Florida Senate - 2025 COMMITTEE AMENDMENT
Bill No. CS for SB 1742
Ì660470ÅÎ660470
LEGISLATIVE ACTION
Senate . House
Comm: RCS .
04/15/2025 .
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The Appropriations Committee on Agriculture, Environment, and
General Government (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, partner, officer,
21 director, or trustee of, a community association management firm
22 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. Subsection (11) and present subsections (12) and
113 (13) of section 553.899, Florida Statutes, are amended,
114 paragraphs (e) and (f) are added to subsection (3) and a new
115 subsection (12) is added to that section, to read:
116 553.899 Mandatory structural inspections for condominium
117 and cooperative buildings.—
118 (3)
119 (e) On or before October 1, 2025, and on or before each
120 December 31 thereafter, the local enforcement agency responsible
121 for milestone inspections must provide the department, in an
122 electronic format determined by the department, information that
123 may include, but is not limited to:
124 1. The number of buildings required to have a milestone
125 inspection within the agency’s jurisdiction.
126 2. The number of buildings for which a phase one milestone
127 inspection has been completed.
128 3. The number of buildings granted an extension under
129 paragraph (3)(c).
130 4. The number of buildings required to have a phase two
131 milestone inspection.
132 5. The number of buildings for which a phase two milestone
133 inspection has been completed.
134 6. The number, type, and value of permits applied for to
135 complete repairs pursuant to a phase two milestone inspection.
136 7. A list of buildings deemed to be unsafe or uninhabitable
137 due to a milestone inspection.
138 8. The license number of the building code administrator
139 responsible for milestone inspections for the local enforcement
140 agency.
141 (f) Subject to appropriation, the department shall contract
142 with the University of Florida for the purpose of creating a
143 report that provides comprehensive data, evaluation, and
144 analysis on the milestone inspections performed throughout this
145 state during each calendar year or other time period approved by
146 the department. Every local enforcement agency responsible for
147 milestone inspections must provide the university with a copy of
148 any phase one or phase two milestone inspection report by the
149 date specified by the department in a manner prescribed by the
150 university. The university may request any additional
151 information from a local enforcement agency which the university
152 requires to complete this report. The university shall compile
153 the report, and the department shall transmit the report to the
154 Governor, the President of the Senate, and the Speaker of the
155 House of Representatives.
156 (11) A board of county commissioners or municipal governing
157 body shall may adopt an ordinance requiring that a condominium
158 or cooperative association and any other owner that is subject
159 to this section schedule or commence repairs for substantial
160 structural deterioration within a specified timeframe after the
161 local enforcement agency receives a phase two inspection report;
162 however, such repairs must be commenced within 365 days after
163 receiving such report. If an owner of the building fails to
164 submit proof to the local enforcement agency that repairs have
165 been scheduled or have commenced for substantial structural
166 deterioration identified in a phase two inspection report within
167 the required timeframe, the local enforcement agency must review
168 and determine if the building is unsafe for human occupancy.
169 (12) A licensed architect or engineer who bids to perform a
170 milestone inspection must disclose in writing to the association
171 his or her intent to bid on any services related to any
172 maintenance, repair, or replacement which may be recommended by
173 the milestone inspection. Any design professional as defined in
174 s. 558.002(7) or contractor licensed under chapter 489 who
175 submits a bid to the association for performing any services
176 recommended by the milestone inspection may not have an
177 interest, directly or indirectly, in the firm or entity
178 providing the milestone inspection or be a relative of any
179 person having a direct or indirect interest in such firm, unless
180 such relationship is disclosed to the association in writing. As
181 used in this section, the term “relative” means a relative
182 within the third degree of consanguinity by blood or marriage. A
183 contract for services is voidable and terminates upon the
184 association filing a written notice terminating the contract if
185 the design professional or licensed contractor failed to provide
186 the written disclosure of the relationship required under this
187 subsection. A design professional or licensed contractor may be
188 subject to discipline under the applicable practice act for his
189 or her profession for failure to provide the written disclosure
190 of the relationship required under this subsection.
191 (13)(12) By December 31, 2024, the Florida Building
192 Commission shall adopt rules pursuant to ss. 120.536(1) and
193 120.54 to establish a building safety program for the
194 implementation of this section within the Florida Building Code:
195 Existing Building. The building inspection program must, at
196 minimum, include inspection criteria, testing protocols,
197 standardized inspection and reporting forms that are adaptable
198 to an electronic format, and record maintenance requirements for
199 the local authority.
200 (14)(13) The Florida Building Commission shall consult with
201 the State Fire Marshal to provide recommendations to the
202 Legislature for the adoption of comprehensive structural and
203 life safety standards for maintaining and inspecting all types
204 of buildings and structures in this state that are three stories
205 or more in height. The commission shall provide a written report
206 of its recommendations to the Governor, the President of the
207 Senate, and the Speaker of the House of Representatives by
208 December 31, 2023.
209 Section 4. Present subsections (33) and (34) of section
210 718.103, Florida Statutes, are redesignated as subsections (34)
211 and (35), respectively, a new subsection (33) is added to that
212 section, and subsection (1) of that section is amended, to read:
213 718.103 Definitions.—As used in this chapter, the term:
214 (1) “Alternative funding method” means a method approved by
215 the division for funding the capital expenditures and deferred
216 maintenance obligations of the association for a
217 multicondominium association operating at least 25 condominiums
218 which may reasonably be expected to fully satisfy the
219 association’s reserve funding obligations by the, including:
220 (a) The allocation of funds in the annual operating budget
221 of a multicondominium; or
222 (b) Any other method defined by rule of the division which
223 may reasonably be expected to fully satisfy the association’s
224 reserve funding obligations or fund its capital expenditure and
225 deferred maintenance obligations.
226 (33) “Videoconference” means a real-time audio and video
227 based meeting between two or more people in different locations
228 using video-enabled and audio-enabled devices. The notice for
229 any meeting that will be conducted by videoconference must have
230 a hyperlink and call-in conference telephone number for unit
231 owners to attend the meeting and must have a physical location
232 where unit owners can also attend the meeting in person. All
233 meetings conducted by videoconference must be recorded and such
234 recording must be maintained as an official record of the
235 association.
236 Section 5. Paragraphs (a) and (g) of subsection (12) and
237 subsection (13) of section 718.111, Florida Statutes, are
238 amended, paragraphs (g), (h), and (i) are added to subsection
239 (3) of that section, and subsection (16) is added to that
240 section, to read:
241 718.111 The association.—
242 (3) POWER TO MANAGE CONDOMINIUM PROPERTY AND TO CONTRACT,
243 SUE, AND BE SUED; CONFLICT OF INTEREST.—
244 (g) If an association contracts with a community
245 association manager or a community association management firm,
246 the community association manager or community association
247 management firm must possess all applicable licenses required by
248 part VIII of chapter 468. All board members or officers of an
249 association that contracts with a community association manager
250 or a community association management firm have a duty to ensure
251 that the community association manager or community association
252 management firm is properly licensed before entering into a
253 contract.
254 (h) If a community association manager has his or her
255 license suspended or revoked during the term of a contract with
256 the association, the association may terminate the contract upon
257 delivery of a written notice to the community association
258 manager whose license has been revoked or suspended, effective
259 on the date the community association manager became unlicensed.
260 (i) If a community association management firm has its
261 license suspended or revoked during the term of a contract with
262 the association, the association has the right to terminate the
263 contract upon delivery of a written notice to the community
264 association management firm whose license has been revoked or
265 suspended, effective on the date the community association
266 management firm became unlicensed.
267 (12) OFFICIAL RECORDS.—
268 (a) From the inception of the association, the association
269 shall maintain each of the following items, if applicable, which
270 constitutes the official records of the association:
271 1. A copy of the plans, permits, warranties, and other
272 items provided by the developer under s. 718.301(4).
273 2. A copy photocopy of the recorded declaration of
274 condominium of each condominium operated by the association and
275 each amendment to each declaration.
276 3. A copy photocopy of the recorded bylaws of the
277 association and each amendment to the bylaws.
278 4. A certified copy of the articles of incorporation of the
279 association, or other documents creating the association, and
280 each amendment thereto.
281 5. A copy of the current rules of the association.
282 6. A book or books or electronic records that contain the
283 minutes of all meetings of the association, the board of
284 administration, any committee, and the unit owners, and a
285 recording of all such meetings that are conducted by
286 videoconference. If there are approved minutes for a meeting
287 held by video conference, recordings of meetings that are
288 conducted by videoconference must be maintained for at least 1
289 year after the date the video recording is posted as required
290 under paragraph (g).
291 7. A current roster of all unit owners and their mailing
292 addresses, unit identifications, voting certifications, and, if
293 known, telephone numbers. The association shall also maintain
294 the e-mail addresses and facsimile numbers of unit owners
295 consenting to receive notice by electronic transmission. In
296 accordance with sub-subparagraph (c)5.e., the e-mail addresses
297 and facsimile numbers are only accessible to unit owners if
298 consent to receive notice by electronic transmission is
299 provided, or if the unit owner has expressly indicated that such
300 personal information can be shared with other unit owners and
301 the unit owner has not provided the association with a request
302 to opt out of such dissemination with other unit owners. An
303 association must ensure that the e-mail addresses and facsimile
304 numbers are only used for the business operation of the
305 association and may not be sold or shared with outside third
306 parties. If such personal information is included in documents
307 that are released to third parties, other than unit owners, the
308 association must redact such personal information before the
309 document is disseminated. However, the association is not liable
310 for an inadvertent disclosure of the e-mail address or facsimile
311 number for receiving electronic transmission of notices unless
312 such disclosure was made with a knowing or intentional disregard
313 of the protected nature of such information.
314 8. All current insurance policies of the association and
315 condominiums operated by the association.
316 9. A current copy of any management agreement, lease, or
317 other contract to which the association is a party or under
318 which the association or the unit owners have an obligation or
319 responsibility.
320 10. Bills of sale or transfer for all property owned by the
321 association.
322 11. Accounting records for the association and separate
323 accounting records for each condominium that the association
324 operates. Any person who knowingly or intentionally defaces or
325 destroys such records, or who knowingly or intentionally fails
326 to create or maintain such records, with the intent of causing
327 harm to the association or one or more of its members, is
328 personally subject to a civil penalty pursuant to s.
329 718.501(1)(e). The accounting records must include, but are not
330 limited to:
331 a. Accurate, itemized, and detailed records of all receipts
332 and expenditures, including all bank statements and ledgers.
333 b. All invoices, transaction receipts, or deposit slips
334 that substantiate any receipt or expenditure of funds by the
335 association.
336 c. A current account and a monthly, bimonthly, or quarterly
337 statement of the account for each unit designating the name of
338 the unit owner, the due date and amount of each assessment, the
339 amount paid on the account, and the balance due.
340 d. All audits, reviews, accounting statements, structural
341 integrity reserve studies, and financial reports of the
342 association or condominium. Structural integrity reserve studies
343 must be maintained for at least 15 years after the study is
344 completed.
345 e. All contracts for work to be performed. Bids for work to
346 be performed are also considered official records and must be
347 maintained by the association for at least 1 year after receipt
348 of the bid.
349 12. Ballots, sign-in sheets, voting proxies, and all other
350 papers and electronic records relating to voting by unit owners,
351 which must be maintained for 1 year from the date of the
352 election, vote, or meeting to which the document relates,
353 notwithstanding paragraph (b).
354 13. All rental records if the association is acting as
355 agent for the rental of condominium units.
356 14. A copy of the current question and answer sheet as
357 described in s. 718.504.
358 15. A copy of the inspection reports described in ss.
359 553.899 and 718.301(4)(p) and any other inspection report
360 relating to a structural or life safety inspection of
361 condominium property. Such record must be maintained by the
362 association for 15 years after receipt of the report.
363 16. Bids for materials, equipment, or services.
364 17. All affirmative acknowledgments made pursuant to s.
365 718.121(4)(c).
366 18. A copy of all building permits.
367 19. A copy of all satisfactorily completed board member
368 educational certificates.
369 20. A copy of all affidavits required by this chapter.
370 21. A copy of all investment policy statements adopted
371 pursuant to paragraph (16)(c), and all financial statements
372 related to the association’s investment of funds under
373 subsection (16).
374 22.20. All other written records of the association not
375 specifically included in the foregoing which are related to the
376 operation of the association.
377 (g)1. By January 1, 2019, an association managing a
378 condominium with 150 or more units which does not contain
379 timeshare units shall post digital copies of the documents
380 specified in subparagraph 2. on its website or make such
381 documents available through an application that can be
382 downloaded on a mobile device. Unless a shorter period is
383 otherwise required, a document must be made available on the
384 association’s website or made available for download through an
385 application on a mobile device within 30 days after the
386 association receives or creates an official record specified in
387 subparagraph 2.
388 a. The association’s website or application must be:
389 (I) An independent website, application, or web portal
390 wholly owned and operated by the association; or
391 (II) A website, application, or web portal operated by a
392 third-party provider with whom the association owns, leases,
393 rents, or otherwise obtains the right to operate a web page,
394 subpage, web portal, collection of subpages or web portals, or
395 an application which is dedicated to the association’s
396 activities and on which required notices, records, and documents
397 may be posted or made available by the association.
398 b. The association’s website or application must be
399 accessible through the Internet and must contain a subpage, web
400 portal, or other protected electronic location that is
401 inaccessible to the general public and accessible only to unit
402 owners and employees of the association.
403 c. Upon a unit owner’s written request, the association
404 must provide the unit owner with a username and password and
405 access to the protected sections of the association’s website or
406 application which contain any notices, records, or documents
407 that must be electronically provided.
408 2. A current copy of the following documents must be posted
409 in digital format on the association’s website or application:
410 a. The recorded declaration of condominium of each
411 condominium operated by the association and each amendment to
412 each declaration.
413 b. The recorded bylaws of the association and each
414 amendment to the bylaws.
415 c. The articles of incorporation of the association, or
416 other documents creating the association, and each amendment to
417 the articles of incorporation or other documents. The copy
418 posted pursuant to this sub-subparagraph must be a copy of the
419 articles of incorporation filed with the Department of State.
420 d. The rules of the association.
421 e. The approved minutes of all board of administration
422 meetings over the preceding 12 months.
423 f. The video recording or a hyperlink to the video
424 recording for all meetings of the association, the board of
425 administration, any committee, and the unit owners which are
426 conducted by videoconference over the preceding 12 months.
427 g.e. A list of all executory contracts or documents to
428 which the association is a party or under which the association
429 or the unit owners have an obligation or responsibility and,
430 after bidding for the related materials, equipment, or services
431 has closed, a list of bids received by the association within
432 the past year. Summaries of bids for materials, equipment, or
433 services which exceed $500 must be maintained on the website or
434 application for 1 year. In lieu of summaries, complete copies of
435 the bids may be posted.
436 h.f. The annual budget required by s. 718.112(2)(f) and any
437 proposed budget to be considered at the annual meeting.
438 i.g. The financial report required by subsection (13) and
439 any monthly income or expense statement to be considered at a
440 meeting.
441 j.h. The certification of each director required by s.
442 718.112(2)(d)4.b.
443 k.i. All contracts or transactions between the association
444 and any director, officer, corporation, firm, or association
445 that is not an affiliated condominium association or any other
446 entity in which an association director is also a director or
447 officer and financially interested.
448 l.j. Any contract or document regarding a conflict of
449 interest or possible conflict of interest as provided in ss.
450 468.4335, 468.436(2)(b)6., and 718.3027(3).
451 m.k. The notice of any unit owner meeting and the agenda
452 for the meeting, as required by s. 718.112(2)(d)3., no later
453 than 14 days before the meeting. The notice must be posted in
454 plain view on the front page of the website or application, or
455 on a separate subpage of the website or application labeled
456 “Notices” which is conspicuously visible and linked from the
457 front page. The association must also post on its website or
458 application any document to be considered and voted on by the
459 owners during the meeting or any document listed on the agenda
460 at least 7 days before the meeting at which the document or the
461 information within the document will be considered.
462 n.l. Notice of any board meeting, the agenda, and any other
463 document required for the meeting as required by s.
464 718.112(2)(c), which must be posted no later than the date
465 required for notice under s. 718.112(2)(c).
466 o.m. The inspection reports described in ss. 553.899 and
467 718.301(4)(p) and any other inspection report relating to a
468 structural or life safety inspection of condominium property.
469 p.n. The association’s most recent structural integrity
470 reserve study, if applicable.
471 q.o. Copies of all building permits issued for ongoing or
472 planned construction.
473 r. A copy of all affidavits required by this chapter.
474 s. A copy of all investment policy statements adopted
475 pursuant to paragraph (16)(c), and all financial statements
476 related to the association’s investment of funds under
477 subsection (16).
478 3. The association shall ensure that the information and
479 records described in paragraph (c), which are not allowed to be
480 accessible to unit owners, are not posted on the association’s
481 website or application. If protected information or information
482 restricted from being accessible to unit owners is included in
483 documents that are required to be posted on the association’s
484 website or application, the association shall ensure the
485 information is redacted before posting the documents.
486 Notwithstanding the foregoing, the association or its agent is
487 not liable for disclosing information that is protected or
488 restricted under this paragraph unless such disclosure was made
489 with a knowing or intentional disregard of the protected or
490 restricted nature of such information.
491 4. The failure of the association to post information
492 required under subparagraph 2. is not in and of itself
493 sufficient to invalidate any action or decision of the
494 association’s board or its committees.
495 (13) FINANCIAL REPORTING.—Within 90 days after the end of
496 the fiscal year, or annually on a date provided in the bylaws,
497 the association shall prepare and complete, or contract for the
498 preparation and completion of, a financial report for the
499 preceding fiscal year. Within 21 days after the final financial
500 report is completed by the association or received from the
501 third party, but not later than 180 120 days after the end of
502 the fiscal year or other date as provided in the bylaws, the
503 association shall deliver to each unit owner by United States
504 mail or personal delivery at the mailing address, property
505 address, e-mail address, or facsimile number provided to fulfill
506 the association’s notice requirements, a copy of the most recent
507 financial report, or and a notice that a copy of the most recent
508 financial report will be, as requested by the owner, mailed, or
509 hand delivered, or electronically delivered via the Internet to
510 the unit owner, without charge, within 5 business days after
511 receipt of a written request from the unit owner. Evidence of
512 compliance with this delivery requirement must be made by an
513 affidavit executed by an officer or director of the association.
514 The division shall adopt rules setting forth uniform accounting
515 principles and standards to be used by all associations and
516 addressing the financial reporting requirements for
517 multicondominium associations. The rules must include, but not
518 be limited to, standards for presenting a summary of association
519 reserves, including a good faith estimate disclosing the annual
520 amount of reserve funds that would be necessary for the
521 association to fully fund reserves for each reserve item based
522 on the straight-line accounting method. This disclosure is not
523 applicable to reserves funded via the pooling method. In
524 adopting such rules, the division shall consider the number of
525 members and annual revenues of an association. Financial reports
526 shall be prepared as follows:
527 (a) An association that meets the criteria of this
528 paragraph shall prepare a complete set of financial statements
529 in accordance with generally accepted accounting principles. The
530 financial statements must be based upon the association’s total
531 annual revenues, as follows:
532 1. An association with total annual revenues of $150,000 or
533 more, but less than $300,000, shall prepare compiled financial
534 statements.
535 2. An association with total annual revenues of at least
536 $300,000, but less than $500,000, shall prepare reviewed
537 financial statements.
538 3. An association with total annual revenues of $500,000 or
539 more shall prepare audited financial statements.
540 (b)1. An association with total annual revenues of less
541 than $150,000 shall prepare a report of cash receipts and
542 expenditures.
543 2. A report of cash receipts and disbursements must
544 disclose the amount of receipts by accounts and receipt
545 classifications and the amount of expenses by accounts and
546 expense classifications, including, but not limited to, the
547 following, as applicable: costs for security, professional and
548 management fees and expenses, taxes, costs for recreation
549 facilities, expenses for refuse collection and utility services,
550 expenses for lawn care, costs for building maintenance and
551 repair, insurance costs, administration and salary expenses, and
552 reserves accumulated and expended for capital expenditures,
553 deferred maintenance, and any other category for which the
554 association maintains reserves.
555 (c) An association may prepare, without a meeting of or
556 approval by the unit owners:
557 1. Compiled, reviewed, or audited financial statements, if
558 the association is required to prepare a report of cash receipts
559 and expenditures;
560 2. Reviewed or audited financial statements, if the
561 association is required to prepare compiled financial
562 statements; or
563 3. Audited financial statements if the association is
564 required to prepare reviewed financial statements.
565 (d) If approved by a majority vote of all the voting
566 interests present at a properly called meeting of the
567 association, an association may prepare:
568 1. A report of cash receipts and expenditures in lieu of a
569 compiled, reviewed, or audited financial statement;
570 2. A report of cash receipts and expenditures or a compiled
571 financial statement in lieu of a reviewed or audited financial
572 statement; or
573 3. A report of cash receipts and expenditures, a compiled
574 financial statement, or a reviewed financial statement in lieu
575 of an audited financial statement.
576
577 Such meeting and approval must occur before the end of the
578 fiscal year and is effective only for the fiscal year in which
579 the vote is taken. An association may not prepare a financial
580 report pursuant to this paragraph for consecutive fiscal years.
581 If the developer has not turned over control of the association,
582 all unit owners, including the developer, may vote on issues
583 related to the preparation of the association’s financial
584 reports, from the date of incorporation of the association
585 through the end of the second fiscal year after the fiscal year
586 in which the certificate of a surveyor and mapper is recorded
587 pursuant to s. 718.104(4)(e) or an instrument that transfers
588 title to a unit in the condominium which is not accompanied by a
589 recorded assignment of developer rights in favor of the grantee
590 of such unit is recorded, whichever occurs first. Thereafter,
591 all unit owners except the developer may vote on such issues
592 until control is turned over to the association by the
593 developer. Any audit or review prepared under this section shall
594 be paid for by the developer if done before turnover of control
595 of the association.
596 (e) A unit owner may provide written notice to the division
597 of the association’s failure to mail or hand deliver him or her
598 a copy of the most recent financial report within 5 business
599 days after he or she submitted a written request to the
600 association for a copy of such report. If the division
601 determines that the association failed to mail or hand deliver a
602 copy of the most recent financial report to the unit owner, the
603 division shall provide written notice to the association that
604 the association must mail or hand deliver a copy of the most
605 recent financial report to the unit owner and the division
606 within 5 business days after it receives such notice from the
607 division. An association that fails to comply with the
608 division’s request may not waive the financial reporting
609 requirement provided in paragraph (d) for the fiscal year in
610 which the unit owner’s request was made and the following fiscal
611 year. A financial report received by the division pursuant to
612 this paragraph shall be maintained, and the division shall
613 provide a copy of such report to an association member upon his
614 or her request.
615 (16) INVESTMENT OF ASSOCIATION FUNDS.—
616 (a) A board shall, in fulfilling its duty to manage
617 operating and reserve funds of its association, use best efforts
618 to make prudent investment decisions that carefully consider
619 risk and return in an effort to maximize returns on invested
620 funds.
621 (b) An association, including a multicondominium
622 association, may invest reserve funds in one or any combination
623 of certificates of deposit or in depository accounts at a
624 community bank, savings bank, commercial bank, savings and loan
625 association, or credit union. Upon a majority vote of the voting
626 interests, an association may invest reserve funds in
627 investments other than certificates of deposit or depository
628 accounts at a community bank, savings bank, commercial bank,
629 savings and loan association, or credit union, provided the
630 association complies with paragraphs (c)-(g). Notwithstanding
631 any declaration, only funds identified as reserve funds may be
632 invested pursuant to paragraphs (c)-(g). Paragraphs (c)-(g) do
633 not apply to funds invested in one or any combination of
634 certificates of deposit or depository accounts at a community
635 bank, savings bank, commercial bank, savings and loan
636 association, or credit union.
637 (c) The board shall create an investment committee composed
638 of at least two board members and two-unit unit owners who are
639 not board members. The board shall also adopt rules for invested
640 funds, including, but not limited to, rules requiring periodic
641 reviews of any investment manager’s performance, the development
642 of an investment policy statement, and that all meetings of the
643 investment committee be recorded and made part of the official
644 records of the association. The investment policy statement
645 developed pursuant to this paragraph must, at a minimum, address
646 risk, liquidity, and benchmark measurements; authorized classes
647 of investments; authorized investment mixes; limitations on
648 authority relating to investment transactions; requirements for
649 projected reserve expenditures within, at minimum, the next 24
650 months to be held in cash or cash equivalents; projected
651 expenditures relating to a mandatory structural inspection
652 performed pursuant to s. 553.899; and protocols for proxy
653 response.
654 (d) The investment committee shall recommend investment
655 advisers to the board, and the board shall select one of the
656 recommended investment advisers to provide services to the
657 association. Such investment advisers must be registered or have
658 notice filed under s. 517.12. The selected investment adviser
659 and any representative or association of the investment adviser
660 may not be related by affinity or consanguinity to, or under
661 common ownership with, any board member, community management
662 company, reserve study provider, or co-owner of a unit with a
663 board member or investment committee member. The investment
664 adviser shall comply with the prudent investor rule in s.
665 518.11. The investment adviser shall act as a fiduciary to the
666 association in compliance with the standards set forth in the
667 Employee Retirement Income Security Act of 1974 at 29 U.S.C. s.
668 1104(a)(1)(A)-(C). In case of conflict with other laws
669 authorizing investments, the investment and fiduciary standards
670 set forth in this subsection must prevail. If at any time the
671 investment committee determines that an investment adviser does
672 not meet the requirements of this section, the investment
673 committee must recommend a replacement investment adviser to the
674 board.
675 (e) At least once each calendar year, or sooner if a
676 substantial financial obligation of the association becomes
677 known to the board, the association must provide the investment
678 adviser with the association’s investment policy statement, the
679 most recent reserve study report, the association’s structural
680 integrity report, and the financial reports prepared pursuant to
681 subsection (13). If there is no recent reserve study report, the
682 association must provide the investment adviser with a good
683 faith estimate disclosing the annual amount of reserve funds
684 necessary for the association to fund reserves fully for the
685 life of each reserve component and each component’s
686 redundancies. The investment adviser shall annually review these
687 documents and provide the association with a portfolio
688 allocation model that is suitably structured and prudently
689 designed to match projected annual reserve fund requirements and
690 liability, assets, and liquidity requirements. The investment
691 adviser shall prepare a funding projection for each reserve
692 component, including any of the component’s redundancies. The
693 association must have available at all times a minimum of 24
694 months of projected reserves in cash or cash equivalents.
695 (f) Portfolios managed by the investment adviser may
696 contain any type of investment necessary to meet the objectives
697 in the investment policy statement; however, portfolios may not
698 contain stocks, securities, or other obligations that the State
699 Board of Administration is prohibited from investing in under s.
700 215.471, s. 215.4725, or s. 215.473 or that state agencies are
701 prohibited from investing in under s. 215.472, as determined by
702 the investment adviser. Any funds invested by the investment
703 adviser must be held in third-party custodial accounts that are
704 subject to insurance coverage by the Securities Investor
705 Protection Corporation in an amount equal to or greater than the
706 invested amount. The investment adviser may withdraw investment
707 fees, expenses, and commissions from invested funds.
708 (g) The investment adviser shall:
709 1. Annually provide the association with a written
710 certification of compliance with this section and a list of
711 stocks, securities, and other obligations that are prohibited
712 from being in association portfolios under paragraph (f); and
713 2. Submit monthly, quarterly, and annual reports to the
714 association which are prepared in accordance with established
715 financial industry standards and in accordance with chapter 517.
716 (h) Any principal, earnings, or interest managed under this
717 subsection must be available at no cost or charge to the
718 association within 15 business days after delivery of the
719 association’s written or electronic request.
720 (i) Unallocated income earned on reserve fund investments
721 must be spent only on capital expenditures, planned maintenance,
722 structural repairs, or other items for which the reserve
723 accounts have been established. Any surplus of funds which
724 exceeds the amount required to maintain reasonably funded
725 reserves must be managed pursuant to s. 718.115.
726 Section 6. Paragraphs (b) through (g) of subsection (2) of
727 section 718.112, Florida Statutes, are amended to read:
728 718.112 Bylaws.—
729 (2) REQUIRED PROVISIONS.—The bylaws shall provide for the
730 following and, if they do not do so, shall be deemed to include
731 the following:
732 (b) Quorum; voting requirements; proxies.—
733 1. Unless a lower number is provided in the bylaws, the
734 percentage of voting interests required to constitute a quorum
735 at a meeting of the members is a majority of the voting
736 interests. Unless otherwise provided in this chapter or in the
737 declaration, articles of incorporation, or bylaws, and except as
738 provided in subparagraph (d)4., decisions shall be made by a
739 majority of the voting interests represented at a meeting at
740 which a quorum is present.
741 2. Except as specifically otherwise provided herein, unit
742 owners in a residential condominium may not vote by general
743 proxy, but may vote by limited proxies substantially conforming
744 to a limited proxy form adopted by the division. A voting
745 interest or consent right allocated to a unit owned by the
746 association may not be exercised or considered for any purpose,
747 whether for a quorum, an election, or otherwise. Limited proxies
748 and general proxies may be used to establish a quorum. Limited
749 proxies shall be used for votes taken to waive or reduce
750 reserves in accordance with subparagraph (f)2.; for votes taken
751 to waive the financial reporting requirements of s. 718.111(13);
752 for votes taken to amend the declaration pursuant to s. 718.110;
753 for votes taken to amend the articles of incorporation or bylaws
754 pursuant to this section; and for any other matter for which
755 this chapter requires or permits a vote of the unit owners.
756 Except as provided in paragraph (d), a proxy, limited or
757 general, may not be used in the election of board members in a
758 residential condominium. General proxies may be used for other
759 matters for which limited proxies are not required, and may be
760 used in voting for nonsubstantive changes to items for which a
761 limited proxy is required and given. Notwithstanding this
762 subparagraph, unit owners may vote in person at unit owner
763 meetings. This subparagraph does not limit the use of general
764 proxies or require the use of limited proxies for any agenda
765 item or election at any meeting of a timeshare condominium
766 association or a nonresidential condominium association.
767 3. A proxy given is effective only for the specific meeting
768 for which originally given and any lawfully adjourned meetings
769 thereof. A proxy is not valid longer than 90 days after the date
770 of the first meeting for which it was given. Each proxy is
771 revocable at any time at the pleasure of the unit owner
772 executing it.
773 4. A member of the board of administration or a committee
774 may submit in writing his or her agreement or disagreement with
775 any action taken at a meeting that the member did not attend.
776 This agreement or disagreement may not be used as a vote for or
777 against the action taken or to create a quorum.
778 5. A board meeting may be conducted in person or by
779 videoconference. A board or committee member’s participation in
780 a meeting via telephone, real-time videoconferencing, or similar
781 real-time electronic or video communication counts toward a
782 quorum, and such member may vote as if physically present. A
783 speaker must be used so that the conversation of such members
784 may be heard by the board or committee members attending in
785 person as well as by any unit owners present at a meeting. The
786 division shall adopt rules pursuant to ss. 120.536 and 120.54
787 governing the requirements for meetings.
788 (c) Board of administration meetings.—In a residential
789 condominium association of more than 10 units, the board of
790 administration shall meet at least once each quarter. At least
791 four times each year, the meeting agenda must include an
792 opportunity for members to ask questions of the board. Meetings
793 of the board of administration at which a quorum of the members
794 is present are open to all unit owners. Members of the board of
795 administration may use e-mail as a means of communication but
796 may not cast a vote on an association matter via e-mail. A unit
797 owner may tape record or videotape the meetings. The right to
798 attend such meetings includes the right to speak at such
799 meetings with reference to all designated agenda items and the
800 right to ask questions relating to reports on the status of
801 construction or repair projects, the status of revenues and
802 expenditures during the current fiscal year, and other issues
803 affecting the condominium. The division shall adopt reasonable
804 rules governing the tape recording and videotaping of the
805 meeting. The association may adopt written reasonable rules
806 governing the frequency, duration, and manner of unit owner
807 statements.
808 1. Adequate notice of all board meetings, which must
809 specifically identify all agenda items, must be posted
810 conspicuously on the condominium property at least 48 continuous
811 hours before the meeting except in an emergency. If the board
812 meeting is to be conducted via videoconference, the notice must
813 state that such meeting will be via videoconference and must
814 include a hyperlink and a conference telephone number for unit
815 owners to attend the meeting via videoconference, as well as the
816 address of the physical location where the unit owners can
817 attend the meeting in person. If the meeting is conducted via
818 videoconference, it must be recorded and such recording must be
819 maintained as an official record of the association. If 20
820 percent of the voting interests petition the board to address an
821 item of business, the board, within 60 days after receipt of the
822 petition, shall place the item on the agenda at its next regular
823 board meeting or at a special meeting called for that purpose.
824 An item not included on the notice may be taken up on an
825 emergency basis by a vote of at least a majority plus one of the
826 board members. Such emergency action must be noticed and
827 ratified at the next regular board meeting. Written notice of a
828 meeting at which a nonemergency special assessment or an
829 amendment to rules regarding unit use will be considered must be
830 mailed, delivered, or electronically transmitted to the unit
831 owners and posted conspicuously on the condominium property at
832 least 14 days before the meeting. Evidence of compliance with
833 this 14-day notice requirement must be made by an affidavit
834 executed by the person providing the notice and filed with the
835 official records of the association.
836 2. Upon notice to the unit owners, the board shall, by duly
837 adopted rule, designate a specific location on the condominium
838 property at which all notices of board meetings must be posted.
839 If there is no condominium property at which notices can be
840 posted, Notices shall be mailed, delivered, or electronically
841 transmitted to each unit owner who has consented to receive
842 electronic notifications at least 14 days before the meeting. In
843 lieu of or in addition to the physical posting of the notice on
844 the condominium property and mailing, delivering, or
845 electronically transmitting the notice, the association may, by
846 reasonable rule, adopt a procedure for conspicuously posting and
847 repeatedly broadcasting the notice and the agenda on a closed
848 circuit cable television system serving the condominium
849 association. However, if broadcast notice is used in lieu of a
850 notice physically posted on condominium property, the notice and
851 agenda must be broadcast at least four times every broadcast
852 hour of each day that a posted notice is otherwise required
853 under this section. If broadcast notice is provided, the notice
854 and agenda must be broadcast in a manner and for a sufficient
855 continuous length of time so as to allow an average reader to
856 observe the notice and read and comprehend the entire content of
857 the notice and the agenda. In addition to any of the authorized
858 means of providing notice of a meeting of the board, the
859 association may, by rule, adopt a procedure for conspicuously
860 posting the meeting notice and the agenda on a website serving
861 the condominium association for at least the minimum period of
862 time for which a notice of a meeting is also required to be
863 physically posted on the condominium property. Any rule adopted
864 shall, in addition to other matters, include a requirement that
865 the association send an electronic notice in the same manner as
866 a notice for a meeting of the members, which must include a
867 hyperlink to the website at which the notice is posted, to unit
868 owners whose e-mail addresses are included in the association’s
869 official records.
870 3. Notice of any meeting in which regular or special
871 assessments against unit owners are to be considered must
872 specifically state that assessments will be considered and
873 provide the estimated cost and description of the purposes for
874 such assessments. If an agenda item relates to the approval of a
875 contract for goods or services, a copy of the contract must be
876 provided with the notice and be made available for inspection
877 and copying upon a written request from a unit owner or made
878 available on the association’s website or through an application
879 that can be downloaded on a mobile device.
880 4. Meetings of a committee to take final action on behalf
881 of the board or make recommendations to the board regarding the
882 association budget are subject to this paragraph. Meetings of a
883 committee that does not take final action on behalf of the board
884 or make recommendations to the board regarding the association
885 budget are subject to this section, unless those meetings are
886 exempted from this section by the bylaws of the association.
887 5. Notwithstanding any other law, the requirement that
888 board meetings and committee meetings be open to the unit owners
889 does not apply to:
890 a. Meetings between the board or a committee and the
891 association’s attorney, with respect to proposed or pending
892 litigation, if the meeting is held for the purpose of seeking or
893 rendering legal advice; or
894 b. Board meetings held for the purpose of discussing
895 personnel matters.
896 (d) Unit owner meetings.—
897 1. An annual meeting of the unit owners must be held at the
898 location provided in the association bylaws and, if the bylaws
899 are silent as to the location, the meeting must be held within
900 15 miles 45 miles of the condominium property or within the same
901 county as the condominium property. However, such distance
902 requirement does not apply to an association governing a
903 timeshare condominium. If a unit owner meeting is conducted via
904 videoconference, a unit owner may vote electronically in the
905 manner provided in s. 718.128.
906 2. Unit owner meetings, including the annual meeting of the
907 unit owners, may be conducted in person or via videoconference.
908 If the annual meeting of the unit owners is conducted via
909 videoconference, a quorum of the members of the board of
910 administration must be physically present at the physical
911 location where unit owners can attend the meeting. The location
912 must be provided in the association bylaws and, if the bylaws
913 are silent as to the location, the meeting must be held within
914 10 miles of the condominium property. If the unit owner meeting
915 is conducted via videoconference, the videoconference must be
916 recorded and such recording must be maintained as an official
917 record of the association. The division shall adopt rules
918 pursuant to ss. 120.536 and 120.54 governing the requirements
919 for meetings.
920 3.2. Unless the bylaws provide otherwise, a vacancy on the
921 board caused by the expiration of a director’s term must be
922 filled by electing a new board member, and the election must be
923 by secret ballot. An election is not required if the number of
924 vacancies equals or exceeds the number of candidates. For
925 purposes of this paragraph, the term “candidate” means an
926 eligible person who has timely submitted the written notice, as
927 described in sub-subparagraph 4.a., of his or her intention to
928 become a candidate. Except in a timeshare or nonresidential
929 condominium, or if the staggered term of a board member does not
930 expire until a later annual meeting, or if all members’ terms
931 would otherwise expire but there are no candidates, the terms of
932 all board members expire at the annual meeting, and such members
933 may stand for reelection unless prohibited by the bylaws. Board
934 members may serve terms longer than 1 year if permitted by the
935 bylaws or articles of incorporation. A board member may not
936 serve more than 8 consecutive years unless approved by an
937 affirmative vote of unit owners representing two-thirds of all
938 votes cast in the election or unless there are not enough
939 eligible candidates to fill the vacancies on the board at the
940 time of the vacancy. Only board service that occurs on or after
941 July 1, 2018, may be used when calculating a board member’s term
942 limit. If the number of board members whose terms expire at the
943 annual meeting equals or exceeds the number of candidates, the
944 candidates become members of the board effective upon the
945 adjournment of the annual meeting. Unless the bylaws provide
946 otherwise, any remaining vacancies shall be filled by the
947 affirmative vote of the majority of the directors making up the
948 newly constituted board even if the directors constitute less
949 than a quorum or there is only one director. In a residential
950 condominium association of more than 10 units or in a
951 residential condominium association that does not include
952 timeshare units or timeshare interests, co-owners of a unit may
953 not serve as members of the board of directors at the same time
954 unless they own more than one unit or unless there are not
955 enough eligible candidates to fill the vacancies on the board at
956 the time of the vacancy. A unit owner in a residential
957 condominium desiring to be a candidate for board membership must
958 comply with sub-subparagraph 4.a. and must be eligible to be a
959 candidate to serve on the board of directors at the time of the
960 deadline for submitting a notice of intent to run in order to
961 have his or her name listed as a proper candidate on the ballot
962 or to serve on the board. A person who has been suspended or
963 removed by the division under this chapter, or who is delinquent
964 in the payment of any assessment due to the association, is not
965 eligible to be a candidate for board membership and may not be
966 listed on the ballot. For purposes of this paragraph, a person
967 is delinquent if a payment is not made by the due date as
968 specifically identified in the declaration of condominium,
969 bylaws, or articles of incorporation. If a due date is not
970 specifically identified in the declaration of condominium,
971 bylaws, or articles of incorporation, the due date is the first
972 day of the assessment period. A person who has been convicted of
973 any felony in this state or in a United States District or
974 Territorial Court, or who has been convicted of any offense in
975 another jurisdiction which would be considered a felony if
976 committed in this state, is not eligible for board membership
977 unless such felon’s civil rights have been restored for at least
978 5 years as of the date such person seeks election to the board.
979 The validity of an action by the board is not affected if it is
980 later determined that a board member is ineligible for board
981 membership due to having been convicted of a felony. This
982 subparagraph does not limit the term of a member of the board of
983 a nonresidential or timeshare condominium.
984 4.3. The bylaws must provide the method of calling meetings
985 of unit owners, including annual meetings. Written notice of an
986 annual meeting must include an agenda; be mailed, hand
987 delivered, or electronically transmitted to each unit owner at
988 least 14 days before the annual meeting; and be posted in a
989 conspicuous place on the condominium property or association
990 property at least 14 continuous days before the annual meeting.
991 Written notice of a meeting other than an annual meeting must
992 include an agenda; be mailed, hand delivered, or electronically
993 transmitted to each unit owner; and be posted in a conspicuous
994 place on the condominium property or association property within
995 the timeframe specified in the bylaws. If the bylaws do not
996 specify a timeframe for written notice of a meeting other than
997 an annual meeting, notice must be provided at least 14
998 continuous days before the meeting. Upon notice to the unit
999 owners, the board shall, by duly adopted rule, designate a
1000 specific location on the condominium property or association
1001 property at which all notices of unit owner meetings must be
1002 posted. This requirement does not apply if there is no
1003 condominium property for posting notices. In lieu of, or in In
1004 addition to, the physical posting of meeting notices, the
1005 association may, by reasonable rule, adopt a procedure for
1006 conspicuously posting and repeatedly broadcasting the notice and
1007 the agenda on a closed-circuit cable television system serving
1008 the condominium association. However, if broadcast notice is
1009 used in lieu of a notice posted physically on the condominium
1010 property, the notice and agenda must be broadcast at least four
1011 times every broadcast hour of each day that a posted notice is
1012 otherwise required under this section. If broadcast notice is
1013 provided, the notice and agenda must be broadcast in a manner
1014 and for a sufficient continuous length of time so as to allow an
1015 average reader to observe the notice and read and comprehend the
1016 entire content of the notice and the agenda. In addition to any
1017 of the authorized means of providing notice of a meeting of the
1018 board, the association may, by rule, adopt a procedure for
1019 conspicuously posting the meeting notice and the agenda on a
1020 website serving the condominium association for at least the
1021 minimum period of time for which a notice of a meeting is also
1022 required to be physically posted on the condominium property.
1023 Any rule adopted shall, in addition to other matters, include a
1024 requirement that the association send an electronic notice in
1025 the same manner as a notice for a meeting of the members, which
1026 must include a hyperlink to the website at which the notice is
1027 posted, to unit owners whose e-mail addresses are included in
1028 the association’s official records. Unless a unit owner waives
1029 in writing the right to receive notice of the annual meeting,
1030 such notice must be hand delivered, mailed, or electronically
1031 transmitted to each unit owner. Notice for meetings and notice
1032 for all other purposes must be mailed to each unit owner at the
1033 address last furnished to the association by the unit owner, or
1034 hand delivered to each unit owner. However, if a unit is owned
1035 by more than one person, the association must provide notice to
1036 the address that the developer identifies for that purpose and
1037 thereafter as one or more of the owners of the unit advise the
1038 association in writing, or if no address is given or the owners
1039 of the unit do not agree, to the address provided on the deed of
1040 record. An officer of the association, or the manager or other
1041 person providing notice of the association meeting, must provide
1042 an affidavit or United States Postal Service certificate of
1043 mailing, to be included in the official records of the
1044 association affirming that the notice was mailed or hand
1045 delivered in accordance with this provision.
1046 5.4. The members of the board of a residential condominium
1047 shall be elected by written ballot or voting machine. Proxies
1048 may not be used in electing the board in general elections or
1049 elections to fill vacancies caused by recall, resignation, or
1050 otherwise, unless otherwise provided in this chapter. This
1051 subparagraph does not apply to an association governing a
1052 timeshare condominium.
1053 a. At least 60 days before a scheduled election, the
1054 association shall mail, deliver, or electronically transmit, by
1055 separate association mailing or included in another association
1056 mailing, delivery, or transmission, including regularly
1057 published newsletters, to each unit owner entitled to a vote, a
1058 first notice of the date of the election. A unit owner or other
1059 eligible person desiring to be a candidate for the board must
1060 give written notice of his or her intent to be a candidate to
1061 the association at least 40 days before a scheduled election.
1062 Together with the written notice and agenda as set forth in
1063 subparagraph 3., the association shall mail, deliver, or
1064 electronically transmit a second notice of the election to all
1065 unit owners entitled to vote, together with a ballot that lists
1066 all candidates not less than 14 days or more than 34 days before
1067 the date of the election. Upon request of a candidate, an
1068 information sheet, no larger than 8 1/2 inches by 11 inches,
1069 which must be furnished by the candidate at least 35 days before
1070 the election, must be included with the mailing, delivery, or
1071 transmission of the ballot, with the costs of mailing, delivery,
1072 or electronic transmission and copying to be borne by the
1073 association. The association is not liable for the contents of
1074 the information sheets prepared by the candidates. In order to
1075 reduce costs, the association may print or duplicate the
1076 information sheets on both sides of the paper. The division
1077 shall by rule establish voting procedures consistent with this
1078 sub-subparagraph, including rules establishing procedures for
1079 giving notice by electronic transmission and rules providing for
1080 the secrecy of ballots. Elections shall be decided by a
1081 plurality of ballots cast. There is no quorum requirement;
1082 however, at least 20 percent of the eligible voters must cast a
1083 ballot in order to have a valid election. A unit owner may not
1084 authorize any other person to vote his or her ballot, and any
1085 ballots improperly cast are invalid. A unit owner who violates
1086 this provision may be fined by the association in accordance
1087 with s. 718.303. A unit owner who needs assistance in casting
1088 the ballot for the reasons stated in s. 101.051 may obtain such
1089 assistance. The regular election must occur on the date of the
1090 annual meeting. Notwithstanding this sub-subparagraph, an
1091 election is not required unless more candidates file notices of
1092 intent to run or are nominated than board vacancies exist.
1093 b. A director of a board of an association of a residential
1094 condominium shall:
1095 (I) Certify in writing to the secretary of the association
1096 that he or she has read the association’s declaration of
1097 condominium, articles of incorporation, bylaws, and current
1098 written policies; that he or she will work to uphold such
1099 documents and policies to the best of his or her ability; and
1100 that he or she will faithfully discharge his or her fiduciary
1101 responsibility to the association’s members.
1102 (II) Submit to the secretary of the association a
1103 certificate of having satisfactorily completed the educational
1104 curriculum administered by the division or a division-approved
1105 condominium education provider. The educational curriculum must
1106 be at least 4 hours long and include instruction on milestone
1107 inspections, structural integrity reserve studies, elections,
1108 recordkeeping, financial literacy and transparency, levying of
1109 fines, and notice and meeting requirements.
1110
1111 Each newly elected or appointed director must submit to the
1112 secretary of the association the written certification and
1113 educational certificate within 1 year before being elected or
1114 appointed or 90 days after the date of election or appointment.
1115 A director of an association of a residential condominium who
1116 was elected or appointed before July 1, 2024, must comply with
1117 the written certification and educational certificate
1118 requirements in this sub-subparagraph by June 30, 2025. The
1119 written certification and educational certificate is valid for 7
1120 years after the date of issuance and does not have to be
1121 resubmitted as long as the director serves on the board without
1122 interruption during the 7-year period. A director who is
1123 appointed by the developer may satisfy the educational
1124 certificate requirement in sub-sub-subparagraph (II) for any
1125 subsequent appointment to a board by a developer within 7 years
1126 after the date of issuance of the most recent educational
1127 certificate, including any interruption of service on a board or
1128 appointment to a board in another association within that 7-year
1129 period. One year after submission of the most recent written
1130 certification and educational certificate, and annually
1131 thereafter, a director of an association of a residential
1132 condominium must submit to the secretary of the association a
1133 certificate of having satisfactorily completed at least 1 hour
1134 of continuing education administered by the division, or a
1135 division-approved condominium education provider, relating to
1136 any recent changes to this chapter and the related
1137 administrative rules during the past year. A director of an
1138 association of a residential condominium who fails to timely
1139 file the written certification and educational certificate is
1140 suspended from service on the board until he or she complies
1141 with this sub-subparagraph. The board may temporarily fill the
1142 vacancy during the period of suspension. The secretary shall
1143 cause the association to retain a director’s written
1144 certification and educational certificate for inspection by the
1145 members for 7 years after a director’s election or the duration
1146 of the director’s uninterrupted tenure, whichever is longer.
1147 Failure to have such written certification and educational
1148 certificate on file does not affect the validity of any board
1149 action.
1150 c. Any challenge to the election process must be commenced
1151 within 60 days after the election results are announced.
1152 6.5. Any approval by unit owners called for by this chapter
1153 or the applicable declaration or bylaws, including, but not
1154 limited to, the approval requirement in s. 718.111(8), must be
1155 made at a duly noticed meeting of unit owners and is subject to
1156 all requirements of this chapter or the applicable condominium
1157 documents relating to unit owner decisionmaking, except that
1158 unit owners may take action by written agreement, without
1159 meetings, on matters for which action by written agreement
1160 without meetings is expressly allowed by the applicable bylaws
1161 or declaration or any law that provides for such action.
1162 7.6. Unit owners may waive notice of specific meetings if
1163 allowed by the applicable bylaws or declaration or any law.
1164 Notice of meetings of the board of administration; unit owner
1165 meetings, except unit owner meetings called to recall board
1166 members under paragraph (l); and committee meetings may be given
1167 by electronic transmission to unit owners who consent to receive
1168 notice by electronic transmission. A unit owner who consents to
1169 receiving notices by electronic transmission is solely
1170 responsible for removing or bypassing filters that block receipt
1171 of mass e-mails sent to members on behalf of the association in
1172 the course of giving electronic notices.
1173 8.7. Unit owners have the right to participate in meetings
1174 of unit owners with reference to all designated agenda items.
1175 However, the association may adopt reasonable rules governing
1176 the frequency, duration, and manner of unit owner participation.
1177 9.8. A unit owner may tape record or videotape a meeting of
1178 the unit owners subject to reasonable rules adopted by the
1179 division.
1180 10.9. Unless otherwise provided in the bylaws, any vacancy
1181 occurring on the board before the expiration of a term may be
1182 filled by the affirmative vote of the majority of the remaining
1183 directors, even if the remaining directors constitute less than
1184 a quorum, or by the sole remaining director. In the alternative,
1185 a board may hold an election to fill the vacancy, in which case
1186 the election procedures must conform to sub-subparagraph 4.a.
1187 unless the association governs 10 units or fewer and has opted
1188 out of the statutory election process, in which case the bylaws
1189 of the association control. Unless otherwise provided in the
1190 bylaws, a board member appointed or elected under this section
1191 shall fill the vacancy for the unexpired term of the seat being
1192 filled. Filling vacancies created by recall is governed by
1193 paragraph (l) and rules adopted by the division.
1194 11.10. This chapter does not limit the use of general or
1195 limited proxies, require the use of general or limited proxies,
1196 or require the use of a written ballot or voting machine for any
1197 agenda item or election at any meeting of a timeshare
1198 condominium association or nonresidential condominium
1199 association.
1200
1201 Notwithstanding subparagraph (b)2. and sub-subparagraph 4.a., an
1202 association of 10 or fewer units may, by affirmative vote of a
1203 majority of the total voting interests, provide for different
1204 voting and election procedures in its bylaws, which may be by a
1205 proxy specifically delineating the different voting and election
1206 procedures. The different voting and election procedures may
1207 provide for elections to be conducted by limited or general
1208 proxy.
1209 (e) Budget meeting.—
1210 1. Any meeting at which a proposed annual budget of an
1211 association will be considered by the board or unit owners shall
1212 be open to all unit owners. A meeting of the board or unit
1213 owners at which a proposed annual association budget will be
1214 considered may be conducted by videoconference. The division
1215 shall adopt rules pursuant to ss. 120.536 and 120.54 governing
1216 the requirements for such meetings. A sound transmitting device
1217 must be used so that the conversation of such members may be
1218 heard by the board or committee members attending in person, as
1219 well as any unit owners present at the meeting. At least 14 days
1220 before prior to such a meeting, the board shall hand deliver to
1221 each unit owner, mail to each unit owner at the address last
1222 furnished to the association by the unit owner, or
1223 electronically transmit to the location furnished by the unit
1224 owner for that purpose a notice of such meeting and a copy of
1225 the proposed annual budget. An officer or manager of the
1226 association, or other person providing notice of such meeting,
1227 shall execute an affidavit evidencing compliance with such
1228 notice requirement, and such affidavit shall be filed among the
1229 official records of the association.
1230 2.a. If a board proposes adopts in any fiscal year an
1231 annual budget which requires assessments against unit owners
1232 which exceed 115 percent of assessments for the preceding fiscal
1233 year, the board shall simultaneously propose a substitute budget
1234 that does not include any discretionary expenditures that are
1235 not required to be in the budget. The substitute budget must be
1236 proposed at the budget meeting before the adoption of the annual
1237 budget conduct a special meeting of the unit owners to consider
1238 a substitute budget if the board receives, within 21 days after
1239 adoption of the annual budget, a written request for a special
1240 meeting from at least 10 percent of all voting interests. The
1241 special meeting shall be conducted within 60 days after adoption
1242 of the annual budget. At least 14 days before such budget
1243 meeting in which a substitute budget will be proposed prior to
1244 such special meeting, the board shall hand deliver to each unit
1245 owner, or mail to each unit owner at the address last furnished
1246 to the association, a notice of the meeting. An officer or
1247 manager of the association, or other person providing notice of
1248 such meeting shall execute an affidavit evidencing compliance
1249 with this notice requirement, and such affidavit shall be filed
1250 among the official records of the association. Unit owners must
1251 may consider and may adopt a substitute budget at the special
1252 meeting. A substitute budget is adopted if approved by a
1253 majority of all voting interests unless the bylaws require
1254 adoption by a greater percentage of voting interests. If there
1255 is not a quorum at the special meeting or a substitute budget is
1256 not adopted, the annual budget previously initially proposed
1257 adopted by the board may be adopted shall take effect as
1258 scheduled.
1259 b. Any determination of whether assessments exceed 115
1260 percent of assessments for the prior fiscal year shall exclude
1261 any authorized provision for required reasonable reserves for
1262 repair or replacement of the condominium property, anticipated
1263 expenses of the association which the board does not expect to
1264 be incurred on a regular or annual basis for the repair,
1265 maintenance, or replacement of the items listed in paragraph
1266 (g), and insurance premiums, or assessments for betterments to
1267 the condominium property.
1268 c. If the developer controls the board, assessments may
1269 shall not exceed 115 percent of assessments for the prior fiscal
1270 year unless approved by a majority of all voting interests.
1271 (f) Annual budget.—
1272 1. The proposed annual budget of estimated revenues and
1273 expenses must be detailed and must show the amounts budgeted by
1274 accounts and expense classifications, including, at a minimum,
1275 any applicable expenses listed in s. 718.504(21). The board
1276 shall adopt the annual budget at least 14 days before the start
1277 of the association’s fiscal year. In the event that the board
1278 fails to timely adopt the annual budget a second time, it is
1279 deemed a minor violation and the prior year’s budget shall
1280 continue in effect until a new budget is adopted. A
1281 multicondominium association must adopt a separate budget of
1282 common expenses for each condominium the association operates
1283 and must adopt a separate budget of common expenses for the
1284 association. In addition, if the association maintains limited
1285 common elements with the cost to be shared only by those
1286 entitled to use the limited common elements as provided for in
1287 s. 718.113(1), the budget or a schedule attached to it must show
1288 the amount budgeted for this maintenance. If, after turnover of
1289 control of the association to the unit owners, any of the
1290 expenses listed in s. 718.504(21) are not applicable, they do
1291 not need to be listed.
1292 2.a. In addition to annual operating expenses, the budget
1293 must include reserve accounts for capital expenditures and
1294 deferred maintenance. These accounts must include, but are not
1295 limited to, roof replacement, building painting, and pavement
1296 resurfacing, regardless of the amount of deferred maintenance
1297 expense or replacement cost, and any other item that has a
1298 deferred maintenance expense or replacement cost that exceeds
1299 $25,000 $10,000. The amount to be reserved must be computed
1300 using a formula based upon estimated remaining useful life and
1301 estimated replacement cost or deferred maintenance expense of
1302 the reserve item. In a budget adopted by an association that is
1303 required to obtain a structural integrity reserve study,
1304 reserves must be maintained for the items identified in
1305 paragraph (g) for which the association is responsible pursuant
1306 to the declaration of condominium, and the reserve amount for
1307 such items must be based on the findings and recommendations of
1308 the association’s most recent structural integrity reserve
1309 study. If an association votes to terminate the condominium in
1310 accordance with s. 718.117, the members may vote to waive the
1311 maintenance of reserves recommended by the association’s most
1312 recent structural integrity reserve study. With respect to items
1313 for which an estimate of useful life is not readily
1314 ascertainable or with an estimated remaining useful life of
1315 greater than 25 years, an association is not required to reserve
1316 replacement costs for such items, but an association must
1317 reserve the amount of deferred maintenance expense, if any,
1318 which is recommended by the structural integrity reserve study
1319 for such items. The association may adjust replacement reserve
1320 assessments annually to take into account an inflation
1321 adjustment and any changes in estimates or extension of the
1322 useful life of a reserve item caused by deferred maintenance.
1323 b. The members of a unit-owner-controlled association may
1324 determine, by a majority vote of the total voting interests of
1325 the association, to provide no reserves or less reserves than
1326 required by this subsection. For a budget adopted on or after
1327 December 31, 2024, the members of a unit-owner-controlled
1328 association that must obtain a structural integrity reserve
1329 study may not determine to provide no reserves or less reserves
1330 than required by this subsection for items listed in paragraph
1331 (g), except that members of an association operating a
1332 multicondominium may determine to provide no reserves or less
1333 reserves than required by this subsection if an alternative
1334 funding method is used by the association has been approved by
1335 the division.
1336 c.(I) Reserves for the items listed in paragraph (g) may be
1337 funded by regular assessments, special assessments, lines of
1338 credit, or loans.
1339 (II) A unit-owner-controlled association that must have a
1340 structural reserve study may secure a line of credit or a loan
1341 to fund capital expenses required by a milestone inspection
1342 under s. 553.899 or a structural integrity reserve study. A line
1343 of credit or a loan under this subparagraph requires the
1344 approval of a majority vote of the total voting interests of the
1345 association. The line of credit or loan must be sufficient to
1346 fund the cumulative amount of any previously waived or unfunded
1347 portions of the reserve funding amount required by this
1348 paragraph and the most recent structural integrity reserve
1349 study. Funding from the line of credit or loan must be
1350 immediately available for access by the board to fund required
1351 repair, maintenance, or replacement expenses without further
1352 approval by the members of the association. A line of credit or
1353 a loan secured under this sub-subparagraph must be included in
1354 the financial report required under s. 718.111(13).
1355 d. If the local building official, as defined in s.
1356 468.603, determines that the entire condominium building is
1357 uninhabitable due to a natural emergency, as defined in s.
1358 252.34, the board, upon the approval of a majority of its
1359 members, may pause the contribution to its reserves or reduce
1360 reserve funding until the local building official determines
1361 that the condominium building is habitable. Any reserve account
1362 funds held by the association may be expended, pursuant to the
1363 board’s determination, to make the condominium building and its
1364 structures habitable. Upon the determination by the local
1365 building official that the condominium building is habitable,
1366 the association must immediately resume contributing funds to
1367 its reserves.
1368 e. For a budget adopted on or before December 31, 2028, if
1369 the association has completed a milestone inspection pursuant to
1370 s. 553.899 within the previous 2 calendar years, the board, upon
1371 the approval of a majority of the total voting interests of the
1372 association, may temporarily pause, for a period of no more than
1373 2 consecutive annual budgets, reserve fund contributions or
1374 reduce the amount of reserve funding for the purpose of funding
1375 repairs recommended by the milestone inspection. This sub
1376 subparagraph does not apply to a developer-controlled
1377 association and an association in which the non-developer unit
1378 owners have been in control for less than 1 year. An association
1379 that has paused reserve contributions under this subparagraph
1380 must have a structural integrity reserve study performed before
1381 the continuation of reserve contributions in order to determine
1382 the association’s reserve funding needs and to recommend a
1383 reserve funding plan.
1384 f.b. Before turnover of control of an association by a
1385 developer to unit owners other than a developer under s.
1386 718.301, the developer-controlled association may not vote to
1387 waive the reserves or reduce funding of the reserves. If a
1388 meeting of the unit owners has been called to determine whether
1389 to waive or reduce the funding of reserves and no such result is
1390 achieved or a quorum is not attained, the reserves included in
1391 the budget shall go into effect. After the turnover, the
1392 developer may vote its voting interest to waive or reduce the
1393 funding of reserves.
1394 3. Reserve funds and any interest accruing thereon shall
1395 remain in the reserve account or accounts, and may be used only
1396 for authorized reserve expenditures unless their use for other
1397 purposes is approved in advance by a majority vote of all the
1398 total voting interests of the association. Before turnover of
1399 control of an association by a developer to unit owners other
1400 than the developer pursuant to s. 718.301, the developer
1401 controlled association may not vote to use reserves for purposes
1402 other than those for which they were intended. For a budget
1403 adopted on or after December 31, 2024, members of a unit-owner
1404 controlled association that must obtain a structural integrity
1405 reserve study may not vote to use reserve funds, or any interest
1406 accruing thereon, for any other purpose other than the
1407 replacement or deferred maintenance costs of the components
1408 listed in paragraph (g). A vote of the members is not required
1409 for the board to change the accounting method for reserves to a
1410 pooling accounting method or a straight-line accounting method.
1411 4. The only voting interests that are eligible to vote on
1412 questions that involve waiving or reducing the funding of
1413 reserves, or using existing reserve funds for purposes other
1414 than purposes for which the reserves were intended, are the
1415 voting interests of the units subject to assessment to fund the
1416 reserves in question. Proxy questions relating to waiving or
1417 reducing the funding of reserves or using existing reserve funds
1418 for purposes other than purposes for which the reserves were
1419 intended must contain the following statement in capitalized,
1420 bold letters in a font size larger than any other used on the
1421 face of the proxy ballot: WAIVING OF RESERVES, IN WHOLE OR IN
1422 PART, OR ALLOWING ALTERNATIVE USES OF EXISTING RESERVES MAY
1423 RESULT IN UNIT OWNER LIABILITY FOR PAYMENT OF UNANTICIPATED
1424 SPECIAL ASSESSMENTS REGARDING THOSE ITEMS.
1425 (g) Structural integrity reserve study.—
1426 1. A residential condominium association must have a
1427 structural integrity reserve study completed at least every 10
1428 years after the condominium’s creation for each building on the
1429 condominium property that is three stories or higher in height,
1430 as determined by the Florida Building Code, which includes, at a
1431 minimum, a study of the following items as related to the
1432 structural integrity and safety of the building:
1433 a. Roof.
1434 b. Structure, including load-bearing walls and other
1435 primary structural members and primary structural systems as
1436 those terms are defined in s. 627.706.
1437 c. Fireproofing and fire protection systems.
1438 d. Plumbing.
1439 e. Electrical systems.
1440 f. Waterproofing and exterior painting.
1441 g. Windows and exterior doors.
1442 h. Any other item that has a deferred maintenance expense
1443 or replacement cost that exceeds $25,000 $10,000 and the failure
1444 to replace or maintain such item negatively affects the items
1445 listed in sub-subparagraphs a.-g., as determined by the visual
1446 inspection portion of the structural integrity reserve study.
1447 2. A structural integrity reserve study is based on a
1448 visual inspection of the condominium property.
1449 3.a. A structural integrity reserve study may be performed
1450 by any person qualified to perform such study. However, the
1451 visual inspection portion of the structural integrity reserve
1452 study must be performed or verified by an engineer licensed
1453 under chapter 471, an architect licensed under chapter 481, or a
1454 person certified as a reserve specialist or professional reserve
1455 analyst by the Community Associations Institute or the
1456 Association of Professional Reserve Analysts.
1457 b. Any design professional as defined in s. 558.002 or any
1458 contractor licensed under chapter 489 who bids to perform a
1459 structural integrity reserve study must disclose in writing to
1460 the association his or her intent to bid on any services related
1461 to any maintenance, repair, or replacement that may be
1462 recommended by the structural integrity reserve study. Any
1463 design professional as defined in s. 558.002 or contractor
1464 licensed under chapter 489 who submits a bid to the association
1465 for performing any services recommended by the structural
1466 integrity reserve study may not have an interest, directly or
1467 indirectly, in the firm or entity providing the association’s
1468 structural integrity reserve study or be a relative of any
1469 person having a direct or indirect interest in such firm, unless
1470 such relationship is disclosed to the association in writing. As
1471 used in this section, the term “relative” means a relative
1472 within the third degree of consanguinity by blood or marriage. A
1473 contract for services is voidable and terminates upon the
1474 association filing a written notice terminating the contract if
1475 the design professional or licensed contractor failed to provide
1476 the written disclosure of the interests or relationships
1477 required under this paragraph. A design professional or licensed
1478 contractor may be subject to discipline under the applicable
1479 practice act for his or her profession for failure to provide
1480 the written disclosure of the interests or relationships
1481 required under this paragraph.
1482 4.a.3. At a minimum, a structural integrity reserve study
1483 must identify each item of the condominium property being
1484 visually inspected, state the estimated remaining useful life
1485 and the estimated replacement cost or deferred maintenance
1486 expense of each item of the condominium property being visually
1487 inspected, and provide a reserve funding plan or schedule with a
1488 recommended annual reserve amount that achieves the estimated
1489 replacement cost or deferred maintenance expense of each item of
1490 condominium property being visually inspected by the end of the
1491 estimated remaining useful life of the item. At a minimum, the
1492 structural integrity reserve study must include a recommendation
1493 for a reserve funding schedule based on a baseline funding plan
1494 that provides a reserve funding goal in which the reserve
1495 funding for each budget year is sufficient to maintain the
1496 reserve cash balance above zero. The study may recommend other
1497 types of reserve funding schedules, provided that each
1498 recommended schedule is sufficient to meet the association’s
1499 maintenance obligation.
1500 b. The structural integrity reserve study may recommend
1501 that reserves do not need to be maintained for any item for
1502 which an estimate of useful life and an estimate of replacement
1503 cost cannot be determined, or the study may recommend a deferred
1504 maintenance expense amount for such item. The structural
1505 integrity reserve study may recommend that reserves for
1506 replacement costs do not need to be maintained for any item with
1507 an estimated remaining useful life of greater than 25 years, but
1508 the study may recommend a deferred maintenance expense amount
1509 for such item. If the structural integrity reserve study
1510 recommends reserves for any item for which reserves are not
1511 required under this paragraph, the amount of the recommended
1512 reserves for such item must be separately identified in the
1513 structural integrity reserve study as an item for which reserves
1514 are not required under this paragraph.
1515 c. The structural integrity reserve study must take into
1516 consideration the funding method or methods used by the
1517 association to fund its maintenance and reserve funding
1518 obligations through regular assessments, special assessments,
1519 lines of credit, or loans. If the structural integrity reserve
1520 study is performed before the association has approved a special
1521 assessment or secured a line of credit or a loan, the structural
1522 integrity reserve study must be updated to reflect the funding
1523 method selected by the association and its effect on the reserve
1524 funding schedule, including any anticipated change in the amount
1525 of regular assessments. The structural integrity reserve study
1526 may be updated to reflect any changes to the useful life of the
1527 reserve items after such items are repaired or replaced, and the
1528 effect such repair or replacement will have on the reserve
1529 funding schedule. The association must obtain an updated
1530 structural integrity reserve study before adopting any budget in
1531 which the reserve funding from regular assessments, special
1532 assessments, lines of credit, or loans do not align with the
1533 funding plan from the most recent version of the structural
1534 integrity reserve study.
1535 5.4. This paragraph does not apply to buildings less than
1536 three stories in height; single-family, two-family, or three
1537 family dwellings with three or fewer habitable stories above
1538 ground; any portion or component of a building that has not been
1539 submitted to the condominium form of ownership; or any portion
1540 or component of a building that is maintained by a party other
1541 than the association.
1542 6.5. Before a developer turns over control of an
1543 association to unit owners other than the developer, the
1544 developer must have a turnover inspection report in compliance
1545 with s. 718.301(4)(p) and (q) for each building on the
1546 condominium property that is three stories or higher in height.
1547 7.6. Associations existing on or before July 1, 2022, which
1548 are controlled by unit owners other than the developer, must
1549 have a structural integrity reserve study completed by December
1550 31, 2025 2024, for each building on the condominium property
1551 that is three stories or higher in height. An association that
1552 is required to complete a milestone inspection in accordance
1553 with s. 553.899 on or before December 31, 2026, may complete the
1554 structural integrity reserve study simultaneously with the
1555 milestone inspection. In no event may the structural integrity
1556 reserve study be completed after December 31, 2026.
1557 8.7. If the milestone inspection required by s. 553.899, or
1558 an inspection completed for a similar local requirement, was
1559 performed within the past 5 years and meets the requirements of
1560 this paragraph, such inspection may be used in place of the
1561 visual inspection portion of the structural integrity reserve
1562 study.
1563 9. If the association completes a milestone inspection
1564 required by s. 553.899, or an inspection completed for a similar
1565 local requirement, the association may delay performance of a
1566 required structural integrity reserve study for no more than the
1567 2 consecutive budget years immediately following the milestone
1568 inspection in order to allow the association to focus its
1569 financial resources on completing the repair and maintenance
1570 recommendations of the milestone inspection.
1571 10.8. If the officers or directors of an association
1572 willfully and knowingly fail to complete a structural integrity
1573 reserve study pursuant to this paragraph, such failure is a
1574 breach of an officer’s and director’s fiduciary relationship to
1575 the unit owners under s. 718.111(1). An officer or director of
1576 an association must sign an affidavit acknowledging receipt of
1577 the completed structural integrity reserve study.
1578 11.9. Within 45 days after receiving the structural
1579 integrity reserve study, the association must distribute a copy
1580 of the study to each unit owner or deliver to each unit owner a
1581 notice that the completed study is available for inspection and
1582 copying upon a written request. Distribution of a copy of the
1583 study or notice must be made by United States mail or personal
1584 delivery to the mailing address, property address, or any other
1585 address of the owner provided to fulfill the association’s
1586 notice requirements under this chapter, or by electronic
1587 transmission to the e-mail address or facsimile number provided
1588 to fulfill the association’s notice requirements to unit owners
1589 who previously consented to receive notice by electronic
1590 transmission.
1591 12.10. Within 45 days after receiving the structural
1592 integrity reserve study, the association must provide the
1593 division with a statement indicating that the study was
1594 completed and that the association provided or made available
1595 such study to each unit owner in accordance with this section.
1596 The statement must be provided to the division in the manner
1597 established by the division using a form posted on the
1598 division’s website.
1599 13. The division shall adopt by rule the form for the
1600 structural integrity reserve study in coordination with the
1601 Florida Building Commission.
1602 Section 7. Subsections (1) and (3) of section 718.501,
1603 Florida Statutes, are amended, and paragraph (d) is added to
1604 subsection (2) of that section, to read:
1605 718.501 Authority, responsibility, and duties of Division
1606 of Florida Condominiums, Timeshares, and Mobile Homes.—
1607 (1) The division may enforce and ensure compliance with
1608 this chapter and rules relating to the development,
1609 construction, sale, lease, ownership, operation, and management
1610 of residential condominium units and complaints related to the
1611 procedural completion of milestone inspections under s. 553.899.
1612 In performing its duties, the division has complete jurisdiction
1613 to investigate complaints and enforce compliance with respect to
1614 associations that are still under developer control or the
1615 control of a bulk assignee or bulk buyer pursuant to part VII of
1616 this chapter and complaints against developers, bulk assignees,
1617 or bulk buyers involving improper turnover or failure to
1618 turnover, pursuant to s. 718.301. However, after turnover has
1619 occurred, the division has jurisdiction to review records and
1620 investigate complaints related only to:
1621 (a)1. Procedural aspects and records relating to financial
1622 issues, including annual financial reporting under s.
1623 718.111(13); assessments for common expenses, fines, and
1624 commingling of reserve and operating funds under s. 718.111(14);
1625 use of debit cards for unintended purposes under s. 718.111(15);
1626 the annual operating budget and the allocation of reserve funds
1627 under s. 718.112(2)(f); financial records under s.
1628 718.111(12)(a)11.; and any other record necessary to determine
1629 the revenues and expenses of the association.
1630 2. Elections, including election and voting requirements
1631 under s. 718.112(2)(b) and (d), recall of board members under s.
1632 718.112(2)(l), electronic voting under s. 718.128, and elections
1633 that occur during an emergency under s. 718.1265(1)(a).
1634 3. The maintenance of and unit owner access to association
1635 records under s. 718.111(12).
1636 4. The procedural aspects of meetings, including unit owner
1637 meetings, quorums, voting requirements, proxies, board of
1638 administration meetings, and budget meetings under s.
1639 718.112(2).
1640 5. The disclosure of conflicts of interest under ss.
1641 718.111(1)(a) and 718.3027, including limitations contained in
1642 s. 718.111(3)(f).
1643 6. The removal of a board director or officer under ss.
1644 718.111(1)(a) and (15) and 718.112(2)(p) and (q).
1645 7. The procedural completion of structural integrity
1646 reserve studies under s. 718.112(2)(g) and the milestone
1647 inspections under s. 553.899.
1648 8. Completion of repairs required by a milestone inspection
1649 under s. 553.899.
1650 9.8. Any written inquiries by unit owners to the
1651 association relating to such matters, including written
1652 inquiries under s. 718.112(2)(a)2.
1653 10. The requirement for associations to maintain an
1654 insurance policy or fidelity bonding for all persons who control
1655 or disperse funds of the association under s. 718.111(11)(h).
1656 11. Board member education requirements under s.
1657 718.112(2)(d)5.b.
1658 12. Reporting requirements for structural integrity reserve
1659 studies in paragraph (3) and under s 718.112(2)(g)12.
1660 (b)1. The division may make necessary public or private
1661 investigations within or outside this state to determine whether
1662 any person has violated this chapter or any rule or order
1663 hereunder, to aid in the enforcement of this chapter, or to aid
1664 in the adoption of rules or forms.
1665 2. The division may submit any official written report,
1666 worksheet, or other related paper, or a duly certified copy
1667 thereof, compiled, prepared, drafted, or otherwise made by and
1668 duly authenticated by a financial examiner or analyst to be
1669 admitted as competent evidence in any hearing in which the
1670 financial examiner or analyst is available for cross-examination
1671 and attests under oath that such documents were prepared as a
1672 result of an examination or inspection conducted pursuant to
1673 this chapter.
1674 (c) The division may require or permit any person to file a
1675 statement in writing, under oath or otherwise, as the division
1676 determines, as to the facts and circumstances concerning a
1677 matter to be investigated.
1678 (d) For the purpose of any investigation under this
1679 chapter, the division director or any officer or employee
1680 designated by the division director may administer oaths or
1681 affirmations, subpoena witnesses and compel their attendance,
1682 take evidence, and require the production of any matter which is
1683 relevant to the investigation, including the existence,
1684 description, nature, custody, condition, and location of any
1685 books, documents, or other tangible things and the identity and
1686 location of persons having knowledge of relevant facts or any
1687 other matter reasonably calculated to lead to the discovery of
1688 material evidence. Upon the failure by a person to obey a
1689 subpoena or to answer questions propounded by the investigating
1690 officer and upon reasonable notice to all affected persons, the
1691 division may apply to the circuit court for an order compelling
1692 compliance.
1693 (e) Notwithstanding any remedies available to unit owners
1694 and associations, if the division has reasonable cause to
1695 believe that a violation of any provision of this chapter or
1696 related rule has occurred, the division may institute
1697 enforcement proceedings in its own name against any developer,
1698 bulk assignee, bulk buyer, association, officer, or member of
1699 the board of administration, or its assignees or agents, as
1700 follows:
1701 1. The division may permit a person whose conduct or
1702 actions may be under investigation to waive formal proceedings
1703 and enter into a consent proceeding whereby orders, rules, or
1704 letters of censure or warning, whether formal or informal, may
1705 be entered against the person.
1706 2. The division may issue an order requiring the developer,
1707 bulk assignee, bulk buyer, association, developer-designated
1708 officer, or developer-designated member of the board of
1709 administration, developer-designated assignees or agents, bulk
1710 assignee-designated assignees or agents, bulk buyer-designated
1711 assignees or agents, community association manager, or community
1712 association management firm to cease and desist from the
1713 unlawful practice and take such affirmative action as in the
1714 judgment of the division carry out the purposes of this chapter.
1715 If the division finds that a developer, bulk assignee, bulk
1716 buyer, association, officer, or member of the board of
1717 administration, or its assignees or agents, is violating or is
1718 about to violate any provision of this chapter, any rule adopted
1719 or order issued by the division, or any written agreement
1720 entered into with the division, and presents an immediate danger
1721 to the public requiring an immediate final order, it may issue
1722 an emergency cease and desist order reciting with particularity
1723 the facts underlying such findings. The emergency cease and
1724 desist order is effective for 90 days. If the division begins
1725 nonemergency cease and desist proceedings, the emergency cease
1726 and desist order remains effective until the conclusion of the
1727 proceedings under ss. 120.569 and 120.57.
1728 3. If a developer, bulk assignee, or bulk buyer fails to
1729 pay any restitution determined by the division to be owed, plus
1730 any accrued interest at the highest rate permitted by law,
1731 within 30 days after expiration of any appellate time period of
1732 a final order requiring payment of restitution or the conclusion
1733 of any appeal thereof, whichever is later, the division must
1734 bring an action in circuit or county court on behalf of any
1735 association, class of unit owners, lessees, or purchasers for
1736 restitution, declaratory relief, injunctive relief, or any other
1737 available remedy. The division may also temporarily revoke its
1738 acceptance of the filing for the developer to which the
1739 restitution relates until payment of restitution is made.
1740 4. The division may petition the court for appointment of a
1741 receiver or conservator. If appointed, the receiver or
1742 conservator may take action to implement the court order to
1743 ensure the performance of the order and to remedy any breach
1744 thereof. In addition to all other means provided by law for the
1745 enforcement of an injunction or temporary restraining order, the
1746 circuit court may impound or sequester the property of a party
1747 defendant, including books, papers, documents, and related
1748 records, and allow the examination and use of the property by
1749 the division and a court-appointed receiver or conservator.
1750 5. The division may apply to the circuit court for an order
1751 of restitution whereby the defendant in an action brought under
1752 subparagraph 4. is ordered to make restitution of those sums
1753 shown by the division to have been obtained by the defendant in
1754 violation of this chapter. At the option of the court, such
1755 restitution is payable to the conservator or receiver appointed
1756 under subparagraph 4. or directly to the persons whose funds or
1757 assets were obtained in violation of this chapter.
1758 6. The division may impose a civil penalty against a
1759 developer, bulk assignee, or bulk buyer, or association, or its
1760 assignee or agent, for any violation of this chapter or related
1761 rule. The division may impose a civil penalty individually
1762 against an officer or board member who willfully and knowingly
1763 violates this chapter, an adopted rule, or a final order of the
1764 division; may order the removal of such individual as an officer
1765 or from the board of administration or as an officer of the
1766 association; and may prohibit such individual from serving as an
1767 officer or on the board of a community association for a period
1768 of time. The term “willfully and knowingly” means that the
1769 division informed the officer or board member that his or her
1770 action or intended action violates this chapter, a rule adopted
1771 under this chapter, or a final order of the division and that
1772 the officer or board member refused to comply with the
1773 requirements of this chapter, a rule adopted under this chapter,
1774 or a final order of the division. The division, before
1775 initiating formal agency action under chapter 120, must afford
1776 the officer or board member an opportunity to voluntarily
1777 comply, and an officer or board member who complies within 10
1778 days is not subject to a civil penalty. A penalty may be imposed
1779 on the basis of each day of continuing violation, but the
1780 penalty for any offense may not exceed $5,000. The division
1781 shall adopt, by rule, penalty guidelines applicable to possible
1782 violations or to categories of violations of this chapter or
1783 rules adopted by the division. The guidelines must specify a
1784 meaningful range of civil penalties for each such violation of
1785 the statute and rules and must be based upon the harm caused by
1786 the violation, upon the repetition of the violation, and upon
1787 such other factors deemed relevant by the division. For example,
1788 the division may consider whether the violations were committed
1789 by a developer, bulk assignee, or bulk buyer, or owner
1790 controlled association, the size of the association, and other
1791 factors. The guidelines must designate the possible mitigating
1792 or aggravating circumstances that justify a departure from the
1793 range of penalties provided by the rules. It is the legislative
1794 intent that minor violations be distinguished from those which
1795 endanger the health, safety, or welfare of the condominium
1796 residents or other persons and that such guidelines provide
1797 reasonable and meaningful notice to the public of likely
1798 penalties that may be imposed for proscribed conduct. This
1799 subsection does not limit the ability of the division to
1800 informally dispose of administrative actions or complaints by
1801 stipulation, agreed settlement, or consent order. All amounts
1802 collected shall be deposited with the Chief Financial Officer to
1803 the credit of the Division of Florida Condominiums, Timeshares,
1804 and Mobile Homes Trust Fund. If a developer, bulk assignee, or
1805 bulk buyer fails to pay the civil penalty and the amount deemed
1806 to be owed to the association, the division shall issue an order
1807 directing that such developer, bulk assignee, or bulk buyer
1808 cease and desist from further operation until such time as the
1809 civil penalty is paid or may pursue enforcement of the penalty
1810 in a court of competent jurisdiction. If an association fails to
1811 pay the civil penalty, the division shall pursue enforcement in
1812 a court of competent jurisdiction, and the order imposing the
1813 civil penalty or the cease and desist order is not effective
1814 until 20 days after the date of such order. Any action commenced
1815 by the division shall be brought in the county in which the
1816 division has its executive offices or in the county in which the
1817 violation occurred.
1818 7. If a unit owner presents the division with proof that
1819 the unit owner has requested access to official records in
1820 writing by certified mail, and that after 10 days the unit owner
1821 again made the same request for access to official records in
1822 writing by certified mail, and that more than 10 days has
1823 elapsed since the second request and the association has still
1824 failed or refused to provide access to official records as
1825 required by this chapter, the division shall issue a subpoena
1826 requiring production of the requested records at the location in
1827 which the records are kept pursuant to s. 718.112. Upon receipt
1828 of the records, the division must provide to the unit owner who
1829 was denied access to such records the produced official records
1830 without charge.
1831 8. In addition to subparagraph 6., the division may seek
1832 the imposition of a civil penalty through the circuit court for
1833 any violation for which the division may issue a notice to show
1834 cause under paragraph (t). The civil penalty shall be at least
1835 $500 but no more than $5,000 for each violation. The court may
1836 also award to the prevailing party court costs and reasonable
1837 attorney fees and, if the division prevails, may also award
1838 reasonable costs of investigation.
1839 9. The division may issue citations and promulgate rules to
1840 provide for citation bases and citation procedures in accordance
1841 with this paragraph.
1842 (f) The division may prepare and disseminate a prospectus
1843 and other information to assist prospective owners, purchasers,
1844 lessees, and developers of residential condominiums in assessing
1845 the rights, privileges, and duties pertaining thereto.
1846 (g) The division may adopt rules to administer and enforce
1847 this chapter.
1848 (h) The division shall establish procedures for providing
1849 notice to an association and the developer, bulk assignee, or
1850 bulk buyer during the period in which the developer, bulk
1851 assignee, or bulk buyer controls the association if the division
1852 is considering the issuance of a declaratory statement with
1853 respect to the declaration of condominium or any related
1854 document governing such condominium community.
1855 (i) The division shall furnish each association that pays
1856 the fees required by paragraph (2)(a) a copy of this chapter, as
1857 amended, and the rules adopted thereto on an annual basis.
1858 (j) The division shall annually provide each association
1859 with a summary of declaratory statements and formal legal
1860 opinions relating to the operations of condominiums which were
1861 rendered by the division during the previous year.
1862 (k) The division shall provide training and educational
1863 programs for condominium association board members and unit
1864 owners. The training may, in the division’s discretion, include
1865 web-based electronic media and live training and seminars in
1866 various locations throughout the state. The division may review
1867 and approve education and training programs for board members
1868 and unit owners offered by providers and shall maintain a
1869 current list of approved programs and providers and make such
1870 list available to board members and unit owners in a reasonable
1871 and cost-effective manner. The division shall provide the
1872 division-approved provider with the template certificate for
1873 issuance directly to the association’s board of directors who
1874 have satisfactorily completed the requirements under s.
1875 718.112(2)(d). The division shall adopt rules to implement this
1876 section.
1877 (l) The division shall maintain a toll-free telephone
1878 number accessible to condominium unit owners.
1879 (m) The division shall develop a program to certify both
1880 volunteer and paid mediators to provide mediation of condominium
1881 disputes. The division shall provide, upon request, a list of
1882 such mediators to any association, unit owner, or other
1883 participant in alternative dispute resolution proceedings under
1884 s. 718.1255 requesting a copy of the list. The division shall
1885 include on the list of volunteer mediators only the names of
1886 persons who have received at least 20 hours of training in
1887 mediation techniques or who have mediated at least 20 disputes.
1888 In order to become initially certified by the division, paid
1889 mediators must be certified by the Supreme Court to mediate
1890 court cases in county or circuit courts. However, the division
1891 may adopt, by rule, additional factors for the certification of
1892 paid mediators, which must be related to experience, education,
1893 or background. Any person initially certified as a paid mediator
1894 by the division must, in order to continue to be certified,
1895 comply with the factors or requirements adopted by rule.
1896 (n) If a complaint is made, the division must conduct its
1897 inquiry with due regard for the interests of the affected
1898 parties. Within 30 days after receipt of a complaint, the
1899 division shall acknowledge the complaint in writing and notify
1900 the complainant whether the complaint is within the jurisdiction
1901 of the division and whether additional information is needed by
1902 the division from the complainant. The division shall conduct
1903 its investigation and, within 90 days after receipt of the
1904 original complaint or of timely requested additional
1905 information, take action upon the complaint. However, the
1906 failure to complete the investigation within 90 days does not
1907 prevent the division from continuing the investigation,
1908 accepting or considering evidence obtained or received after 90
1909 days, or taking administrative action if reasonable cause exists
1910 to believe that a violation of this chapter or a rule has
1911 occurred. If an investigation is not completed within the time
1912 limits established in this paragraph, the division shall, on a
1913 monthly basis, notify the complainant in writing of the status
1914 of the investigation. When reporting its action to the
1915 complainant, the division shall inform the complainant of any
1916 right to a hearing under ss. 120.569 and 120.57. The division
1917 may adopt rules regarding the submission of a complaint against
1918 an association.
1919 (o) Condominium association directors, officers, and
1920 employees; condominium developers; bulk assignees, bulk buyers,
1921 and community association managers; and community association
1922 management firms have an ongoing duty to reasonably cooperate
1923 with the division in any investigation under this section. The
1924 division shall refer to local law enforcement authorities any
1925 person whom the division believes has altered, destroyed,
1926 concealed, or removed any record, document, or thing required to
1927 be kept or maintained by this chapter with the purpose to impair
1928 its verity or availability in the department’s investigation.
1929 The division shall refer to local law enforcement authorities
1930 any person whom the division believes has engaged in fraud,
1931 theft, embezzlement, or other criminal activity or when the
1932 division has cause to believe that fraud, theft, embezzlement,
1933 or other criminal activity has occurred.
1934 (p) The division director or any officer or employee of the
1935 division and the condominium ombudsman or any employee of the
1936 Office of the Condominium Ombudsman may attend and observe any
1937 meeting of the board of administration or any unit owner
1938 meeting, including any meeting of a subcommittee or special
1939 committee, which is open to members of the association for the
1940 purpose of performing the duties of the division or the Office
1941 of the Condominium Ombudsman under this chapter.
1942 (q) The division may:
1943 1. Contract with agencies in this state or other
1944 jurisdictions to perform investigative functions; or
1945 2. Accept grants-in-aid from any source.
1946 (r) The division shall cooperate with similar agencies in
1947 other jurisdictions to establish uniform filing procedures and
1948 forms, public offering statements, advertising standards, and
1949 rules and common administrative practices.
1950 (s) The division shall consider notice to a developer, bulk
1951 assignee, or bulk buyer to be complete when it is delivered to
1952 the address of the developer, bulk assignee, or bulk buyer
1953 currently on file with the division.
1954 (t) In addition to its enforcement authority, the division
1955 may issue a notice to show cause, which must provide for a
1956 hearing, upon written request, in accordance with chapter 120.
1957 (u) If the division receives a complaint regarding access
1958 to official records on the association’s website or through an
1959 application that can be downloaded on a mobile device under s.
1960 718.111(12)(g), the division may request access to the
1961 association’s website or application and investigate. The
1962 division may adopt rules to carry out this paragraph.
1963 (v) The division shall submit to the Governor, the
1964 President of the Senate, the Speaker of the House of
1965 Representatives, and the chairs of the legislative
1966 appropriations committees an annual report that includes, but
1967 need not be limited to, the number of training programs provided
1968 for condominium association board members and unit owners, the
1969 number of complaints received by type, the number and percent of
1970 complaints acknowledged in writing within 30 days and the number
1971 and percent of investigations acted upon within 90 days in
1972 accordance with paragraph (n), and the number of investigations
1973 exceeding the 90-day requirement. The annual report must also
1974 include an evaluation of the division’s core business processes
1975 and make recommendations for improvements, including statutory
1976 changes. After December 31, 2024, the division must include a
1977 list of the associations that have completed the structural
1978 integrity reserve study required under s. 718.112(2)(g). The
1979 report shall be submitted by September 30 following the end of
1980 the fiscal year.
1981 (2)
1982 (d) Each condominium association must create and maintain
1983 an online account with the division, as required in subsection
1984 (3).
1985 (3) On or before October 1, 2025, all condominium
1986 associations must create and maintain an online account with the
1987 division and provide information requested by the division in an
1988 electronic format determined by the division. The division shall
1989 adopt rules to implement this subsection. The division may
1990 require condominium associations to provide such information no
1991 more than once per year, except that the division may require
1992 condominium associations to update the contact information in
1993 paragraph (a) within 30 days after any change. The division
1994 shall provide a condominium association at least a 45-day notice
1995 of any requirement to provide any information after the
1996 condominium association initially creates an online account. The
1997 information that the division may require from condominium
1998 associations is limited to:
1999 (a) Contact information for the association that includes:
2000 1. Name of the association.
2001 2. The physical address of the condominium property.
2002 3. Mailing address and county of the association.
2003 4. E-mail address and telephone number for the association.
2004 5. Name and board title for each member of the
2005 association’s board.
2006 6. Name and contact information of the association’s
2007 community association manager or community association
2008 management firm, if applicable.
2009 7. The hyperlink or website address of the association’s
2010 website, if applicable.
2011 (b) Total number of buildings and for each building in the
2012 association:
2013 1. Total number of stories, including both habitable and
2014 uninhabitable stories.
2015 2. Total number of units.
2016 3. Age of each building based on the certificate of
2017 occupancy.
2018 4. Any construction commenced within the common elements
2019 within the calendar year.
2020 (c) The association’s assessments, including the:
2021 1. Amount of assessment or special assessment by unit type,
2022 including reserves.
2023 2. Purpose of the assessment or special assessment.
2024 3. Name of the financial institution or institutions with
2025 which the association maintains accounts.
2026 (d) A copy of any structural integrity reserve study and
2027 any associated materials requested by the department within 5
2028 business days after such request, in a manner prescribed by the
2029 department.
2030 (a) On or before January 1, 2023, condominium associations
2031 existing on or before July 1, 2022, must provide the following
2032 information to the division in writing, by e-mail, United States
2033 Postal Service, commercial delivery service, or hand delivery,
2034 at a physical address or e-mail address provided by the division
2035 and on a form posted on the division’s website:
2036 1. The number of buildings on the condominium property that
2037 are three stories or higher in height.
2038 2. The total number of units in all such buildings.
2039 3. The addresses of all such buildings.
2040 4. The counties in which all such buildings are located.
2041 (b) The division must compile a list of the number of
2042 buildings on condominium property that are three stories or
2043 higher in height, which is searchable by county, and must post
2044 the list on the division’s website. This list must include all
2045 of the following information:
2046 1. The name of each association with buildings on the
2047 condominium property that are three stories or higher in height.
2048 2. The number of such buildings on each association’s
2049 property.
2050 3. The addresses of all such buildings.
2051 4. The counties in which all such buildings are located.
2052 (c) An association must provide an update in writing to the
2053 division if there are any changes to the information in the list
2054 under paragraph (b) within 6 months after the change.
2055 Section 8. Paragraph (d) of subsection (1) and paragraphs
2056 (d) and (e) of subsection (2) of section 718.503, Florida
2057 Statutes, are amended, to read:
2058 718.503 Developer disclosure prior to sale; nondeveloper
2059 unit owner disclosure prior to sale; voidability.—
2060 (1) DEVELOPER DISCLOSURE.—
2061 (d) Milestone inspection, turnover inspection report, or
2062 structural integrity reserve study.—If the association is
2063 required to have completed a milestone inspection as described
2064 in s. 553.899, a turnover inspection report for a turnover
2065 inspection performed on or after July 1, 2023, or a structural
2066 integrity reserve study, and the association has not completed
2067 the milestone inspection, the turnover inspection report, or the
2068 structural integrity reserve study, each contract entered into
2069 after December 31, 2024, for the sale of a residential unit
2070 shall contain in conspicuous type a statement indicating that
2071 the association is required to have a milestone inspection, a
2072 turnover inspection report, or a structural integrity reserve
2073 study and has not completed such inspection, report, or study,
2074 as appropriate. If the association is not required to have a
2075 milestone inspection as described in s. 553.899 or a structural
2076 integrity reserve study, each contract entered into after
2077 December 31, 2024, for the sale of a residential unit shall
2078 contain in conspicuous type a statement indicating that the
2079 association is not required to have a milestone inspection or a
2080 structural integrity reserve study, as appropriate. If the
2081 association has completed a milestone inspection as described in
2082 s. 553.899, a turnover inspection report for a turnover
2083 inspection performed on or after July 1, 2023, or a structural
2084 integrity reserve study, each contract entered into after
2085 December 31, 2024, for the sale of a residential unit shall
2086 contain in conspicuous type:
2087 1. A clause which states: THE BUYER HEREBY ACKNOWLEDGES
2088 THAT BUYER HAS BEEN PROVIDED A CURRENT COPY OF THE INSPECTOR
2089 PREPARED SUMMARY OF THE MILESTONE INSPECTION REPORT AS DESCRIBED
2090 IN SECTION 553.899, FLORIDA STATUTES, IF APPLICABLE; A COPY OF
2091 THE TURNOVER INSPECTION REPORT DESCRIBED IN SECTION
2092 718.301(4)(p) AND (q), FLORIDA STATUTES, IF APPLICABLE; AND A
2093 COPY OF THE ASSOCIATION’S MOST RECENT STRUCTURAL INTEGRITY
2094 RESERVE STUDY DESCRIBED IN SECTIONS 718.103(26) AND
2095 718.112(2)(g), FLORIDA STATUTES, IF APPLICABLE, MORE THAN 15
2096 DAYS, EXCLUDING SATURDAYS, SUNDAYS, AND LEGAL HOLIDAYS, BEFORE
2097 PRIOR TO EXECUTION OF THIS CONTRACT; and
2098 2. A clause which states: THIS AGREEMENT IS VOIDABLE BY
2099 BUYER BY DELIVERING WRITTEN NOTICE OF THE BUYER’S INTENTION TO
2100 CANCEL WITHIN 15 DAYS, EXCLUDING SATURDAYS, SUNDAYS, AND LEGAL
2101 HOLIDAYS, AFTER THE DATE OF EXECUTION OF THIS AGREEMENT BY THE
2102 BUYER AND RECEIPT BY BUYER OF A CURRENT COPY OF THE INSPECTOR
2103 PREPARED SUMMARY OF THE MILESTONE INSPECTION REPORT AS DESCRIBED
2104 IN SECTION 553.899, FLORIDA STATUTES, IF APPLICABLE; A COPY OF
2105 THE TURNOVER INSPECTION REPORT DESCRIBED IN SECTION
2106 718.301(4)(p) AND (q), FLORIDA STATUTES, IF APPLICABLE; AND A
2107 COPY OF THE ASSOCIATION’S MOST RECENT STRUCTURAL INTEGRITY
2108 RESERVE STUDY DESCRIBED IN SECTIONS 718.103(26) AND
2109 718.112(2)(g), FLORIDA STATUTES, IF APPLICABLE. ANY PURPORTED
2110 WAIVER OF THESE VOIDABILITY RIGHTS SHALL BE OF NO EFFECT. BUYER
2111 MAY EXTEND THE TIME FOR CLOSING FOR A PERIOD OF NOT MORE THAN 15
2112 DAYS, EXCLUDING SATURDAYS, SUNDAYS, AND LEGAL HOLIDAYS, AFTER
2113 THE BUYER RECEIVES A CURRENT COPY OF THE INSPECTOR-PREPARED
2114 SUMMARY OF THE MILESTONE INSPECTION REPORT AS DESCRIBED IN
2115 SECTION 553.899, FLORIDA STATUTES; A COPY OF THE TURNOVER
2116 INSPECTION REPORT DESCRIBED IN SECTION 718.301(4)(p) AND (q),
2117 FLORIDA STATUTES; OR A COPY OF THE ASSOCIATION’S MOST RECENT
2118 STRUCTURAL INTEGRITY RESERVE STUDY DESCRIBED IN SECTIONS
2119 718.103(26) AND 718.112(2)(g), FLORIDA STATUTES, IF REQUESTED IN
2120 WRITING. BUYER’S RIGHT TO VOID THIS AGREEMENT SHALL TERMINATE AT
2121 CLOSING.
2122
2123 A contract that does not conform to the requirements of this
2124 paragraph is voidable at the option of the purchaser before
2125 prior to closing.
2126 (2) NONDEVELOPER DISCLOSURE.—
2127 (d) Each contract entered into after July 1, 1992, for the
2128 resale of a residential unit must shall contain in conspicuous
2129 type either:
2130 1. A clause which states: THE BUYER HEREBY ACKNOWLEDGES
2131 THAT BUYER HAS BEEN PROVIDED A CURRENT COPY OF THE DECLARATION
2132 OF CONDOMINIUM, ARTICLES OF INCORPORATION OF THE ASSOCIATION,
2133 BYLAWS AND RULES OF THE ASSOCIATION, A COPY OF THE MOST RECENT
2134 ANNUAL FINANCIAL STATEMENT AND ANNUAL BUDGET, AND FREQUENTLY
2135 ASKED QUESTIONS AND ANSWERS DOCUMENT MORE THAN 7 3 DAYS,
2136 EXCLUDING SATURDAYS, SUNDAYS, AND LEGAL HOLIDAYS, BEFORE PRIOR
2137 TO EXECUTION OF THIS CONTRACT; or
2138 2. A clause which states: THIS AGREEMENT IS VOIDABLE BY
2139 BUYER BY DELIVERING WRITTEN NOTICE OF THE BUYER’S INTENTION TO
2140 CANCEL WITHIN 7 3 DAYS, EXCLUDING SATURDAYS, SUNDAYS, AND LEGAL
2141 HOLIDAYS, AFTER THE DATE OF EXECUTION OF THIS AGREEMENT BY THE
2142 BUYER AND RECEIPT BY BUYER OF A CURRENT COPY OF THE DECLARATION
2143 OF CONDOMINIUM, ARTICLES OF INCORPORATION, BYLAWS AND RULES OF
2144 THE ASSOCIATION, A COPY OF THE MOST RECENT ANNUAL FINANCIAL
2145 STATEMENT AND ANNUAL BUDGET, AND FREQUENTLY ASKED QUESTIONS AND
2146 ANSWERS DOCUMENT IF SO REQUESTED IN WRITING. ANY PURPORTED
2147 WAIVER OF THESE VOIDABILITY RIGHTS SHALL BE OF NO EFFECT. BUYER
2148 MAY EXTEND THE TIME FOR CLOSING FOR A PERIOD OF NOT MORE THAN 7
2149 3 DAYS, EXCLUDING SATURDAYS, SUNDAYS, AND LEGAL HOLIDAYS, AFTER
2150 THE BUYER RECEIVES THE DECLARATION, ARTICLES OF INCORPORATION,
2151 BYLAWS AND RULES OF THE ASSOCIATION, AND A COPY OF THE MOST
2152 RECENT YEAR-END FINANCIAL STATEMENT AND ANNUAL BUDGET
2153 INFORMATION AND FREQUENTLY ASKED QUESTIONS AND ANSWERS DOCUMENT
2154 IF REQUESTED IN WRITING. BUYER’S RIGHT TO VOID THIS AGREEMENT
2155 SHALL TERMINATE AT CLOSING.
2156
2157 A contract that does not conform to the requirements of this
2158 paragraph is voidable at the option of the purchaser before
2159 prior to closing.
2160 (e) If the association is required to have completed a
2161 milestone inspection as described in s. 553.899, a turnover
2162 inspection report for a turnover inspection performed on or
2163 after July 1, 2023, or a structural integrity reserve study, and
2164 the association has not completed the milestone inspection, the
2165 turnover inspection report, or the structural integrity reserve
2166 study, each contract entered into after December 31, 2024, for
2167 the sale of a residential unit shall contain in conspicuous type
2168 a statement indicating that the association is required to have
2169 a milestone inspection, a turnover inspection report, or a
2170 structural integrity reserve study and has not completed such
2171 inspection, report, or study, as appropriate. If the association
2172 is not required to have a milestone inspection as described in
2173 s. 553.899 or a structural integrity reserve study, each
2174 contract entered into after December 31, 2024, for the sale of a
2175 residential unit shall contain in conspicuous type a statement
2176 indicating that the association is not required to have a
2177 milestone inspection or a structural integrity reserve study, as
2178 appropriate. If the association has completed a milestone
2179 inspection as described in s. 553.899, a turnover inspection
2180 report for a turnover inspection performed on or after July 1,
2181 2023, or a structural integrity reserve study, each contract
2182 entered into after December 31, 2024, for the resale of a
2183 residential unit shall contain in conspicuous type:
2184 1. A clause which states: THE BUYER HEREBY ACKNOWLEDGES
2185 THAT BUYER HAS BEEN PROVIDED A CURRENT COPY OF THE INSPECTOR
2186 PREPARED SUMMARY OF THE MILESTONE INSPECTION REPORT AS DESCRIBED
2187 IN SECTION 553.899, FLORIDA STATUTES, IF APPLICABLE; A COPY OF
2188 THE TURNOVER INSPECTION REPORT DESCRIBED IN SECTION
2189 718.301(4)(p) AND (q), FLORIDA STATUTES, IF APPLICABLE; AND A
2190 COPY OF THE ASSOCIATION’S MOST RECENT STRUCTURAL INTEGRITY
2191 RESERVE STUDY DESCRIBED IN SECTIONS 718.103(26) AND
2192 718.112(2)(g), FLORIDA STATUTES, IF APPLICABLE, MORE THAN 7 3
2193 DAYS, EXCLUDING SATURDAYS, SUNDAYS, AND LEGAL HOLIDAYS, BEFORE
2194 PRIOR TO EXECUTION OF THIS CONTRACT; and
2195 2. A clause which states: THIS AGREEMENT IS VOIDABLE BY
2196 BUYER BY DELIVERING WRITTEN NOTICE OF THE BUYER’S INTENTION TO
2197 CANCEL WITHIN 7 3 DAYS, EXCLUDING SATURDAYS, SUNDAYS, AND LEGAL
2198 HOLIDAYS, AFTER THE DATE OF EXECUTION OF THIS AGREEMENT BY THE
2199 BUYER AND RECEIPT BY BUYER OF A CURRENT COPY OF THE INSPECTOR
2200 PREPARED SUMMARY OF THE MILESTONE INSPECTION REPORT AS DESCRIBED
2201 IN SECTION 553.899, FLORIDA STATUTES, IF APPLICABLE; A COPY OF
2202 THE TURNOVER INSPECTION REPORT DESCRIBED IN SECTION
2203 718.301(4)(p) AND (q), FLORIDA STATUTES, IF APPLICABLE; AND A
2204 COPY OF THE ASSOCIATION’S MOST RECENT STRUCTURAL INTEGRITY
2205 RESERVE STUDY DESCRIBED IN SECTIONS 718.103(26) AND
2206 718.112(2)(g), FLORIDA STATUTES, IF APPLICABLE. ANY PURPORTED
2207 WAIVER OF THESE VOIDABILITY RIGHTS SHALL BE OF NO EFFECT. BUYER
2208 MAY EXTEND THE TIME FOR CLOSING FOR A PERIOD OF NOT MORE THAN 7
2209 3 DAYS, EXCLUDING SATURDAYS, SUNDAYS, AND LEGAL HOLIDAYS, AFTER
2210 THE BUYER RECEIVES A CURRENT COPY OF THE INSPECTOR-PREPARED
2211 SUMMARY OF THE MILESTONE INSPECTION REPORT AS DESCRIBED IN
2212 SECTION 553.899, FLORIDA STATUTES; A COPY OF THE TURNOVER
2213 INSPECTION REPORT DESCRIBED IN SECTION 718.301(4)(p) AND (q),
2214 FLORIDA STATUTES; OR A COPY OF THE ASSOCIATION’S MOST RECENT
2215 STRUCTURAL INTEGRITY RESERVE STUDY DESCRIBED IN SECTIONS
2216 718.103(26) AND 718.112(2)(g), FLORIDA STATUTES, IF REQUESTED IN
2217 WRITING. BUYER’S RIGHT TO VOID THIS AGREEMENT SHALL TERMINATE AT
2218 CLOSING.
2219
2220 A contract that does not conform to the requirements of this
2221 paragraph is voidable at the option of the purchaser before
2222 prior to closing.
2223 Section 9. Section 8 of chapter 2024-244, Laws of Florida,
2224 is amended to read:
2225 Section 8. Effective January 1, 2026, paragraph (g) of
2226 subsection (12) of section 718.111, Florida Statutes, as amended
2227 by this act, is amended to read:
2228 718.111 The association.—
2229 (12) OFFICIAL RECORDS.—
2230 (g)1. An association managing a condominium with 25 or more
2231 units which does not contain timeshare units shall post digital
2232 copies of the documents specified in subparagraph 2. on its
2233 website or make such documents available through an application
2234 that can be downloaded on a mobile device. Unless a shorter
2235 period is otherwise required, a document must be made available
2236 on the association’s website or made available for download
2237 through an application on a mobile device within 30 days after
2238 the association receives or creates an official record specified
2239 in subparagraph 2.
2240 a. The association’s website or application must be:
2241 (I) An independent website, application, or web portal
2242 wholly owned and operated by the association; or
2243 (II) A website, application, or web portal operated by a
2244 third-party provider with whom the association owns, leases,
2245 rents, or otherwise obtains the right to operate a web page,
2246 subpage, web portal, collection of subpages or web portals, or
2247 an application which is dedicated to the association’s
2248 activities and on which required notices, records, and documents
2249 may be posted or made available by the association.
2250 b. The association’s website or application must be
2251 accessible through the Internet and must contain a subpage, web
2252 portal, or other protected electronic location that is
2253 inaccessible to the general public and accessible only to unit
2254 owners and employees of the association.
2255 c. Upon a unit owner’s written request, the association
2256 must provide the unit owner with a username and password and
2257 access to the protected sections of the association’s website or
2258 application which contain any notices, records, or documents
2259 that must be electronically provided.
2260 2. A current copy of the following documents must be posted
2261 in digital format on the association’s website or application:
2262 a. The recorded declaration of condominium of each
2263 condominium operated by the association and each amendment to
2264 each declaration.
2265 b. The recorded bylaws of the association and each
2266 amendment to the bylaws.
2267 c. The articles of incorporation of the association, or
2268 other documents creating the association, and each amendment to
2269 the articles of incorporation or other documents. The copy
2270 posted pursuant to this sub-subparagraph must be a copy of the
2271 articles of incorporation filed with the Department of State.
2272 d. The rules of the association.
2273 e. The approved minutes of all board of administration
2274 meetings over the preceding 12 months.
2275 f. The video recording or a hyperlink to the video
2276 recording for all meetings of the association, the board of
2277 administration, any committee, and the unit owners which are
2278 conducted by videoconference over the preceding 12 months.
2279 g. A list of all executory contracts or documents to which
2280 the association is a party or under which the association or the
2281 unit owners have an obligation or responsibility and, after
2282 bidding for the related materials, equipment, or services has
2283 closed, a list of bids received by the association within the
2284 past year. Summaries of bids for materials, equipment, or
2285 services which exceed $500 must be maintained on the website or
2286 application for 1 year. In lieu of summaries, complete copies of
2287 the bids may be posted.
2288 h.f. The annual budget required by s. 718.112(2)(f) and any
2289 proposed budget to be considered at the annual meeting.
2290 i.g. The financial report required by subsection (13) and
2291 any monthly income or expense statement to be considered at a
2292 meeting.
2293 j.h. The certification of each director required by s.
2294 718.112(2)(d)4.b.
2295 k.i. All contracts or transactions between the association
2296 and any director, officer, corporation, firm, or association
2297 that is not an affiliated condominium association or any other
2298 entity in which an association director is also a director or
2299 officer and financially interested.
2300 l.j. Any contract or document regarding a conflict of
2301 interest or possible conflict of interest as provided in ss.
2302 468.4335, 468.436(2)(b)6., and 718.3027(3).
2303 m.k. The notice of any unit owner meeting and the agenda
2304 for the meeting, as required by s. 718.112(2)(d)3., no later
2305 than 14 days before the meeting. The notice must be posted in
2306 plain view on the front page of the website or application, or
2307 on a separate subpage of the website or application labeled
2308 “Notices” which is conspicuously visible and linked from the
2309 front page. The association must also post on its website or
2310 application any document to be considered and voted on by the
2311 owners during the meeting or any document listed on the agenda
2312 at least 7 days before the meeting at which the document or the
2313 information within the document will be considered.
2314 n.l. Notice of any board meeting, the agenda, and any other
2315 document required for the meeting as required by s.
2316 718.112(2)(c), which must be posted no later than the date
2317 required for notice under s. 718.112(2)(c).
2318 o.m. The inspection reports described in ss. 553.899 and
2319 718.301(4)(p) and any other inspection report relating to a
2320 structural or life safety inspection of condominium property.
2321 p.n. The association’s most recent structural integrity
2322 reserve study, if applicable.
2323 q.o. Copies of all building permits issued for ongoing or
2324 planned construction.
2325 r. A copy of all affidavits required by this chapter.
2326 s. A copy of all investment policy statements adopted
2327 pursuant to paragraph (16)(c), and all financial statements
2328 related to the association’s investment of funds under
2329 subsection (16).
2330 3. The association shall ensure that the information and
2331 records described in paragraph (c), which are not allowed to be
2332 accessible to unit owners, are not posted on the association’s
2333 website or application. If protected information or information
2334 restricted from being accessible to unit owners is included in
2335 documents that are required to be posted on the association’s
2336 website or application, the association shall ensure the
2337 information is redacted before posting the documents.
2338 Notwithstanding the foregoing, the association or its agent is
2339 not liable for disclosing information that is protected or
2340 restricted under this paragraph unless such disclosure was made
2341 with a knowing or intentional disregard of the protected or
2342 restricted nature of such information.
2343 4. The failure of the association to post information
2344 required under subparagraph 2. is not in and of itself
2345 sufficient to invalidate any action or decision of the
2346 association’s board or its committees.
2347 Section 10. Section 31 of chapter 2024-244, Laws of
2348 Florida, is amended to read:
2349 Section 31. The amendments made to ss. 718.103(14) and
2350 718.202(3) and 718.407(1), (2), and (6), Florida Statutes, as
2351 created by this act, may not are intended to clarify existing
2352 law and shall apply retroactively and shall only apply to
2353 condominiums for which declarations were initially recorded on
2354 or after October 1, 2024. However, such amendments do not revive
2355 or reinstate any right or interest that has been fully and
2356 finally adjudicated as invalid before October 1, 2024.
2357 Section 11. Subsection (13) is added to section 719.104,
2358 Florida Statutes, to read:
2359 719.104 Cooperatives; access to units; records; financial
2360 reports; assessments; purchase of leases.—
2361 (13) INVESTMENT OF ASSOCIATION FUNDS.—
2362 (a) A board shall, in fulfilling its duty to manage
2363 operating and reserve funds of its association, use best efforts
2364 to make prudent investment decisions that carefully consider
2365 risk and return in an effort to maximize returns on invested
2366 funds.
2367 (b) An association may invest reserve funds in one or any
2368 combination of certificates of deposit or in depository accounts
2369 at a community bank, savings bank, commercial bank, savings and
2370 loan association, or credit union. Upon a majority vote of the
2371 voting interests, an association may invest reserve funds in
2372 investments other than certificates of deposit or depository
2373 accounts at a community bank, savings bank, commercial bank,
2374 savings and loan association, or credit union, provided the
2375 association complies with paragraphs (c)-(g). Notwithstanding
2376 any declaration, only funds identified as reserve funds may be
2377 invested pursuant to paragraphs (c)-(g). Paragraphs (c)-(g) do
2378 not apply to funds invested in one or any combination of
2379 certificates of deposit or depository accounts at a community
2380 bank, savings bank, commercial bank, savings and loan
2381 association, or credit union.
2382 (c) The board shall create an investment committee composed
2383 of at least two board members and two-unit unit members who are
2384 unit owners but not board members. The board shall also adopt
2385 rules for invested funds, including, but not limited to, rules
2386 requiring periodic reviews of any investment manager’s
2387 performance, the development of an investment policy statement,
2388 and that all meetings of the investment committee be recorded
2389 and made part of the official records of the association. The
2390 investment policy statement developed pursuant to this paragraph
2391 must, at a minimum, address risk, liquidity, and benchmark
2392 measurements; authorized classes of investments; authorized
2393 investment mixes; limitations on authority relating to
2394 investment transactions; requirements for projected reserve
2395 expenditures within, at minimum, the next 24 months to be held
2396 in cash or cash equivalents; projected expenditures relating to
2397 an inspection performed pursuant to s. 553.899; and protocols
2398 for proxy response.
2399 (d) The investment committee shall recommend investment
2400 advisers to the board, and the board shall select one of the
2401 recommended investment advisers to provide services to the
2402 association. Such investment advisers must be registered or have
2403 notice filed under s. 517.12. The selected investment adviser
2404 and any representative or association of the investment adviser
2405 may not be related by affinity or consanguinity to, or under
2406 common ownership with, any board member, community management
2407 company, reserve study provider, or a co-owner of a unit with a
2408 board member or investment committee member. The investment
2409 adviser shall comply with the prudent investor rule in s.
2410 518.11. The investment adviser shall act as a fiduciary to the
2411 association in compliance with the standards set forth in the
2412 Employee Retirement Income Security Act of 1974 at 29 U.S.C. s.
2413 1104(a)(1)(A)-(C). In case of conflict with other laws
2414 authorizing investments, the investment and fiduciary standards
2415 set forth in this subsection must prevail. If at any time the
2416 investment committee determines that an investment adviser does
2417 not meet the requirements of this section, the investment
2418 committee must recommend a replacement investment adviser to the
2419 board.
2420 (e) At least once each calendar year, or sooner if a
2421 substantial financial obligation of the association becomes
2422 known to the board, the association must provide the investment
2423 adviser with the association’s investment policy statement, the
2424 most recent reserve study report, the association’s structural
2425 integrity report, and the financial reports prepared pursuant to
2426 subsection (13). If there is no recent reserve study report, the
2427 association must provide the investment adviser with a good
2428 faith estimate disclosing the annual amount of reserve funds
2429 necessary for the association to fund reserves fully for the
2430 life of each reserve component and each component’s
2431 redundancies. The investment adviser shall annually review these
2432 documents and provide the association with a portfolio
2433 allocation model that is suitably structured and prudently
2434 designed to match projected annual reserve fund requirements and
2435 liability, assets, and liquidity requirements. The investment
2436 adviser shall prepare a funding projection for each reserve
2437 component, including any of the component’s redundancies. The
2438 association shall have available at all times a minimum of 24
2439 months of projected reserves in cash or cash equivalents.
2440 (f) Portfolios managed by the investment adviser may
2441 contain any type of investment necessary to meet the objectives
2442 in the investment policy statement; however, portfolios may not
2443 contain stocks, securities, or other obligations that the State
2444 Board of Administration is prohibited from investing in under s.
2445 215.471, s. 215.4725, or s. 215.473 or that state agencies are
2446 prohibited from investing in under s. 215.472, as determined by
2447 the investment adviser. Any funds invested by the investment
2448 adviser must be held in third-party custodial accounts that are
2449 subject to insurance coverage by the Securities Investor
2450 Protection Corporation in an amount equal to or greater than the
2451 invested amount. The investment adviser may withdraw investment
2452 fees, expenses, and commissions from invested funds.
2453 (g) The investment adviser shall:
2454 1. Annually provide the association with a written
2455 certification of compliance with this section and a list of
2456 stocks, securities, and other obligations that are prohibited
2457 from being in association portfolios under paragraph (f); and
2458 2. Submit monthly, quarterly, and annual reports to the
2459 association which are prepared in accordance with established
2460 financial industry standards and in accordance with chapter 517.
2461 (h) Any principal, earnings, or interest managed under this
2462 subsection must be available at no cost or charge to the
2463 association within 15 business days after delivery of the
2464 association’s written or electronic request.
2465 (i) Unallocated income earned on reserve fund investments
2466 may be spent only on capital expenditures, planned maintenance,
2467 structural repairs, or other items for which the reserve
2468 accounts have been established. Any surplus of funds which
2469 exceeds the amount required to maintain reasonably funded
2470 reserves must be managed pursuant to s. 718.115.
2471 Section 12. Paragraphs (j) and (k) of subsection (1) of
2472 section 719.106, Florida Statutes, are amended to read:
2473 719.106 Bylaws; cooperative ownership.—
2474 (1) MANDATORY PROVISIONS.—The bylaws or other cooperative
2475 documents shall provide for the following, and if they do not,
2476 they shall be deemed to include the following:
2477 (j) Annual budget.—
2478 1. The proposed annual budget of common expenses must be
2479 detailed and must show the amounts budgeted by accounts and
2480 expense classifications, including, if applicable, but not
2481 limited to, those expenses listed in s. 719.504(20). The board
2482 of administration shall adopt the annual budget at least 14 days
2483 before the start of the association’s fiscal year. In the event
2484 that the board fails to timely adopt the annual budget a second
2485 time, it is deemed a minor violation and the prior year’s budget
2486 shall continue in effect until a new budget is adopted.
2487 2.a. In addition to annual operating expenses, the budget
2488 must include reserve accounts for capital expenditures and
2489 deferred maintenance. These accounts must include, but not be
2490 limited to, roof replacement, building painting, and pavement
2491 resurfacing, regardless of the amount of deferred maintenance
2492 expense or replacement cost, and for any other items for which
2493 the deferred maintenance expense or replacement cost exceeds
2494 $25,000 $10,000. The amount to be reserved must be computed by
2495 means of a formula which is based upon estimated remaining
2496 useful life and estimated replacement cost or deferred
2497 maintenance expense of the reserve item. In a budget adopted by
2498 an association that is required to obtain a structural integrity
2499 reserve study, reserves must be maintained for the items
2500 identified in paragraph (k) for which the association is
2501 responsible pursuant to the declaration, and the reserve amount
2502 for such items must be based on the findings and recommendations
2503 of the association’s most recent structural integrity reserve
2504 study. With respect to items for which an estimate of useful
2505 life is not readily ascertainable or with an estimated remaining
2506 useful life of greater than 25 years, an association is not
2507 required to reserve replacement costs for such items, but an
2508 association must reserve the amount of deferred maintenance
2509 expense, if any, which is recommended by the structural
2510 integrity reserve study for such items. The association may
2511 adjust replacement reserve assessments annually to take into
2512 account an inflation adjustment and any changes in estimates or
2513 extension of the useful life of a reserve item caused by
2514 deferred maintenance.
2515 b. The members of a unit-owner-controlled association may
2516 determine, by a majority vote of the total voting interests of
2517 the association, for a fiscal year to provide no reserves or
2518 reserves less adequate than required by this subsection. Before
2519 turnover of control of an association by a developer to unit
2520 owners other than a developer under s. 719.301, the developer
2521 controlled association may not vote to waive the reserves or
2522 reduce funding of the reserves.
2523 c. For a budget adopted on or after December 31, 2024, a
2524 unit-owner-controlled association that must obtain a structural
2525 integrity reserve study may not determine to provide no reserves
2526 or reserves less adequate than required by this paragraph for
2527 items listed in paragraph (k). If a meeting of the unit owners
2528 has been called to determine to provide no reserves, or reserves
2529 less adequate than required, and such result is not attained or
2530 a quorum is not attained, the reserves as included in the budget
2531 shall go into effect.
2532 d. If the local building official as defined in s. 468.603,
2533 determines that the entire cooperative building is uninhabitable
2534 due to a natural emergency as defined in s. 252.34, the board
2535 may pause the contribution to its reserves or reduce reserve
2536 funding until the local building official determines that the
2537 cooperative building is habitable. Any reserve account funds
2538 held by the association may be expended, pursuant to the board’s
2539 determination, to make the cooperative building and its
2540 structures habitable. Upon the determination by the local
2541 building official that the cooperative building is habitable,
2542 the association must immediately resume contributing funds to
2543 its reserves.
2544 e.1. Reserves for the items listed in paragraph (g) may be
2545 funded by regular assessments, special assessments, lines of
2546 credit, or loans.
2547 2. A unit-owner-controlled association that must have a
2548 structural reserve study may secure a line of credit or a loan
2549 to fund capital expenses required by a milestone inspection
2550 under s. 553.899 or a structural integrity reserve study. Any
2551 line of credit or loan under this subparagraph requires the
2552 approval of a majority vote of the total voting interests of the
2553 association. The lines of credit or loans must be sufficient to
2554 fund the cumulative amount of any previously waived or unfunded
2555 portion of the reserve funding amount required by this paragraph
2556 and the most recent structural integrity reserve study. Funding
2557 from the lines of credit or loans must be immediately available
2558 for access by the board to fund required repair, maintenance, or
2559 replacement expenses without further approval by the members of
2560 the association. Any lines of credit or loans secured under this
2561 paragraph must be included in the financial report required
2562 under s. 719.104(4).
2563 a. For a budget adopted on or before December 31, 2028, if
2564 the association has completed a milestone inspection pursuant to
2565 s. 553.899 within the previous 2 calendar years, the board, upon
2566 the approval of a majority of the total voting interests of the
2567 association, may temporarily pause, for a period of no more than
2568 2 consecutive annual budgets, reserve fund contributions or
2569 reduce the amount of reserve funding for the purpose of funding
2570 repairs recommended by the milestone inspection. This sub
2571 subparagraph does not apply to a developer-controlled
2572 association and an association in which the non-developer unit
2573 owners have been in control for less than 1 year.
2574 b. An association that has paused reserve contributions
2575 under this sub-subparagraph a. must have a structural integrity
2576 reserve study performed before the continuation of reserve
2577 contributions in order to determine the association’s reserve
2578 funding needs and to recommend a reserve funding plan.
2579 3. Reserve funds and any interest accruing thereon shall
2580 remain in the reserve account or accounts, and shall be used
2581 only for authorized reserve expenditures unless their use for
2582 other purposes is approved in advance by a vote of the majority
2583 of the total voting interests of the association. Before
2584 turnover of control of an association by a developer to unit
2585 owners other than the developer under s. 719.301, the developer
2586 may not vote to use reserves for purposes other than that for
2587 which they were intended. For a budget adopted on or after
2588 December 31, 2024, members of a unit-owner-controlled
2589 association that must obtain a structural integrity reserve
2590 study may not vote to use reserve funds, or any interest
2591 accruing thereon, for purposes other than the replacement or
2592 deferred maintenance costs of the components listed in paragraph
2593 (k). A vote of the members is not required for the board to
2594 change the accounting method for reserves to a pooling
2595 accounting method or a straight-line accounting method.
2596 (k) Structural integrity reserve study.—
2597 1. A residential cooperative association must have a
2598 structural integrity reserve study completed at least every 10
2599 years for each building on the cooperative property that is
2600 three stories or higher in height, as determined by the Florida
2601 Building Code, that includes, at a minimum, a study of the
2602 following items as related to the structural integrity and
2603 safety of the building:
2604 a. Roof.
2605 b. Structure, including load-bearing walls and other
2606 primary structural members and primary structural systems as
2607 those terms are defined in s. 627.706.
2608 c. Fireproofing and fire protection systems.
2609 d. Plumbing.
2610 e. Electrical systems.
2611 f. Waterproofing and exterior painting.
2612 g. Windows and exterior doors.
2613 h. Any other item that has a deferred maintenance expense
2614 or replacement cost that exceeds $25,000 $10,000 and the failure
2615 to replace or maintain such item negatively affects the items
2616 listed in sub-subparagraphs a.-g., as determined by the visual
2617 inspection portion of the structural integrity reserve study.
2618 2. A structural integrity reserve study is based on a
2619 visual inspection of the cooperative property.
2620 3.a. A structural integrity reserve study may be performed
2621 by any person qualified to perform such study. However, the
2622 visual inspection portion of the structural integrity reserve
2623 study must be performed or verified by an engineer licensed
2624 under chapter 471, an architect licensed under chapter 481, or a
2625 person certified as a reserve specialist or professional reserve
2626 analyst by the Community Associations Institute or the
2627 Association of Professional Reserve Analysts.
2628 b. Any design professional as defined in s. 558.002(7) or
2629 contractor licensed under chapter 489 who bids to perform a
2630 structural integrity reserve study must disclose in writing to
2631 the association his or her intent to bid on any services related
2632 to any maintenance, repair, or replacement that may be
2633 recommended by the structural integrity reserve study. Any
2634 design professional as defined in s. 558.002 or contractor
2635 licensed under chapter 489 who submits a bid to the association
2636 for performing any services recommended by the structural
2637 integrity reserve study may not have an interest, directly or
2638 indirectly, in the firm or entity providing the association’s
2639 structural integrity reserve study or be a relative of any
2640 person having a direct or indirect interest in such firm, unless
2641 such relationship is disclosed to the association in writing. As
2642 used in this section, the term “relative” means a relative
2643 within the third degree of consanguinity by blood or marriage. A
2644 contract for services is voidable and terminates upon the
2645 association filing a written notice terminating the contract if
2646 the design professional or licensed contractor failed to provide
2647 the written disclosure of the relationship required under this
2648 paragraph. A design professional or licensed contractor may be
2649 subject to discipline under the applicable practice act for his
2650 or her profession for failure to provide the written disclosure
2651 of the relationship required under this subparagraph.
2652 4.a.3. At a minimum, a structural integrity reserve study
2653 must identify each item of the cooperative property being
2654 visually inspected, state the estimated remaining useful life
2655 and the estimated replacement cost or deferred maintenance
2656 expense of each item of the cooperative property being visually
2657 inspected, and provide a reserve funding schedule with a
2658 recommended annual reserve amount that achieves the estimated
2659 replacement cost or deferred maintenance expense of each item of
2660 cooperative property being visually inspected by the end of the
2661 estimated remaining useful life of the item. The structural
2662 integrity reserve study may recommend that reserves do not need
2663 to be maintained for any item for which an estimate of useful
2664 life and an estimate of replacement cost cannot be determined,
2665 or the study may recommend a deferred maintenance expense amount
2666 for such item. At a minimum, the structural integrity reserve
2667 study must include a recommendation for a reserve funding
2668 schedule based on a baseline funding plan that provides a
2669 reserve funding goal in which the reserve funding for each
2670 budget year is sufficient to maintain the reserve cash balance
2671 above zero. The study may recommend other types of reserve
2672 funding schedules, provided that each recommended schedule is
2673 sufficient to meet the association’s maintenance obligation.
2674 b. The structural integrity reserve study may recommend
2675 that reserves for replacement costs do not need to be maintained
2676 for any item with an estimated remaining useful life of greater
2677 than 25 years, but the study may recommend a deferred
2678 maintenance expense amount for such item. If the structural
2679 integrity reserve study recommends reserves for any item for
2680 which reserves are not required under this paragraph, the amount
2681 of the recommended reserves for such item must be separately
2682 identified in the structural integrity reserve study as an item
2683 for which reserves are not required under this paragraph.
2684 c. The structural integrity reserve study must take into
2685 consideration the funding method or methods used by the
2686 association to fund its maintenance and reserve funding
2687 obligations through regular assessments, special assessments,
2688 lines of credit, or loans. If the structural integrity reserve
2689 study is performed before the association has approved a special
2690 assessment or secured a line of credit or a loan, the structural
2691 integrity reserve study must be updated to reflect the funding
2692 method selected by the association and its effect on the reserve
2693 funding schedule, including any anticipated change in the amount
2694 of regular assessments. The structural integrity reserve study
2695 may be updated to reflect any changes to the useful life of the
2696 reserve items after such items are repaired or replaced, and the
2697 effect such repair or replacement will have on the reserve
2698 funding schedule. The association must obtain an updated
2699 structural integrity reserve study before adopting any budget in
2700 which the reserve funding from regular assessments, special
2701 assessments, lines of credit, or loans do not align with the
2702 funding plan from the most recent version of the structural
2703 integrity reserve study.
2704 5.4. This paragraph does not apply to buildings less than
2705 three stories in height; single-family, two-family, or three
2706 family dwellings with three or fewer habitable stories above
2707 ground; any portion or component of a building that has not been
2708 submitted to the cooperative form of ownership; or any portion
2709 or component of a building that is maintained by a party other
2710 than the association.
2711 6.5. Before a developer turns over control of an
2712 association to unit owners other than the developer, the
2713 developer must have a turnover inspection report in compliance
2714 with s. 719.301(4)(p) and (q) for each building on the
2715 cooperative property that is three stories or higher in height.
2716 7.6. Associations existing on or before July 1, 2022, which
2717 are controlled by unit owners other than the developer, must
2718 have a structural integrity reserve study completed by December
2719 31, 2024, for each building on the cooperative property that is
2720 three stories or higher in height. An association that is
2721 required to complete a milestone inspection on or before
2722 December 31, 2026, in accordance with s. 553.899 may complete
2723 the structural integrity reserve study simultaneously with the
2724 milestone inspection. In no event may the structural integrity
2725 reserve study be completed after December 31, 2026.
2726 8.7. If the milestone inspection required by s. 553.899, or
2727 an inspection completed for a similar local requirement, was
2728 performed within the past 5 years and meets the requirements of
2729 this paragraph, such inspection may be used in place of the
2730 visual inspection portion of the structural integrity reserve
2731 study.
2732 9. If the association completes a milestone inspection
2733 required by s. 553.899, or an inspection completed for a similar
2734 local requirement, the association may delay performance of a
2735 required structural integrity reserve study for no more than the
2736 2 consecutive budget years immediately following the milestone
2737 inspection in order to allow the association to focus its
2738 financial resources on completing the repair and maintenance
2739 recommendations of the milestone inspection.
2740 10.8. If the officers or directors of an association
2741 willfully and knowingly fail to complete a structural integrity
2742 reserve study pursuant to this paragraph, such failure is a
2743 breach of an officer’s and director’s fiduciary relationship to
2744 the unit owners under s. 719.104(9). An officer or a director of
2745 the association must sign an affidavit acknowledging receipt of
2746 the completed structural integrity reserve study.
2747 11.9. Within 45 days after receiving the structural
2748 integrity reserve study, the association must distribute a copy
2749 of the study to each unit owner or deliver to each unit owner a
2750 notice that the completed study is available for inspection and
2751 copying upon a written request. Distribution of a copy of the
2752 study or notice must be made by United States mail or personal
2753 delivery at the mailing address, property address, or any other
2754 address of the owner provided to fulfill the association’s
2755 notice requirements under this chapter, or by electronic
2756 transmission to the e-mail address or facsimile number provided
2757 to fulfill the association’s notice requirements to unit owners
2758 who previously consented to receive notice by electronic
2759 transmission.
2760 12.10. Within 45 days after receiving the structural
2761 integrity reserve study, the association must provide the
2762 division with a statement indicating that the study was
2763 completed and that the association provided or made available
2764 such study to each unit owner in accordance with this section.
2765 Such statement must be provided to the division in the manner
2766 established by the division using a form posted on the
2767 division’s website.
2768 13. The division shall adopt by rule the form for the
2769 structural integrity reserve study in coordination with the
2770 Florida Building Commission.
2771 Section 13. Subsection (3) of section 719.501, Florida
2772 Statutes, is amended, paragraph (c) is added to subsection (2)
2773 of that section, and subsection (1) of that section is
2774 reenacted, to read:
2775 719.501 Powers and duties of Division of Florida
2776 Condominiums, Timeshares, and Mobile Homes.—
2777 (1) The Division of Florida Condominiums, Timeshares, and
2778 Mobile Homes of the Department of Business and Professional
2779 Regulation, referred to as the “division” in this part, in
2780 addition to other powers and duties prescribed by chapter 718,
2781 has the power to enforce and ensure compliance with this chapter
2782 and adopted rules relating to the development, construction,
2783 sale, lease, ownership, operation, and management of residential
2784 cooperative units; complaints related to the procedural
2785 completion of the structural integrity reserve studies under s.
2786 719.106(1)(k); and complaints related to the procedural
2787 completion of milestone inspections under s. 553.899. In
2788 performing its duties, the division shall have the following
2789 powers and duties:
2790 (a) The division may make necessary public or private
2791 investigations within or outside this state to determine whether
2792 any person has violated this chapter or any rule or order
2793 hereunder, to aid in the enforcement of this chapter, or to aid
2794 in the adoption of rules or forms hereunder.
2795 (b) The division may require or permit any person to file a
2796 statement in writing, under oath or otherwise, as the division
2797 determines, as to the facts and circumstances concerning a
2798 matter to be investigated.
2799 (c) For the purpose of any investigation under this
2800 chapter, the division director or any officer or employee
2801 designated by the division director may administer oaths or
2802 affirmations, subpoena witnesses and compel their attendance,
2803 take evidence, and require the production of any matter which is
2804 relevant to the investigation, including the existence,
2805 description, nature, custody, condition, and location of any
2806 books, documents, or other tangible things and the identity and
2807 location of persons having knowledge of relevant facts or any
2808 other matter reasonably calculated to lead to the discovery of
2809 material evidence. Upon failure by a person to obey a subpoena
2810 or to answer questions propounded by the investigating officer
2811 and upon reasonable notice to all persons affected thereby, the
2812 division may apply to the circuit court for an order compelling
2813 compliance.
2814 (d) Notwithstanding any remedies available to unit owners
2815 and associations, if the division has reasonable cause to
2816 believe that a violation of any provision of this chapter or
2817 related rule has occurred, the division may institute
2818 enforcement proceedings in its own name against a developer,
2819 association, officer, or member of the board, or its assignees
2820 or agents, as follows:
2821 1. The division may permit a person whose conduct or
2822 actions may be under investigation to waive formal proceedings
2823 and enter into a consent proceeding whereby orders, rules, or
2824 letters of censure or warning, whether formal or informal, may
2825 be entered against the person.
2826 2. The division may issue an order requiring the developer,
2827 association, officer, or member of the board, or its assignees
2828 or agents, to cease and desist from the unlawful practice and
2829 take such affirmative action as in the judgment of the division
2830 will carry out the purposes of this chapter. Such affirmative
2831 action may include, but is not limited to, an order requiring a
2832 developer to pay moneys determined to be owed to a condominium
2833 association.
2834 3. The division may bring an action in circuit court on
2835 behalf of a class of unit owners, lessees, or purchasers for
2836 declaratory relief, injunctive relief, or restitution.
2837 4. The division may impose a civil penalty against a
2838 developer or association, or its assignees or agents, for any
2839 violation of this chapter or related rule. The division may
2840 impose a civil penalty individually against any officer or board
2841 member who willfully and knowingly violates a provision of this
2842 chapter, a rule adopted pursuant to this chapter, or a final
2843 order of the division. The term “willfully and knowingly” means
2844 that the division informed the officer or board member that his
2845 or her action or intended action violates this chapter, a rule
2846 adopted under this chapter, or a final order of the division,
2847 and that the officer or board member refused to comply with the
2848 requirements of this chapter, a rule adopted under this chapter,
2849 or a final order of the division. The division, prior to
2850 initiating formal agency action under chapter 120, shall afford
2851 the officer or board member an opportunity to voluntarily comply
2852 with this chapter, a rule adopted under this chapter, or a final
2853 order of the division. An officer or board member who complies
2854 within 10 days is not subject to a civil penalty. A penalty may
2855 be imposed on the basis of each day of continuing violation, but
2856 in no event shall the penalty for any offense exceed $5,000. The
2857 division shall adopt, by rule, penalty guidelines applicable to
2858 possible violations or to categories of violations of this
2859 chapter or rules adopted by the division. The guidelines must
2860 specify a meaningful range of civil penalties for each such
2861 violation of the statute and rules and must be based upon the
2862 harm caused by the violation, upon the repetition of the
2863 violation, and upon such other factors deemed relevant by the
2864 division. For example, the division may consider whether the
2865 violations were committed by a developer or owner-controlled
2866 association, the size of the association, and other factors. The
2867 guidelines must designate the possible mitigating or aggravating
2868 circumstances that justify a departure from the range of
2869 penalties provided by the rules. It is the legislative intent
2870 that minor violations be distinguished from those which endanger
2871 the health, safety, or welfare of the cooperative residents or
2872 other persons and that such guidelines provide reasonable and
2873 meaningful notice to the public of likely penalties that may be
2874 imposed for proscribed conduct. This subsection does not limit
2875 the ability of the division to informally dispose of
2876 administrative actions or complaints by stipulation, agreed
2877 settlement, or consent order. All amounts collected shall be
2878 deposited with the Chief Financial Officer to the credit of the
2879 Division of Florida Condominiums, Timeshares, and Mobile Homes
2880 Trust Fund. If a developer fails to pay the civil penalty, the
2881 division shall thereupon issue an order directing that such
2882 developer cease and desist from further operation until such
2883 time as the civil penalty is paid or may pursue enforcement of
2884 the penalty in a court of competent jurisdiction. If an
2885 association fails to pay the civil penalty, the division shall
2886 thereupon pursue enforcement in a court of competent
2887 jurisdiction, and the order imposing the civil penalty or the
2888 cease and desist order shall not become effective until 20 days
2889 after the date of such order. Any action commenced by the
2890 division shall be brought in the county in which the division
2891 has its executive offices or in the county where the violation
2892 occurred.
2893 (e) The division may prepare and disseminate a prospectus
2894 and other information to assist prospective owners, purchasers,
2895 lessees, and developers of residential cooperatives in assessing
2896 the rights, privileges, and duties pertaining thereto.
2897 (f) The division has authority to adopt rules pursuant to
2898 ss. 120.536(1) and 120.54 to implement and enforce the
2899 provisions of this chapter.
2900 (g) The division shall establish procedures for providing
2901 notice to an association when the division is considering the
2902 issuance of a declaratory statement with respect to the
2903 cooperative documents governing such cooperative community.
2904 (h) The division shall furnish each association which pays
2905 the fees required by paragraph (2)(a) a copy of this act,
2906 subsequent changes to this act on an annual basis, an amended
2907 version of this act as it becomes available from the Secretary
2908 of State’s office on a biennial basis, and the rules adopted
2909 thereto on an annual basis.
2910 (i) The division shall annually provide each association
2911 with a summary of declaratory statements and formal legal
2912 opinions relating to the operations of cooperatives which were
2913 rendered by the division during the previous year.
2914 (j) The division shall adopt uniform accounting principles,
2915 policies, and standards to be used by all associations in the
2916 preparation and presentation of all financial statements
2917 required by this chapter. The principles, policies, and
2918 standards shall take into consideration the size of the
2919 association and the total revenue collected by the association.
2920 (k) The division shall provide training and educational
2921 programs for cooperative association board members and unit
2922 owners. The training may, in the division’s discretion, include
2923 web-based electronic media and live training and seminars in
2924 various locations throughout the state. The division may review
2925 and approve education and training programs for board members
2926 and unit owners offered by providers and shall maintain a
2927 current list of approved programs and providers and make such
2928 list available to board members and unit owners in a reasonable
2929 and cost-effective manner.
2930 (l) The division shall maintain a toll-free telephone
2931 number accessible to cooperative unit owners.
2932 (m) When a complaint is made to the division, the division
2933 shall conduct its inquiry with reasonable dispatch and with due
2934 regard to the interests of the affected parties. Within 30 days
2935 after receipt of a complaint, the division shall acknowledge the
2936 complaint in writing and notify the complainant whether the
2937 complaint is within the jurisdiction of the division and whether
2938 additional information is needed by the division from the
2939 complainant. The division shall conduct its investigation and
2940 shall, within 90 days after receipt of the original complaint or
2941 timely requested additional information, take action upon the
2942 complaint. However, the failure to complete the investigation
2943 within 90 days does not prevent the division from continuing the
2944 investigation, accepting or considering evidence obtained or
2945 received after 90 days, or taking administrative action if
2946 reasonable cause exists to believe that a violation of this
2947 chapter or a rule of the division has occurred. If an
2948 investigation is not completed within the time limits
2949 established in this paragraph, the division shall, on a monthly
2950 basis, notify the complainant in writing of the status of the
2951 investigation. When reporting its action to the complainant, the
2952 division shall inform the complainant of any right to a hearing
2953 pursuant to ss. 120.569 and 120.57.
2954 (n) The division shall develop a program to certify both
2955 volunteer and paid mediators to provide mediation of cooperative
2956 disputes. The division shall provide, upon request, a list of
2957 such mediators to any association, unit owner, or other
2958 participant in arbitration proceedings under s. 718.1255
2959 requesting a copy of the list. The division shall include on the
2960 list of voluntary mediators only persons who have received at
2961 least 20 hours of training in mediation techniques or have
2962 mediated at least 20 disputes. In order to become initially
2963 certified by the division, paid mediators must be certified by
2964 the Supreme Court to mediate court cases in county or circuit
2965 courts. However, the division may adopt, by rule, additional
2966 factors for the certification of paid mediators, which factors
2967 must be related to experience, education, or background. Any
2968 person initially certified as a paid mediator by the division
2969 must, in order to continue to be certified, comply with the
2970 factors or requirements imposed by rules adopted by the
2971 division.
2972 (2)
2973 (c) A cooperative association shall create and maintain an
2974 online account with the division, as required in subsection (3).
2975 (3) On or before October 1, 2025, all cooperative
2976 associations shall create and maintain an online account with
2977 the division and provide information requested by the division
2978 in an electronic format determined by the division. The division
2979 shall adopt rules to implement this subsection. The division may
2980 require cooperative associations to provide such information no
2981 more than once per year, except that the division may require
2982 cooperative associations to update their contact information in
2983 paragraph (a) within 30 days after any change. The division
2984 shall provide a cooperative association at least a 45-day notice
2985 of any requirement to provide any required information after the
2986 cooperative association creates an online account. The
2987 information that the division may require associations to
2988 provide is limited to:
2989 (a) The contact information for the association that
2990 includes all of the following:
2991 1. The name of the association.
2992 2. The physical address of the cooperative property.
2993 3. The mailing address and county of the association.
2994 4. The e-mail address and telephone number for the
2995 association.
2996 5. The name and board title for each member of the
2997 association’s board.
2998 6. The name and contact information of the association’s
2999 community association manager or community association
3000 management firm, if applicable.
3001 7. The hyperlink or website address of the association’s
3002 website, if applicable.
3003 (b) The total number of buildings and for each building in
3004 the association:
3005 1. The total number of stories of each building, including
3006 both habitable and uninhabitable stories.
3007 2. The total number of units.
3008 3. The age of each building based on the certificate of
3009 occupancy.
3010 4. Any construction commenced on the common elements within
3011 the previous calendar year.
3012 (c) The association’s assessments, including the:
3013 1. Amount of assessment or special assessment by unit type,
3014 including reserves.
3015 2. Purpose of the assessment or special assessment.
3016 3. Name of the financial institution or institutions with
3017 which the association maintains accounts.
3018 (d) A copy of any structural integrity reserve study and
3019 any associated materials requested by the department. The
3020 association must provide such materials within 5 business days
3021 after such request, in a manner prescribed by the department.
3022 (a) On or before January 1, 2023, cooperative associations
3023 existing on or before July 1, 2022, must provide the following
3024 information to the division in writing, by e-mail, United States
3025 Postal Service, commercial delivery service, or hand delivery,
3026 at a physical address or e-mail address provided by the division
3027 and on a form posted on the division’s website:
3028 1. The number of buildings on the cooperative property that
3029 are three stories or higher in height.
3030 2. The total number of units in all such buildings.
3031 3. The addresses of all such buildings.
3032 4. The counties in which all such buildings are located.
3033 (b) The division must compile a list of the number of
3034 buildings on cooperative property that are three stories or
3035 higher in height, which is searchable by county, and must post
3036 the list on the division’s website. This list must include all
3037 of the following information:
3038 1. The name of each association with buildings on the
3039 cooperative property that are three stories or higher in height.
3040 2. The number of such buildings on each association’s
3041 property.
3042 3. The addresses of all such buildings.
3043 4. The counties in which all such buildings are located.
3044 (c) An association must provide an update in writing to the
3045 division if there are any changes to the information in the list
3046 under paragraph (b) within 6 months after the change.
3047 Section 14. Paragraph (d) of subsection (1) and paragraphs
3048 (c) and (d) of subsection (2) of section 719.503, Florida
3049 Statutes, are amended, to read:
3050 719.503 Disclosure prior to sale.—
3051 (1) DEVELOPER DISCLOSURE.—
3052 (d) Milestone inspection, turnover inspection report, or
3053 structural integrity reserve study.—If the association is
3054 required to have completed a milestone inspection as described
3055 in s. 553.899, a turnover inspection report for a turnover
3056 inspection performed on or after July 1, 2023, or a structural
3057 integrity reserve study, and the association has not completed
3058 the milestone inspection, the turnover inspection report, or the
3059 structural integrity reserve study, each contract entered into
3060 after December 31, 2024, for the sale of a residential unit
3061 shall contain in conspicuous type a statement indicating that
3062 the association is required to have a milestone inspection, a
3063 turnover inspection report, or a structural integrity reserve
3064 study and has not completed such inspection, report, or study,
3065 as appropriate. If the association is not required to have a
3066 milestone inspection as described in s. 553.899 or a structural
3067 integrity reserve study, each contract entered into after
3068 December 31, 2024, for the sale of a residential unit shall
3069 contain in conspicuous type a statement indicating that the
3070 association is not required to have a milestone inspection or a
3071 structural integrity reserve study, as appropriate. If the
3072 association has completed a milestone inspection as described in
3073 s. 553.899, a turnover inspection report for a turnover
3074 inspection performed on or after July 1, 2023, or a structural
3075 integrity reserve study, each contract entered into after
3076 December 31, 2024, for the sale of a residential unit shall
3077 contain in conspicuous type:
3078 1. A clause which states: THE BUYER HEREBY ACKNOWLEDGES
3079 THAT BUYER HAS BEEN PROVIDED A CURRENT COPY OF THE INSPECTOR
3080 PREPARED SUMMARY OF THE MILESTONE INSPECTION REPORT AS DESCRIBED
3081 IN SECTION 553.899, FLORIDA STATUTES, IF APPLICABLE; A COPY OF
3082 THE TURNOVER INSPECTION REPORT DESCRIBED IN SECTION
3083 719.301(4)(p) AND (q), FLORIDA STATUTES, IF APPLICABLE; AND A
3084 COPY OF THE ASSOCIATION’S MOST RECENT STRUCTURAL INTEGRITY
3085 RESERVE STUDY DESCRIBED IN SECTIONS 719.103(24) AND
3086 719.106(1)(k), FLORIDA STATUTES, IF APPLICABLE, MORE THAN 15
3087 DAYS, EXCLUDING SATURDAYS, SUNDAYS, AND LEGAL HOLIDAYS, BEFORE
3088 PRIOR TO EXECUTION OF THIS CONTRACT; and
3089 2. A clause which states: THIS AGREEMENT IS VOIDABLE BY
3090 BUYER BY DELIVERING WRITTEN NOTICE OF THE BUYER’S INTENTION TO
3091 CANCEL WITHIN 15 DAYS, EXCLUDING SATURDAYS, SUNDAYS, AND LEGAL
3092 HOLIDAYS, AFTER THE DATE OF EXECUTION OF THIS AGREEMENT BY THE
3093 BUYER AND RECEIPT BY BUYER OF A CURRENT COPY OF THE INSPECTOR
3094 PREPARED SUMMARY OF THE MILESTONE INSPECTION REPORT AS DESCRIBED
3095 IN SECTION 553.899, FLORIDA STATUTES, IF APPLICABLE; A COPY OF
3096 THE TURNOVER INSPECTION REPORT DESCRIBED IN SECTION
3097 719.301(4)(p) AND (q), FLORIDA STATUTES, IF APPLICABLE; AND A
3098 COPY OF THE ASSOCIATION’S MOST RECENT STRUCTURAL INTEGRITY
3099 RESERVE STUDY DESCRIBED IN SECTIONS 719.103(24) AND
3100 719.106(1)(k), FLORIDA STATUTES, IF APPLICABLE. ANY PURPORTED
3101 WAIVER OF THESE VOIDABILITY RIGHTS SHALL BE OF NO EFFECT. BUYER
3102 MAY EXTEND THE TIME FOR CLOSING FOR A PERIOD OF NOT MORE THAN 15
3103 DAYS, EXCLUDING SATURDAYS, SUNDAYS, AND LEGAL HOLIDAYS, AFTER
3104 THE BUYER RECEIVES A CURRENT COPY OF THE INSPECTOR-PREPARED
3105 SUMMARY OF THE MILESTONE INSPECTION REPORT AS DESCRIBED IN
3106 SECTION 553.899, FLORIDA STATUTES; A COPY OF THE TURNOVER
3107 INSPECTION REPORT DESCRIBED IN SECTION 719.301(4)(p) AND (q),
3108 FLORIDA STATUTES; OR A COPY OF THE ASSOCIATION’S MOST RECENT
3109 STRUCTURAL INTEGRITY RESERVE STUDY DESCRIBED IN SECTIONS
3110 719.103(24) AND 719.106(1)(k), FLORIDA STATUTES, IF REQUESTED IN
3111 WRITING. BUYER’S RIGHT TO VOID THIS AGREEMENT SHALL TERMINATE AT
3112 CLOSING.
3113
3114 A contract that does not conform to the requirements of this
3115 paragraph is voidable at the option of the purchaser before
3116 prior to closing.
3117 (2) NONDEVELOPER DISCLOSURE.—
3118 (c) Each contract entered into after July 1, 1992, for the
3119 resale of an interest in a cooperative shall contain in
3120 conspicuous type either:
3121 1. A clause which states: THE BUYER HEREBY ACKNOWLEDGES
3122 THAT BUYER HAS BEEN PROVIDED A CURRENT COPY OF THE ARTICLES OF
3123 INCORPORATION OF THE ASSOCIATION, BYLAWS, RULES OF THE
3124 ASSOCIATION, AND THE QUESTION AND ANSWER SHEET MORE THAN 7 3
3125 DAYS, EXCLUDING SATURDAYS, SUNDAYS, AND LEGAL HOLIDAYS, BEFORE
3126 PRIOR TO EXECUTION OF THIS CONTRACT; or
3127 2. A clause which states: THIS AGREEMENT IS VOIDABLE BY
3128 BUYER BY DELIVERING WRITTEN NOTICE OF THE BUYER’S INTENTION TO
3129 CANCEL WITHIN 7 3 DAYS, EXCLUDING SATURDAYS, SUNDAYS, AND LEGAL
3130 HOLIDAYS, AFTER THE DATE OF EXECUTION OF THIS AGREEMENT BY THE
3131 BUYER AND RECEIPT BY BUYER OF A CURRENT COPY OF THE ARTICLES OF
3132 INCORPORATION, BYLAWS, AND RULES OF THE ASSOCIATION, AND
3133 QUESTION AND ANSWER SHEET, IF SO REQUESTED IN WRITING. ANY
3134 PURPORTED WAIVER OF THESE VOIDABILITY RIGHTS SHALL BE OF NO
3135 EFFECT. BUYER MAY EXTEND THE TIME FOR CLOSING FOR A PERIOD OF
3136 NOT MORE THAN 7 3 DAYS, EXCLUDING SATURDAYS, SUNDAYS, AND LEGAL
3137 HOLIDAYS, AFTER THE BUYER RECEIVES THE ARTICLES OF
3138 INCORPORATION, BYLAWS, RULES, AND QUESTION AND ANSWER SHEET, IF
3139 REQUESTED IN WRITING. BUYER’S RIGHT TO VOID THIS AGREEMENT SHALL
3140 TERMINATE AT CLOSING.
3141
3142 A contract that does not conform to the requirements of this
3143 paragraph is voidable at the option of the purchaser before
3144 prior to closing.
3145 (d) If the association is required to have completed a
3146 milestone inspection as described in s. 553.899, a turnover
3147 inspection report for a turnover inspection performed on or
3148 after July 1, 2023, or a structural integrity reserve study, and
3149 the association has not completed the milestone inspection, the
3150 turnover inspection report, or the structural integrity reserve
3151 study, each contract entered into after December 31, 2024, for
3152 the sale of a residential unit shall contain in conspicuous type
3153 a statement indicating that the association is required to have
3154 a milestone inspection, a turnover inspection report, or a
3155 structural integrity reserve study and has not completed such
3156 inspection, report, or study, as appropriate. If the association
3157 is not required to have a milestone inspection as described in
3158 s. 553.899 or a structural integrity reserve study, each
3159 contract entered into after December 31, 2024, for the sale of a
3160 residential unit shall contain in conspicuous type a statement
3161 indicating that the association is not required to have a
3162 milestone inspection or a structural integrity reserve study, as
3163 appropriate. If the association has completed a milestone
3164 inspection as described in s. 553.899, a turnover inspection
3165 report for a turnover inspection performed on or after July 1,
3166 2023, or a structural integrity reserve study, each contract
3167 entered into after December 31, 2024, for the resale of a
3168 residential unit shall contain in conspicuous type:
3169 1. A clause which states: THE BUYER HEREBY ACKNOWLEDGES
3170 THAT BUYER HAS BEEN PROVIDED A CURRENT COPY OF THE INSPECTOR
3171 PREPARED SUMMARY OF THE MILESTONE INSPECTION REPORT AS DESCRIBED
3172 IN SECTION 553.899, FLORIDA STATUTES, IF APPLICABLE; A COPY OF
3173 THE TURNOVER INSPECTION REPORT DESCRIBED IN SECTION
3174 719.301(4)(p) AND (q), FLORIDA STATUTES, IF APPLICABLE; AND A
3175 COPY OF THE ASSOCIATION’S MOST RECENT STRUCTURAL INTEGRITY
3176 RESERVE STUDY DESCRIBED IN SECTIONS 719.103(24) AND
3177 719.106(1)(k), FLORIDA STATUTES, IF APPLICABLE, MORE THAN 7 3
3178 DAYS, EXCLUDING SATURDAYS, SUNDAYS, AND LEGAL HOLIDAYS, BEFORE
3179 PRIOR TO EXECUTION OF THIS CONTRACT; and
3180 2. A clause which states: THIS AGREEMENT IS VOIDABLE BY
3181 BUYER BY DELIVERING WRITTEN NOTICE OF THE BUYER’S INTENTION TO
3182 CANCEL WITHIN 7 3 DAYS, EXCLUDING SATURDAYS, SUNDAYS, AND LEGAL
3183 HOLIDAYS, AFTER THE DATE OF EXECUTION OF THIS AGREEMENT BY THE
3184 BUYER AND RECEIPT BY BUYER OF A CURRENT COPY OF THE INSPECTOR
3185 PREPARED SUMMARY OF THE MILESTONE INSPECTION REPORT AS DESCRIBED
3186 IN SECTION 553.899, FLORIDA STATUTES, IF APPLICABLE; A COPY OF
3187 THE TURNOVER INSPECTION REPORT DESCRIBED IN SECTION
3188 719.301(4)(p) AND (q), FLORIDA STATUTES, IF APPLICABLE; AND A
3189 COPY OF THE ASSOCIATION’S MOST RECENT STRUCTURAL INTEGRITY
3190 RESERVE STUDY DESCRIBED IN SECTIONS 719.103(24) AND
3191 719.106(1)(k), FLORIDA STATUTES, IF APPLICABLE. ANY PURPORTED
3192 WAIVER OF THESE VOIDABILITY RIGHTS SHALL BE OF NO EFFECT. BUYER
3193 MAY EXTEND THE TIME FOR CLOSING FOR A PERIOD OF NOT MORE THAN 7
3194 3 DAYS, EXCLUDING SATURDAYS, SUNDAYS, AND LEGAL HOLIDAYS, AFTER
3195 THE BUYER RECEIVES A CURRENT COPY OF THE INSPECTOR-PREPARED
3196 SUMMARY OF THE MILESTONE INSPECTION REPORT AS DESCRIBED IN
3197 SECTION 553.899, FLORIDA STATUTES; A COPY OF THE TURNOVER
3198 INSPECTION REPORT DESCRIBED IN SECTION 719.301(4)(p) AND (q),
3199 FLORIDA STATUTES; OR A COPY OF THE ASSOCIATION’S MOST RECENT
3200 STRUCTURAL INTEGRITY RESERVE STUDY DESCRIBED IN SECTIONS
3201 719.103(24) AND 719.106(1)(k), FLORIDA STATUTES, IF REQUESTED IN
3202 WRITING. BUYER’S RIGHT TO VOID THIS AGREEMENT SHALL TERMINATE AT
3203 CLOSING.
3204
3205 A contract that does not conform to the requirements of this
3206 paragraph is voidable at the option of the purchaser before
3207 prior to closing.
3208 Section 15. Subsection (3) of section 914.21, Florida
3209 Statutes, is amended to read:
3210 914.21 Definitions.—As used in ss. 914.22-914.24, the term:
3211 (3) “Official investigation” means any investigation
3212 instituted by a law enforcement agency or prosecuting officer of
3213 the state or a political subdivision of the state or the
3214 Commission on Ethics or the Division of Florida Condominiums,
3215 Timeshares, and Mobile Homes of the Department of Business and
3216 Professional Regulation.
3217 Section 16. For the 2025-2026 fiscal year, the recurring
3218 sum of $150,000 and nonrecurring sum of $100,000 is appropriated
3219 from the Professional Regulation Trust Fund to the Department of
3220 Business and Professional Regulation to contract with the
3221 University of Florida to implement s. 553.899(3)(f), Florida
3222 Statutes, as amended by this act. The unexpended balance of
3223 nonrecurring funds provided by this section shall revert and is
3224 appropriated for the same purpose for the 2026-2027 fiscal year.
3225 Section 17. For the purpose of incorporating the amendment
3226 made by this act to section 718.111, Florida Statutes, in a
3227 reference thereto, paragraph (e) of subsection (3) of section
3228 721.13, Florida Statutes, is reenacted to read:
3229 721.13 Management.—
3230 (3) The duties of the managing entity include, but are not
3231 limited to:
3232 (e) Arranging for an annual audit of the financial
3233 statements of the timeshare plan by a certified public
3234 accountant licensed by the Board of Accountancy of the
3235 Department of Business and Professional Regulation, in
3236 accordance with generally accepted auditing standards as defined
3237 by the rules of the Board of Accountancy of the Department of
3238 Business and Professional Regulation. The financial statements
3239 required by this section must be prepared on an accrual basis
3240 using fund accounting, and must be presented in accordance with
3241 generally accepted accounting principles. A copy of the audited
3242 financial statements must be filed with the division for review
3243 and forwarded to the board of directors and officers of the
3244 owners’ association, if one exists, no later than 5 calendar
3245 months after the end of the timeshare plan’s fiscal year. If no
3246 owners’ association exists, each purchaser must be notified, no
3247 later than 5 months after the end of the timeshare plan’s fiscal
3248 year, that a copy of the audited financial statements is
3249 available upon request to the managing entity. Notwithstanding
3250 any requirement of s. 718.111(13) or s. 719.104(4), the audited
3251 financial statements required by this section are the only
3252 annual financial reporting requirements for timeshare
3253 condominiums or timeshare cooperatives.
3254 Section 18. For the purpose of incorporating the amendment
3255 made by this act to section 718.112, Florida Statutes, in
3256 references thereto, paragraph (a) of subsection (7) and
3257 paragraph (c) of subsection (21) of section 718.504, Florida
3258 Statutes, are reenacted to read:
3259 718.504 Prospectus or offering circular.—Every developer of
3260 a residential condominium which contains more than 20
3261 residential units, or which is part of a group of residential
3262 condominiums which will be served by property to be used in
3263 common by unit owners of more than 20 residential units, shall
3264 prepare a prospectus or offering circular and file it with the
3265 Division of Florida Condominiums, Timeshares, and Mobile Homes
3266 prior to entering into an enforceable contract of purchase and
3267 sale of any unit or lease of a unit for more than 5 years and
3268 shall furnish a copy of the prospectus or offering circular to
3269 each buyer. In addition to the prospectus or offering circular,
3270 each buyer shall be furnished a separate page entitled
3271 “Frequently Asked Questions and Answers,” which shall be in
3272 accordance with a format approved by the division and a copy of
3273 the financial information required by s. 718.111. This page
3274 shall, in readable language, inform prospective purchasers
3275 regarding their voting rights and unit use restrictions,
3276 including restrictions on the leasing of a unit; shall indicate
3277 whether and in what amount the unit owners or the association is
3278 obligated to pay rent or land use fees for recreational or other
3279 commonly used facilities; shall contain a statement identifying
3280 that amount of assessment which, pursuant to the budget, would
3281 be levied upon each unit type, exclusive of any special
3282 assessments, and which shall further identify the basis upon
3283 which assessments are levied, whether monthly, quarterly, or
3284 otherwise; shall state and identify any court cases in which the
3285 association is currently a party of record in which the
3286 association may face liability in excess of $100,000; shall
3287 state whether the condominium is created within a portion of a
3288 building or within a multiple parcel building; and which shall
3289 further state whether membership in a recreational facilities
3290 association is mandatory, and if so, shall identify the fees
3291 currently charged per unit type. The division shall by rule
3292 require such other disclosure as in its judgment will assist
3293 prospective purchasers. The prospectus or offering circular may
3294 include more than one condominium, although not all such units
3295 are being offered for sale as of the date of the prospectus or
3296 offering circular. The prospectus or offering circular must
3297 contain the following information:
3298 (7) A description of the recreational and other facilities
3299 that will be used in common with other condominiums, community
3300 associations, or planned developments which require the payment
3301 of the maintenance and expenses of such facilities, directly or
3302 indirectly, by the unit owners. The description shall include,
3303 but not be limited to, the following:
3304 (a) Each building and facility committed to be built and a
3305 summary description of the structural integrity of each building
3306 for which reserves are required pursuant to s. 718.112(2)(g).
3307
3308 Descriptions shall include location, areas, capacities, numbers,
3309 volumes, or sizes and may be stated as approximations or
3310 minimums.
3311 (21) An estimated operating budget for the condominium and
3312 the association, and a schedule of the unit owner’s expenses
3313 shall be attached as an exhibit and shall contain the following
3314 information:
3315 (c) The estimated items of expenses of the condominium and
3316 the association, except as excluded under paragraph (b),
3317 including, but not limited to, the following items, which shall
3318 be stated as an association expense collectible by assessments
3319 or as unit owners’ expenses payable to persons other than the
3320 association:
3321 1. Expenses for the association and condominium:
3322 a. Administration of the association.
3323 b. Management fees.
3324 c. Maintenance.
3325 d. Rent for recreational and other commonly used
3326 facilities.
3327 e. Taxes upon association property.
3328 f. Taxes upon leased areas.
3329 g. Insurance.
3330 h. Security provisions.
3331 i. Other expenses.
3332 j. Operating capital.
3333 k. Reserves for all applicable items referenced in s.
3334 718.112(2)(g).
3335 l. Fees payable to the division.
3336 2. Expenses for a unit owner:
3337 a. Rent for the unit, if subject to a lease.
3338 b. Rent payable by the unit owner directly to the lessor or
3339 agent under any recreational lease or lease for the use of
3340 commonly used facilities, which use and payment is a mandatory
3341 condition of ownership and is not included in the common expense
3342 or assessments for common maintenance paid by the unit owners to
3343 the association.
3344 Section 19. For the purpose of incorporating the amendment
3345 made by this act to section 718.112, Florida Statutes, in
3346 references thereto, paragraph (d) of subsection (1) of section
3347 718.618, Florida Statutes, is reenacted to read:
3348 718.618 Converter reserve accounts; warranties.—
3349 (1) When existing improvements are converted to ownership
3350 as a residential condominium, the developer shall establish
3351 converter reserve accounts for capital expenditures and deferred
3352 maintenance, or give warranties as provided by subsection (6),
3353 or post a surety bond as provided by subsection (7). The
3354 developer shall fund the converter reserve accounts in amounts
3355 calculated as follows:
3356 (d) In addition to establishing the reserve accounts
3357 specified above, the developer shall establish those other
3358 reserve accounts required by s. 718.112(2)(f), and shall fund
3359 those accounts in accordance with the formula provided therein.
3360 The vote to waive or reduce the funding or reserves required by
3361 s. 718.112(2)(f) does not affect or negate the obligations
3362 arising under this section.
3363 Section 20. For the purpose of incorporating the amendment
3364 made by this act to sections 718.111, 718.112, and 718.503,
3365 Florida Statutes, in references thereto, subsections (1) and (3)
3366 of section 718.706, Florida Statutes, are reenacted to read:
3367 718.706 Specific provisions pertaining to offering of units
3368 by a bulk assignee or bulk buyer.—
3369 (1) Before offering more than seven units in a single
3370 condominium for sale or for lease for a term exceeding 5 years,
3371 a bulk assignee or a bulk buyer must file the following
3372 documents with the division and provide such documents to a
3373 prospective purchaser or tenant:
3374 (a) An updated prospectus or offering circular, or a
3375 supplement to the prospectus or offering circular, filed by the
3376 original developer prepared in accordance with s. 718.504, which
3377 must include the form of contract for sale and for lease in
3378 compliance with s. 718.503(2);
3379 (b) An updated Frequently Asked Questions and Answers
3380 sheet;
3381 (c) The executed escrow agreement if required under s.
3382 718.202; and
3383 (d) The financial information required by s. 718.111(13).
3384 However, if a financial information report did not exist before
3385 the acquisition of title by the bulk assignee or bulk buyer, and
3386 if accounting records that permit preparation of the required
3387 financial information report for that period cannot be obtained
3388 despite good faith efforts by the bulk assignee or the bulk
3389 buyer, the bulk assignee or bulk buyer is excused from the
3390 requirement of this paragraph. However, the bulk assignee or
3391 bulk buyer must include in the purchase contract the following
3392 statement in conspicuous type:
3393
3394 ALL OR A PORTION OF THE FINANCIAL INFORMATION REPORT
3395 REQUIRED UNDER S. 718.111(13) FOR THE TIME PERIOD
3396 BEFORE THE SELLER’S ACQUISITION OF THE UNIT IS NOT
3397 AVAILABLE OR CANNOT BE OBTAINED DESPITE THE GOOD FAITH
3398 EFFORTS OF THE SELLER.
3399
3400 (3) A bulk assignee, while in control of the board of
3401 administration of the association, may not authorize, on behalf
3402 of the association:
3403 (a) The waiver of reserves or the reduction of funding of
3404 the reserves pursuant to s. 718.112(2)(f)2., unless approved by
3405 a majority of the voting interests not controlled by the
3406 developer, bulk assignee, and bulk buyer; or
3407 (b) The use of reserve expenditures for other purposes
3408 pursuant to s. 718.112(2)(f)3., unless approved by a majority of
3409 the voting interests not controlled by the developer, bulk
3410 assignee, and bulk buyer.
3411 Section 21. For the purpose of incorporating the amendment
3412 made by this act to section 719.106, Florida Statutes, in a
3413 reference thereto, subsection (24) of section 719.103, Florida
3414 Statutes, is reenacted to read:
3415 719.103 Definitions.—As used in this chapter:
3416 (24) “Structural integrity reserve study” means a study of
3417 the reserve funds required for future major repairs and
3418 replacement of the cooperative property performed as required
3419 under s. 719.106(1)(k).
3420 Section 22. For the purpose of incorporating the amendment
3421 made by this act to section 719.106, Florida Statutes, in
3422 references thereto, paragraph (a) of subsection (7) and
3423 paragraph (c) of subsection (20) of section 719.504, Florida
3424 Statutes, are reenacted to read:
3425 719.504 Prospectus or offering circular.—Every developer of
3426 a residential cooperative which contains more than 20
3427 residential units, or which is part of a group of residential
3428 cooperatives which will be served by property to be used in
3429 common by unit owners of more than 20 residential units, shall
3430 prepare a prospectus or offering circular and file it with the
3431 Division of Florida Condominiums, Timeshares, and Mobile Homes
3432 prior to entering into an enforceable contract of purchase and
3433 sale of any unit or lease of a unit for more than 5 years and
3434 shall furnish a copy of the prospectus or offering circular to
3435 each buyer. In addition to the prospectus or offering circular,
3436 each buyer shall be furnished a separate page entitled
3437 “Frequently Asked Questions and Answers,” which must be in
3438 accordance with a format approved by the division. This page
3439 must, in readable language: inform prospective purchasers
3440 regarding their voting rights and unit use restrictions,
3441 including restrictions on the leasing of a unit; indicate
3442 whether and in what amount the unit owners or the association is
3443 obligated to pay rent or land use fees for recreational or other
3444 commonly used facilities; contain a statement identifying that
3445 amount of assessment which, pursuant to the budget, would be
3446 levied upon each unit type, exclusive of any special
3447 assessments, and which identifies the basis upon which
3448 assessments are levied, whether monthly, quarterly, or
3449 otherwise; state and identify any court cases in which the
3450 association is currently a party of record in which the
3451 association may face liability in excess of $100,000; and state
3452 whether membership in a recreational facilities association is
3453 mandatory and, if so, identify the fees currently charged per
3454 unit type. The division shall by rule require such other
3455 disclosure as in its judgment will assist prospective
3456 purchasers. The prospectus or offering circular may include more
3457 than one cooperative, although not all such units are being
3458 offered for sale as of the date of the prospectus or offering
3459 circular. The prospectus or offering circular must contain the
3460 following information:
3461 (7) A description of the recreational and other facilities
3462 that will be used in common with other cooperatives, community
3463 associations, or planned developments which require the payment
3464 of the maintenance and expenses of such facilities, directly or
3465 indirectly, by the unit owners. The description shall include,
3466 but not be limited to, the following:
3467 (a) Each building and facility committed to be built and a
3468 summary description of the structural integrity of each building
3469 for which reserves are required pursuant to s. 719.106(1)(k).
3470
3471 Descriptions shall include location, areas, capacities, numbers,
3472 volumes, or sizes and may be stated as approximations or
3473 minimums.
3474 (20) An estimated operating budget for the cooperative and
3475 the association, and a schedule of the unit owner’s expenses
3476 shall be attached as an exhibit and shall contain the following
3477 information:
3478 (c) The estimated items of expenses of the cooperative and
3479 the association, except as excluded under paragraph (b),
3480 including, but not limited to, the following items, which shall
3481 be stated as an association expense collectible by assessments
3482 or as unit owners’ expenses payable to persons other than the
3483 association:
3484 1. Expenses for the association and cooperative:
3485 a. Administration of the association.
3486 b. Management fees.
3487 c. Maintenance.
3488 d. Rent for recreational and other commonly used areas.
3489 e. Taxes upon association property.
3490 f. Taxes upon leased areas.
3491 g. Insurance.
3492 h. Security provisions.
3493 i. Other expenses.
3494 j. Operating capital.
3495 k. Reserves for all applicable items referenced in s.
3496 719.106(1)(k).
3497 l. Fee payable to the division.
3498 2. Expenses for a unit owner:
3499 a. Rent for the unit, if subject to a lease.
3500 b. Rent payable by the unit owner directly to the lessor or
3501 agent under any recreational lease or lease for the use of
3502 commonly used areas, which use and payment are a mandatory
3503 condition of ownership and are not included in the common
3504 expense or assessments for common maintenance paid by the unit
3505 owners to the association.
3506 Section 23. Except as otherwise provided in this act, this
3507 act shall take effect July 1, 2025.
3508
3509 ================= T I T L E A M E N D M E N T ================
3510 And the title is amended as follows:
3511 Delete everything before the enacting clause
3512 and insert:
3513 A bill to be entitled
3514 An act relating to condominium and cooperative
3515 associations; amending s. 468.432, F.S.; prohibiting a
3516 person whose community association manager license is
3517 revoked from having an indirect or direct ownership
3518 interest in, or be an employee, partner, officer,
3519 director, or trustee of, a community association
3520 management firm for a specified timeframe; requiring a
3521 licensee to create and maintain an online licensure
3522 account with the Department of Business and
3523 Professional Regulation; requiring a community
3524 association manager to identify on his or her online
3525 licensure account certain information; requiring a
3526 licensee to provide specific information on his or her
3527 online licensure account; requiring that such
3528 information be updated within a specified timeframe;
3529 requiring a community association management firm to
3530 identify on its online licensure account the community
3531 association managers that it employs to provide
3532 community association management services; requiring
3533 the department to give written notice to the community
3534 association management firm and the community
3535 association if the community association manager has
3536 his or her license suspended or revoked; amending s.
3537 468.4334, F.S.; prohibiting a community association
3538 manager or a community association management firm
3539 from knowingly performing any act directed by the
3540 community association if such act violates any state
3541 or federal law; revising the contractual obligations a
3542 community association manager or a community
3543 association management firm has with the association
3544 board; requiring that such contract include a certain
3545 statement, if applicable to the type of management
3546 services provided in the contract; prohibiting such
3547 contracts from waiving or limiting certain
3548 professional practice standards; requiring a community
3549 association to include specified information on its
3550 website or mobile application, if such association is
3551 required to maintain official records on a website or
3552 application; conforming provisions to changes made by
3553 the act; amending s. 553.899, F.S.; requiring the
3554 local enforcement agency responsible for milestone
3555 inspections to provide to the Department of Business
3556 and Professional Regulation in an electronic format
3557 certain information; specifying what information is to
3558 be provided to the department; requiring the
3559 department to contract with the University of Florida
3560 for the creation of a report that provides certain
3561 information on milestone inspections during a
3562 specified timeframe; requiring a local enforcement
3563 agency to provide the university with certain
3564 information; authorizing the university to request any
3565 additional information from a local enforcement agency
3566 required to complete the report; requiring the
3567 university to compile the report and the department to
3568 transmit the report to the Governor and the
3569 Legislature; requiring, rather than authorizing, the
3570 board of county commissioners or a municipal governing
3571 body to adopt a specified ordinance; requiring
3572 specified professionals who bid to perform a
3573 structural integrity reserve study to disclose to the
3574 association in writing their intent to bid on services
3575 related to any maintenance, repair, or replacement
3576 that may be recommended by the structural integrity
3577 reserve study; prohibiting such professionals from
3578 having any interest in or being related to any person
3579 having any interest in the firm or entity providing
3580 the association’s structural integrity reserve study
3581 unless such relationship is disclosed in writing;
3582 defining the term “relative”; providing that a
3583 contract for services is voidable and terminates upon
3584 the association filing a written notice terminating
3585 such a contract if such professionals fail to provide
3586 a written disclosure of such relationship with the
3587 firm conducting the structural integrity reserve
3588 study; providing that such professionals may be
3589 subject to discipline for failure to provide such
3590 written disclosure; amending s. 718.103, F.S.;
3591 revising the definition of the term “alternative
3592 funding method”; defining the term “videoconference”;
3593 amending s. 718.111, F.S.; requiring a community
3594 association manager or a community association
3595 management firm that contracts with a community
3596 association to possess specific licenses; providing
3597 that all board members or officers of a community
3598 association that contracts with a community
3599 association manager or a community association
3600 management firm have a duty to ensure that the
3601 community association manager or community association
3602 management firm is properly licensed before entering
3603 into a contract; authorizing a community association
3604 to terminate a contract with a community association
3605 manager or a community association management firm if
3606 the manager’s or management firm’s license is
3607 suspended or revoked during the term of the contract;
3608 providing that a community association has no further
3609 contractual obligations to a community association
3610 management firm if such firm has its license suspended
3611 or revoked, effective upon the date of the license
3612 suspension or revocation; revising what items
3613 constitute the official records of the association;
3614 requiring that certain documents be posted on certain
3615 associations’ websites or made available for download
3616 through an application on a mobile device within a
3617 specified timeframe; revising what documents must be
3618 posted in digital format on the association’s website
3619 or application; revising the timeframe in which the
3620 association must deliver a copy of the most recent
3621 financial report or a notice that a copy of the most
3622 recent financial report; revising the methods of
3623 delivery for a copy of the most recent association
3624 financial report to include electronic delivery via
3625 the Internet; requiring that an officer or a director
3626 execute an affidavit as evidence of compliance with
3627 the delivery requirement; revising how financial
3628 reports are prepared; requiring an association board
3629 to use best efforts to make prudent investment
3630 decisions in fulfilling its duty to manage operating
3631 and reserve funds of the association; authorizing an
3632 association, including a multicondominium association,
3633 to invest reserve funds in specified financial
3634 institutions; authorizing such associations to place
3635 reserve funds in other investments upon a majority
3636 vote of the voting interests of the association;
3637 providing restrictions; prohibiting any funds not
3638 identified as reserve funds from being used for
3639 investments; requiring a board to create an investment
3640 committee composed of a specified minimum number of
3641 board members; requiring the board to adopt rules;
3642 requiring that all meetings of the investment
3643 committee be recorded and made part of the official
3644 records of the association; requiring that the
3645 investment policy statement developed pursuant to
3646 certain provisions address specified issues; requiring
3647 the investment committee to recommend investment
3648 advisers to the board; requiring the board to select
3649 one of the recommended investment advisers to provide
3650 services to the association; requiring that such
3651 advisers be registered; prohibiting an investment
3652 adviser from being related to any board member,
3653 community management company, reserve study provider,
3654 or co-owner of a unit with a board member or
3655 investment committee member; requiring investment
3656 advisers to comply with the prudent investor rule;
3657 requiring an adviser to act as a fiduciary to the
3658 association; providing that the investment and
3659 fiduciary standards required by the act take
3660 precedence over any conflicting law; requiring the
3661 investment committee to recommend a replacement
3662 adviser if the committee determines that an investment
3663 adviser is not meeting requirements; requiring the
3664 association to provide the investment adviser with
3665 specified financial information at least once each
3666 calendar year, or sooner if a substantial financial
3667 obligation of the association becomes known to the
3668 board; requiring the investment adviser to annually
3669 review such financial information and provide the
3670 association with a portfolio allocation model that is
3671 suitably structured and prudently designed to match
3672 projected annual reserve fund requirements and
3673 liability, assets, and liquidity requirements;
3674 requiring the investment adviser to prepare a funding
3675 projection for each reserve component, including any
3676 of the component’s redundancies; requiring that a
3677 specified minimum timeframe of projected reserves in
3678 cash or cash equivalents be available to the
3679 association; authorizing a portfolio managed by an
3680 investment adviser to contain any type of investment
3681 necessary to meet the objectives in the investment
3682 policy statement; providing exceptions; requiring that
3683 any funds invested by the investment adviser be held
3684 in third-party custodial accounts that are subject to
3685 insurance coverage by the Securities Investor
3686 Protection Corporation in an amount equal to or
3687 greater than the invested amount; authorizing the
3688 investment adviser to withdraw investment fees,
3689 expenses, and commissions from invested funds;
3690 requiring the investment adviser to annually provide
3691 the association with a written certification of
3692 compliance with certain provisions and provide the
3693 association with a list of certain stocks, securities,
3694 and other obligations; requiring the investment
3695 adviser to submit monthly, quarterly, and annual
3696 reports to the association, prepared in accordance
3697 with established financial industry standards;
3698 requiring that any principal, earnings, or interest
3699 managed be available to the association at no cost
3700 within a specified timeframe after the association’s
3701 written or electronic request; requiring that
3702 unallocated income earned on reserve fund investments
3703 be spent only on specified expenditures; amending s.
3704 718.112, F.S.; authorizing an association board
3705 meeting to be conducted in person or by
3706 videoconference; requiring the Division of Florida
3707 Condominiums, Timeshares, and Mobile Homes to adopt
3708 rules; requiring that notice for board meetings
3709 conducted via videoconference contain specific
3710 information; requiring that such meetings be recorded
3711 and maintained as an official record of the
3712 association; revising how notice may be sent to unit
3713 owners; revising the distance from the condominium
3714 property within which a unit owner meeting must be
3715 held; authorizing a unit owner to vote electronically
3716 if the unit owner meeting is conducted via
3717 videoconference; authorizing unit owner meetings to be
3718 conducted in person or via videoconference; specifying
3719 what constitutes a quorum for meetings held via
3720 videoconference; requiring that the location of the
3721 meeting be provided in the association bylaws or
3722 within a specified distance from the condominium
3723 property if the bylaws are silent; requiring that
3724 meetings held via videoconference be recorded and be
3725 maintained as an official record of the association;
3726 requiring the division to adopt rules; revising the
3727 method of serving notices of unit owner meetings;
3728 authorizing budget meetings to be conducted via
3729 videoconference; requiring the division to adopt
3730 rules; requiring that a sound transmitting device be
3731 used at such meetings for a specified purpose;
3732 revising a provision that a board proposing a budget
3733 that requires a certain special assessment against
3734 unit owners to simultaneously propose a substitute
3735 budget that meets certain requirements, rather than
3736 conduct a special meeting of the unit owners to
3737 consider a substitute budget after the adoption of the
3738 annual budget; requiring unit owners, rather than
3739 authorizing them, to consider a substitute budget;
3740 authorizing the annual budget initially proposed to be
3741 adopted by the board; revising the criteria used in
3742 determining whether assessments exceed the specified
3743 percentage of assessments of the previous fiscal year;
3744 revising the threshold for deferred maintenance
3745 expenses or replacements in reserve accounts;
3746 authorizing the members to vote to waive the
3747 maintenance of reserves recommended in the most recent
3748 structural integrity reserve study under certain
3749 circumstances; revising the provision that any
3750 association, rather than an association operating a
3751 multicondominium, may determine to provide no reserves
3752 or less reserves than required if an alternative
3753 funding method is used by the association; deleting
3754 the requirement that the division approve the funding
3755 method; providing that specified reserves may be
3756 funded by regular assessments, special assessments,
3757 lines of credit, or loans under certain circumstances;
3758 authorizing a unit-owner-controlled association that
3759 is required to have a structural reserve study to
3760 obtain a line of credit or a loan to fund capital
3761 expenses required by a milestone inspection or a
3762 structural integrity reserve study; requiring that
3763 such line of credit or loan be approved by a majority
3764 of the total voting interests of the association;
3765 requiring that such line of credit or loan be
3766 sufficient to fund the cumulative amount of any
3767 previously waived or unfunded portions of the reserve
3768 funding amount and the most recent structural
3769 integrity reserve study; requiring that funding from
3770 the line of credit or loan be immediately available
3771 for access by the board for a specified purpose;
3772 requiring that such lines of credit or loans be
3773 included in the association’s financial report;
3774 deleting a requirement that the majority of the
3775 members must approve of the board pausing
3776 contributions to the association’s reserves for a
3777 specified purpose; authorizing the board to
3778 temporarily pause reserve fund contributions or reduce
3779 the amount of reserve funding for a specified purpose
3780 for a budget adopted on or before a specified date if
3781 the association has completed a milestone inspection
3782 within a specified timeframe and such inspection
3783 recommended certain repairs; requiring that such
3784 temporary pause or reduction be approved by a majority
3785 of the total voting interests of the association;
3786 providing applicability; requiring associations that
3787 have paused or reduced their reserve funding to have a
3788 structural integrity reserve study performed before
3789 the continuation of reserve contributions for
3790 specified purposes; providing that a vote of the
3791 members is not required for the board to change the
3792 accounting method for reserves to specified accounting
3793 methods; revising the items to be included in a
3794 structural integrity reserve study; requiring
3795 specified design professionals or contractors who bid
3796 to perform a structural integrity reserve study to
3797 disclose in writing to the association their intent to
3798 bid on any services related to the maintenance,
3799 repair, or replacement that may be recommended by the
3800 structural integrity reserve study; prohibiting such
3801 professionals or contractors from having any interest
3802 in or being related to any person having any interest
3803 in the firm or entity providing the association’s
3804 structural integrity reserve study unless such
3805 relationship is disclosed in writing; defining the
3806 term “relative”; providing that a contract for
3807 services is voidable and terminates upon the
3808 association filing a written notice terminating such a
3809 contract if such professional or contractor fails to
3810 provide a written disclosure of such relationship with
3811 the firm conducting the structural integrity reserve
3812 study; providing that such professional or contractor
3813 may be subject to discipline for his or her failure to
3814 provide such written disclosure; requiring that a
3815 structural integrity reserve study include a
3816 recommendation for a reserve funding schedule based on
3817 specified criteria; authorizing the study to recommend
3818 other types of reserve funding schedules, provided
3819 each recommended schedule is sufficient to meet the
3820 association’s maintenance obligations; requiring that
3821 reserves not required for certain items be separately
3822 identified as such in the structural integrity reserve
3823 study; requiring the structural integrity reserve
3824 study to take into consideration the funding method or
3825 methods used by the association to fund its
3826 maintenance and reserve funding obligations through
3827 regular assessments, special assessments, loans, or
3828 lines of credit; requiring a structural integrity
3829 reserve study that has been performed before the
3830 approval of a special assessment or the securing of a
3831 line of credit or a loan to be updated to reflect
3832 certain information regarding the reserve funding
3833 schedule; authorizing a structural integrity reserve
3834 study to be updated to reflect changes in the useful
3835 life of the reserve items after such items are
3836 repaired or replaced, and the effect of such repair or
3837 replacement will have on the reserve funding schedule;
3838 requiring an association to obtain an updated
3839 structural integrity reserve study before adopting any
3840 budget in which the reserve funding from regular
3841 assessments, special assessments, loans, or lines of
3842 credit do not align with the funding plan of the most
3843 recent version of the structural integrity reserve
3844 study; authorizing an association to delay a required
3845 structural integrity reserve study for a specified
3846 timeframe if it has completed a milestone inspection
3847 or similar inspection, for a specified purpose;
3848 requiring an officer or director of an association to
3849 sign an affidavit acknowledging receipt of the
3850 completed structural integrity reserve study;
3851 requiring the division to adopt rules for the form for
3852 the structural integrity reserve study in coordination
3853 with the Florida Building Commission; making technical
3854 changes; amending s. 718.501, F.S.; revising the
3855 duties of the Division of Florida Condominiums,
3856 Timeshares, and Mobile Homes regarding investigation
3857 of complaints; requiring condominium associations to
3858 create and maintain an online account with the
3859 division; requiring board members to maintain accurate
3860 contact information on file with the division;
3861 requiring the division to adopt rules; requiring all
3862 condominium associations to create and maintain an
3863 online account with the division; requiring all
3864 condominium associations to provide specified
3865 information to the division by a specified date;
3866 requiring that such information be updated within a
3867 specified timeframe; requiring the division to adopt
3868 rules; authorizing the division to require condominium
3869 associations to provide information to the division;
3870 specifying the information to be provided to the
3871 division; amending s. 718.503, F.S.; revising the
3872 disclosures that must be included in a contract for
3873 the sale and resale of a residential unit; amending s.
3874 8 of chapter 2024-244, Laws of Florida, as amended;
3875 revising the documents required to be posted on
3876 certain associations’ websites or be made available
3877 through download using an application on a mobile
3878 device; amending s. 31 of chapter 2024-244, Laws of
3879 Florida; revising applicability; amending s. 719.104,
3880 F.S.; requiring a board to use best efforts to make
3881 prudent investment decisions in fulfilling its duty to
3882 manage operating and reserve funds of the cooperative
3883 association; authorizing an association to invest
3884 reserve funds in specified financial institutions;
3885 authorizing such associations to place reserve funds
3886 in other investments upon a majority vote of the
3887 voting interests of the association; providing
3888 restrictions; prohibiting any funds not identified as
3889 reserve funds from being used for investments;
3890 providing applicability; requiring a board to create
3891 an investment committee composed of a specified
3892 minimum number of board members; requiring the board
3893 to adopt rules; requiring that all meetings of the
3894 investment committee be recorded and made part of the
3895 official records of the association; requiring that
3896 the investment policy statement developed pursuant to
3897 certain provisions address specified issues; requiring
3898 the investment committee to recommend investment
3899 advisers to the board; requiring the board to select
3900 one of the recommended investment advisers to provide
3901 services to the association; requiring such advisers
3902 to be registered; prohibiting an investment adviser
3903 from being related to any board member, community
3904 management company, reserve study provider, or co
3905 owner of a unit with a board member or investment
3906 committee member; requiring investment advisers to
3907 comply with the prudent investor rule; requiring an
3908 adviser to act as a fiduciary to the association;
3909 providing that the investment and fiduciary standards
3910 required by the act take precedence over any
3911 conflicting law; requiring the investment committee to
3912 recommend a replacement adviser if the committee
3913 determines that an investment adviser is not meeting
3914 requirements; requiring the association to provide the
3915 investment adviser with specified financial
3916 information at least once each calendar year, or
3917 sooner if a substantial financial obligation of the
3918 association becomes known to the board; requiring the
3919 investment adviser to annually review such financial
3920 information and provide the association with a
3921 portfolio allocation model that is suitably structured
3922 and prudently designed to match projected annual
3923 reserve fund requirements and liability, assets, and
3924 liquidity requirements; requiring the investment
3925 adviser to prepare a funding projection for each
3926 reserve component, including any of the component’s
3927 redundancies; requiring that a specified minimum
3928 timeframe of projected reserves in cash or cash
3929 equivalents be available to the association;
3930 authorizing a portfolio managed by an investment
3931 adviser to contain any type of investment necessary to
3932 meet the objectives in the investment policy
3933 statement; providing exceptions; requiring that any
3934 funds invested by the investment adviser be held in
3935 third-party custodial accounts that are subject to
3936 insurance coverage by the Securities Investor
3937 Protection Corporation in an amount equal to or
3938 greater than the invested amount; authorizing the
3939 investment adviser to withdraw investment fees,
3940 expenses, and commissions from invested funds;
3941 requiring the investment adviser to annually provide
3942 the association with a written certification of
3943 compliance with certain provisions and provide the
3944 association with a list of certain stocks, securities,
3945 and other obligations; requiring the investment
3946 adviser to submit monthly, quarterly, and annual
3947 reports to the association, prepared in accordance
3948 with established financial industry standards;
3949 requiring that any principal, earnings, or interest
3950 managed be available to the association at no cost
3951 within a specified timeframe after the association’s
3952 written or electronic request; requiring that
3953 unallocated income earned on reserve fund investments
3954 be spent only on specified expenditures; amending s.
3955 719.106, F.S.; revising the deferred maintenance
3956 expense or replacement costs threshold that must be in
3957 reserve accounts; authorizing the board to pause
3958 contributions to its reserves or reduce reserve
3959 funding if a local building official determines the
3960 entire cooperative building is uninhabitable due to a
3961 natural emergency; authorizing any reserve account
3962 fund held by the association to be expended to make
3963 the cooperative building and its structures habitable,
3964 pursuant to the board’s determination; requiring the
3965 association to immediately resume contributing funds
3966 to its reserves once the local building official
3967 determines that the cooperative building is habitable;
3968 authorizing certain reserves be funded by regular
3969 assessments, special assessments, lines of credit, or
3970 loans under certain circumstances; authorizing a unit
3971 owner-controlled association to obtain a line of
3972 credit or a loan to fund capital expenses required by
3973 a milestone inspection or a structural integrity
3974 reserve study; requiring that such lines of credit or
3975 loans be approved by a majority vote of the total
3976 voting interests of the association; requiring that
3977 such lines of credit or loans be sufficient to fund
3978 the cumulative amount of any previously waived or
3979 unfunded portion of the reserve funding amount and
3980 most recent structural integrity reserve study;
3981 requiring that funding from such lines of credit or
3982 loans be immediately available for access by the board
3983 for a specified purpose; authorizing the board to
3984 temporarily pause reserve fund contributions or reduce
3985 the amount of reserve funding for a specified purpose
3986 for a budget adopted on or before a specified date if
3987 the association has completed a milestone inspection
3988 within a specified timeframe; requiring that such
3989 temporary pause or reduction be approved by a majority
3990 of the total voting interests of the association;
3991 providing applicability; requiring associations that
3992 have paused or reduced their reserve funding
3993 contributions to have a structural integrity reserve
3994 study performed before the continuation of reserve
3995 contributions for specified purposes; providing that a
3996 vote of the members is not required for the board to
3997 change the accounting method for reserves to specified
3998 accounting methods; requiring specified design
3999 professionals or contractors who bid to perform a
4000 structural integrity reserve study to disclose in
4001 writing to the association their intent to bid on any
4002 services related to the maintenance, repair, or
4003 replacement that may be recommended by the structural
4004 integrity reserve study; prohibiting such
4005 professionals or contractors from having any interest
4006 in or being related to any person having any interest
4007 in the firm or entity providing the association’s
4008 structural integrity reserve study unless such
4009 relationship is disclosed in writing; defining the
4010 term “relative”; providing that a contract for
4011 services is voidable and terminates upon the
4012 association filing a written notice terminating such a
4013 contract if such professional or contractor fails to
4014 provide a written disclosure of such relationship with
4015 the firm conducting the structural integrity reserve
4016 study; providing that such professional or contractor
4017 may be subject to discipline for his or her failure to
4018 provide such written disclosure; requiring that a
4019 structural integrity reserve study include a
4020 recommendation for a reserve funding schedule based on
4021 specified criteria; authorizing the study to recommend
4022 other types of reserve funding schedules, provided
4023 each recommended schedule is sufficient to meet the
4024 association’s maintenance obligation; requiring that
4025 reserves not required for certain items be separately
4026 identified as such in the structural integrity reserve
4027 study; requiring the structural integrity reserve
4028 study to take into consideration the funding method or
4029 methods used by the association to fund its
4030 maintenance and reserve funding obligations through
4031 regular assessments, special assessments, lines of
4032 credit, or loans; requiring a structural integrity
4033 reserve study that has been performed before the
4034 approval of a special assessment or the securing of a
4035 line of credit or a loan to be updated to reflect
4036 certain information regarding the reserve funding
4037 schedule; authorizing a structural integrity reserve
4038 study to be updated to reflect changes in the useful
4039 life of the reserve items after such items are
4040 repaired or replaced, and the effect of such repair or
4041 replacement will have on the reserve funding schedule;
4042 requiring an association to obtain an updated
4043 structural integrity reserve study before adopting any
4044 budget in which the reserve funding from regular
4045 assessments, special assessments, lines of credit, or
4046 loans do not align with the funding plan of the most
4047 recent version of the structural integrity reserve
4048 study; authorizing an association to delay a required
4049 structural integrity reserve study for a specified
4050 timeframe if it has completed a milestone inspection
4051 or similar inspection, for a specified purpose;
4052 requiring an officer or a director of the association
4053 to sign an affidavit acknowledging receipt of the
4054 completed structural integrity reserve study;
4055 requiring the division to adopt by rule the form for
4056 the structural integrity reserve study in coordination
4057 with the Florida Building Commission; amending s.
4058 719.501, F.S.; requiring a cooperative association to
4059 create and maintain an online account with the
4060 division; requiring board members to maintain accurate
4061 contact information on file with the division;
4062 requiring the division to adopt rules; authorizing the
4063 division to require cooperative associations to
4064 provide information to the division no more than once
4065 per year; providing an exception; requiring the
4066 division to provide associations a specified timeframe
4067 to provide any required information; specifying the
4068 information the division may request; amending s.
4069 719.503, F.S.; revising the disclosures that must be
4070 included in a contract for the sale and resale of an
4071 interest in a cooperative; amending s. 914.21, F.S.;
4072 revising the definition of the term “official
4073 investigation”; providing appropriations; reenacting
4074 s. 721.13(3)(e), F.S., relating to management, to
4075 incorporate the amendment made to s. 718.111, F.S., in
4076 a reference thereto; reenacting ss. 718.504(7)(a) and
4077 (21)(c) and 718.618(1)(d), F.S., relating to
4078 prospectus or offering circulars and converter reserve
4079 accounts and warranties, respectively, to incorporate
4080 the amendment made to s. 718.112, F.S., in references
4081 thereto; reenacting s. 718.706(1) and (3), F.S.,
4082 relating to specific provisions pertaining to offering
4083 of units by bulk assignees or bulk buyers, to
4084 incorporate the amendments made to ss. 718.111,
4085 718.112, and 718.503, F.S., in references thereto;
4086 reenacting ss. 719.103(24) and 719.504(7)(a) and
4087 (20)(c), F.S., relating to definitions and prospectus
4088 or offering circulars, respectively, to incorporate
4089 the amendment made to s. 719.106, F.S., in references
4090 thereto; providing effective dates.