensation or any thing of value from
136 a person as defined in s. 1.01(3) which corporation, limited
137 liability corporation, partnership, limited liability
138 partnership, or other business entity that conducts business
139 with the association or proposes to enter into a contract or
140 other transaction with the association. As used in this
141 paragraph, the term “compensation” means any referral fee or
142 other monetary benefit derived from a person as defined in s.
143 1.01(3) which provides products or services to the association,
144 and any ownership interests or profit-sharing arrangements with
145 product or service providers recommended to or used by the
146 association.
147 (2) If the association receives and considers a bid that
148 exceeds $2,500 to provide a good or service, other than
149 community association management services which is or may
150 reasonably be construed to be a conflict of interest under
151 subsection (1), from a community association manager or a
152 community association management firm, including directors,
153 officers, and persons with a financial interest in a community
154 association management firm, or a relative of such persons, the
155 association must solicit multiple bids from other third-party
156 providers of such goods or services. This subsection does not
157 apply to any activities or the provision of goods or services
158 that are disclosed in the management services contract as a
159 conflict of interest within the meaning of subsection (1).
160 (3) If a community association manager or a community
161 association management firm, including directors, officers, and
162 persons with a financial interest in a community association
163 management firm, or a relative of such persons, proposes to
164 engage in an activity that is a conflict of interest as
165 described in subsection (1), the proposed activity must be
166 listed on, and all contracts and transactional documents related
167 to the proposed activity must be attached to, the meeting agenda
168 of the next board of administration meeting. The notice for the
169 meeting at which the proposed activity will be considered by the
170 board must include a description of the proposed activity,
171 disclose the possible conflict of interest, and include a copy
172 of all contracts and transactional documents related to the
173 proposed activity. The disclosures of a possible conflict of
174 interest must be entered into the written minutes of the
175 meeting. Approval of the contract, including a management
176 contract between the community association and the community
177 association manager or community association management firm, or
178 other transaction requires an affirmative vote of two-thirds of
179 all directors present. At the next regular or special meeting of
180 the members, the existence of the conflict of interest and the
181 contract or other transaction must be disclosed to the members.
182 If a community association manager or community association
183 management firm has previously disclosed a conflict of interest
184 in an existing management contract entered into between the
185 board of directors and the community association manager or
186 community association management firm, the conflict of interest
187 does not need to be additionally noticed and voted on during the
188 term of such management contract, but, upon renewal, must be
189 noticed and voted on in accordance with this subsection.
190 (4) If the board finds that a community association manager
191 or a community association management firm, including directors,
192 officers, and persons with a financial interest in a community
193 association management firm, or a relative of such persons, has
194 violated this section, the contract is voidable and the
195 association may terminate cancel its community association
196 management contract with the community association manager or
197 the community association management firm by delivery of a
198 written notice terminating the contract. If the contract is
199 terminated canceled, the association is liable only for the
200 reasonable value of the management services provided up to the
201 time of cancellation and is not liable for any termination fees,
202 liquidated damages, or other form of penalty for such
203 cancellation.
204 (5) If an association enters into a contract with a
205 community association manager or a community association
206 management firm, including directors, officers, and persons with
207 a financial interest in a community association management firm,
208 or a relative of such persons, which is a party to or has an
209 interest in an activity that is a possible conflict of interest
210 as described in subsection (1) and such activity has not been
211 properly disclosed as a conflict of interest or potential
212 conflict of interest as required by this section, the contract
213 is voidable and terminates upon the association filing a written
214 notice terminating the contract with its board of directors
215 which contains the consent of at least 20 percent of the voting
216 interests of the association.
217 (6) As used in this section, the term “relative” means a
218 relative within the third degree of consanguinity by blood or
219 marriage.
220 Section 4. Subsection (11) and present subsections (12) and
221 (13) of section 553.899, Florida Statutes, are amended,
222 paragraphs (e) and (f) are added to subsection (3), and a new
223 subsection (12) is added to that section, to read:
224 553.899 Mandatory structural inspections for condominium
225 and cooperative buildings.—
226 (3)
227 (e) On or before October 1, 2025, and on or before each
228 December 31 thereafter, the local enforcement agency responsible
229 for milestone inspections must provide the department, in an
230 electronic format determined by the department, information that
231 may include, but is not limited to:
232 1. The number of buildings required to have a milestone
233 inspection within the agency’s jurisdiction.
234 2. The number of buildings for which a phase one milestone
235 inspection has been completed.
236 3. The number of buildings granted an extension under
237 paragraph (3)(c).
238 4. The number of buildings required to have a phase two
239 milestone inspection.
240 5. The number of buildings for which a phase two milestone
241 inspection has been completed.
242 6. The number, type, and value of permits applied for to
243 complete repairs pursuant to a phase two milestone inspection.
244 7. A list of buildings deemed to be unsafe or uninhabitable
245 due to a milestone inspection.
246 8. The license number of the building code administrator
247 responsible for milestone inspections for the local enforcement
248 agency.
249 (f) Subject to appropriation, the department shall contract
250 with the University of Florida for the purpose of creating a
251 report that provides comprehensive data, evaluation, and
252 analysis on the milestone inspections performed throughout this
253 state during each calendar year or other time period approved by
254 the department. Every local enforcement agency responsible for
255 milestone inspections must provide the university with a copy of
256 any phase one or phase two milestone inspection report by the
257 date specified by the department in a manner prescribed by the
258 university. The university may request any additional
259 information from a local enforcement agency which the university
260 requires to complete this report. The university shall compile
261 the report, and the department shall transmit the report to the
262 Governor, the President of the Senate, and the Speaker of the
263 House of Representatives.
264 (11) A board of county commissioners or municipal governing
265 body shall may adopt an ordinance requiring that a condominium
266 or cooperative association and any other owner that is subject
267 to this section schedule or commence repairs for substantial
268 structural deterioration within a specified timeframe after the
269 local enforcement agency receives a phase two inspection report;
270 however, such repairs must be commenced within 365 days after
271 receiving such report. If an owner of the building fails to
272 submit proof to the local enforcement agency that repairs have
273 been scheduled or have commenced for substantial structural
274 deterioration identified in a phase two inspection report within
275 the required timeframe, the local enforcement agency must review
276 and determine if the building is unsafe for human occupancy.
277 (12) A licensed architect or engineer who bids to perform a
278 milestone inspection must disclose in writing to the association
279 his or her intent to bid on any services related to any
280 maintenance, repair, or replacement which may be recommended by
281 the milestone inspection. Any design professional as defined in
282 s. 558.002(7) or contractor licensed under chapter 489 who
283 submits a bid to the association for performing any services
284 recommended by the milestone inspection may not have an
285 interest, directly or indirectly, in the firm or entity
286 providing the milestone inspection or be a relative of any
287 person having a direct or indirect interest in such firm, unless
288 such relationship is disclosed to the association in writing. As
289 used in this section, the term “relative” means a relative
290 within the third degree of consanguinity by blood or marriage. A
291 contract for services is voidable and terminates upon the
292 association filing a written notice terminating the contract if
293 the design professional or licensed contractor failed to provide
294 the written disclosure of the relationship required under this
295 subsection. A design professional or licensed contractor may be
296 subject to discipline under the applicable practice act for his
297 or her profession for failure to provide the written disclosure
298 of the relationship required under this subsection.
299 (13)(12) By December 31, 2024, the Florida Building
300 Commission shall adopt rules pursuant to ss. 120.536(1) and
301 120.54 to establish a building safety program for the
302 implementation of this section within the Florida Building Code:
303 Existing Building. The building inspection program must, at
304 minimum, include inspection criteria, testing protocols,
305 standardized inspection and reporting forms that are adaptable
306 to an electronic format, and record maintenance requirements for
307 the local authority.
308 (14)(13) The Florida Building Commission shall consult with
309 the State Fire Marshal to provide recommendations to the
310 Legislature for the adoption of comprehensive structural and
311 life safety standards for maintaining and inspecting all types
312 of buildings and structures in this state that are three stories
313 or more in height. The commission shall provide a written report
314 of its recommendations to the Governor, the President of the
315 Senate, and the Speaker of the House of Representatives by
316 December 31, 2023.
317 Section 5. Present subsections (33) and (34) of section
318 718.103, Florida Statutes, are redesignated as subsections (34)
319 and (35), respectively, a new subsection (33) is added to that
320 section, and subsection (1) of that section is amended, to read:
321 718.103 Definitions.—As used in this chapter, the term:
322 (1) “Alternative funding method” means a method approved by
323 the division for funding the capital expenditures and deferred
324 maintenance obligations of the association for a
325 multicondominium association operating at least 25 condominiums
326 which may reasonably be expected to fully satisfy the
327 association’s reserve funding obligations by the, including:
328 (a) The allocation of funds in the annual operating budget
329 of a multicondominium; or
330 (b) Any other method defined by rule of the division which
331 may reasonably be expected to fully satisfy the association’s
332 reserve funding obligations or fund its capital expenditure and
333 deferred maintenance obligations.
334 (33) “Video conference” means a real-time audio and video
335 based meeting between two or more people in different locations
336 using video-enabled and audio-enabled devices. The notice for
337 any meeting that will be conducted by video conference must have
338 a hyperlink and call-in conference telephone number for unit
339 owners to attend the meeting and must have a physical location
340 where unit owners can also attend the meeting in person. All
341 meetings conducted by video conference must be recorded and such
342 recording must be maintained as an official record of the
343 association.
344 Section 6. Paragraphs (a), (c), and (g) of subsection (12),
345 paragraph (a) of subsection (11), and subsection (13) of section
346 718.111, Florida Statutes, are amended, paragraphs (g), (h), and
347 (i) are added to subsection (3) of that section, and subsection
348 (16) is added to that section, to read:
349 718.111 The association.—
350 (3) POWER TO MANAGE CONDOMINIUM PROPERTY AND TO CONTRACT,
351 SUE, AND BE SUED; CONFLICT OF INTEREST.—
352 (g) If an association contracts with a community
353 association manager or a community association management firm,
354 the community association manager or community association
355 management firm must possess all applicable licenses required by
356 part VIII of chapter 468. All board members or officers of an
357 association that contracts with a community association manager
358 or a community association management firm have a duty to ensure
359 that the community association manager or community association
360 management firm is properly licensed before entering into a
361 contract.
362 (h) If a contract is between a community association
363 manager and the association, and the community association
364 manager has his or her license suspended or revoked during the
365 term of a contract with the association, the association may
366 terminate the contract upon delivery of a written notice to the
367 community association manager whose license has been revoked or
368 suspended, effective on the date the community association
369 manager became unlicensed.
370 (i) If a community association management firm has its
371 license suspended or revoked during the term of a contract with
372 the association, the association may terminate the contract upon
373 delivery of a written notice to the community association
374 management firm whose license has been revoked or suspended,
375 effective on the date the community association management firm
376 became unlicensed.
377 (11) INSURANCE.—In order to protect the safety, health, and
378 welfare of the people of this state of the State of Florida and
379 to ensure consistency in the provision of insurance coverage to
380 condominiums and their unit owners, this subsection applies to
381 every residential condominium in this the state, regardless of
382 the date of its declaration of condominium. It is the intent of
383 the Legislature to encourage lower or stable insurance premiums
384 for associations described in this subsection.
385 (a) Every condominium association shall have adequate
386 property insurance as determined under this paragraph,
387 regardless of any requirement in the declaration of condominium
388 for certain coverage by the association for full insurable
389 value, replacement cost, or similar coverage, must be based on
390 the replacement cost of the property to be insured as determined
391 by an independent insurance appraisal or update of a prior
392 appraisal. The replacement cost must be determined at least once
393 every 36 months.
394 1. An association or group of associations may provide
395 adequate property insurance as determined under this paragraph
396 through a self-insurance fund that complies with the
397 requirements of ss. 624.460-624.488.
398 2. The amount of adequate insurance coverage for full
399 insurable value, replacement cost, or similar coverage may be
400 based on the replacement cost of the property to be insured, as
401 determined by an independent insurance appraisal or an update of
402 a previous appraisal. The replacement cost must be determined at
403 least once every 3 years, at minimum.
404 3. The association’s obligation to obtain and association
405 may also provide adequate property insurance coverage for a
406 group of at least three communities created and operating under
407 this chapter, chapter 719, chapter 720, or chapter 721 may be
408 satisfied by obtaining and maintaining for such communities
409 insurance coverage sufficient to cover an amount equal to the
410 probable maximum loss for the communities for a 250-year
411 windstorm event.
412 a. Such probable maximum loss must be determined through
413 the use of a competent model that has been accepted by the
414 Florida Commission on Hurricane Loss Projection Methodology.
415 b. A policy or program providing such coverage may not be
416 issued or renewed after July 1, 2008, unless it has been
417 reviewed and approved by the Office of Insurance Regulation. The
418 review and approval must include approval of the policy and
419 related forms pursuant to ss. 627.410 and 627.411, approval of
420 the rates pursuant to s. 627.062, a determination that the loss
421 model approved by the commission was accurately and
422 appropriately applied to the insured structures to determine the
423 250-year probable maximum loss, and a determination that
424 complete and accurate disclosure of all material provisions is
425 provided to condominium unit owners before execution of the
426 agreement by a condominium association.
427 4.3. When determining the adequate amount of property
428 insurance coverage, the association may consider deductibles as
429 determined by this subsection.
430 (12) OFFICIAL RECORDS.—
431 (a) From the inception of the association, the association
432 shall maintain each of the following items, if applicable, which
433 constitutes the official records of the association:
434 1. A copy of the plans, permits, warranties, and other
435 items provided by the developer under s. 718.301(4).
436 2. A copy photocopy of the recorded declaration of
437 condominium of each condominium operated by the association and
438 each amendment to each declaration.
439 3. A copy photocopy of the recorded bylaws of the
440 association and each amendment to the bylaws.
441 4. A certified copy of the articles of incorporation of the
442 association, or other documents creating the association, and
443 each amendment thereto.
444 5. A copy of the current rules of the association.
445 6. A book or books or electronic records that contain the
446 minutes of all meetings of the association, the board of
447 administration, any committee, and the unit owners, and a
448 recording of all such meetings that are conducted by video
449 conference. If there are approved minutes for a meeting held by
450 video conference, recordings of meetings that are conducted by
451 video conference must be maintained for at least 1 year after
452 the date the video recording is posted as required under
453 paragraph (g).
454 7. A current roster of all unit owners and their mailing
455 addresses, unit identifications, voting certifications, and, if
456 known, telephone numbers. The association shall also maintain
457 the e-mail addresses and facsimile numbers of unit owners
458 consenting to receive notice by electronic transmission. In
459 accordance with sub-subparagraph (c)5.e., the e-mail addresses
460 and facsimile numbers are only accessible to unit owners if
461 consent to receive notice by electronic transmission is
462 provided, or if the unit owner has expressly indicated that such
463 personal information can be shared with other unit owners and
464 the unit owner has not provided the association with a request
465 to opt out of such dissemination with other unit owners. An
466 association must ensure that the e-mail addresses and facsimile
467 numbers are only used for the business operation of the
468 association and may not be sold or shared with outside third
469 parties. If such personal information is included in documents
470 that are released to third parties, other than unit owners, the
471 association must redact such personal information before the
472 document is disseminated. However, the association is not liable
473 for an inadvertent disclosure of the e-mail address or facsimile
474 number for receiving electronic transmission of notices unless
475 such disclosure was made with a knowing or intentional disregard
476 of the protected nature of such information.
477 8. All current insurance policies of the association and
478 condominiums operated by the association.
479 9. A current copy of any management agreement, lease, or
480 other contract to which the association is a party or under
481 which the association or the unit owners have an obligation or
482 responsibility.
483 10. Bills of sale or transfer for all property owned by the
484 association.
485 11. Accounting records for the association and separate
486 accounting records for each condominium that the association
487 operates. Any person who knowingly or intentionally defaces or
488 destroys such records, or who knowingly or intentionally fails
489 to create or maintain such records, with the intent of causing
490 harm to the association or one or more of its members, is
491 personally subject to a civil penalty pursuant to s.
492 718.501(1)(e). The accounting records must include, but are not
493 limited to:
494 a. Accurate, itemized, and detailed records of all receipts
495 and expenditures, including all bank statements and ledgers.
496 b. All invoices, transaction receipts, or deposit slips
497 that substantiate any receipt or expenditure of funds by the
498 association.
499 c. A current account and a monthly, bimonthly, or quarterly
500 statement of the account for each unit designating the name of
501 the unit owner, the due date and amount of each assessment, the
502 amount paid on the account, and the balance due.
503 d. All audits, reviews, accounting statements, structural
504 integrity reserve studies, and financial reports of the
505 association or condominium. Structural integrity reserve studies
506 must be maintained for at least 15 years after the study is
507 completed.
508 e. All contracts for work to be performed. Bids for work to
509 be performed are also considered official records and must be
510 maintained by the association for at least 1 year after receipt
511 of the bid.
512 12. Ballots, sign-in sheets, voting proxies, and all other
513 papers and electronic records relating to voting by unit owners,
514 which must be maintained for 1 year from the date of the
515 election, vote, or meeting to which the document relates,
516 notwithstanding paragraph (b).
517 13. All rental records if the association is acting as
518 agent for the rental of condominium units.
519 14. A copy of the current question and answer sheet as
520 described in s. 718.504.
521 15. A copy of the inspection reports described in ss.
522 553.899 and 718.301(4)(p) and any other inspection report
523 relating to a structural or life safety inspection of
524 condominium property. Such record must be maintained by the
525 association for 15 years after receipt of the report.
526 16. Bids for materials, equipment, or services.
527 17. All affirmative acknowledgments made pursuant to s.
528 718.121(4)(c).
529 18. A copy of all building permits.
530 19. A copy of all satisfactorily completed board member
531 educational certificates.
532 20. A copy of all affidavits required by this chapter.
533 21. A copy of all investment policy statements adopted
534 pursuant to paragraph (16)(c), and all financial statements
535 related to the association’s investment of funds under
536 subsection (16).
537 22.20. All other written records of the association not
538 specifically included in the foregoing which are related to the
539 operation of the association.
540 (c)1.a. The official records of the association are open to
541 inspection by any association member and any person authorized
542 by an association member as a representative of such member at
543 all reasonable times. The right to inspect the records includes
544 the right to make or obtain copies, at the reasonable expense,
545 if any, of the member and of the person authorized by the
546 association member as a representative of such member. A renter
547 of a unit has a right to inspect and copy only the declaration
548 of condominium, the association’s bylaws and rules, and the
549 inspection reports described in ss. 553.899 and 718.301(4)(p).
550 The association may adopt reasonable rules regarding the
551 frequency, time, location, notice, and manner of record
552 inspections and copying but may not require a member to
553 demonstrate any purpose or state any reason for the inspection.
554 The failure of an association to provide the records within 10
555 working days after receipt of a written request creates a
556 rebuttable presumption that the association willfully failed to
557 comply with this paragraph. A unit owner who is denied access to
558 official records is entitled to the actual damages or minimum
559 damages for the association’s willful failure to comply. Minimum
560 damages are $50 per calendar day for up to 10 days, beginning on
561 the 11th working day after receipt of the written request. The
562 failure to permit inspection entitles any person prevailing in
563 an enforcement action to recover reasonable attorney fees from
564 the person in control of the records who, directly or
565 indirectly, knowingly denied access to the records. If the
566 requested records are posted on an association’s website, or are
567 available for download through an application on a mobile
568 device, the association may fulfill its obligations under this
569 paragraph by directing to the website or the application all
570 persons authorized to request access.
571 b. In response to a written request to inspect records, the
572 association must simultaneously provide to the requestor a
573 checklist of all records made available for inspection and
574 copying. The checklist must also identify any of the
575 association’s official records that were not made available to
576 the requestor. An association must maintain a checklist provided
577 under this sub-subparagraph for 7 years. An association
578 delivering a checklist pursuant to this sub-subparagraph creates
579 a rebuttable presumption that the association has complied with
580 this paragraph.
581 2. A director or member of the board or association or a
582 community association manager who willfully and knowingly or
583 intentionally knowingly, willfully, and repeatedly violates
584 subparagraph 1. commits a misdemeanor of the second degree,
585 punishable as provided in s. 775.082 or s. 775.083, and must be
586 removed from office and a vacancy declared. For purposes of this
587 subparagraph, the term “repeatedly” means two or more violations
588 within a 12-month period.
589 3. Any person who willfully and knowingly or intentionally
590 defaces or destroys accounting records that are required by this
591 chapter to be maintained during the period for which such
592 records are required to be maintained, or who willfully and
593 knowingly or intentionally fails to create or maintain
594 accounting records that are required to be created or
595 maintained, with the intent of causing harm to the association
596 or one or more of its members, commits a misdemeanor of the
597 first degree, punishable as provided in s. 775.082 or s.
598 775.083; is personally subject to a civil penalty pursuant to s.
599 718.501(1)(d); and must be removed from office and a vacancy
600 declared.
601 4. A person who willfully and knowingly or intentionally
602 refuses to release or otherwise produce association records with
603 the intent to avoid or escape detection, arrest, trial, or
604 punishment for the commission of a crime, or to assist another
605 person with such avoidance or escape, commits a felony of the
606 third degree, punishable as provided in s. 775.082, s. 775.083,
607 or s. 775.084, and must be removed from office and a vacancy
608 declared.
609 5. The association shall maintain an adequate number of
610 copies of the declaration, articles of incorporation, bylaws,
611 and rules, and all amendments to each of the foregoing, as well
612 as the question and answer sheet as described in s. 718.504 and
613 the most recent annual financial statement and annual budget
614 year-end financial information required under this section, on
615 the condominium property to ensure their availability to unit
616 owners and prospective purchasers, and may charge its actual
617 costs for preparing and furnishing these documents to those
618 requesting the documents. An association shall allow a member or
619 his or her authorized representative to use a portable device,
620 including a smartphone, tablet, portable scanner, or any other
621 technology capable of scanning or taking photographs, to make an
622 electronic copy of the official records in lieu of the
623 association’s providing the member or his or her authorized
624 representative with a copy of such records. The association may
625 not charge a member or his or her authorized representative for
626 the use of a portable device. Notwithstanding this paragraph,
627 the following records are not accessible to unit owners:
628 a. Any record protected by the lawyer-client privilege as
629 described in s. 90.502 and any record protected by the work
630 product privilege, including a record prepared by an association
631 attorney or prepared at the attorney’s express direction, which
632 reflects a mental impression, conclusion, litigation strategy,
633 or legal theory of the attorney or the association, and which
634 was prepared exclusively for civil or criminal litigation or for
635 adversarial administrative proceedings, or which was prepared in
636 anticipation of such litigation or proceedings until the
637 conclusion of the litigation or proceedings.
638 b. Information obtained by an association in connection
639 with the approval of the lease, sale, or other transfer of a
640 unit.
641 c. Personnel records of association or management company
642 employees, including, but not limited to, disciplinary, payroll,
643 health, and insurance records. For purposes of this sub
644 subparagraph, the term “personnel records” does not include
645 written employment agreements with an association employee or
646 management company, or budgetary or financial records that
647 indicate the compensation paid to an association employee.
648 d. Medical records of unit owners.
649 e. Social security numbers, driver license numbers, credit
650 card numbers, e-mail addresses, telephone numbers, facsimile
651 numbers, emergency contact information, addresses of a unit
652 owner other than as provided to fulfill the association’s notice
653 requirements, and other personal identifying information of any
654 person, excluding the person’s name, unit designation, mailing
655 address, property address, and any address, e-mail address, or
656 facsimile number provided to the association to fulfill the
657 association’s notice requirements. Notwithstanding the
658 restrictions in this sub-subparagraph, an association may print
659 and distribute to unit owners a directory containing the name,
660 unit address, and all telephone numbers of each unit owner.
661 However, an owner may exclude his or her telephone numbers from
662 the directory by so requesting in writing to the association. An
663 owner may consent in writing to the disclosure of other contact
664 information described in this sub-subparagraph. The association
665 is not liable for the inadvertent disclosure of information that
666 is protected under this sub-subparagraph if the information is
667 included in an official record of the association and is
668 voluntarily provided by an owner and not requested by the
669 association.
670 f. Electronic security measures that are used by the
671 association to safeguard data, including passwords.
672 g. The software and operating system used by the
673 association which allow the manipulation of data, even if the
674 owner owns a copy of the same software used by the association.
675 The data is part of the official records of the association.
676 h. All affirmative acknowledgments made pursuant to s.
677 718.121(4)(c).
678 (g)1. By January 1, 2019, an association managing a
679 condominium with 150 or more units which does not contain
680 timeshare units shall post digital copies of the documents
681 specified in subparagraph 2. on its website or make such
682 documents available through an application that can be
683 downloaded on a mobile device. Unless a shorter period is
684 otherwise required, a document must be made available on the
685 association’s website or made available for download through an
686 application on a mobile device within 30 days after the
687 association receives or creates an official record specified in
688 subparagraph 2.
689 a. The association’s website or application must be:
690 (I) An independent website, application, or web portal
691 wholly owned and operated by the association; or
692 (II) A website, application, or web portal operated by a
693 third-party provider with whom the association owns, leases,
694 rents, or otherwise obtains the right to operate a web page,
695 subpage, web portal, collection of subpages or web portals, or
696 an application which is dedicated to the association’s
697 activities and on which required notices, records, and documents
698 may be posted or made available by the association.
699 b. The association’s website or application must be
700 accessible through the Internet and must contain a subpage, web
701 portal, or other protected electronic location that is
702 inaccessible to the general public and accessible only to unit
703 owners and employees of the association.
704 c. Upon a unit owner’s written request, the association
705 must provide the unit owner with a username and password and
706 access to the protected sections of the association’s website or
707 application which contain any notices, records, or documents
708 that must be electronically provided.
709 2. A current copy of the following documents must be posted
710 in digital format on the association’s website or application:
711 a. The recorded declaration of condominium of each
712 condominium operated by the association and each amendment to
713 each declaration.
714 b. The recorded bylaws of the association and each
715 amendment to the bylaws.
716 c. The articles of incorporation of the association, or
717 other documents creating the association, and each amendment to
718 the articles of incorporation or other documents. The copy
719 posted pursuant to this sub-subparagraph must be a copy of the
720 articles of incorporation filed with the Department of State.
721 d. The rules of the association.
722 e. The approved minutes of all board of administration
723 meetings over the preceding 12 months.
724 f. The video recording or a hyperlink to the video
725 recording for all meetings of the association, the board of
726 administration, any committee, and the unit owners which are
727 conducted by video conference over the preceding 12 months.
728 g.e. A list of all executory contracts or documents to
729 which the association is a party or under which the association
730 or the unit owners have an obligation or responsibility and,
731 after bidding for the related materials, equipment, or services
732 has closed, a list of bids received by the association within
733 the past year. Summaries of bids for materials, equipment, or
734 services which exceed $500 must be maintained on the website or
735 application for 1 year. In lieu of summaries, complete copies of
736 the bids may be posted.
737 h.f. The annual budget required by s. 718.112(2)(f) and any
738 proposed budget to be considered at the annual meeting.
739 i.g. The financial report required by subsection (13) and
740 any monthly income or expense statement to be considered at a
741 meeting.
742 j.h. The certification of each director required by s.
743 718.112(2)(d)4.b.
744 k.i. All contracts or transactions between the association
745 and any director, officer, corporation, firm, or association
746 that is not an affiliated condominium association or any other
747 entity in which an association director is also a director or
748 officer and financially interested.
749 l.j. Any contract or document regarding a conflict of
750 interest or possible conflict of interest as provided in ss.
751 468.4335, 468.436(2)(b)6., and 718.3027(3).
752 m.k. The notice of any unit owner meeting and the agenda
753 for the meeting, as required by s. 718.112(2)(d)3., no later
754 than 14 days before the meeting. The notice must be posted in
755 plain view on the front page of the website or application, or
756 on a separate subpage of the website or application labeled
757 “Notices” which is conspicuously visible and linked from the
758 front page. The association must also post on its website or
759 application any document to be considered and voted on by the
760 owners during the meeting or any document listed on the agenda
761 at least 7 days before the meeting at which the document or the
762 information within the document will be considered.
763 n.l. Notice of any board meeting, the agenda, and any other
764 document required for the meeting as required by s.
765 718.112(2)(c), which must be posted no later than the date
766 required for notice under s. 718.112(2)(c).
767 o.m. The inspection reports described in ss. 553.899 and
768 718.301(4)(p) and any other inspection report relating to a
769 structural or life safety inspection of condominium property.
770 p.n. The association’s most recent structural integrity
771 reserve study, if applicable.
772 q.o. Copies of all building permits issued for ongoing or
773 planned construction.
774 r. A copy of all affidavits required by this chapter.
775 s. A copy of all investment policy statements adopted
776 pursuant to paragraph (16)(c), and all financial statements
777 related to the association’s investment of funds under
778 subsection (16).
779 3. The association shall ensure that the information and
780 records described in paragraph (c), which are not allowed to be
781 accessible to unit owners, are not posted on the association’s
782 website or application. If protected information or information
783 restricted from being accessible to unit owners is included in
784 documents that are required to be posted on the association’s
785 website or application, the association shall ensure the
786 information is redacted before posting the documents.
787 Notwithstanding the foregoing, the association or its agent is
788 not liable for disclosing information that is protected or
789 restricted under this paragraph unless such disclosure was made
790 with a knowing or intentional disregard of the protected or
791 restricted nature of such information.
792 4. The failure of the association to post information
793 required under subparagraph 2. is not in and of itself
794 sufficient to invalidate any action or decision of the
795 association’s board or its committees.
796 (13) FINANCIAL REPORTING.—Within 90 days after the end of
797 the fiscal year, or annually on a date provided in the bylaws,
798 the association shall prepare and complete, or contract for the
799 preparation and completion of, a financial report for the
800 preceding fiscal year. Within 21 days after the final financial
801 report is completed by the association or received from the
802 third party, but not later than 180 120 days after the end of
803 the fiscal year or other date as provided in the bylaws, the
804 association shall deliver to each unit owner by United States
805 mail or personal delivery at the mailing address, property
806 address, e-mail address, or facsimile number provided to fulfill
807 the association’s notice requirements, a copy of the most recent
808 financial report, or and a notice that a copy of the most recent
809 financial report will be, as requested by the owner, mailed, or
810 hand delivered, or electronically delivered via the Internet to
811 the unit owner, without charge, within 5 business days after
812 receipt of a written request from the unit owner. Evidence of
813 compliance with this delivery requirement must be made by an
814 affidavit executed by an officer or director of the association.
815 The division shall adopt rules setting forth uniform accounting
816 principles and standards to be used by all associations and
817 addressing the financial reporting requirements for
818 multicondominium associations. The rules must include, but not
819 be limited to, standards for presenting a summary of association
820 reserves, including a good faith estimate disclosing the annual
821 amount of reserve funds that would be necessary for the
822 association to fully fund reserves for each reserve item based
823 on the straight-line accounting method. This disclosure is not
824 applicable to reserves funded via the pooling method. In
825 adopting such rules, the division shall consider the number of
826 members and annual revenues of an association. Financial reports
827 shall be prepared as follows:
828 (a) An association that meets the criteria of this
829 paragraph shall prepare a complete set of financial statements
830 in accordance with generally accepted accounting principles. The
831 financial statements must be based upon the association’s total
832 annual revenues, as follows:
833 1. An association with total annual revenues of $150,000 or
834 more, but less than $300,000, shall prepare compiled financial
835 statements.
836 2. An association with total annual revenues of at least
837 $300,000, but less than $500,000, shall prepare reviewed
838 financial statements.
839 3. An association with total annual revenues of $500,000 or
840 more shall prepare audited financial statements.
841 (b)1. An association with total annual revenues of less
842 than $150,000 shall prepare a report of cash receipts and
843 expenditures.
844 2. A report of cash receipts and disbursements must
845 disclose the amount of receipts by accounts and receipt
846 classifications and the amount of expenses by accounts and
847 expense classifications, including, but not limited to, the
848 following, as applicable: costs for security, professional and
849 management fees and expenses, taxes, costs for recreation
850 facilities, expenses for refuse collection and utility services,
851 expenses for lawn care, costs for building maintenance and
852 repair, insurance costs, administration and salary expenses, and
853 reserves accumulated and expended for capital expenditures,
854 deferred maintenance, and any other category for which the
855 association maintains reserves.
856 (c) An association may prepare, without a meeting of or
857 approval by the unit owners:
858 1. Compiled, reviewed, or audited financial statements, if
859 the association is required to prepare a report of cash receipts
860 and expenditures;
861 2. Reviewed or audited financial statements, if the
862 association is required to prepare compiled financial
863 statements; or
864 3. Audited financial statements if the association is
865 required to prepare reviewed financial statements.
866 (d) If approved by a majority vote of all the voting
867 interests present at a properly called meeting of the
868 association, an association may prepare:
869 1. A report of cash receipts and expenditures in lieu of a
870 compiled, reviewed, or audited financial statement;
871 2. A report of cash receipts and expenditures or a compiled
872 financial statement in lieu of a reviewed or audited financial
873 statement; or
874 3. A report of cash receipts and expenditures, a compiled
875 financial statement, or a reviewed financial statement in lieu
876 of an audited financial statement.
877
878 Such meeting and approval must occur before the end of the
879 fiscal year and is effective only for the fiscal year in which
880 the vote is taken. An association may not prepare a financial
881 report pursuant to this paragraph for consecutive fiscal years.
882 If the developer has not turned over control of the association,
883 all unit owners, including the developer, may vote on issues
884 related to the preparation of the association’s financial
885 reports, from the date of incorporation of the association
886 through the end of the second fiscal year after the fiscal year
887 in which the certificate of a surveyor and mapper is recorded
888 pursuant to s. 718.104(4)(e) or an instrument that transfers
889 title to a unit in the condominium which is not accompanied by a
890 recorded assignment of developer rights in favor of the grantee
891 of such unit is recorded, whichever occurs first. Thereafter,
892 all unit owners except the developer may vote on such issues
893 until control is turned over to the association by the
894 developer. Any audit or review prepared under this section shall
895 be paid for by the developer if done before turnover of control
896 of the association.
897 (e) A unit owner may provide written notice to the division
898 of the association’s failure to mail or hand deliver him or her
899 a copy of the most recent financial report within 5 business
900 days after he or she submitted a written request to the
901 association for a copy of such report. If the division
902 determines that the association failed to mail or hand deliver a
903 copy of the most recent financial report to the unit owner, the
904 division shall provide written notice to the association that
905 the association must mail or hand deliver a copy of the most
906 recent financial report to the unit owner and the division
907 within 5 business days after it receives such notice from the
908 division. An association that fails to comply with the
909 division’s request may not waive the financial reporting
910 requirement provided in paragraph (d) for the fiscal year in
911 which the unit owner’s request was made and the following fiscal
912 year. A financial report received by the division pursuant to
913 this paragraph shall be maintained, and the division shall
914 provide a copy of such report to an association member upon his
915 or her request.
916 (16) INVESTMENT OF ASSOCIATION FUNDS.—
917 (a) A board shall, in fulfilling its duty to manage
918 operating and reserve funds of its association, use best efforts
919 to make prudent investment decisions that carefully consider
920 risk and return in an effort to maximize returns on invested
921 funds.
922 (b) An association, including a multicondominium
923 association, may invest reserve funds in one or any combination
924 of certificates of deposit or in depository accounts at a
925 community bank, savings bank, commercial bank, savings and loan
926 association, or credit union. Upon a majority vote of the voting
927 interests, an association may invest reserve funds in
928 investments other than certificates of deposit or depository
929 accounts at a community bank, savings bank, commercial bank,
930 savings and loan association, or credit union, provided the
931 association complies with paragraphs (c)-(g). Notwithstanding
932 any declaration, only funds identified as reserve funds may be
933 invested pursuant to paragraphs (c)-(g). Paragraphs (c)-(g) do
934 not apply to funds invested in one or any combination of
935 certificates of deposit or depository accounts at a community
936 bank, savings bank, commercial bank, savings and loan
937 association, or credit union.
938 (c) The board shall create an investment committee composed
939 of at least two board members and two-unit unit owners who are
940 not board members. The board shall also adopt rules for invested
941 funds, including, but not limited to, rules requiring periodic
942 reviews of any investment manager’s performance, the development
943 of an investment policy statement, and that all meetings of the
944 investment committee be recorded and made part of the official
945 records of the association. The investment policy statement
946 developed pursuant to this paragraph must, at a minimum, address
947 risk, liquidity, and benchmark measurements; authorized classes
948 of investments; authorized investment mixes; limitations on
949 authority relating to investment transactions; requirements for
950 projected reserve expenditures within, at minimum, the next 24
951 months to be held in cash or cash equivalents; projected
952 expenditures relating to a mandatory structural inspection
953 performed pursuant to s. 553.899; and protocols for proxy
954 response.
955 (d) The investment committee shall recommend investment
956 advisers to the board, and the board shall select one of the
957 recommended investment advisers to provide services to the
958 association. Such investment advisers must be registered or have
959 notice filed under s. 517.12. The selected investment adviser
960 and any representative or association of the investment adviser
961 may not be related by affinity or consanguinity to, or under
962 common ownership with, any board member, community management
963 company, reserve study provider, or co-owner of a unit with a
964 board member or investment committee member. The investment
965 adviser shall comply with the prudent investor rule in s.
966 518.11. The investment adviser shall act as a fiduciary to the
967 association in compliance with the standards set forth in the
968 Employee Retirement Income Security Act of 1974 at 29 U.S.C. s.
969 1104(a)(1)(A)-(C). In case of conflict with other laws
970 authorizing investments, the investment and fiduciary standards
971 set forth in this subsection must prevail. If at any time the
972 investment committee determines that an investment adviser does
973 not meet the requirements of this section, the investment
974 committee must recommend a replacement investment adviser to the
975 board.
976 (e) At least once each calendar year, or sooner if a
977 substantial financial obligation of the association becomes
978 known to the board, the association must provide the investment
979 adviser with the association’s investment policy statement, the
980 most recent reserve study report, the association’s structural
981 integrity report, and the financial reports prepared pursuant to
982 subsection (13). If there is no recent reserve study report, the
983 association must provide the investment adviser with a good
984 faith estimate disclosing the annual amount of reserve funds
985 necessary for the association to fund reserves fully for the
986 life of each reserve component and each component’s
987 redundancies. The investment adviser shall annually review these
988 documents and provide the association with a portfolio
989 allocation model that is suitably structured and prudently
990 designed to match projected annual reserve fund requirements and
991 liability, assets, and liquidity requirements. The investment
992 adviser shall prepare a funding projection for each reserve
993 component, including any of the component’s redundancies. The
994 association must have available at all times a minimum of 24
995 months of projected reserves in cash or cash equivalents.
996 (f) Portfolios managed by the investment adviser may
997 contain any type of investment necessary to meet the objectives
998 in the investment policy statement; however, portfolios may not
999 contain stocks, securities, or other obligations that the State
1000 Board of Administration is prohibited from investing in under s.
1001 215.471, s. 215.4725, or s. 215.473 or that state agencies are
1002 prohibited from investing in under s. 215.472, as determined by
1003 the investment adviser. Any funds invested by the investment
1004 adviser must be held in third-party custodial accounts that are
1005 subject to insurance coverage by the Securities Investor
1006 Protection Corporation in an amount equal to or greater than the
1007 invested amount. The investment adviser may withdraw investment
1008 fees, expenses, and commissions from invested funds.
1009 (g) The investment adviser shall:
1010 1. Annually provide the association with a written
1011 certification of compliance with this section and a list of
1012 stocks, securities, and other obligations that are prohibited
1013 from being in association portfolios under paragraph (f); and
1014 2. Submit monthly, quarterly, and annual reports to the
1015 association which are prepared in accordance with established
1016 financial industry standards and in accordance with chapter 517.
1017 (h) Any principal, earnings, or interest managed under this
1018 subsection must be available at no cost or charge to the
1019 association within 15 business days after delivery of the
1020 association’s written or electronic request.
1021 (i) Unallocated income earned on reserve fund investments
1022 must be spent only on capital expenditures, planned maintenance,
1023 structural repairs, or other items for which the reserve
1024 accounts have been established. Any surplus of funds that
1025 exceeds the amount required to maintain reasonably funded
1026 reserves must be managed pursuant to s. 718.115.
1027 Section 7. Paragraphs (b) through (g) of subsection (2) of
1028 section 718.112, Florida Statutes, are amended to read:
1029 718.112 Bylaws.—
1030 (2) REQUIRED PROVISIONS.—The bylaws shall provide for the
1031 following and, if they do not do so, shall be deemed to include
1032 the following:
1033 (b) Quorum; voting requirements; proxies.—
1034 1. Unless a lower number is provided in the bylaws, the
1035 percentage of voting interests required to constitute a quorum
1036 at a meeting of the members is a majority of the voting
1037 interests. Unless otherwise provided in this chapter or in the
1038 declaration, articles of incorporation, or bylaws, and except as
1039 provided in subparagraph (d)4., decisions shall be made by a
1040 majority of the voting interests represented at a meeting at
1041 which a quorum is present.
1042 2. Except as specifically otherwise provided herein, unit
1043 owners in a residential condominium may not vote by general
1044 proxy, but may vote by limited proxies substantially conforming
1045 to a limited proxy form adopted by the division. A voting
1046 interest or consent right allocated to a unit owned by the
1047 association may not be exercised or considered for any purpose,
1048 whether for a quorum, an election, or otherwise. Limited proxies
1049 and general proxies may be used to establish a quorum. Limited
1050 proxies shall be used for votes taken to waive or reduce
1051 reserves in accordance with subparagraph (f)2.; for votes taken
1052 to waive the financial reporting requirements of s. 718.111(13);
1053 for votes taken to amend the declaration pursuant to s. 718.110;
1054 for votes taken to amend the articles of incorporation or bylaws
1055 pursuant to this section; and for any other matter for which
1056 this chapter requires or permits a vote of the unit owners.
1057 Except as provided in paragraph (d), a proxy, limited or
1058 general, may not be used in the election of board members in a
1059 residential condominium. General proxies may be used for other
1060 matters for which limited proxies are not required, and may be
1061 used in voting for nonsubstantive changes to items for which a
1062 limited proxy is required and given. Notwithstanding this
1063 subparagraph, unit owners may vote in person at unit owner
1064 meetings. This subparagraph does not limit the use of general
1065 proxies or require the use of limited proxies for any agenda
1066 item or election at any meeting of a timeshare condominium
1067 association or a nonresidential condominium association.
1068 3. A proxy given is effective only for the specific meeting
1069 for which originally given and any lawfully adjourned meetings
1070 thereof. A proxy is not valid longer than 90 days after the date
1071 of the first meeting for which it was given. Each proxy is
1072 revocable at any time at the pleasure of the unit owner
1073 executing it.
1074 4. A member of the board of administration or a committee
1075 may submit in writing his or her agreement or disagreement with
1076 any action taken at a meeting that the member did not attend.
1077 This agreement or disagreement may not be used as a vote for or
1078 against the action taken or to create a quorum.
1079 5. A board meeting may be conducted in person or by video
1080 conference. A board or committee member’s participation in a
1081 meeting via telephone, real-time videoconferencing, or similar
1082 real-time electronic or video communication counts toward a
1083 quorum, and such member may vote as if physically present. A
1084 speaker must be used so that the conversation of such members
1085 may be heard by the board or committee members attending in
1086 person as well as by any unit owners present at a meeting. The
1087 division shall adopt rules pursuant to ss. 120.536 and 120.54
1088 governing the requirements for meetings.
1089 (c) Board of administration meetings.—In a residential
1090 condominium association of more than 10 units, the board of
1091 administration shall meet at least once each quarter. At least
1092 four times each year, the meeting agenda must include an
1093 opportunity for members to ask questions of the board. Meetings
1094 of the board of administration at which a quorum of the members
1095 is present are open to all unit owners. Members of the board of
1096 administration may use e-mail as a means of communication but
1097 may not cast a vote on an association matter via e-mail. A unit
1098 owner may tape record or videotape the meetings. The right to
1099 attend such meetings includes the right to speak at such
1100 meetings with reference to all designated agenda items and the
1101 right to ask questions relating to reports on the status of
1102 construction or repair projects, the status of revenues and
1103 expenditures during the current fiscal year, and other issues
1104 affecting the condominium. The division shall adopt reasonable
1105 rules governing the tape recording and videotaping of the
1106 meeting. The association may adopt written reasonable rules
1107 governing the frequency, duration, and manner of unit owner
1108 statements.
1109 1. Adequate notice of all board meetings, which must
1110 specifically identify all agenda items, must be posted
1111 conspicuously on the condominium property at least 48 continuous
1112 hours before the meeting except in an emergency. If the board
1113 meeting is to be conducted via video conference, the notice must
1114 state that such meeting will be via video conference and must
1115 include a hyperlink and a conference telephone number for unit
1116 owners to attend the meeting via video conference, as well as
1117 the address of the physical location where the unit owners can
1118 attend the meeting in person. If the meeting is conducted via
1119 video conference, it must be recorded and such recording must be
1120 maintained as an official record of the association. If 20
1121 percent of the voting interests petition the board to address an
1122 item of business, the board, within 60 days after receipt of the
1123 petition, shall place the item on the agenda at its next regular
1124 board meeting or at a special meeting called for that purpose.
1125 An item not included on the notice may be taken up on an
1126 emergency basis by a vote of at least a majority plus one of the
1127 board members. Such emergency action must be noticed and
1128 ratified at the next regular board meeting. Written notice of a
1129 meeting at which a nonemergency special assessment or an
1130 amendment to rules regarding unit use will be considered must be
1131 mailed, delivered, or electronically transmitted to the unit
1132 owners and posted conspicuously on the condominium property at
1133 least 14 days before the meeting. Evidence of compliance with
1134 this 14-day notice requirement must be made by an affidavit
1135 executed by the person providing the notice and filed with the
1136 official records of the association.
1137 2. Upon notice to the unit owners, the board shall, by duly
1138 adopted rule, designate a specific location on the condominium
1139 property at which all notices of board meetings must be posted.
1140 If there is no condominium property at which notices can be
1141 posted, Notices shall be mailed, delivered, or electronically
1142 transmitted to each unit owner who has consented to receive
1143 electronic notifications at least 14 days before the meeting. In
1144 lieu of or in addition to the physical posting of the notice on
1145 the condominium property and mailing, delivering, or
1146 electronically transmitting the notice, the association may, by
1147 reasonable rule, adopt a procedure for conspicuously posting and
1148 repeatedly broadcasting the notice and the agenda on a closed
1149 circuit cable television system serving the condominium
1150 association. However, if broadcast notice is used in lieu of a
1151 notice physically posted on condominium property, the notice and
1152 agenda must be broadcast at least four times every broadcast
1153 hour of each day that a posted notice is otherwise required
1154 under this section. If broadcast notice is provided, the notice
1155 and agenda must be broadcast in a manner and for a sufficient
1156 continuous length of time so as to allow an average reader to
1157 observe the notice and read and comprehend the entire content of
1158 the notice and the agenda. In addition to any of the authorized
1159 means of providing notice of a meeting of the board, the
1160 association may, by rule, adopt a procedure for conspicuously
1161 posting the meeting notice and the agenda on a website serving
1162 the condominium association for at least the minimum period of
1163 time for which a notice of a meeting is also required to be
1164 physically posted on the condominium property. Any rule adopted
1165 shall, in addition to other matters, include a requirement that
1166 the association send an electronic notice in the same manner as
1167 a notice for a meeting of the members, which must include a
1168 hyperlink to the website at which the notice is posted, to unit
1169 owners whose e-mail addresses are included in the association’s
1170 official records.
1171 3. Notice of any meeting in which regular or special
1172 assessments against unit owners are to be considered must
1173 specifically state that assessments will be considered and
1174 provide the estimated cost and description of the purposes for
1175 such assessments. If an agenda item relates to the approval of a
1176 contract for goods or services, a copy of the contract must be
1177 provided with the notice and be made available for inspection
1178 and copying upon a written request from a unit owner or made
1179 available on the association’s website or through an application
1180 that can be downloaded on a mobile device.
1181 4. Meetings of a committee to take final action on behalf
1182 of the board or make recommendations to the board regarding the
1183 association budget are subject to this paragraph. Meetings of a
1184 committee that does not take final action on behalf of the board
1185 or make recommendations to the board regarding the association
1186 budget are subject to this section, unless those meetings are
1187 exempted from this section by the bylaws of the association.
1188 5. Notwithstanding any other law, the requirement that
1189 board meetings and committee meetings be open to the unit owners
1190 does not apply to:
1191 a. Meetings between the board or a committee and the
1192 association’s attorney, with respect to proposed or pending
1193 litigation, if the meeting is held for the purpose of seeking or
1194 rendering legal advice; or
1195 b. Board meetings held for the purpose of discussing
1196 personnel matters.
1197 (d) Unit owner meetings.—
1198 1. An annual meeting of the unit owners must be held at the
1199 location provided in the association bylaws and, if the bylaws
1200 are silent as to the location, the meeting must be held within
1201 15 miles 45 miles of the condominium property or within the same
1202 county as the condominium property. However, such distance
1203 requirement does not apply to an association governing a
1204 timeshare condominium. If a unit owner meeting is conducted via
1205 video conference, a unit owner may vote electronically in the
1206 manner provided in s. 718.128.
1207 2. Unit owner meetings, including the annual meeting of the
1208 unit owners, may be conducted in person or via video conference.
1209 If the annual meeting of the unit owners is conducted via video
1210 conference, a quorum of the members of the board of
1211 administration must be physically present at the physical
1212 location where unit owners can attend the meeting. The location
1213 must be provided in the association bylaws and, if the bylaws
1214 are silent as to the location, the meeting must be held within
1215 15 miles of the condominium property or within the same county
1216 as the condominium property. If the unit owner meeting is
1217 conducted via video conference, the video conference must be
1218 recorded and such recording must be maintained as an official
1219 record of the association. The division shall adopt rules
1220 pursuant to ss. 120.536 and 120.54 governing the requirements
1221 for meetings.
1222 3.2. Unless the bylaws provide otherwise, a vacancy on the
1223 board caused by the expiration of a director’s term must be
1224 filled by electing a new board member, and the election must be
1225 by secret ballot. An election is not required if the number of
1226 vacancies equals or exceeds the number of candidates. For
1227 purposes of this paragraph, the term “candidate” means an
1228 eligible person who has timely submitted the written notice, as
1229 described in sub-subparagraph 4.a., of his or her intention to
1230 become a candidate. Except in a timeshare or nonresidential
1231 condominium, or if the staggered term of a board member does not
1232 expire until a later annual meeting, or if all members’ terms
1233 would otherwise expire but there are no candidates, the terms of
1234 all board members expire at the annual meeting, and such members
1235 may stand for reelection unless prohibited by the bylaws. Board
1236 members may serve terms longer than 1 year if permitted by the
1237 bylaws or articles of incorporation. A board member may not
1238 serve more than 8 consecutive years unless approved by an
1239 affirmative vote of unit owners representing two-thirds of all
1240 votes cast in the election or unless there are not enough
1241 eligible candidates to fill the vacancies on the board at the
1242 time of the vacancy. Only board service that occurs on or after
1243 July 1, 2018, may be used when calculating a board member’s term
1244 limit. If the number of board members whose terms expire at the
1245 annual meeting equals or exceeds the number of candidates, the
1246 candidates become members of the board effective upon the
1247 adjournment of the annual meeting. Unless the bylaws provide
1248 otherwise, any remaining vacancies shall be filled by the
1249 affirmative vote of the majority of the directors making up the
1250 newly constituted board even if the directors constitute less
1251 than a quorum or there is only one director. In a residential
1252 condominium association of more than 10 units or in a
1253 residential condominium association that does not include
1254 timeshare units or timeshare interests, co-owners of a unit may
1255 not serve as members of the board of directors at the same time
1256 unless they own more than one unit or unless there are not
1257 enough eligible candidates to fill the vacancies on the board at
1258 the time of the vacancy. A unit owner in a residential
1259 condominium desiring to be a candidate for board membership must
1260 comply with sub-subparagraph 4.a. and must be eligible to be a
1261 candidate to serve on the board of directors at the time of the
1262 deadline for submitting a notice of intent to run in order to
1263 have his or her name listed as a proper candidate on the ballot
1264 or to serve on the board. A person who has been suspended or
1265 removed by the division under this chapter, or who is delinquent
1266 in the payment of any assessment due to the association, is not
1267 eligible to be a candidate for board membership and may not be
1268 listed on the ballot. For purposes of this paragraph, a person
1269 is delinquent if a payment is not made by the due date as
1270 specifically identified in the declaration of condominium,
1271 bylaws, or articles of incorporation. If a due date is not
1272 specifically identified in the declaration of condominium,
1273 bylaws, or articles of incorporation, the due date is the first
1274 day of the assessment period. A person who has been convicted of
1275 any felony in this state or in a United States District or
1276 Territorial Court, or who has been convicted of any offense in
1277 another jurisdiction which would be considered a felony if
1278 committed in this state, is not eligible for board membership
1279 unless such felon’s civil rights have been restored for at least
1280 5 years as of the date such person seeks election to the board.
1281 The validity of an action by the board is not affected if it is
1282 later determined that a board member is ineligible for board
1283 membership due to having been convicted of a felony. This
1284 subparagraph does not limit the term of a member of the board of
1285 a nonresidential or timeshare condominium.
1286 4.3. The bylaws must provide the method of calling meetings
1287 of unit owners, including annual meetings. Written notice of an
1288 annual meeting must include an agenda; be mailed, hand
1289 delivered, or electronically transmitted to each unit owner at
1290 least 14 days before the annual meeting; and be posted in a
1291 conspicuous place on the condominium property or association
1292 property at least 14 continuous days before the annual meeting.
1293 Written notice of a meeting other than an annual meeting must
1294 include an agenda; be mailed, hand delivered, or electronically
1295 transmitted to each unit owner; and be posted in a conspicuous
1296 place on the condominium property or association property within
1297 the timeframe specified in the bylaws. If the bylaws do not
1298 specify a timeframe for written notice of a meeting other than
1299 an annual meeting, notice must be provided at least 14
1300 continuous days before the meeting. Upon notice to the unit
1301 owners, the board shall, by duly adopted rule, designate a
1302 specific location on the condominium property or association
1303 property at which all notices of unit owner meetings must be
1304 posted. This requirement does not apply if there is no
1305 condominium property for posting notices. In lieu of, or in In
1306 addition to, the physical posting of meeting notices, the
1307 association may, by reasonable rule, adopt a procedure for
1308 conspicuously posting and repeatedly broadcasting the notice and
1309 the agenda on a closed-circuit cable television system serving
1310 the condominium association. However, if broadcast notice is
1311 used in lieu of a notice posted physically on the condominium
1312 property, the notice and agenda must be broadcast at least four
1313 times every broadcast hour of each day that a posted notice is
1314 otherwise required under this section. If broadcast notice is
1315 provided, the notice and agenda must be broadcast in a manner
1316 and for a sufficient continuous length of time so as to allow an
1317 average reader to observe the notice and read and comprehend the
1318 entire content of the notice and the agenda. In addition to any
1319 of the authorized means of providing notice of a meeting of the
1320 board, the association may, by rule, adopt a procedure for
1321 conspicuously posting the meeting notice and the agenda on a
1322 website serving the condominium association for at least the
1323 minimum period of time for which a notice of a meeting is also
1324 required to be physically posted on the condominium property.
1325 Any rule adopted shall, in addition to other matters, include a
1326 requirement that the association send an electronic notice in
1327 the same manner as a notice for a meeting of the members, which
1328 must include a hyperlink to the website at which the notice is
1329 posted, to unit owners whose e-mail addresses are included in
1330 the association’s official records. Unless a unit owner waives
1331 in writing the right to receive notice of the annual meeting,
1332 such notice must be hand delivered, mailed, or electronically
1333 transmitted to each unit owner. Notice for meetings and notice
1334 for all other purposes must be mailed to each unit owner at the
1335 address last furnished to the association by the unit owner, or
1336 hand delivered to each unit owner. However, if a unit is owned
1337 by more than one person, the association must provide notice to
1338 the address that the developer identifies for that purpose and
1339 thereafter as one or more of the owners of the unit advise the
1340 association in writing, or if no address is given or the owners
1341 of the unit do not agree, to the address provided on the deed of
1342 record. An officer of the association, or the manager or other
1343 person providing notice of the association meeting, must provide
1344 an affidavit or United States Postal Service certificate of
1345 mailing, to be included in the official records of the
1346 association affirming that the notice was mailed or hand
1347 delivered in accordance with this provision.
1348 5.4. The members of the board of a residential condominium
1349 shall be elected by written ballot or voting machine. Proxies
1350 may not be used in electing the board in general elections or
1351 elections to fill vacancies caused by recall, resignation, or
1352 otherwise, unless otherwise provided in this chapter. This
1353 subparagraph does not apply to an association governing a
1354 timeshare condominium.
1355 a. At least 60 days before a scheduled election, the
1356 association shall mail, deliver, or electronically transmit, by
1357 separate association mailing or included in another association
1358 mailing, delivery, or transmission, including regularly
1359 published newsletters, to each unit owner entitled to a vote, a
1360 first notice of the date of the election. A unit owner or other
1361 eligible person desiring to be a candidate for the board must
1362 give written notice of his or her intent to be a candidate to
1363 the association at least 40 days before a scheduled election.
1364 Together with the written notice and agenda as set forth in
1365 subparagraph 3., the association shall mail, deliver, or
1366 electronically transmit a second notice of the election to all
1367 unit owners entitled to vote, together with a ballot that lists
1368 all candidates not less than 14 days or more than 34 days before
1369 the date of the election. Upon request of a candidate, an
1370 information sheet, no larger than 8 1/2 inches by 11 inches,
1371 which must be furnished by the candidate at least 35 days before
1372 the election, must be included with the mailing, delivery, or
1373 transmission of the ballot, with the costs of mailing, delivery,
1374 or electronic transmission and copying to be borne by the
1375 association. The association is not liable for the contents of
1376 the information sheets prepared by the candidates. In order to
1377 reduce costs, the association may print or duplicate the
1378 information sheets on both sides of the paper. The division
1379 shall by rule establish voting procedures consistent with this
1380 sub-subparagraph, including rules establishing procedures for
1381 giving notice by electronic transmission and rules providing for
1382 the secrecy of ballots. Elections shall be decided by a
1383 plurality of ballots cast. There is no quorum requirement;
1384 however, at least 20 percent of the eligible voters must cast a
1385 ballot in order to have a valid election. A unit owner may not
1386 authorize any other person to vote his or her ballot, and any
1387 ballots improperly cast are invalid. A unit owner who violates
1388 this provision may be fined by the association in accordance
1389 with s. 718.303. A unit owner who needs assistance in casting
1390 the ballot for the reasons stated in s. 101.051 may obtain such
1391 assistance. The regular election must occur on the date of the
1392 annual meeting. Notwithstanding this sub-subparagraph, an
1393 election is not required unless more candidates file notices of
1394 intent to run or are nominated than board vacancies exist.
1395 b. A director of a board of an association of a residential
1396 condominium shall:
1397 (I) Certify in writing to the secretary of the association
1398 that he or she has read the association’s declaration of
1399 condominium, articles of incorporation, bylaws, and current
1400 written policies; that he or she will work to uphold such
1401 documents and policies to the best of his or her ability; and
1402 that he or she will faithfully discharge his or her fiduciary
1403 responsibility to the association’s members.
1404 (II) Submit to the secretary of the association a
1405 certificate of having satisfactorily completed the educational
1406 curriculum administered by the division or a division-approved
1407 condominium education provider. The educational curriculum must
1408 be at least 4 hours long and include instruction on milestone
1409 inspections, structural integrity reserve studies, elections,
1410 recordkeeping, financial literacy and transparency, levying of
1411 fines, and notice and meeting requirements.
1412
1413 Each newly elected or appointed director must submit to the
1414 secretary of the association the written certification and
1415 educational certificate within 1 year before being elected or
1416 appointed or 90 days after the date of election or appointment.
1417 A director of an association of a residential condominium who
1418 was elected or appointed before July 1, 2024, must comply with
1419 the written certification and educational certificate
1420 requirements in this sub-subparagraph by June 30, 2025. The
1421 written certification and educational certificate is valid for 7
1422 years after the date of issuance and does not have to be
1423 resubmitted as long as the director serves on the board without
1424 interruption during the 7-year period. A director who is
1425 appointed by the developer may satisfy the educational
1426 certificate requirement in sub-sub-subparagraph (II) for any
1427 subsequent appointment to a board by a developer within 7 years
1428 after the date of issuance of the most recent educational
1429 certificate, including any interruption of service on a board or
1430 appointment to a board in another association within that 7-year
1431 period. One year after submission of the most recent written
1432 certification and educational certificate, and annually
1433 thereafter, a director of an association of a residential
1434 condominium must submit to the secretary of the association a
1435 certificate of having satisfactorily completed at least 1 hour
1436 of continuing education administered by the division, or a
1437 division-approved condominium education provider, relating to
1438 any recent changes to this chapter and the related
1439 administrative rules during the past year. A director of an
1440 association of a residential condominium who fails to timely
1441 file the written certification and educational certificate is
1442 suspended from service on the board until he or she complies
1443 with this sub-subparagraph. The board may temporarily fill the
1444 vacancy during the period of suspension. The secretary shall
1445 cause the association to retain a director’s written
1446 certification and educational certificate for inspection by the
1447 members for 7 years after a director’s election or the duration
1448 of the director’s uninterrupted tenure, whichever is longer.
1449 Failure to have such written certification and educational
1450 certificate on file does not affect the validity of any board
1451 action.
1452 c. Any challenge to the election process must be commenced
1453 within 60 days after the election results are announced.
1454 6.5. Any approval by unit owners called for by this chapter
1455 or the applicable declaration or bylaws, including, but not
1456 limited to, the approval requirement in s. 718.111(8), must be
1457 made at a duly noticed meeting of unit owners and is subject to
1458 all requirements of this chapter or the applicable condominium
1459 documents relating to unit owner decisionmaking, except that
1460 unit owners may take action by written agreement, without
1461 meetings, on matters for which action by written agreement
1462 without meetings is expressly allowed by the applicable bylaws
1463 or declaration or any law that provides for such action.
1464 7.6. Unit owners may waive notice of specific meetings if
1465 allowed by the applicable bylaws or declaration or any law.
1466 Notice of meetings of the board of administration; unit owner
1467 meetings, except unit owner meetings called to recall board
1468 members under paragraph (l); and committee meetings may be given
1469 by electronic transmission to unit owners who consent to receive
1470 notice by electronic transmission. A unit owner who consents to
1471 receiving notices by electronic transmission is solely
1472 responsible for removing or bypassing filters that block receipt
1473 of mass e-mails sent to members on behalf of the association in
1474 the course of giving electronic notices.
1475 8.7. Unit owners have the right to participate in meetings
1476 of unit owners with reference to all designated agenda items.
1477 However, the association may adopt reasonable rules governing
1478 the frequency, duration, and manner of unit owner participation.
1479 9.8. A unit owner may tape record or videotape a meeting of
1480 the unit owners subject to reasonable rules adopted by the
1481 division.
1482 10.9. Unless otherwise provided in the bylaws, any vacancy
1483 occurring on the board before the expiration of a term may be
1484 filled by the affirmative vote of the majority of the remaining
1485 directors, even if the remaining directors constitute less than
1486 a quorum, or by the sole remaining director. In the alternative,
1487 a board may hold an election to fill the vacancy, in which case
1488 the election procedures must conform to sub-subparagraph 4.a.
1489 unless the association governs 10 units or fewer and has opted
1490 out of the statutory election process, in which case the bylaws
1491 of the association control. Unless otherwise provided in the
1492 bylaws, a board member appointed or elected under this section
1493 shall fill the vacancy for the unexpired term of the seat being
1494 filled. Filling vacancies created by recall is governed by
1495 paragraph (l) and rules adopted by the division.
1496 11.10. This chapter does not limit the use of general or
1497 limited proxies, require the use of general or limited proxies,
1498 or require the use of a written ballot or voting machine for any
1499 agenda item or election at any meeting of a timeshare
1500 condominium association or nonresidential condominium
1501 association.
1502
1503 Notwithstanding subparagraph (b)2. and sub-subparagraph 4.a., an
1504 association of 10 or fewer units may, by affirmative vote of a
1505 majority of the total voting interests, provide for different
1506 voting and election procedures in its bylaws, which may be by a
1507 proxy specifically delineating the different voting and election
1508 procedures. The different voting and election procedures may
1509 provide for elections to be conducted by limited or general
1510 proxy.
1511 (e) Budget meeting.—
1512 1. Any meeting at which a proposed annual budget of an
1513 association will be considered by the board or unit owners shall
1514 be open to all unit owners. A meeting of the board or unit
1515 owners at which a proposed annual association budget will be
1516 considered may be conducted by video conference. The division
1517 shall adopt rules pursuant to ss. 120.536 and 120.54 governing
1518 the requirements for such meetings. A sound transmitting device
1519 must be used so that the conversation of such members may be
1520 heard by the board or committee members attending in person, as
1521 well as any unit owners present at the meeting. At least 14 days
1522 before prior to such a meeting, the board shall hand deliver to
1523 each unit owner, mail to each unit owner at the address last
1524 furnished to the association by the unit owner, or
1525 electronically transmit to the location furnished by the unit
1526 owner for that purpose a notice of such meeting and a copy of
1527 the proposed annual budget. An officer or manager of the
1528 association, or other person providing notice of such meeting,
1529 shall execute an affidavit evidencing compliance with such
1530 notice requirement, and such affidavit shall be filed among the
1531 official records of the association.
1532 2.a. If a board proposes adopts in any fiscal year an
1533 annual budget which requires assessments against unit owners
1534 which exceed 115 percent of assessments for the preceding fiscal
1535 year, the board shall simultaneously propose a substitute budget
1536 that does not include any discretionary expenditures that are
1537 not required to be in the budget. The substitute budget must be
1538 proposed at the budget meeting before the adoption of the annual
1539 budget conduct a special meeting of the unit owners to consider
1540 a substitute budget if the board receives, within 21 days after
1541 adoption of the annual budget, a written request for a special
1542 meeting from at least 10 percent of all voting interests. The
1543 special meeting shall be conducted within 60 days after adoption
1544 of the annual budget. At least 14 days before such budget
1545 meeting in which a substitute budget will be proposed prior to
1546 such special meeting, the board shall hand deliver to each unit
1547 owner, or mail to each unit owner at the address last furnished
1548 to the association, a notice of the meeting. An officer or
1549 manager of the association, or other person providing notice of
1550 such meeting shall execute an affidavit evidencing compliance
1551 with this notice requirement, and such affidavit shall be filed
1552 among the official records of the association. Unit owners must
1553 may consider and may adopt a substitute budget at the special
1554 meeting. A substitute budget is adopted if approved by a
1555 majority of all voting interests unless the bylaws require
1556 adoption by a greater percentage of voting interests. If there
1557 is not a quorum at the special meeting or a substitute budget is
1558 not adopted, the annual budget previously initially proposed
1559 adopted by the board may be adopted shall take effect as
1560 scheduled.
1561 b. Any determination of whether assessments exceed 115
1562 percent of assessments for the prior fiscal year shall exclude
1563 any authorized provision for required reasonable reserves for
1564 repair or replacement of the condominium property, anticipated
1565 expenses of the association which the board does not expect to
1566 be incurred on a regular or annual basis for the repair,
1567 maintenance, or replacement of the items listed in paragraph
1568 (g), and insurance premiums, or assessments for betterments to
1569 the condominium property.
1570 c. If the developer controls the board, assessments may
1571 shall not exceed 115 percent of assessments for the prior fiscal
1572 year unless approved by a majority of all voting interests.
1573 (f) Annual budget.—
1574 1. The proposed annual budget of estimated revenues and
1575 expenses must be detailed and must show the amounts budgeted by
1576 accounts and expense classifications, including, at a minimum,
1577 any applicable expenses listed in s. 718.504(21). The board
1578 shall adopt the annual budget at least 14 days before the start
1579 of the association’s fiscal year. In the event that the board
1580 fails to timely adopt the annual budget a second time, it is
1581 deemed a minor violation and the prior year’s budget shall
1582 continue in effect until a new budget is adopted. A
1583 multicondominium association must adopt a separate budget of
1584 common expenses for each condominium the association operates
1585 and must adopt a separate budget of common expenses for the
1586 association. In addition, if the association maintains limited
1587 common elements with the cost to be shared only by those
1588 entitled to use the limited common elements as provided for in
1589 s. 718.113(1), the budget or a schedule attached to it must show
1590 the amount budgeted for this maintenance. If, after turnover of
1591 control of the association to the unit owners, any of the
1592 expenses listed in s. 718.504(21) are not applicable, they do
1593 not need to be listed.
1594 2.a. In addition to annual operating expenses, the budget
1595 must include reserve accounts for capital expenditures and
1596 deferred maintenance. These accounts must include, but are not
1597 limited to, roof replacement, building painting, and pavement
1598 resurfacing, regardless of the amount of deferred maintenance
1599 expense or replacement cost, and any other item that has a
1600 deferred maintenance expense or replacement cost that exceeds
1601 $25,000 or the inflation-adjusted amount determined by the
1602 division under subparagraph 5., whichever is greater $10,000.
1603 The amount to be reserved must be computed using a formula based
1604 upon estimated remaining useful life and estimated replacement
1605 cost or deferred maintenance expense of the reserve item. In a
1606 budget adopted by an association that is required to obtain a
1607 structural integrity reserve study, reserves must be maintained
1608 for the items identified in paragraph (g) for which the
1609 association is responsible pursuant to the declaration of
1610 condominium, and the reserve amount for such items must be based
1611 on the findings and recommendations of the association’s most
1612 recent structural integrity reserve study. If an association
1613 votes to terminate the condominium in accordance with s.
1614 718.117, the members may vote to waive the maintenance of
1615 reserves recommended by the association’s most recent structural
1616 integrity reserve study. With respect to items for which an
1617 estimate of useful life is not readily ascertainable or with an
1618 estimated remaining useful life of greater than 25 years, an
1619 association is not required to reserve replacement costs for
1620 such items, but an association must reserve the amount of
1621 deferred maintenance expense, if any, which is recommended by
1622 the structural integrity reserve study for such items. The
1623 association may adjust replacement reserve assessments annually
1624 to take into account an inflation adjustment and any changes in
1625 estimates or extension of the useful life of a reserve item
1626 caused by deferred maintenance.
1627 b. The members of a unit-owner-controlled association may
1628 determine, by a majority vote of the total voting interests of
1629 the association, to provide no reserves or less reserves than
1630 required by this subsection. For a budget adopted on or after
1631 December 31, 2024, the members of a unit-owner-controlled
1632 association that must obtain a structural integrity reserve
1633 study may not determine to provide no reserves or less reserves
1634 than required by this subsection for items listed in paragraph
1635 (g), except that members of an association operating a
1636 multicondominium may determine to provide no reserves or less
1637 reserves than required by this subsection if an alternative
1638 funding method is used by the association has been approved by
1639 the division.
1640 c.(I) Reserves for the items listed in paragraph (g) may be
1641 funded by regular assessments, special assessments, lines of
1642 credit, or loans.
1643 (II) A unit-owner-controlled association that must have a
1644 structural integrity reserve study may secure a line of credit
1645 or a loan to fund capital expenses required by a milestone
1646 inspection under s. 553.899 or a structural integrity reserve
1647 study. A line of credit or a loan under this subparagraph
1648 requires the approval of a majority vote of the total voting
1649 interests of the association. The line of credit or loan must be
1650 sufficient to fund the cumulative amount of any previously
1651 waived or unfunded portions of the reserve funding amount
1652 required by this paragraph and the most recent structural
1653 integrity reserve study. Funding from the line of credit or loan
1654 must be immediately available for access by the board to fund
1655 required repair, maintenance, or replacement expenses without
1656 further approval by the members of the association. A line of
1657 credit or a loan secured under this sub-subparagraph must be
1658 included in the financial report required under s. 718.111(13).
1659 (III) This sub-subparagraph does not apply to associations
1660 controlled by a developer as defined in s. 718.103, an
1661 association in which the nondeveloper unit owners have been in
1662 control for less than 1 year, or an association controlled by
1663 one or more bulk assignees or bulk buyers as those terms are
1664 defined in s. 718.703.
1665 d. If the local building official, as defined in s.
1666 468.603, determines that the entire condominium building is
1667 uninhabitable due to a natural emergency, as defined in s.
1668 252.34, the board, upon the approval of a majority of its
1669 members, may pause the contribution to its reserves or reduce
1670 reserve funding until the local building official determines
1671 that the condominium building is habitable. Any reserve account
1672 funds held by the association may be expended, pursuant to the
1673 board’s determination, to make the condominium building and its
1674 structures habitable. Upon the determination by the local
1675 building official that the condominium building is habitable,
1676 the association must immediately resume contributing funds to
1677 its reserves.
1678 e. For a budget adopted on or before December 31, 2028, if
1679 the association has completed a milestone inspection pursuant to
1680 s. 553.899 within the previous 2 calendar years, the board, upon
1681 the approval of a majority of the total voting interests of the
1682 association, may temporarily pause, for a period of no more than
1683 2 consecutive annual budgets, reserve fund contributions or
1684 reduce the amount of reserve funding for the purpose of funding
1685 repairs recommended by the milestone inspection. This sub
1686 subparagraph does not apply to an association controlled by a
1687 developer as defined in s. 718.103, an association in which the
1688 nondeveloper unit owners have been in control for less than 1
1689 year, or an association controlled by one or more bulk assignees
1690 or bulk buyers as those terms are defined in s. 718.703. An
1691 association that has paused reserve contributions under this
1692 subparagraph must have a structural integrity reserve study
1693 performed before the continuation of reserve contributions in
1694 order to determine the association’s reserve funding needs and
1695 to recommend a reserve funding plan.
1696 f.b. Before turnover of control of an association by a
1697 developer to unit owners other than a developer under s.
1698 718.301, the developer-controlled association may not vote to
1699 waive the reserves or reduce funding of the reserves. If a
1700 meeting of the unit owners has been called to determine whether
1701 to waive or reduce the funding of reserves and no such result is
1702 achieved or a quorum is not attained, the reserves included in
1703 the budget shall go into effect. After the turnover, the
1704 developer may vote its voting interest to waive or reduce the
1705 funding of reserves.
1706 3. Reserve funds and any interest accruing thereon shall
1707 remain in the reserve account or accounts, and may be used only
1708 for authorized reserve expenditures unless their use for other
1709 purposes is approved in advance by a majority vote of all the
1710 total voting interests of the association. Before turnover of
1711 control of an association by a developer to unit owners other
1712 than the developer pursuant to s. 718.301, the developer
1713 controlled association may not vote to use reserves for purposes
1714 other than those for which they were intended. For a budget
1715 adopted on or after December 31, 2024, members of a unit-owner
1716 controlled association that must obtain a structural integrity
1717 reserve study may not vote to use reserve funds, or any interest
1718 accruing thereon, for any other purpose other than the
1719 replacement or deferred maintenance costs of the components
1720 listed in paragraph (g). A vote of the members is not required
1721 for the board to change the accounting method for reserves to a
1722 pooling accounting method or a straight-line accounting method.
1723 4. The only voting interests that are eligible to vote on
1724 questions that involve waiving or reducing the funding of
1725 reserves, or using existing reserve funds for purposes other
1726 than purposes for which the reserves were intended, are the
1727 voting interests of the units subject to assessment to fund the
1728 reserves in question. Proxy questions relating to waiving or
1729 reducing the funding of reserves or using existing reserve funds
1730 for purposes other than purposes for which the reserves were
1731 intended must contain the following statement in capitalized,
1732 bold letters in a font size larger than any other used on the
1733 face of the proxy ballot:
1734
1735 WAIVING OF RESERVES, IN WHOLE OR IN PART, OR ALLOWING
1736 ALTERNATIVE USES OF EXISTING RESERVES MAY RESULT IN
1737 UNIT OWNER LIABILITY FOR PAYMENT OF UNANTICIPATED
1738 SPECIAL ASSESSMENTS REGARDING THOSE ITEMS.
1739
1740 5. The division shall annually adjust for inflation, based
1741 on the Consumer Price Index for All Urban Consumers released in
1742 January of each year, the minimum $25,000 threshold amount for
1743 required reserves. By February 1, 2026, and annually thereafter,
1744 the division must conspicuously post on its website the
1745 inflation-adjusted minimum threshold amount for required
1746 reserves.
1747 (g) Structural integrity reserve study.—
1748 1. A residential condominium association must have a
1749 structural integrity reserve study completed at least every 10
1750 years after the condominium’s creation for each building on the
1751 condominium property that is three stories or higher in height,
1752 as determined by the Florida Building Code, which includes, at a
1753 minimum, a study of the following items as related to the
1754 structural integrity and safety of the building:
1755 a. Roof.
1756 b. Structure, including load-bearing walls and other
1757 primary structural members and primary structural systems as
1758 those terms are defined in s. 627.706.
1759 c. Fireproofing and fire protection systems.
1760 d. Plumbing.
1761 e. Electrical systems.
1762 f. Waterproofing and exterior painting.
1763 g. Windows and exterior doors.
1764 h. Any other item that has a deferred maintenance expense
1765 or replacement cost that exceeds $25,000 or the inflation
1766 adjusted amount determined by the division under subparagraph
1767 (f)5., whichever is greater, $10,000 and the failure to replace
1768 or maintain such item negatively affects the items listed in
1769 sub-subparagraphs a.-g., as determined by the visual inspection
1770 portion of the structural integrity reserve study.
1771 2. A structural integrity reserve study is based on a
1772 visual inspection of the condominium property.
1773 3.a. A structural integrity reserve study may be performed
1774 by any person qualified to perform such study. However,
1775 including the visual inspection portion of the structural
1776 integrity reserve study, must be performed or verified by an
1777 engineer licensed under chapter 471, an architect licensed under
1778 chapter 481, or a person certified as a reserve specialist or
1779 professional reserve analyst by the Community Associations
1780 Institute or the Association of Professional Reserve Analysts.
1781 b. Any design professional as defined in s. 558.002 or any
1782 contractor licensed under chapter 489 who bids to perform a
1783 structural integrity reserve study must disclose in writing to
1784 the association his or her intent to bid on any services related
1785 to any maintenance, repair, or replacement that may be
1786 recommended by the structural integrity reserve study. Any
1787 design professional as defined in s. 558.002 or contractor
1788 licensed under chapter 489 who submits a bid to the association
1789 for performing any services recommended by the structural
1790 integrity reserve study may not have an interest, directly or
1791 indirectly, in the firm or entity providing the association’s
1792 structural integrity reserve study or be a relative of any
1793 person having a direct or indirect interest in such firm, unless
1794 such relationship is disclosed to the association in writing. As
1795 used in this section, the term “relative” means a relative
1796 within the third degree of consanguinity by blood or marriage. A
1797 contract for services is voidable and terminates upon the
1798 association filing a written notice terminating the contract if
1799 the design professional or licensed contractor failed to provide
1800 the written disclosure of the interests or relationships
1801 required under this paragraph. A design professional or licensed
1802 contractor may be subject to discipline under the applicable
1803 practice act for his or her profession for failure to provide
1804 the written disclosure of the interests or relationships
1805 required under this paragraph.
1806 4.a.3. At a minimum, a structural integrity reserve study
1807 must identify each item of the condominium property being
1808 visually inspected, state the estimated remaining useful life
1809 and the estimated replacement cost or deferred maintenance
1810 expense of each item of the condominium property being visually
1811 inspected, and provide a reserve funding plan or schedule with a
1812 recommended annual reserve amount that achieves the estimated
1813 replacement cost or deferred maintenance expense of each item of
1814 condominium property being visually inspected by the end of the
1815 estimated remaining useful life of the item. At a minimum, the
1816 structural integrity reserve study must include a recommendation
1817 for a reserve funding schedule based on a baseline funding plan
1818 that provides a reserve funding goal in which the reserve
1819 funding for each budget year is sufficient to maintain the
1820 reserve cash balance above zero. The study may recommend other
1821 types of reserve funding schedules, provided that each
1822 recommended schedule is sufficient to meet the association’s
1823 maintenance obligation.
1824 b. The structural integrity reserve study may recommend
1825 that reserves do not need to be maintained for any item for
1826 which an estimate of useful life and an estimate of replacement
1827 cost cannot be determined, or the study may recommend a deferred
1828 maintenance expense amount for such item. The structural
1829 integrity reserve study may recommend that reserves for
1830 replacement costs do not need to be maintained for any item with
1831 an estimated remaining useful life of greater than 25 years, but
1832 the study may recommend a deferred maintenance expense amount
1833 for such item. If the structural integrity reserve study
1834 recommends reserves for any item for which reserves are not
1835 required under this paragraph, the amount of the recommended
1836 reserves for such item must be separately identified in the
1837 structural integrity reserve study as an item for which reserves
1838 are not required under this paragraph.
1839 c. The structural integrity reserve study must take into
1840 consideration the funding method or methods used by the
1841 association to fund its maintenance and reserve funding
1842 obligations through regular assessments, special assessments,
1843 lines of credit, or loans. If the structural integrity reserve
1844 study is performed before the association has approved a special
1845 assessment or secured a line of credit or a loan, the structural
1846 integrity reserve study must be updated to reflect the funding
1847 method selected by the association and its effect on the reserve
1848 funding schedule, including any anticipated change in the amount
1849 of regular assessments. The structural integrity reserve study
1850 may be updated to reflect any changes to the useful life of the
1851 reserve items after such items are repaired or replaced, and the
1852 effect such repair or replacement will have on the reserve
1853 funding schedule. The association must obtain an updated
1854 structural integrity reserve study before adopting any budget in
1855 which the reserve funding from regular assessments, special
1856 assessments, lines of credit, or loans do not align with the
1857 funding plan from the most recent version of the structural
1858 integrity reserve study.
1859 5.4. This paragraph does not apply to buildings less than
1860 three stories in height; single-family, two-family, or three
1861 family dwellings with three or fewer habitable stories above
1862 ground; any portion or component of a building that has not been
1863 submitted to the condominium form of ownership; or any portion
1864 or component of a building that is maintained by a party other
1865 than the association.
1866 6.5. Before a developer turns over control of an
1867 association to unit owners other than the developer, the
1868 developer must have a turnover inspection report in compliance
1869 with s. 718.301(4)(p) and (q) for each building on the
1870 condominium property that is three stories or higher in height.
1871 7.6. Associations existing on or before July 1, 2022, which
1872 are controlled by unit owners other than the developer, must
1873 have a structural integrity reserve study completed by December
1874 31, 2025 2024, for each building on the condominium property
1875 that is three stories or higher in height. An association that
1876 is required to complete a milestone inspection in accordance
1877 with s. 553.899 on or before December 31, 2026, may complete the
1878 structural integrity reserve study simultaneously with the
1879 milestone inspection. In no event may the structural integrity
1880 reserve study be completed after December 31, 2026.
1881 8.7. If the milestone inspection required by s. 553.899, or
1882 an inspection completed for a similar local requirement, was
1883 performed within the past 5 years and meets the requirements of
1884 this paragraph, such inspection may be used in place of the
1885 visual inspection portion of the structural integrity reserve
1886 study.
1887 9. If the association completes a milestone inspection
1888 required by s. 553.899, or an inspection completed for a similar
1889 local requirement, the association may delay performance of a
1890 required structural integrity reserve study for no more than the
1891 2 consecutive budget years immediately following the milestone
1892 inspection in order to allow the association to focus its
1893 financial resources on completing the repair and maintenance
1894 recommendations of the milestone inspection.
1895 10.8. If the officers or directors of an association
1896 willfully and knowingly fail to complete a structural integrity
1897 reserve study pursuant to this paragraph, such failure is a
1898 breach of an officer’s or a and director’s fiduciary
1899 relationship to the unit owners under s. 718.111(1). An officer
1900 or a director of an association must sign an affidavit
1901 acknowledging receipt of the completed structural integrity
1902 reserve study.
1903 11.9. Within 45 days after receiving the structural
1904 integrity reserve study, the association must distribute a copy
1905 of the study to each unit owner or deliver to each unit owner a
1906 notice that the completed study is available for inspection and
1907 copying upon a written request. Distribution of a copy of the
1908 study or notice must be made by United States mail or personal
1909 delivery to the mailing address, property address, or any other
1910 address of the owner provided to fulfill the association’s
1911 notice requirements under this chapter, or by electronic
1912 transmission to the e-mail address or facsimile number provided
1913 to fulfill the association’s notice requirements to unit owners
1914 who previously consented to receive notice by electronic
1915 transmission.
1916 12.10. Within 45 days after receiving the structural
1917 integrity reserve study, the association must provide the
1918 division with a statement indicating that the study was
1919 completed and that the association provided or made available
1920 such study to each unit owner in accordance with this section.
1921 The statement must be provided to the division in the manner
1922 established by the division using a form posted on the
1923 division’s website.
1924 13. The division shall adopt by rule the form for the
1925 structural integrity reserve study in coordination with the
1926 Florida Building Commission.
1927 Section 8. Subsections (1) and (3) of section 718.501,
1928 Florida Statutes, are amended, and paragraph (d) is added to
1929 subsection (2) of that section, to read:
1930 718.501 Authority, responsibility, and duties of Division
1931 of Florida Condominiums, Timeshares, and Mobile Homes.—
1932 (1) The division may enforce and ensure compliance with
1933 this chapter and rules relating to the development,
1934 construction, sale, lease, ownership, operation, and management
1935 of residential condominium units and complaints related to the
1936 procedural completion of milestone inspections under s. 553.899.
1937 In performing its duties, the division has complete jurisdiction
1938 to investigate complaints and enforce compliance with respect to
1939 associations that are still under developer control or the
1940 control of a bulk assignee or bulk buyer pursuant to part VII of
1941 this chapter and complaints against developers, bulk assignees,
1942 or bulk buyers involving improper turnover or failure to
1943 turnover, pursuant to s. 718.301. However, after turnover has
1944 occurred, the division has jurisdiction to review records and
1945 investigate complaints related only to:
1946 (a)1. Procedural aspects and records relating to financial
1947 issues, including annual financial reporting under s.
1948 718.111(13); assessments for common expenses, fines, and
1949 commingling of reserve and operating funds under s. 718.111(14);
1950 use of debit cards for unintended purposes under s. 718.111(15);
1951 the annual operating budget and the allocation of reserve funds
1952 under s. 718.112(2)(f); financial records under s.
1953 718.111(12)(a)11.; and any other record necessary to determine
1954 the revenues and expenses of the association.
1955 2. Elections, including election and voting requirements
1956 under s. 718.112(2)(b) and (d), recall of board members under s.
1957 718.112(2)(l), electronic voting under s. 718.128, and elections
1958 that occur during an emergency under s. 718.1265(1)(a).
1959 3. The maintenance of and unit owner access to association
1960 records under s. 718.111(12).
1961 4. The procedural aspects of meetings, including unit owner
1962 meetings, quorums, voting requirements, proxies, board of
1963 administration meetings, and budget meetings under s.
1964 718.112(2).
1965 5. The disclosure of conflicts of interest under ss.
1966 718.111(1)(a) and 718.3027, including limitations contained in
1967 s. 718.111(3)(f).
1968 6. The removal of a board director or officer under ss.
1969 718.111(1)(a) and (15) and 718.112(2)(p) and (q).
1970 7. The procedural completion of structural integrity
1971 reserve studies under s. 718.112(2)(g) and the milestone
1972 inspections under s. 553.899.
1973 8. Completion of repairs required by a milestone inspection
1974 under s. 553.899.
1975 9.8. Any written inquiries by unit owners to the
1976 association relating to such matters, including written
1977 inquiries under s. 718.112(2)(a)2.
1978 10. The requirement for associations to maintain an
1979 insurance policy or fidelity bonding for all persons who control
1980 or disperse funds of the association under s. 718.111(11)(h).
1981 11. Board member education requirements under s.
1982 718.112(2)(d)5.b.
1983 12. Reporting requirements for structural integrity reserve
1984 studies under subsection (3) and under s. 718.112(2)(g)12.
1985 (b)1. The division may make necessary public or private
1986 investigations within or outside this state to determine whether
1987 any person has violated this chapter or any rule or order
1988 hereunder, to aid in the enforcement of this chapter, or to aid
1989 in the adoption of rules or forms.
1990 2. The division may submit any official written report,
1991 worksheet, or other related paper, or a duly certified copy
1992 thereof, compiled, prepared, drafted, or otherwise made by and
1993 duly authenticated by a financial examiner or analyst to be
1994 admitted as competent evidence in any hearing in which the
1995 financial examiner or analyst is available for cross-examination
1996 and attests under oath that such documents were prepared as a
1997 result of an examination or inspection conducted pursuant to
1998 this chapter.
1999 (c) The division may require or permit any person to file a
2000 statement in writing, under oath or otherwise, as the division
2001 determines, as to the facts and circumstances concerning a
2002 matter to be investigated.
2003 (d) For the purpose of any investigation under this
2004 chapter, the division director or any officer or employee
2005 designated by the division director may administer oaths or
2006 affirmations, subpoena witnesses and compel their attendance,
2007 take evidence, and require the production of any matter which is
2008 relevant to the investigation, including the existence,
2009 description, nature, custody, condition, and location of any
2010 books, documents, or other tangible things and the identity and
2011 location of persons having knowledge of relevant facts or any
2012 other matter reasonably calculated to lead to the discovery of
2013 material evidence. Upon the failure by a person to obey a
2014 subpoena or to answer questions propounded by the investigating
2015 officer and upon reasonable notice to all affected persons, the
2016 division may apply to the circuit court for an order compelling
2017 compliance.
2018 (e) Notwithstanding any remedies available to unit owners
2019 and associations, if the division has reasonable cause to
2020 believe that a violation of any provision of this chapter or
2021 related rule has occurred, the division may institute
2022 enforcement proceedings in its own name against any developer,
2023 bulk assignee, bulk buyer, association, officer, or member of
2024 the board of administration, or its assignees or agents, as
2025 follows:
2026 1. The division may permit a person whose conduct or
2027 actions may be under investigation to waive formal proceedings
2028 and enter into a consent proceeding whereby orders, rules, or
2029 letters of censure or warning, whether formal or informal, may
2030 be entered against the person.
2031 2. The division may issue an order requiring the developer,
2032 bulk assignee, bulk buyer, association, developer-designated
2033 officer, or developer-designated member of the board of
2034 administration, developer-designated assignees or agents, bulk
2035 assignee-designated assignees or agents, bulk buyer-designated
2036 assignees or agents, community association manager, or community
2037 association management firm to cease and desist from the
2038 unlawful practice and take such affirmative action as in the
2039 judgment of the division carry out the purposes of this chapter.
2040 If the division finds that a developer, bulk assignee, bulk
2041 buyer, association, officer, or member of the board of
2042 administration, or its assignees or agents, is violating or is
2043 about to violate any provision of this chapter, any rule adopted
2044 or order issued by the division, or any written agreement
2045 entered into with the division, and presents an immediate danger
2046 to the public requiring an immediate final order, it may issue
2047 an emergency cease and desist order reciting with particularity
2048 the facts underlying such findings. The emergency cease and
2049 desist order is effective for 90 days. If the division begins
2050 nonemergency cease and desist proceedings, the emergency cease
2051 and desist order remains effective until the conclusion of the
2052 proceedings under ss. 120.569 and 120.57.
2053 3. If a developer, bulk assignee, or bulk buyer fails to
2054 pay any restitution determined by the division to be owed, plus
2055 any accrued interest at the highest rate permitted by law,
2056 within 30 days after expiration of any appellate time period of
2057 a final order requiring payment of restitution or the conclusion
2058 of any appeal thereof, whichever is later, the division must
2059 bring an action in circuit or county court on behalf of any
2060 association, class of unit owners, lessees, or purchasers for
2061 restitution, declaratory relief, injunctive relief, or any other
2062 available remedy. The division may also temporarily revoke its
2063 acceptance of the filing for the developer to which the
2064 restitution relates until payment of restitution is made.
2065 4. The division may petition the court for appointment of a
2066 receiver or conservator. If appointed, the receiver or
2067 conservator may take action to implement the court order to
2068 ensure the performance of the order and to remedy any breach
2069 thereof. In addition to all other means provided by law for the
2070 enforcement of an injunction or temporary restraining order, the
2071 circuit court may impound or sequester the property of a party
2072 defendant, including books, papers, documents, and related
2073 records, and allow the examination and use of the property by
2074 the division and a court-appointed receiver or conservator.
2075 5. The division may apply to the circuit court for an order
2076 of restitution whereby the defendant in an action brought under
2077 subparagraph 4. is ordered to make restitution of those sums
2078 shown by the division to have been obtained by the defendant in
2079 violation of this chapter. At the option of the court, such
2080 restitution is payable to the conservator or receiver appointed
2081 under subparagraph 4. or directly to the persons whose funds or
2082 assets were obtained in violation of this chapter.
2083 6. The division may impose a civil penalty against a
2084 developer, bulk assignee, or bulk buyer, or association, or its
2085 assignee or agent, for any violation of this chapter or related
2086 rule. The division may impose a civil penalty individually
2087 against an officer or board member who willfully and knowingly
2088 violates this chapter, an adopted rule, or a final order of the
2089 division; may order the removal of such individual as an officer
2090 or from the board of administration or as an officer of the
2091 association; and may prohibit such individual from serving as an
2092 officer or on the board of a community association for a period
2093 of time. The term “willfully and knowingly” means that the
2094 division informed the officer or board member that his or her
2095 action or intended action violates this chapter, a rule adopted
2096 under this chapter, or a final order of the division and that
2097 the officer or board member refused to comply with the
2098 requirements of this chapter, a rule adopted under this chapter,
2099 or a final order of the division. The division, before
2100 initiating formal agency action under chapter 120, must afford
2101 the officer or board member an opportunity to voluntarily
2102 comply, and an officer or board member who complies within 10
2103 days is not subject to a civil penalty. A penalty may be imposed
2104 on the basis of each day of continuing violation, but the
2105 penalty for any offense may not exceed $5,000. The division
2106 shall adopt, by rule, penalty guidelines applicable to possible
2107 violations or to categories of violations of this chapter or
2108 rules adopted by the division. The guidelines must specify a
2109 meaningful range of civil penalties for each such violation of
2110 the statute and rules and must be based upon the harm caused by
2111 the violation, upon the repetition of the violation, and upon
2112 such other factors deemed relevant by the division. For example,
2113 the division may consider whether the violations were committed
2114 by a developer, bulk assignee, or bulk buyer, or owner
2115 controlled association, the size of the association, and other
2116 factors. The guidelines must designate the possible mitigating
2117 or aggravating circumstances that justify a departure from the
2118 range of penalties provided by the rules. It is the legislative
2119 intent that minor violations be distinguished from those which
2120 endanger the health, safety, or welfare of the condominium
2121 residents or other persons and that such guidelines provide
2122 reasonable and meaningful notice to the public of likely
2123 penalties that may be imposed for proscribed conduct. This
2124 subsection does not limit the ability of the division to
2125 informally dispose of administrative actions or complaints by
2126 stipulation, agreed settlement, or consent order. All amounts
2127 collected shall be deposited with the Chief Financial Officer to
2128 the credit of the Division of Florida Condominiums, Timeshares,
2129 and Mobile Homes Trust Fund. If a developer, bulk assignee, or
2130 bulk buyer fails to pay the civil penalty and the amount deemed
2131 to be owed to the association, the division shall issue an order
2132 directing that such developer, bulk assignee, or bulk buyer
2133 cease and desist from further operation until such time as the
2134 civil penalty is paid or may pursue enforcement of the penalty
2135 in a court of competent jurisdiction. If an association fails to
2136 pay the civil penalty, the division shall pursue enforcement in
2137 a court of competent jurisdiction, and the order imposing the
2138 civil penalty or the cease and desist order is not effective
2139 until 20 days after the date of such order. Any action commenced
2140 by the division shall be brought in the county in which the
2141 division has its executive offices or in the county in which the
2142 violation occurred.
2143 7. If a unit owner presents the division with proof that
2144 the unit owner has requested access to official records in
2145 writing by certified mail, and that after 10 days the unit owner
2146 again made the same request for access to official records in
2147 writing by certified mail, and that more than 10 days has
2148 elapsed since the second request and the association has still
2149 failed or refused to provide access to official records as
2150 required by this chapter, the division shall issue a subpoena
2151 requiring production of the requested records at the location in
2152 which the records are kept pursuant to s. 718.112. Upon receipt
2153 of the records, the division must provide to the unit owner who
2154 was denied access to such records the produced official records
2155 without charge.
2156 8. In addition to subparagraph 6., the division may seek
2157 the imposition of a civil penalty through the circuit court for
2158 any violation for which the division may issue a notice to show
2159 cause under paragraph (t). The civil penalty shall be at least
2160 $500 but no more than $5,000 for each violation. The court may
2161 also award to the prevailing party court costs and reasonable
2162 attorney fees and, if the division prevails, may also award
2163 reasonable costs of investigation.
2164 9. The division may issue citations and promulgate rules to
2165 provide for citation bases and citation procedures in accordance
2166 with this paragraph.
2167 (f) The division may prepare and disseminate a prospectus
2168 and other information to assist prospective owners, purchasers,
2169 lessees, and developers of residential condominiums in assessing
2170 the rights, privileges, and duties pertaining thereto.
2171 (g) The division may adopt rules to administer and enforce
2172 this chapter.
2173 (h) The division shall establish procedures for providing
2174 notice to an association and the developer, bulk assignee, or
2175 bulk buyer during the period in which the developer, bulk
2176 assignee, or bulk buyer controls the association if the division
2177 is considering the issuance of a declaratory statement with
2178 respect to the declaration of condominium or any related
2179 document governing such condominium community.
2180 (i) The division shall furnish each association that pays
2181 the fees required by paragraph (2)(a) a copy of this chapter, as
2182 amended, and the rules adopted thereto on an annual basis.
2183 (j) The division shall annually provide each association
2184 with a summary of declaratory statements and formal legal
2185 opinions relating to the operations of condominiums which were
2186 rendered by the division during the previous year.
2187 (k) The division shall provide training and educational
2188 programs for condominium association board members and unit
2189 owners. The training may, in the division’s discretion, include
2190 web-based electronic media and live training and seminars in
2191 various locations throughout the state. The division may review
2192 and approve education and training programs for board members
2193 and unit owners offered by providers and shall maintain a
2194 current list of approved programs and providers and make such
2195 list available to board members and unit owners in a reasonable
2196 and cost-effective manner. The division shall provide the
2197 division-approved provider with the template certificate for
2198 issuance directly to the association’s board of directors who
2199 have satisfactorily completed the requirements under s.
2200 718.112(2)(d). The division shall adopt rules to implement this
2201 section.
2202 (l) The division shall maintain a toll-free telephone
2203 number accessible to condominium unit owners.
2204 (m) The division shall develop a program to certify both
2205 volunteer and paid mediators to provide mediation of condominium
2206 disputes. The division shall provide, upon request, a list of
2207 such mediators to any association, unit owner, or other
2208 participant in alternative dispute resolution proceedings under
2209 s. 718.1255 requesting a copy of the list. The division shall
2210 include on the list of volunteer mediators only the names of
2211 persons who have received at least 20 hours of training in
2212 mediation techniques or who have mediated at least 20 disputes.
2213 In order to become initially certified by the division, paid
2214 mediators must be certified by the Supreme Court to mediate
2215 court cases in county or circuit courts. However, the division
2216 may adopt, by rule, additional factors for the certification of
2217 paid mediators, which must be related to experience, education,
2218 or background. Any person initially certified as a paid mediator
2219 by the division must, in order to continue to be certified,
2220 comply with the factors or requirements adopted by rule.
2221 (n) If a complaint is made, the division must conduct its
2222 inquiry with due regard for the interests of the affected
2223 parties. Within 30 days after receipt of a complaint, the
2224 division shall acknowledge the complaint in writing and notify
2225 the complainant whether the complaint is within the jurisdiction
2226 of the division and whether additional information is needed by
2227 the division from the complainant. The division shall conduct
2228 its investigation and, within 90 days after receipt of the
2229 original complaint or of timely requested additional
2230 information, take action upon the complaint. However, the
2231 failure to complete the investigation within 90 days does not
2232 prevent the division from continuing the investigation,
2233 accepting or considering evidence obtained or received after 90
2234 days, or taking administrative action if reasonable cause exists
2235 to believe that a violation of this chapter or a rule has
2236 occurred. If an investigation is not completed within the time
2237 limits established in this paragraph, the division shall, on a
2238 monthly basis, notify the complainant in writing of the status
2239 of the investigation. When reporting its action to the
2240 complainant, the division shall inform the complainant of any
2241 right to a hearing under ss. 120.569 and 120.57. The division
2242 may adopt rules regarding the submission of a complaint against
2243 an association.
2244 (o) Condominium association directors, officers, and
2245 employees; condominium developers; bulk assignees, bulk buyers,
2246 and community association managers; and community association
2247 management firms have an ongoing duty to reasonably cooperate
2248 with the division in any investigation under this section. The
2249 division shall refer to local law enforcement authorities any
2250 person whom the division believes has altered, destroyed,
2251 concealed, or removed any record, document, or thing required to
2252 be kept or maintained by this chapter with the purpose to impair
2253 its verity or availability in the department’s investigation.
2254 The division shall refer to local law enforcement authorities
2255 any person whom the division believes has engaged in fraud,
2256 theft, embezzlement, or other criminal activity or when the
2257 division has cause to believe that fraud, theft, embezzlement,
2258 or other criminal activity has occurred.
2259 (p) The division director or any officer or employee of the
2260 division and the condominium ombudsman or any employee of the
2261 Office of the Condominium Ombudsman may attend and observe any
2262 meeting of the board of administration or any unit owner
2263 meeting, including any meeting of a subcommittee or special
2264 committee, which is open to members of the association for the
2265 purpose of performing the duties of the division or the Office
2266 of the Condominium Ombudsman under this chapter.
2267 (q) The division may:
2268 1. Contract with agencies in this state or other
2269 jurisdictions to perform investigative functions; or
2270 2. Accept grants-in-aid from any source.
2271 (r) The division shall cooperate with similar agencies in
2272 other jurisdictions to establish uniform filing procedures and
2273 forms, public offering statements, advertising standards, and
2274 rules and common administrative practices.
2275 (s) The division shall consider notice to a developer, bulk
2276 assignee, or bulk buyer to be complete when it is delivered to
2277 the address of the developer, bulk assignee, or bulk buyer
2278 currently on file with the division.
2279 (t) In addition to its enforcement authority, the division
2280 may issue a notice to show cause, which must provide for a
2281 hearing, upon written request, in accordance with chapter 120.
2282 (u) If the division receives a complaint regarding access
2283 to official records on the association’s website or through an
2284 application that can be downloaded on a mobile device under s.
2285 718.111(12)(g), the division may request access to the
2286 association’s website or application and investigate. The
2287 division may adopt rules to carry out this paragraph.
2288 (v) The division shall submit to the Governor, the
2289 President of the Senate, the Speaker of the House of
2290 Representatives, and the chairs of the legislative
2291 appropriations committees an annual report that includes, but
2292 need not be limited to, the number of training programs provided
2293 for condominium association board members and unit owners, the
2294 number of complaints received by type, the number and percent of
2295 complaints acknowledged in writing within 30 days and the number
2296 and percent of investigations acted upon within 90 days in
2297 accordance with paragraph (n), and the number of investigations
2298 exceeding the 90-day requirement. The annual report must also
2299 include an evaluation of the division’s core business processes
2300 and make recommendations for improvements, including statutory
2301 changes. After December 31, 2024, the division must include a
2302 list of the associations that have completed the structural
2303 integrity reserve study required under s. 718.112(2)(g). The
2304 report shall be submitted by September 30 following the end of
2305 the fiscal year.
2306 (2)
2307 (d) Each condominium association must create and maintain
2308 an online account with the division, as required in subsection
2309 (3).
2310 (3) On or before October 1, 2025, all condominium
2311 associations must create and maintain an online account with the
2312 division and provide information requested by the division in an
2313 electronic format determined by the division. The division shall
2314 adopt rules to implement this subsection. The division may
2315 require condominium associations to provide such information no
2316 more than once per year, except that the division may require
2317 condominium associations to update the contact information in
2318 paragraph (a) within 30 days after any change. The division
2319 shall provide a condominium association at least a 45-day notice
2320 of any requirement to provide any information after the
2321 condominium association initially creates an online account. The
2322 information that the division may require from condominium
2323 associations is limited to:
2324 (a) Contact information for the association that includes:
2325 1. Name of the association.
2326 2. The physical address of the condominium property.
2327 3. Mailing address and county of the association.
2328 4. E-mail address and telephone number for the association.
2329 5. Name and board title for each member of the
2330 association’s board.
2331 6. Name and contact information of the association’s
2332 community association manager or community association
2333 management firm, if applicable.
2334 7. The hyperlink or website address of the association’s
2335 website, if applicable.
2336 (b) Total number of buildings and for each building in the
2337 association:
2338 1. Total number of stories, including both habitable and
2339 uninhabitable stories.
2340 2. Total number of units.
2341 3. Age of each building based on the certificate of
2342 occupancy.
2343 4. Any construction commenced within the common elements
2344 within the calendar year.
2345 (c) The association’s assessments, including the:
2346 1. Amount of assessment or special assessment by unit type,
2347 including reserves.
2348 2. Purpose of the assessment or special assessment.
2349 3. Name of the financial institution or institutions with
2350 which the association maintains accounts.
2351 (d) A copy of any structural integrity reserve study and
2352 any associated materials requested by the department within 5
2353 business days after such request, in a manner prescribed by the
2354 department.
2355 (a) On or before January 1, 2023, condominium associations
2356 existing on or before July 1, 2022, must provide the following
2357 information to the division in writing, by e-mail, United States
2358 Postal Service, commercial delivery service, or hand delivery,
2359 at a physical address or e-mail address provided by the division
2360 and on a form posted on the division’s website:
2361 1. The number of buildings on the condominium property that
2362 are three stories or higher in height.
2363 2. The total number of units in all such buildings.
2364 3. The addresses of all such buildings.
2365 4. The counties in which all such buildings are located.
2366 (b) The division must compile a list of the number of
2367 buildings on condominium property that are three stories or
2368 higher in height, which is searchable by county, and must post
2369 the list on the division’s website. This list must include all
2370 of the following information:
2371 1. The name of each association with buildings on the
2372 condominium property that are three stories or higher in height.
2373 2. The number of such buildings on each association’s
2374 property.
2375 3. The addresses of all such buildings.
2376 4. The counties in which all such buildings are located.
2377 (c) An association must provide an update in writing to the
2378 division if there are any changes to the information in the list
2379 under paragraph (b) within 6 months after the change.
2380 Section 9. Paragraph (d) of subsection (1) and paragraphs
2381 (d) and (e) of subsection (2) of section 718.503, Florida
2382 Statutes, are amended, to read:
2383 718.503 Developer disclosure prior to sale; nondeveloper
2384 unit owner disclosure prior to sale; voidability.—
2385 (1) DEVELOPER DISCLOSURE.—
2386 (d) Milestone inspection, turnover inspection report, or
2387 structural integrity reserve study.—If the association is
2388 required to have completed a milestone inspection as described
2389 in s. 553.899, a turnover inspection report for a turnover
2390 inspection performed on or after July 1, 2023, or a structural
2391 integrity reserve study, and the association has not completed
2392 the milestone inspection, the turnover inspection report, or the
2393 structural integrity reserve study, each contract entered into
2394 after December 31, 2024, for the sale of a residential unit
2395 shall contain in conspicuous type a statement indicating that
2396 the association is required to have a milestone inspection, a
2397 turnover inspection report, or a structural integrity reserve
2398 study and has not completed such inspection, report, or study,
2399 as appropriate. If the association is not required to have a
2400 milestone inspection as described in s. 553.899 or a structural
2401 integrity reserve study, each contract entered into after
2402 December 31, 2024, for the sale of a residential unit shall
2403 contain in conspicuous type a statement indicating that the
2404 association is not required to have a milestone inspection or a
2405 structural integrity reserve study, as appropriate. If the
2406 association has completed a milestone inspection as described in
2407 s. 553.899, a turnover inspection report for a turnover
2408 inspection performed on or after July 1, 2023, or a structural
2409 integrity reserve study, each contract entered into after
2410 December 31, 2024, for the sale of a residential unit shall
2411 contain in conspicuous type:
2412 1. A clause which states: THE BUYER HEREBY ACKNOWLEDGES
2413 THAT BUYER HAS BEEN PROVIDED A CURRENT COPY OF THE INSPECTOR
2414 PREPARED SUMMARY OF THE MILESTONE INSPECTION REPORT AS DESCRIBED
2415 IN SECTION 553.899, FLORIDA STATUTES, IF APPLICABLE; A COPY OF
2416 THE TURNOVER INSPECTION REPORT DESCRIBED IN SECTION
2417 718.301(4)(p) AND (q), FLORIDA STATUTES, IF APPLICABLE; AND A
2418 COPY OF THE ASSOCIATION’S MOST RECENT STRUCTURAL INTEGRITY
2419 RESERVE STUDY DESCRIBED IN SECTIONS 718.103(26) AND
2420 718.112(2)(g), FLORIDA STATUTES, IF APPLICABLE, MORE THAN 15
2421 DAYS, EXCLUDING SATURDAYS, SUNDAYS, AND LEGAL HOLIDAYS, BEFORE
2422 PRIOR TO EXECUTION OF THIS CONTRACT; and
2423 2. A clause which states: THIS AGREEMENT IS VOIDABLE BY
2424 BUYER BY DELIVERING WRITTEN NOTICE OF THE BUYER’S INTENTION TO
2425 CANCEL WITHIN 15 DAYS, EXCLUDING SATURDAYS, SUNDAYS, AND LEGAL
2426 HOLIDAYS, AFTER THE DATE OF EXECUTION OF THIS AGREEMENT BY THE
2427 BUYER AND RECEIPT BY BUYER OF A CURRENT COPY OF THE INSPECTOR
2428 PREPARED SUMMARY OF THE MILESTONE INSPECTION REPORT AS DESCRIBED
2429 IN SECTION 553.899, FLORIDA STATUTES, IF APPLICABLE; A COPY OF
2430 THE TURNOVER INSPECTION REPORT DESCRIBED IN SECTION
2431 718.301(4)(p) AND (q), FLORIDA STATUTES, IF APPLICABLE; AND A
2432 COPY OF THE ASSOCIATION’S MOST RECENT STRUCTURAL INTEGRITY
2433 RESERVE STUDY DESCRIBED IN SECTIONS 718.103(26) AND
2434 718.112(2)(g), FLORIDA STATUTES, IF APPLICABLE. ANY PURPORTED
2435 WAIVER OF THESE VOIDABILITY RIGHTS SHALL BE OF NO EFFECT. BUYER
2436 MAY EXTEND THE TIME FOR CLOSING FOR A PERIOD OF NOT MORE THAN 15
2437 DAYS, EXCLUDING SATURDAYS, SUNDAYS, AND LEGAL HOLIDAYS, AFTER
2438 THE BUYER RECEIVES A CURRENT COPY OF THE INSPECTOR-PREPARED
2439 SUMMARY OF THE MILESTONE INSPECTION REPORT AS DESCRIBED IN
2440 SECTION 553.899, FLORIDA STATUTES; A COPY OF THE TURNOVER
2441 INSPECTION REPORT DESCRIBED IN SECTION 718.301(4)(p) AND (q),
2442 FLORIDA STATUTES; OR A COPY OF THE ASSOCIATION’S MOST RECENT
2443 STRUCTURAL INTEGRITY RESERVE STUDY DESCRIBED IN SECTIONS
2444 718.103(26) AND 718.112(2)(g), FLORIDA STATUTES, IF REQUESTED IN
2445 WRITING. BUYER’S RIGHT TO VOID THIS AGREEMENT SHALL TERMINATE AT
2446 CLOSING.
2447
2448 A contract that does not conform to the requirements of this
2449 paragraph is voidable at the option of the purchaser before
2450 prior to closing.
2451 (2) NONDEVELOPER DISCLOSURE.—
2452 (d) Each contract entered into after July 1, 1992, for the
2453 resale of a residential unit must shall contain in conspicuous
2454 type either:
2455 1. A clause which states: THE BUYER HEREBY ACKNOWLEDGES
2456 THAT BUYER HAS BEEN PROVIDED A CURRENT COPY OF THE DECLARATION
2457 OF CONDOMINIUM, ARTICLES OF INCORPORATION OF THE ASSOCIATION,
2458 BYLAWS AND RULES OF THE ASSOCIATION, A COPY OF THE MOST RECENT
2459 ANNUAL FINANCIAL STATEMENT AND ANNUAL BUDGET, AND FREQUENTLY
2460 ASKED QUESTIONS AND ANSWERS DOCUMENT MORE THAN 7 3 DAYS,
2461 EXCLUDING SATURDAYS, SUNDAYS, AND LEGAL HOLIDAYS, BEFORE PRIOR
2462 TO EXECUTION OF THIS CONTRACT; or
2463 2. A clause which states: THIS AGREEMENT IS VOIDABLE BY
2464 BUYER BY DELIVERING WRITTEN NOTICE OF THE BUYER’S INTENTION TO
2465 CANCEL WITHIN 7 3 DAYS, EXCLUDING SATURDAYS, SUNDAYS, AND LEGAL
2466 HOLIDAYS, AFTER THE DATE OF EXECUTION OF THIS AGREEMENT BY THE
2467 BUYER AND RECEIPT BY BUYER OF A CURRENT COPY OF THE DECLARATION
2468 OF CONDOMINIUM, ARTICLES OF INCORPORATION, BYLAWS AND RULES OF
2469 THE ASSOCIATION, A COPY OF THE MOST RECENT ANNUAL FINANCIAL
2470 STATEMENT AND ANNUAL BUDGET, AND FREQUENTLY ASKED QUESTIONS AND
2471 ANSWERS DOCUMENT IF SO REQUESTED IN WRITING. ANY PURPORTED
2472 WAIVER OF THESE VOIDABILITY RIGHTS SHALL BE OF NO EFFECT. BUYER
2473 MAY EXTEND THE TIME FOR CLOSING FOR A PERIOD OF NOT MORE THAN 7
2474 3 DAYS, EXCLUDING SATURDAYS, SUNDAYS, AND LEGAL HOLIDAYS, AFTER
2475 THE BUYER RECEIVES THE DECLARATION, ARTICLES OF INCORPORATION,
2476 BYLAWS AND RULES OF THE ASSOCIATION, AND A COPY OF THE MOST
2477 RECENT YEAR-END FINANCIAL STATEMENT AND ANNUAL BUDGET
2478 INFORMATION AND FREQUENTLY ASKED QUESTIONS AND ANSWERS DOCUMENT
2479 IF REQUESTED IN WRITING. BUYER’S RIGHT TO VOID THIS AGREEMENT
2480 SHALL TERMINATE AT CLOSING.
2481
2482 A contract that does not conform to the requirements of this
2483 paragraph is voidable at the option of the purchaser before
2484 prior to closing.
2485 (e) If the association is required to have completed a
2486 milestone inspection as described in s. 553.899, a turnover
2487 inspection report for a turnover inspection performed on or
2488 after July 1, 2023, or a structural integrity reserve study, and
2489 the association has not completed the milestone inspection, the
2490 turnover inspection report, or the structural integrity reserve
2491 study, each contract entered into after December 31, 2024, for
2492 the sale of a residential unit shall contain in conspicuous type
2493 a statement indicating that the association is required to have
2494 a milestone inspection, a turnover inspection report, or a
2495 structural integrity reserve study and has not completed such
2496 inspection, report, or study, as appropriate. If the association
2497 is not required to have a milestone inspection as described in
2498 s. 553.899 or a structural integrity reserve study, each
2499 contract entered into after December 31, 2024, for the sale of a
2500 residential unit shall contain in conspicuous type a statement
2501 indicating that the association is not required to have a
2502 milestone inspection or a structural integrity reserve study, as
2503 appropriate. If the association has completed a milestone
2504 inspection as described in s. 553.899, a turnover inspection
2505 report for a turnover inspection performed on or after July 1,
2506 2023, or a structural integrity reserve study, each contract
2507 entered into after December 31, 2024, for the resale of a
2508 residential unit shall contain in conspicuous type:
2509 1. A clause which states: THE BUYER HEREBY ACKNOWLEDGES
2510 THAT BUYER HAS BEEN PROVIDED A CURRENT COPY OF THE INSPECTOR
2511 PREPARED SUMMARY OF THE MILESTONE INSPECTION REPORT AS DESCRIBED
2512 IN SECTION 553.899, FLORIDA STATUTES, IF APPLICABLE; A COPY OF
2513 THE TURNOVER INSPECTION REPORT DESCRIBED IN SECTION
2514 718.301(4)(p) AND (q), FLORIDA STATUTES, IF APPLICABLE; AND A
2515 COPY OF THE ASSOCIATION’S MOST RECENT STRUCTURAL INTEGRITY
2516 RESERVE STUDY DESCRIBED IN SECTIONS 718.103(26) AND
2517 718.112(2)(g), FLORIDA STATUTES, IF APPLICABLE, MORE THAN 7 3
2518 DAYS, EXCLUDING SATURDAYS, SUNDAYS, AND LEGAL HOLIDAYS, BEFORE
2519 PRIOR TO EXECUTION OF THIS CONTRACT; and
2520 2. A clause which states: THIS AGREEMENT IS VOIDABLE BY
2521 BUYER BY DELIVERING WRITTEN NOTICE OF THE BUYER’S INTENTION TO
2522 CANCEL WITHIN 7 3 DAYS, EXCLUDING SATURDAYS, SUNDAYS, AND LEGAL
2523 HOLIDAYS, AFTER THE DATE OF EXECUTION OF THIS AGREEMENT BY THE
2524 BUYER AND RECEIPT BY BUYER OF A CURRENT COPY OF THE INSPECTOR
2525 PREPARED SUMMARY OF THE MILESTONE INSPECTION REPORT AS DESCRIBED
2526 IN SECTION 553.899, FLORIDA STATUTES, IF APPLICABLE; A COPY OF
2527 THE TURNOVER INSPECTION REPORT DESCRIBED IN SECTION
2528 718.301(4)(p) AND (q), FLORIDA STATUTES, IF APPLICABLE; AND A
2529 COPY OF THE ASSOCIATION’S MOST RECENT STRUCTURAL INTEGRITY
2530 RESERVE STUDY DESCRIBED IN SECTIONS 718.103(26) AND
2531 718.112(2)(g), FLORIDA STATUTES, IF APPLICABLE. ANY PURPORTED
2532 WAIVER OF THESE VOIDABILITY RIGHTS SHALL BE OF NO EFFECT. BUYER
2533 MAY EXTEND THE TIME FOR CLOSING FOR A PERIOD OF NOT MORE THAN 7
2534 3 DAYS, EXCLUDING SATURDAYS, SUNDAYS, AND LEGAL HOLIDAYS, AFTER
2535 THE BUYER RECEIVES A CURRENT COPY OF THE INSPECTOR-PREPARED
2536 SUMMARY OF THE MILESTONE INSPECTION REPORT AS DESCRIBED IN
2537 SECTION 553.899, FLORIDA STATUTES; A COPY OF THE TURNOVER
2538 INSPECTION REPORT DESCRIBED IN SECTION 718.301(4)(p) AND (q),
2539 FLORIDA STATUTES; OR A COPY OF THE ASSOCIATION’S MOST RECENT
2540 STRUCTURAL INTEGRITY RESERVE STUDY DESCRIBED IN SECTIONS
2541 718.103(26) AND 718.112(2)(g), FLORIDA STATUTES, IF REQUESTED IN
2542 WRITING. BUYER’S RIGHT TO VOID THIS AGREEMENT SHALL TERMINATE AT
2543 CLOSING.
2544
2545 A contract that does not conform to the requirements of this
2546 paragraph is voidable at the option of the purchaser before
2547 prior to closing.
2548 Section 10. Section 8 of chapter 2024-244, Laws of Florida,
2549 is amended to read:
2550 Section 8. Effective January 1, 2026, paragraph (g) of
2551 subsection (12) of section 718.111, Florida Statutes, as amended
2552 by this act, is amended to read:
2553 718.111 The association.—
2554 (12) OFFICIAL RECORDS.—
2555 (g)1. An association managing a condominium with 25 or more
2556 units which does not contain timeshare units shall post digital
2557 copies of the documents specified in subparagraph 2. on its
2558 website or make such documents available through an application
2559 that can be downloaded on a mobile device. Unless a shorter
2560 period is otherwise required, a document must be made available
2561 on the association’s website or made available for download
2562 through an application on a mobile device within 30 days after
2563 the association receives or creates an official record specified
2564 in subparagraph 2.
2565 a. The association’s website or application must be:
2566 (I) An independent website, application, or web portal
2567 wholly owned and operated by the association; or
2568 (II) A website, application, or web portal operated by a
2569 third-party provider with whom the association owns, leases,
2570 rents, or otherwise obtains the right to operate a web page,
2571 subpage, web portal, collection of subpages or web portals, or
2572 an application which is dedicated to the association’s
2573 activities and on which required notices, records, and documents
2574 may be posted or made available by the association.
2575 b. The association’s website or application must be
2576 accessible through the Internet and must contain a subpage, web
2577 portal, or other protected electronic location that is
2578 inaccessible to the general public and accessible only to unit
2579 owners and employees of the association.
2580 c. Upon a unit owner’s written request, the association
2581 must provide the unit owner with a username and password and
2582 access to the protected sections of the association’s website or
2583 application which contain any notices, records, or documents
2584 that must be electronically provided.
2585 2. A current copy of the following documents must be posted
2586 in digital format on the association’s website or application:
2587 a. The recorded declaration of condominium of each
2588 condominium operated by the association and each amendment to
2589 each declaration.
2590 b. The recorded bylaws of the association and each
2591 amendment to the bylaws.
2592 c. The articles of incorporation of the association, or
2593 other documents creating the association, and each amendment to
2594 the articles of incorporation or other documents. The copy
2595 posted pursuant to this sub-subparagraph must be a copy of the
2596 articles of incorporation filed with the Department of State.
2597 d. The rules of the association.
2598 e. The approved minutes of all board of administration
2599 meetings over the preceding 12 months.
2600 f. The video recording or a hyperlink to the video
2601 recording for all meetings of the association, the board of
2602 administration, any committee, and the unit owners which are
2603 conducted by video conference over the preceding 12 months.
2604 g. A list of all executory contracts or documents to which
2605 the association is a party or under which the association or the
2606 unit owners have an obligation or responsibility and, after
2607 bidding for the related materials, equipment, or services has
2608 closed, a list of bids received by the association within the
2609 past year. Summaries of bids for materials, equipment, or
2610 services which exceed $500 must be maintained on the website or
2611 application for 1 year. In lieu of summaries, complete copies of
2612 the bids may be posted.
2613 h.f. The annual budget required by s. 718.112(2)(f) and any
2614 proposed budget to be considered at the annual meeting.
2615 i.g. The financial report required by subsection (13) and
2616 any monthly income or expense statement to be considered at a
2617 meeting.
2618 j.h. The certification of each director required by s.
2619 718.112(2)(d)4.b.
2620 k.i. All contracts or transactions between the association
2621 and any director, officer, corporation, firm, or association
2622 that is not an affiliated condominium association or any other
2623 entity in which an association director is also a director or
2624 officer and financially interested.
2625 l.j. Any contract or document regarding a conflict of
2626 interest or possible conflict of interest as provided in ss.
2627 468.4335, 468.436(2)(b)6., and 718.3027(3).
2628 m.k. The notice of any unit owner meeting and the agenda
2629 for the meeting, as required by s. 718.112(2)(d)3., no later
2630 than 14 days before the meeting. The notice must be posted in
2631 plain view on the front page of the website or application, or
2632 on a separate subpage of the website or application labeled
2633 “Notices” which is conspicuously visible and linked from the
2634 front page. The association must also post on its website or
2635 application any document to be considered and voted on by the
2636 owners during the meeting or any document listed on the agenda
2637 at least 7 days before the meeting at which the document or the
2638 information within the document will be considered.
2639 n.l. Notice of any board meeting, the agenda, and any other
2640 document required for the meeting as required by s.
2641 718.112(2)(c), which must be posted no later than the date
2642 required for notice under s. 718.112(2)(c).
2643 o.m. The inspection reports described in ss. 553.899 and
2644 718.301(4)(p) and any other inspection report relating to a
2645 structural or life safety inspection of condominium property.
2646 p.n. The association’s most recent structural integrity
2647 reserve study, if applicable.
2648 q.o. Copies of all building permits issued for ongoing or
2649 planned construction.
2650 r. A copy of all affidavits required by this chapter.
2651 s. A copy of all investment policy statements adopted
2652 pursuant to paragraph (16)(c), and all financial statements
2653 related to the association’s investment of funds under
2654 subsection (16).
2655 3. The association shall ensure that the information and
2656 records described in paragraph (c), which are not allowed to be
2657 accessible to unit owners, are not posted on the association’s
2658 website or application. If protected information or information
2659 restricted from being accessible to unit owners is included in
2660 documents that are required to be posted on the association’s
2661 website or application, the association shall ensure the
2662 information is redacted before posting the documents.
2663 Notwithstanding the foregoing, the association or its agent is
2664 not liable for disclosing information that is protected or
2665 restricted under this paragraph unless such disclosure was made
2666 with a knowing or intentional disregard of the protected or
2667 restricted nature of such information.
2668 4. The failure of the association to post information
2669 required under subparagraph 2. is not in and of itself
2670 sufficient to invalidate any action or decision of the
2671 association’s board or its committees.
2672 Section 11. Section 31 of chapter 2024-244, Laws of
2673 Florida, is amended to read:
2674 Section 31. The amendments made to ss. 718.103(14) and
2675 718.202(3) and 718.407(1), (2), and (6), Florida Statutes, as
2676 created by this act, may not are intended to clarify existing
2677 law and shall apply retroactively and shall only apply to
2678 condominiums for which declarations were initially recorded on
2679 or after October 1, 2024. However, such amendments do not revive
2680 or reinstate any right or interest that has been fully and
2681 finally adjudicated as invalid before October 1, 2024.
2682 Section 12. Subsection (13) is added to section 719.104,
2683 Florida Statutes, to read:
2684 719.104 Cooperatives; access to units; records; financial
2685 reports; assessments; purchase of leases.—
2686 (13) INVESTMENT OF ASSOCIATION FUNDS.—
2687 (a) A board shall, in fulfilling its duty to manage
2688 operating and reserve funds of its association, use best efforts
2689 to make prudent investment decisions that carefully consider
2690 risk and return in an effort to maximize returns on invested
2691 funds.
2692 (b) An association may invest reserve funds in one or any
2693 combination of certificates of deposit or in depository accounts
2694 at a community bank, savings bank, commercial bank, savings and
2695 loan association, or credit union. Upon a majority vote of the
2696 voting interests, an association may invest reserve funds in
2697 investments other than certificates of deposit or depository
2698 accounts at a community bank, savings bank, commercial bank,
2699 savings and loan association, or credit union, provided the
2700 association complies with paragraphs (c)-(g). Notwithstanding
2701 any declaration, only funds identified as reserve funds may be
2702 invested pursuant to paragraphs (c)-(g). Paragraphs (c)-(g) do
2703 not apply to funds invested in one or any combination of
2704 certificates of deposit or depository accounts at a community
2705 bank, savings bank, commercial bank, savings and loan
2706 association, or credit union.
2707 (c) The board shall create an investment committee composed
2708 of at least two board members and two-unit unit members who are
2709 unit owners but not board members. The board shall also adopt
2710 rules for invested funds, including, but not limited to, rules
2711 requiring periodic reviews of any investment manager’s
2712 performance, the development of an investment policy statement,
2713 and that all meetings of the investment committee be recorded
2714 and made part of the official records of the association. The
2715 investment policy statement developed pursuant to this paragraph
2716 must, at a minimum, address risk, liquidity, and benchmark
2717 measurements; authorized classes of investments; authorized
2718 investment mixes; limitations on authority relating to
2719 investment transactions; requirements for projected reserve
2720 expenditures within, at minimum, the next 24 months to be held
2721 in cash or cash equivalents; projected expenditures relating to
2722 an inspection performed pursuant to s. 553.899; and protocols
2723 for proxy response.
2724 (d) The investment committee shall recommend investment
2725 advisers to the board, and the board shall select one of the
2726 recommended investment advisers to provide services to the
2727 association. Such investment advisers must be registered or have
2728 notice filed under s. 517.12. The selected investment adviser
2729 and any representative or association of the investment adviser
2730 may not be related by affinity or consanguinity to, or under
2731 common ownership with, any board member, community management
2732 company, reserve study provider, or a co-owner of a unit with a
2733 board member or investment committee member. The investment
2734 adviser shall comply with the prudent investor rule in s.
2735 518.11. The investment adviser shall act as a fiduciary to the
2736 association in compliance with the standards set forth in the
2737 Employee Retirement Income Security Act of 1974 at 29 U.S.C. s.
2738 1104(a)(1)(A)-(C). In case of conflict with other laws
2739 authorizing investments, the investment and fiduciary standards
2740 set forth in this subsection must prevail. If at any time the
2741 investment committee determines that an investment adviser does
2742 not meet the requirements of this section, the investment
2743 committee must recommend a replacement investment adviser to the
2744 board.
2745 (e) At least once each calendar year, or sooner if a
2746 substantial financial obligation of the association becomes
2747 known to the board, the association must provide the investment
2748 adviser with the association’s investment policy statement, the
2749 most recent reserve study report, the association’s structural
2750 integrity report, and the financial reports prepared pursuant to
2751 subsection (13). If there is no recent reserve study report, the
2752 association must provide the investment adviser with a good
2753 faith estimate disclosing the annual amount of reserve funds
2754 necessary for the association to fund reserves fully for the
2755 life of each reserve component and each component’s
2756 redundancies. The investment adviser shall annually review these
2757 documents and provide the association with a portfolio
2758 allocation model that is suitably structured and prudently
2759 designed to match projected annual reserve fund requirements and
2760 liability, assets, and liquidity requirements. The investment
2761 adviser shall prepare a funding projection for each reserve
2762 component, including any of the component’s redundancies. The
2763 association shall have available at all times a minimum of 24
2764 months of projected reserves in cash or cash equivalents.
2765 (f) Portfolios managed by the investment adviser may
2766 contain any type of investment necessary to meet the objectives
2767 in the investment policy statement; however, portfolios may not
2768 contain stocks, securities, or other obligations that the State
2769 Board of Administration is prohibited from investing in under s.
2770 215.471, s. 215.4725, or s. 215.473 or that state agencies are
2771 prohibited from investing in under s. 215.472, as determined by
2772 the investment adviser. Any funds invested by the investment
2773 adviser must be held in third-party custodial accounts that are
2774 subject to insurance coverage by the Securities Investor
2775 Protection Corporation in an amount equal to or greater than the
2776 invested amount. The investment adviser may withdraw investment
2777 fees, expenses, and commissions from invested funds.
2778 (g) The investment adviser shall:
2779 1. Annually provide the association with a written
2780 certification of compliance with this section and a list of
2781 stocks, securities, and other obligations that are prohibited
2782 from being in association portfolios under paragraph (f); and
2783 2. Submit monthly, quarterly, and annual reports to the
2784 association which are prepared in accordance with established
2785 financial industry standards and in accordance with chapter 517.
2786 (h) Any principal, earnings, or interest managed under this
2787 subsection must be available at no cost or charge to the
2788 association within 15 business days after delivery of the
2789 association’s written or electronic request.
2790 (i) Unallocated income earned on reserve fund investments
2791 may be spent only on capital expenditures, planned maintenance,
2792 structural repairs, or other items for which the reserve
2793 accounts have been established. Any surplus of funds that
2794 exceeds the amount required to maintain reasonably funded
2795 reserves must be managed pursuant to s. 718.115.
2796 Section 13. Paragraphs (j) and (k) of subsection (1) of
2797 section 719.106, Florida Statutes, are amended to read:
2798 719.106 Bylaws; cooperative ownership.—
2799 (1) MANDATORY PROVISIONS.—The bylaws or other cooperative
2800 documents shall provide for the following, and if they do not,
2801 they shall be deemed to include the following:
2802 (j) Annual budget.—
2803 1. The proposed annual budget of common expenses must be
2804 detailed and must show the amounts budgeted by accounts and
2805 expense classifications, including, if applicable, but not
2806 limited to, those expenses listed in s. 719.504(20). The board
2807 of administration shall adopt the annual budget at least 14 days
2808 before the start of the association’s fiscal year. In the event
2809 that the board fails to timely adopt the annual budget a second
2810 time, it is deemed a minor violation and the prior year’s budget
2811 shall continue in effect until a new budget is adopted.
2812 2.a. In addition to annual operating expenses, the budget
2813 must include reserve accounts for capital expenditures and
2814 deferred maintenance. These accounts must include, but not be
2815 limited to, roof replacement, building painting, and pavement
2816 resurfacing, regardless of the amount of deferred maintenance
2817 expense or replacement cost, and for any other items for which
2818 the deferred maintenance expense or replacement cost exceeds
2819 $25,000 or the inflation-adjusted amount determined by the
2820 division under subparagraph 5., whichever amount is greater
2821 $10,000. The amount to be reserved must be computed by means of
2822 a formula which is based upon estimated remaining useful life
2823 and estimated replacement cost or deferred maintenance expense
2824 of the reserve item. In a budget adopted by an association that
2825 is required to obtain a structural integrity reserve study,
2826 reserves must be maintained for the items identified in
2827 paragraph (k) for which the association is responsible pursuant
2828 to the declaration, and the reserve amount for such items must
2829 be based on the findings and recommendations of the
2830 association’s most recent structural integrity reserve study.
2831 With respect to items for which an estimate of useful life is
2832 not readily ascertainable or with an estimated remaining useful
2833 life of greater than 25 years, an association is not required to
2834 reserve replacement costs for such items, but an association
2835 must reserve the amount of deferred maintenance expense, if any,
2836 which is recommended by the structural integrity reserve study
2837 for such items. The association may adjust replacement reserve
2838 assessments annually to take into account an inflation
2839 adjustment and any changes in estimates or extension of the
2840 useful life of a reserve item caused by deferred maintenance.
2841 b. The members of a unit-owner-controlled association may
2842 determine, by a majority vote of the total voting interests of
2843 the association, for a fiscal year to provide no reserves or
2844 reserves less adequate than required by this subsection. Before
2845 turnover of control of an association by a developer to unit
2846 owners other than a developer under s. 719.301, the developer
2847 controlled association may not vote to waive the reserves or
2848 reduce funding of the reserves.
2849 c. For a budget adopted on or after December 31, 2024, a
2850 unit-owner-controlled association that must obtain a structural
2851 integrity reserve study may not determine to provide no reserves
2852 or reserves less adequate than required by this paragraph for
2853 items listed in paragraph (k). If a meeting of the unit owners
2854 has been called to determine to provide no reserves, or reserves
2855 less adequate than required, and such result is not attained or
2856 a quorum is not attained, the reserves as included in the budget
2857 shall go into effect.
2858 d. If the local building official as defined in s. 468.603,
2859 determines that the entire cooperative building is uninhabitable
2860 due to a natural emergency as defined in s. 252.34, the board
2861 may pause the contribution to its reserves or reduce reserve
2862 funding until the local building official determines that the
2863 cooperative building is habitable. Any reserve account funds
2864 held by the association may be expended, pursuant to the board’s
2865 determination, to make the cooperative building and its
2866 structures habitable. Upon the determination by the local
2867 building official that the cooperative building is habitable,
2868 the association must immediately resume contributing funds to
2869 its reserves.
2870 e. Reserves for the items listed in paragraph (g) may be
2871 funded by regular assessments, special assessments, lines of
2872 credit, or loans.
2873 3. A unit-owner-controlled association that must have a
2874 structural reserve study may secure a line of credit or a loan
2875 to fund capital expenses required by a milestone inspection
2876 under s. 553.899 or a structural integrity reserve study. Any
2877 line of credit or loan under this subparagraph requires the
2878 approval of a majority vote of the total voting interests of the
2879 association. The lines of credit or loans must be sufficient to
2880 fund the cumulative amount of any previously waived or unfunded
2881 portion of the reserve funding amount required by this paragraph
2882 and the most recent structural integrity reserve study. Funding
2883 from the line of credit or loans must be immediately available
2884 for access by the board to fund required repair, maintenance, or
2885 replacement expenses without further approval by the members of
2886 the association. Any lines of credit or loans secured under this
2887 paragraph must be included in the financial report required
2888 under s. 719.104(4).
2889 a. For a budget adopted on or before December 31, 2028, if
2890 the association has completed a milestone inspection pursuant to
2891 s. 553.899 within the previous 2 calendar years, the board, upon
2892 the approval of a majority of the total voting interests of the
2893 association, may temporarily pause, for a period of no more than
2894 2 consecutive annual budgets, reserve fund contributions or
2895 reduce the amount of reserve funding for the purpose of funding
2896 repairs recommended by the milestone inspection. This sub
2897 subparagraph does not apply to a developer-controlled
2898 association and an association in which the nondeveloper unit
2899 owners have been in control for less than 1 year.
2900 b. An association that has paused reserve contributions
2901 under this sub-subparagraph a. must have a structural integrity
2902 reserve study performed before the continuation of reserve
2903 contributions in order to determine the association’s reserve
2904 funding needs and to recommend a reserve funding plan.
2905 4.3. Reserve funds and any interest accruing thereon shall
2906 remain in the reserve account or accounts, and shall be used
2907 only for authorized reserve expenditures unless their use for
2908 other purposes is approved in advance by a vote of the majority
2909 of the total voting interests of the association. Before
2910 turnover of control of an association by a developer to unit
2911 owners other than the developer under s. 719.301, the developer
2912 may not vote to use reserves for purposes other than that for
2913 which they were intended. For a budget adopted on or after
2914 December 31, 2024, members of a unit-owner-controlled
2915 association that must obtain a structural integrity reserve
2916 study may not vote to use reserve funds, or any interest
2917 accruing thereon, for purposes other than the replacement or
2918 deferred maintenance costs of the components listed in paragraph
2919 (k). A vote of the members is not required for the board to
2920 change the accounting method for reserves to a pooling
2921 accounting method or a straight-line accounting method.
2922 5. The division shall annually adjust for inflation, based
2923 on the Consumer Price Index for All Urban Consumers released in
2924 January of each year, the minimum $25,000 threshold amount for
2925 required reserves. By February 1, 2026, and annually thereafter,
2926 the division must conspicuously post on its website the
2927 inflation-adjusted minimum threshold amount for required
2928 reserves.
2929 (k) Structural integrity reserve study.—
2930 1. A residential cooperative association must have a
2931 structural integrity reserve study completed at least every 10
2932 years for each building on the cooperative property that is
2933 three stories or higher in height, as determined by the Florida
2934 Building Code, that includes, at a minimum, a study of the
2935 following items as related to the structural integrity and
2936 safety of the building:
2937 a. Roof.
2938 b. Structure, including load-bearing walls and other
2939 primary structural members and primary structural systems as
2940 those terms are defined in s. 627.706.
2941 c. Fireproofing and fire protection systems.
2942 d. Plumbing.
2943 e. Electrical systems.
2944 f. Waterproofing and exterior painting.
2945 g. Windows and exterior doors.
2946 h. Any other item that has a deferred maintenance expense
2947 or replacement cost that exceeds $25,000 or the inflation
2948 adjusted amount determined by the division under subparagraph
2949 (j)5., whichever is greater, $10,000 and the failure to replace
2950 or maintain such item negatively affects the items listed in
2951 sub-subparagraphs a.-g., as determined by the visual inspection
2952 portion of the structural integrity reserve study.
2953 2. A structural integrity reserve study is based on a
2954 visual inspection of the cooperative property.
2955 3.a. A structural integrity reserve study may be performed
2956 by any person qualified to perform such study. However,
2957 including the visual inspection portion of the structural
2958 integrity reserve study, must be performed or verified by an
2959 engineer licensed under chapter 471, an architect licensed under
2960 chapter 481, or a person certified as a reserve specialist or
2961 professional reserve analyst by the Community Associations
2962 Institute or the Association of Professional Reserve Analysts.
2963 b. Any design professional as defined in s. 558.002(7) or
2964 contractor licensed under chapter 489 who bids to perform a
2965 structural integrity reserve study must disclose in writing to
2966 the association his or her intent to bid on any services related
2967 to any maintenance, repair, or replacement that may be
2968 recommended by the structural integrity reserve study. Any
2969 design professional as defined in s. 558.002 or contractor
2970 licensed under chapter 489 who submits a bid to the association
2971 for performing any services recommended by the structural
2972 integrity reserve study may not have an interest, directly or
2973 indirectly, in the firm or entity providing the association’s
2974 structural integrity reserve study or be a relative of any
2975 person having a direct or indirect interest in such firm, unless
2976 such relationship is disclosed to the association in writing. As
2977 used in this section, the term “relative” means a relative
2978 within the third degree of consanguinity by blood or marriage. A
2979 contract for services is voidable and terminates upon the
2980 association filing a written notice terminating the contract if
2981 the design professional or licensed contractor failed to provide
2982 the written disclosure of the relationship required under this
2983 paragraph. A design professional or licensed contractor may be
2984 subject to discipline under the applicable practice act for his
2985 or her profession for failure to provide the written disclosure
2986 of the relationship required under this subparagraph.
2987 4.a.3. At a minimum, a structural integrity reserve study
2988 must identify each item of the cooperative property being
2989 visually inspected, state the estimated remaining useful life
2990 and the estimated replacement cost or deferred maintenance
2991 expense of each item of the cooperative property being visually
2992 inspected, and provide a reserve funding schedule with a
2993 recommended annual reserve amount that achieves the estimated
2994 replacement cost or deferred maintenance expense of each item of
2995 cooperative property being visually inspected by the end of the
2996 estimated remaining useful life of the item. The structural
2997 integrity reserve study may recommend that reserves do not need
2998 to be maintained for any item for which an estimate of useful
2999 life and an estimate of replacement cost cannot be determined,
3000 or the study may recommend a deferred maintenance expense amount
3001 for such item. At a minimum, the structural integrity reserve
3002 study must include a recommendation for a reserve funding
3003 schedule based on a baseline funding plan that provides a
3004 reserve funding goal in which the reserve funding for each
3005 budget year is sufficient to maintain the reserve cash balance
3006 above zero. The study may recommend other types of reserve
3007 funding schedules, provided that each recommended schedule is
3008 sufficient to meet the association’s maintenance obligation.
3009 b. The structural integrity reserve study may recommend
3010 that reserves for replacement costs do not need to be maintained
3011 for any item with an estimated remaining useful life of greater
3012 than 25 years, but the study may recommend a deferred
3013 maintenance expense amount for such item. If the structural
3014 integrity reserve study recommends reserves for any item for
3015 which reserves are not required under this paragraph, the amount
3016 of the recommended reserves for such item must be separately
3017 identified in the structural integrity reserve study as an item
3018 for which reserves are not required under this paragraph.
3019 c. The structural integrity reserve study must take into
3020 consideration the funding method or methods used by the
3021 association to fund its maintenance and reserve funding
3022 obligations through regular assessments, special assessments,
3023 lines of credit, or loans. If the structural integrity reserve
3024 study is performed before the association has approved a special
3025 assessment or secured a line of credit or a loan, the structural
3026 integrity reserve study must be updated to reflect the funding
3027 method selected by the association and its effect on the reserve
3028 funding schedule, including any anticipated change in the amount
3029 of regular assessments. The structural integrity reserve study
3030 may be updated to reflect any changes to the useful life of the
3031 reserve items after such items are repaired or replaced, and the
3032 effect such repair or replacement will have on the reserve
3033 funding schedule. The association must obtain an updated
3034 structural integrity reserve study before adopting any budget in
3035 which the reserve funding from regular assessments, special
3036 assessments, lines of credit, or loans do not align with the
3037 funding plan from the most recent version of the structural
3038 integrity reserve study.
3039 5.4. This paragraph does not apply to buildings less than
3040 three stories in height; single-family, two-family, or three
3041 family dwellings with three or fewer habitable stories above
3042 ground; any portion or component of a building that has not been
3043 submitted to the cooperative form of ownership; or any portion
3044 or component of a building that is maintained by a party other
3045 than the association.
3046 6.5. Before a developer turns over control of an
3047 association to unit owners other than the developer, the
3048 developer must have a turnover inspection report in compliance
3049 with s. 719.301(4)(p) and (q) for each building on the
3050 cooperative property that is three stories or higher in height.
3051 7.6. Associations existing on or before July 1, 2022, which
3052 are controlled by unit owners other than the developer, must
3053 have a structural integrity reserve study completed by December
3054 31, 2024, for each building on the cooperative property that is
3055 three stories or higher in height. An association that is
3056 required to complete a milestone inspection on or before
3057 December 31, 2026, in accordance with s. 553.899 may complete
3058 the structural integrity reserve study simultaneously with the
3059 milestone inspection. In no event may the structural integrity
3060 reserve study be completed after December 31, 2026.
3061 8.7. If the milestone inspection required by s. 553.899, or
3062 an inspection completed for a similar local requirement, was
3063 performed within the past 5 years and meets the requirements of
3064 this paragraph, such inspection may be used in place of the
3065 visual inspection portion of the structural integrity reserve
3066 study.
3067 9. If the association completes a milestone inspection
3068 required by s. 553.899, or an inspection completed for a similar
3069 local requirement, the association may delay performance of a
3070 required structural integrity reserve study for no more than the
3071 2 consecutive budget years immediately following the milestone
3072 inspection in order to allow the association to focus its
3073 financial resources on completing the repair and maintenance
3074 recommendations of the milestone inspection.
3075 10.8. If the officers or directors of an association
3076 willfully and knowingly fail to complete a structural integrity
3077 reserve study pursuant to this paragraph, such failure is a
3078 breach of an officer’s and director’s fiduciary relationship to
3079 the unit owners under s. 719.104(9). An officer or a director of
3080 the association must sign an affidavit acknowledging receipt of
3081 the completed structural integrity reserve study.
3082 11.9. Within 45 days after receiving the structural
3083 integrity reserve study, the association must distribute a copy
3084 of the study to each unit owner or deliver to each unit owner a
3085 notice that the completed study is available for inspection and
3086 copying upon a written request. Distribution of a copy of the
3087 study or notice must be made by United States mail or personal
3088 delivery at the mailing address, property address, or any other
3089 address of the owner provided to fulfill the association’s
3090 notice requirements under this chapter, or by electronic
3091 transmission to the e-mail address or facsimile number provided
3092 to fulfill the association’s notice requirements to unit owners
3093 who previously consented to receive notice by electronic
3094 transmission.
3095 12.10. Within 45 days after receiving the structural
3096 integrity reserve study, the association must provide the
3097 division with a statement indicating that the study was
3098 completed and that the association provided or made available
3099 such study to each unit owner in accordance with this section.
3100 Such statement must be provided to the division in the manner
3101 established by the division using a form posted on the
3102 division’s website.
3103 13. The division shall adopt by rule the form for the
3104 structural integrity reserve study in coordination with the
3105 Florida Building Commission.
3106 Section 14. Subsection (3) of section 719.501, Florida
3107 Statutes, is amended, paragraph (c) is added to subsection (2)
3108 of that section, and subsection (1) of that section is
3109 reenacted, to read:
3110 719.501 Powers and duties of Division of Florida
3111 Condominiums, Timeshares, and Mobile Homes.—
3112 (1) The Division of Florida Condominiums, Timeshares, and
3113 Mobile Homes of the Department of Business and Professional
3114 Regulation, referred to as the “division” in this part, in
3115 addition to other powers and duties prescribed by chapter 718,
3116 has the power to enforce and ensure compliance with this chapter
3117 and adopted rules relating to the development, construction,
3118 sale, lease, ownership, operation, and management of residential
3119 cooperative units; complaints related to the procedural
3120 completion of the structural integrity reserve studies under s.
3121 719.106(1)(k); and complaints related to the procedural
3122 completion of milestone inspections under s. 553.899. In
3123 performing its duties, the division shall have the following
3124 powers and duties:
3125 (a) The division may make necessary public or private
3126 investigations within or outside this state to determine whether
3127 any person has violated this chapter or any rule or order
3128 hereunder, to aid in the enforcement of this chapter, or to aid
3129 in the adoption of rules or forms hereunder.
3130 (b) The division may require or permit any person to file a
3131 statement in writing, under oath or otherwise, as the division
3132 determines, as to the facts and circumstances concerning a
3133 matter to be investigated.
3134 (c) For the purpose of any investigation under this
3135 chapter, the division director or any officer or employee
3136 designated by the division director may administer oaths or
3137 affirmations, subpoena witnesses and compel their attendance,
3138 take evidence, and require the production of any matter which is
3139 relevant to the investigation, including the existence,
3140 description, nature, custody, condition, and location of any
3141 books, documents, or other tangible things and the identity and
3142 location of persons having knowledge of relevant facts or any
3143 other matter reasonably calculated to lead to the discovery of
3144 material evidence. Upon failure by a person to obey a subpoena
3145 or to answer questions propounded by the investigating officer
3146 and upon reasonable notice to all persons affected thereby, the
3147 division may apply to the circuit court for an order compelling
3148 compliance.
3149 (d) Notwithstanding any remedies available to unit owners
3150 and associations, if the division has reasonable cause to
3151 believe that a violation of any provision of this chapter or
3152 related rule has occurred, the division may institute
3153 enforcement proceedings in its own name against a developer,
3154 association, officer, or member of the board, or its assignees
3155 or agents, as follows:
3156 1. The division may permit a person whose conduct or
3157 actions may be under investigation to waive formal proceedings
3158 and enter into a consent proceeding whereby orders, rules, or
3159 letters of censure or warning, whether formal or informal, may
3160 be entered against the person.
3161 2. The division may issue an order requiring the developer,
3162 association, officer, or member of the board, or its assignees
3163 or agents, to cease and desist from the unlawful practice and
3164 take such affirmative action as in the judgment of the division
3165 will carry out the purposes of this chapter. Such affirmative
3166 action may include, but is not limited to, an order requiring a
3167 developer to pay moneys determined to be owed to a condominium
3168 association.
3169 3. The division may bring an action in circuit court on
3170 behalf of a class of unit owners, lessees, or purchasers for
3171 declaratory relief, injunctive relief, or restitution.
3172 4. The division may impose a civil penalty against a
3173 developer or association, or its assignees or agents, for any
3174 violation of this chapter or related rule. The division may
3175 impose a civil penalty individually against any officer or board
3176 member who willfully and knowingly violates a provision of this
3177 chapter, a rule adopted pursuant to this chapter, or a final
3178 order of the division. The term “willfully and knowingly” means
3179 that the division informed the officer or board member that his
3180 or her action or intended action violates this chapter, a rule
3181 adopted under this chapter, or a final order of the division,
3182 and that the officer or board member refused to comply with the
3183 requirements of this chapter, a rule adopted under this chapter,
3184 or a final order of the division. The division, prior to
3185 initiating formal agency action under chapter 120, shall afford
3186 the officer or board member an opportunity to voluntarily comply
3187 with this chapter, a rule adopted under this chapter, or a final
3188 order of the division. An officer or board member who complies
3189 within 10 days is not subject to a civil penalty. A penalty may
3190 be imposed on the basis of each day of continuing violation, but
3191 in no event shall the penalty for any offense exceed $5,000. The
3192 division shall adopt, by rule, penalty guidelines applicable to
3193 possible violations or to categories of violations of this
3194 chapter or rules adopted by the division. The guidelines must
3195 specify a meaningful range of civil penalties for each such
3196 violation of the statute and rules and must be based upon the
3197 harm caused by the violation, upon the repetition of the
3198 violation, and upon such other factors deemed relevant by the
3199 division. For example, the division may consider whether the
3200 violations were committed by a developer or owner-controlled
3201 association, the size of the association, and other factors. The
3202 guidelines must designate the possible mitigating or aggravating
3203 circumstances that justify a departure from the range of
3204 penalties provided by the rules. It is the legislative intent
3205 that minor violations be distinguished from those which endanger
3206 the health, safety, or welfare of the cooperative residents or
3207 other persons and that such guidelines provide reasonable and
3208 meaningful notice to the public of likely penalties that may be
3209 imposed for proscribed conduct. This subsection does not limit
3210 the ability of the division to informally dispose of
3211 administrative actions or complaints by stipulation, agreed
3212 settlement, or consent order. All amounts collected shall be
3213 deposited with the Chief Financial Officer to the credit of the
3214 Division of Florida Condominiums, Timeshares, and Mobile Homes
3215 Trust Fund. If a developer fails to pay the civil penalty, the
3216 division shall thereupon issue an order directing that such
3217 developer cease and desist from further operation until such
3218 time as the civil penalty is paid or may pursue enforcement of
3219 the penalty in a court of competent jurisdiction. If an
3220 association fails to pay the civil penalty, the division shall
3221 thereupon pursue enforcement in a court of competent
3222 jurisdiction, and the order imposing the civil penalty or the
3223 cease and desist order shall not become effective until 20 days
3224 after the date of such order. Any action commenced by the
3225 division shall be brought in the county in which the division
3226 has its executive offices or in the county where the violation
3227 occurred.
3228 (e) The division may prepare and disseminate a prospectus
3229 and other information to assist prospective owners, purchasers,
3230 lessees, and developers of residential cooperatives in assessing
3231 the rights, privileges, and duties pertaining thereto.
3232 (f) The division has authority to adopt rules pursuant to
3233 ss. 120.536(1) and 120.54 to implement and enforce the
3234 provisions of this chapter.
3235 (g) The division shall establish procedures for providing
3236 notice to an association when the division is considering the
3237 issuance of a declaratory statement with respect to the
3238 cooperative documents governing such cooperative community.
3239 (h) The division shall furnish each association which pays
3240 the fees required by paragraph (2)(a) a copy of this act,
3241 subsequent changes to this act on an annual basis, an amended
3242 version of this act as it becomes available from the Secretary
3243 of State’s office on a biennial basis, and the rules adopted
3244 thereto on an annual basis.
3245 (i) The division shall annually provide each association
3246 with a summary of declaratory statements and formal legal
3247 opinions relating to the operations of cooperatives which were
3248 rendered by the division during the previous year.
3249 (j) The division shall adopt uniform accounting principles,
3250 policies, and standards to be used by all associations in the
3251 preparation and presentation of all financial statements
3252 required by this chapter. The principles, policies, and
3253 standards shall take into consideration the size of the
3254 association and the total revenue collected by the association.
3255 (k) The division shall provide training and educational
3256 programs for cooperative association board members and unit
3257 owners. The training may, in the division’s discretion, include
3258 web-based electronic media and live training and seminars in
3259 various locations throughout the state. The division may review
3260 and approve education and training programs for board members
3261 and unit owners offered by providers and shall maintain a
3262 current list of approved programs and providers and make such
3263 list available to board members and unit owners in a reasonable
3264 and cost-effective manner.
3265 (l) The division shall maintain a toll-free telephone
3266 number accessible to cooperative unit owners.
3267 (m) When a complaint is made to the division, the division
3268 shall conduct its inquiry with reasonable dispatch and with due
3269 regard to the interests of the affected parties. Within 30 days
3270 after receipt of a complaint, the division shall acknowledge the
3271 complaint in writing and notify the complainant whether the
3272 complaint is within the jurisdiction of the division and whether
3273 additional information is needed by the division from the
3274 complainant. The division shall conduct its investigation and
3275 shall, within 90 days after receipt of the original complaint or
3276 timely requested additional information, take action upon the
3277 complaint. However, the failure to complete the investigation
3278 within 90 days does not prevent the division from continuing the
3279 investigation, accepting or considering evidence obtained or
3280 received after 90 days, or taking administrative action if
3281 reasonable cause exists to believe that a violation of this
3282 chapter or a rule of the division has occurred. If an
3283 investigation is not completed within the time limits
3284 established in this paragraph, the division shall, on a monthly
3285 basis, notify the complainant in writing of the status of the
3286 investigation. When reporting its action to the complainant, the
3287 division shall inform the complainant of any right to a hearing
3288 pursuant to ss. 120.569 and 120.57.
3289 (n) The division shall develop a program to certify both
3290 volunteer and paid mediators to provide mediation of cooperative
3291 disputes. The division shall provide, upon request, a list of
3292 such mediators to any association, unit owner, or other
3293 participant in arbitration proceedings under s. 718.1255
3294 requesting a copy of the list. The division shall include on the
3295 list of voluntary mediators only persons who have received at
3296 least 20 hours of training in mediation techniques or have
3297 mediated at least 20 disputes. In order to become initially
3298 certified by the division, paid mediators must be certified by
3299 the Supreme Court to mediate court cases in county or circuit
3300 courts. However, the division may adopt, by rule, additional
3301 factors for the certification of paid mediators, which factors
3302 must be related to experience, education, or background. Any
3303 person initially certified as a paid mediator by the division
3304 must, in order to continue to be certified, comply with the
3305 factors or requirements imposed by rules adopted by the
3306 division.
3307 (2)
3308 (c) A cooperative association shall create and maintain an
3309 online account with the division, as required in subsection (3).
3310 (3) On or before October 1, 2025, all cooperative
3311 associations shall create and maintain an online account with
3312 the division and provide information requested by the division
3313 in an electronic format determined by the division. The division
3314 shall adopt rules to implement this subsection. The division may
3315 require cooperative associations to provide such information no
3316 more than once per year, except that the division may require
3317 cooperative associations to update their contact information in
3318 paragraph (a) within 30 days after any change. The division
3319 shall provide a cooperative association at least a 45-day notice
3320 of any requirement to provide any required information after the
3321 cooperative association creates an online account. The
3322 information that the division may require associations to
3323 provide is limited to:
3324 (a) The contact information for the association that
3325 includes all of the following:
3326 1. The name of the association.
3327 2. The physical address of the cooperative property.
3328 3. The mailing address and county of the association.
3329 4. The e-mail address and telephone number for the
3330 association.
3331 5. The name and board title for each member of the
3332 association’s board.
3333 6. The name and contact information of the association’s
3334 community association manager or community association
3335 management firm, if applicable.
3336 7. The hyperlink or website address of the association’s
3337 website, if applicable.
3338 (b) The total number of buildings and for each building in
3339 the association:
3340 1. The total number of stories of each building, including
3341 both habitable and uninhabitable stories.
3342 2. The total number of units.
3343 3. The age of each building based on the certificate of
3344 occupancy.
3345 4. Any construction commenced on the common elements within
3346 the previous calendar year.
3347 (c) The association’s assessments, including the:
3348 1. Amount of assessment or special assessment by unit type,
3349 including reserves.
3350 2. Purpose of the assessment or special assessment.
3351 3. Name of the financial institution or institutions with
3352 which the association maintains accounts.
3353 (d) A copy of any structural integrity reserve study and
3354 any associated materials requested by the department. The
3355 association must provide such materials within 5 business days
3356 after such request, in a manner prescribed by the department.
3357 (a) On or before January 1, 2023, cooperative associations
3358 existing on or before July 1, 2022, must provide the following
3359 information to the division in writing, by e-mail, United States
3360 Postal Service, commercial delivery service, or hand delivery,
3361 at a physical address or e-mail address provided by the division
3362 and on a form posted on the division’s website:
3363 1. The number of buildings on the cooperative property that
3364 are three stories or higher in height.
3365 2. The total number of units in all such buildings.
3366 3. The addresses of all such buildings.
3367 4. The counties in which all such buildings are located.
3368 (b) The division must compile a list of the number of
3369 buildings on cooperative property that are three stories or
3370 higher in height, which is searchable by county, and must post
3371 the list on the division’s website. This list must include all
3372 of the following information:
3373 1. The name of each association with buildings on the
3374 cooperative property that are three stories or higher in height.
3375 2. The number of such buildings on each association’s
3376 property.
3377 3. The addresses of all such buildings.
3378 4. The counties in which all such buildings are located.
3379 (c) An association must provide an update in writing to the
3380 division if there are any changes to the information in the list
3381 under paragraph (b) within 6 months after the change.
3382 Section 15. Paragraph (d) of subsection (1) and paragraphs
3383 (c) and (d) of subsection (2) of section 719.503, Florida
3384 Statutes, are amended, to read:
3385 719.503 Disclosure prior to sale.—
3386 (1) DEVELOPER DISCLOSURE.—
3387 (d) Milestone inspection, turnover inspection report, or
3388 structural integrity reserve study.—If the association is
3389 required to have completed a milestone inspection as described
3390 in s. 553.899, a turnover inspection report for a turnover
3391 inspection performed on or after July 1, 2023, or a structural
3392 integrity reserve study, and the association has not completed
3393 the milestone inspection, the turnover inspection report, or the
3394 structural integrity reserve study, each contract entered into
3395 after December 31, 2024, for the sale of a residential unit
3396 shall contain in conspicuous type a statement indicating that
3397 the association is required to have a milestone inspection, a
3398 turnover inspection report, or a structural integrity reserve
3399 study and has not completed such inspection, report, or study,
3400 as appropriate. If the association is not required to have a
3401 milestone inspection as described in s. 553.899 or a structural
3402 integrity reserve study, each contract entered into after
3403 December 31, 2024, for the sale of a residential unit shall
3404 contain in conspicuous type a statement indicating that the
3405 association is not required to have a milestone inspection or a
3406 structural integrity reserve study, as appropriate. If the
3407 association has completed a milestone inspection as described in
3408 s. 553.899, a turnover inspection report for a turnover
3409 inspection performed on or after July 1, 2023, or a structural
3410 integrity reserve study, each contract entered into after
3411 December 31, 2024, for the sale of a residential unit shall
3412 contain in conspicuous type:
3413 1. A clause which states: THE BUYER HEREBY ACKNOWLEDGES
3414 THAT BUYER HAS BEEN PROVIDED A CURRENT COPY OF THE INSPECTOR
3415 PREPARED SUMMARY OF THE MILESTONE INSPECTION REPORT AS DESCRIBED
3416 IN SECTION 553.899, FLORIDA STATUTES, IF APPLICABLE; A COPY OF
3417 THE TURNOVER INSPECTION REPORT DESCRIBED IN SECTION
3418 719.301(4)(p) AND (q), FLORIDA STATUTES, IF APPLICABLE; AND A
3419 COPY OF THE ASSOCIATION’S MOST RECENT STRUCTURAL INTEGRITY
3420 RESERVE STUDY DESCRIBED IN SECTIONS 719.103(24) AND
3421 719.106(1)(k), FLORIDA STATUTES, IF APPLICABLE, MORE THAN 15
3422 DAYS, EXCLUDING SATURDAYS, SUNDAYS, AND LEGAL HOLIDAYS, BEFORE
3423 PRIOR TO EXECUTION OF THIS CONTRACT; and
3424 2. A clause which states: THIS AGREEMENT IS VOIDABLE BY
3425 BUYER BY DELIVERING WRITTEN NOTICE OF THE BUYER’S INTENTION TO
3426 CANCEL WITHIN 15 DAYS, EXCLUDING SATURDAYS, SUNDAYS, AND LEGAL
3427 HOLIDAYS, AFTER THE DATE OF EXECUTION OF THIS AGREEMENT BY THE
3428 BUYER AND RECEIPT BY BUYER OF A CURRENT COPY OF THE INSPECTOR
3429 PREPARED SUMMARY OF THE MILESTONE INSPECTION REPORT AS DESCRIBED
3430 IN SECTION 553.899, FLORIDA STATUTES, IF APPLICABLE; A COPY OF
3431 THE TURNOVER INSPECTION REPORT DESCRIBED IN SECTION
3432 719.301(4)(p) AND (q), FLORIDA STATUTES, IF APPLICABLE; AND A
3433 COPY OF THE ASSOCIATION’S MOST RECENT STRUCTURAL INTEGRITY
3434 RESERVE STUDY DESCRIBED IN SECTIONS 719.103(24) AND
3435 719.106(1)(k), FLORIDA STATUTES, IF APPLICABLE. ANY PURPORTED
3436 WAIVER OF THESE VOIDABILITY RIGHTS SHALL BE OF NO EFFECT. BUYER
3437 MAY EXTEND THE TIME FOR CLOSING FOR A PERIOD OF NOT MORE THAN 15
3438 DAYS, EXCLUDING SATURDAYS, SUNDAYS, AND LEGAL HOLIDAYS, AFTER
3439 THE BUYER RECEIVES A CURRENT COPY OF THE INSPECTOR-PREPARED
3440 SUMMARY OF THE MILESTONE INSPECTION REPORT AS DESCRIBED IN
3441 SECTION 553.899, FLORIDA STATUTES; A COPY OF THE TURNOVER
3442 INSPECTION REPORT DESCRIBED IN SECTION 719.301(4)(p) AND (q),
3443 FLORIDA STATUTES; OR A COPY OF THE ASSOCIATION’S MOST RECENT
3444 STRUCTURAL INTEGRITY RESERVE STUDY DESCRIBED IN SECTIONS
3445 719.103(24) AND 719.106(1)(k), FLORIDA STATUTES, IF REQUESTED IN
3446 WRITING. BUYER’S RIGHT TO VOID THIS AGREEMENT SHALL TERMINATE AT
3447 CLOSING.
3448
3449 A contract that does not conform to the requirements of this
3450 paragraph is voidable at the option of the purchaser before
3451 prior to closing.
3452 (2) NONDEVELOPER DISCLOSURE.—
3453 (c) Each contract entered into after July 1, 1992, for the
3454 resale of an interest in a cooperative shall contain in
3455 conspicuous type either:
3456 1. A clause which states: THE BUYER HEREBY ACKNOWLEDGES
3457 THAT BUYER HAS BEEN PROVIDED A CURRENT COPY OF THE ARTICLES OF
3458 INCORPORATION OF THE ASSOCIATION, BYLAWS, RULES OF THE
3459 ASSOCIATION, AND THE QUESTION AND ANSWER SHEET MORE THAN 7 3
3460 DAYS, EXCLUDING SATURDAYS, SUNDAYS, AND LEGAL HOLIDAYS, BEFORE
3461 PRIOR TO EXECUTION OF THIS CONTRACT; or
3462 2. A clause which states: THIS AGREEMENT IS VOIDABLE BY
3463 BUYER BY DELIVERING WRITTEN NOTICE OF THE BUYER’S INTENTION TO
3464 CANCEL WITHIN 7 3 DAYS, EXCLUDING SATURDAYS, SUNDAYS, AND LEGAL
3465 HOLIDAYS, AFTER THE DATE OF EXECUTION OF THIS AGREEMENT BY THE
3466 BUYER AND RECEIPT BY BUYER OF A CURRENT COPY OF THE ARTICLES OF
3467 INCORPORATION, BYLAWS, AND RULES OF THE ASSOCIATION, AND
3468 QUESTION AND ANSWER SHEET, IF SO REQUESTED IN WRITING. ANY
3469 PURPORTED WAIVER OF THESE VOIDABILITY RIGHTS SHALL BE OF NO
3470 EFFECT. BUYER MAY EXTEND THE TIME FOR CLOSING FOR A PERIOD OF
3471 NOT MORE THAN 7 3 DAYS, EXCLUDING SATURDAYS, SUNDAYS, AND LEGAL
3472 HOLIDAYS, AFTER THE BUYER RECEIVES THE ARTICLES OF
3473 INCORPORATION, BYLAWS, RULES, AND QUESTION AND ANSWER SHEET, IF
3474 REQUESTED IN WRITING. BUYER’S RIGHT TO VOID THIS AGREEMENT SHALL
3475 TERMINATE AT CLOSING.
3476
3477 A contract that does not conform to the requirements of this
3478 paragraph is voidable at the option of the purchaser before
3479 prior to closing.
3480 (d) If the association is required to have completed a
3481 milestone inspection as described in s. 553.899, a turnover
3482 inspection report for a turnover inspection performed on or
3483 after July 1, 2023, or a structural integrity reserve study, and
3484 the association has not completed the milestone inspection, the
3485 turnover inspection report, or the structural integrity reserve
3486 study, each contract entered into after December 31, 2024, for
3487 the sale of a residential unit shall contain in conspicuous type
3488 a statement indicating that the association is required to have
3489 a milestone inspection, a turnover inspection report, or a
3490 structural integrity reserve study and has not completed such
3491 inspection, report, or study, as appropriate. If the association
3492 is not required to have a milestone inspection as described in
3493 s. 553.899 or a structural integrity reserve study, each
3494 contract entered into after December 31, 2024, for the sale of a
3495 residential unit shall contain in conspicuous type a statement
3496 indicating that the association is not required to have a
3497 milestone inspection or a structural integrity reserve study, as
3498 appropriate. If the association has completed a milestone
3499 inspection as described in s. 553.899, a turnover inspection
3500 report for a turnover inspection performed on or after July 1,
3501 2023, or a structural integrity reserve study, each contract
3502 entered into after December 31, 2024, for the resale of a
3503 residential unit shall contain in conspicuous type:
3504 1. A clause which states: THE BUYER HEREBY ACKNOWLEDGES
3505 THAT BUYER HAS BEEN PROVIDED A CURRENT COPY OF THE INSPECTOR
3506 PREPARED SUMMARY OF THE MILESTONE INSPECTION REPORT AS DESCRIBED
3507 IN SECTION 553.899, FLORIDA STATUTES, IF APPLICABLE; A COPY OF
3508 THE TURNOVER INSPECTION REPORT DESCRIBED IN SECTION
3509 719.301(4)(p) AND (q), FLORIDA STATUTES, IF APPLICABLE; AND A
3510 COPY OF THE ASSOCIATION’S MOST RECENT STRUCTURAL INTEGRITY
3511 RESERVE STUDY DESCRIBED IN SECTIONS 719.103(24) AND
3512 719.106(1)(k), FLORIDA STATUTES, IF APPLICABLE, MORE THAN 7 3
3513 DAYS, EXCLUDING SATURDAYS, SUNDAYS, AND LEGAL HOLIDAYS, BEFORE
3514 PRIOR TO EXECUTION OF THIS CONTRACT; and
3515 2. A clause which states: THIS AGREEMENT IS VOIDABLE BY
3516 BUYER BY DELIVERING WRITTEN NOTICE OF THE BUYER’S INTENTION TO
3517 CANCEL WITHIN 7 3 DAYS, EXCLUDING SATURDAYS, SUNDAYS, AND LEGAL
3518 HOLIDAYS, AFTER THE DATE OF EXECUTION OF THIS AGREEMENT BY THE
3519 BUYER AND RECEIPT BY BUYER OF A CURRENT COPY OF THE INSPECTOR
3520 PREPARED SUMMARY OF THE MILESTONE INSPECTION REPORT AS DESCRIBED
3521 IN SECTION 553.899, FLORIDA STATUTES, IF APPLICABLE; A COPY OF
3522 THE TURNOVER INSPECTION REPORT DESCRIBED IN SECTION
3523 719.301(4)(p) AND (q), FLORIDA STATUTES, IF APPLICABLE; AND A
3524 COPY OF THE ASSOCIATION’S MOST RECENT STRUCTURAL INTEGRITY
3525 RESERVE STUDY DESCRIBED IN SECTIONS 719.103(24) AND
3526 719.106(1)(k), FLORIDA STATUTES, IF APPLICABLE. ANY PURPORTED
3527 WAIVER OF THESE VOIDABILITY RIGHTS SHALL BE OF NO EFFECT. BUYER
3528 MAY EXTEND THE TIME FOR CLOSING FOR A PERIOD OF NOT MORE THAN 7
3529 3 DAYS, EXCLUDING SATURDAYS, SUNDAYS, AND LEGAL HOLIDAYS, AFTER
3530 THE BUYER RECEIVES A CURRENT COPY OF THE INSPECTOR-PREPARED
3531 SUMMARY OF THE MILESTONE INSPECTION REPORT AS DESCRIBED IN
3532 SECTION 553.899, FLORIDA STATUTES; A COPY OF THE TURNOVER
3533 INSPECTION REPORT DESCRIBED IN SECTION 719.301(4)(p) AND (q),
3534 FLORIDA STATUTES; OR A COPY OF THE ASSOCIATION’S MOST RECENT
3535 STRUCTURAL INTEGRITY RESERVE STUDY DESCRIBED IN SECTIONS
3536 719.103(24) AND 719.106(1)(k), FLORIDA STATUTES, IF REQUESTED IN
3537 WRITING. BUYER’S RIGHT TO VOID THIS AGREEMENT SHALL TERMINATE AT
3538 CLOSING.
3539
3540 A contract that does not conform to the requirements of this
3541 paragraph is voidable at the option of the purchaser before
3542 prior to closing.
3543 Section 16. Subsection (3) of section 914.21, Florida
3544 Statutes, is amended to read:
3545 914.21 Definitions.—As used in ss. 914.22-914.24, the term:
3546 (3) “Official investigation” means any investigation
3547 instituted by a law enforcement agency or prosecuting officer of
3548 the state or a political subdivision of the state or the
3549 Commission on Ethics or the Division of Florida Condominiums,
3550 Timeshares, and Mobile Homes of the Department of Business and
3551 Professional Regulation.
3552 Section 17. For the 2025-2026 fiscal year, the recurring
3553 sum of $150,000 and nonrecurring sum of $100,000 are
3554 appropriated from the Professional Regulation Trust Fund to the
3555 Department of Business and Professional Regulation to contract
3556 with the University of Florida to implement s. 553.899(3)(f),
3557 Florida Statutes, as amended by this act. The unexpended balance
3558 of nonrecurring funds provided by this section shall revert and
3559 is appropriated for the same purpose for the 2026-2027 fiscal
3560 year.
3561 Section 18. For the purpose of incorporating the amendment
3562 made by this act to section 468.4335, Florida Statutes, in a
3563 reference thereto, paragraph (b) of subsection (2) of section
3564 468.436, Florida Statutes, is reenacted to read:
3565 468.436 Disciplinary proceedings.—
3566 (2) The following acts constitute grounds for which the
3567 disciplinary actions in subsection (4) may be taken:
3568 (b)1. Violation of this part.
3569 2. Violation of any lawful order or rule rendered or
3570 adopted by the department or the council.
3571 3. Being convicted of or pleading nolo contendere to a
3572 felony in any court in the United States.
3573 4. Obtaining a license or certification or any other order,
3574 ruling, or authorization by means of fraud, misrepresentation,
3575 or concealment of material facts.
3576 5. Committing acts of gross misconduct or gross negligence
3577 in connection with the profession.
3578 6. Contracting, on behalf of an association, with any
3579 entity in which the licensee has a financial interest that is
3580 not disclosed.
3581 7. Failing to disclose any conflict of interest as required
3582 by s. 468.4335.
3583 8. Violating chapter 718, chapter 719, or chapter 720
3584 during the course of performing community association management
3585 services pursuant to a contract with a community association as
3586 defined in s. 468.431(1).
3587 Section 19. For the purpose of incorporating the amendment
3588 made by this act to section 718.111, Florida Statutes, in a
3589 reference thereto, paragraph (e) of subsection (3) of section
3590 721.13, Florida Statutes, is reenacted to read:
3591 721.13 Management.—
3592 (3) The duties of the managing entity include, but are not
3593 limited to:
3594 (e) Arranging for an annual audit of the financial
3595 statements of the timeshare plan by a certified public
3596 accountant licensed by the Board of Accountancy of the
3597 Department of Business and Professional Regulation, in
3598 accordance with generally accepted auditing standards as defined
3599 by the rules of the Board of Accountancy of the Department of
3600 Business and Professional Regulation. The financial statements
3601 required by this section must be prepared on an accrual basis
3602 using fund accounting, and must be presented in accordance with
3603 generally accepted accounting principles. A copy of the audited
3604 financial statements must be filed with the division for review
3605 and forwarded to the board of directors and officers of the
3606 owners’ association, if one exists, no later than 5 calendar
3607 months after the end of the timeshare plan’s fiscal year. If no
3608 owners’ association exists, each purchaser must be notified, no
3609 later than 5 months after the end of the timeshare plan’s fiscal
3610 year, that a copy of the audited financial statements is
3611 available upon request to the managing entity. Notwithstanding
3612 any requirement of s. 718.111(13) or s. 719.104(4), the audited
3613 financial statements required by this section are the only
3614 annual financial reporting requirements for timeshare
3615 condominiums or timeshare cooperatives.
3616 Section 20. For the purpose of incorporating the amendment
3617 made by this act to section 718.112, Florida Statutes, in
3618 references thereto, paragraph (a) of subsection (7) and
3619 paragraph (c) of subsection (21) of section 718.504, Florida
3620 Statutes, are reenacted to read:
3621 718.504 Prospectus or offering circular.—Every developer of
3622 a residential condominium which contains more than 20
3623 residential units, or which is part of a group of residential
3624 condominiums which will be served by property to be used in
3625 common by unit owners of more than 20 residential units, shall
3626 prepare a prospectus or offering circular and file it with the
3627 Division of Florida Condominiums, Timeshares, and Mobile Homes
3628 prior to entering into an enforceable contract of purchase and
3629 sale of any unit or lease of a unit for more than 5 years and
3630 shall furnish a copy of the prospectus or offering circular to
3631 each buyer. In addition to the prospectus or offering circular,
3632 each buyer shall be furnished a separate page entitled
3633 “Frequently Asked Questions and Answers,” which shall be in
3634 accordance with a format approved by the division and a copy of
3635 the financial information required by s. 718.111. This page
3636 shall, in readable language, inform prospective purchasers
3637 regarding their voting rights and unit use restrictions,
3638 including restrictions on the leasing of a unit; shall indicate
3639 whether and in what amount the unit owners or the association is
3640 obligated to pay rent or land use fees for recreational or other
3641 commonly used facilities; shall contain a statement identifying
3642 that amount of assessment which, pursuant to the budget, would
3643 be levied upon each unit type, exclusive of any special
3644 assessments, and which shall further identify the basis upon
3645 which assessments are levied, whether monthly, quarterly, or
3646 otherwise; shall state and identify any court cases in which the
3647 association is currently a party of record in which the
3648 association may face liability in excess of $100,000; shall
3649 state whether the condominium is created within a portion of a
3650 building or within a multiple parcel building; and which shall
3651 further state whether membership in a recreational facilities
3652 association is mandatory, and if so, shall identify the fees
3653 currently charged per unit type. The division shall by rule
3654 require such other disclosure as in its judgment will assist
3655 prospective purchasers. The prospectus or offering circular may
3656 include more than one condominium, although not all such units
3657 are being offered for sale as of the date of the prospectus or
3658 offering circular. The prospectus or offering circular must
3659 contain the following information:
3660 (7) A description of the recreational and other facilities
3661 that will be used in common with other condominiums, community
3662 associations, or planned developments which require the payment
3663 of the maintenance and expenses of such facilities, directly or
3664 indirectly, by the unit owners. The description shall include,
3665 but not be limited to, the following:
3666 (a) Each building and facility committed to be built and a
3667 summary description of the structural integrity of each building
3668 for which reserves are required pursuant to s. 718.112(2)(g).
3669
3670 Descriptions shall include location, areas, capacities, numbers,
3671 volumes, or sizes and may be stated as approximations or
3672 minimums.
3673 (21) An estimated operating budget for the condominium and
3674 the association, and a schedule of the unit owner’s expenses
3675 shall be attached as an exhibit and shall contain the following
3676 information:
3677 (c) The estimated items of expenses of the condominium and
3678 the association, except as excluded under paragraph (b),
3679 including, but not limited to, the following items, which shall
3680 be stated as an association expense collectible by assessments
3681 or as unit owners’ expenses payable to persons other than the
3682 association:
3683 1. Expenses for the association and condominium:
3684 a. Administration of the association.
3685 b. Management fees.
3686 c. Maintenance.
3687 d. Rent for recreational and other commonly used
3688 facilities.
3689 e. Taxes upon association property.
3690 f. Taxes upon leased areas.
3691 g. Insurance.
3692 h. Security provisions.
3693 i. Other expenses.
3694 j. Operating capital.
3695 k. Reserves for all applicable items referenced in s.
3696 718.112(2)(g).
3697 l. Fees payable to the division.
3698 2. Expenses for a unit owner:
3699 a. Rent for the unit, if subject to a lease.
3700 b. Rent payable by the unit owner directly to the lessor or
3701 agent under any recreational lease or lease for the use of
3702 commonly used facilities, which use and payment is a mandatory
3703 condition of ownership and is not included in the common expense
3704 or assessments for common maintenance paid by the unit owners to
3705 the association.
3706 Section 21. For the purpose of incorporating the amendment
3707 made by this act to section 718.112, Florida Statutes, in
3708 references thereto, paragraph (d) of subsection (1) of section
3709 718.618, Florida Statutes, is reenacted to read:
3710 718.618 Converter reserve accounts; warranties.—
3711 (1) When existing improvements are converted to ownership
3712 as a residential condominium, the developer shall establish
3713 converter reserve accounts for capital expenditures and deferred
3714 maintenance, or give warranties as provided by subsection (6),
3715 or post a surety bond as provided by subsection (7). The
3716 developer shall fund the converter reserve accounts in amounts
3717 calculated as follows:
3718 (d) In addition to establishing the reserve accounts
3719 specified above, the developer shall establish those other
3720 reserve accounts required by s. 718.112(2)(f), and shall fund
3721 those accounts in accordance with the formula provided therein.
3722 The vote to waive or reduce the funding or reserves required by
3723 s. 718.112(2)(f) does not affect or negate the obligations
3724 arising under this section.
3725 Section 22. For the purpose of incorporating the amendment
3726 made by this act to sections 718.111, 718.112, and 718.503,
3727 Florida Statutes, in references thereto, subsections (1) and (3)
3728 of section 718.706, Florida Statutes, are reenacted to read:
3729 718.706 Specific provisions pertaining to offering of units
3730 by a bulk assignee or bulk buyer.—
3731 (1) Before offering more than seven units in a single
3732 condominium for sale or for lease for a term exceeding 5 years,
3733 a bulk assignee or a bulk buyer must file the following
3734 documents with the division and provide such documents to a
3735 prospective purchaser or tenant:
3736 (a) An updated prospectus or offering circular, or a
3737 supplement to the prospectus or offering circular, filed by the
3738 original developer prepared in accordance with s. 718.504, which
3739 must include the form of contract for sale and for lease in
3740 compliance with s. 718.503(2);
3741 (b) An updated Frequently Asked Questions and Answers
3742 sheet;
3743 (c) The executed escrow agreement if required under s.
3744 718.202; and
3745 (d) The financial information required by s. 718.111(13).
3746 However, if a financial information report did not exist before
3747 the acquisition of title by the bulk assignee or bulk buyer, and
3748 if accounting records that permit preparation of the required
3749 financial information report for that period cannot be obtained
3750 despite good faith efforts by the bulk assignee or the bulk
3751 buyer, the bulk assignee or bulk buyer is excused from the
3752 requirement of this paragraph. However, the bulk assignee or
3753 bulk buyer must include in the purchase contract the following
3754 statement in conspicuous type:
3755
3756 ALL OR A PORTION OF THE FINANCIAL INFORMATION REPORT
3757 REQUIRED UNDER S. 718.111(13) FOR THE TIME PERIOD
3758 BEFORE THE SELLER’S ACQUISITION OF THE UNIT IS NOT
3759 AVAILABLE OR CANNOT BE OBTAINED DESPITE THE GOOD FAITH
3760 EFFORTS OF THE SELLER.
3761
3762 (3) A bulk assignee, while in control of the board of
3763 administration of the association, may not authorize, on behalf
3764 of the association:
3765 (a) The waiver of reserves or the reduction of funding of
3766 the reserves pursuant to s. 718.112(2)(f)2., unless approved by
3767 a majority of the voting interests not controlled by the
3768 developer, bulk assignee, and bulk buyer; or
3769 (b) The use of reserve expenditures for other purposes
3770 pursuant to s. 718.112(2)(f)3., unless approved by a majority of
3771 the voting interests not controlled by the developer, bulk
3772 assignee, and bulk buyer.
3773 Section 23. For the purpose of incorporating the amendment
3774 made by this act to section 719.106, Florida Statutes, in a
3775 reference thereto, subsection (24) of section 719.103, Florida
3776 Statutes, is reenacted to read:
3777 719.103 Definitions.—As used in this chapter:
3778 (24) “Structural integrity reserve study” means a study of
3779 the reserve funds required for future major repairs and
3780 replacement of the cooperative property performed as required
3781 under s. 719.106(1)(k).
3782 Section 24. For the purpose of incorporating the amendment
3783 made by this act to section 719.106, Florida Statutes, in
3784 references thereto, paragraph (a) of subsection (7) and
3785 paragraph (c) of subsection (20) of section 719.504, Florida
3786 Statutes, are reenacted to read:
3787 719.504 Prospectus or offering circular.—Every developer of
3788 a residential cooperative which contains more than 20
3789 residential units, or which is part of a group of residential
3790 cooperatives which will be served by property to be used in
3791 common by unit owners of more than 20 residential units, shall
3792 prepare a prospectus or offering circular and file it with the
3793 Division of Florida Condominiums, Timeshares, and Mobile Homes
3794 prior to entering into an enforceable contract of purchase and
3795 sale of any unit or lease of a unit for more than 5 years and
3796 shall furnish a copy of the prospectus or offering circular to
3797 each buyer. In addition to the prospectus or offering circular,
3798 each buyer shall be furnished a separate page entitled
3799 “Frequently Asked Questions and Answers,” which must be in
3800 accordance with a format approved by the division. This page
3801 must, in readable language: inform prospective purchasers
3802 regarding their voting rights and unit use restrictions,
3803 including restrictions on the leasing of a unit; indicate
3804 whether and in what amount the unit owners or the association is
3805 obligated to pay rent or land use fees for recreational or other
3806 commonly used facilities; contain a statement identifying that
3807 amount of assessment which, pursuant to the budget, would be
3808 levied upon each unit type, exclusive of any special
3809 assessments, and which identifies the basis upon which
3810 assessments are levied, whether monthly, quarterly, or
3811 otherwise; state and identify any court cases in which the
3812 association is currently a party of record in which the
3813 association may face liability in excess of $100,000; and state
3814 whether membership in a recreational facilities association is
3815 mandatory and, if so, identify the fees currently charged per
3816 unit type. The division shall by rule require such other
3817 disclosure as in its judgment will assist prospective
3818 purchasers. The prospectus or offering circular may include more
3819 than one cooperative, although not all such units are being
3820 offered for sale as of the date of the prospectus or offering
3821 circular. The prospectus or offering circular must contain the
3822 following information:
3823 (7) A description of the recreational and other facilities
3824 that will be used in common with other cooperatives, community
3825 associations, or planned developments which require the payment
3826 of the maintenance and expenses of such facilities, directly or
3827 indirectly, by the unit owners. The description shall include,
3828 but not be limited to, the following:
3829 (a) Each building and facility committed to be built and a
3830 summary description of the structural integrity of each building
3831 for which reserves are required pursuant to s. 719.106(1)(k).
3832
3833 Descriptions shall include location, areas, capacities, numbers,
3834 volumes, or sizes and may be stated as approximations or
3835 minimums.
3836 (20) An estimated operating budget for the cooperative and
3837 the association, and a schedule of the unit owner’s expenses
3838 shall be attached as an exhibit and shall contain the following
3839 information:
3840 (c) The estimated items of expenses of the cooperative and
3841 the association, except as excluded under paragraph (b),
3842 including, but not limited to, the following items, which shall
3843 be stated as an association expense collectible by assessments
3844 or as unit owners’ expenses payable to persons other than the
3845 association:
3846 1. Expenses for the association and cooperative:
3847 a. Administration of the association.
3848 b. Management fees.
3849 c. Maintenance.
3850 d. Rent for recreational and other commonly used areas.
3851 e. Taxes upon association property.
3852 f. Taxes upon leased areas.
3853 g. Insurance.
3854 h. Security provisions.
3855 i. Other expenses.
3856 j. Operating capital.
3857 k. Reserves for all applicable items referenced in s.
3858 719.106(1)(k).
3859 l. Fee payable to the division.
3860 2. Expenses for a unit owner:
3861 a. Rent for the unit, if subject to a lease.
3862 b. Rent payable by the unit owner directly to the lessor or
3863 agent under any recreational lease or lease for the use of
3864 commonly used areas, which use and payment are a mandatory
3865 condition of ownership and are not included in the common
3866 expense or assessments for common maintenance paid by the unit
3867 owners to the association.
3868 Section 25. Except as otherwise provided in this act, this
3869 act shall take effect July 1, 2025.
3870
3871 ================= T I T L E A M E N D M E N T ================
3872 And the title is amended as follows:
3873 Delete everything before the enacting clause
3874 and insert:
3875 A bill to be entitled
3876 An act relating to condominium and cooperative
3877 associations; amending s. 468.432, F.S.; prohibiting a
3878 person whose community association manager license is
3879 revoked from having an indirect or direct ownership
3880 interest in, or being an employee, a partner, an
3881 officer, a director, or a trustee of, a community
3882 association management firm for a specified timeframe;
3883 requiring a licensee to create and maintain an online
3884 licensure account with the Department of Business and
3885 Professional Regulation; requiring a community
3886 association manager to identify on his or her online
3887 licensure account certain information; requiring a
3888 licensee to provide specific information on his or her
3889 online licensure account; requiring that such
3890 information be updated within a specified timeframe;
3891 requiring a community association management firm to
3892 identify on its online licensure account the community
3893 association managers that it employs to provide
3894 community association management services; requiring
3895 the department to give written notice to the community
3896 association management firm and the community
3897 association if the community association manager has
3898 his or her license suspended or revoked; amending s.
3899 468.4334, F.S.; prohibiting a community association
3900 manager or a community association management firm
3901 from knowingly performing any act directed by the
3902 community association if such act violates any state
3903 or federal law; revising the contractual obligations a
3904 community association manager or a community
3905 association management firm has with the association
3906 board; requiring that such contract include a certain
3907 statement, if applicable to the type of management
3908 services provided in the contract; prohibiting such
3909 contracts from waiving or limiting certain
3910 professional practice standards; requiring a community
3911 association to include specified information on its
3912 website or mobile application, if such association is
3913 required to maintain official records on a website or
3914 an application; conforming provisions to changes made
3915 by the act; amending s. 468.4335, F.S.; revising what
3916 constitutes a rebuttable presumption of a conflict of
3917 interest with a community association manager or a
3918 community association management firm; defining the
3919 term “compensation”; requiring an association to
3920 solicit multiple bids from other third-party providers
3921 if a bid that exceeds a specified amount is or may
3922 reasonably be construed to be a conflict of interest;
3923 providing applicability; deleting a requirement that
3924 all contracts and transactional documents related to a
3925 proposed activity that is a conflict of interest be
3926 attached to the meeting agenda of the next board of
3927 administration meeting; requiring the notice of the
3928 board meeting to include certain information about the
3929 proposed activity that is a conflict of interest;
3930 deleting a requirement that the proposed activity be
3931 disclosed at the next regular or special meeting of
3932 the members; providing that a contract is voidable if
3933 certain findings are made; providing specifications
3934 for terminating a contract; making technical changes;
3935 amending s. 553.899, F.S.; requiring the local
3936 enforcement agency responsible for milestone
3937 inspections to provide to the Department of Business
3938 and Professional Regulation certain information in an
3939 electronic format; specifying the information to be
3940 provided to the department; requiring the department
3941 to contract with the University of Florida for the
3942 creation of a report that provides certain information
3943 on milestone inspections during a specified timeframe;
3944 requiring a local enforcement agency to provide the
3945 university with certain information; authorizing the
3946 university to request any additional information from
3947 a local enforcement agency required to complete the
3948 report; requiring the university to compile the report
3949 and the department to transmit the report to the
3950 Governor and the Legislature; requiring, rather than
3951 authorizing, the board of county commissioners or a
3952 municipal governing body to adopt a specified
3953 ordinance; requiring specified professionals who bid
3954 to perform a structural integrity reserve study to
3955 disclose to the association in writing their intent to
3956 bid on services related to any maintenance, repair, or
3957 replacement that may be recommended by the structural
3958 integrity reserve study; prohibiting such
3959 professionals from having any interest in or being
3960 related to any person having any interest in the firm
3961 or entity providing the association’s structural
3962 integrity reserve study unless such relationship is
3963 disclosed in writing; defining the term “relative”;
3964 providing that a contract for services is voidable and
3965 terminates upon the association filing a written
3966 notice terminating such a contract if such
3967 professionals fail to provide a written disclosure of
3968 such relationship with the firm conducting the
3969 structural integrity reserve study; providing that
3970 such professionals may be subject to discipline for
3971 failure to provide such written disclosure; amending
3972 s. 718.103, F.S.; revising the definition of the term
3973 “alternative funding method”; defining the term “video
3974 conference”; amending s. 718.111, F.S.; requiring a
3975 community association manager or a community
3976 association management firm that contracts with a
3977 community association to possess specific licenses;
3978 providing that all board members or officers of a
3979 community association that contracts with a community
3980 association manager or a community association
3981 management firm have a duty to ensure that the
3982 community association manager or community association
3983 management firm is properly licensed before entering
3984 into a contract; authorizing a community association
3985 to terminate a contract with a community association
3986 manager or a community association management firm if
3987 the manager’s or management firm’s license is
3988 suspended or revoked during the term of the contract;
3989 providing that a community association may terminate a
3990 contract with a community association management firm
3991 if such firm has its license suspended or revoked,
3992 effective upon the date of the license suspension or
3993 revocation; requiring every condominium association to
3994 have adequate property insurance; deleting specified
3995 required coverage; providing that the amount of
3996 adequate insurance coverage may be based on the
3997 replacement cost of the property to be insured, as
3998 determined by an independent insurance appraisal or
3999 previous appraisal; requiring that such replacement
4000 cost be determined according to a specified timeframe;
4001 providing that an association’s obligation to obtain
4002 and provide adequate property insurance may be
4003 satisfied by obtaining and maintaining insurance
4004 coverage sufficient to cover a specified amount;
4005 revising which items constitute the official records
4006 of the association; requiring that certain documents
4007 be posted on certain associations’ websites or made
4008 available for download through an application on a
4009 mobile device within a specified timeframe; revising
4010 which documents must be posted in digital format on
4011 the association’s website or application; revising the
4012 timeframe in which the association must deliver a copy
4013 of the most recent financial report or a notice that a
4014 copy of the most recent financial report; revising the
4015 methods of delivery for a copy of the most recent
4016 association financial report to include electronic
4017 delivery via the Internet; requiring that an officer
4018 or a director execute an affidavit as evidence of
4019 compliance with the delivery requirement; revising how
4020 financial reports are prepared; requiring an
4021 association board to use best efforts to make prudent
4022 investment decisions in fulfilling its duty to manage
4023 operating and reserve funds of the association;
4024 authorizing an association, including a
4025 multicondominium association, to invest reserve funds
4026 in specified financial institutions; authorizing such
4027 associations to place reserve funds in other
4028 investments upon a majority vote of the voting
4029 interests of the association; providing restrictions;
4030 prohibiting any funds not identified as reserve funds
4031 from being used for investments; requiring a board to
4032 create an investment committee composed of a specified
4033 minimum number of board members; requiring the board
4034 to adopt rules; requiring that all meetings of the
4035 investment committee be recorded and made part of the
4036 official records of the association; requiring that
4037 the investment policy statement developed pursuant to
4038 certain provisions address specified issues; requiring
4039 the investment committee to recommend investment
4040 advisers to the board; requiring the board to select
4041 one of the recommended investment advisers to provide
4042 services to the association; requiring that such
4043 advisers be registered; prohibiting an investment
4044 adviser from being related to any board member,
4045 community management company, reserve study provider,
4046 or co-owner of a unit with a board member or
4047 investment committee member; requiring investment
4048 advisers to comply with the prudent investor rule;
4049 requiring an adviser to act as a fiduciary to the
4050 association; providing that the investment and
4051 fiduciary standards required by the act take
4052 precedence over any conflicting law; requiring the
4053 investment committee to recommend a replacement
4054 adviser if the committee determines that an investment
4055 adviser is not meeting requirements; requiring the
4056 association to provide the investment adviser with
4057 specified financial information at least once each
4058 calendar year, or sooner if a substantial financial
4059 obligation of the association becomes known to the
4060 board; requiring the investment adviser to annually
4061 review such financial information and provide the
4062 association with a portfolio allocation model that is
4063 suitably structured and prudently designed to match
4064 projected annual reserve fund requirements and
4065 liability, assets, and liquidity requirements;
4066 requiring the investment adviser to prepare a funding
4067 projection for each reserve component, including any
4068 of the component’s redundancies; requiring that a
4069 specified minimum timeframe of projected reserves in
4070 cash or cash equivalents be available to the
4071 association; authorizing a portfolio managed by an
4072 investment adviser to contain any type of investment
4073 necessary to meet the objectives in the investment
4074 policy statement; providing exceptions; requiring that
4075 any funds invested by the investment adviser be held
4076 in third-party custodial accounts that are subject to
4077 insurance coverage by the Securities Investor
4078 Protection Corporation in an amount equal to or
4079 greater than the invested amount; authorizing the
4080 investment adviser to withdraw investment fees,
4081 expenses, and commissions from invested funds;
4082 requiring the investment adviser to annually provide
4083 the association with a written certification of
4084 compliance with certain provisions and provide the
4085 association with a list of certain stocks, securities,
4086 and other obligations; requiring the investment
4087 adviser to submit monthly, quarterly, and annual
4088 reports to the association, prepared in accordance
4089 with established financial industry standards;
4090 requiring that any principal, earnings, or interest
4091 managed be available to the association at no cost
4092 within a specified timeframe after the association’s
4093 written or electronic request; requiring that
4094 unallocated income earned on reserve fund investments
4095 be spent only on specified expenditures; amending s.
4096 718.112, F.S.; authorizing an association board
4097 meeting to be conducted in person or by video
4098 conference; requiring the Division of Florida
4099 Condominiums, Timeshares, and Mobile Homes to adopt
4100 rules; requiring that notice for board meetings
4101 conducted via video conference contain specific
4102 information; requiring that such meetings be recorded
4103 and maintained as an official record of the
4104 association; revising how notice may be sent to unit
4105 owners; revising the distance from the condominium
4106 property within which a unit owner meeting must be
4107 held; authorizing a unit owner to vote electronically
4108 if the unit owner meeting is conducted via video
4109 conference; authorizing unit owner meetings to be
4110 conducted in person or via video conference;
4111 specifying what constitutes a quorum for meetings held
4112 via video conference; requiring that the location of
4113 the meeting be provided in the association bylaws or
4114 within a specified distance from, or within the same
4115 county of, the condominium property if the bylaws are
4116 silent as to the location; requiring that meetings
4117 held via video conference be recorded and be
4118 maintained as an official record of the association;
4119 requiring the division to adopt rules; revising the
4120 method of serving notices of unit owner meetings;
4121 authorizing budget meetings to be conducted via video
4122 conference; requiring the division to adopt rules;
4123 requiring that a sound transmitting device be used at
4124 such meetings for a specified purpose; revising a
4125 provision that a board proposing a budget that
4126 requires a certain special assessment against unit
4127 owners to simultaneously propose a substitute budget
4128 that meets certain requirements, rather than conduct a
4129 special meeting of the unit owners to consider a
4130 substitute budget after the adoption of the annual
4131 budget; requiring unit owners, rather than authorizing
4132 them, to consider a substitute budget; authorizing the
4133 annual budget initially proposed to be adopted by the
4134 board; revising the criteria used in determining
4135 whether assessments exceed the specified percentage of
4136 assessments of the previous fiscal year; revising the
4137 threshold for deferred maintenance expenses or
4138 replacements in reserve accounts; authorizing the
4139 members to vote to waive the maintenance of reserves
4140 recommended in the most recent structural integrity
4141 reserve study under certain circumstances; revising
4142 the provision that any association, rather than an
4143 association operating a multicondominium, may
4144 determine to provide no reserves or less reserves than
4145 required if an alternative funding method is used by
4146 the association; deleting the requirement that the
4147 division approve the funding method; providing that
4148 specified reserves may be funded by regular
4149 assessments, special assessments, lines of credit, or
4150 loans under certain circumstances; authorizing a unit
4151 owner-controlled association that is required to have
4152 a structural reserve study to obtain a line of credit
4153 or a loan to fund capital expenses required by a
4154 milestone inspection or a structural integrity reserve
4155 study; requiring that such line of credit or loan be
4156 approved by a majority of the total voting interests
4157 of the association; requiring that such line of credit
4158 or loan be sufficient to fund the cumulative amount of
4159 any previously waived or unfunded portions of the
4160 reserve funding amount and the most recent structural
4161 integrity reserve study; requiring that funding from
4162 the line of credit or loan be immediately available
4163 for access by the board for a specified purpose;
4164 requiring that such lines of credit or loans be
4165 included in the association’s financial report;
4166 providing applicability; deleting a requirement that
4167 the majority of the members must approve of the board
4168 pausing contributions to the association’s reserves
4169 for a specified purpose; authorizing the board to
4170 temporarily pause reserve fund contributions or reduce
4171 the amount of reserve funding for a specified purpose
4172 for a budget adopted on or before a specified date if
4173 the association has completed a milestone inspection
4174 within a specified timeframe and such inspection
4175 recommended certain repairs; requiring that such
4176 temporary pause or reduction be approved by a majority
4177 of the total voting interests of the association;
4178 providing applicability; requiring associations that
4179 have paused or reduced their reserve funding to have a
4180 structural integrity reserve study performed before
4181 the continuation of reserve contributions for
4182 specified purposes; providing that a vote of the
4183 members is not required for the board to change the
4184 accounting method for reserves to specified accounting
4185 methods; requiring the division to annually adjust for
4186 inflation the minimum threshold amount for required
4187 reserves, based on specified criteria; requiring the
4188 division, by a specified date and annually thereafter,
4189 to conspicuously post on its website the inflation
4190 adjusted minimum threshold amount for required
4191 reserves; revising the items to be included in a
4192 structural integrity reserve study; requiring
4193 specified design professionals or contractors who bid
4194 to perform a structural integrity reserve study to
4195 disclose in writing to the association their intent to
4196 bid on any services related to the maintenance,
4197 repair, or replacement that may be recommended by the
4198 structural integrity reserve study; prohibiting such
4199 professionals or contractors from having any interest
4200 in or being related to any person having any interest
4201 in the firm or entity providing the association’s
4202 structural integrity reserve study unless such
4203 relationship is disclosed in writing; defining the
4204 term “relative”; providing that a contract for
4205 services is voidable and terminates upon the
4206 association filing a written notice terminating such a
4207 contract if such professional or contractor fails to
4208 provide a written disclosure of such relationship with
4209 the firm conducting the structural integrity reserve
4210 study; providing that such professional or contractor
4211 may be subject to discipline for his or her failure to
4212 provide such written disclosure; requiring that a
4213 structural integrity reserve study include a
4214 recommendation for a reserve funding schedule based on
4215 specified criteria; authorizing the study to recommend
4216 other types of reserve funding schedules, provided
4217 each recommended schedule is sufficient to meet the
4218 association’s maintenance obligations; requiring that
4219 reserves not required for certain items be separately
4220 identified as such in the structural integrity reserve
4221 study; requiring the structural integrity reserve
4222 study to take into consideration the funding method or
4223 methods used by the association to fund its
4224 maintenance and reserve funding obligations through
4225 regular assessments, special assessments, loans, or
4226 lines of credit; requiring a structural integrity
4227 reserve study that has been performed before the
4228 approval of a special assessment or the securing of a
4229 line of credit or a loan to be updated to reflect
4230 certain information regarding the reserve funding
4231 schedule; authorizing a structural integrity reserve
4232 study to be updated to reflect changes in the useful
4233 life of the reserve items after such items are
4234 repaired or replaced, and the effect of such repair or
4235 replacement will have on the reserve funding schedule;
4236 requiring an association to obtain an updated
4237 structural integrity reserve study before adopting any
4238 budget in which the reserve funding from regular
4239 assessments, special assessments, loans, or lines of
4240 credit do not align with the funding plan of the most
4241 recent version of the structural integrity reserve
4242 study; authorizing an association to delay a required
4243 structural integrity reserve study for a specified
4244 timeframe if it has completed a milestone inspection
4245 or similar inspection, for a specified purpose;
4246 requiring an officer or director of an association to
4247 sign an affidavit acknowledging receipt of the
4248 completed structural integrity reserve study;
4249 requiring the division to adopt rules for the form for
4250 the structural integrity reserve study in coordination
4251 with the Florida Building Commission; making technical
4252 changes; amending s. 718.501, F.S.; revising the
4253 duties of the Division of Florida Condominiums,
4254 Timeshares, and Mobile Homes regarding investigation
4255 of complaints; requiring condominium associations to
4256 create and maintain an online account with the
4257 division; requiring board members to maintain accurate
4258 contact information on file with the division;
4259 requiring the division to adopt rules; requiring all
4260 condominium associations to create and maintain an
4261 online account with the division; requiring all
4262 condominium associations to provide specified
4263 information to the division by a specified date;
4264 requiring that such information be updated within a
4265 specified timeframe; requiring the division to adopt
4266 rules; authorizing the division to require condominium
4267 associations to provide information to the division;
4268 specifying the information to be provided to the
4269 division; amending s. 718.503, F.S.; revising the
4270 disclosures that must be included in a contract for
4271 the sale and resale of a residential unit; amending s.
4272 8 of chapter 2024-244, Laws of Florida, as amended;
4273 revising the documents required to be posted on
4274 certain associations’ websites or be made available
4275 through download using an application on a mobile
4276 device; amending s. 31 of chapter 2024-244, Laws of
4277 Florida; revising applicability; amending s. 719.104,
4278 F.S.; requiring a board to use best efforts to make
4279 prudent investment decisions in fulfilling its duty to
4280 manage operating and reserve funds of the cooperative
4281 association; authorizing an association to invest
4282 reserve funds in specified financial institutions;
4283 authorizing such associations to place reserve funds
4284 in other investments upon a majority vote of the
4285 voting interests of the association; providing
4286 restrictions; prohibiting any funds not identified as
4287 reserve funds from being used for investments;
4288 providing applicability; requiring a board to create
4289 an investment committee composed of a specified
4290 minimum number of board members; requiring the board
4291 to adopt rules; requiring that all meetings of the
4292 investment committee be recorded and made part of the
4293 official records of the association; requiring that
4294 the investment policy statement developed pursuant to
4295 certain provisions address specified issues; requiring
4296 the investment committee to recommend investment
4297 advisers to the board; requiring the board to select
4298 one of the recommended investment advisers to provide
4299 services to the association; requiring such advisers
4300 to be registered; prohibiting an investment adviser
4301 from being related to any board member, community
4302 management company, reserve study provider, or co
4303 owner of a unit with a board member or investment
4304 committee member; requiring investment advisers to
4305 comply with the prudent investor rule; requiring an
4306 adviser to act as a fiduciary to the association;
4307 providing that the investment and fiduciary standards
4308 required by the act take precedence over any
4309 conflicting law; requiring the investment committee to
4310 recommend a replacement adviser if the committee
4311 determines that an investment adviser is not meeting
4312 requirements; requiring the association to provide the
4313 investment adviser with specified financial
4314 information at least once each calendar year, or
4315 sooner if a substantial financial obligation of the
4316 association becomes known to the board; requiring the
4317 investment adviser to annually review such financial
4318 information and provide the association with a
4319 portfolio allocation model that is suitably structured
4320 and prudently designed to match projected annual
4321 reserve fund requirements and liability, assets, and
4322 liquidity requirements; requiring the investment
4323 adviser to prepare a funding projection for each
4324 reserve component, including any of the component’s
4325 redundancies; requiring that a specified minimum
4326 timeframe of projected reserves in cash or cash
4327 equivalents be available to the association;
4328 authorizing a portfolio managed by an investment
4329 adviser to contain any type of investment necessary to
4330 meet the objectives in the investment policy
4331 statement; providing exceptions; requiring that any
4332 funds invested by the investment adviser be held in
4333 third-party custodial accounts that are subject to
4334 insurance coverage by the Securities Investor
4335 Protection Corporation in an amount equal to or
4336 greater than the invested amount; authorizing the
4337 investment adviser to withdraw investment fees,
4338 expenses, and commissions from invested funds;
4339 requiring the investment adviser to annually provide
4340 the association with a written certification of
4341 compliance with certain provisions and provide the
4342 association with a list of certain stocks, securities,
4343 and other obligations; requiring the investment
4344 adviser to submit monthly, quarterly, and annual
4345 reports to the association, prepared in accordance
4346 with established financial industry standards;
4347 requiring that any principal, earnings, or interest
4348 managed be available to the association at no cost
4349 within a specified timeframe after the association’s
4350 written or electronic request; requiring that
4351 unallocated income earned on reserve fund investments
4352 be spent only on specified expenditures; amending s.
4353 719.106, F.S.; revising the deferred maintenance
4354 expense or replacement costs threshold that must be in
4355 reserve accounts; authorizing the board to pause
4356 contributions to its reserves or reduce reserve
4357 funding if a local building official determines the
4358 entire cooperative building is uninhabitable due to a
4359 natural emergency; authorizing any reserve account
4360 fund held by the association to be expended to make
4361 the cooperative building and its structures habitable,
4362 pursuant to the board’s determination; requiring the
4363 association to immediately resume contributing funds
4364 to its reserves once the local building official
4365 determines that the cooperative building is habitable;
4366 authorizing certain reserves be funded by regular
4367 assessments, special assessments, lines of credit, or
4368 loans under certain circumstances; authorizing a unit
4369 owner-controlled association to obtain a line of
4370 credit or a loan to fund capital expenses required by
4371 a milestone inspection or a structural integrity
4372 reserve study; requiring that such lines of credit or
4373 loans be approved by a majority vote of the total
4374 voting interests of the association; requiring that
4375 such lines of credit or loans be sufficient to fund
4376 the cumulative amount of any previously waived or
4377 unfunded portion of the reserve funding amount and
4378 most recent structural integrity reserve study;
4379 requiring that funding from such lines of credit or
4380 loans be immediately available for access by the board
4381 for a specified purpose; authorizing the board to
4382 temporarily pause reserve fund contributions or reduce
4383 the amount of reserve funding for a specified purpose
4384 for a budget adopted on or before a specified date if
4385 the association has completed a milestone inspection
4386 within a specified timeframe; requiring that such
4387 temporary pause or reduction be approved by a majority
4388 of the total voting interests of the association;
4389 providing applicability; requiring associations that
4390 have paused or reduced their reserve funding
4391 contributions to have a structural integrity reserve
4392 study performed before the continuation of reserve
4393 contributions for specified purposes; providing that a
4394 vote of the members is not required for the board to
4395 change the accounting method for reserves to specified
4396 accounting methods; requiring the division to annually
4397 adjust for inflation the minimum threshold amount for
4398 required reserves, based on specified criteria;
4399 requiring the division, by a specified date and
4400 annually thereafter, to conspicuously post on its
4401 website the inflation-adjusted minimum threshold
4402 amount for required reserves; requiring specified
4403 design professionals or contractors, rather than any
4404 person qualified to perform a structural integrity
4405 reserve study, to perform structural integrity reserve
4406 studies; requiring such design professionals or
4407 contracts who bid to perform a structural integrity
4408 reserve study to disclose in writing to the
4409 association their intent to bid on any services
4410 related to the maintenance, repair, or replacement
4411 that may be recommended by the structural integrity
4412 reserve study; prohibiting such professionals or
4413 contractors from having any interest in or being
4414 related to any person having any interest in the firm
4415 or entity providing the association’s structural
4416 integrity reserve study unless such relationship is
4417 disclosed in writing; defining the term “relative”;
4418 providing that a contract for services is voidable and
4419 terminates upon the association filing a written
4420 notice terminating such a contract if such
4421 professional or contractor fails to provide a written
4422 disclosure of such relationship with the firm
4423 conducting the structural integrity reserve study;
4424 providing that such professional or contractor may be
4425 subject to discipline for his or her failure to
4426 provide such written disclosure; requiring that a
4427 structural integrity reserve study include a
4428 recommendation for a reserve funding schedule based on
4429 specified criteria; authorizing the study to recommend
4430 other types of reserve funding schedules, provided
4431 each recommended schedule is sufficient to meet the
4432 association’s maintenance obligation; requiring that
4433 reserves not required for certain items be separately
4434 identified as such in the structural integrity reserve
4435 study; requiring the structural integrity reserve
4436 study to take into consideration the funding method or
4437 methods used by the association to fund its
4438 maintenance and reserve funding obligations through
4439 regular assessments, special assessments, lines of
4440 credit, or loans; requiring a structural integrity
4441 reserve study that has been performed before the
4442 approval of a special assessment or the securing of a
4443 line of credit or a loan to be updated to reflect
4444 certain information regarding the reserve funding
4445 schedule; authorizing a structural integrity reserve
4446 study to be updated to reflect changes in the useful
4447 life of the reserve items after such items are
4448 repaired or replaced, and the effect of such repair or
4449 replacement will have on the reserve funding schedule;
4450 requiring an association to obtain an updated
4451 structural integrity reserve study before adopting any
4452 budget in which the reserve funding from regular
4453 assessments, special assessments, lines of credit, or
4454 loans do not align with the funding plan of the most
4455 recent version of the structural integrity reserve
4456 study; authorizing an association to delay a required
4457 structural integrity reserve study for a specified
4458 timeframe if it has completed a milestone inspection
4459 or similar inspection, for a specified purpose;
4460 requiring an officer or a director of the association
4461 to sign an affidavit acknowledging receipt of the
4462 completed structural integrity reserve study;
4463 requiring the division to adopt by rule the form for
4464 the structural integrity reserve study in coordination
4465 with the Florida Building Commission; amending s.
4466 719.501, F.S.; requiring a cooperative association to
4467 create and maintain an online account with the
4468 division; requiring board members to maintain accurate
4469 contact information on file with the division;
4470 requiring the division to adopt rules; authorizing the
4471 division to require cooperative associations to
4472 provide information to the division no more than once
4473 per year; providing an exception; requiring the
4474 division to provide associations a specified timeframe
4475 to provide any required information; specifying the
4476 information the division may request; amending s.
4477 719.503, F.S.; revising the disclosures that must be
4478 included in a contract for the sale and resale of an
4479 interest in a cooperative; amending s. 914.21, F.S.;
4480 revising the definition of the term “official
4481 investigation”; providing appropriations; reenacting
4482 s. 468.436(2)(b), F.S., relating to disciplinary
4483 proceedings, to incorporate the amendment made to s.
4484 468.4335, F.S., in a reference thereto; reenacting s.
4485 721.13(3)(e), F.S., relating to management, to
4486 incorporate the amendment made to s. 718.111, F.S., in
4487 a reference thereto; reenacting ss. 718.504(7)(a) and
4488 (21)(c) and 718.618(1)(d), F.S., relating to
4489 prospectus or offering circulars and converter reserve
4490 accounts and warranties, respectively, to incorporate
4491 the amendment made to s. 718.112, F.S., in references
4492 thereto; reenacting s. 718.706(1) and (3), F.S.,
4493 relating to specific provisions pertaining to offering
4494 of units by bulk assignees or bulk buyers, to
4495 incorporate the amendments made to ss. 718.111,
4496 718.112, and 718.503, F.S., in references thereto;
4497 reenacting ss. 719.103(24) and 719.504(7)(a) and
4498 (20)(c), F.S., relating to definitions and prospectus
4499 or offering circulars, respectively, to incorporate
4500 the amendment made to s. 719.106, F.S., in references
4501 thereto; providing effective dates.