Florida Senate - 2025                             CS for SB 1742
       
       
        
       By the Committee on Regulated Industries; and Senator Bradley
       
       
       
       
       
       580-02868-25                                          20251742c1
    1                        A bill to be entitled                      
    2         An act relating to condominium and cooperative
    3         associations; amending s. 468.432, F.S.; prohibiting a
    4         person whose community association manager license is
    5         revoked from having an indirect or direct ownership
    6         interest in, or be an employee, partner, officer,
    7         director, or trustee of, a community association
    8         management firm for a specified timeframe; requiring a
    9         licensee to provide specific information on his or her
   10         online licensure account; requiring that such
   11         information be updated within a specified timeframe;
   12         requiring the Division of Florida Condominiums,
   13         Timeshares, and Mobile Homes to give written notice to
   14         the community association management firm and the
   15         community association if the community association
   16         manager has his or her license suspended or revoked;
   17         amending s. 468.4334, F.S.; prohibiting a community
   18         association manager or a community association
   19         management firm from performing any act directed by
   20         the community association if such act violates any
   21         state or federal law; revising the contractual
   22         obligations a community association manager or a
   23         community association management firm has with the
   24         association board; requiring such that contracts
   25         include a certain statement; prohibiting such
   26         contracts from waiving or limiting certain
   27         professional practice standards; requiring a community
   28         association to include specified information on its
   29         website or mobile application, if such association is
   30         required to maintain official records on a website or
   31         application; conforming provisions to changes made by
   32         the act; amending s. 553.899, F.S.; requiring the
   33         local enforcement agency responsible for milestone
   34         inspections to provide to the Department of Business
   35         and Professional Regulation in an electronic format
   36         certain information; specifying what information is to
   37         be provided to the department; requiring the Florida
   38         Building Commission to contract with the University of
   39         Florida for the creation of a report that provides
   40         certain information on milestone inspections during a
   41         specified timeframe; requiring a local enforcement
   42         agency to provide the university with certain
   43         information; authorizing the university to request any
   44         additional information from a local enforcement agency
   45         required to complete the report; requiring the
   46         university to compile the report and the department to
   47         transmit the report to the Governor and the
   48         Legislature; requiring, rather than authorizing, the
   49         board of county commissioners or a municipal governing
   50         body to adopt a specified ordinance; amending s.
   51         718.103, F.S.; revising the definition of the term
   52         “alternative funding method”; defining the term
   53         “videoconference”; amending s. 718.111, F.S.;
   54         requiring a community association manager or a
   55         community association management firm that contracts
   56         with a community association to possess specific
   57         licenses; providing that all board members or officers
   58         of a community association that contracts with a
   59         community association manager or a community
   60         association management firm have a duty to ensure that
   61         the community association manager or community
   62         association management firm is properly licensed
   63         before entering into a contract; prohibiting a
   64         community association from having any further
   65         contractual obligations to a community association
   66         manager or community association management firm if
   67         the community association manager or the community
   68         association management firm has its license suspended
   69         or revoked; revising what items constitute the
   70         official records of the association; requiring that
   71         certain documents be posted on certain associations’
   72         websites or made available for download through an
   73         application on a mobile device within a specified
   74         timeframe; revising what documents must be posted in
   75         digital format on the association’s website or
   76         application; revising the methods of delivery for a
   77         copy of the most recent association financial report
   78         to include electronic delivery via the Internet;
   79         requiring that an officer or a director execute an
   80         affidavit as evidence of compliance with the delivery
   81         requirement; requiring an association board to use
   82         best efforts to make prudent investment decisions in
   83         fulfilling its duty to manage operating and reserve
   84         funds of the association; authorizing an association,
   85         including a multicondominium association, to invest
   86         reserve funds in specified financial institutions;
   87         authorizing such associations to place reserve funds
   88         in other investments upon a majority vote of the
   89         voting interests of the association; providing
   90         restrictions; prohibiting any funds not identified as
   91         reserve funds from being used for investments;
   92         requiring a board to create an investment committee
   93         composed of a specified minimum number of board
   94         members; requiring the board to adopt rules; requiring
   95         that all meetings of the investment committee be
   96         recorded and made part of the official records of the
   97         association; requiring that the investment policy
   98         statement developed pursuant to certain provisions
   99         address specified issues; requiring the investment
  100         committee to recommend investment advisers to the
  101         board; requiring the board to select one of the
  102         recommended investment advisers to provide services to
  103         the association; requiring that such advisers be
  104         registered; prohibiting an investment adviser from
  105         being related to any board member, community
  106         management company, reserve study provider, or unit
  107         owner; requiring investment advisers to comply with
  108         the prudent investor rule; requiring an adviser to act
  109         as a fiduciary to the association; requiring that the
  110         investment and fiduciary standards required by the act
  111         take precedence over any conflicting law; requiring
  112         the investment committee to recommend a replacement
  113         adviser if the committee determines that an investment
  114         adviser is not meeting requirements; requiring the
  115         association to provide the investment adviser with
  116         specified financial information at least once each
  117         calendar year, or sooner if a substantial financial
  118         obligation of the association becomes known to the
  119         board; requiring the investment adviser to annually
  120         review such financial information and provide the
  121         association with a portfolio allocation model that is
  122         suitably structured and prudently designed to match
  123         projected annual reserve fund requirements and
  124         liability, assets, and liquidity requirements;
  125         requiring the investment adviser to prepare a funding
  126         projection for each reserve component, including any
  127         of the component’s redundancies; requiring that a
  128         specified minimum timeframe of projected reserves in
  129         cash or cash equivalents be available to the
  130         association; authorizing a portfolio managed by an
  131         investment adviser to contain any type of investment
  132         necessary to meet the objectives in the investment
  133         policy statement; providing exceptions; requiring that
  134         any funds invested by the investment adviser be held
  135         in third-party custodial accounts that are subject to
  136         insurance coverage by the Securities Investor
  137         Protection Corporation in an amount equal to or
  138         greater than the invested amount; authorizing the
  139         investment adviser to withdraw investment fees,
  140         expenses, and commissions from invested funds;
  141         requiring the investment adviser to annually provide
  142         the association with a written certification of
  143         compliance with this section and provide the
  144         association with a list of certain stocks, securities,
  145         and other obligations; requiring the investment
  146         adviser to submit monthly, quarterly, and annual
  147         reports to the association, prepared in accordance
  148         with established financial industry standards;
  149         requiring that any principal, earnings, or interest
  150         managed be available to the association at no cost
  151         within a specified timeframe after the association’s
  152         written or electronic request; requiring that
  153         unallocated income earned on reserve fund investments
  154         be spent only on specified expenditures; amending s.
  155         718.112, F.S.; authorizing an association board
  156         meeting to be conducted in person or by
  157         videoconference; prohibiting a board member from
  158         participating in any meeting of the association via
  159         videoconference more than a specified number of times
  160         each calendar year; requiring the Division of Florida
  161         Condominiums, Timeshares, and Mobile Homes to adopt
  162         rules; requiring that notice for board meetings
  163         conducted via videoconference contain specific
  164         information; requiring that such meetings be recorded
  165         and maintained as an official record of the
  166         association; revising how notice may be sent to unit
  167         owners; revising the distance from the condominium
  168         property within which a unit owner meeting must be
  169         held; authorizing a unit owner to vote electronically
  170         if the unit owner meeting is conducted via
  171         videoconference; authorizing unit owner meetings to be
  172         conducted in person or via videoconference; specifying
  173         what constitutes a quorum for meetings held via
  174         videoconference; requiring that the location of the
  175         meeting be provided in the association bylaws or
  176         within a specified distance from the condominium
  177         property if the bylaws are silent; requiring that
  178         meetings held via videoconference be recorded and be
  179         maintained as an official record of the association;
  180         requiring the division to adopt rules; revising the
  181         method of serving notices of unit owner meetings;
  182         authorizing budget meetings to be conducted via
  183         videoconference; requiring the division to adopt
  184         rules; requiring that a sound transmitting device be
  185         used at such meetings for a specified purpose;
  186         revising a provision that a board proposing a budget
  187         that requires a certain special assessment against
  188         unit owners to simultaneously propose a substitute
  189         budget that meets certain requirements, rather than
  190         conduct a special meeting of the unit owners to
  191         consider a substitute budget after the adoption of the
  192         annual budget; requiring unit owners, rather than
  193         authorizing them, to consider a substitute budget;
  194         authorizing the annual budget initially proposed to be
  195         adopted by the board; revising the criteria used in
  196         determining whether assessments exceed the specified
  197         percentage of assessments of the prior fiscal year;
  198         revising the threshold for deferred maintenance
  199         expenses or replacements in reserve accounts;
  200         authorizing the members to vote to waive the
  201         maintenance of reserves recommended in the most recent
  202         structural integrity reserve study under certain
  203         circumstances; revising the provision that any
  204         association, rather than an association operating a
  205         multicondominium, may determine to provide no reserves
  206         or less reserves than required if an alternative
  207         funding method is used by the association; deleting
  208         the requirement that the division approve the funding
  209         method; authorizing a unit-owner-controlled
  210         association to obtain a line of credit in lieu of
  211         maintaining reserves for budgets adopted on or before
  212         a specified date upon a majority vote of the
  213         association; requiring that such line of credit be
  214         sufficient to meet the association’s deferred
  215         maintenance obligations not funded in the
  216         association’s reserve account for each budget;
  217         requiring that funding from the line of credit be
  218         immediately available for access by the board for a
  219         specified purpose; requiring that such lines of credit
  220         be included in the association’s financial report;
  221         deleting a requirement that the majority of the
  222         members must approve of the board pausing
  223         contributions to the association’s reserves for a
  224         specified purpose; authorizing the board to
  225         temporarily pause reserve fund contributions or reduce
  226         the amount of reserve funding for a specified purpose
  227         for a budget adopted on or before a specified date if
  228         the association has completed a milestone inspection
  229         within a specified timeframe and such inspection
  230         recommended certain repairs; requiring that such
  231         temporary pause or reduction be approved by a majority
  232         of the total voting interests of the association;
  233         providing applicability; requiring associations that
  234         have paused or reduced their reserve funding to have a
  235         structural integrity reserve study performed before
  236         the continuation of reserve contributions for
  237         specified purposes; providing that a vote of the
  238         members is not required for the board to change the
  239         accounting method for reserves to specified accounting
  240         methods; revising the items to be included in a
  241         structural integrity reserve study; requiring
  242         specified design professionals or contractors who bid
  243         to perform a structural integrity reserve study to
  244         disclose in writing to the association their intent to
  245         bid on any services related to the maintenance,
  246         repair, or replacement that may be recommended by the
  247         structural integrity reserve study; prohibiting such
  248         professionals or contractors from having any interest
  249         in or being related to any person having any interest
  250         in the firm or entity providing the association’s
  251         structural integrity reserve study unless such
  252         relationship is disclosed in writing; defining the
  253         term “relative”; providing that a contract for
  254         services is voidable and terminates upon the
  255         association filing a written notice terminating such a
  256         contract if such professional or contractor fails to
  257         provide a written disclosure of such relationship with
  258         the firm conducting the structural integrity reserve
  259         study; providing that such professional or contractor
  260         may be subject to discipline for his or her failure to
  261         provide such written disclosure; requiring that a
  262         structural integrity reserve study include a
  263         recommendation for a reserve funding schedule based on
  264         specified criteria; authorizing the study to recommend
  265         other types of reserve funding schedules, provided
  266         each recommended schedule is sufficient to meet the
  267         association’s maintenance obligations; requiring that
  268         reserves not required for certain items be separately
  269         identified as such in the structural integrity reserve
  270         study; authorizing an association to delay a required
  271         structural integrity reserve study for a specified
  272         timeframe if it has completed a milestone inspection
  273         or similar inspection, for a specified purpose;
  274         requiring an officer or director of an association to
  275         sign an affidavit acknowledging receipt of the
  276         completed structural integrity reserve study;
  277         requiring the division to adopt rules for the form for
  278         the structural integrity reserve study in coordination
  279         with the Florida Building Commission; making technical
  280         changes; amending s. 718.501, F.S.; revising the
  281         duties of the Division of Florida Condominiums,
  282         Timeshares, and Mobile Homes regarding investigation
  283         of complaints; requiring condominium associations to
  284         create and maintain an online account with the
  285         division; requiring board members to maintain accurate
  286         contact information on file with the division;
  287         requiring the division to adopt rules; requiring all
  288         condominium associations to provide specified
  289         information to the division by a specified date;
  290         requiring that such information be updated within a
  291         specified timeframe; specifying the information to be
  292         provided to the division; amending s. 718.503, F.S.;
  293         revising the disclosures that must be included in a
  294         contract for the sale and resale of a residential
  295         unit; amending s. 8 of chapter 2024-244, Laws of
  296         Florida, as amended; revising the documents required
  297         to be posted on certain associations’ websites or be
  298         made available through download using an application
  299         on a mobile device; amending s. 31 of chapter 2024
  300         244, Laws of Florida; revising applicability; amending
  301         s. 719.104, F.S.; requiring a board to use best
  302         efforts to make prudent investment decisions in
  303         fulfilling its duty to manage operating and reserve
  304         funds of the association; authorizing an association
  305         to invest reserve funds in specified financial
  306         institutions; authorizing such associations to place
  307         reserve funds in other investments upon a majority
  308         vote of the voting interests of the association;
  309         providing restrictions; prohibiting any funds not
  310         identified as reserve funds from being used for
  311         investments; providing applicability; requiring a
  312         board to create an investment committee composed of a
  313         specified minimum number of board members; requiring
  314         the board to adopt rules; requiring that all meetings
  315         of the investment committee be recorded and made part
  316         of the official records of the association; requiring
  317         that the investment policy statement developed
  318         pursuant to certain provisions address specified
  319         issues; requiring the investment committee to
  320         recommend investment advisers to the board; requiring
  321         the board to select one of the recommended investment
  322         advisers to provide services to the association;
  323         requiring such advisers to be registered; prohibiting
  324         an investment adviser from being related to any board
  325         member, community management company, reserve study
  326         provider, or unit owner; requiring investment advisers
  327         to comply with the prudent investor rule; requiring an
  328         adviser to act as a fiduciary to the association;
  329         requiring that the investment and fiduciary standards
  330         required by the act take precedence over any
  331         conflicting law; requiring the investment committee to
  332         recommend a replacement adviser if the committee
  333         determines that an investment adviser is not meeting
  334         requirements; requiring the association to provide the
  335         investment adviser with specified financial
  336         information at least once each calendar year, or
  337         sooner if a substantial financial obligation of the
  338         association becomes known to the board; requiring the
  339         investment adviser to annually review such financial
  340         information and provide the association with a
  341         portfolio allocation model that is suitably structured
  342         and prudently designed to match projected annual
  343         reserve fund requirements and liability, assets, and
  344         liquidity requirements; requiring the investment
  345         adviser to prepare a funding projection for each
  346         reserve component, including any of the component’s
  347         redundancies; requiring that a specified minimum
  348         timeframe of projected reserves in cash or cash
  349         equivalents be available to the association;
  350         authorizing a portfolio managed by an investment
  351         adviser to contain any type of investment necessary to
  352         meet the objectives in the investment policy
  353         statement; providing exceptions; requiring that any
  354         funds invested by the investment adviser be held in
  355         third-party custodial accounts that are subject to
  356         insurance coverage by the Securities Investor
  357         Protection Corporation in an amount equal to or
  358         greater than the invested amount; authorizing the
  359         investment adviser to withdraw investment fees,
  360         expenses, and commissions from invested funds;
  361         requiring the investment adviser to annually provide
  362         the association with a written certification of
  363         compliance with this section and provide the
  364         association with a list of certain stocks, securities,
  365         and other obligations; requiring the investment
  366         adviser to submit monthly, quarterly, and annual
  367         reports to the association, prepared in accordance
  368         with established financial industry standards;
  369         requiring that any principal, earnings, or interest
  370         managed be available to the association at no cost
  371         within a specified timeframe after the association’s
  372         written or electronic request; requiring that
  373         unallocated income earned on reserve fund investments
  374         be spent only on specified expenditures; amending s.
  375         719.106, F.S.; revising the deferred maintenance
  376         expense or replacement costs threshold that must be in
  377         reserve accounts; authorizing the association members
  378         to vote to waive the maintenance of reserves
  379         recommended by the most recent structural integrity
  380         reserve study under certain circumstances; authorizing
  381         the board to pause contributions to its reserves or
  382         reduce reserve funding if a local building official
  383         determines the entire condominium building is
  384         uninhabitable due to a natural emergency; authorizing
  385         any reserve account fund held by the association to be
  386         expended to make the condominium building and its
  387         structures habitable, pursuant to the board’s
  388         determination; requiring the association to
  389         immediately resume contributing funds to its reserves
  390         once the local building official determines that the
  391         condominium building is habitable; authorizing a unit
  392         owner-controlled association to obtain a line of
  393         credit in lieu of maintaining reserves for budgets
  394         adopted on or before a specified date upon a majority
  395         vote of the association; requiring that such line of
  396         credit be sufficient to meet the association’s
  397         deferred maintenance obligations not funded in the
  398         association’s reserve account for each budget;
  399         requiring that funding from the line of credit be
  400         immediately available for access by the board for a
  401         specified purpose; authorizing the board to
  402         temporarily pause reserve fund contributions or reduce
  403         the amount of reserve funding for a specified purpose
  404         for a budget adopted on or before a specified date if
  405         the association has completed a milestone inspection
  406         within a specified timeframe; requiring that such
  407         temporary pause or reduction be approved by a majority
  408         of the total voting interests of the association;
  409         providing applicability; requiring associations that
  410         have paused or reduced their reserve funding
  411         contributions to have a structural integrity reserve
  412         study performed before the continuation of reserve
  413         contributions for specified purposes; providing that a
  414         vote of the members is not required for the board to
  415         change the accounting method for reserves to specified
  416         accounting methods; requiring specified design
  417         professionals or contractors who bid to perform a
  418         structural integrity reserve study to disclose in
  419         writing to the association their intent to bid on any
  420         services related to the maintenance, repair, or
  421         replacement that may be recommended by the structural
  422         integrity reserve study; prohibiting such
  423         professionals or contractors from having any interest
  424         in or being related to any person having any interest
  425         in the firm or entity providing the association’s
  426         structural integrity reserve study unless such
  427         relationship is disclosed in writing; defining the
  428         term “relative”; providing that a contract for
  429         services is voidable and terminates upon the
  430         association filing a written notice terminating such a
  431         contract if such professional or contractor fails to
  432         provide a written disclosure of such relationship with
  433         the firm conducting the structural integrity reserve
  434         study; providing that such professional or contractor
  435         may be subject to discipline for his or her failure to
  436         provide such written disclosure; requiring that a
  437         structural integrity reserve study include a
  438         recommendation for a reserve funding schedule based on
  439         specified criteria; authorizing the study to recommend
  440         other types of reserve funding schedules, provided
  441         each recommended schedule is sufficient to meet the
  442         association’s maintenance obligation; requiring that
  443         reserves not required for certain items be separately
  444         identified as such in the structural integrity reserve
  445         study; authorizing an association to delay a required
  446         structural integrity reserve study for a specified
  447         timeframe if it has completed a milestone inspection
  448         or similar inspection, for a specified purpose;
  449         requiring an officer or a director of the association
  450         to sign an affidavit acknowledging receipt of the
  451         completed structural integrity reserve study;
  452         requiring the division to adopt, by rule, the form for
  453         the structural integrity reserve study in coordination
  454         with the Florida Building Commission; amending s.
  455         719.501, F.S.; requiring a cooperative association to
  456         create and maintain an online account with the
  457         division; requiring board members to maintain accurate
  458         contact information on file with the division;
  459         requiring the division to adopt rules; requiring all
  460         cooperative associations to provide information
  461         specified by the division in an electronic format to
  462         be determined by the division; specifying the
  463         information that must be updated with the division
  464         within a specified timeframe; amending s. 719.503,
  465         F.S.; revising the disclosures that must be included
  466         in a contract for the sale and resale of an interest
  467         in a cooperative; amending s. 914.21, F.S.; revising
  468         the definition of the term “official investigation”;
  469         providing appropriations; reenacting s. 721.13(3)(e),
  470         F.S., relating to management, to incorporate the
  471         amendment made to s. 718.111, F.S., in a reference
  472         thereto; reenacting ss. 718.504(7)(a) and (21)(c), and
  473         718.618(1)(d), F.S., relating to prospectus or
  474         offering circulars and converter reserve accounts and
  475         warranties, respectively, to incorporate the amendment
  476         made to s. 718.112, F.S., in references thereto;
  477         reenacting s. 718.706(1) and (3), F.S., relating to
  478         specific provisions pertaining to offering of units by
  479         bulk assignees or bulk buyers, to incorporate the
  480         amendments made to ss. 718.111, 718.112, and 718.503,
  481         F.S., in references thereto; reenacting ss.
  482         719.103(24) and 719.504(7)(a) and (20)(c), F.S.,
  483         relating to definitions and prospectus or offering
  484         circulars, respectively, to incorporate the amendment
  485         made to s. 719.106, F.S., in references thereto;
  486         providing effective dates.
  487          
  488  Be It Enacted by the Legislature of the State of Florida:
  489  
  490         Section 1. Paragraph (h) is added to subsection (2) of
  491  section 468.432, Florida Statutes, and subsection (3) is added
  492  to that section, to read:
  493         468.432 Licensure of community association managers and
  494  community association management firms; exceptions.—
  495         (2) A community association management firm or other
  496  similar organization responsible for the management of more than
  497  10 units or a budget of $100,000 or greater shall not engage or
  498  hold itself out to the public as being able to engage in the
  499  business of community association management in this state
  500  unless it is licensed by the department as a community
  501  association management firm in accordance with the provisions of
  502  this part.
  503         (h) A person who has had his or her community association
  504  manager license revoked may not have an indirect or direct
  505  ownership interest in, or be an employee, partner, officer,
  506  director, or trustee of, a community association management firm
  507  during the 10-year period after the effective date of the
  508  revocation. Such person is ineligible to reapply for
  509  certification or registration under this part for a period of 10
  510  years after the effective date of a revocation.
  511         (3) A licensee must provide on his or her online licensure
  512  account each community association for which the licensee
  513  provides community association management services and whether
  514  the community association is a condominium association under
  515  chapter 718, a cooperative association under chapter 719, or a
  516  homeowners’ association under chapter 720. A licensee must
  517  update his or her online licensure account with this information
  518  within 30 days after any change to the required information. If
  519  a community association manager has his or her license suspended
  520  or revoked, the division must give written notice of such
  521  suspension or revocation to the community association management
  522  firm and the community association for which the manager
  523  performs community management services.
  524         Section 2. Subsections (1) and (3) of section 468.4334,
  525  Florida Statutes, are amended to read:
  526         468.4334 Professional practice standards; liability;
  527  community association manager requirements; return of records
  528  after termination of contract.—
  529         (1)(a) A community association manager or a community
  530  association management firm is deemed to act as agent on behalf
  531  of a community association as principal within the scope of
  532  authority authorized by a written contract or under this
  533  chapter. A community association manager or a community
  534  association management firm may not perform any act directed by
  535  the community association if such an act violates any state or
  536  federal law. A community association manager and a community
  537  association management firm shall discharge duties performed on
  538  behalf of the association as authorized by this chapter loyally,
  539  skillfully, and diligently; dealing honestly and fairly; in good
  540  faith; with care and full disclosure to the community
  541  association; accounting for all funds; and not charging
  542  unreasonable or excessive fees.
  543         (b) If a community association manager or a community
  544  association management firm has a contract with a community
  545  association that is subject to the milestone inspection
  546  requirements in s. 553.899, or the structural integrity reserve
  547  study requirements in s. 718.112(2)(g) and 719.106(1)(k), the
  548  community association manager or the community association
  549  management firm must comply with those sections that section as
  550  directed by the board.
  551         (c) Each contract between a community association and a
  552  community association manager or community association
  553  management firm for community association management services
  554  must include the following written statement in at least 12
  555  point type:
  556  
  557         The community association manager shall abide by all
  558         professional standards and record keeping requirements
  559         imposed pursuant to part VIII of chapter 468, Florida
  560         Statutes.
  561  
  562         (d)A contract between a community association manager or
  563  community association management firm and a community
  564  association may not waive or limit the professional practice
  565  standards required pursuant to this part.
  566         (3) A community association manager or community
  567  association management firm that is authorized by contract to
  568  provide community association management services to a community
  569  homeowners’ association shall do all of the following:
  570         (a) Attend in person at least one member meeting or board
  571  meeting of the homeowners’ association annually.
  572         (b) Provide to the members of the community homeowners’
  573  association the name and contact information for each community
  574  association manager or representative of a community association
  575  management firm assigned to the community homeowners’
  576  association, the manager’s or representative’s hours of
  577  availability, and a summary of the duties for which the manager
  578  or representative is responsible. The community homeowners’
  579  association shall also post this information on the
  580  association’s website or mobile application, if the association
  581  is required to maintain official records on a website or
  582  application required under s. 720.303(4)(b). The community
  583  association manager or community association management firm
  584  shall update the community homeowners’ association and its
  585  members within 14 business days after any change to such
  586  information.
  587         (c) Provide to any member upon request a copy of the
  588  contract between the community association manager or community
  589  association management firm and the community homeowners’
  590  association and include such contract with association’s
  591  official records.
  592         Section 3. Subsection (11) of section 553.899, Florida
  593  Statutes, is amended, and paragraphs (e) and (f) are added to
  594  subsection (3) of that section, to read:
  595         553.899 Mandatory structural inspections for condominium
  596  and cooperative buildings.—
  597         (3)
  598         (e) On or before October 1, 2025, and on or before each
  599  December 31 thereafter, the local enforcement agency responsible
  600  for milestone inspections must provide the department, in an
  601  electronic format determined by the department, information that
  602  may include, but is not limited to:
  603         1. The number of buildings required to have a milestone
  604  inspection within the agency’s jurisdiction.
  605         2. The number of buildings for which a phase one milestone
  606  inspection has been completed.
  607         3. The number of buildings granted an extension under
  608  paragraph (3)(c).
  609         4. The number of buildings required to have a phase two
  610  milestone inspection.
  611         5. The number of buildings for which a phase two milestone
  612  inspection has been completed.
  613         6. The number, type, and value of permits applied for to
  614  complete repairs pursuant to a phase two milestone inspection.
  615         7. A list of buildings deemed to be unsafe or uninhabitable
  616  due to a milestone inspection.
  617         8. The license number of the building code administrator
  618  responsible for milestone inspections for the local enforcement
  619  agency.
  620         (f) Subject to appropriation, the commission shall contract
  621  with the University of Florida for the purpose of creating a
  622  report that provides comprehensive data, evaluation, and
  623  analysis on the milestone inspections performed throughout this
  624  state during each calendar year or other time period approved by
  625  the commission. Every local enforcement agency responsible for
  626  milestone inspections must provide the university with a copy of
  627  any phase one or phase two milestone inspection report by the
  628  date specified by the commission in a manner prescribed by the
  629  university. The university may request any additional
  630  information from a local enforcement agency which the university
  631  requires to complete this report. The university shall compile
  632  the report, and the department shall transmit the report to the
  633  Governor, the President of the Senate, and the Speaker of the
  634  House of Representatives.
  635         (11) A board of county commissioners or municipal governing
  636  body shall may adopt an ordinance requiring that a condominium
  637  or cooperative association and any other owner that is subject
  638  to this section schedule or commence repairs for substantial
  639  structural deterioration within a specified timeframe after the
  640  local enforcement agency receives a phase two inspection report;
  641  however, such repairs must be commenced within 365 days after
  642  receiving such report. If an owner of the building fails to
  643  submit proof to the local enforcement agency that repairs have
  644  been scheduled or have commenced for substantial structural
  645  deterioration identified in a phase two inspection report within
  646  the required timeframe, the local enforcement agency must review
  647  and determine if the building is unsafe for human occupancy.
  648         Section 4. Present subsections (33) and (34) of section
  649  718.103, Florida Statutes, are redesignated as subsections (34)
  650  and (35), respectively, a new subsection (33) is added to that
  651  subsection, and subsection (1) of that section is amended, to
  652  read:
  653         718.103 Definitions.—As used in this chapter, the term:
  654         (1) “Alternative funding method” means a method approved by
  655  the division for funding the capital expenditures and deferred
  656  maintenance obligations of the association for a
  657  multicondominium association operating at least 25 condominiums
  658  which may reasonably be expected to fully satisfy the
  659  association’s reserve funding obligations by the, including:
  660         (a) The allocation of funds in the annual operating budget
  661  of a multicondominium; or
  662         (b) Any other method defined by rule of the division which
  663  may reasonably be expected to fully satisfy the association’s
  664  reserve funding obligations or fund its capital expenditure and
  665  deferred maintenance obligations.
  666         (33) Videoconference” means a real-time audio and video
  667  based meeting between two or more people in different locations
  668  using video-enabled and audio-enabled devices. The notice for
  669  any meeting that will be conducted by videoconference must have
  670  a hyperlink and call-in conference telephone number for unit
  671  owners to attend the meeting and must have a physical location
  672  where unit owners can also attend the meeting in person. All
  673  meetings conducted by videoconference must be recorded and such
  674  recording must be maintained as an official record of the
  675  association.
  676         Section 5. Paragraphs (a) and (g) of subsection (12) and
  677  subsection (13) of section 718.111, Florida Statutes, are
  678  amended, and paragraphs (g) and (h) are added to subsection (3)
  679  of that section, and subsection (16) is added to that section,
  680  to read:
  681         718.111 The association.—
  682         (3) POWER TO MANAGE CONDOMINIUM PROPERTY AND TO CONTRACT,
  683  SUE, AND BE SUED; CONFLICT OF INTEREST.—
  684         (g) If an association contracts with a community
  685  association manager or a community association management firm,
  686  the community association manager or community association
  687  management firm must possess all applicable licenses required by
  688  part VIII of chapter 468. All board members or officers of an
  689  association that contracts with a community association manager
  690  or a community association management firm have a duty to ensure
  691  that the community association manager or community association
  692  management firm is properly licensed before entering into a
  693  contract.
  694         (h) If a community association manager or a community
  695  association management firm has its license suspended or revoked
  696  during the term of a contract with the association, the
  697  association shall have no further contractual obligations to the
  698  community association manager or community association
  699  management firm whose license has been revoked or suspended,
  700  effective on the date which the community association manager or
  701  community association management firm became unlicensed.
  702         (12) OFFICIAL RECORDS.—
  703         (a) From the inception of the association, the association
  704  shall maintain each of the following items, if applicable, which
  705  constitutes the official records of the association:
  706         1. A copy of the plans, permits, warranties, and other
  707  items provided by the developer under s. 718.301(4).
  708         2. A copy photocopy of the recorded declaration of
  709  condominium of each condominium operated by the association and
  710  each amendment to each declaration.
  711         3. A copy photocopy of the recorded bylaws of the
  712  association and each amendment to the bylaws.
  713         4. A certified copy of the articles of incorporation of the
  714  association, or other documents creating the association, and
  715  each amendment thereto.
  716         5. A copy of the current rules of the association.
  717         6. A book or books or electronic records that contain the
  718  minutes of all meetings of the association, the board of
  719  administration, any committee, and the unit owners, and a
  720  recording of all such meetings that are conducted by
  721  videoconference.
  722         7. A current roster of all unit owners and their mailing
  723  addresses, unit identifications, voting certifications, and, if
  724  known, telephone numbers. The association shall also maintain
  725  the e-mail addresses and facsimile numbers of unit owners
  726  consenting to receive notice by electronic transmission. In
  727  accordance with sub-subparagraph (c)5.e., the e-mail addresses
  728  and facsimile numbers are only accessible to unit owners if
  729  consent to receive notice by electronic transmission is
  730  provided, or if the unit owner has expressly indicated that such
  731  personal information can be shared with other unit owners and
  732  the unit owner has not provided the association with a request
  733  to opt out of such dissemination with other unit owners. An
  734  association must ensure that the e-mail addresses and facsimile
  735  numbers are only used for the business operation of the
  736  association and may not be sold or shared with outside third
  737  parties. If such personal information is included in documents
  738  that are released to third parties, other than unit owners, the
  739  association must redact such personal information before the
  740  document is disseminated. However, the association is not liable
  741  for an inadvertent disclosure of the e-mail address or facsimile
  742  number for receiving electronic transmission of notices unless
  743  such disclosure was made with a knowing or intentional disregard
  744  of the protected nature of such information.
  745         8. All current insurance policies of the association and
  746  condominiums operated by the association.
  747         9. A current copy of any management agreement, lease, or
  748  other contract to which the association is a party or under
  749  which the association or the unit owners have an obligation or
  750  responsibility.
  751         10. Bills of sale or transfer for all property owned by the
  752  association.
  753         11. Accounting records for the association and separate
  754  accounting records for each condominium that the association
  755  operates. Any person who knowingly or intentionally defaces or
  756  destroys such records, or who knowingly or intentionally fails
  757  to create or maintain such records, with the intent of causing
  758  harm to the association or one or more of its members, is
  759  personally subject to a civil penalty pursuant to s.
  760  718.501(1)(e). The accounting records must include, but are not
  761  limited to:
  762         a. Accurate, itemized, and detailed records of all receipts
  763  and expenditures, including all bank statements and ledgers.
  764         b. All invoices, transaction receipts, or deposit slips
  765  that substantiate any receipt or expenditure of funds by the
  766  association.
  767         c. A current account and a monthly, bimonthly, or quarterly
  768  statement of the account for each unit designating the name of
  769  the unit owner, the due date and amount of each assessment, the
  770  amount paid on the account, and the balance due.
  771         d. All audits, reviews, accounting statements, structural
  772  integrity reserve studies, and financial reports of the
  773  association or condominium. Structural integrity reserve studies
  774  must be maintained for at least 15 years after the study is
  775  completed.
  776         e. All contracts for work to be performed. Bids for work to
  777  be performed are also considered official records and must be
  778  maintained by the association for at least 1 year after receipt
  779  of the bid.
  780         12. Ballots, sign-in sheets, voting proxies, and all other
  781  papers and electronic records relating to voting by unit owners,
  782  which must be maintained for 1 year from the date of the
  783  election, vote, or meeting to which the document relates,
  784  notwithstanding paragraph (b).
  785         13. All rental records if the association is acting as
  786  agent for the rental of condominium units.
  787         14. A copy of the current question and answer sheet as
  788  described in s. 718.504.
  789         15. A copy of the inspection reports described in ss.
  790  553.899 and 718.301(4)(p) and any other inspection report
  791  relating to a structural or life safety inspection of
  792  condominium property. Such record must be maintained by the
  793  association for 15 years after receipt of the report.
  794         16. Bids for materials, equipment, or services.
  795         17. All affirmative acknowledgments made pursuant to s.
  796  718.121(4)(c).
  797         18. A copy of all building permits.
  798         19. A copy of all satisfactorily completed board member
  799  educational certificates.
  800         20.A copy of all affidavits required by this chapter.
  801         21.20. All other written records of the association not
  802  specifically included in the foregoing which are related to the
  803  operation of the association.
  804         (g)1. By January 1, 2019, an association managing a
  805  condominium with 150 or more units which does not contain
  806  timeshare units shall post digital copies of the documents
  807  specified in subparagraph 2. on its website or make such
  808  documents available through an application that can be
  809  downloaded on a mobile device. Unless a shorter period is
  810  otherwise required, a document must be made available on the
  811  association’s website or made available for download through an
  812  application on a mobile device within 30 days after the
  813  association receives or creates an official record specified in
  814  subparagraph 2.
  815         a. The association’s website or application must be:
  816         (I) An independent website, application, or web portal
  817  wholly owned and operated by the association; or
  818         (II) A website, application, or web portal operated by a
  819  third-party provider with whom the association owns, leases,
  820  rents, or otherwise obtains the right to operate a web page,
  821  subpage, web portal, collection of subpages or web portals, or
  822  an application which is dedicated to the association’s
  823  activities and on which required notices, records, and documents
  824  may be posted or made available by the association.
  825         b. The association’s website or application must be
  826  accessible through the Internet and must contain a subpage, web
  827  portal, or other protected electronic location that is
  828  inaccessible to the general public and accessible only to unit
  829  owners and employees of the association.
  830         c. Upon a unit owner’s written request, the association
  831  must provide the unit owner with a username and password and
  832  access to the protected sections of the association’s website or
  833  application which contain any notices, records, or documents
  834  that must be electronically provided.
  835         2. A current copy of the following documents must be posted
  836  in digital format on the association’s website or application:
  837         a. The recorded declaration of condominium of each
  838  condominium operated by the association and each amendment to
  839  each declaration.
  840         b. The recorded bylaws of the association and each
  841  amendment to the bylaws.
  842         c. The articles of incorporation of the association, or
  843  other documents creating the association, and each amendment to
  844  the articles of incorporation or other documents. The copy
  845  posted pursuant to this sub-subparagraph must be a copy of the
  846  articles of incorporation filed with the Department of State.
  847         d. The rules of the association.
  848         e.The approved minutes of all board of administration
  849  meetings over the preceding 12 months.
  850         f.e. A list of all executory contracts or documents to
  851  which the association is a party or under which the association
  852  or the unit owners have an obligation or responsibility and,
  853  after bidding for the related materials, equipment, or services
  854  has closed, a list of bids received by the association within
  855  the past year. Summaries of bids for materials, equipment, or
  856  services which exceed $500 must be maintained on the website or
  857  application for 1 year. In lieu of summaries, complete copies of
  858  the bids may be posted.
  859         g.f. The annual budget required by s. 718.112(2)(f) and any
  860  proposed budget to be considered at the annual meeting.
  861         h.g. The financial report required by subsection (13) and
  862  any monthly income or expense statement to be considered at a
  863  meeting.
  864         i.h. The certification of each director required by s.
  865  718.112(2)(d)4.b.
  866         j.i. All contracts or transactions between the association
  867  and any director, officer, corporation, firm, or association
  868  that is not an affiliated condominium association or any other
  869  entity in which an association director is also a director or
  870  officer and financially interested.
  871         k.j. Any contract or document regarding a conflict of
  872  interest or possible conflict of interest as provided in ss.
  873  468.4335, 468.436(2)(b)6., and 718.3027(3).
  874         l.k. The notice of any unit owner meeting and the agenda
  875  for the meeting, as required by s. 718.112(2)(d)3., no later
  876  than 14 days before the meeting. The notice must be posted in
  877  plain view on the front page of the website or application, or
  878  on a separate subpage of the website or application labeled
  879  “Notices” which is conspicuously visible and linked from the
  880  front page. The association must also post on its website or
  881  application any document to be considered and voted on by the
  882  owners during the meeting or any document listed on the agenda
  883  at least 7 days before the meeting at which the document or the
  884  information within the document will be considered.
  885         m.l. Notice of any board meeting, the agenda, and any other
  886  document required for the meeting as required by s.
  887  718.112(2)(c), which must be posted no later than the date
  888  required for notice under s. 718.112(2)(c).
  889         n.m. The inspection reports described in ss. 553.899 and
  890  718.301(4)(p) and any other inspection report relating to a
  891  structural or life safety inspection of condominium property.
  892         o.n. The association’s most recent structural integrity
  893  reserve study, if applicable.
  894         p.o. Copies of all building permits issued for ongoing or
  895  planned construction.
  896         q. A copy of all affidavits required by this chapter.
  897         3. The association shall ensure that the information and
  898  records described in paragraph (c), which are not allowed to be
  899  accessible to unit owners, are not posted on the association’s
  900  website or application. If protected information or information
  901  restricted from being accessible to unit owners is included in
  902  documents that are required to be posted on the association’s
  903  website or application, the association shall ensure the
  904  information is redacted before posting the documents.
  905  Notwithstanding the foregoing, the association or its agent is
  906  not liable for disclosing information that is protected or
  907  restricted under this paragraph unless such disclosure was made
  908  with a knowing or intentional disregard of the protected or
  909  restricted nature of such information.
  910         4. The failure of the association to post information
  911  required under subparagraph 2. is not in and of itself
  912  sufficient to invalidate any action or decision of the
  913  association’s board or its committees.
  914         (13) FINANCIAL REPORTING.—Within 90 days after the end of
  915  the fiscal year, or annually on a date provided in the bylaws,
  916  the association shall prepare and complete, or contract for the
  917  preparation and completion of, a financial report for the
  918  preceding fiscal year. Within 21 days after the final financial
  919  report is completed by the association or received from the
  920  third party, but not later than 120 days after the end of the
  921  fiscal year or other date as provided in the bylaws, the
  922  association shall deliver to each unit owner by United States
  923  mail or personal delivery at the mailing address, property
  924  address, e-mail address, or facsimile number provided to fulfill
  925  the association’s notice requirements, a copy of the most recent
  926  financial report, and a notice that a copy of the most recent
  927  financial report will be, as requested by the owner, mailed, or
  928  hand delivered, or electronically delivered via the Internet to
  929  the unit owner, without charge, within 5 business days after
  930  receipt of a written request from the unit owner. Evidence of
  931  compliance with this delivery requirement must be made by an
  932  affidavit executed by an officer or director of the association.
  933  The division shall adopt rules setting forth uniform accounting
  934  principles and standards to be used by all associations and
  935  addressing the financial reporting requirements for
  936  multicondominium associations. The rules must include, but not
  937  be limited to, standards for presenting a summary of association
  938  reserves, including a good faith estimate disclosing the annual
  939  amount of reserve funds that would be necessary for the
  940  association to fully fund reserves for each reserve item based
  941  on the straight-line accounting method. This disclosure is not
  942  applicable to reserves funded via the pooling method. In
  943  adopting such rules, the division shall consider the number of
  944  members and annual revenues of an association. Financial reports
  945  shall be prepared as follows:
  946         (a) An association that meets the criteria of this
  947  paragraph shall prepare a complete set of financial statements
  948  in accordance with generally accepted accounting principles. The
  949  financial statements must be based upon the association’s total
  950  annual revenues, as follows:
  951         1. An association with total annual revenues of $150,000 or
  952  more, but less than $300,000, shall prepare compiled financial
  953  statements.
  954         2. An association with total annual revenues of at least
  955  $300,000, but less than $500,000, shall prepare reviewed
  956  financial statements.
  957         3. An association with total annual revenues of $500,000 or
  958  more shall prepare audited financial statements.
  959         (b)1. An association with total annual revenues of less
  960  than $150,000 shall prepare a report of cash receipts and
  961  expenditures.
  962         2. A report of cash receipts and disbursements must
  963  disclose the amount of receipts by accounts and receipt
  964  classifications and the amount of expenses by accounts and
  965  expense classifications, including, but not limited to, the
  966  following, as applicable: costs for security, professional and
  967  management fees and expenses, taxes, costs for recreation
  968  facilities, expenses for refuse collection and utility services,
  969  expenses for lawn care, costs for building maintenance and
  970  repair, insurance costs, administration and salary expenses, and
  971  reserves accumulated and expended for capital expenditures,
  972  deferred maintenance, and any other category for which the
  973  association maintains reserves.
  974         (c) An association may prepare, without a meeting of or
  975  approval by the unit owners:
  976         1. Compiled, reviewed, or audited financial statements, if
  977  the association is required to prepare a report of cash receipts
  978  and expenditures;
  979         2. Reviewed or audited financial statements, if the
  980  association is required to prepare compiled financial
  981  statements; or
  982         3. Audited financial statements if the association is
  983  required to prepare reviewed financial statements.
  984         (d) If approved by a majority of the voting interests
  985  present at a properly called meeting of the association, an
  986  association may prepare:
  987         1. A report of cash receipts and expenditures in lieu of a
  988  compiled, reviewed, or audited financial statement;
  989         2. A report of cash receipts and expenditures or a compiled
  990  financial statement in lieu of a reviewed or audited financial
  991  statement; or
  992         3. A report of cash receipts and expenditures, a compiled
  993  financial statement, or a reviewed financial statement in lieu
  994  of an audited financial statement.
  995  
  996  Such meeting and approval must occur before the end of the
  997  fiscal year and is effective only for the fiscal year in which
  998  the vote is taken. An association may not prepare a financial
  999  report pursuant to this paragraph for consecutive fiscal years.
 1000  If the developer has not turned over control of the association,
 1001  all unit owners, including the developer, may vote on issues
 1002  related to the preparation of the association’s financial
 1003  reports, from the date of incorporation of the association
 1004  through the end of the second fiscal year after the fiscal year
 1005  in which the certificate of a surveyor and mapper is recorded
 1006  pursuant to s. 718.104(4)(e) or an instrument that transfers
 1007  title to a unit in the condominium which is not accompanied by a
 1008  recorded assignment of developer rights in favor of the grantee
 1009  of such unit is recorded, whichever occurs first. Thereafter,
 1010  all unit owners except the developer may vote on such issues
 1011  until control is turned over to the association by the
 1012  developer. Any audit or review prepared under this section shall
 1013  be paid for by the developer if done before turnover of control
 1014  of the association.
 1015         (e) A unit owner may provide written notice to the division
 1016  of the association’s failure to mail or hand deliver him or her
 1017  a copy of the most recent financial report within 5 business
 1018  days after he or she submitted a written request to the
 1019  association for a copy of such report. If the division
 1020  determines that the association failed to mail or hand deliver a
 1021  copy of the most recent financial report to the unit owner, the
 1022  division shall provide written notice to the association that
 1023  the association must mail or hand deliver a copy of the most
 1024  recent financial report to the unit owner and the division
 1025  within 5 business days after it receives such notice from the
 1026  division. An association that fails to comply with the
 1027  division’s request may not waive the financial reporting
 1028  requirement provided in paragraph (d) for the fiscal year in
 1029  which the unit owner’s request was made and the following fiscal
 1030  year. A financial report received by the division pursuant to
 1031  this paragraph shall be maintained, and the division shall
 1032  provide a copy of such report to an association member upon his
 1033  or her request.
 1034         (16) INVESTMENT OF ASSOCIATION FUNDS.—
 1035         (a) A board shall, in fulfilling its duty to manage
 1036  operating and reserve funds of its association, use best efforts
 1037  to make prudent investment decisions that carefully consider
 1038  risk and return in an effort to maximize returns on invested
 1039  funds.
 1040         (b) An association, including a multicondominium
 1041  association, may invest reserve funds in one or any combination
 1042  of certificates of deposit or in depository accounts at a
 1043  community bank, savings bank, commercial bank, savings and loan
 1044  association, or credit union. Upon a majority vote of the voting
 1045  interests, an association may invest reserve funds in
 1046  investments other than certificates of deposit or depository
 1047  accounts at a community bank, savings bank, commercial bank,
 1048  savings and loan association, or credit union, provided the
 1049  association complies with paragraphs (c)-(g). Notwithstanding
 1050  any declaration, only funds identified as reserve funds may be
 1051  invested pursuant to paragraphs (c)-(g). Paragraphs (c)-(g) do
 1052  not apply to funds invested in one or any combination of
 1053  certificates of deposit or depository accounts at a community
 1054  bank, savings bank, commercial bank, savings and loan
 1055  association, or credit union.
 1056         (c) The board shall create an investment committee composed
 1057  of at least two board members and two-unit unit owners who are
 1058  not board members. The board shall also adopt rules for invested
 1059  funds, including, but not limited to, rules requiring periodic
 1060  reviews of any investment manager’s performance, the development
 1061  of an investment policy statement, and that all meetings of the
 1062  investment committee be recorded and made part of the official
 1063  records of the association. The investment policy statement
 1064  developed pursuant to this paragraph must, at a minimum, address
 1065  risk, liquidity, and benchmark measurements; authorized classes
 1066  of investments; authorized investment mixes; limitations on
 1067  authority relating to investment transactions; requirements for
 1068  projected reserve expenditures within, at minimum, the next 24
 1069  months to be held in cash or cash equivalents; projected
 1070  expenditures relating to a mandatory structural inspection
 1071  performed pursuant to s. 553.899; and protocols for proxy
 1072  response.
 1073         (d) The investment committee shall recommend investment
 1074  advisers to the board, and the board shall select one of the
 1075  recommended investment advisers to provide services to the
 1076  association. Such investment advisers must be registered or have
 1077  notice filed under s. 517.12. The selected investment adviser
 1078  and any representative or association of the investment adviser
 1079  may not be related by affinity or consanguinity to, or under
 1080  common ownership with, any board member, community management
 1081  company, reserve study provider, or unit owner. The investment
 1082  adviser shall comply with the prudent investor rule in s.
 1083  518.11. The investment adviser shall act as a fiduciary to the
 1084  association in compliance with the standards set forth in the
 1085  Employee Retirement Income Security Act of 1974 at 29 U.S.C. s.
 1086  1104(a)(1)(A)-(C). In case of conflict with other laws
 1087  authorizing investments, the investment and fiduciary standards
 1088  set forth in this subsection must prevail. If at any time the
 1089  investment committee determines that an investment adviser does
 1090  not meet the requirements of this section, the investment
 1091  committee must recommend a replacement investment adviser to the
 1092  board.
 1093         (e) At least once each calendar year, or sooner if a
 1094  substantial financial obligation of the association becomes
 1095  known to the board, the association must provide the investment
 1096  adviser with the association’s investment policy statement, the
 1097  most recent reserve study report, the association’s structural
 1098  integrity report, and the financial reports prepared pursuant to
 1099  subsection (13). If there is no recent reserve study report, the
 1100  association must provide the investment adviser with a good
 1101  faith estimate disclosing the annual amount of reserve funds
 1102  necessary for the association to fund reserves fully for the
 1103  life of each reserve component and each component’s
 1104  redundancies. The investment adviser shall annually review these
 1105  documents and provide the association with a portfolio
 1106  allocation model that is suitably structured and prudently
 1107  designed to match projected annual reserve fund requirements and
 1108  liability, assets, and liquidity requirements. The investment
 1109  adviser shall prepare a funding projection for each reserve
 1110  component, including any of the component’s redundancies. The
 1111  association must have available at all times a minimum of 24
 1112  months of projected reserves in cash or cash equivalents.
 1113         (f) Portfolios managed by the investment adviser may
 1114  contain any type of investment necessary to meet the objectives
 1115  in the investment policy statement; however, portfolios may not
 1116  contain stocks, securities, or other obligations that the State
 1117  Board of Administration is prohibited from investing in under s.
 1118  215.471, s. 215.4725, or s. 215.473 or that state agencies are
 1119  prohibited from investing in under s. 215.472, as determined by
 1120  the investment adviser. Any funds invested by the investment
 1121  adviser must be held in third-party custodial accounts that are
 1122  subject to insurance coverage by the Securities Investor
 1123  Protection Corporation in an amount equal to or greater than the
 1124  invested amount. The investment adviser may withdraw investment
 1125  fees, expenses, and commissions from invested funds.
 1126         (g) The investment adviser shall:
 1127         1. Annually provide the association with a written
 1128  certification of compliance with this section and a list of
 1129  stocks, securities, and other obligations that are prohibited
 1130  from being in association portfolios under paragraph (f); and
 1131         2. Submit monthly, quarterly, and annual reports to the
 1132  association which are prepared in accordance with established
 1133  financial industry standards and in accordance with chapter 517.
 1134         (h) Any principal, earnings, or interest managed under this
 1135  subsection must be available at no cost or charge to the
 1136  association within 15 business days after delivery of the
 1137  association’s written or electronic request.
 1138         (i)Unallocated income earned on reserve fund investments
 1139  must be spent only on capital expenditures, planned maintenance,
 1140  structural repairs, or other items for which the reserve
 1141  accounts have been established. Any surplus of funds which
 1142  exceeds the amount required to maintain reasonably funded
 1143  reserves must be managed pursuant to s. 718.115.
 1144         Section 6. Paragraphs (b) through (g) of subsection (2) of
 1145  section 718.112, Florida Statutes, are amended to read:
 1146         718.112 Bylaws.—
 1147         (2) REQUIRED PROVISIONS.—The bylaws shall provide for the
 1148  following and, if they do not do so, shall be deemed to include
 1149  the following:
 1150         (b) Quorum; voting requirements; proxies.—
 1151         1. Unless a lower number is provided in the bylaws, the
 1152  percentage of voting interests required to constitute a quorum
 1153  at a meeting of the members is a majority of the voting
 1154  interests. Unless otherwise provided in this chapter or in the
 1155  declaration, articles of incorporation, or bylaws, and except as
 1156  provided in subparagraph (d)4., decisions shall be made by a
 1157  majority of the voting interests represented at a meeting at
 1158  which a quorum is present.
 1159         2. Except as specifically otherwise provided herein, unit
 1160  owners in a residential condominium may not vote by general
 1161  proxy, but may vote by limited proxies substantially conforming
 1162  to a limited proxy form adopted by the division. A voting
 1163  interest or consent right allocated to a unit owned by the
 1164  association may not be exercised or considered for any purpose,
 1165  whether for a quorum, an election, or otherwise. Limited proxies
 1166  and general proxies may be used to establish a quorum. Limited
 1167  proxies shall be used for votes taken to waive or reduce
 1168  reserves in accordance with subparagraph (f)2.; for votes taken
 1169  to waive the financial reporting requirements of s. 718.111(13);
 1170  for votes taken to amend the declaration pursuant to s. 718.110;
 1171  for votes taken to amend the articles of incorporation or bylaws
 1172  pursuant to this section; and for any other matter for which
 1173  this chapter requires or permits a vote of the unit owners.
 1174  Except as provided in paragraph (d), a proxy, limited or
 1175  general, may not be used in the election of board members in a
 1176  residential condominium. General proxies may be used for other
 1177  matters for which limited proxies are not required, and may be
 1178  used in voting for nonsubstantive changes to items for which a
 1179  limited proxy is required and given. Notwithstanding this
 1180  subparagraph, unit owners may vote in person at unit owner
 1181  meetings. This subparagraph does not limit the use of general
 1182  proxies or require the use of limited proxies for any agenda
 1183  item or election at any meeting of a timeshare condominium
 1184  association or a nonresidential condominium association.
 1185         3. A proxy given is effective only for the specific meeting
 1186  for which originally given and any lawfully adjourned meetings
 1187  thereof. A proxy is not valid longer than 90 days after the date
 1188  of the first meeting for which it was given. Each proxy is
 1189  revocable at any time at the pleasure of the unit owner
 1190  executing it.
 1191         4. A member of the board of administration or a committee
 1192  may submit in writing his or her agreement or disagreement with
 1193  any action taken at a meeting that the member did not attend.
 1194  This agreement or disagreement may not be used as a vote for or
 1195  against the action taken or to create a quorum.
 1196         5. A board meeting may be conducted in person or by
 1197  videoconference. A board or committee member’s participation in
 1198  a meeting via telephone, real-time videoconferencing, or similar
 1199  real-time electronic or video communication counts toward a
 1200  quorum, and such member may vote as if physically present. A
 1201  board member may not participate in any meeting of the
 1202  association, including unit owner meetings, by videoconference
 1203  more than two times in a calendar year. A speaker must be used
 1204  so that the conversation of such members may be heard by the
 1205  board or committee members attending in person as well as by any
 1206  unit owners present at a meeting. The division shall adopt rules
 1207  pursuant to ss. 120.536 and 120.54 governing the requirements
 1208  for meetings.
 1209         (c) Board of administration meetings.—In a residential
 1210  condominium association of more than 10 units, the board of
 1211  administration shall meet at least once each quarter. At least
 1212  four times each year, the meeting agenda must include an
 1213  opportunity for members to ask questions of the board. Meetings
 1214  of the board of administration at which a quorum of the members
 1215  is present are open to all unit owners. Members of the board of
 1216  administration may use e-mail as a means of communication but
 1217  may not cast a vote on an association matter via e-mail. A unit
 1218  owner may tape record or videotape the meetings. The right to
 1219  attend such meetings includes the right to speak at such
 1220  meetings with reference to all designated agenda items and the
 1221  right to ask questions relating to reports on the status of
 1222  construction or repair projects, the status of revenues and
 1223  expenditures during the current fiscal year, and other issues
 1224  affecting the condominium. The division shall adopt reasonable
 1225  rules governing the tape recording and videotaping of the
 1226  meeting. The association may adopt written reasonable rules
 1227  governing the frequency, duration, and manner of unit owner
 1228  statements.
 1229         1. Adequate notice of all board meetings, which must
 1230  specifically identify all agenda items, must be posted
 1231  conspicuously on the condominium property at least 48 continuous
 1232  hours before the meeting except in an emergency. If the board
 1233  meeting is to be conducted via videoconference, the notice must
 1234  state that such meeting will be via videoconference and must
 1235  include a hyperlink and a conference telephone number for unit
 1236  owners to attend the meeting via videoconference, as well as the
 1237  address of the physical location where the unit owners can
 1238  attend the meeting in person. If the meeting is conducted via
 1239  videoconference, it must be recorded and such recording must be
 1240  maintained as an official record of the association. If 20
 1241  percent of the voting interests petition the board to address an
 1242  item of business, the board, within 60 days after receipt of the
 1243  petition, shall place the item on the agenda at its next regular
 1244  board meeting or at a special meeting called for that purpose.
 1245  An item not included on the notice may be taken up on an
 1246  emergency basis by a vote of at least a majority plus one of the
 1247  board members. Such emergency action must be noticed and
 1248  ratified at the next regular board meeting. Written notice of a
 1249  meeting at which a nonemergency special assessment or an
 1250  amendment to rules regarding unit use will be considered must be
 1251  mailed, delivered, or electronically transmitted to the unit
 1252  owners and posted conspicuously on the condominium property at
 1253  least 14 days before the meeting. Evidence of compliance with
 1254  this 14-day notice requirement must be made by an affidavit
 1255  executed by the person providing the notice and filed with the
 1256  official records of the association.
 1257         2. Upon notice to the unit owners, the board shall, by duly
 1258  adopted rule, designate a specific location on the condominium
 1259  property at which all notices of board meetings must be posted.
 1260  If there is no condominium property at which notices can be
 1261  posted, Notices shall be mailed, delivered, or electronically
 1262  transmitted to each unit owner who has consented to receive
 1263  electronic notifications at least 14 days before the meeting. In
 1264  lieu of or in addition to the physical posting of the notice on
 1265  the condominium property and mailing, delivering, or
 1266  electronically transmitting the notice, the association may, by
 1267  reasonable rule, adopt a procedure for conspicuously posting and
 1268  repeatedly broadcasting the notice and the agenda on a closed
 1269  circuit cable television system serving the condominium
 1270  association. However, if broadcast notice is used in lieu of a
 1271  notice physically posted on condominium property, the notice and
 1272  agenda must be broadcast at least four times every broadcast
 1273  hour of each day that a posted notice is otherwise required
 1274  under this section. If broadcast notice is provided, the notice
 1275  and agenda must be broadcast in a manner and for a sufficient
 1276  continuous length of time so as to allow an average reader to
 1277  observe the notice and read and comprehend the entire content of
 1278  the notice and the agenda. In addition to any of the authorized
 1279  means of providing notice of a meeting of the board, the
 1280  association may, by rule, adopt a procedure for conspicuously
 1281  posting the meeting notice and the agenda on a website serving
 1282  the condominium association for at least the minimum period of
 1283  time for which a notice of a meeting is also required to be
 1284  physically posted on the condominium property. Any rule adopted
 1285  shall, in addition to other matters, include a requirement that
 1286  the association send an electronic notice in the same manner as
 1287  a notice for a meeting of the members, which must include a
 1288  hyperlink to the website at which the notice is posted, to unit
 1289  owners whose e-mail addresses are included in the association’s
 1290  official records.
 1291         3. Notice of any meeting in which regular or special
 1292  assessments against unit owners are to be considered must
 1293  specifically state that assessments will be considered and
 1294  provide the estimated cost and description of the purposes for
 1295  such assessments. If an agenda item relates to the approval of a
 1296  contract for goods or services, a copy of the contract must be
 1297  provided with the notice and be made available for inspection
 1298  and copying upon a written request from a unit owner or made
 1299  available on the association’s website or through an application
 1300  that can be downloaded on a mobile device.
 1301         4. Meetings of a committee to take final action on behalf
 1302  of the board or make recommendations to the board regarding the
 1303  association budget are subject to this paragraph. Meetings of a
 1304  committee that does not take final action on behalf of the board
 1305  or make recommendations to the board regarding the association
 1306  budget are subject to this section, unless those meetings are
 1307  exempted from this section by the bylaws of the association.
 1308         5. Notwithstanding any other law, the requirement that
 1309  board meetings and committee meetings be open to the unit owners
 1310  does not apply to:
 1311         a. Meetings between the board or a committee and the
 1312  association’s attorney, with respect to proposed or pending
 1313  litigation, if the meeting is held for the purpose of seeking or
 1314  rendering legal advice; or
 1315         b. Board meetings held for the purpose of discussing
 1316  personnel matters.
 1317         (d) Unit owner meetings.—
 1318         1. An annual meeting of the unit owners must be held at the
 1319  location provided in the association bylaws and, if the bylaws
 1320  are silent as to the location, the meeting must be held within
 1321  10 miles 45 miles of the condominium property. However, such
 1322  distance requirement does not apply to an association governing
 1323  a timeshare condominium. If a unit owner meeting is conducted
 1324  via videoconference, a unit owner may vote electronically in the
 1325  manner provided in s. 718.128.
 1326         2. Unit owner meetings, including the annual meeting of the
 1327  unit owners, may be conducted in person or via videoconference.
 1328  If the annual meeting of the unit owners is conducted via
 1329  videoconference, a quorum of the members of the board of
 1330  administration must be physically present at the physical
 1331  location where unit owners can attend the meeting. The location
 1332  must be provided in the association bylaws and, if the bylaws
 1333  are silent as to the location, the meeting must be held within
 1334  10 miles of the condominium property. If the unit owner meeting
 1335  is conducted via videoconference, the videoconference must be
 1336  recorded and such recording must be maintained as an official
 1337  record of the association. The division shall adopt rules
 1338  pursuant to ss. 120.536 and 120.54 governing the requirements
 1339  for meetings.
 1340         3.2. Unless the bylaws provide otherwise, a vacancy on the
 1341  board caused by the expiration of a director’s term must be
 1342  filled by electing a new board member, and the election must be
 1343  by secret ballot. An election is not required if the number of
 1344  vacancies equals or exceeds the number of candidates. For
 1345  purposes of this paragraph, the term “candidate” means an
 1346  eligible person who has timely submitted the written notice, as
 1347  described in sub-subparagraph 4.a., of his or her intention to
 1348  become a candidate. Except in a timeshare or nonresidential
 1349  condominium, or if the staggered term of a board member does not
 1350  expire until a later annual meeting, or if all members’ terms
 1351  would otherwise expire but there are no candidates, the terms of
 1352  all board members expire at the annual meeting, and such members
 1353  may stand for reelection unless prohibited by the bylaws. Board
 1354  members may serve terms longer than 1 year if permitted by the
 1355  bylaws or articles of incorporation. A board member may not
 1356  serve more than 8 consecutive years unless approved by an
 1357  affirmative vote of unit owners representing two-thirds of all
 1358  votes cast in the election or unless there are not enough
 1359  eligible candidates to fill the vacancies on the board at the
 1360  time of the vacancy. Only board service that occurs on or after
 1361  July 1, 2018, may be used when calculating a board member’s term
 1362  limit. If the number of board members whose terms expire at the
 1363  annual meeting equals or exceeds the number of candidates, the
 1364  candidates become members of the board effective upon the
 1365  adjournment of the annual meeting. Unless the bylaws provide
 1366  otherwise, any remaining vacancies shall be filled by the
 1367  affirmative vote of the majority of the directors making up the
 1368  newly constituted board even if the directors constitute less
 1369  than a quorum or there is only one director. In a residential
 1370  condominium association of more than 10 units or in a
 1371  residential condominium association that does not include
 1372  timeshare units or timeshare interests, co-owners of a unit may
 1373  not serve as members of the board of directors at the same time
 1374  unless they own more than one unit or unless there are not
 1375  enough eligible candidates to fill the vacancies on the board at
 1376  the time of the vacancy. A unit owner in a residential
 1377  condominium desiring to be a candidate for board membership must
 1378  comply with sub-subparagraph 4.a. and must be eligible to be a
 1379  candidate to serve on the board of directors at the time of the
 1380  deadline for submitting a notice of intent to run in order to
 1381  have his or her name listed as a proper candidate on the ballot
 1382  or to serve on the board. A person who has been suspended or
 1383  removed by the division under this chapter, or who is delinquent
 1384  in the payment of any assessment due to the association, is not
 1385  eligible to be a candidate for board membership and may not be
 1386  listed on the ballot. For purposes of this paragraph, a person
 1387  is delinquent if a payment is not made by the due date as
 1388  specifically identified in the declaration of condominium,
 1389  bylaws, or articles of incorporation. If a due date is not
 1390  specifically identified in the declaration of condominium,
 1391  bylaws, or articles of incorporation, the due date is the first
 1392  day of the assessment period. A person who has been convicted of
 1393  any felony in this state or in a United States District or
 1394  Territorial Court, or who has been convicted of any offense in
 1395  another jurisdiction which would be considered a felony if
 1396  committed in this state, is not eligible for board membership
 1397  unless such felon’s civil rights have been restored for at least
 1398  5 years as of the date such person seeks election to the board.
 1399  The validity of an action by the board is not affected if it is
 1400  later determined that a board member is ineligible for board
 1401  membership due to having been convicted of a felony. This
 1402  subparagraph does not limit the term of a member of the board of
 1403  a nonresidential or timeshare condominium.
 1404         4.3. The bylaws must provide the method of calling meetings
 1405  of unit owners, including annual meetings. Written notice of an
 1406  annual meeting must include an agenda; be mailed, hand
 1407  delivered, or electronically transmitted to each unit owner at
 1408  least 14 days before the annual meeting; and be posted in a
 1409  conspicuous place on the condominium property or association
 1410  property at least 14 continuous days before the annual meeting.
 1411  Written notice of a meeting other than an annual meeting must
 1412  include an agenda; be mailed, hand delivered, or electronically
 1413  transmitted to each unit owner; and be posted in a conspicuous
 1414  place on the condominium property or association property within
 1415  the timeframe specified in the bylaws. If the bylaws do not
 1416  specify a timeframe for written notice of a meeting other than
 1417  an annual meeting, notice must be provided at least 14
 1418  continuous days before the meeting. Upon notice to the unit
 1419  owners, the board shall, by duly adopted rule, designate a
 1420  specific location on the condominium property or association
 1421  property at which all notices of unit owner meetings must be
 1422  posted. This requirement does not apply if there is no
 1423  condominium property for posting notices. In lieu of, or in In
 1424  addition to, the physical posting of meeting notices, the
 1425  association may, by reasonable rule, adopt a procedure for
 1426  conspicuously posting and repeatedly broadcasting the notice and
 1427  the agenda on a closed-circuit cable television system serving
 1428  the condominium association. However, if broadcast notice is
 1429  used in lieu of a notice posted physically on the condominium
 1430  property, the notice and agenda must be broadcast at least four
 1431  times every broadcast hour of each day that a posted notice is
 1432  otherwise required under this section. If broadcast notice is
 1433  provided, the notice and agenda must be broadcast in a manner
 1434  and for a sufficient continuous length of time so as to allow an
 1435  average reader to observe the notice and read and comprehend the
 1436  entire content of the notice and the agenda. In addition to any
 1437  of the authorized means of providing notice of a meeting of the
 1438  board, the association may, by rule, adopt a procedure for
 1439  conspicuously posting the meeting notice and the agenda on a
 1440  website serving the condominium association for at least the
 1441  minimum period of time for which a notice of a meeting is also
 1442  required to be physically posted on the condominium property.
 1443  Any rule adopted shall, in addition to other matters, include a
 1444  requirement that the association send an electronic notice in
 1445  the same manner as a notice for a meeting of the members, which
 1446  must include a hyperlink to the website at which the notice is
 1447  posted, to unit owners whose e-mail addresses are included in
 1448  the association’s official records. Unless a unit owner waives
 1449  in writing the right to receive notice of the annual meeting,
 1450  such notice must be hand delivered, mailed, or electronically
 1451  transmitted to each unit owner. Notice for meetings and notice
 1452  for all other purposes must be mailed to each unit owner at the
 1453  address last furnished to the association by the unit owner, or
 1454  hand delivered to each unit owner. However, if a unit is owned
 1455  by more than one person, the association must provide notice to
 1456  the address that the developer identifies for that purpose and
 1457  thereafter as one or more of the owners of the unit advise the
 1458  association in writing, or if no address is given or the owners
 1459  of the unit do not agree, to the address provided on the deed of
 1460  record. An officer of the association, or the manager or other
 1461  person providing notice of the association meeting, must provide
 1462  an affidavit or United States Postal Service certificate of
 1463  mailing, to be included in the official records of the
 1464  association affirming that the notice was mailed or hand
 1465  delivered in accordance with this provision.
 1466         5.4. The members of the board of a residential condominium
 1467  shall be elected by written ballot or voting machine. Proxies
 1468  may not be used in electing the board in general elections or
 1469  elections to fill vacancies caused by recall, resignation, or
 1470  otherwise, unless otherwise provided in this chapter. This
 1471  subparagraph does not apply to an association governing a
 1472  timeshare condominium.
 1473         a. At least 60 days before a scheduled election, the
 1474  association shall mail, deliver, or electronically transmit, by
 1475  separate association mailing or included in another association
 1476  mailing, delivery, or transmission, including regularly
 1477  published newsletters, to each unit owner entitled to a vote, a
 1478  first notice of the date of the election. A unit owner or other
 1479  eligible person desiring to be a candidate for the board must
 1480  give written notice of his or her intent to be a candidate to
 1481  the association at least 40 days before a scheduled election.
 1482  Together with the written notice and agenda as set forth in
 1483  subparagraph 3., the association shall mail, deliver, or
 1484  electronically transmit a second notice of the election to all
 1485  unit owners entitled to vote, together with a ballot that lists
 1486  all candidates not less than 14 days or more than 34 days before
 1487  the date of the election. Upon request of a candidate, an
 1488  information sheet, no larger than 8 1/2 inches by 11 inches,
 1489  which must be furnished by the candidate at least 35 days before
 1490  the election, must be included with the mailing, delivery, or
 1491  transmission of the ballot, with the costs of mailing, delivery,
 1492  or electronic transmission and copying to be borne by the
 1493  association. The association is not liable for the contents of
 1494  the information sheets prepared by the candidates. In order to
 1495  reduce costs, the association may print or duplicate the
 1496  information sheets on both sides of the paper. The division
 1497  shall by rule establish voting procedures consistent with this
 1498  sub-subparagraph, including rules establishing procedures for
 1499  giving notice by electronic transmission and rules providing for
 1500  the secrecy of ballots. Elections shall be decided by a
 1501  plurality of ballots cast. There is no quorum requirement;
 1502  however, at least 20 percent of the eligible voters must cast a
 1503  ballot in order to have a valid election. A unit owner may not
 1504  authorize any other person to vote his or her ballot, and any
 1505  ballots improperly cast are invalid. A unit owner who violates
 1506  this provision may be fined by the association in accordance
 1507  with s. 718.303. A unit owner who needs assistance in casting
 1508  the ballot for the reasons stated in s. 101.051 may obtain such
 1509  assistance. The regular election must occur on the date of the
 1510  annual meeting. Notwithstanding this sub-subparagraph, an
 1511  election is not required unless more candidates file notices of
 1512  intent to run or are nominated than board vacancies exist.
 1513         b. A director of a board of an association of a residential
 1514  condominium shall:
 1515         (I) Certify in writing to the secretary of the association
 1516  that he or she has read the association’s declaration of
 1517  condominium, articles of incorporation, bylaws, and current
 1518  written policies; that he or she will work to uphold such
 1519  documents and policies to the best of his or her ability; and
 1520  that he or she will faithfully discharge his or her fiduciary
 1521  responsibility to the association’s members.
 1522         (II) Submit to the secretary of the association a
 1523  certificate of having satisfactorily completed the educational
 1524  curriculum administered by the division or a division-approved
 1525  condominium education provider. The educational curriculum must
 1526  be at least 4 hours long and include instruction on milestone
 1527  inspections, structural integrity reserve studies, elections,
 1528  recordkeeping, financial literacy and transparency, levying of
 1529  fines, and notice and meeting requirements.
 1530  
 1531  Each newly elected or appointed director must submit to the
 1532  secretary of the association the written certification and
 1533  educational certificate within 1 year before being elected or
 1534  appointed or 90 days after the date of election or appointment.
 1535  A director of an association of a residential condominium who
 1536  was elected or appointed before July 1, 2024, must comply with
 1537  the written certification and educational certificate
 1538  requirements in this sub-subparagraph by June 30, 2025. The
 1539  written certification and educational certificate is valid for 7
 1540  years after the date of issuance and does not have to be
 1541  resubmitted as long as the director serves on the board without
 1542  interruption during the 7-year period. A director who is
 1543  appointed by the developer may satisfy the educational
 1544  certificate requirement in sub-sub-subparagraph (II) for any
 1545  subsequent appointment to a board by a developer within 7 years
 1546  after the date of issuance of the most recent educational
 1547  certificate, including any interruption of service on a board or
 1548  appointment to a board in another association within that 7-year
 1549  period. One year after submission of the most recent written
 1550  certification and educational certificate, and annually
 1551  thereafter, a director of an association of a residential
 1552  condominium must submit to the secretary of the association a
 1553  certificate of having satisfactorily completed at least 1 hour
 1554  of continuing education administered by the division, or a
 1555  division-approved condominium education provider, relating to
 1556  any recent changes to this chapter and the related
 1557  administrative rules during the past year. A director of an
 1558  association of a residential condominium who fails to timely
 1559  file the written certification and educational certificate is
 1560  suspended from service on the board until he or she complies
 1561  with this sub-subparagraph. The board may temporarily fill the
 1562  vacancy during the period of suspension. The secretary shall
 1563  cause the association to retain a director’s written
 1564  certification and educational certificate for inspection by the
 1565  members for 7 years after a director’s election or the duration
 1566  of the director’s uninterrupted tenure, whichever is longer.
 1567  Failure to have such written certification and educational
 1568  certificate on file does not affect the validity of any board
 1569  action.
 1570         c. Any challenge to the election process must be commenced
 1571  within 60 days after the election results are announced.
 1572         6.5. Any approval by unit owners called for by this chapter
 1573  or the applicable declaration or bylaws, including, but not
 1574  limited to, the approval requirement in s. 718.111(8), must be
 1575  made at a duly noticed meeting of unit owners and is subject to
 1576  all requirements of this chapter or the applicable condominium
 1577  documents relating to unit owner decisionmaking, except that
 1578  unit owners may take action by written agreement, without
 1579  meetings, on matters for which action by written agreement
 1580  without meetings is expressly allowed by the applicable bylaws
 1581  or declaration or any law that provides for such action.
 1582         7.6. Unit owners may waive notice of specific meetings if
 1583  allowed by the applicable bylaws or declaration or any law.
 1584  Notice of meetings of the board of administration; unit owner
 1585  meetings, except unit owner meetings called to recall board
 1586  members under paragraph (l); and committee meetings may be given
 1587  by electronic transmission to unit owners who consent to receive
 1588  notice by electronic transmission. A unit owner who consents to
 1589  receiving notices by electronic transmission is solely
 1590  responsible for removing or bypassing filters that block receipt
 1591  of mass e-mails sent to members on behalf of the association in
 1592  the course of giving electronic notices.
 1593         8.7. Unit owners have the right to participate in meetings
 1594  of unit owners with reference to all designated agenda items.
 1595  However, the association may adopt reasonable rules governing
 1596  the frequency, duration, and manner of unit owner participation.
 1597         9.8. A unit owner may tape record or videotape a meeting of
 1598  the unit owners subject to reasonable rules adopted by the
 1599  division.
 1600         10.9. Unless otherwise provided in the bylaws, any vacancy
 1601  occurring on the board before the expiration of a term may be
 1602  filled by the affirmative vote of the majority of the remaining
 1603  directors, even if the remaining directors constitute less than
 1604  a quorum, or by the sole remaining director. In the alternative,
 1605  a board may hold an election to fill the vacancy, in which case
 1606  the election procedures must conform to sub-subparagraph 4.a.
 1607  unless the association governs 10 units or fewer and has opted
 1608  out of the statutory election process, in which case the bylaws
 1609  of the association control. Unless otherwise provided in the
 1610  bylaws, a board member appointed or elected under this section
 1611  shall fill the vacancy for the unexpired term of the seat being
 1612  filled. Filling vacancies created by recall is governed by
 1613  paragraph (l) and rules adopted by the division.
 1614         11.10. This chapter does not limit the use of general or
 1615  limited proxies, require the use of general or limited proxies,
 1616  or require the use of a written ballot or voting machine for any
 1617  agenda item or election at any meeting of a timeshare
 1618  condominium association or nonresidential condominium
 1619  association.
 1620  
 1621  Notwithstanding subparagraph (b)2. and sub-subparagraph 4.a., an
 1622  association of 10 or fewer units may, by affirmative vote of a
 1623  majority of the total voting interests, provide for different
 1624  voting and election procedures in its bylaws, which may be by a
 1625  proxy specifically delineating the different voting and election
 1626  procedures. The different voting and election procedures may
 1627  provide for elections to be conducted by limited or general
 1628  proxy.
 1629         (e) Budget meeting.—
 1630         1. Any meeting at which a proposed annual budget of an
 1631  association will be considered by the board or unit owners shall
 1632  be open to all unit owners. A meeting of the board or unit
 1633  owners at which a proposed annual association budget will be
 1634  considered may be conducted by videoconference. The division
 1635  shall adopt rules pursuant to ss. 120.536 and 120.54 governing
 1636  the requirements for such meetings. A sound transmitting device
 1637  must be used so that the conversation of such members may be
 1638  heard by the board or committee members attending in person, as
 1639  well as any unit owners present at the meeting. At least 14 days
 1640  before prior to such a meeting, the board shall hand deliver to
 1641  each unit owner, mail to each unit owner at the address last
 1642  furnished to the association by the unit owner, or
 1643  electronically transmit to the location furnished by the unit
 1644  owner for that purpose a notice of such meeting and a copy of
 1645  the proposed annual budget. An officer or manager of the
 1646  association, or other person providing notice of such meeting,
 1647  shall execute an affidavit evidencing compliance with such
 1648  notice requirement, and such affidavit shall be filed among the
 1649  official records of the association.
 1650         2.a. If a board proposes adopts in any fiscal year an
 1651  annual budget which requires assessments against unit owners
 1652  which exceed 115 percent of assessments for the preceding fiscal
 1653  year, the board shall simultaneously propose a substitute budget
 1654  that does not include any discretionary expenditures that are
 1655  not required to be in the budget conduct a special meeting of
 1656  the unit owners to consider a substitute budget if the board
 1657  receives, within 21 days after adoption of the annual budget, a
 1658  written request for a special meeting from at least 10 percent
 1659  of all voting interests. The substitute budget must be proposed
 1660  at the budget meeting before the adoption of the annual budget.
 1661  The special meeting shall be conducted within 60 days after
 1662  adoption of the annual budget. At least 14 days before such
 1663  budget meeting in which a substitute budget will be proposed
 1664  prior to such special meeting, the board shall hand deliver to
 1665  each unit owner, or mail to each unit owner at the address last
 1666  furnished to the association, a notice of the meeting. An
 1667  officer or manager of the association, or other person providing
 1668  notice of such meeting shall execute an affidavit evidencing
 1669  compliance with this notice requirement, and such affidavit
 1670  shall be filed among the official records of the association.
 1671  Unit owners must may consider and may adopt a substitute budget
 1672  at the special meeting. A substitute budget is adopted if
 1673  approved by a majority of all voting interests unless the bylaws
 1674  require adoption by a greater percentage of voting interests. If
 1675  there is not a quorum at the special meeting or a substitute
 1676  budget is not adopted, the annual budget previously initially
 1677  proposed adopted by the board may be adopted shall take effect
 1678  as scheduled.
 1679         b. Any determination of whether assessments exceed 115
 1680  percent of assessments for the prior fiscal year shall exclude
 1681  any authorized provision for reasonable reserves for repair or
 1682  replacement of the condominium property, anticipated expenses of
 1683  the association which the board does not expect to be incurred
 1684  on a regular or annual basis, and insurance premiums, or
 1685  assessments for betterments to the condominium property.
 1686         c. If the developer controls the board, assessments may
 1687  shall not exceed 115 percent of assessments for the prior fiscal
 1688  year unless approved by a majority of all voting interests.
 1689         (f) Annual budget.—
 1690         1. The proposed annual budget of estimated revenues and
 1691  expenses must be detailed and must show the amounts budgeted by
 1692  accounts and expense classifications, including, at a minimum,
 1693  any applicable expenses listed in s. 718.504(21). The board
 1694  shall adopt the annual budget at least 14 days before the start
 1695  of the association’s fiscal year. In the event that the board
 1696  fails to timely adopt the annual budget a second time, it is
 1697  deemed a minor violation and the prior year’s budget shall
 1698  continue in effect until a new budget is adopted. A
 1699  multicondominium association must adopt a separate budget of
 1700  common expenses for each condominium the association operates
 1701  and must adopt a separate budget of common expenses for the
 1702  association. In addition, if the association maintains limited
 1703  common elements with the cost to be shared only by those
 1704  entitled to use the limited common elements as provided for in
 1705  s. 718.113(1), the budget or a schedule attached to it must show
 1706  the amount budgeted for this maintenance. If, after turnover of
 1707  control of the association to the unit owners, any of the
 1708  expenses listed in s. 718.504(21) are not applicable, they do
 1709  not need to be listed.
 1710         2.a. In addition to annual operating expenses, the budget
 1711  must include reserve accounts for capital expenditures and
 1712  deferred maintenance. These accounts must include, but are not
 1713  limited to, roof replacement, building painting, and pavement
 1714  resurfacing, regardless of the amount of deferred maintenance
 1715  expense or replacement cost, and any other item that has a
 1716  deferred maintenance expense or replacement cost that exceeds
 1717  $25,000 $10,000. The amount to be reserved must be computed
 1718  using a formula based upon estimated remaining useful life and
 1719  estimated replacement cost or deferred maintenance expense of
 1720  the reserve item. In a budget adopted by an association that is
 1721  required to obtain a structural integrity reserve study,
 1722  reserves must be maintained for the items identified in
 1723  paragraph (g) for which the association is responsible pursuant
 1724  to the declaration of condominium, and the reserve amount for
 1725  such items must be based on the findings and recommendations of
 1726  the association’s most recent structural integrity reserve
 1727  study. If an association votes to terminate the condominium in
 1728  accordance with s. 718.117, the members may vote to waive the
 1729  maintenance of reserves recommended by the association’s most
 1730  recent structural integrity reserve study. With respect to items
 1731  for which an estimate of useful life is not readily
 1732  ascertainable or with an estimated remaining useful life of
 1733  greater than 25 years, an association is not required to reserve
 1734  replacement costs for such items, but an association must
 1735  reserve the amount of deferred maintenance expense, if any,
 1736  which is recommended by the structural integrity reserve study
 1737  for such items. The association may adjust replacement reserve
 1738  assessments annually to take into account an inflation
 1739  adjustment and any changes in estimates or extension of the
 1740  useful life of a reserve item caused by deferred maintenance.
 1741         b. The members of a unit-owner-controlled association may
 1742  determine, by a majority vote of the total voting interests of
 1743  the association, to provide no reserves or less reserves than
 1744  required by this subsection. For a budget adopted on or after
 1745  December 31, 2024, the members of a unit-owner-controlled
 1746  association that must obtain a structural integrity reserve
 1747  study may not determine to provide no reserves or less reserves
 1748  than required by this subsection for items listed in paragraph
 1749  (g), except that members of an association operating a
 1750  multicondominium may determine to provide no reserves or less
 1751  reserves than required by this subsection if an alternative
 1752  funding method is used by the association has been approved by
 1753  the division.
 1754         c. For a budget adopted on or before December 31, 2028, a
 1755  unit-owner-controlled association that must have a structural
 1756  reserve study may secure a line of credit in lieu of maintaining
 1757  reserves for all or a portion of the reserves required under
 1758  this paragraph upon a majority vote of the total voting
 1759  interests of the association. The line of credit must be
 1760  sufficient to meet the association’s deferred maintenance
 1761  obligation not funded in the association’s reserve account for
 1762  each budget. Funding from the line of credit must be immediately
 1763  available for access by the board to fund required repair,
 1764  maintenance, or replacement expenses without further approval by
 1765  the members of the association. A line of credit secured under
 1766  this sub-subparagraph must be included in the financial report
 1767  required under s. 718.111(13).
 1768         d. If the local building official, as defined in s.
 1769  468.603, determines that the entire condominium building is
 1770  uninhabitable due to a natural emergency, as defined in s.
 1771  252.34, the board, upon the approval of a majority of its
 1772  members, may pause the contribution to its reserves or reduce
 1773  reserve funding until the local building official determines
 1774  that the condominium building is habitable. Any reserve account
 1775  funds held by the association may be expended, pursuant to the
 1776  board’s determination, to make the condominium building and its
 1777  structures habitable. Upon the determination by the local
 1778  building official that the condominium building is habitable,
 1779  the association must immediately resume contributing funds to
 1780  its reserves.
 1781         eFor a budget adopted on or before December 31, 2028, if
 1782  the association has completed a milestone inspection pursuant to
 1783  s. 553.899 within the previous 2 calendar years, the board, upon
 1784  the approval of a majority of the total voting interests of the
 1785  association, may temporarily pause, for a period of no more than
 1786  2 consecutive annual budgets, reserve fund contributions or
 1787  reduce the amount of reserve funding for the purpose of funding
 1788  repairs recommended by the milestone inspection. This sub
 1789  subparagraph does not apply to a developer-controlled
 1790  association and an association in which the non-developer unit
 1791  owners have been in control for less than 1 year. An association
 1792  that has paused reserve contributions under this subparagraph
 1793  must have a structural integrity reserve study performed before
 1794  the continuation of reserve contributions in order to determine
 1795  the association’s reserve funding needs and to recommend a
 1796  reserve funding plan.
 1797         f.b. Before turnover of control of an association by a
 1798  developer to unit owners other than a developer under s.
 1799  718.301, the developer-controlled association may not vote to
 1800  waive the reserves or reduce funding of the reserves. If a
 1801  meeting of the unit owners has been called to determine whether
 1802  to waive or reduce the funding of reserves and no such result is
 1803  achieved or a quorum is not attained, the reserves included in
 1804  the budget shall go into effect. After the turnover, the
 1805  developer may vote its voting interest to waive or reduce the
 1806  funding of reserves.
 1807         3. Reserve funds and any interest accruing thereon shall
 1808  remain in the reserve account or accounts, and may be used only
 1809  for authorized reserve expenditures unless their use for other
 1810  purposes is approved in advance by a majority vote of all the
 1811  total voting interests of the association. Before turnover of
 1812  control of an association by a developer to unit owners other
 1813  than the developer pursuant to s. 718.301, the developer
 1814  controlled association may not vote to use reserves for purposes
 1815  other than those for which they were intended. For a budget
 1816  adopted on or after December 31, 2024, members of a unit-owner
 1817  controlled association that must obtain a structural integrity
 1818  reserve study may not vote to use reserve funds, or any interest
 1819  accruing thereon, for any other purpose other than the
 1820  replacement or deferred maintenance costs of the components
 1821  listed in paragraph (g). A vote of the members is not required
 1822  for the board to change the accounting method for reserves to a
 1823  pooling accounting method or a straight-line accounting method.
 1824         4. The only voting interests that are eligible to vote on
 1825  questions that involve waiving or reducing the funding of
 1826  reserves, or using existing reserve funds for purposes other
 1827  than purposes for which the reserves were intended, are the
 1828  voting interests of the units subject to assessment to fund the
 1829  reserves in question. Proxy questions relating to waiving or
 1830  reducing the funding of reserves or using existing reserve funds
 1831  for purposes other than purposes for which the reserves were
 1832  intended must contain the following statement in capitalized,
 1833  bold letters in a font size larger than any other used on the
 1834  face of the proxy ballot: WAIVING OF RESERVES, IN WHOLE OR IN
 1835  PART, OR ALLOWING ALTERNATIVE USES OF EXISTING RESERVES MAY
 1836  RESULT IN UNIT OWNER LIABILITY FOR PAYMENT OF UNANTICIPATED
 1837  SPECIAL ASSESSMENTS REGARDING THOSE ITEMS.
 1838         (g) Structural integrity reserve study.—
 1839         1. A residential condominium association must have a
 1840  structural integrity reserve study completed at least every 10
 1841  years after the condominium’s creation for each building on the
 1842  condominium property that is three stories or higher in height,
 1843  as determined by the Florida Building Code, which includes, at a
 1844  minimum, a study of the following items as related to the
 1845  structural integrity and safety of the building:
 1846         a. Roof.
 1847         b. Structure, including load-bearing walls and other
 1848  primary structural members and primary structural systems as
 1849  those terms are defined in s. 627.706.
 1850         c. Fireproofing and fire protection systems.
 1851         d. Plumbing.
 1852         e. Electrical systems.
 1853         f. Waterproofing and exterior painting.
 1854         g. Windows and exterior doors.
 1855         h. Any other item that has a deferred maintenance expense
 1856  or replacement cost that exceeds $25,000 $10,000 and the failure
 1857  to replace or maintain such item negatively affects the items
 1858  listed in sub-subparagraphs a.-g., as determined by the visual
 1859  inspection portion of the structural integrity reserve study.
 1860         2. A structural integrity reserve study is based on a
 1861  visual inspection of the condominium property.
 1862         3.a. A structural integrity reserve study may be performed
 1863  by any person qualified to perform such study. However, the
 1864  visual inspection portion of the structural integrity reserve
 1865  study must be performed or verified by an engineer licensed
 1866  under chapter 471, an architect licensed under chapter 481, or a
 1867  person certified as a reserve specialist or professional reserve
 1868  analyst by the Community Associations Institute or the
 1869  Association of Professional Reserve Analysts.
 1870         b. Any design professional as defined in s. 558.002 or any
 1871  contractor licensed under chapter 489 who bids to perform a
 1872  structural integrity reserve study must disclose in writing to
 1873  the association his or her intent to bid on any services related
 1874  to any maintenance, repair, or replacement that may be
 1875  recommended by the structural integrity reserve study. Any
 1876  design professional as defined in s. 558.002 or contractor
 1877  licensed under chapter 489 who submits a bid to the association
 1878  for performing any services recommended by the structural
 1879  integrity reserve study may not have an interest, directly or
 1880  indirectly, in the firm or entity providing the association’s
 1881  structural integrity reserve study or be a relative of any
 1882  person having a direct or indirect interest in such firm, unless
 1883  such relationship is disclosed to the association in writing. As
 1884  used in this section, the term “relative” means a relative
 1885  within the third degree of consanguinity by blood or marriage. A
 1886  contract for services is voidable and terminates upon the
 1887  association filing a written notice terminating the contract if
 1888  the design professional or licensed contractor failed to provide
 1889  the written disclosure of the interests or relationships
 1890  required under this paragraph. A design professional or licensed
 1891  contractor may be subject to discipline under the applicable
 1892  practice act for his or her profession for failure to provide
 1893  the written disclosure of the interests or relationships
 1894  required under this paragraph.
 1895         4.a.3. At a minimum, a structural integrity reserve study
 1896  must identify each item of the condominium property being
 1897  visually inspected, state the estimated remaining useful life
 1898  and the estimated replacement cost or deferred maintenance
 1899  expense of each item of the condominium property being visually
 1900  inspected, and provide a reserve funding plan or schedule with a
 1901  recommended annual reserve amount that achieves the estimated
 1902  replacement cost or deferred maintenance expense of each item of
 1903  condominium property being visually inspected by the end of the
 1904  estimated remaining useful life of the item. At a minimum, the
 1905  structural integrity reserve study must include a recommendation
 1906  for a reserve funding schedule based on a baseline funding plan
 1907  that provides a reserve funding goal in which the reserve
 1908  funding for each budget year is sufficient to maintain the
 1909  reserve cash balance above zero. The study may recommend other
 1910  types of reserve funding schedules, provided that each
 1911  recommended schedule is sufficient to meet the association’s
 1912  maintenance obligation.
 1913         b. The structural integrity reserve study may recommend
 1914  that reserves do not need to be maintained for any item for
 1915  which an estimate of useful life and an estimate of replacement
 1916  cost cannot be determined, or the study may recommend a deferred
 1917  maintenance expense amount for such item. The structural
 1918  integrity reserve study may recommend that reserves for
 1919  replacement costs do not need to be maintained for any item with
 1920  an estimated remaining useful life of greater than 25 years, but
 1921  the study may recommend a deferred maintenance expense amount
 1922  for such item. If the structural integrity reserve study
 1923  recommends reserves for any item for which reserves are not
 1924  required under this paragraph, the amount of the recommended
 1925  reserves for such item must be separately identified in the
 1926  structural integrity reserve study as an item for which reserves
 1927  are not required under this paragraph.
 1928         5.4. This paragraph does not apply to buildings less than
 1929  three stories in height; single-family, two-family, or three
 1930  family dwellings with three or fewer habitable stories above
 1931  ground; any portion or component of a building that has not been
 1932  submitted to the condominium form of ownership; or any portion
 1933  or component of a building that is maintained by a party other
 1934  than the association.
 1935         6.5. Before a developer turns over control of an
 1936  association to unit owners other than the developer, the
 1937  developer must have a turnover inspection report in compliance
 1938  with s. 718.301(4)(p) and (q) for each building on the
 1939  condominium property that is three stories or higher in height.
 1940         7.6. Associations existing on or before July 1, 2022, which
 1941  are controlled by unit owners other than the developer, must
 1942  have a structural integrity reserve study completed by December
 1943  31, 2025 2024, for each building on the condominium property
 1944  that is three stories or higher in height. An association that
 1945  is required to complete a milestone inspection in accordance
 1946  with s. 553.899 on or before December 31, 2026, may complete the
 1947  structural integrity reserve study simultaneously with the
 1948  milestone inspection. In no event may the structural integrity
 1949  reserve study be completed after December 31, 2026.
 1950         8.7. If the milestone inspection required by s. 553.899, or
 1951  an inspection completed for a similar local requirement, was
 1952  performed within the past 5 years and meets the requirements of
 1953  this paragraph, such inspection may be used in place of the
 1954  visual inspection portion of the structural integrity reserve
 1955  study.
 1956         9. If the association completes a milestone inspection
 1957  required by s. 553.899, or an inspection completed for a similar
 1958  local requirement, the association may delay performance of a
 1959  required structural integrity reserve study for no more than the
 1960  2 consecutive budget years immediately following the milestone
 1961  inspection in order to allow the association to focus its
 1962  financial resources on completing the repair and maintenance
 1963  recommendations of the milestone inspection.
 1964         10.8. If the officers or directors of an association
 1965  willfully and knowingly fail to complete a structural integrity
 1966  reserve study pursuant to this paragraph, such failure is a
 1967  breach of an officer’s and director’s fiduciary relationship to
 1968  the unit owners under s. 718.111(1). An officer or director of
 1969  an association must sign an affidavit acknowledging receipt of
 1970  the completed structural integrity reserve study.
 1971         11.9. Within 45 days after receiving the structural
 1972  integrity reserve study, the association must distribute a copy
 1973  of the study to each unit owner or deliver to each unit owner a
 1974  notice that the completed study is available for inspection and
 1975  copying upon a written request. Distribution of a copy of the
 1976  study or notice must be made by United States mail or personal
 1977  delivery to the mailing address, property address, or any other
 1978  address of the owner provided to fulfill the association’s
 1979  notice requirements under this chapter, or by electronic
 1980  transmission to the e-mail address or facsimile number provided
 1981  to fulfill the association’s notice requirements to unit owners
 1982  who previously consented to receive notice by electronic
 1983  transmission.
 1984         12.10. Within 45 days after receiving the structural
 1985  integrity reserve study, the association must provide the
 1986  division with a statement indicating that the study was
 1987  completed and that the association provided or made available
 1988  such study to each unit owner in accordance with this section.
 1989  The statement must be provided to the division in the manner
 1990  established by the division using a form posted on the
 1991  division’s website.
 1992         13. The division shall adopt by rule the form for the
 1993  structural integrity reserve study in coordination with the
 1994  Florida Building Commission.
 1995         Section 7. Subsections (1) and (3) of section 718.501,
 1996  Florida Statutes, are amended, and paragraph (d) is added to
 1997  subsection (2) of that section, to read:
 1998         718.501 Authority, responsibility, and duties of Division
 1999  of Florida Condominiums, Timeshares, and Mobile Homes.—
 2000         (1) The division may enforce and ensure compliance with
 2001  this chapter and rules relating to the development,
 2002  construction, sale, lease, ownership, operation, and management
 2003  of residential condominium units and complaints related to the
 2004  procedural completion of milestone inspections under s. 553.899.
 2005  In performing its duties, the division has complete jurisdiction
 2006  to investigate complaints and enforce compliance with respect to
 2007  associations that are still under developer control or the
 2008  control of a bulk assignee or bulk buyer pursuant to part VII of
 2009  this chapter and complaints against developers, bulk assignees,
 2010  or bulk buyers involving improper turnover or failure to
 2011  turnover, pursuant to s. 718.301. However, after turnover has
 2012  occurred, the division has jurisdiction to review records and
 2013  investigate complaints related only to:
 2014         (a)1. Procedural aspects and records relating to financial
 2015  issues, including annual financial reporting under s.
 2016  718.111(13); assessments for common expenses, fines, and
 2017  commingling of reserve and operating funds under s. 718.111(14);
 2018  use of debit cards for unintended purposes under s. 718.111(15);
 2019  the annual operating budget and the allocation of reserve funds
 2020  under s. 718.112(2)(f); financial records under s.
 2021  718.111(12)(a)11.; and any other record necessary to determine
 2022  the revenues and expenses of the association.
 2023         2. Elections, including election and voting requirements
 2024  under s. 718.112(2)(b) and (d), recall of board members under s.
 2025  718.112(2)(l), electronic voting under s. 718.128, and elections
 2026  that occur during an emergency under s. 718.1265(1)(a).
 2027         3. The maintenance of and unit owner access to association
 2028  records under s. 718.111(12).
 2029         4. The procedural aspects of meetings, including unit owner
 2030  meetings, quorums, voting requirements, proxies, board of
 2031  administration meetings, and budget meetings under s.
 2032  718.112(2).
 2033         5. The disclosure of conflicts of interest under ss.
 2034  718.111(1)(a) and 718.3027, including limitations contained in
 2035  s. 718.111(3)(f).
 2036         6. The removal of a board director or officer under ss.
 2037  718.111(1)(a) and (15) and 718.112(2)(p) and (q).
 2038         7. The procedural completion of structural integrity
 2039  reserve studies under s. 718.112(2)(g) and the milestone
 2040  inspections under s. 553.899.
 2041         8.Completion of repairs required by a milestone inspection
 2042  under s. 553.899.
 2043         9.8. Any written inquiries by unit owners to the
 2044  association relating to such matters, including written
 2045  inquiries under s. 718.112(2)(a)2.
 2046         10.The requirement for associations to maintain an
 2047  insurance policy or fidelity bonding for all persons who control
 2048  or disperse funds of the association under s. 718.111(11)(h).
 2049         11.Board member education requirements under s.
 2050  718.112(2)(d)5.b.
 2051         12.Reporting requirements for structural integrity reserve
 2052  studies in paragraph (3) and under s 718.112(2)(g)12.
 2053         (b)1. The division may make necessary public or private
 2054  investigations within or outside this state to determine whether
 2055  any person has violated this chapter or any rule or order
 2056  hereunder, to aid in the enforcement of this chapter, or to aid
 2057  in the adoption of rules or forms.
 2058         2. The division may submit any official written report,
 2059  worksheet, or other related paper, or a duly certified copy
 2060  thereof, compiled, prepared, drafted, or otherwise made by and
 2061  duly authenticated by a financial examiner or analyst to be
 2062  admitted as competent evidence in any hearing in which the
 2063  financial examiner or analyst is available for cross-examination
 2064  and attests under oath that such documents were prepared as a
 2065  result of an examination or inspection conducted pursuant to
 2066  this chapter.
 2067         (c) The division may require or permit any person to file a
 2068  statement in writing, under oath or otherwise, as the division
 2069  determines, as to the facts and circumstances concerning a
 2070  matter to be investigated.
 2071         (d) For the purpose of any investigation under this
 2072  chapter, the division director or any officer or employee
 2073  designated by the division director may administer oaths or
 2074  affirmations, subpoena witnesses and compel their attendance,
 2075  take evidence, and require the production of any matter which is
 2076  relevant to the investigation, including the existence,
 2077  description, nature, custody, condition, and location of any
 2078  books, documents, or other tangible things and the identity and
 2079  location of persons having knowledge of relevant facts or any
 2080  other matter reasonably calculated to lead to the discovery of
 2081  material evidence. Upon the failure by a person to obey a
 2082  subpoena or to answer questions propounded by the investigating
 2083  officer and upon reasonable notice to all affected persons, the
 2084  division may apply to the circuit court for an order compelling
 2085  compliance.
 2086         (e) Notwithstanding any remedies available to unit owners
 2087  and associations, if the division has reasonable cause to
 2088  believe that a violation of any provision of this chapter or
 2089  related rule has occurred, the division may institute
 2090  enforcement proceedings in its own name against any developer,
 2091  bulk assignee, bulk buyer, association, officer, or member of
 2092  the board of administration, or its assignees or agents, as
 2093  follows:
 2094         1. The division may permit a person whose conduct or
 2095  actions may be under investigation to waive formal proceedings
 2096  and enter into a consent proceeding whereby orders, rules, or
 2097  letters of censure or warning, whether formal or informal, may
 2098  be entered against the person.
 2099         2. The division may issue an order requiring the developer,
 2100  bulk assignee, bulk buyer, association, developer-designated
 2101  officer, or developer-designated member of the board of
 2102  administration, developer-designated assignees or agents, bulk
 2103  assignee-designated assignees or agents, bulk buyer-designated
 2104  assignees or agents, community association manager, or community
 2105  association management firm to cease and desist from the
 2106  unlawful practice and take such affirmative action as in the
 2107  judgment of the division carry out the purposes of this chapter.
 2108  If the division finds that a developer, bulk assignee, bulk
 2109  buyer, association, officer, or member of the board of
 2110  administration, or its assignees or agents, is violating or is
 2111  about to violate any provision of this chapter, any rule adopted
 2112  or order issued by the division, or any written agreement
 2113  entered into with the division, and presents an immediate danger
 2114  to the public requiring an immediate final order, it may issue
 2115  an emergency cease and desist order reciting with particularity
 2116  the facts underlying such findings. The emergency cease and
 2117  desist order is effective for 90 days. If the division begins
 2118  nonemergency cease and desist proceedings, the emergency cease
 2119  and desist order remains effective until the conclusion of the
 2120  proceedings under ss. 120.569 and 120.57.
 2121         3. If a developer, bulk assignee, or bulk buyer fails to
 2122  pay any restitution determined by the division to be owed, plus
 2123  any accrued interest at the highest rate permitted by law,
 2124  within 30 days after expiration of any appellate time period of
 2125  a final order requiring payment of restitution or the conclusion
 2126  of any appeal thereof, whichever is later, the division must
 2127  bring an action in circuit or county court on behalf of any
 2128  association, class of unit owners, lessees, or purchasers for
 2129  restitution, declaratory relief, injunctive relief, or any other
 2130  available remedy. The division may also temporarily revoke its
 2131  acceptance of the filing for the developer to which the
 2132  restitution relates until payment of restitution is made.
 2133         4. The division may petition the court for appointment of a
 2134  receiver or conservator. If appointed, the receiver or
 2135  conservator may take action to implement the court order to
 2136  ensure the performance of the order and to remedy any breach
 2137  thereof. In addition to all other means provided by law for the
 2138  enforcement of an injunction or temporary restraining order, the
 2139  circuit court may impound or sequester the property of a party
 2140  defendant, including books, papers, documents, and related
 2141  records, and allow the examination and use of the property by
 2142  the division and a court-appointed receiver or conservator.
 2143         5. The division may apply to the circuit court for an order
 2144  of restitution whereby the defendant in an action brought under
 2145  subparagraph 4. is ordered to make restitution of those sums
 2146  shown by the division to have been obtained by the defendant in
 2147  violation of this chapter. At the option of the court, such
 2148  restitution is payable to the conservator or receiver appointed
 2149  under subparagraph 4. or directly to the persons whose funds or
 2150  assets were obtained in violation of this chapter.
 2151         6. The division may impose a civil penalty against a
 2152  developer, bulk assignee, or bulk buyer, or association, or its
 2153  assignee or agent, for any violation of this chapter or related
 2154  rule. The division may impose a civil penalty individually
 2155  against an officer or board member who willfully and knowingly
 2156  violates this chapter, an adopted rule, or a final order of the
 2157  division; may order the removal of such individual as an officer
 2158  or from the board of administration or as an officer of the
 2159  association; and may prohibit such individual from serving as an
 2160  officer or on the board of a community association for a period
 2161  of time. The term “willfully and knowingly” means that the
 2162  division informed the officer or board member that his or her
 2163  action or intended action violates this chapter, a rule adopted
 2164  under this chapter, or a final order of the division and that
 2165  the officer or board member refused to comply with the
 2166  requirements of this chapter, a rule adopted under this chapter,
 2167  or a final order of the division. The division, before
 2168  initiating formal agency action under chapter 120, must afford
 2169  the officer or board member an opportunity to voluntarily
 2170  comply, and an officer or board member who complies within 10
 2171  days is not subject to a civil penalty. A penalty may be imposed
 2172  on the basis of each day of continuing violation, but the
 2173  penalty for any offense may not exceed $5,000. The division
 2174  shall adopt, by rule, penalty guidelines applicable to possible
 2175  violations or to categories of violations of this chapter or
 2176  rules adopted by the division. The guidelines must specify a
 2177  meaningful range of civil penalties for each such violation of
 2178  the statute and rules and must be based upon the harm caused by
 2179  the violation, upon the repetition of the violation, and upon
 2180  such other factors deemed relevant by the division. For example,
 2181  the division may consider whether the violations were committed
 2182  by a developer, bulk assignee, or bulk buyer, or owner
 2183  controlled association, the size of the association, and other
 2184  factors. The guidelines must designate the possible mitigating
 2185  or aggravating circumstances that justify a departure from the
 2186  range of penalties provided by the rules. It is the legislative
 2187  intent that minor violations be distinguished from those which
 2188  endanger the health, safety, or welfare of the condominium
 2189  residents or other persons and that such guidelines provide
 2190  reasonable and meaningful notice to the public of likely
 2191  penalties that may be imposed for proscribed conduct. This
 2192  subsection does not limit the ability of the division to
 2193  informally dispose of administrative actions or complaints by
 2194  stipulation, agreed settlement, or consent order. All amounts
 2195  collected shall be deposited with the Chief Financial Officer to
 2196  the credit of the Division of Florida Condominiums, Timeshares,
 2197  and Mobile Homes Trust Fund. If a developer, bulk assignee, or
 2198  bulk buyer fails to pay the civil penalty and the amount deemed
 2199  to be owed to the association, the division shall issue an order
 2200  directing that such developer, bulk assignee, or bulk buyer
 2201  cease and desist from further operation until such time as the
 2202  civil penalty is paid or may pursue enforcement of the penalty
 2203  in a court of competent jurisdiction. If an association fails to
 2204  pay the civil penalty, the division shall pursue enforcement in
 2205  a court of competent jurisdiction, and the order imposing the
 2206  civil penalty or the cease and desist order is not effective
 2207  until 20 days after the date of such order. Any action commenced
 2208  by the division shall be brought in the county in which the
 2209  division has its executive offices or in the county in which the
 2210  violation occurred.
 2211         7. If a unit owner presents the division with proof that
 2212  the unit owner has requested access to official records in
 2213  writing by certified mail, and that after 10 days the unit owner
 2214  again made the same request for access to official records in
 2215  writing by certified mail, and that more than 10 days has
 2216  elapsed since the second request and the association has still
 2217  failed or refused to provide access to official records as
 2218  required by this chapter, the division shall issue a subpoena
 2219  requiring production of the requested records at the location in
 2220  which the records are kept pursuant to s. 718.112. Upon receipt
 2221  of the records, the division must provide to the unit owner who
 2222  was denied access to such records the produced official records
 2223  without charge.
 2224         8. In addition to subparagraph 6., the division may seek
 2225  the imposition of a civil penalty through the circuit court for
 2226  any violation for which the division may issue a notice to show
 2227  cause under paragraph (t). The civil penalty shall be at least
 2228  $500 but no more than $5,000 for each violation. The court may
 2229  also award to the prevailing party court costs and reasonable
 2230  attorney fees and, if the division prevails, may also award
 2231  reasonable costs of investigation.
 2232         9. The division may issue citations and promulgate rules to
 2233  provide for citation bases and citation procedures in accordance
 2234  with this paragraph.
 2235         (f) The division may prepare and disseminate a prospectus
 2236  and other information to assist prospective owners, purchasers,
 2237  lessees, and developers of residential condominiums in assessing
 2238  the rights, privileges, and duties pertaining thereto.
 2239         (g) The division may adopt rules to administer and enforce
 2240  this chapter.
 2241         (h) The division shall establish procedures for providing
 2242  notice to an association and the developer, bulk assignee, or
 2243  bulk buyer during the period in which the developer, bulk
 2244  assignee, or bulk buyer controls the association if the division
 2245  is considering the issuance of a declaratory statement with
 2246  respect to the declaration of condominium or any related
 2247  document governing such condominium community.
 2248         (i) The division shall furnish each association that pays
 2249  the fees required by paragraph (2)(a) a copy of this chapter, as
 2250  amended, and the rules adopted thereto on an annual basis.
 2251         (j) The division shall annually provide each association
 2252  with a summary of declaratory statements and formal legal
 2253  opinions relating to the operations of condominiums which were
 2254  rendered by the division during the previous year.
 2255         (k) The division shall provide training and educational
 2256  programs for condominium association board members and unit
 2257  owners. The training may, in the division’s discretion, include
 2258  web-based electronic media and live training and seminars in
 2259  various locations throughout the state. The division may review
 2260  and approve education and training programs for board members
 2261  and unit owners offered by providers and shall maintain a
 2262  current list of approved programs and providers and make such
 2263  list available to board members and unit owners in a reasonable
 2264  and cost-effective manner. The division shall provide the
 2265  division-approved provider with the template certificate for
 2266  issuance directly to the association’s board of directors who
 2267  have satisfactorily completed the requirements under s.
 2268  718.112(2)(d). The division shall adopt rules to implement this
 2269  section.
 2270         (l) The division shall maintain a toll-free telephone
 2271  number accessible to condominium unit owners.
 2272         (m) The division shall develop a program to certify both
 2273  volunteer and paid mediators to provide mediation of condominium
 2274  disputes. The division shall provide, upon request, a list of
 2275  such mediators to any association, unit owner, or other
 2276  participant in alternative dispute resolution proceedings under
 2277  s. 718.1255 requesting a copy of the list. The division shall
 2278  include on the list of volunteer mediators only the names of
 2279  persons who have received at least 20 hours of training in
 2280  mediation techniques or who have mediated at least 20 disputes.
 2281  In order to become initially certified by the division, paid
 2282  mediators must be certified by the Supreme Court to mediate
 2283  court cases in county or circuit courts. However, the division
 2284  may adopt, by rule, additional factors for the certification of
 2285  paid mediators, which must be related to experience, education,
 2286  or background. Any person initially certified as a paid mediator
 2287  by the division must, in order to continue to be certified,
 2288  comply with the factors or requirements adopted by rule.
 2289         (n) If a complaint is made, the division must conduct its
 2290  inquiry with due regard for the interests of the affected
 2291  parties. Within 30 days after receipt of a complaint, the
 2292  division shall acknowledge the complaint in writing and notify
 2293  the complainant whether the complaint is within the jurisdiction
 2294  of the division and whether additional information is needed by
 2295  the division from the complainant. The division shall conduct
 2296  its investigation and, within 90 days after receipt of the
 2297  original complaint or of timely requested additional
 2298  information, take action upon the complaint. However, the
 2299  failure to complete the investigation within 90 days does not
 2300  prevent the division from continuing the investigation,
 2301  accepting or considering evidence obtained or received after 90
 2302  days, or taking administrative action if reasonable cause exists
 2303  to believe that a violation of this chapter or a rule has
 2304  occurred. If an investigation is not completed within the time
 2305  limits established in this paragraph, the division shall, on a
 2306  monthly basis, notify the complainant in writing of the status
 2307  of the investigation. When reporting its action to the
 2308  complainant, the division shall inform the complainant of any
 2309  right to a hearing under ss. 120.569 and 120.57. The division
 2310  may adopt rules regarding the submission of a complaint against
 2311  an association.
 2312         (o) Condominium association directors, officers, and
 2313  employees; condominium developers; bulk assignees, bulk buyers,
 2314  and community association managers; and community association
 2315  management firms have an ongoing duty to reasonably cooperate
 2316  with the division in any investigation under this section. The
 2317  division shall refer to local law enforcement authorities any
 2318  person whom the division believes has altered, destroyed,
 2319  concealed, or removed any record, document, or thing required to
 2320  be kept or maintained by this chapter with the purpose to impair
 2321  its verity or availability in the department’s investigation.
 2322  The division shall refer to local law enforcement authorities
 2323  any person whom the division believes has engaged in fraud,
 2324  theft, embezzlement, or other criminal activity or when the
 2325  division has cause to believe that fraud, theft, embezzlement,
 2326  or other criminal activity has occurred.
 2327         (p) The division director or any officer or employee of the
 2328  division and the condominium ombudsman or any employee of the
 2329  Office of the Condominium Ombudsman may attend and observe any
 2330  meeting of the board of administration or any unit owner
 2331  meeting, including any meeting of a subcommittee or special
 2332  committee, which is open to members of the association for the
 2333  purpose of performing the duties of the division or the Office
 2334  of the Condominium Ombudsman under this chapter.
 2335         (q) The division may:
 2336         1. Contract with agencies in this state or other
 2337  jurisdictions to perform investigative functions; or
 2338         2. Accept grants-in-aid from any source.
 2339         (r) The division shall cooperate with similar agencies in
 2340  other jurisdictions to establish uniform filing procedures and
 2341  forms, public offering statements, advertising standards, and
 2342  rules and common administrative practices.
 2343         (s) The division shall consider notice to a developer, bulk
 2344  assignee, or bulk buyer to be complete when it is delivered to
 2345  the address of the developer, bulk assignee, or bulk buyer
 2346  currently on file with the division.
 2347         (t) In addition to its enforcement authority, the division
 2348  may issue a notice to show cause, which must provide for a
 2349  hearing, upon written request, in accordance with chapter 120.
 2350         (u) If the division receives a complaint regarding access
 2351  to official records on the association’s website or through an
 2352  application that can be downloaded on a mobile device under s.
 2353  718.111(12)(g), the division may request access to the
 2354  association’s website or application and investigate. The
 2355  division may adopt rules to carry out this paragraph.
 2356         (v) The division shall submit to the Governor, the
 2357  President of the Senate, the Speaker of the House of
 2358  Representatives, and the chairs of the legislative
 2359  appropriations committees an annual report that includes, but
 2360  need not be limited to, the number of training programs provided
 2361  for condominium association board members and unit owners, the
 2362  number of complaints received by type, the number and percent of
 2363  complaints acknowledged in writing within 30 days and the number
 2364  and percent of investigations acted upon within 90 days in
 2365  accordance with paragraph (n), and the number of investigations
 2366  exceeding the 90-day requirement. The annual report must also
 2367  include an evaluation of the division’s core business processes
 2368  and make recommendations for improvements, including statutory
 2369  changes. After December 31, 2024, the division must include a
 2370  list of the associations that have completed the structural
 2371  integrity reserve study required under s. 718.112(2)(g). The
 2372  report shall be submitted by September 30 following the end of
 2373  the fiscal year.
 2374         (2)
 2375         (d)Each condominium association must create and maintain
 2376  an online account with the division. Board members shall
 2377  maintain accurate contact information on file with the division.
 2378  The division shall adopt rules to implement this paragraph.
 2379         (3) On or before October 1, 2025, all associations must
 2380  provide information as specified by the division in an
 2381  electronic format determined by the division. The information in
 2382  paragraphs (a), (b), and (c) must be updated within 15 days
 2383  after any change. The information that must be provided to the
 2384  division includes, but is not limited to:
 2385         (a)Contact information for the association that includes:
 2386         1.Name of the association.
 2387         2.Mailing address and county of the association.
 2388         3.E-mail address and telephone number for the association.
 2389         4.Name, board title, and e-mail address for each member of
 2390  the association’s board.
 2391         5.Name and contact information of the association’s
 2392  community association manager or community association
 2393  management firm, if applicable.
 2394         6.Name and contact information of every individual or
 2395  community association management company responsible for
 2396  remitting any payment to the division.
 2397         7.The hyperlink or website address to the association’s
 2398  website, if applicable.
 2399         (b)Total number of buildings and for each building in the
 2400  association:
 2401         1.Physical address of the association.
 2402         2.Total number of stories, including both habitable and
 2403  uninhabitable stories.
 2404         3.Total number of units.
 2405         4.Age of each building based on the certificate of
 2406  occupancy.
 2407         5.Any construction commenced within the common elements
 2408  within the calendar year.
 2409         (c)The association’s assessments, including the:
 2410         1.Amount of assessment or special assessment by unit type,
 2411  including reserves.
 2412         2.Purpose of the assessment or special assessment.
 2413         3.Name of the financial institution or institutions with
 2414  which the association maintains accounts.
 2415         (d)A copy of any structural integrity reserve study and
 2416  any associated materials requested by the department within 5
 2417  business days after such request, in a manner prescribed by the
 2418  department.
 2419         (a) On or before January 1, 2023, condominium associations
 2420  existing on or before July 1, 2022, must provide the following
 2421  information to the division in writing, by e-mail, United States
 2422  Postal Service, commercial delivery service, or hand delivery,
 2423  at a physical address or e-mail address provided by the division
 2424  and on a form posted on the division’s website:
 2425         1. The number of buildings on the condominium property that
 2426  are three stories or higher in height.
 2427         2. The total number of units in all such buildings.
 2428         3. The addresses of all such buildings.
 2429         4. The counties in which all such buildings are located.
 2430         (b) The division must compile a list of the number of
 2431  buildings on condominium property that are three stories or
 2432  higher in height, which is searchable by county, and must post
 2433  the list on the division’s website. This list must include all
 2434  of the following information:
 2435         1. The name of each association with buildings on the
 2436  condominium property that are three stories or higher in height.
 2437         2. The number of such buildings on each association’s
 2438  property.
 2439         3. The addresses of all such buildings.
 2440         4. The counties in which all such buildings are located.
 2441         (c) An association must provide an update in writing to the
 2442  division if there are any changes to the information in the list
 2443  under paragraph (b) within 6 months after the change.
 2444         Section 8. Paragraph (d) of subsection (1) and paragraphs
 2445  (d) and (e) of subsection (2) of section 718.503, Florida
 2446  Statutes, are amended, to read:
 2447         718.503 Developer disclosure prior to sale; nondeveloper
 2448  unit owner disclosure prior to sale; voidability.—
 2449         (1) DEVELOPER DISCLOSURE.—
 2450         (d) Milestone inspection, turnover inspection report, or
 2451  structural integrity reserve study.—If the association is
 2452  required to have completed a milestone inspection as described
 2453  in s. 553.899, a turnover inspection report for a turnover
 2454  inspection performed on or after July 1, 2023, or a structural
 2455  integrity reserve study, and the association has not completed
 2456  the milestone inspection, the turnover inspection report, or the
 2457  structural integrity reserve study, each contract entered into
 2458  after December 31, 2024, for the sale of a residential unit
 2459  shall contain in conspicuous type a statement indicating that
 2460  the association is required to have a milestone inspection, a
 2461  turnover inspection report, or a structural integrity reserve
 2462  study and has not completed such inspection, report, or study,
 2463  as appropriate. If the association is not required to have a
 2464  milestone inspection as described in s. 553.899 or a structural
 2465  integrity reserve study, each contract entered into after
 2466  December 31, 2024, for the sale of a residential unit shall
 2467  contain in conspicuous type a statement indicating that the
 2468  association is not required to have a milestone inspection or a
 2469  structural integrity reserve study, as appropriate. If the
 2470  association has completed a milestone inspection as described in
 2471  s. 553.899, a turnover inspection report for a turnover
 2472  inspection performed on or after July 1, 2023, or a structural
 2473  integrity reserve study, each contract entered into after
 2474  December 31, 2024, for the sale of a residential unit shall
 2475  contain in conspicuous type:
 2476         1. A clause which states: THE BUYER HEREBY ACKNOWLEDGES
 2477  THAT BUYER HAS BEEN PROVIDED A CURRENT COPY OF THE INSPECTOR
 2478  PREPARED SUMMARY OF THE MILESTONE INSPECTION REPORT AS DESCRIBED
 2479  IN SECTION 553.899, FLORIDA STATUTES, IF APPLICABLE; A COPY OF
 2480  THE TURNOVER INSPECTION REPORT DESCRIBED IN SECTION
 2481  718.301(4)(p) AND (q), FLORIDA STATUTES, IF APPLICABLE; AND A
 2482  COPY OF THE ASSOCIATION’S MOST RECENT STRUCTURAL INTEGRITY
 2483  RESERVE STUDY DESCRIBED IN SECTIONS 718.103(26) AND
 2484  718.112(2)(g), FLORIDA STATUTES, IF APPLICABLE, MORE THAN 15
 2485  DAYS, EXCLUDING SATURDAYS, SUNDAYS, AND LEGAL HOLIDAYS, BEFORE
 2486  PRIOR TO EXECUTION OF THIS CONTRACT; and
 2487         2. A clause which states: THIS AGREEMENT IS VOIDABLE BY
 2488  BUYER BY DELIVERING WRITTEN NOTICE OF THE BUYER’S INTENTION TO
 2489  CANCEL WITHIN 15 DAYS, EXCLUDING SATURDAYS, SUNDAYS, AND LEGAL
 2490  HOLIDAYS, AFTER THE DATE OF EXECUTION OF THIS AGREEMENT BY THE
 2491  BUYER AND RECEIPT BY BUYER OF A CURRENT COPY OF THE INSPECTOR
 2492  PREPARED SUMMARY OF THE MILESTONE INSPECTION REPORT AS DESCRIBED
 2493  IN SECTION 553.899, FLORIDA STATUTES, IF APPLICABLE; A COPY OF
 2494  THE TURNOVER INSPECTION REPORT DESCRIBED IN SECTION
 2495  718.301(4)(p) AND (q), FLORIDA STATUTES, IF APPLICABLE; AND A
 2496  COPY OF THE ASSOCIATION’S MOST RECENT STRUCTURAL INTEGRITY
 2497  RESERVE STUDY DESCRIBED IN SECTIONS 718.103(26) AND
 2498  718.112(2)(g), FLORIDA STATUTES, IF APPLICABLE. ANY PURPORTED
 2499  WAIVER OF THESE VOIDABILITY RIGHTS SHALL BE OF NO EFFECT. BUYER
 2500  MAY EXTEND THE TIME FOR CLOSING FOR A PERIOD OF NOT MORE THAN 15
 2501  DAYS, EXCLUDING SATURDAYS, SUNDAYS, AND LEGAL HOLIDAYS, AFTER
 2502  THE BUYER RECEIVES A CURRENT COPY OF THE INSPECTOR-PREPARED
 2503  SUMMARY OF THE MILESTONE INSPECTION REPORT AS DESCRIBED IN
 2504  SECTION 553.899, FLORIDA STATUTES; A COPY OF THE TURNOVER
 2505  INSPECTION REPORT DESCRIBED IN SECTION 718.301(4)(p) AND (q),
 2506  FLORIDA STATUTES; OR A COPY OF THE ASSOCIATION’S MOST RECENT
 2507  STRUCTURAL INTEGRITY RESERVE STUDY DESCRIBED IN SECTIONS
 2508  718.103(26) AND 718.112(2)(g), FLORIDA STATUTES, IF REQUESTED IN
 2509  WRITING. BUYER’S RIGHT TO VOID THIS AGREEMENT SHALL TERMINATE AT
 2510  CLOSING.
 2511  
 2512  A contract that does not conform to the requirements of this
 2513  paragraph is voidable at the option of the purchaser before
 2514  prior to closing.
 2515         (2) NONDEVELOPER DISCLOSURE.—
 2516         (d) Each contract entered into after July 1, 1992, for the
 2517  resale of a residential unit must shall contain in conspicuous
 2518  type either:
 2519         1. A clause which states: THE BUYER HEREBY ACKNOWLEDGES
 2520  THAT BUYER HAS BEEN PROVIDED A CURRENT COPY OF THE DECLARATION
 2521  OF CONDOMINIUM, ARTICLES OF INCORPORATION OF THE ASSOCIATION,
 2522  BYLAWS AND RULES OF THE ASSOCIATION, A COPY OF THE MOST RECENT
 2523  ANNUAL FINANCIAL STATEMENT AND ANNUAL BUDGET, AND FREQUENTLY
 2524  ASKED QUESTIONS AND ANSWERS DOCUMENT MORE THAN 15 3 DAYS,
 2525  EXCLUDING SATURDAYS, SUNDAYS, AND LEGAL HOLIDAYS, BEFORE PRIOR
 2526  TO EXECUTION OF THIS CONTRACT; or
 2527         2. A clause which states: THIS AGREEMENT IS VOIDABLE BY
 2528  BUYER BY DELIVERING WRITTEN NOTICE OF THE BUYER’S INTENTION TO
 2529  CANCEL WITHIN 15 3 DAYS, EXCLUDING SATURDAYS, SUNDAYS, AND LEGAL
 2530  HOLIDAYS, AFTER THE DATE OF EXECUTION OF THIS AGREEMENT BY THE
 2531  BUYER AND RECEIPT BY BUYER OF A CURRENT COPY OF THE DECLARATION
 2532  OF CONDOMINIUM, ARTICLES OF INCORPORATION, BYLAWS AND RULES OF
 2533  THE ASSOCIATION, A COPY OF THE MOST RECENT ANNUAL FINANCIAL
 2534  STATEMENT AND ANNUAL BUDGET, AND FREQUENTLY ASKED QUESTIONS AND
 2535  ANSWERS DOCUMENT IF SO REQUESTED IN WRITING. ANY PURPORTED
 2536  WAIVER OF THESE VOIDABILITY RIGHTS SHALL BE OF NO EFFECT. BUYER
 2537  MAY EXTEND THE TIME FOR CLOSING FOR A PERIOD OF NOT MORE THAN 15
 2538  3 DAYS, EXCLUDING SATURDAYS, SUNDAYS, AND LEGAL HOLIDAYS, AFTER
 2539  THE BUYER RECEIVES THE DECLARATION, ARTICLES OF INCORPORATION,
 2540  BYLAWS AND RULES OF THE ASSOCIATION, AND A COPY OF THE MOST
 2541  RECENT YEAR-END FINANCIAL STATEMENT AND ANNUAL BUDGET
 2542  INFORMATION AND FREQUENTLY ASKED QUESTIONS AND ANSWERS DOCUMENT
 2543  IF REQUESTED IN WRITING. BUYER’S RIGHT TO VOID THIS AGREEMENT
 2544  SHALL TERMINATE AT CLOSING.
 2545  
 2546  A contract that does not conform to the requirements of this
 2547  paragraph is voidable at the option of the purchaser before
 2548  prior to closing.
 2549         (e) If the association is required to have completed a
 2550  milestone inspection as described in s. 553.899, a turnover
 2551  inspection report for a turnover inspection performed on or
 2552  after July 1, 2023, or a structural integrity reserve study, and
 2553  the association has not completed the milestone inspection, the
 2554  turnover inspection report, or the structural integrity reserve
 2555  study, each contract entered into after December 31, 2024, for
 2556  the sale of a residential unit shall contain in conspicuous type
 2557  a statement indicating that the association is required to have
 2558  a milestone inspection, a turnover inspection report, or a
 2559  structural integrity reserve study and has not completed such
 2560  inspection, report, or study, as appropriate. If the association
 2561  is not required to have a milestone inspection as described in
 2562  s. 553.899 or a structural integrity reserve study, each
 2563  contract entered into after December 31, 2024, for the sale of a
 2564  residential unit shall contain in conspicuous type a statement
 2565  indicating that the association is not required to have a
 2566  milestone inspection or a structural integrity reserve study, as
 2567  appropriate. If the association has completed a milestone
 2568  inspection as described in s. 553.899, a turnover inspection
 2569  report for a turnover inspection performed on or after July 1,
 2570  2023, or a structural integrity reserve study, each contract
 2571  entered into after December 31, 2024, for the resale of a
 2572  residential unit shall contain in conspicuous type:
 2573         1. A clause which states: THE BUYER HEREBY ACKNOWLEDGES
 2574  THAT BUYER HAS BEEN PROVIDED A CURRENT COPY OF THE INSPECTOR
 2575  PREPARED SUMMARY OF THE MILESTONE INSPECTION REPORT AS DESCRIBED
 2576  IN SECTION 553.899, FLORIDA STATUTES, IF APPLICABLE; A COPY OF
 2577  THE TURNOVER INSPECTION REPORT DESCRIBED IN SECTION
 2578  718.301(4)(p) AND (q), FLORIDA STATUTES, IF APPLICABLE; AND A
 2579  COPY OF THE ASSOCIATION’S MOST RECENT STRUCTURAL INTEGRITY
 2580  RESERVE STUDY DESCRIBED IN SECTIONS 718.103(26) AND
 2581  718.112(2)(g), FLORIDA STATUTES, IF APPLICABLE, MORE THAN 15 3
 2582  DAYS, EXCLUDING SATURDAYS, SUNDAYS, AND LEGAL HOLIDAYS, BEFORE
 2583  PRIOR TO EXECUTION OF THIS CONTRACT; and
 2584         2. A clause which states: THIS AGREEMENT IS VOIDABLE BY
 2585  BUYER BY DELIVERING WRITTEN NOTICE OF THE BUYER’S INTENTION TO
 2586  CANCEL WITHIN 15 3 DAYS, EXCLUDING SATURDAYS, SUNDAYS, AND LEGAL
 2587  HOLIDAYS, AFTER THE DATE OF EXECUTION OF THIS AGREEMENT BY THE
 2588  BUYER AND RECEIPT BY BUYER OF A CURRENT COPY OF THE INSPECTOR
 2589  PREPARED SUMMARY OF THE MILESTONE INSPECTION REPORT AS DESCRIBED
 2590  IN SECTION 553.899, FLORIDA STATUTES, IF APPLICABLE; A COPY OF
 2591  THE TURNOVER INSPECTION REPORT DESCRIBED IN SECTION
 2592  718.301(4)(p) AND (q), FLORIDA STATUTES, IF APPLICABLE; AND A
 2593  COPY OF THE ASSOCIATION’S MOST RECENT STRUCTURAL INTEGRITY
 2594  RESERVE STUDY DESCRIBED IN SECTIONS 718.103(26) AND
 2595  718.112(2)(g), FLORIDA STATUTES, IF APPLICABLE. ANY PURPORTED
 2596  WAIVER OF THESE VOIDABILITY RIGHTS SHALL BE OF NO EFFECT. BUYER
 2597  MAY EXTEND THE TIME FOR CLOSING FOR A PERIOD OF NOT MORE THAN 15
 2598  3 DAYS, EXCLUDING SATURDAYS, SUNDAYS, AND LEGAL HOLIDAYS, AFTER
 2599  THE BUYER RECEIVES A CURRENT COPY OF THE INSPECTOR-PREPARED
 2600  SUMMARY OF THE MILESTONE INSPECTION REPORT AS DESCRIBED IN
 2601  SECTION 553.899, FLORIDA STATUTES; A COPY OF THE TURNOVER
 2602  INSPECTION REPORT DESCRIBED IN SECTION 718.301(4)(p) AND (q),
 2603  FLORIDA STATUTES; OR A COPY OF THE ASSOCIATION’S MOST RECENT
 2604  STRUCTURAL INTEGRITY RESERVE STUDY DESCRIBED IN SECTIONS
 2605  718.103(26) AND 718.112(2)(g), FLORIDA STATUTES, IF REQUESTED IN
 2606  WRITING. BUYER’S RIGHT TO VOID THIS AGREEMENT SHALL TERMINATE AT
 2607  CLOSING.
 2608  
 2609  A contract that does not conform to the requirements of this
 2610  paragraph is voidable at the option of the purchaser before
 2611  prior to closing.
 2612         Section 9. Section 8 of chapter 2024-244, Laws of Florida,
 2613  is amended to read:
 2614         Section 8. Effective January 1, 2026, paragraph (g) of
 2615  subsection (12) of section 718.111, Florida Statutes, as amended
 2616  by this act, is amended to read:
 2617         718.111 The association.—
 2618         (12) OFFICIAL RECORDS.—
 2619         (g)1. An association managing a condominium with 25 or more
 2620  units which does not contain timeshare units shall post digital
 2621  copies of the documents specified in subparagraph 2. on its
 2622  website or make such documents available through an application
 2623  that can be downloaded on a mobile device. Unless a shorter
 2624  period is otherwise required, a document must be made available
 2625  on the association’s website or made available for download
 2626  through an application on a mobile device within 30 days after
 2627  the association receives or creates an official record specified
 2628  in subparagraph 2.
 2629         a. The association’s website or application must be:
 2630         (I) An independent website, application, or web portal
 2631  wholly owned and operated by the association; or
 2632         (II) A website, application, or web portal operated by a
 2633  third-party provider with whom the association owns, leases,
 2634  rents, or otherwise obtains the right to operate a web page,
 2635  subpage, web portal, collection of subpages or web portals, or
 2636  an application which is dedicated to the association’s
 2637  activities and on which required notices, records, and documents
 2638  may be posted or made available by the association.
 2639         b. The association’s website or application must be
 2640  accessible through the Internet and must contain a subpage, web
 2641  portal, or other protected electronic location that is
 2642  inaccessible to the general public and accessible only to unit
 2643  owners and employees of the association.
 2644         c. Upon a unit owner’s written request, the association
 2645  must provide the unit owner with a username and password and
 2646  access to the protected sections of the association’s website or
 2647  application which contain any notices, records, or documents
 2648  that must be electronically provided.
 2649         2. A current copy of the following documents must be posted
 2650  in digital format on the association’s website or application:
 2651         a. The recorded declaration of condominium of each
 2652  condominium operated by the association and each amendment to
 2653  each declaration.
 2654         b. The recorded bylaws of the association and each
 2655  amendment to the bylaws.
 2656         c. The articles of incorporation of the association, or
 2657  other documents creating the association, and each amendment to
 2658  the articles of incorporation or other documents. The copy
 2659  posted pursuant to this sub-subparagraph must be a copy of the
 2660  articles of incorporation filed with the Department of State.
 2661         d. The rules of the association.
 2662         e. The approved minutes of all board of administration
 2663  meetings over the preceding 12 months.
 2664         f. A list of all executory contracts or documents to which
 2665  the association is a party or under which the association or the
 2666  unit owners have an obligation or responsibility and, after
 2667  bidding for the related materials, equipment, or services has
 2668  closed, a list of bids received by the association within the
 2669  past year. Summaries of bids for materials, equipment, or
 2670  services which exceed $500 must be maintained on the website or
 2671  application for 1 year. In lieu of summaries, complete copies of
 2672  the bids may be posted.
 2673         g.f. The annual budget required by s. 718.112(2)(f) and any
 2674  proposed budget to be considered at the annual meeting.
 2675         h.g. The financial report required by subsection (13) and
 2676  any monthly income or expense statement to be considered at a
 2677  meeting.
 2678         i.h. The certification of each director required by s.
 2679  718.112(2)(d)4.b.
 2680         j.i. All contracts or transactions between the association
 2681  and any director, officer, corporation, firm, or association
 2682  that is not an affiliated condominium association or any other
 2683  entity in which an association director is also a director or
 2684  officer and financially interested.
 2685         k.j. Any contract or document regarding a conflict of
 2686  interest or possible conflict of interest as provided in ss.
 2687  468.4335, 468.436(2)(b)6., and 718.3027(3).
 2688         l.k. The notice of any unit owner meeting and the agenda
 2689  for the meeting, as required by s. 718.112(2)(d)3., no later
 2690  than 14 days before the meeting. The notice must be posted in
 2691  plain view on the front page of the website or application, or
 2692  on a separate subpage of the website or application labeled
 2693  “Notices” which is conspicuously visible and linked from the
 2694  front page. The association must also post on its website or
 2695  application any document to be considered and voted on by the
 2696  owners during the meeting or any document listed on the agenda
 2697  at least 7 days before the meeting at which the document or the
 2698  information within the document will be considered.
 2699         m.l. Notice of any board meeting, the agenda, and any other
 2700  document required for the meeting as required by s.
 2701  718.112(2)(c), which must be posted no later than the date
 2702  required for notice under s. 718.112(2)(c).
 2703         n.m. The inspection reports described in ss. 553.899 and
 2704  718.301(4)(p) and any other inspection report relating to a
 2705  structural or life safety inspection of condominium property.
 2706         o.n. The association’s most recent structural integrity
 2707  reserve study, if applicable.
 2708         p.o. Copies of all building permits issued for ongoing or
 2709  planned construction.
 2710         3. The association shall ensure that the information and
 2711  records described in paragraph (c), which are not allowed to be
 2712  accessible to unit owners, are not posted on the association’s
 2713  website or application. If protected information or information
 2714  restricted from being accessible to unit owners is included in
 2715  documents that are required to be posted on the association’s
 2716  website or application, the association shall ensure the
 2717  information is redacted before posting the documents.
 2718  Notwithstanding the foregoing, the association or its agent is
 2719  not liable for disclosing information that is protected or
 2720  restricted under this paragraph unless such disclosure was made
 2721  with a knowing or intentional disregard of the protected or
 2722  restricted nature of such information.
 2723         q. A copy of all affidavits required by this chapter.
 2724         4. The failure of the association to post information
 2725  required under subparagraph 2. is not in and of itself
 2726  sufficient to invalidate any action or decision of the
 2727  association’s board or its committees.
 2728         Section 10. Section 31 of chapter 2024-244, Laws of
 2729  Florida, is amended to read:
 2730         Section 31. The amendments made to ss. 718.103(14) and
 2731  718.202(3) and 718.407(1), (2), and (6), Florida Statutes, as
 2732  created by this act, may not are intended to clarify existing
 2733  law and shall apply retroactively and shall only apply to
 2734  condominiums for which declarations were initially recorded on
 2735  or after July 1, 2025. However, such amendments do not revive or
 2736  reinstate any right or interest that has been fully and finally
 2737  adjudicated as invalid before October 1, 2024.
 2738         Section 11. Subsection (13) is added to section 719.104,
 2739  Florida Statutes, to read:
 2740         719.104 Cooperatives; access to units; records; financial
 2741  reports; assessments; purchase of leases.—
 2742         (13) INVESTMENT OF ASSOCIATION FUNDS.—
 2743         (a) A board shall, in fulfilling its duty to manage
 2744  operating and reserve funds of its association, use best efforts
 2745  to make prudent investment decisions that carefully consider
 2746  risk and return in an effort to maximize returns on invested
 2747  funds.
 2748         (b) An association may invest reserve funds in one or any
 2749  combination of certificates of deposit or in depository accounts
 2750  at a community bank, savings bank, commercial bank, savings and
 2751  loan association, or credit union. Upon a majority vote of the
 2752  voting interests, an association may invest reserve funds in
 2753  investments other than certificates of deposit or depository
 2754  accounts at a community bank, savings bank, commercial bank,
 2755  savings and loan association, or credit union, provided the
 2756  association complies with paragraphs (c)-(g). Notwithstanding
 2757  any declaration, only funds identified as reserve funds may be
 2758  invested pursuant to paragraphs (c)-(g). Paragraphs (c)-(g) do
 2759  not apply to funds invested in one or any combination of
 2760  certificates of deposit or depository accounts at a community
 2761  bank, savings bank, commercial bank, savings and loan
 2762  association, or credit union.
 2763         (c) The board shall create an investment committee composed
 2764  of at least two board members and two-unit unit members who are
 2765  unit owners but not board members. The board shall also adopt
 2766  rules for invested funds, including, but not limited to, rules
 2767  requiring periodic reviews of any investment manager’s
 2768  performance, the development of an investment policy statement,
 2769  and that all meetings of the investment committee be recorded
 2770  and made part of the official records of the association. The
 2771  investment policy statement developed pursuant to this paragraph
 2772  must, at a minimum, address risk, liquidity, and benchmark
 2773  measurements; authorized classes of investments; authorized
 2774  investment mixes; limitations on authority relating to
 2775  investment transactions; requirements for projected reserve
 2776  expenditures within, at minimum, the next 24 months to be held
 2777  in cash or cash equivalents; projected expenditures relating to
 2778  an inspection performed pursuant to s. 553.899; and protocols
 2779  for proxy response.
 2780         (d) The investment committee shall recommend investment
 2781  advisers to the board, and the board shall select one of the
 2782  recommended investment advisers to provide services to the
 2783  association. Such investment advisers must be registered or have
 2784  notice filed under s. 517.12. The selected investment adviser
 2785  and any representative or association of the investment adviser
 2786  may not be related by affinity or consanguinity to, or under
 2787  common ownership with, any board member, community management
 2788  company, reserve study provider, or unit owner. The investment
 2789  adviser shall comply with the prudent investor rule in s.
 2790  518.11. The investment adviser shall act as a fiduciary to the
 2791  association in compliance with the standards set forth in the
 2792  Employee Retirement Income Security Act of 1974 at 29 U.S.C. s.
 2793  1104(a)(1)(A)-(C). In case of conflict with other laws
 2794  authorizing investments, the investment and fiduciary standards
 2795  set forth in this subsection must prevail. If at any time the
 2796  investment committee determines that an investment adviser does
 2797  not meet the requirements of this section, the investment
 2798  committee must recommend a replacement investment adviser to the
 2799  board.
 2800         (e) At least once each calendar year, or sooner if a
 2801  substantial financial obligation of the association becomes
 2802  known to the board, the association must provide the investment
 2803  adviser with the association’s investment policy statement, the
 2804  most recent reserve study report, the association’s structural
 2805  integrity report, and the financial reports prepared pursuant to
 2806  subsection (13). If there is no recent reserve study report, the
 2807  association must provide the investment adviser with a good
 2808  faith estimate disclosing the annual amount of reserve funds
 2809  necessary for the association to fund reserves fully for the
 2810  life of each reserve component and each component’s
 2811  redundancies. The investment adviser shall annually review these
 2812  documents and provide the association with a portfolio
 2813  allocation model that is suitably structured and prudently
 2814  designed to match projected annual reserve fund requirements and
 2815  liability, assets, and liquidity requirements. The investment
 2816  adviser shall prepare a funding projection for each reserve
 2817  component, including any of the component’s redundancies. The
 2818  association shall have available at all times a minimum of 24
 2819  months of projected reserves in cash or cash equivalents.
 2820         (f) Portfolios managed by the investment adviser may
 2821  contain any type of investment necessary to meet the objectives
 2822  in the investment policy statement; however, portfolios may not
 2823  contain stocks, securities, or other obligations that the State
 2824  Board of Administration is prohibited from investing in under s.
 2825  215.471, s. 215.4725, or s. 215.473 or that state agencies are
 2826  prohibited from investing in under s. 215.472, as determined by
 2827  the investment adviser. Any funds invested by the investment
 2828  adviser must be held in third-party custodial accounts that are
 2829  subject to insurance coverage by the Securities Investor
 2830  Protection Corporation in an amount equal to or greater than the
 2831  invested amount. The investment adviser may withdraw investment
 2832  fees, expenses, and commissions from invested funds.
 2833         (g) The investment adviser shall:
 2834         1. Annually provide the association with a written
 2835  certification of compliance with this section and a list of
 2836  stocks, securities, and other obligations that are prohibited
 2837  from being in association portfolios under paragraph (f); and
 2838         2. Submit monthly, quarterly, and annual reports to the
 2839  association which are prepared in accordance with established
 2840  financial industry standards and in accordance with chapter 517.
 2841         (h) Any principal, earnings, or interest managed under this
 2842  subsection must be available at no cost or charge to the
 2843  association within 15 business days after delivery of the
 2844  association’s written or electronic request.
 2845         (i) Unallocated income earned on reserve fund investments
 2846  may be spent only on capital expenditures, planned maintenance,
 2847  structural repairs, or other items for which the reserve
 2848  accounts have been established. Any surplus of funds which
 2849  exceeds the amount required to maintain reasonably funded
 2850  reserves must be managed pursuant to s. 718.115.
 2851         Section 12. Paragraphs (j) and (k) of subsection (1) of
 2852  section 719.106, Florida Statutes, are amended to read:
 2853         719.106 Bylaws; cooperative ownership.—
 2854         (1) MANDATORY PROVISIONS.—The bylaws or other cooperative
 2855  documents shall provide for the following, and if they do not,
 2856  they shall be deemed to include the following:
 2857         (j) Annual budget.—
 2858         1. The proposed annual budget of common expenses must be
 2859  detailed and must show the amounts budgeted by accounts and
 2860  expense classifications, including, if applicable, but not
 2861  limited to, those expenses listed in s. 719.504(20). The board
 2862  of administration shall adopt the annual budget at least 14 days
 2863  before the start of the association’s fiscal year. In the event
 2864  that the board fails to timely adopt the annual budget a second
 2865  time, it is deemed a minor violation and the prior year’s budget
 2866  shall continue in effect until a new budget is adopted.
 2867         2.a. In addition to annual operating expenses, the budget
 2868  must include reserve accounts for capital expenditures and
 2869  deferred maintenance. These accounts must include, but not be
 2870  limited to, roof replacement, building painting, and pavement
 2871  resurfacing, regardless of the amount of deferred maintenance
 2872  expense or replacement cost, and for any other items for which
 2873  the deferred maintenance expense or replacement cost exceeds
 2874  $25,000 $10,000. The amount to be reserved must be computed by
 2875  means of a formula which is based upon estimated remaining
 2876  useful life and estimated replacement cost or deferred
 2877  maintenance expense of the reserve item. In a budget adopted by
 2878  an association that is required to obtain a structural integrity
 2879  reserve study, reserves must be maintained for the items
 2880  identified in paragraph (k) for which the association is
 2881  responsible pursuant to the declaration, and the reserve amount
 2882  for such items must be based on the findings and recommendations
 2883  of the association’s most recent structural integrity reserve
 2884  study. If an association votes to terminate the condominium in
 2885  accordance with s. 718.117, the members may vote to waive the
 2886  maintenance of reserves recommended by the association’s most
 2887  recent structural integrity reserve study. With respect to items
 2888  for which an estimate of useful life is not readily
 2889  ascertainable or with an estimated remaining useful life of
 2890  greater than 25 years, an association is not required to reserve
 2891  replacement costs for such items, but an association must
 2892  reserve the amount of deferred maintenance expense, if any,
 2893  which is recommended by the structural integrity reserve study
 2894  for such items. The association may adjust replacement reserve
 2895  assessments annually to take into account an inflation
 2896  adjustment and any changes in estimates or extension of the
 2897  useful life of a reserve item caused by deferred maintenance.
 2898         b. The members of a unit-owner-controlled association may
 2899  determine, by a majority vote of the total voting interests of
 2900  the association, for a fiscal year to provide no reserves or
 2901  reserves less adequate than required by this subsection. Before
 2902  turnover of control of an association by a developer to unit
 2903  owners other than a developer under s. 719.301, the developer
 2904  controlled association may not vote to waive the reserves or
 2905  reduce funding of the reserves.
 2906         c. For a budget adopted on or after December 31, 2024, a
 2907  unit-owner-controlled association that must obtain a structural
 2908  integrity reserve study may not determine to provide no reserves
 2909  or reserves less adequate than required by this paragraph for
 2910  items listed in paragraph (k). If a meeting of the unit owners
 2911  has been called to determine to provide no reserves, or reserves
 2912  less adequate than required, and such result is not attained or
 2913  a quorum is not attained, the reserves as included in the budget
 2914  shall go into effect.
 2915         d. If the local building official as defined in s. 468.603,
 2916  determines that the entire condominium building is uninhabitable
 2917  due to a natural emergency as defined in s. 252.34, the board
 2918  may pause the contribution to its reserves or reduce reserve
 2919  funding until the local building official determines that the
 2920  condominium building is habitable. Any reserve account funds
 2921  held by the association may be expended, pursuant to the board’s
 2922  determination, to make the condominium building and its
 2923  structures habitable. Upon the determination by the local
 2924  building official that the condominium building is habitable,
 2925  the association must immediately resume contributing funds to
 2926  its reserves.
 2927         eFor a budget adopted on or before December 31, 2028, a
 2928  unit-owner-controlled association that must have a structural
 2929  reserve study may secure a line of credit in lieu of maintaining
 2930  reserves for all or a portion of the reserves required under
 2931  this paragraph and paragraph (f) upon a majority vote of the
 2932  total voting interests of the association. The line of credit
 2933  must be sufficient to meet the association’s deferred
 2934  maintenance obligation not funded in the association’s reserve
 2935  account for each budget. Funding from the line of credit must be
 2936  immediately available for access by the board to fund required
 2937  repair, maintenance, or replacement expenses without further
 2938  approval by the members of the association.
 2939         fFor a budget adopted on or before December 31, 2028, if
 2940  the association has completed a milestone inspection pursuant to
 2941  s. 553.899 within the previous 2 calendar years, the board, upon
 2942  the approval of a majority of the total voting interests of the
 2943  association, may temporarily pause, for a period of no more than
 2944  2 consecutive annual budgets, reserve fund contributions or
 2945  reduce the amount of reserve funding for the purpose of funding
 2946  repairs recommended by the milestone inspection. This sub
 2947  subparagraph does not apply to a developer-controlled
 2948  association and an association in which the non-developer unit
 2949  owners have been in control for less than 1 year. An association
 2950  that has paused reserve contributions under this sub
 2951  subparagraph must have a structural integrity reserve study
 2952  performed before the continuation of reserve contributions in
 2953  order to determine the association’s reserve funding needs and
 2954  to recommend a reserve funding plan.
 2955         3. Reserve funds and any interest accruing thereon shall
 2956  remain in the reserve account or accounts, and shall be used
 2957  only for authorized reserve expenditures unless their use for
 2958  other purposes is approved in advance by a vote of the majority
 2959  of the total voting interests of the association. Before
 2960  turnover of control of an association by a developer to unit
 2961  owners other than the developer under s. 719.301, the developer
 2962  may not vote to use reserves for purposes other than that for
 2963  which they were intended. For a budget adopted on or after
 2964  December 31, 2024, members of a unit-owner-controlled
 2965  association that must obtain a structural integrity reserve
 2966  study may not vote to use reserve funds, or any interest
 2967  accruing thereon, for purposes other than the replacement or
 2968  deferred maintenance costs of the components listed in paragraph
 2969  (k). A vote of the members is not required for the board to
 2970  change the accounting method for reserves to a pooling
 2971  accounting method or a straight-line accounting method.
 2972         (k) Structural integrity reserve study.—
 2973         1. A residential cooperative association must have a
 2974  structural integrity reserve study completed at least every 10
 2975  years for each building on the cooperative property that is
 2976  three stories or higher in height, as determined by the Florida
 2977  Building Code, that includes, at a minimum, a study of the
 2978  following items as related to the structural integrity and
 2979  safety of the building:
 2980         a. Roof.
 2981         b. Structure, including load-bearing walls and other
 2982  primary structural members and primary structural systems as
 2983  those terms are defined in s. 627.706.
 2984         c. Fireproofing and fire protection systems.
 2985         d. Plumbing.
 2986         e. Electrical systems.
 2987         f. Waterproofing and exterior painting.
 2988         g. Windows and exterior doors.
 2989         h. Any other item that has a deferred maintenance expense
 2990  or replacement cost that exceeds $25,000 $10,000 and the failure
 2991  to replace or maintain such item negatively affects the items
 2992  listed in sub-subparagraphs a.-g., as determined by the visual
 2993  inspection portion of the structural integrity reserve study.
 2994         2. A structural integrity reserve study is based on a
 2995  visual inspection of the cooperative property.
 2996         3.a. A structural integrity reserve study may be performed
 2997  by any person qualified to perform such study. However, the
 2998  visual inspection portion of the structural integrity reserve
 2999  study must be performed or verified by an engineer licensed
 3000  under chapter 471, an architect licensed under chapter 481, or a
 3001  person certified as a reserve specialist or professional reserve
 3002  analyst by the Community Associations Institute or the
 3003  Association of Professional Reserve Analysts.
 3004         b. Any design professional as defined in s. 558.002(7) or
 3005  contractor licensed under chapter 489 who bids to perform a
 3006  structural integrity reserve study must disclose in writing to
 3007  the association his or her intent to bid on any services related
 3008  to any maintenance, repair, or replacement that may be
 3009  recommended by the structural integrity reserve study. Any
 3010  design professional as defined in s. 558.002 or contractor
 3011  licensed under chapter 489 who submits a bid to the association
 3012  for performing any services recommended by the structural
 3013  integrity reserve study may not have an interest, directly or
 3014  indirectly, in the firm or entity providing the association’s
 3015  structural integrity reserve study or be a relative of any
 3016  person having a direct or indirect interest in such firm, unless
 3017  such relationship is disclosed to the association in writing. As
 3018  used in this section, the term “relative” means a relative
 3019  within the third degree of consanguinity by blood or marriage. A
 3020  contract for services is voidable and terminates upon the
 3021  association filing a written notice terminating the contract if
 3022  the design professional or licensed contractor failed to provide
 3023  the written disclosure of the relationship required under this
 3024  paragraph. A design professional or licensed contractor may be
 3025  subject to discipline under the applicable practice act for his
 3026  or her profession for failure to provide the written disclosure
 3027  of the relationship required under this subparagraph.
 3028         4.a. 3. At a minimum, a structural integrity reserve study
 3029  must identify each item of the cooperative property being
 3030  visually inspected, state the estimated remaining useful life
 3031  and the estimated replacement cost or deferred maintenance
 3032  expense of each item of the cooperative property being visually
 3033  inspected, and provide a reserve funding schedule with a
 3034  recommended annual reserve amount that achieves the estimated
 3035  replacement cost or deferred maintenance expense of each item of
 3036  cooperative property being visually inspected by the end of the
 3037  estimated remaining useful life of the item. The structural
 3038  integrity reserve study may recommend that reserves do not need
 3039  to be maintained for any item for which an estimate of useful
 3040  life and an estimate of replacement cost cannot be determined,
 3041  or the study may recommend a deferred maintenance expense amount
 3042  for such item. At a minimum, the structural integrity reserve
 3043  study must include a recommendation for a reserve funding
 3044  schedule based on a baseline funding plan that provides a
 3045  reserve funding goal in which the reserve funding for each
 3046  budget year is sufficient to maintain the reserve cash balance
 3047  above zero. The study may recommend other types of reserve
 3048  funding schedules, provided that each recommended schedule is
 3049  sufficient to meet the association’s maintenance obligation.
 3050         b. The structural integrity reserve study may recommend
 3051  that reserves for replacement costs do not need to be maintained
 3052  for any item with an estimated remaining useful life of greater
 3053  than 25 years, but the study may recommend a deferred
 3054  maintenance expense amount for such item. If the structural
 3055  integrity reserve study recommends reserves for any item for
 3056  which reserves are not required under this paragraph, the amount
 3057  of the recommended reserves for such item must be separately
 3058  identified in the structural integrity reserve study as an item
 3059  for which reserves are not required under this paragraph.
 3060         5.4. This paragraph does not apply to buildings less than
 3061  three stories in height; single-family, two-family, or three
 3062  family dwellings with three or fewer habitable stories above
 3063  ground; any portion or component of a building that has not been
 3064  submitted to the cooperative form of ownership; or any portion
 3065  or component of a building that is maintained by a party other
 3066  than the association.
 3067         6.5. Before a developer turns over control of an
 3068  association to unit owners other than the developer, the
 3069  developer must have a turnover inspection report in compliance
 3070  with s. 719.301(4)(p) and (q) for each building on the
 3071  cooperative property that is three stories or higher in height.
 3072         7.6. Associations existing on or before July 1, 2022, which
 3073  are controlled by unit owners other than the developer, must
 3074  have a structural integrity reserve study completed by December
 3075  31, 2024, for each building on the cooperative property that is
 3076  three stories or higher in height. An association that is
 3077  required to complete a milestone inspection on or before
 3078  December 31, 2026, in accordance with s. 553.899 may complete
 3079  the structural integrity reserve study simultaneously with the
 3080  milestone inspection. In no event may the structural integrity
 3081  reserve study be completed after December 31, 2026.
 3082         8.7. If the milestone inspection required by s. 553.899, or
 3083  an inspection completed for a similar local requirement, was
 3084  performed within the past 5 years and meets the requirements of
 3085  this paragraph, such inspection may be used in place of the
 3086  visual inspection portion of the structural integrity reserve
 3087  study.
 3088         9. If the association completes a milestone inspection
 3089  required by s. 553.899, or an inspection completed for a similar
 3090  local requirement, the association may delay performance of a
 3091  required structural integrity reserve study for no more than the
 3092  2 consecutive budget years immediately following the milestone
 3093  inspection in order to allow the association to focus its
 3094  financial resources on completing the repair and maintenance
 3095  recommendations of the milestone inspection.
 3096         10.8. If the officers or directors of an association
 3097  willfully and knowingly fail to complete a structural integrity
 3098  reserve study pursuant to this paragraph, such failure is a
 3099  breach of an officer’s and director’s fiduciary relationship to
 3100  the unit owners under s. 719.104(9). An officer or a director of
 3101  the association must sign an affidavit acknowledging receipt of
 3102  the completed structural integrity reserve study.
 3103         11.9. Within 45 days after receiving the structural
 3104  integrity reserve study, the association must distribute a copy
 3105  of the study to each unit owner or deliver to each unit owner a
 3106  notice that the completed study is available for inspection and
 3107  copying upon a written request. Distribution of a copy of the
 3108  study or notice must be made by United States mail or personal
 3109  delivery at the mailing address, property address, or any other
 3110  address of the owner provided to fulfill the association’s
 3111  notice requirements under this chapter, or by electronic
 3112  transmission to the e-mail address or facsimile number provided
 3113  to fulfill the association’s notice requirements to unit owners
 3114  who previously consented to receive notice by electronic
 3115  transmission.
 3116         12.10. Within 45 days after receiving the structural
 3117  integrity reserve study, the association must provide the
 3118  division with a statement indicating that the study was
 3119  completed and that the association provided or made available
 3120  such study to each unit owner in accordance with this section.
 3121  Such statement must be provided to the division in the manner
 3122  established by the division using a form posted on the
 3123  division’s website.
 3124         13. The division shall adopt by rule the form for the
 3125  structural integrity reserve study in coordination with the
 3126  Florida Building Commission.
 3127         Section 13. Subsection (3) of section 719.501, Florida
 3128  Statutes, is amended, paragraph (c) is added to subsection (2)
 3129  of that section, and subsection (1) of that section is
 3130  reenacted, to read:
 3131         719.501 Powers and duties of Division of Florida
 3132  Condominiums, Timeshares, and Mobile Homes.—
 3133         (1) The Division of Florida Condominiums, Timeshares, and
 3134  Mobile Homes of the Department of Business and Professional
 3135  Regulation, referred to as the “division” in this part, in
 3136  addition to other powers and duties prescribed by chapter 718,
 3137  has the power to enforce and ensure compliance with this chapter
 3138  and adopted rules relating to the development, construction,
 3139  sale, lease, ownership, operation, and management of residential
 3140  cooperative units; complaints related to the procedural
 3141  completion of the structural integrity reserve studies under s.
 3142  719.106(1)(k); and complaints related to the procedural
 3143  completion of milestone inspections under s. 553.899. In
 3144  performing its duties, the division shall have the following
 3145  powers and duties:
 3146         (a) The division may make necessary public or private
 3147  investigations within or outside this state to determine whether
 3148  any person has violated this chapter or any rule or order
 3149  hereunder, to aid in the enforcement of this chapter, or to aid
 3150  in the adoption of rules or forms hereunder.
 3151         (b) The division may require or permit any person to file a
 3152  statement in writing, under oath or otherwise, as the division
 3153  determines, as to the facts and circumstances concerning a
 3154  matter to be investigated.
 3155         (c) For the purpose of any investigation under this
 3156  chapter, the division director or any officer or employee
 3157  designated by the division director may administer oaths or
 3158  affirmations, subpoena witnesses and compel their attendance,
 3159  take evidence, and require the production of any matter which is
 3160  relevant to the investigation, including the existence,
 3161  description, nature, custody, condition, and location of any
 3162  books, documents, or other tangible things and the identity and
 3163  location of persons having knowledge of relevant facts or any
 3164  other matter reasonably calculated to lead to the discovery of
 3165  material evidence. Upon failure by a person to obey a subpoena
 3166  or to answer questions propounded by the investigating officer
 3167  and upon reasonable notice to all persons affected thereby, the
 3168  division may apply to the circuit court for an order compelling
 3169  compliance.
 3170         (d) Notwithstanding any remedies available to unit owners
 3171  and associations, if the division has reasonable cause to
 3172  believe that a violation of any provision of this chapter or
 3173  related rule has occurred, the division may institute
 3174  enforcement proceedings in its own name against a developer,
 3175  association, officer, or member of the board, or its assignees
 3176  or agents, as follows:
 3177         1. The division may permit a person whose conduct or
 3178  actions may be under investigation to waive formal proceedings
 3179  and enter into a consent proceeding whereby orders, rules, or
 3180  letters of censure or warning, whether formal or informal, may
 3181  be entered against the person.
 3182         2. The division may issue an order requiring the developer,
 3183  association, officer, or member of the board, or its assignees
 3184  or agents, to cease and desist from the unlawful practice and
 3185  take such affirmative action as in the judgment of the division
 3186  will carry out the purposes of this chapter. Such affirmative
 3187  action may include, but is not limited to, an order requiring a
 3188  developer to pay moneys determined to be owed to a condominium
 3189  association.
 3190         3. The division may bring an action in circuit court on
 3191  behalf of a class of unit owners, lessees, or purchasers for
 3192  declaratory relief, injunctive relief, or restitution.
 3193         4. The division may impose a civil penalty against a
 3194  developer or association, or its assignees or agents, for any
 3195  violation of this chapter or related rule. The division may
 3196  impose a civil penalty individually against any officer or board
 3197  member who willfully and knowingly violates a provision of this
 3198  chapter, a rule adopted pursuant to this chapter, or a final
 3199  order of the division. The term “willfully and knowingly” means
 3200  that the division informed the officer or board member that his
 3201  or her action or intended action violates this chapter, a rule
 3202  adopted under this chapter, or a final order of the division,
 3203  and that the officer or board member refused to comply with the
 3204  requirements of this chapter, a rule adopted under this chapter,
 3205  or a final order of the division. The division, prior to
 3206  initiating formal agency action under chapter 120, shall afford
 3207  the officer or board member an opportunity to voluntarily comply
 3208  with this chapter, a rule adopted under this chapter, or a final
 3209  order of the division. An officer or board member who complies
 3210  within 10 days is not subject to a civil penalty. A penalty may
 3211  be imposed on the basis of each day of continuing violation, but
 3212  in no event shall the penalty for any offense exceed $5,000. The
 3213  division shall adopt, by rule, penalty guidelines applicable to
 3214  possible violations or to categories of violations of this
 3215  chapter or rules adopted by the division. The guidelines must
 3216  specify a meaningful range of civil penalties for each such
 3217  violation of the statute and rules and must be based upon the
 3218  harm caused by the violation, upon the repetition of the
 3219  violation, and upon such other factors deemed relevant by the
 3220  division. For example, the division may consider whether the
 3221  violations were committed by a developer or owner-controlled
 3222  association, the size of the association, and other factors. The
 3223  guidelines must designate the possible mitigating or aggravating
 3224  circumstances that justify a departure from the range of
 3225  penalties provided by the rules. It is the legislative intent
 3226  that minor violations be distinguished from those which endanger
 3227  the health, safety, or welfare of the cooperative residents or
 3228  other persons and that such guidelines provide reasonable and
 3229  meaningful notice to the public of likely penalties that may be
 3230  imposed for proscribed conduct. This subsection does not limit
 3231  the ability of the division to informally dispose of
 3232  administrative actions or complaints by stipulation, agreed
 3233  settlement, or consent order. All amounts collected shall be
 3234  deposited with the Chief Financial Officer to the credit of the
 3235  Division of Florida Condominiums, Timeshares, and Mobile Homes
 3236  Trust Fund. If a developer fails to pay the civil penalty, the
 3237  division shall thereupon issue an order directing that such
 3238  developer cease and desist from further operation until such
 3239  time as the civil penalty is paid or may pursue enforcement of
 3240  the penalty in a court of competent jurisdiction. If an
 3241  association fails to pay the civil penalty, the division shall
 3242  thereupon pursue enforcement in a court of competent
 3243  jurisdiction, and the order imposing the civil penalty or the
 3244  cease and desist order shall not become effective until 20 days
 3245  after the date of such order. Any action commenced by the
 3246  division shall be brought in the county in which the division
 3247  has its executive offices or in the county where the violation
 3248  occurred.
 3249         (e) The division may prepare and disseminate a prospectus
 3250  and other information to assist prospective owners, purchasers,
 3251  lessees, and developers of residential cooperatives in assessing
 3252  the rights, privileges, and duties pertaining thereto.
 3253         (f) The division has authority to adopt rules pursuant to
 3254  ss. 120.536(1) and 120.54 to implement and enforce the
 3255  provisions of this chapter.
 3256         (g) The division shall establish procedures for providing
 3257  notice to an association when the division is considering the
 3258  issuance of a declaratory statement with respect to the
 3259  cooperative documents governing such cooperative community.
 3260         (h) The division shall furnish each association which pays
 3261  the fees required by paragraph (2)(a) a copy of this act,
 3262  subsequent changes to this act on an annual basis, an amended
 3263  version of this act as it becomes available from the Secretary
 3264  of State’s office on a biennial basis, and the rules adopted
 3265  thereto on an annual basis.
 3266         (i) The division shall annually provide each association
 3267  with a summary of declaratory statements and formal legal
 3268  opinions relating to the operations of cooperatives which were
 3269  rendered by the division during the previous year.
 3270         (j) The division shall adopt uniform accounting principles,
 3271  policies, and standards to be used by all associations in the
 3272  preparation and presentation of all financial statements
 3273  required by this chapter. The principles, policies, and
 3274  standards shall take into consideration the size of the
 3275  association and the total revenue collected by the association.
 3276         (k) The division shall provide training and educational
 3277  programs for cooperative association board members and unit
 3278  owners. The training may, in the division’s discretion, include
 3279  web-based electronic media and live training and seminars in
 3280  various locations throughout the state. The division may review
 3281  and approve education and training programs for board members
 3282  and unit owners offered by providers and shall maintain a
 3283  current list of approved programs and providers and make such
 3284  list available to board members and unit owners in a reasonable
 3285  and cost-effective manner.
 3286         (l) The division shall maintain a toll-free telephone
 3287  number accessible to cooperative unit owners.
 3288         (m) When a complaint is made to the division, the division
 3289  shall conduct its inquiry with reasonable dispatch and with due
 3290  regard to the interests of the affected parties. Within 30 days
 3291  after receipt of a complaint, the division shall acknowledge the
 3292  complaint in writing and notify the complainant whether the
 3293  complaint is within the jurisdiction of the division and whether
 3294  additional information is needed by the division from the
 3295  complainant. The division shall conduct its investigation and
 3296  shall, within 90 days after receipt of the original complaint or
 3297  timely requested additional information, take action upon the
 3298  complaint. However, the failure to complete the investigation
 3299  within 90 days does not prevent the division from continuing the
 3300  investigation, accepting or considering evidence obtained or
 3301  received after 90 days, or taking administrative action if
 3302  reasonable cause exists to believe that a violation of this
 3303  chapter or a rule of the division has occurred. If an
 3304  investigation is not completed within the time limits
 3305  established in this paragraph, the division shall, on a monthly
 3306  basis, notify the complainant in writing of the status of the
 3307  investigation. When reporting its action to the complainant, the
 3308  division shall inform the complainant of any right to a hearing
 3309  pursuant to ss. 120.569 and 120.57.
 3310         (n) The division shall develop a program to certify both
 3311  volunteer and paid mediators to provide mediation of cooperative
 3312  disputes. The division shall provide, upon request, a list of
 3313  such mediators to any association, unit owner, or other
 3314  participant in arbitration proceedings under s. 718.1255
 3315  requesting a copy of the list. The division shall include on the
 3316  list of voluntary mediators only persons who have received at
 3317  least 20 hours of training in mediation techniques or have
 3318  mediated at least 20 disputes. In order to become initially
 3319  certified by the division, paid mediators must be certified by
 3320  the Supreme Court to mediate court cases in county or circuit
 3321  courts. However, the division may adopt, by rule, additional
 3322  factors for the certification of paid mediators, which factors
 3323  must be related to experience, education, or background. Any
 3324  person initially certified as a paid mediator by the division
 3325  must, in order to continue to be certified, comply with the
 3326  factors or requirements imposed by rules adopted by the
 3327  division.
 3328         (2)
 3329         (c)A cooperative association shall create and maintain an
 3330  online account with the division. Board members shall maintain
 3331  accurate contact information on file with the division. The
 3332  division shall adopt rules to implement this paragraph.
 3333         (3) On or before October 1, 2025, all cooperative
 3334  associations shall provide information as specified by the
 3335  division in an electronic format determined by the division. The
 3336  information in paragraphs (a), (b), and (c) must be updated
 3337  within 15 days after any change. The information that must be
 3338  provided to the division includes, but is not limited to:
 3339         (a)The contact information for the association that
 3340  includes all of the following:
 3341         1.The name of the association.
 3342         2.The mailing address and county of the association.
 3343         3.The e-mail address and telephone number for the
 3344  association.
 3345         4.The name, board title, and e-mail address for each
 3346  member of the association’s board.
 3347         5.The name and contact information of the association’s
 3348  community association manager or community association
 3349  management firm, if applicable.
 3350         6.The name and contact information of every individual or
 3351  community association management company responsible for
 3352  remitting any payment to the division.
 3353         7.The hyperlink or website address of the association’s
 3354  website, if applicable.
 3355         (b)The total number of buildings and for each building in
 3356  the association:
 3357         1.The physical address of the association.
 3358         2.The total number of stories of each building, including
 3359  both habitable and uninhabitable stories.
 3360         3.The total number of units.
 3361         4.The age of each building based on the certificate of
 3362  occupancy.
 3363         5.Any construction commenced on the common elements within
 3364  the previous calendar year.
 3365         (c)The association’s assessments, including the:
 3366         1.Amount of assessment or special assessment by unit type,
 3367  including reserves.
 3368         2.Purpose of the assessment or special assessment.
 3369         3.Name of the financial institution or institutions with
 3370  which the association maintains accounts.
 3371         (d)A copy of any structural integrity reserve study and
 3372  any associated materials requested by the department. The
 3373  association must provide such materials within 5 business days
 3374  after such request, in a manner prescribed by the department.
 3375         (a) On or before January 1, 2023, cooperative associations
 3376  existing on or before July 1, 2022, must provide the following
 3377  information to the division in writing, by e-mail, United States
 3378  Postal Service, commercial delivery service, or hand delivery,
 3379  at a physical address or e-mail address provided by the division
 3380  and on a form posted on the division’s website:
 3381         1. The number of buildings on the cooperative property that
 3382  are three stories or higher in height.
 3383         2. The total number of units in all such buildings.
 3384         3. The addresses of all such buildings.
 3385         4. The counties in which all such buildings are located.
 3386         (b) The division must compile a list of the number of
 3387  buildings on cooperative property that are three stories or
 3388  higher in height, which is searchable by county, and must post
 3389  the list on the division’s website. This list must include all
 3390  of the following information:
 3391         1. The name of each association with buildings on the
 3392  cooperative property that are three stories or higher in height.
 3393         2. The number of such buildings on each association’s
 3394  property.
 3395         3. The addresses of all such buildings.
 3396         4. The counties in which all such buildings are located.
 3397         (c) An association must provide an update in writing to the
 3398  division if there are any changes to the information in the list
 3399  under paragraph (b) within 6 months after the change.
 3400         Section 14. Paragraph (d) of subsection (1) and paragraphs
 3401  (c) and (d) of subsection (2) of section 719.503, Florida
 3402  Statutes, are amended, to read:
 3403         719.503 Disclosure prior to sale.—
 3404         (1) DEVELOPER DISCLOSURE.—
 3405         (d) Milestone inspection, turnover inspection report, or
 3406  structural integrity reserve study.—If the association is
 3407  required to have completed a milestone inspection as described
 3408  in s. 553.899, a turnover inspection report for a turnover
 3409  inspection performed on or after July 1, 2023, or a structural
 3410  integrity reserve study, and the association has not completed
 3411  the milestone inspection, the turnover inspection report, or the
 3412  structural integrity reserve study, each contract entered into
 3413  after December 31, 2024, for the sale of a residential unit
 3414  shall contain in conspicuous type a statement indicating that
 3415  the association is required to have a milestone inspection, a
 3416  turnover inspection report, or a structural integrity reserve
 3417  study and has not completed such inspection, report, or study,
 3418  as appropriate. If the association is not required to have a
 3419  milestone inspection as described in s. 553.899 or a structural
 3420  integrity reserve study, each contract entered into after
 3421  December 31, 2024, for the sale of a residential unit shall
 3422  contain in conspicuous type a statement indicating that the
 3423  association is not required to have a milestone inspection or a
 3424  structural integrity reserve study, as appropriate. If the
 3425  association has completed a milestone inspection as described in
 3426  s. 553.899, a turnover inspection report for a turnover
 3427  inspection performed on or after July 1, 2023, or a structural
 3428  integrity reserve study, each contract entered into after
 3429  December 31, 2024, for the sale of a residential unit shall
 3430  contain in conspicuous type:
 3431         1. A clause which states: THE BUYER HEREBY ACKNOWLEDGES
 3432  THAT BUYER HAS BEEN PROVIDED A CURRENT COPY OF THE INSPECTOR
 3433  PREPARED SUMMARY OF THE MILESTONE INSPECTION REPORT AS DESCRIBED
 3434  IN SECTION 553.899, FLORIDA STATUTES, IF APPLICABLE; A COPY OF
 3435  THE TURNOVER INSPECTION REPORT DESCRIBED IN SECTION
 3436  719.301(4)(p) AND (q), FLORIDA STATUTES, IF APPLICABLE; AND A
 3437  COPY OF THE ASSOCIATION’S MOST RECENT STRUCTURAL INTEGRITY
 3438  RESERVE STUDY DESCRIBED IN SECTIONS 719.103(24) AND
 3439  719.106(1)(k), FLORIDA STATUTES, IF APPLICABLE, MORE THAN 15
 3440  DAYS, EXCLUDING SATURDAYS, SUNDAYS, AND LEGAL HOLIDAYS, BEFORE
 3441  PRIOR TO EXECUTION OF THIS CONTRACT; and
 3442         2. A clause which states: THIS AGREEMENT IS VOIDABLE BY
 3443  BUYER BY DELIVERING WRITTEN NOTICE OF THE BUYER’S INTENTION TO
 3444  CANCEL WITHIN 15 DAYS, EXCLUDING SATURDAYS, SUNDAYS, AND LEGAL
 3445  HOLIDAYS, AFTER THE DATE OF EXECUTION OF THIS AGREEMENT BY THE
 3446  BUYER AND RECEIPT BY BUYER OF A CURRENT COPY OF THE INSPECTOR
 3447  PREPARED SUMMARY OF THE MILESTONE INSPECTION REPORT AS DESCRIBED
 3448  IN SECTION 553.899, FLORIDA STATUTES, IF APPLICABLE; A COPY OF
 3449  THE TURNOVER INSPECTION REPORT DESCRIBED IN SECTION
 3450  719.301(4)(p) AND (q), FLORIDA STATUTES, IF APPLICABLE; AND A
 3451  COPY OF THE ASSOCIATION’S MOST RECENT STRUCTURAL INTEGRITY
 3452  RESERVE STUDY DESCRIBED IN SECTIONS 719.103(24) AND
 3453  719.106(1)(k), FLORIDA STATUTES, IF APPLICABLE. ANY PURPORTED
 3454  WAIVER OF THESE VOIDABILITY RIGHTS SHALL BE OF NO EFFECT. BUYER
 3455  MAY EXTEND THE TIME FOR CLOSING FOR A PERIOD OF NOT MORE THAN 15
 3456  DAYS, EXCLUDING SATURDAYS, SUNDAYS, AND LEGAL HOLIDAYS, AFTER
 3457  THE BUYER RECEIVES A CURRENT COPY OF THE INSPECTOR-PREPARED
 3458  SUMMARY OF THE MILESTONE INSPECTION REPORT AS DESCRIBED IN
 3459  SECTION 553.899, FLORIDA STATUTES; A COPY OF THE TURNOVER
 3460  INSPECTION REPORT DESCRIBED IN SECTION 719.301(4)(p) AND (q),
 3461  FLORIDA STATUTES; OR A COPY OF THE ASSOCIATION’S MOST RECENT
 3462  STRUCTURAL INTEGRITY RESERVE STUDY DESCRIBED IN SECTIONS
 3463  719.103(24) AND 719.106(1)(k), FLORIDA STATUTES, IF REQUESTED IN
 3464  WRITING. BUYER’S RIGHT TO VOID THIS AGREEMENT SHALL TERMINATE AT
 3465  CLOSING.
 3466  
 3467  A contract that does not conform to the requirements of this
 3468  paragraph is voidable at the option of the purchaser before
 3469  prior to closing.
 3470         (2) NONDEVELOPER DISCLOSURE.—
 3471         (c) Each contract entered into after July 1, 1992, for the
 3472  resale of an interest in a cooperative shall contain in
 3473  conspicuous type either:
 3474         1. A clause which states: THE BUYER HEREBY ACKNOWLEDGES
 3475  THAT BUYER HAS BEEN PROVIDED A CURRENT COPY OF THE ARTICLES OF
 3476  INCORPORATION OF THE ASSOCIATION, BYLAWS, RULES OF THE
 3477  ASSOCIATION, AND THE QUESTION AND ANSWER SHEET MORE THAN 15 3
 3478  DAYS, EXCLUDING SATURDAYS, SUNDAYS, AND LEGAL HOLIDAYS, BEFORE
 3479  PRIOR TO EXECUTION OF THIS CONTRACT; or
 3480         2. A clause which states: THIS AGREEMENT IS VOIDABLE BY
 3481  BUYER BY DELIVERING WRITTEN NOTICE OF THE BUYER’S INTENTION TO
 3482  CANCEL WITHIN 15 3 DAYS, EXCLUDING SATURDAYS, SUNDAYS, AND LEGAL
 3483  HOLIDAYS, AFTER THE DATE OF EXECUTION OF THIS AGREEMENT BY THE
 3484  BUYER AND RECEIPT BY BUYER OF A CURRENT COPY OF THE ARTICLES OF
 3485  INCORPORATION, BYLAWS, AND RULES OF THE ASSOCIATION, AND
 3486  QUESTION AND ANSWER SHEET, IF SO REQUESTED IN WRITING. ANY
 3487  PURPORTED WAIVER OF THESE VOIDABILITY RIGHTS SHALL BE OF NO
 3488  EFFECT. BUYER MAY EXTEND THE TIME FOR CLOSING FOR A PERIOD OF
 3489  NOT MORE THAN 15 3 DAYS, EXCLUDING SATURDAYS, SUNDAYS, AND LEGAL
 3490  HOLIDAYS, AFTER THE BUYER RECEIVES THE ARTICLES OF
 3491  INCORPORATION, BYLAWS, RULES, AND QUESTION AND ANSWER SHEET, IF
 3492  REQUESTED IN WRITING. BUYER’S RIGHT TO VOID THIS AGREEMENT SHALL
 3493  TERMINATE AT CLOSING.
 3494  
 3495  A contract that does not conform to the requirements of this
 3496  paragraph is voidable at the option of the purchaser before
 3497  prior to closing.
 3498         (d) If the association is required to have completed a
 3499  milestone inspection as described in s. 553.899, a turnover
 3500  inspection report for a turnover inspection performed on or
 3501  after July 1, 2023, or a structural integrity reserve study, and
 3502  the association has not completed the milestone inspection, the
 3503  turnover inspection report, or the structural integrity reserve
 3504  study, each contract entered into after December 31, 2024, for
 3505  the sale of a residential unit shall contain in conspicuous type
 3506  a statement indicating that the association is required to have
 3507  a milestone inspection, a turnover inspection report, or a
 3508  structural integrity reserve study and has not completed such
 3509  inspection, report, or study, as appropriate. If the association
 3510  is not required to have a milestone inspection as described in
 3511  s. 553.899 or a structural integrity reserve study, each
 3512  contract entered into after December 31, 2024, for the sale of a
 3513  residential unit shall contain in conspicuous type a statement
 3514  indicating that the association is not required to have a
 3515  milestone inspection or a structural integrity reserve study, as
 3516  appropriate. If the association has completed a milestone
 3517  inspection as described in s. 553.899, a turnover inspection
 3518  report for a turnover inspection performed on or after July 1,
 3519  2023, or a structural integrity reserve study, each contract
 3520  entered into after December 31, 2024, for the resale of a
 3521  residential unit shall contain in conspicuous type:
 3522         1. A clause which states: THE BUYER HEREBY ACKNOWLEDGES
 3523  THAT BUYER HAS BEEN PROVIDED A CURRENT COPY OF THE INSPECTOR
 3524  PREPARED SUMMARY OF THE MILESTONE INSPECTION REPORT AS DESCRIBED
 3525  IN SECTION 553.899, FLORIDA STATUTES, IF APPLICABLE; A COPY OF
 3526  THE TURNOVER INSPECTION REPORT DESCRIBED IN SECTION
 3527  719.301(4)(p) AND (q), FLORIDA STATUTES, IF APPLICABLE; AND A
 3528  COPY OF THE ASSOCIATION’S MOST RECENT STRUCTURAL INTEGRITY
 3529  RESERVE STUDY DESCRIBED IN SECTIONS 719.103(24) AND
 3530  719.106(1)(k), FLORIDA STATUTES, IF APPLICABLE, MORE THAN 15 3
 3531  DAYS, EXCLUDING SATURDAYS, SUNDAYS, AND LEGAL HOLIDAYS, BEFORE
 3532  PRIOR TO EXECUTION OF THIS CONTRACT; and
 3533         2. A clause which states: THIS AGREEMENT IS VOIDABLE BY
 3534  BUYER BY DELIVERING WRITTEN NOTICE OF THE BUYER’S INTENTION TO
 3535  CANCEL WITHIN 15 3 DAYS, EXCLUDING SATURDAYS, SUNDAYS, AND LEGAL
 3536  HOLIDAYS, AFTER THE DATE OF EXECUTION OF THIS AGREEMENT BY THE
 3537  BUYER AND RECEIPT BY BUYER OF A CURRENT COPY OF THE INSPECTOR
 3538  PREPARED SUMMARY OF THE MILESTONE INSPECTION REPORT AS DESCRIBED
 3539  IN SECTION 553.899, FLORIDA STATUTES, IF APPLICABLE; A COPY OF
 3540  THE TURNOVER INSPECTION REPORT DESCRIBED IN SECTION
 3541  719.301(4)(p) AND (q), FLORIDA STATUTES, IF APPLICABLE; AND A
 3542  COPY OF THE ASSOCIATION’S MOST RECENT STRUCTURAL INTEGRITY
 3543  RESERVE STUDY DESCRIBED IN SECTIONS 719.103(24) AND
 3544  719.106(1)(k), FLORIDA STATUTES, IF APPLICABLE. ANY PURPORTED
 3545  WAIVER OF THESE VOIDABILITY RIGHTS SHALL BE OF NO EFFECT. BUYER
 3546  MAY EXTEND THE TIME FOR CLOSING FOR A PERIOD OF NOT MORE THAN 15
 3547  3 DAYS, EXCLUDING SATURDAYS, SUNDAYS, AND LEGAL HOLIDAYS, AFTER
 3548  THE BUYER RECEIVES A CURRENT COPY OF THE INSPECTOR-PREPARED
 3549  SUMMARY OF THE MILESTONE INSPECTION REPORT AS DESCRIBED IN
 3550  SECTION 553.899, FLORIDA STATUTES; A COPY OF THE TURNOVER
 3551  INSPECTION REPORT DESCRIBED IN SECTION 719.301(4)(p) AND (q),
 3552  FLORIDA STATUTES; OR A COPY OF THE ASSOCIATION’S MOST RECENT
 3553  STRUCTURAL INTEGRITY RESERVE STUDY DESCRIBED IN SECTIONS
 3554  719.103(24) AND 719.106(1)(k), FLORIDA STATUTES, IF REQUESTED IN
 3555  WRITING. BUYER’S RIGHT TO VOID THIS AGREEMENT SHALL TERMINATE AT
 3556  CLOSING.
 3557  
 3558  A contract that does not conform to the requirements of this
 3559  paragraph is voidable at the option of the purchaser before
 3560  prior to closing.
 3561         Section 15. Subsection (3) of section 914.21, Florida
 3562  Statutes, is amended to read:
 3563         914.21 Definitions.—As used in ss. 914.22-914.24, the term:
 3564         (3) “Official investigation” means any investigation
 3565  instituted by a law enforcement agency or prosecuting officer of
 3566  the state or a political subdivision of the state or the
 3567  Commission on Ethics or the Division of Florida Condominiums,
 3568  Timeshares, and Mobile Homes of the Department of Business and
 3569  Professional Regulation.
 3570         Section 16. For the 2025-2026 fiscal year, the recurring
 3571  sum of $150,000 and nonrecurring sum of $100,000 is appropriated
 3572  from the Professional Regulation Trust Fund to the Florida
 3573  Building Commission to contract with the University of Florida
 3574  to implement s. 553.899(3)(f), Florida Statutes, as amended by
 3575  this act. The unexpended balance of nonrecurring funds provided
 3576  by this section shall revert and is appropriated for the same
 3577  purpose for the 2026-2027 fiscal year.
 3578         Section 17. For the purpose of incorporating the amendment
 3579  made by this act to section 718.111, Florida Statutes, in a
 3580  reference thereto, paragraph (e) of subsection (3) of section
 3581  721.13, Florida Statutes, is reenacted to read:
 3582         721.13 Management.—
 3583         (3) The duties of the managing entity include, but are not
 3584  limited to:
 3585         (e) Arranging for an annual audit of the financial
 3586  statements of the timeshare plan by a certified public
 3587  accountant licensed by the Board of Accountancy of the
 3588  Department of Business and Professional Regulation, in
 3589  accordance with generally accepted auditing standards as defined
 3590  by the rules of the Board of Accountancy of the Department of
 3591  Business and Professional Regulation. The financial statements
 3592  required by this section must be prepared on an accrual basis
 3593  using fund accounting, and must be presented in accordance with
 3594  generally accepted accounting principles. A copy of the audited
 3595  financial statements must be filed with the division for review
 3596  and forwarded to the board of directors and officers of the
 3597  owners’ association, if one exists, no later than 5 calendar
 3598  months after the end of the timeshare plan’s fiscal year. If no
 3599  owners’ association exists, each purchaser must be notified, no
 3600  later than 5 months after the end of the timeshare plan’s fiscal
 3601  year, that a copy of the audited financial statements is
 3602  available upon request to the managing entity. Notwithstanding
 3603  any requirement of s. 718.111(13) or s. 719.104(4), the audited
 3604  financial statements required by this section are the only
 3605  annual financial reporting requirements for timeshare
 3606  condominiums or timeshare cooperatives.
 3607         Section 18. For the purpose of incorporating the amendment
 3608  made by this act to section 718.112, Florida Statutes, in
 3609  references thereto, paragraph (a) of subsection (7) and
 3610  paragraph (c) of subsection (21) of section 718.504, Florida
 3611  Statutes, are reenacted to read:
 3612         718.504 Prospectus or offering circular.—Every developer of
 3613  a residential condominium which contains more than 20
 3614  residential units, or which is part of a group of residential
 3615  condominiums which will be served by property to be used in
 3616  common by unit owners of more than 20 residential units, shall
 3617  prepare a prospectus or offering circular and file it with the
 3618  Division of Florida Condominiums, Timeshares, and Mobile Homes
 3619  prior to entering into an enforceable contract of purchase and
 3620  sale of any unit or lease of a unit for more than 5 years and
 3621  shall furnish a copy of the prospectus or offering circular to
 3622  each buyer. In addition to the prospectus or offering circular,
 3623  each buyer shall be furnished a separate page entitled
 3624  “Frequently Asked Questions and Answers,” which shall be in
 3625  accordance with a format approved by the division and a copy of
 3626  the financial information required by s. 718.111. This page
 3627  shall, in readable language, inform prospective purchasers
 3628  regarding their voting rights and unit use restrictions,
 3629  including restrictions on the leasing of a unit; shall indicate
 3630  whether and in what amount the unit owners or the association is
 3631  obligated to pay rent or land use fees for recreational or other
 3632  commonly used facilities; shall contain a statement identifying
 3633  that amount of assessment which, pursuant to the budget, would
 3634  be levied upon each unit type, exclusive of any special
 3635  assessments, and which shall further identify the basis upon
 3636  which assessments are levied, whether monthly, quarterly, or
 3637  otherwise; shall state and identify any court cases in which the
 3638  association is currently a party of record in which the
 3639  association may face liability in excess of $100,000; shall
 3640  state whether the condominium is created within a portion of a
 3641  building or within a multiple parcel building; and which shall
 3642  further state whether membership in a recreational facilities
 3643  association is mandatory, and if so, shall identify the fees
 3644  currently charged per unit type. The division shall by rule
 3645  require such other disclosure as in its judgment will assist
 3646  prospective purchasers. The prospectus or offering circular may
 3647  include more than one condominium, although not all such units
 3648  are being offered for sale as of the date of the prospectus or
 3649  offering circular. The prospectus or offering circular must
 3650  contain the following information:
 3651         (7) A description of the recreational and other facilities
 3652  that will be used in common with other condominiums, community
 3653  associations, or planned developments which require the payment
 3654  of the maintenance and expenses of such facilities, directly or
 3655  indirectly, by the unit owners. The description shall include,
 3656  but not be limited to, the following:
 3657         (a) Each building and facility committed to be built and a
 3658  summary description of the structural integrity of each building
 3659  for which reserves are required pursuant to s. 718.112(2)(g).
 3660  
 3661  Descriptions shall include location, areas, capacities, numbers,
 3662  volumes, or sizes and may be stated as approximations or
 3663  minimums.
 3664         (21) An estimated operating budget for the condominium and
 3665  the association, and a schedule of the unit owner’s expenses
 3666  shall be attached as an exhibit and shall contain the following
 3667  information:
 3668         (c) The estimated items of expenses of the condominium and
 3669  the association, except as excluded under paragraph (b),
 3670  including, but not limited to, the following items, which shall
 3671  be stated as an association expense collectible by assessments
 3672  or as unit owners’ expenses payable to persons other than the
 3673  association:
 3674         1. Expenses for the association and condominium:
 3675         a. Administration of the association.
 3676         b. Management fees.
 3677         c. Maintenance.
 3678         d. Rent for recreational and other commonly used
 3679  facilities.
 3680         e. Taxes upon association property.
 3681         f. Taxes upon leased areas.
 3682         g. Insurance.
 3683         h. Security provisions.
 3684         i. Other expenses.
 3685         j. Operating capital.
 3686         k. Reserves for all applicable items referenced in s.
 3687  718.112(2)(g).
 3688         l. Fees payable to the division.
 3689         2. Expenses for a unit owner:
 3690         a. Rent for the unit, if subject to a lease.
 3691         b. Rent payable by the unit owner directly to the lessor or
 3692  agent under any recreational lease or lease for the use of
 3693  commonly used facilities, which use and payment is a mandatory
 3694  condition of ownership and is not included in the common expense
 3695  or assessments for common maintenance paid by the unit owners to
 3696  the association.
 3697         Section 19. For the purpose of incorporating the amendment
 3698  made by this act to section 718.112, Florida Statutes, in
 3699  references thereto, paragraph (d) of subsection (1) of section
 3700  718.618, Florida Statutes, is reenacted to read:
 3701         718.618 Converter reserve accounts; warranties.—
 3702         (1) When existing improvements are converted to ownership
 3703  as a residential condominium, the developer shall establish
 3704  converter reserve accounts for capital expenditures and deferred
 3705  maintenance, or give warranties as provided by subsection (6),
 3706  or post a surety bond as provided by subsection (7). The
 3707  developer shall fund the converter reserve accounts in amounts
 3708  calculated as follows:
 3709         (d) In addition to establishing the reserve accounts
 3710  specified above, the developer shall establish those other
 3711  reserve accounts required by s. 718.112(2)(f), and shall fund
 3712  those accounts in accordance with the formula provided therein.
 3713  The vote to waive or reduce the funding or reserves required by
 3714  s. 718.112(2)(f) does not affect or negate the obligations
 3715  arising under this section.
 3716         Section 20. For the purpose of incorporating the amendment
 3717  made by this act to sections 718.111, 718.112, and 718.503,
 3718  Florida Statutes, in references thereto, subsections (1) and (3)
 3719  of section 718.706, Florida Statutes, are reenacted to read:
 3720         718.706 Specific provisions pertaining to offering of units
 3721  by a bulk assignee or bulk buyer.—
 3722         (1) Before offering more than seven units in a single
 3723  condominium for sale or for lease for a term exceeding 5 years,
 3724  a bulk assignee or a bulk buyer must file the following
 3725  documents with the division and provide such documents to a
 3726  prospective purchaser or tenant:
 3727         (a) An updated prospectus or offering circular, or a
 3728  supplement to the prospectus or offering circular, filed by the
 3729  original developer prepared in accordance with s. 718.504, which
 3730  must include the form of contract for sale and for lease in
 3731  compliance with s. 718.503(2);
 3732         (b) An updated Frequently Asked Questions and Answers
 3733  sheet;
 3734         (c) The executed escrow agreement if required under s.
 3735  718.202; and
 3736         (d) The financial information required by s. 718.111(13).
 3737  However, if a financial information report did not exist before
 3738  the acquisition of title by the bulk assignee or bulk buyer, and
 3739  if accounting records that permit preparation of the required
 3740  financial information report for that period cannot be obtained
 3741  despite good faith efforts by the bulk assignee or the bulk
 3742  buyer, the bulk assignee or bulk buyer is excused from the
 3743  requirement of this paragraph. However, the bulk assignee or
 3744  bulk buyer must include in the purchase contract the following
 3745  statement in conspicuous type:
 3746  
 3747         ALL OR A PORTION OF THE FINANCIAL INFORMATION REPORT
 3748         REQUIRED UNDER S. 718.111(13) FOR THE TIME PERIOD
 3749         BEFORE THE SELLER’S ACQUISITION OF THE UNIT IS NOT
 3750         AVAILABLE OR CANNOT BE OBTAINED DESPITE THE GOOD FAITH
 3751         EFFORTS OF THE SELLER.
 3752  
 3753         (3) A bulk assignee, while in control of the board of
 3754  administration of the association, may not authorize, on behalf
 3755  of the association:
 3756         (a) The waiver of reserves or the reduction of funding of
 3757  the reserves pursuant to s. 718.112(2)(f)2., unless approved by
 3758  a majority of the voting interests not controlled by the
 3759  developer, bulk assignee, and bulk buyer; or
 3760         (b) The use of reserve expenditures for other purposes
 3761  pursuant to s. 718.112(2)(f)3., unless approved by a majority of
 3762  the voting interests not controlled by the developer, bulk
 3763  assignee, and bulk buyer.
 3764         Section 21. For the purpose of incorporating the amendment
 3765  made by this act to section 719.106, Florida Statutes, in a
 3766  reference thereto, subsection (24) of section 719.103, Florida
 3767  Statutes, is reenacted to read:
 3768         719.103 Definitions.—As used in this chapter:
 3769         (24) “Structural integrity reserve study” means a study of
 3770  the reserve funds required for future major repairs and
 3771  replacement of the cooperative property performed as required
 3772  under s. 719.106(1)(k).
 3773         Section 22. For the purpose of incorporating the amendment
 3774  made by this act to section 719.106, Florida Statutes, in
 3775  references thereto, paragraph (a) of subsection (7) and
 3776  paragraph (c) of subsection (20) of section 719.504, Florida
 3777  Statutes, are reenacted to read:
 3778         719.504 Prospectus or offering circular.—Every developer of
 3779  a residential cooperative which contains more than 20
 3780  residential units, or which is part of a group of residential
 3781  cooperatives which will be served by property to be used in
 3782  common by unit owners of more than 20 residential units, shall
 3783  prepare a prospectus or offering circular and file it with the
 3784  Division of Florida Condominiums, Timeshares, and Mobile Homes
 3785  prior to entering into an enforceable contract of purchase and
 3786  sale of any unit or lease of a unit for more than 5 years and
 3787  shall furnish a copy of the prospectus or offering circular to
 3788  each buyer. In addition to the prospectus or offering circular,
 3789  each buyer shall be furnished a separate page entitled
 3790  “Frequently Asked Questions and Answers,” which must be in
 3791  accordance with a format approved by the division. This page
 3792  must, in readable language: inform prospective purchasers
 3793  regarding their voting rights and unit use restrictions,
 3794  including restrictions on the leasing of a unit; indicate
 3795  whether and in what amount the unit owners or the association is
 3796  obligated to pay rent or land use fees for recreational or other
 3797  commonly used facilities; contain a statement identifying that
 3798  amount of assessment which, pursuant to the budget, would be
 3799  levied upon each unit type, exclusive of any special
 3800  assessments, and which identifies the basis upon which
 3801  assessments are levied, whether monthly, quarterly, or
 3802  otherwise; state and identify any court cases in which the
 3803  association is currently a party of record in which the
 3804  association may face liability in excess of $100,000; and state
 3805  whether membership in a recreational facilities association is
 3806  mandatory and, if so, identify the fees currently charged per
 3807  unit type. The division shall by rule require such other
 3808  disclosure as in its judgment will assist prospective
 3809  purchasers. The prospectus or offering circular may include more
 3810  than one cooperative, although not all such units are being
 3811  offered for sale as of the date of the prospectus or offering
 3812  circular. The prospectus or offering circular must contain the
 3813  following information:
 3814         (7) A description of the recreational and other facilities
 3815  that will be used in common with other cooperatives, community
 3816  associations, or planned developments which require the payment
 3817  of the maintenance and expenses of such facilities, directly or
 3818  indirectly, by the unit owners. The description shall include,
 3819  but not be limited to, the following:
 3820         (a) Each building and facility committed to be built and a
 3821  summary description of the structural integrity of each building
 3822  for which reserves are required pursuant to s. 719.106(1)(k).
 3823  
 3824  Descriptions shall include location, areas, capacities, numbers,
 3825  volumes, or sizes and may be stated as approximations or
 3826  minimums.
 3827         (20) An estimated operating budget for the cooperative and
 3828  the association, and a schedule of the unit owner’s expenses
 3829  shall be attached as an exhibit and shall contain the following
 3830  information:
 3831         (c) The estimated items of expenses of the cooperative and
 3832  the association, except as excluded under paragraph (b),
 3833  including, but not limited to, the following items, which shall
 3834  be stated as an association expense collectible by assessments
 3835  or as unit owners’ expenses payable to persons other than the
 3836  association:
 3837         1. Expenses for the association and cooperative:
 3838         a. Administration of the association.
 3839         b. Management fees.
 3840         c. Maintenance.
 3841         d. Rent for recreational and other commonly used areas.
 3842         e. Taxes upon association property.
 3843         f. Taxes upon leased areas.
 3844         g. Insurance.
 3845         h. Security provisions.
 3846         i. Other expenses.
 3847         j. Operating capital.
 3848         k. Reserves for all applicable items referenced in s.
 3849  719.106(1)(k).
 3850         l. Fee payable to the division.
 3851         2. Expenses for a unit owner:
 3852         a. Rent for the unit, if subject to a lease.
 3853         b. Rent payable by the unit owner directly to the lessor or
 3854  agent under any recreational lease or lease for the use of
 3855  commonly used areas, which use and payment are a mandatory
 3856  condition of ownership and are not included in the common
 3857  expense or assessments for common maintenance paid by the unit
 3858  owners to the association.
 3859         Section 23. Except as otherwise provided in this act, this
 3860  act shall take effect July 1, 2025.