Florida Senate - 2025 CS for CS for SB 1742
By the Appropriations Committee on Agriculture, Environment, and
General Government; the Committee on Regulated Industries; and
Senators Bradley and Pizzo
601-03618-25 20251742c2
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 being an employee, a partner, an
7 officer, a director, or a trustee of, a community
8 association management firm for a specified timeframe;
9 requiring a licensee to create and maintain an online
10 licensure account with the Department of Business and
11 Professional Regulation; requiring a community
12 association manager to identify on his or her online
13 licensure account certain information; requiring a
14 licensee to provide specific information on his or her
15 online licensure account; requiring that such
16 information be updated within a specified timeframe;
17 requiring a community association management firm to
18 identify on its online licensure account the community
19 association managers that it employs to provide
20 community association management services; requiring
21 the department to give written notice to the community
22 association management firm and the community
23 association if the community association manager has
24 his or her license suspended or revoked; amending s.
25 468.4334, F.S.; prohibiting a community association
26 manager or a community association management firm
27 from knowingly performing any act directed by the
28 community association if such act violates any state
29 or federal law; revising the contractual obligations a
30 community association manager or a community
31 association management firm has with the association
32 board; requiring that such contract include a certain
33 statement, if applicable to the type of management
34 services provided in the contract; prohibiting such
35 contracts from waiving or limiting certain
36 professional practice standards; requiring a community
37 association to include specified information on its
38 website or mobile application, if such association is
39 required to maintain official records on a website or
40 an application; conforming provisions to changes made
41 by the act; amending s. 553.899, F.S.; requiring the
42 local enforcement agency responsible for milestone
43 inspections to provide to the Department of Business
44 and Professional Regulation certain information in an
45 electronic format; specifying the information to be
46 provided to the department; requiring the department
47 to contract with the University of Florida for the
48 creation of a report that provides certain information
49 on milestone inspections during a specified timeframe;
50 requiring a local enforcement agency to provide the
51 university with certain information; authorizing the
52 university to request any additional information from
53 a local enforcement agency required to complete the
54 report; requiring the university to compile the report
55 and the department to transmit the report to the
56 Governor and the Legislature; requiring, rather than
57 authorizing, the board of county commissioners or a
58 municipal governing body to adopt a specified
59 ordinance; requiring specified professionals who bid
60 to perform a structural integrity reserve study to
61 disclose to the association in writing their intent to
62 bid on services related to any maintenance, repair, or
63 replacement that may be recommended by the structural
64 integrity reserve study; prohibiting such
65 professionals from having any interest in or being
66 related to any person having any interest in the firm
67 or entity providing the association’s structural
68 integrity reserve study unless such relationship is
69 disclosed in writing; defining the term “relative”;
70 providing that a contract for services is voidable and
71 terminates upon the association filing a written
72 notice terminating such a contract if such
73 professionals fail to provide a written disclosure of
74 such relationship with the firm conducting the
75 structural integrity reserve study; providing that
76 such professionals may be subject to discipline for
77 failure to provide such written disclosure; amending
78 s. 718.103, F.S.; revising the definition of the term
79 “alternative funding method”; defining the term “video
80 conference”; amending s. 718.111, F.S.; requiring a
81 community association manager or a community
82 association management firm that contracts with a
83 community association to possess specific licenses;
84 providing that all board members or officers of a
85 community association that contracts with a community
86 association manager or a community association
87 management firm have a duty to ensure that the
88 community association manager or community association
89 management firm is properly licensed before entering
90 into a contract; authorizing a community association
91 to terminate a contract with a community association
92 manager or a community association management firm if
93 the manager’s or management firm’s license is
94 suspended or revoked during the term of the contract;
95 providing that a community association has no further
96 contractual obligations to a community association
97 management firm if such firm has its license suspended
98 or revoked, effective upon the date of the license
99 suspension or revocation; revising which items
100 constitute the official records of the association;
101 requiring that certain documents be posted on certain
102 associations’ websites or made available for download
103 through an application on a mobile device within a
104 specified timeframe; revising which documents must be
105 posted in digital format on the association’s website
106 or application; revising the timeframe in which the
107 association must deliver a copy of the most recent
108 financial report or a notice that a copy of the most
109 recent financial report; revising the methods of
110 delivery for a copy of the most recent association
111 financial report to include electronic delivery via
112 the Internet; requiring that an officer or a director
113 execute an affidavit as evidence of compliance with
114 the delivery requirement; revising how financial
115 reports are prepared; requiring an association board
116 to use best efforts to make prudent investment
117 decisions in fulfilling its duty to manage operating
118 and reserve funds of the association; authorizing an
119 association, including a multicondominium association,
120 to invest reserve funds in specified financial
121 institutions; authorizing such associations to place
122 reserve funds in other investments upon a majority
123 vote of the voting interests of the association;
124 providing restrictions; prohibiting any funds not
125 identified as reserve funds from being used for
126 investments; requiring a board to create an investment
127 committee composed of a specified minimum number of
128 board members; requiring the board to adopt rules;
129 requiring that all meetings of the investment
130 committee be recorded and made part of the official
131 records of the association; requiring that the
132 investment policy statement developed pursuant to
133 certain provisions address specified issues; requiring
134 the investment committee to recommend investment
135 advisers to the board; requiring the board to select
136 one of the recommended investment advisers to provide
137 services to the association; requiring that such
138 advisers be registered; prohibiting an investment
139 adviser from being related to any board member,
140 community management company, reserve study provider,
141 or co-owner of a unit with a board member or
142 investment committee member; requiring investment
143 advisers to comply with the prudent investor rule;
144 requiring an adviser to act as a fiduciary to the
145 association; providing that the investment and
146 fiduciary standards required by the act take
147 precedence over any conflicting law; requiring the
148 investment committee to recommend a replacement
149 adviser if the committee determines that an investment
150 adviser is not meeting requirements; requiring the
151 association to provide the investment adviser with
152 specified financial information at least once each
153 calendar year, or sooner if a substantial financial
154 obligation of the association becomes known to the
155 board; requiring the investment adviser to annually
156 review such financial information and provide the
157 association with a portfolio allocation model that is
158 suitably structured and prudently designed to match
159 projected annual reserve fund requirements and
160 liability, assets, and liquidity requirements;
161 requiring the investment adviser to prepare a funding
162 projection for each reserve component, including any
163 of the component’s redundancies; requiring that a
164 specified minimum timeframe of projected reserves in
165 cash or cash equivalents be available to the
166 association; authorizing a portfolio managed by an
167 investment adviser to contain any type of investment
168 necessary to meet the objectives in the investment
169 policy statement; providing exceptions; requiring that
170 any funds invested by the investment adviser be held
171 in third-party custodial accounts that are subject to
172 insurance coverage by the Securities Investor
173 Protection Corporation in an amount equal to or
174 greater than the invested amount; authorizing the
175 investment adviser to withdraw investment fees,
176 expenses, and commissions from invested funds;
177 requiring the investment adviser to annually provide
178 the association with a written certification of
179 compliance with certain provisions and provide the
180 association with a list of certain stocks, securities,
181 and other obligations; requiring the investment
182 adviser to submit monthly, quarterly, and annual
183 reports to the association, prepared in accordance
184 with established financial industry standards;
185 requiring that any principal, earnings, or interest
186 managed be available to the association at no cost
187 within a specified timeframe after the association’s
188 written or electronic request; requiring that
189 unallocated income earned on reserve fund investments
190 be spent only on specified expenditures; amending s.
191 718.112, F.S.; authorizing an association board
192 meeting to be conducted in person or by video
193 conference; requiring the Division of Florida
194 Condominiums, Timeshares, and Mobile Homes to adopt
195 rules; requiring that notice for board meetings
196 conducted via video conference contain specific
197 information; requiring that such meetings be recorded
198 and maintained as an official record of the
199 association; revising how notice may be sent to unit
200 owners; revising the distance from the condominium
201 property within which a unit owner meeting must be
202 held; authorizing a unit owner to vote electronically
203 if the unit owner meeting is conducted via video
204 conference; authorizing unit owner meetings to be
205 conducted in person or via video conference;
206 specifying what constitutes a quorum for meetings held
207 via video conference; requiring that the location of
208 the meeting be provided in the association bylaws or
209 within a specified distance from the condominium
210 property if the bylaws are silent; requiring that
211 meetings held via video conference be recorded and be
212 maintained as an official record of the association;
213 requiring the division to adopt rules; revising the
214 method of serving notices of unit owner meetings;
215 authorizing budget meetings to be conducted via video
216 conference; requiring the division to adopt rules;
217 requiring that a sound transmitting device be used at
218 such meetings for a specified purpose; revising a
219 provision that a board proposing a budget that
220 requires a certain special assessment against unit
221 owners to simultaneously propose a substitute budget
222 that meets certain requirements, rather than conduct a
223 special meeting of the unit owners to consider a
224 substitute budget after the adoption of the annual
225 budget; requiring unit owners, rather than authorizing
226 them, to consider a substitute budget; authorizing the
227 annual budget initially proposed to be adopted by the
228 board; revising the criteria used in determining
229 whether assessments exceed the specified percentage of
230 assessments of the previous fiscal year; revising the
231 threshold for deferred maintenance expenses or
232 replacements in reserve accounts; authorizing the
233 members to vote to waive the maintenance of reserves
234 recommended in the most recent structural integrity
235 reserve study under certain circumstances; revising
236 the provision that any association, rather than an
237 association operating a multicondominium, may
238 determine to provide no reserves or less reserves than
239 required if an alternative funding method is used by
240 the association; deleting the requirement that the
241 division approve the funding method; providing that
242 specified reserves may be funded by regular
243 assessments, special assessments, lines of credit, or
244 loans under certain circumstances; authorizing a unit
245 owner-controlled association that is required to have
246 a structural reserve study to obtain a line of credit
247 or a loan to fund capital expenses required by a
248 milestone inspection or a structural integrity reserve
249 study; requiring that such line of credit or loan be
250 approved by a majority of the total voting interests
251 of the association; requiring that such line of credit
252 or loan be sufficient to fund the cumulative amount of
253 any previously waived or unfunded portions of the
254 reserve funding amount and the most recent structural
255 integrity reserve study; requiring that funding from
256 the line of credit or loan be immediately available
257 for access by the board for a specified purpose;
258 requiring that such lines of credit or loans be
259 included in the association’s financial report;
260 deleting a requirement that the majority of the
261 members must approve of the board pausing
262 contributions to the association’s reserves for a
263 specified purpose; authorizing the board to
264 temporarily pause reserve fund contributions or reduce
265 the amount of reserve funding for a specified purpose
266 for a budget adopted on or before a specified date if
267 the association has completed a milestone inspection
268 within a specified timeframe and such inspection
269 recommended certain repairs; requiring that such
270 temporary pause or reduction be approved by a majority
271 of the total voting interests of the association;
272 providing applicability; requiring associations that
273 have paused or reduced their reserve funding to have a
274 structural integrity reserve study performed before
275 the continuation of reserve contributions for
276 specified purposes; providing that a vote of the
277 members is not required for the board to change the
278 accounting method for reserves to specified accounting
279 methods; revising the items to be included in a
280 structural integrity reserve study; requiring
281 specified design professionals or contractors who bid
282 to perform a structural integrity reserve study to
283 disclose in writing to the association their intent to
284 bid on any services related to the maintenance,
285 repair, or replacement that may be recommended by the
286 structural integrity reserve study; prohibiting such
287 professionals or contractors from having any interest
288 in or being related to any person having any interest
289 in the firm or entity providing the association’s
290 structural integrity reserve study unless such
291 relationship is disclosed in writing; defining the
292 term “relative”; providing that a contract for
293 services is voidable and terminates upon the
294 association filing a written notice terminating such a
295 contract if such professional or contractor fails to
296 provide a written disclosure of such relationship with
297 the firm conducting the structural integrity reserve
298 study; providing that such professional or contractor
299 may be subject to discipline for his or her failure to
300 provide such written disclosure; requiring that a
301 structural integrity reserve study include a
302 recommendation for a reserve funding schedule based on
303 specified criteria; authorizing the study to recommend
304 other types of reserve funding schedules, provided
305 each recommended schedule is sufficient to meet the
306 association’s maintenance obligations; requiring that
307 reserves not required for certain items be separately
308 identified as such in the structural integrity reserve
309 study; requiring the structural integrity reserve
310 study to take into consideration the funding method or
311 methods used by the association to fund its
312 maintenance and reserve funding obligations through
313 regular assessments, special assessments, loans, or
314 lines of credit; requiring a structural integrity
315 reserve study that has been performed before the
316 approval of a special assessment or the securing of a
317 line of credit or a loan to be updated to reflect
318 certain information regarding the reserve funding
319 schedule; authorizing a structural integrity reserve
320 study to be updated to reflect changes in the useful
321 life of the reserve items after such items are
322 repaired or replaced, and the effect of such repair or
323 replacement will have on the reserve funding schedule;
324 requiring an association to obtain an updated
325 structural integrity reserve study before adopting any
326 budget in which the reserve funding from regular
327 assessments, special assessments, loans, or lines of
328 credit do not align with the funding plan of the most
329 recent version of the structural integrity reserve
330 study; authorizing an association to delay a required
331 structural integrity reserve study for a specified
332 timeframe if it has completed a milestone inspection
333 or similar inspection, for a specified purpose;
334 requiring an officer or director of an association to
335 sign an affidavit acknowledging receipt of the
336 completed structural integrity reserve study;
337 requiring the division to adopt rules for the form for
338 the structural integrity reserve study in coordination
339 with the Florida Building Commission; making technical
340 changes; amending s. 718.501, F.S.; revising the
341 duties of the Division of Florida Condominiums,
342 Timeshares, and Mobile Homes regarding investigation
343 of complaints; requiring condominium associations to
344 create and maintain an online account with the
345 division; requiring board members to maintain accurate
346 contact information on file with the division;
347 requiring the division to adopt rules; requiring all
348 condominium associations to create and maintain an
349 online account with the division; requiring all
350 condominium associations to provide specified
351 information to the division by a specified date;
352 requiring that such information be updated within a
353 specified timeframe; requiring the division to adopt
354 rules; authorizing the division to require condominium
355 associations to provide information to the division;
356 specifying the information to be provided to the
357 division; amending s. 718.503, F.S.; revising the
358 disclosures that must be included in a contract for
359 the sale and resale of a residential unit; amending s.
360 8 of chapter 2024-244, Laws of Florida, as amended;
361 revising the documents required to be posted on
362 certain associations’ websites or be made available
363 through download using an application on a mobile
364 device; amending s. 31 of chapter 2024-244, Laws of
365 Florida; revising applicability; amending s. 719.104,
366 F.S.; requiring a board to use best efforts to make
367 prudent investment decisions in fulfilling its duty to
368 manage operating and reserve funds of the cooperative
369 association; authorizing an association to invest
370 reserve funds in specified financial institutions;
371 authorizing such associations to place reserve funds
372 in other investments upon a majority vote of the
373 voting interests of the association; providing
374 restrictions; prohibiting any funds not identified as
375 reserve funds from being used for investments;
376 providing applicability; requiring a board to create
377 an investment committee composed of a specified
378 minimum number of board members; requiring the board
379 to adopt rules; requiring that all meetings of the
380 investment committee be recorded and made part of the
381 official records of the association; requiring that
382 the investment policy statement developed pursuant to
383 certain provisions address specified issues; requiring
384 the investment committee to recommend investment
385 advisers to the board; requiring the board to select
386 one of the recommended investment advisers to provide
387 services to the association; requiring such advisers
388 to be registered; prohibiting an investment adviser
389 from being related to any board member, community
390 management company, reserve study provider, or co
391 owner of a unit with a board member or investment
392 committee member; requiring investment advisers to
393 comply with the prudent investor rule; requiring an
394 adviser to act as a fiduciary to the association;
395 providing that the investment and fiduciary standards
396 required by the act take precedence over any
397 conflicting law; requiring the investment committee to
398 recommend a replacement adviser if the committee
399 determines that an investment adviser is not meeting
400 requirements; requiring the association to provide the
401 investment adviser with specified financial
402 information at least once each calendar year, or
403 sooner if a substantial financial obligation of the
404 association becomes known to the board; requiring the
405 investment adviser to annually review such financial
406 information and provide the association with a
407 portfolio allocation model that is suitably structured
408 and prudently designed to match projected annual
409 reserve fund requirements and liability, assets, and
410 liquidity requirements; requiring the investment
411 adviser to prepare a funding projection for each
412 reserve component, including any of the component’s
413 redundancies; requiring that a specified minimum
414 timeframe of projected reserves in cash or cash
415 equivalents be available to the association;
416 authorizing a portfolio managed by an investment
417 adviser to contain any type of investment necessary to
418 meet the objectives in the investment policy
419 statement; providing exceptions; requiring that any
420 funds invested by the investment adviser be held in
421 third-party custodial accounts that are subject to
422 insurance coverage by the Securities Investor
423 Protection Corporation in an amount equal to or
424 greater than the invested amount; authorizing the
425 investment adviser to withdraw investment fees,
426 expenses, and commissions from invested funds;
427 requiring the investment adviser to annually provide
428 the association with a written certification of
429 compliance with certain provisions and provide the
430 association with a list of certain stocks, securities,
431 and other obligations; requiring the investment
432 adviser to submit monthly, quarterly, and annual
433 reports to the association, prepared in accordance
434 with established financial industry standards;
435 requiring that any principal, earnings, or interest
436 managed be available to the association at no cost
437 within a specified timeframe after the association’s
438 written or electronic request; requiring that
439 unallocated income earned on reserve fund investments
440 be spent only on specified expenditures; amending s.
441 719.106, F.S.; revising the deferred maintenance
442 expense or replacement costs threshold that must be in
443 reserve accounts; authorizing the board to pause
444 contributions to its reserves or reduce reserve
445 funding if a local building official determines the
446 entire cooperative building is uninhabitable due to a
447 natural emergency; authorizing any reserve account
448 fund held by the association to be expended to make
449 the cooperative building and its structures habitable,
450 pursuant to the board’s determination; requiring the
451 association to immediately resume contributing funds
452 to its reserves once the local building official
453 determines that the cooperative building is habitable;
454 authorizing certain reserves be funded by regular
455 assessments, special assessments, lines of credit, or
456 loans under certain circumstances; authorizing a unit
457 owner-controlled association to obtain a line of
458 credit or a loan to fund capital expenses required by
459 a milestone inspection or a structural integrity
460 reserve study; requiring that such lines of credit or
461 loans be approved by a majority vote of the total
462 voting interests of the association; requiring that
463 such lines of credit or loans be sufficient to fund
464 the cumulative amount of any previously waived or
465 unfunded portion of the reserve funding amount and
466 most recent structural integrity reserve study;
467 requiring that funding from such lines of credit or
468 loans be immediately available for access by the board
469 for a specified purpose; authorizing the board to
470 temporarily pause reserve fund contributions or reduce
471 the amount of reserve funding for a specified purpose
472 for a budget adopted on or before a specified date if
473 the association has completed a milestone inspection
474 within a specified timeframe; requiring that such
475 temporary pause or reduction be approved by a majority
476 of the total voting interests of the association;
477 providing applicability; requiring associations that
478 have paused or reduced their reserve funding
479 contributions to have a structural integrity reserve
480 study performed before the continuation of reserve
481 contributions for specified purposes; providing that a
482 vote of the members is not required for the board to
483 change the accounting method for reserves to specified
484 accounting methods; requiring specified design
485 professionals or contractors who bid to perform a
486 structural integrity reserve study to disclose in
487 writing to the association their intent to bid on any
488 services related to the maintenance, repair, or
489 replacement that may be recommended by the structural
490 integrity reserve study; prohibiting such
491 professionals or contractors from having any interest
492 in or being related to any person having any interest
493 in the firm or entity providing the association’s
494 structural integrity reserve study unless such
495 relationship is disclosed in writing; defining the
496 term “relative”; providing that a contract for
497 services is voidable and terminates upon the
498 association filing a written notice terminating such a
499 contract if such professional or contractor fails to
500 provide a written disclosure of such relationship with
501 the firm conducting the structural integrity reserve
502 study; providing that such professional or contractor
503 may be subject to discipline for his or her failure to
504 provide such written disclosure; requiring that a
505 structural integrity reserve study include a
506 recommendation for a reserve funding schedule based on
507 specified criteria; authorizing the study to recommend
508 other types of reserve funding schedules, provided
509 each recommended schedule is sufficient to meet the
510 association’s maintenance obligation; requiring that
511 reserves not required for certain items be separately
512 identified as such in the structural integrity reserve
513 study; requiring the structural integrity reserve
514 study to take into consideration the funding method or
515 methods used by the association to fund its
516 maintenance and reserve funding obligations through
517 regular assessments, special assessments, lines of
518 credit, or loans; requiring a structural integrity
519 reserve study that has been performed before the
520 approval of a special assessment or the securing of a
521 line of credit or a loan to be updated to reflect
522 certain information regarding the reserve funding
523 schedule; authorizing a structural integrity reserve
524 study to be updated to reflect changes in the useful
525 life of the reserve items after such items are
526 repaired or replaced, and the effect of such repair or
527 replacement will have on the reserve funding schedule;
528 requiring an association to obtain an updated
529 structural integrity reserve study before adopting any
530 budget in which the reserve funding from regular
531 assessments, special assessments, lines of credit, or
532 loans do not align with the funding plan of the most
533 recent version of the structural integrity reserve
534 study; authorizing an association to delay a required
535 structural integrity reserve study for a specified
536 timeframe if it has completed a milestone inspection
537 or similar inspection, for a specified purpose;
538 requiring an officer or a director of the association
539 to sign an affidavit acknowledging receipt of the
540 completed structural integrity reserve study;
541 requiring the division to adopt by rule the form for
542 the structural integrity reserve study in coordination
543 with the Florida Building Commission; amending s.
544 719.501, F.S.; requiring a cooperative association to
545 create and maintain an online account with the
546 division; requiring board members to maintain accurate
547 contact information on file with the division;
548 requiring the division to adopt rules; authorizing the
549 division to require cooperative associations to
550 provide information to the division no more than once
551 per year; providing an exception; requiring the
552 division to provide associations a specified timeframe
553 to provide any required information; specifying the
554 information the division may request; amending s.
555 719.503, F.S.; revising the disclosures that must be
556 included in a contract for the sale and resale of an
557 interest in a cooperative; amending s. 914.21, F.S.;
558 revising the definition of the term “official
559 investigation”; providing appropriations; reenacting
560 s. 721.13(3)(e), F.S., relating to management, to
561 incorporate the amendment made to s. 718.111, F.S., in
562 a reference thereto; reenacting ss. 718.504(7)(a) and
563 (21)(c) and 718.618(1)(d), F.S., relating to
564 prospectus or offering circulars and converter reserve
565 accounts and warranties, respectively, to incorporate
566 the amendment made to s. 718.112, F.S., in references
567 thereto; reenacting s. 718.706(1) and (3), F.S.,
568 relating to specific provisions pertaining to offering
569 of units by bulk assignees or bulk buyers, to
570 incorporate the amendments made to ss. 718.111,
571 718.112, and 718.503, F.S., in references thereto;
572 reenacting ss. 719.103(24) and 719.504(7)(a) and
573 (20)(c), F.S., relating to definitions and prospectus
574 or offering circulars, respectively, to incorporate
575 the amendment made to s. 719.106, F.S., in references
576 thereto; providing effective dates.
577
578 Be It Enacted by the Legislature of the State of Florida:
579
580 Section 1. Paragraph (h) is added to subsection (2) of
581 section 468.432, Florida Statutes, and subsection (3) is added
582 to that section, to read:
583 468.432 Licensure of community association managers and
584 community association management firms; exceptions.—
585 (2) A community association management firm or other
586 similar organization responsible for the management of more than
587 10 units or a budget of $100,000 or greater shall not engage or
588 hold itself out to the public as being able to engage in the
589 business of community association management in this state
590 unless it is licensed by the department as a community
591 association management firm in accordance with the provisions of
592 this part.
593 (h) A person who has had his or her community association
594 manager license revoked may not have an indirect or direct
595 ownership interest in, or be an employee, a partner, an officer,
596 a director, or a trustee of, a community association management
597 firm during the 10-year period after the effective date of the
598 revocation. Such person is ineligible to reapply for
599 certification or registration under this part for a period of 10
600 years after the effective date of a revocation.
601 (3) A licensee must create and maintain an online licensure
602 account with the department. Each community association manager
603 must identify on his or her online licensure account the
604 community association management firm for which he or she
605 provides management services and identify each community
606 association for which he or she is the designated on-site
607 community association manager. A licensee must update his or her
608 online licensure account with this information within 30 days
609 after any change to the required information. A community
610 association management firm must identify on its online
611 licensure account the community association managers that it
612 employs to provide community association management services. If
613 a community association manager has his or her license suspended
614 or revoked, the department must give written notice of such
615 suspension or revocation to the community association management
616 firm and the community association for which the manager
617 performs community management services.
618 Section 2. Subsections (1) and (3) of section 468.4334,
619 Florida Statutes, are amended to read:
620 468.4334 Professional practice standards; liability;
621 community association manager requirements; return of records
622 after termination of contract.—
623 (1)(a) A community association manager or a community
624 association management firm is deemed to act as agent on behalf
625 of a community association as principal within the scope of
626 authority authorized by a written contract or under this
627 chapter. A community association manager or a community
628 association management firm may not knowingly perform any act
629 directed by the community association if such an act violates
630 any state or federal law. A community association manager and a
631 community association management firm shall discharge duties
632 performed on behalf of the association as authorized by this
633 chapter loyally, skillfully, and diligently; dealing honestly
634 and fairly; in good faith; with care and full disclosure to the
635 community association; accounting for all funds; and not
636 charging unreasonable or excessive fees.
637 (b) If a community association manager or a community
638 association management firm has a contract with a community
639 association that is subject to the milestone inspection
640 requirements in s. 553.899, or the structural integrity reserve
641 study requirements in s. 718.112(2)(g) and 719.106(1)(k), the
642 community association manager or the community association
643 management firm must comply with those sections that section as
644 directed by the board.
645 (c) Each contract between a community association and a
646 community association manager or community association
647 management firm for community association management services
648 must include the following written statement in at least 12
649 point type, if applicable to the type of management services
650 provided in the contract:
651
652 The community association manager shall abide by all
653 professional standards and record keeping requirements
654 imposed pursuant to part VIII of chapter 468, Florida
655 Statutes.
656
657 (d) A contract between a community association manager or
658 community association management firm and a community
659 association may not waive or limit the professional practice
660 standards required pursuant to this part.
661 (3) A community association manager or community
662 association management firm that is authorized by contract to
663 provide community association management services to a community
664 homeowners’ association shall do all of the following:
665 (a) Attend in person at least one member meeting or board
666 meeting of the community homeowners’ association annually.
667 (b) Provide to the members of the community homeowners’
668 association the name and contact information for each community
669 association manager or representative of a community association
670 management firm assigned to the community homeowners’
671 association, the manager’s or representative’s hours of
672 availability, and a summary of the duties for which the manager
673 or representative is responsible. The community homeowners’
674 association shall also post this information on the
675 association’s website or mobile application, if the association
676 is required to maintain official records on a website or
677 application required under s. 720.303(4)(b). The community
678 association manager or community association management firm
679 shall update the community homeowners’ association and its
680 members within 14 business days after any change to such
681 information.
682 (c) Provide to any member upon request a copy of the
683 contract between the community association manager or community
684 association management firm and the community homeowners’
685 association and include such contract with association’s
686 official records.
687 Section 3. Subsection (11) and present subsections (12) and
688 (13) of section 553.899, Florida Statutes, are amended,
689 paragraphs (e) and (f) are added to subsection (3) and a new
690 subsection (12) is added to that section, to read:
691 553.899 Mandatory structural inspections for condominium
692 and cooperative buildings.—
693 (3)
694 (e) On or before October 1, 2025, and on or before each
695 December 31 thereafter, the local enforcement agency responsible
696 for milestone inspections must provide the department, in an
697 electronic format determined by the department, information that
698 may include, but is not limited to:
699 1. The number of buildings required to have a milestone
700 inspection within the agency’s jurisdiction.
701 2. The number of buildings for which a phase one milestone
702 inspection has been completed.
703 3. The number of buildings granted an extension under
704 paragraph (3)(c).
705 4. The number of buildings required to have a phase two
706 milestone inspection.
707 5. The number of buildings for which a phase two milestone
708 inspection has been completed.
709 6. The number, type, and value of permits applied for to
710 complete repairs pursuant to a phase two milestone inspection.
711 7. A list of buildings deemed to be unsafe or uninhabitable
712 due to a milestone inspection.
713 8. The license number of the building code administrator
714 responsible for milestone inspections for the local enforcement
715 agency.
716 (f) Subject to appropriation, the department shall contract
717 with the University of Florida for the purpose of creating a
718 report that provides comprehensive data, evaluation, and
719 analysis on the milestone inspections performed throughout this
720 state during each calendar year or other time period approved by
721 the department. Every local enforcement agency responsible for
722 milestone inspections must provide the university with a copy of
723 any phase one or phase two milestone inspection report by the
724 date specified by the department in a manner prescribed by the
725 university. The university may request any additional
726 information from a local enforcement agency which the university
727 requires to complete this report. The university shall compile
728 the report, and the department shall transmit the report to the
729 Governor, the President of the Senate, and the Speaker of the
730 House of Representatives.
731 (11) A board of county commissioners or municipal governing
732 body shall may adopt an ordinance requiring that a condominium
733 or cooperative association and any other owner that is subject
734 to this section schedule or commence repairs for substantial
735 structural deterioration within a specified timeframe after the
736 local enforcement agency receives a phase two inspection report;
737 however, such repairs must be commenced within 365 days after
738 receiving such report. If an owner of the building fails to
739 submit proof to the local enforcement agency that repairs have
740 been scheduled or have commenced for substantial structural
741 deterioration identified in a phase two inspection report within
742 the required timeframe, the local enforcement agency must review
743 and determine if the building is unsafe for human occupancy.
744 (12) A licensed architect or engineer who bids to perform a
745 milestone inspection must disclose in writing to the association
746 his or her intent to bid on any services related to any
747 maintenance, repair, or replacement which may be recommended by
748 the milestone inspection. Any design professional as defined in
749 s. 558.002(7) or contractor licensed under chapter 489 who
750 submits a bid to the association for performing any services
751 recommended by the milestone inspection may not have an
752 interest, directly or indirectly, in the firm or entity
753 providing the milestone inspection or be a relative of any
754 person having a direct or indirect interest in such firm, unless
755 such relationship is disclosed to the association in writing. As
756 used in this section, the term “relative” means a relative
757 within the third degree of consanguinity by blood or marriage. A
758 contract for services is voidable and terminates upon the
759 association filing a written notice terminating the contract if
760 the design professional or licensed contractor failed to provide
761 the written disclosure of the relationship required under this
762 subsection. A design professional or licensed contractor may be
763 subject to discipline under the applicable practice act for his
764 or her profession for failure to provide the written disclosure
765 of the relationship required under this subsection.
766 (13)(12) By December 31, 2024, the Florida Building
767 Commission shall adopt rules pursuant to ss. 120.536(1) and
768 120.54 to establish a building safety program for the
769 implementation of this section within the Florida Building Code:
770 Existing Building. The building inspection program must, at
771 minimum, include inspection criteria, testing protocols,
772 standardized inspection and reporting forms that are adaptable
773 to an electronic format, and record maintenance requirements for
774 the local authority.
775 (14)(13) The Florida Building Commission shall consult with
776 the State Fire Marshal to provide recommendations to the
777 Legislature for the adoption of comprehensive structural and
778 life safety standards for maintaining and inspecting all types
779 of buildings and structures in this state that are three stories
780 or more in height. The commission shall provide a written report
781 of its recommendations to the Governor, the President of the
782 Senate, and the Speaker of the House of Representatives by
783 December 31, 2023.
784 Section 4. Present subsections (33) and (34) of section
785 718.103, Florida Statutes, are redesignated as subsections (34)
786 and (35), respectively, a new subsection (33) is added to that
787 section, and subsection (1) of that section is amended, to read:
788 718.103 Definitions.—As used in this chapter, the term:
789 (1) “Alternative funding method” means a method approved by
790 the division for funding the capital expenditures and deferred
791 maintenance obligations of the association for a
792 multicondominium association operating at least 25 condominiums
793 which may reasonably be expected to fully satisfy the
794 association’s reserve funding obligations by the, including:
795 (a) The allocation of funds in the annual operating budget
796 of a multicondominium; or
797 (b) Any other method defined by rule of the division which
798 may reasonably be expected to fully satisfy the association’s
799 reserve funding obligations or fund its capital expenditure and
800 deferred maintenance obligations.
801 (33) “Video conference” means a real-time audio and video
802 based meeting between two or more people in different locations
803 using video-enabled and audio-enabled devices. The notice for
804 any meeting that will be conducted by video conference must have
805 a hyperlink and call-in conference telephone number for unit
806 owners to attend the meeting and must have a physical location
807 where unit owners can also attend the meeting in person. All
808 meetings conducted by video conference must be recorded and such
809 recording must be maintained as an official record of the
810 association.
811 Section 5. Paragraphs (a) and (g) of subsection (12) and
812 subsection (13) of section 718.111, Florida Statutes, are
813 amended, paragraphs (g), (h), and (i) are added to subsection
814 (3) of that section, and subsection (16) is added to that
815 section, to read:
816 718.111 The association.—
817 (3) POWER TO MANAGE CONDOMINIUM PROPERTY AND TO CONTRACT,
818 SUE, AND BE SUED; CONFLICT OF INTEREST.—
819 (g) If an association contracts with a community
820 association manager or a community association management firm,
821 the community association manager or community association
822 management firm must possess all applicable licenses required by
823 part VIII of chapter 468. All board members or officers of an
824 association that contracts with a community association manager
825 or a community association management firm have a duty to ensure
826 that the community association manager or community association
827 management firm is properly licensed before entering into a
828 contract.
829 (h) If a community association manager has his or her
830 license suspended or revoked during the term of a contract with
831 the association, the association may terminate the contract upon
832 delivery of a written notice to the community association
833 manager whose license has been revoked or suspended, effective
834 on the date the community association manager became unlicensed.
835 (i) If a community association management firm has its
836 license suspended or revoked during the term of a contract with
837 the association, the association has the right to terminate the
838 contract upon delivery of a written notice to the community
839 association management firm whose license has been revoked or
840 suspended, effective on the date the community association
841 management firm became unlicensed.
842 (12) OFFICIAL RECORDS.—
843 (a) From the inception of the association, the association
844 shall maintain each of the following items, if applicable, which
845 constitutes the official records of the association:
846 1. A copy of the plans, permits, warranties, and other
847 items provided by the developer under s. 718.301(4).
848 2. A copy photocopy of the recorded declaration of
849 condominium of each condominium operated by the association and
850 each amendment to each declaration.
851 3. A copy photocopy of the recorded bylaws of the
852 association and each amendment to the bylaws.
853 4. A certified copy of the articles of incorporation of the
854 association, or other documents creating the association, and
855 each amendment thereto.
856 5. A copy of the current rules of the association.
857 6. A book or books or electronic records that contain the
858 minutes of all meetings of the association, the board of
859 administration, any committee, and the unit owners, and a
860 recording of all such meetings that are conducted by video
861 conference. If there are approved minutes for a meeting held by
862 video conference, recordings of meetings that are conducted by
863 video conference must be maintained for at least 1 year after
864 the date the video recording is posted as required under
865 paragraph (g).
866 7. A current roster of all unit owners and their mailing
867 addresses, unit identifications, voting certifications, and, if
868 known, telephone numbers. The association shall also maintain
869 the e-mail addresses and facsimile numbers of unit owners
870 consenting to receive notice by electronic transmission. In
871 accordance with sub-subparagraph (c)5.e., the e-mail addresses
872 and facsimile numbers are only accessible to unit owners if
873 consent to receive notice by electronic transmission is
874 provided, or if the unit owner has expressly indicated that such
875 personal information can be shared with other unit owners and
876 the unit owner has not provided the association with a request
877 to opt out of such dissemination with other unit owners. An
878 association must ensure that the e-mail addresses and facsimile
879 numbers are only used for the business operation of the
880 association and may not be sold or shared with outside third
881 parties. If such personal information is included in documents
882 that are released to third parties, other than unit owners, the
883 association must redact such personal information before the
884 document is disseminated. However, the association is not liable
885 for an inadvertent disclosure of the e-mail address or facsimile
886 number for receiving electronic transmission of notices unless
887 such disclosure was made with a knowing or intentional disregard
888 of the protected nature of such information.
889 8. All current insurance policies of the association and
890 condominiums operated by the association.
891 9. A current copy of any management agreement, lease, or
892 other contract to which the association is a party or under
893 which the association or the unit owners have an obligation or
894 responsibility.
895 10. Bills of sale or transfer for all property owned by the
896 association.
897 11. Accounting records for the association and separate
898 accounting records for each condominium that the association
899 operates. Any person who knowingly or intentionally defaces or
900 destroys such records, or who knowingly or intentionally fails
901 to create or maintain such records, with the intent of causing
902 harm to the association or one or more of its members, is
903 personally subject to a civil penalty pursuant to s.
904 718.501(1)(e). The accounting records must include, but are not
905 limited to:
906 a. Accurate, itemized, and detailed records of all receipts
907 and expenditures, including all bank statements and ledgers.
908 b. All invoices, transaction receipts, or deposit slips
909 that substantiate any receipt or expenditure of funds by the
910 association.
911 c. A current account and a monthly, bimonthly, or quarterly
912 statement of the account for each unit designating the name of
913 the unit owner, the due date and amount of each assessment, the
914 amount paid on the account, and the balance due.
915 d. All audits, reviews, accounting statements, structural
916 integrity reserve studies, and financial reports of the
917 association or condominium. Structural integrity reserve studies
918 must be maintained for at least 15 years after the study is
919 completed.
920 e. All contracts for work to be performed. Bids for work to
921 be performed are also considered official records and must be
922 maintained by the association for at least 1 year after receipt
923 of the bid.
924 12. Ballots, sign-in sheets, voting proxies, and all other
925 papers and electronic records relating to voting by unit owners,
926 which must be maintained for 1 year from the date of the
927 election, vote, or meeting to which the document relates,
928 notwithstanding paragraph (b).
929 13. All rental records if the association is acting as
930 agent for the rental of condominium units.
931 14. A copy of the current question and answer sheet as
932 described in s. 718.504.
933 15. A copy of the inspection reports described in ss.
934 553.899 and 718.301(4)(p) and any other inspection report
935 relating to a structural or life safety inspection of
936 condominium property. Such record must be maintained by the
937 association for 15 years after receipt of the report.
938 16. Bids for materials, equipment, or services.
939 17. All affirmative acknowledgments made pursuant to s.
940 718.121(4)(c).
941 18. A copy of all building permits.
942 19. A copy of all satisfactorily completed board member
943 educational certificates.
944 20. A copy of all affidavits required by this chapter.
945 21. A copy of all investment policy statements adopted
946 pursuant to paragraph (16)(c), and all financial statements
947 related to the association’s investment of funds under
948 subsection (16).
949 22.20. All other written records of the association not
950 specifically included in the foregoing which are related to the
951 operation of the association.
952 (g)1. By January 1, 2019, an association managing a
953 condominium with 150 or more units which does not contain
954 timeshare units shall post digital copies of the documents
955 specified in subparagraph 2. on its website or make such
956 documents available through an application that can be
957 downloaded on a mobile device. Unless a shorter period is
958 otherwise required, a document must be made available on the
959 association’s website or made available for download through an
960 application on a mobile device within 30 days after the
961 association receives or creates an official record specified in
962 subparagraph 2.
963 a. The association’s website or application must be:
964 (I) An independent website, application, or web portal
965 wholly owned and operated by the association; or
966 (II) A website, application, or web portal operated by a
967 third-party provider with whom the association owns, leases,
968 rents, or otherwise obtains the right to operate a web page,
969 subpage, web portal, collection of subpages or web portals, or
970 an application which is dedicated to the association’s
971 activities and on which required notices, records, and documents
972 may be posted or made available by the association.
973 b. The association’s website or application must be
974 accessible through the Internet and must contain a subpage, web
975 portal, or other protected electronic location that is
976 inaccessible to the general public and accessible only to unit
977 owners and employees of the association.
978 c. Upon a unit owner’s written request, the association
979 must provide the unit owner with a username and password and
980 access to the protected sections of the association’s website or
981 application which contain any notices, records, or documents
982 that must be electronically provided.
983 2. A current copy of the following documents must be posted
984 in digital format on the association’s website or application:
985 a. The recorded declaration of condominium of each
986 condominium operated by the association and each amendment to
987 each declaration.
988 b. The recorded bylaws of the association and each
989 amendment to the bylaws.
990 c. The articles of incorporation of the association, or
991 other documents creating the association, and each amendment to
992 the articles of incorporation or other documents. The copy
993 posted pursuant to this sub-subparagraph must be a copy of the
994 articles of incorporation filed with the Department of State.
995 d. The rules of the association.
996 e. The approved minutes of all board of administration
997 meetings over the preceding 12 months.
998 f. The video recording or a hyperlink to the video
999 recording for all meetings of the association, the board of
1000 administration, any committee, and the unit owners which are
1001 conducted by video conference over the preceding 12 months.
1002 g.e. A list of all executory contracts or documents to
1003 which the association is a party or under which the association
1004 or the unit owners have an obligation or responsibility and,
1005 after bidding for the related materials, equipment, or services
1006 has closed, a list of bids received by the association within
1007 the past year. Summaries of bids for materials, equipment, or
1008 services which exceed $500 must be maintained on the website or
1009 application for 1 year. In lieu of summaries, complete copies of
1010 the bids may be posted.
1011 h.f. The annual budget required by s. 718.112(2)(f) and any
1012 proposed budget to be considered at the annual meeting.
1013 i.g. The financial report required by subsection (13) and
1014 any monthly income or expense statement to be considered at a
1015 meeting.
1016 j.h. The certification of each director required by s.
1017 718.112(2)(d)4.b.
1018 k.i. All contracts or transactions between the association
1019 and any director, officer, corporation, firm, or association
1020 that is not an affiliated condominium association or any other
1021 entity in which an association director is also a director or
1022 officer and financially interested.
1023 l.j. Any contract or document regarding a conflict of
1024 interest or possible conflict of interest as provided in ss.
1025 468.4335, 468.436(2)(b)6., and 718.3027(3).
1026 m.k. The notice of any unit owner meeting and the agenda
1027 for the meeting, as required by s. 718.112(2)(d)3., no later
1028 than 14 days before the meeting. The notice must be posted in
1029 plain view on the front page of the website or application, or
1030 on a separate subpage of the website or application labeled
1031 “Notices” which is conspicuously visible and linked from the
1032 front page. The association must also post on its website or
1033 application any document to be considered and voted on by the
1034 owners during the meeting or any document listed on the agenda
1035 at least 7 days before the meeting at which the document or the
1036 information within the document will be considered.
1037 n.l. Notice of any board meeting, the agenda, and any other
1038 document required for the meeting as required by s.
1039 718.112(2)(c), which must be posted no later than the date
1040 required for notice under s. 718.112(2)(c).
1041 o.m. The inspection reports described in ss. 553.899 and
1042 718.301(4)(p) and any other inspection report relating to a
1043 structural or life safety inspection of condominium property.
1044 p.n. The association’s most recent structural integrity
1045 reserve study, if applicable.
1046 q.o. Copies of all building permits issued for ongoing or
1047 planned construction.
1048 r. A copy of all affidavits required by this chapter.
1049 s. A copy of all investment policy statements adopted
1050 pursuant to paragraph (16)(c), and all financial statements
1051 related to the association’s investment of funds under
1052 subsection (16).
1053 3. The association shall ensure that the information and
1054 records described in paragraph (c), which are not allowed to be
1055 accessible to unit owners, are not posted on the association’s
1056 website or application. If protected information or information
1057 restricted from being accessible to unit owners is included in
1058 documents that are required to be posted on the association’s
1059 website or application, the association shall ensure the
1060 information is redacted before posting the documents.
1061 Notwithstanding the foregoing, the association or its agent is
1062 not liable for disclosing information that is protected or
1063 restricted under this paragraph unless such disclosure was made
1064 with a knowing or intentional disregard of the protected or
1065 restricted nature of such information.
1066 4. The failure of the association to post information
1067 required under subparagraph 2. is not in and of itself
1068 sufficient to invalidate any action or decision of the
1069 association’s board or its committees.
1070 (13) FINANCIAL REPORTING.—Within 90 days after the end of
1071 the fiscal year, or annually on a date provided in the bylaws,
1072 the association shall prepare and complete, or contract for the
1073 preparation and completion of, a financial report for the
1074 preceding fiscal year. Within 21 days after the final financial
1075 report is completed by the association or received from the
1076 third party, but not later than 180 120 days after the end of
1077 the fiscal year or other date as provided in the bylaws, the
1078 association shall deliver to each unit owner by United States
1079 mail or personal delivery at the mailing address, property
1080 address, e-mail address, or facsimile number provided to fulfill
1081 the association’s notice requirements, a copy of the most recent
1082 financial report, or and a notice that a copy of the most recent
1083 financial report will be, as requested by the owner, mailed, or
1084 hand delivered, or electronically delivered via the Internet to
1085 the unit owner, without charge, within 5 business days after
1086 receipt of a written request from the unit owner. Evidence of
1087 compliance with this delivery requirement must be made by an
1088 affidavit executed by an officer or director of the association.
1089 The division shall adopt rules setting forth uniform accounting
1090 principles and standards to be used by all associations and
1091 addressing the financial reporting requirements for
1092 multicondominium associations. The rules must include, but not
1093 be limited to, standards for presenting a summary of association
1094 reserves, including a good faith estimate disclosing the annual
1095 amount of reserve funds that would be necessary for the
1096 association to fully fund reserves for each reserve item based
1097 on the straight-line accounting method. This disclosure is not
1098 applicable to reserves funded via the pooling method. In
1099 adopting such rules, the division shall consider the number of
1100 members and annual revenues of an association. Financial reports
1101 shall be prepared as follows:
1102 (a) An association that meets the criteria of this
1103 paragraph shall prepare a complete set of financial statements
1104 in accordance with generally accepted accounting principles. The
1105 financial statements must be based upon the association’s total
1106 annual revenues, as follows:
1107 1. An association with total annual revenues of $150,000 or
1108 more, but less than $300,000, shall prepare compiled financial
1109 statements.
1110 2. An association with total annual revenues of at least
1111 $300,000, but less than $500,000, shall prepare reviewed
1112 financial statements.
1113 3. An association with total annual revenues of $500,000 or
1114 more shall prepare audited financial statements.
1115 (b)1. An association with total annual revenues of less
1116 than $150,000 shall prepare a report of cash receipts and
1117 expenditures.
1118 2. A report of cash receipts and disbursements must
1119 disclose the amount of receipts by accounts and receipt
1120 classifications and the amount of expenses by accounts and
1121 expense classifications, including, but not limited to, the
1122 following, as applicable: costs for security, professional and
1123 management fees and expenses, taxes, costs for recreation
1124 facilities, expenses for refuse collection and utility services,
1125 expenses for lawn care, costs for building maintenance and
1126 repair, insurance costs, administration and salary expenses, and
1127 reserves accumulated and expended for capital expenditures,
1128 deferred maintenance, and any other category for which the
1129 association maintains reserves.
1130 (c) An association may prepare, without a meeting of or
1131 approval by the unit owners:
1132 1. Compiled, reviewed, or audited financial statements, if
1133 the association is required to prepare a report of cash receipts
1134 and expenditures;
1135 2. Reviewed or audited financial statements, if the
1136 association is required to prepare compiled financial
1137 statements; or
1138 3. Audited financial statements if the association is
1139 required to prepare reviewed financial statements.
1140 (d) If approved by a majority vote of all the voting
1141 interests present at a properly called meeting of the
1142 association, an association may prepare:
1143 1. A report of cash receipts and expenditures in lieu of a
1144 compiled, reviewed, or audited financial statement;
1145 2. A report of cash receipts and expenditures or a compiled
1146 financial statement in lieu of a reviewed or audited financial
1147 statement; or
1148 3. A report of cash receipts and expenditures, a compiled
1149 financial statement, or a reviewed financial statement in lieu
1150 of an audited financial statement.
1151
1152 Such meeting and approval must occur before the end of the
1153 fiscal year and is effective only for the fiscal year in which
1154 the vote is taken. An association may not prepare a financial
1155 report pursuant to this paragraph for consecutive fiscal years.
1156 If the developer has not turned over control of the association,
1157 all unit owners, including the developer, may vote on issues
1158 related to the preparation of the association’s financial
1159 reports, from the date of incorporation of the association
1160 through the end of the second fiscal year after the fiscal year
1161 in which the certificate of a surveyor and mapper is recorded
1162 pursuant to s. 718.104(4)(e) or an instrument that transfers
1163 title to a unit in the condominium which is not accompanied by a
1164 recorded assignment of developer rights in favor of the grantee
1165 of such unit is recorded, whichever occurs first. Thereafter,
1166 all unit owners except the developer may vote on such issues
1167 until control is turned over to the association by the
1168 developer. Any audit or review prepared under this section shall
1169 be paid for by the developer if done before turnover of control
1170 of the association.
1171 (e) A unit owner may provide written notice to the division
1172 of the association’s failure to mail or hand deliver him or her
1173 a copy of the most recent financial report within 5 business
1174 days after he or she submitted a written request to the
1175 association for a copy of such report. If the division
1176 determines that the association failed to mail or hand deliver a
1177 copy of the most recent financial report to the unit owner, the
1178 division shall provide written notice to the association that
1179 the association must mail or hand deliver a copy of the most
1180 recent financial report to the unit owner and the division
1181 within 5 business days after it receives such notice from the
1182 division. An association that fails to comply with the
1183 division’s request may not waive the financial reporting
1184 requirement provided in paragraph (d) for the fiscal year in
1185 which the unit owner’s request was made and the following fiscal
1186 year. A financial report received by the division pursuant to
1187 this paragraph shall be maintained, and the division shall
1188 provide a copy of such report to an association member upon his
1189 or her request.
1190 (16) INVESTMENT OF ASSOCIATION FUNDS.—
1191 (a) A board shall, in fulfilling its duty to manage
1192 operating and reserve funds of its association, use best efforts
1193 to make prudent investment decisions that carefully consider
1194 risk and return in an effort to maximize returns on invested
1195 funds.
1196 (b) An association, including a multicondominium
1197 association, may invest reserve funds in one or any combination
1198 of certificates of deposit or in depository accounts at a
1199 community bank, savings bank, commercial bank, savings and loan
1200 association, or credit union. Upon a majority vote of the voting
1201 interests, an association may invest reserve funds in
1202 investments other than certificates of deposit or depository
1203 accounts at a community bank, savings bank, commercial bank,
1204 savings and loan association, or credit union, provided the
1205 association complies with paragraphs (c)-(g). Notwithstanding
1206 any declaration, only funds identified as reserve funds may be
1207 invested pursuant to paragraphs (c)-(g). Paragraphs (c)-(g) do
1208 not apply to funds invested in one or any combination of
1209 certificates of deposit or depository accounts at a community
1210 bank, savings bank, commercial bank, savings and loan
1211 association, or credit union.
1212 (c) The board shall create an investment committee composed
1213 of at least two board members and two-unit unit owners who are
1214 not board members. The board shall also adopt rules for invested
1215 funds, including, but not limited to, rules requiring periodic
1216 reviews of any investment manager’s performance, the development
1217 of an investment policy statement, and that all meetings of the
1218 investment committee be recorded and made part of the official
1219 records of the association. The investment policy statement
1220 developed pursuant to this paragraph must, at a minimum, address
1221 risk, liquidity, and benchmark measurements; authorized classes
1222 of investments; authorized investment mixes; limitations on
1223 authority relating to investment transactions; requirements for
1224 projected reserve expenditures within, at minimum, the next 24
1225 months to be held in cash or cash equivalents; projected
1226 expenditures relating to a mandatory structural inspection
1227 performed pursuant to s. 553.899; and protocols for proxy
1228 response.
1229 (d) The investment committee shall recommend investment
1230 advisers to the board, and the board shall select one of the
1231 recommended investment advisers to provide services to the
1232 association. Such investment advisers must be registered or have
1233 notice filed under s. 517.12. The selected investment adviser
1234 and any representative or association of the investment adviser
1235 may not be related by affinity or consanguinity to, or under
1236 common ownership with, any board member, community management
1237 company, reserve study provider, or co-owner of a unit with a
1238 board member or investment committee member. The investment
1239 adviser shall comply with the prudent investor rule in s.
1240 518.11. The investment adviser shall act as a fiduciary to the
1241 association in compliance with the standards set forth in the
1242 Employee Retirement Income Security Act of 1974 at 29 U.S.C. s.
1243 1104(a)(1)(A)-(C). In case of conflict with other laws
1244 authorizing investments, the investment and fiduciary standards
1245 set forth in this subsection must prevail. If at any time the
1246 investment committee determines that an investment adviser does
1247 not meet the requirements of this section, the investment
1248 committee must recommend a replacement investment adviser to the
1249 board.
1250 (e) At least once each calendar year, or sooner if a
1251 substantial financial obligation of the association becomes
1252 known to the board, the association must provide the investment
1253 adviser with the association’s investment policy statement, the
1254 most recent reserve study report, the association’s structural
1255 integrity report, and the financial reports prepared pursuant to
1256 subsection (13). If there is no recent reserve study report, the
1257 association must provide the investment adviser with a good
1258 faith estimate disclosing the annual amount of reserve funds
1259 necessary for the association to fund reserves fully for the
1260 life of each reserve component and each component’s
1261 redundancies. The investment adviser shall annually review these
1262 documents and provide the association with a portfolio
1263 allocation model that is suitably structured and prudently
1264 designed to match projected annual reserve fund requirements and
1265 liability, assets, and liquidity requirements. The investment
1266 adviser shall prepare a funding projection for each reserve
1267 component, including any of the component’s redundancies. The
1268 association must have available at all times a minimum of 24
1269 months of projected reserves in cash or cash equivalents.
1270 (f) Portfolios managed by the investment adviser may
1271 contain any type of investment necessary to meet the objectives
1272 in the investment policy statement; however, portfolios may not
1273 contain stocks, securities, or other obligations that the State
1274 Board of Administration is prohibited from investing in under s.
1275 215.471, s. 215.4725, or s. 215.473 or that state agencies are
1276 prohibited from investing in under s. 215.472, as determined by
1277 the investment adviser. Any funds invested by the investment
1278 adviser must be held in third-party custodial accounts that are
1279 subject to insurance coverage by the Securities Investor
1280 Protection Corporation in an amount equal to or greater than the
1281 invested amount. The investment adviser may withdraw investment
1282 fees, expenses, and commissions from invested funds.
1283 (g) The investment adviser shall:
1284 1. Annually provide the association with a written
1285 certification of compliance with this section and a list of
1286 stocks, securities, and other obligations that are prohibited
1287 from being in association portfolios under paragraph (f); and
1288 2. Submit monthly, quarterly, and annual reports to the
1289 association which are prepared in accordance with established
1290 financial industry standards and in accordance with chapter 517.
1291 (h) Any principal, earnings, or interest managed under this
1292 subsection must be available at no cost or charge to the
1293 association within 15 business days after delivery of the
1294 association’s written or electronic request.
1295 (i) Unallocated income earned on reserve fund investments
1296 must be spent only on capital expenditures, planned maintenance,
1297 structural repairs, or other items for which the reserve
1298 accounts have been established. Any surplus of funds that
1299 exceeds the amount required to maintain reasonably funded
1300 reserves must be managed pursuant to s. 718.115.
1301 Section 6. Paragraphs (b) through (g) of subsection (2) of
1302 section 718.112, Florida Statutes, are amended to read:
1303 718.112 Bylaws.—
1304 (2) REQUIRED PROVISIONS.—The bylaws shall provide for the
1305 following and, if they do not do so, shall be deemed to include
1306 the following:
1307 (b) Quorum; voting requirements; proxies.—
1308 1. Unless a lower number is provided in the bylaws, the
1309 percentage of voting interests required to constitute a quorum
1310 at a meeting of the members is a majority of the voting
1311 interests. Unless otherwise provided in this chapter or in the
1312 declaration, articles of incorporation, or bylaws, and except as
1313 provided in subparagraph (d)4., decisions shall be made by a
1314 majority of the voting interests represented at a meeting at
1315 which a quorum is present.
1316 2. Except as specifically otherwise provided herein, unit
1317 owners in a residential condominium may not vote by general
1318 proxy, but may vote by limited proxies substantially conforming
1319 to a limited proxy form adopted by the division. A voting
1320 interest or consent right allocated to a unit owned by the
1321 association may not be exercised or considered for any purpose,
1322 whether for a quorum, an election, or otherwise. Limited proxies
1323 and general proxies may be used to establish a quorum. Limited
1324 proxies shall be used for votes taken to waive or reduce
1325 reserves in accordance with subparagraph (f)2.; for votes taken
1326 to waive the financial reporting requirements of s. 718.111(13);
1327 for votes taken to amend the declaration pursuant to s. 718.110;
1328 for votes taken to amend the articles of incorporation or bylaws
1329 pursuant to this section; and for any other matter for which
1330 this chapter requires or permits a vote of the unit owners.
1331 Except as provided in paragraph (d), a proxy, limited or
1332 general, may not be used in the election of board members in a
1333 residential condominium. General proxies may be used for other
1334 matters for which limited proxies are not required, and may be
1335 used in voting for nonsubstantive changes to items for which a
1336 limited proxy is required and given. Notwithstanding this
1337 subparagraph, unit owners may vote in person at unit owner
1338 meetings. This subparagraph does not limit the use of general
1339 proxies or require the use of limited proxies for any agenda
1340 item or election at any meeting of a timeshare condominium
1341 association or a nonresidential condominium association.
1342 3. A proxy given is effective only for the specific meeting
1343 for which originally given and any lawfully adjourned meetings
1344 thereof. A proxy is not valid longer than 90 days after the date
1345 of the first meeting for which it was given. Each proxy is
1346 revocable at any time at the pleasure of the unit owner
1347 executing it.
1348 4. A member of the board of administration or a committee
1349 may submit in writing his or her agreement or disagreement with
1350 any action taken at a meeting that the member did not attend.
1351 This agreement or disagreement may not be used as a vote for or
1352 against the action taken or to create a quorum.
1353 5. A board meeting may be conducted in person or by video
1354 conference. A board or committee member’s participation in a
1355 meeting via telephone, real-time videoconferencing, or similar
1356 real-time electronic or video communication counts toward a
1357 quorum, and such member may vote as if physically present. A
1358 speaker must be used so that the conversation of such members
1359 may be heard by the board or committee members attending in
1360 person as well as by any unit owners present at a meeting. The
1361 division shall adopt rules pursuant to ss. 120.536 and 120.54
1362 governing the requirements for meetings.
1363 (c) Board of administration meetings.—In a residential
1364 condominium association of more than 10 units, the board of
1365 administration shall meet at least once each quarter. At least
1366 four times each year, the meeting agenda must include an
1367 opportunity for members to ask questions of the board. Meetings
1368 of the board of administration at which a quorum of the members
1369 is present are open to all unit owners. Members of the board of
1370 administration may use e-mail as a means of communication but
1371 may not cast a vote on an association matter via e-mail. A unit
1372 owner may tape record or videotape the meetings. The right to
1373 attend such meetings includes the right to speak at such
1374 meetings with reference to all designated agenda items and the
1375 right to ask questions relating to reports on the status of
1376 construction or repair projects, the status of revenues and
1377 expenditures during the current fiscal year, and other issues
1378 affecting the condominium. The division shall adopt reasonable
1379 rules governing the tape recording and videotaping of the
1380 meeting. The association may adopt written reasonable rules
1381 governing the frequency, duration, and manner of unit owner
1382 statements.
1383 1. Adequate notice of all board meetings, which must
1384 specifically identify all agenda items, must be posted
1385 conspicuously on the condominium property at least 48 continuous
1386 hours before the meeting except in an emergency. If the board
1387 meeting is to be conducted via video conference, the notice must
1388 state that such meeting will be via video conference and must
1389 include a hyperlink and a conference telephone number for unit
1390 owners to attend the meeting via video conference, as well as
1391 the address of the physical location where the unit owners can
1392 attend the meeting in person. If the meeting is conducted via
1393 video conference, it must be recorded and such recording must be
1394 maintained as an official record of the association. If 20
1395 percent of the voting interests petition the board to address an
1396 item of business, the board, within 60 days after receipt of the
1397 petition, shall place the item on the agenda at its next regular
1398 board meeting or at a special meeting called for that purpose.
1399 An item not included on the notice may be taken up on an
1400 emergency basis by a vote of at least a majority plus one of the
1401 board members. Such emergency action must be noticed and
1402 ratified at the next regular board meeting. Written notice of a
1403 meeting at which a nonemergency special assessment or an
1404 amendment to rules regarding unit use will be considered must be
1405 mailed, delivered, or electronically transmitted to the unit
1406 owners and posted conspicuously on the condominium property at
1407 least 14 days before the meeting. Evidence of compliance with
1408 this 14-day notice requirement must be made by an affidavit
1409 executed by the person providing the notice and filed with the
1410 official records of the association.
1411 2. Upon notice to the unit owners, the board shall, by duly
1412 adopted rule, designate a specific location on the condominium
1413 property at which all notices of board meetings must be posted.
1414 If there is no condominium property at which notices can be
1415 posted, Notices shall be mailed, delivered, or electronically
1416 transmitted to each unit owner who has consented to receive
1417 electronic notifications at least 14 days before the meeting. In
1418 lieu of or in addition to the physical posting of the notice on
1419 the condominium property and mailing, delivering, or
1420 electronically transmitting the notice, the association may, by
1421 reasonable rule, adopt a procedure for conspicuously posting and
1422 repeatedly broadcasting the notice and the agenda on a closed
1423 circuit cable television system serving the condominium
1424 association. However, if broadcast notice is used in lieu of a
1425 notice physically posted on condominium property, the notice and
1426 agenda must be broadcast at least four times every broadcast
1427 hour of each day that a posted notice is otherwise required
1428 under this section. If broadcast notice is provided, the notice
1429 and agenda must be broadcast in a manner and for a sufficient
1430 continuous length of time so as to allow an average reader to
1431 observe the notice and read and comprehend the entire content of
1432 the notice and the agenda. In addition to any of the authorized
1433 means of providing notice of a meeting of the board, the
1434 association may, by rule, adopt a procedure for conspicuously
1435 posting the meeting notice and the agenda on a website serving
1436 the condominium association for at least the minimum period of
1437 time for which a notice of a meeting is also required to be
1438 physically posted on the condominium property. Any rule adopted
1439 shall, in addition to other matters, include a requirement that
1440 the association send an electronic notice in the same manner as
1441 a notice for a meeting of the members, which must include a
1442 hyperlink to the website at which the notice is posted, to unit
1443 owners whose e-mail addresses are included in the association’s
1444 official records.
1445 3. Notice of any meeting in which regular or special
1446 assessments against unit owners are to be considered must
1447 specifically state that assessments will be considered and
1448 provide the estimated cost and description of the purposes for
1449 such assessments. If an agenda item relates to the approval of a
1450 contract for goods or services, a copy of the contract must be
1451 provided with the notice and be made available for inspection
1452 and copying upon a written request from a unit owner or made
1453 available on the association’s website or through an application
1454 that can be downloaded on a mobile device.
1455 4. Meetings of a committee to take final action on behalf
1456 of the board or make recommendations to the board regarding the
1457 association budget are subject to this paragraph. Meetings of a
1458 committee that does not take final action on behalf of the board
1459 or make recommendations to the board regarding the association
1460 budget are subject to this section, unless those meetings are
1461 exempted from this section by the bylaws of the association.
1462 5. Notwithstanding any other law, the requirement that
1463 board meetings and committee meetings be open to the unit owners
1464 does not apply to:
1465 a. Meetings between the board or a committee and the
1466 association’s attorney, with respect to proposed or pending
1467 litigation, if the meeting is held for the purpose of seeking or
1468 rendering legal advice; or
1469 b. Board meetings held for the purpose of discussing
1470 personnel matters.
1471 (d) Unit owner meetings.—
1472 1. An annual meeting of the unit owners must be held at the
1473 location provided in the association bylaws and, if the bylaws
1474 are silent as to the location, the meeting must be held within
1475 15 miles 45 miles of the condominium property or within the same
1476 county as the condominium property. However, such distance
1477 requirement does not apply to an association governing a
1478 timeshare condominium. If a unit owner meeting is conducted via
1479 video conference, a unit owner may vote electronically in the
1480 manner provided in s. 718.128.
1481 2. Unit owner meetings, including the annual meeting of the
1482 unit owners, may be conducted in person or via video conference.
1483 If the annual meeting of the unit owners is conducted via video
1484 conference, a quorum of the members of the board of
1485 administration must be physically present at the physical
1486 location where unit owners can attend the meeting. The location
1487 must be provided in the association bylaws and, if the bylaws
1488 are silent as to the location, the meeting must be held within
1489 10 miles of the condominium property. If the unit owner meeting
1490 is conducted via video conference, the video conference must be
1491 recorded and such recording must be maintained as an official
1492 record of the association. The division shall adopt rules
1493 pursuant to ss. 120.536 and 120.54 governing the requirements
1494 for meetings.
1495 3.2. Unless the bylaws provide otherwise, a vacancy on the
1496 board caused by the expiration of a director’s term must be
1497 filled by electing a new board member, and the election must be
1498 by secret ballot. An election is not required if the number of
1499 vacancies equals or exceeds the number of candidates. For
1500 purposes of this paragraph, the term “candidate” means an
1501 eligible person who has timely submitted the written notice, as
1502 described in sub-subparagraph 4.a., of his or her intention to
1503 become a candidate. Except in a timeshare or nonresidential
1504 condominium, or if the staggered term of a board member does not
1505 expire until a later annual meeting, or if all members’ terms
1506 would otherwise expire but there are no candidates, the terms of
1507 all board members expire at the annual meeting, and such members
1508 may stand for reelection unless prohibited by the bylaws. Board
1509 members may serve terms longer than 1 year if permitted by the
1510 bylaws or articles of incorporation. A board member may not
1511 serve more than 8 consecutive years unless approved by an
1512 affirmative vote of unit owners representing two-thirds of all
1513 votes cast in the election or unless there are not enough
1514 eligible candidates to fill the vacancies on the board at the
1515 time of the vacancy. Only board service that occurs on or after
1516 July 1, 2018, may be used when calculating a board member’s term
1517 limit. If the number of board members whose terms expire at the
1518 annual meeting equals or exceeds the number of candidates, the
1519 candidates become members of the board effective upon the
1520 adjournment of the annual meeting. Unless the bylaws provide
1521 otherwise, any remaining vacancies shall be filled by the
1522 affirmative vote of the majority of the directors making up the
1523 newly constituted board even if the directors constitute less
1524 than a quorum or there is only one director. In a residential
1525 condominium association of more than 10 units or in a
1526 residential condominium association that does not include
1527 timeshare units or timeshare interests, co-owners of a unit may
1528 not serve as members of the board of directors at the same time
1529 unless they own more than one unit or unless there are not
1530 enough eligible candidates to fill the vacancies on the board at
1531 the time of the vacancy. A unit owner in a residential
1532 condominium desiring to be a candidate for board membership must
1533 comply with sub-subparagraph 4.a. and must be eligible to be a
1534 candidate to serve on the board of directors at the time of the
1535 deadline for submitting a notice of intent to run in order to
1536 have his or her name listed as a proper candidate on the ballot
1537 or to serve on the board. A person who has been suspended or
1538 removed by the division under this chapter, or who is delinquent
1539 in the payment of any assessment due to the association, is not
1540 eligible to be a candidate for board membership and may not be
1541 listed on the ballot. For purposes of this paragraph, a person
1542 is delinquent if a payment is not made by the due date as
1543 specifically identified in the declaration of condominium,
1544 bylaws, or articles of incorporation. If a due date is not
1545 specifically identified in the declaration of condominium,
1546 bylaws, or articles of incorporation, the due date is the first
1547 day of the assessment period. A person who has been convicted of
1548 any felony in this state or in a United States District or
1549 Territorial Court, or who has been convicted of any offense in
1550 another jurisdiction which would be considered a felony if
1551 committed in this state, is not eligible for board membership
1552 unless such felon’s civil rights have been restored for at least
1553 5 years as of the date such person seeks election to the board.
1554 The validity of an action by the board is not affected if it is
1555 later determined that a board member is ineligible for board
1556 membership due to having been convicted of a felony. This
1557 subparagraph does not limit the term of a member of the board of
1558 a nonresidential or timeshare condominium.
1559 4.3. The bylaws must provide the method of calling meetings
1560 of unit owners, including annual meetings. Written notice of an
1561 annual meeting must include an agenda; be mailed, hand
1562 delivered, or electronically transmitted to each unit owner at
1563 least 14 days before the annual meeting; and be posted in a
1564 conspicuous place on the condominium property or association
1565 property at least 14 continuous days before the annual meeting.
1566 Written notice of a meeting other than an annual meeting must
1567 include an agenda; be mailed, hand delivered, or electronically
1568 transmitted to each unit owner; and be posted in a conspicuous
1569 place on the condominium property or association property within
1570 the timeframe specified in the bylaws. If the bylaws do not
1571 specify a timeframe for written notice of a meeting other than
1572 an annual meeting, notice must be provided at least 14
1573 continuous days before the meeting. Upon notice to the unit
1574 owners, the board shall, by duly adopted rule, designate a
1575 specific location on the condominium property or association
1576 property at which all notices of unit owner meetings must be
1577 posted. This requirement does not apply if there is no
1578 condominium property for posting notices. In lieu of, or in In
1579 addition to, the physical posting of meeting notices, the
1580 association may, by reasonable rule, adopt a procedure for
1581 conspicuously posting and repeatedly broadcasting the notice and
1582 the agenda on a closed-circuit cable television system serving
1583 the condominium association. However, if broadcast notice is
1584 used in lieu of a notice posted physically on the condominium
1585 property, the notice and agenda must be broadcast at least four
1586 times every broadcast hour of each day that a posted notice is
1587 otherwise required under this section. If broadcast notice is
1588 provided, the notice and agenda must be broadcast in a manner
1589 and for a sufficient continuous length of time so as to allow an
1590 average reader to observe the notice and read and comprehend the
1591 entire content of the notice and the agenda. In addition to any
1592 of the authorized means of providing notice of a meeting of the
1593 board, the association may, by rule, adopt a procedure for
1594 conspicuously posting the meeting notice and the agenda on a
1595 website serving the condominium association for at least the
1596 minimum period of time for which a notice of a meeting is also
1597 required to be physically posted on the condominium property.
1598 Any rule adopted shall, in addition to other matters, include a
1599 requirement that the association send an electronic notice in
1600 the same manner as a notice for a meeting of the members, which
1601 must include a hyperlink to the website at which the notice is
1602 posted, to unit owners whose e-mail addresses are included in
1603 the association’s official records. Unless a unit owner waives
1604 in writing the right to receive notice of the annual meeting,
1605 such notice must be hand delivered, mailed, or electronically
1606 transmitted to each unit owner. Notice for meetings and notice
1607 for all other purposes must be mailed to each unit owner at the
1608 address last furnished to the association by the unit owner, or
1609 hand delivered to each unit owner. However, if a unit is owned
1610 by more than one person, the association must provide notice to
1611 the address that the developer identifies for that purpose and
1612 thereafter as one or more of the owners of the unit advise the
1613 association in writing, or if no address is given or the owners
1614 of the unit do not agree, to the address provided on the deed of
1615 record. An officer of the association, or the manager or other
1616 person providing notice of the association meeting, must provide
1617 an affidavit or United States Postal Service certificate of
1618 mailing, to be included in the official records of the
1619 association affirming that the notice was mailed or hand
1620 delivered in accordance with this provision.
1621 5.4. The members of the board of a residential condominium
1622 shall be elected by written ballot or voting machine. Proxies
1623 may not be used in electing the board in general elections or
1624 elections to fill vacancies caused by recall, resignation, or
1625 otherwise, unless otherwise provided in this chapter. This
1626 subparagraph does not apply to an association governing a
1627 timeshare condominium.
1628 a. At least 60 days before a scheduled election, the
1629 association shall mail, deliver, or electronically transmit, by
1630 separate association mailing or included in another association
1631 mailing, delivery, or transmission, including regularly
1632 published newsletters, to each unit owner entitled to a vote, a
1633 first notice of the date of the election. A unit owner or other
1634 eligible person desiring to be a candidate for the board must
1635 give written notice of his or her intent to be a candidate to
1636 the association at least 40 days before a scheduled election.
1637 Together with the written notice and agenda as set forth in
1638 subparagraph 3., the association shall mail, deliver, or
1639 electronically transmit a second notice of the election to all
1640 unit owners entitled to vote, together with a ballot that lists
1641 all candidates not less than 14 days or more than 34 days before
1642 the date of the election. Upon request of a candidate, an
1643 information sheet, no larger than 8 1/2 inches by 11 inches,
1644 which must be furnished by the candidate at least 35 days before
1645 the election, must be included with the mailing, delivery, or
1646 transmission of the ballot, with the costs of mailing, delivery,
1647 or electronic transmission and copying to be borne by the
1648 association. The association is not liable for the contents of
1649 the information sheets prepared by the candidates. In order to
1650 reduce costs, the association may print or duplicate the
1651 information sheets on both sides of the paper. The division
1652 shall by rule establish voting procedures consistent with this
1653 sub-subparagraph, including rules establishing procedures for
1654 giving notice by electronic transmission and rules providing for
1655 the secrecy of ballots. Elections shall be decided by a
1656 plurality of ballots cast. There is no quorum requirement;
1657 however, at least 20 percent of the eligible voters must cast a
1658 ballot in order to have a valid election. A unit owner may not
1659 authorize any other person to vote his or her ballot, and any
1660 ballots improperly cast are invalid. A unit owner who violates
1661 this provision may be fined by the association in accordance
1662 with s. 718.303. A unit owner who needs assistance in casting
1663 the ballot for the reasons stated in s. 101.051 may obtain such
1664 assistance. The regular election must occur on the date of the
1665 annual meeting. Notwithstanding this sub-subparagraph, an
1666 election is not required unless more candidates file notices of
1667 intent to run or are nominated than board vacancies exist.
1668 b. A director of a board of an association of a residential
1669 condominium shall:
1670 (I) Certify in writing to the secretary of the association
1671 that he or she has read the association’s declaration of
1672 condominium, articles of incorporation, bylaws, and current
1673 written policies; that he or she will work to uphold such
1674 documents and policies to the best of his or her ability; and
1675 that he or she will faithfully discharge his or her fiduciary
1676 responsibility to the association’s members.
1677 (II) Submit to the secretary of the association a
1678 certificate of having satisfactorily completed the educational
1679 curriculum administered by the division or a division-approved
1680 condominium education provider. The educational curriculum must
1681 be at least 4 hours long and include instruction on milestone
1682 inspections, structural integrity reserve studies, elections,
1683 recordkeeping, financial literacy and transparency, levying of
1684 fines, and notice and meeting requirements.
1685
1686 Each newly elected or appointed director must submit to the
1687 secretary of the association the written certification and
1688 educational certificate within 1 year before being elected or
1689 appointed or 90 days after the date of election or appointment.
1690 A director of an association of a residential condominium who
1691 was elected or appointed before July 1, 2024, must comply with
1692 the written certification and educational certificate
1693 requirements in this sub-subparagraph by June 30, 2025. The
1694 written certification and educational certificate is valid for 7
1695 years after the date of issuance and does not have to be
1696 resubmitted as long as the director serves on the board without
1697 interruption during the 7-year period. A director who is
1698 appointed by the developer may satisfy the educational
1699 certificate requirement in sub-sub-subparagraph (II) for any
1700 subsequent appointment to a board by a developer within 7 years
1701 after the date of issuance of the most recent educational
1702 certificate, including any interruption of service on a board or
1703 appointment to a board in another association within that 7-year
1704 period. One year after submission of the most recent written
1705 certification and educational certificate, and annually
1706 thereafter, a director of an association of a residential
1707 condominium must submit to the secretary of the association a
1708 certificate of having satisfactorily completed at least 1 hour
1709 of continuing education administered by the division, or a
1710 division-approved condominium education provider, relating to
1711 any recent changes to this chapter and the related
1712 administrative rules during the past year. A director of an
1713 association of a residential condominium who fails to timely
1714 file the written certification and educational certificate is
1715 suspended from service on the board until he or she complies
1716 with this sub-subparagraph. The board may temporarily fill the
1717 vacancy during the period of suspension. The secretary shall
1718 cause the association to retain a director’s written
1719 certification and educational certificate for inspection by the
1720 members for 7 years after a director’s election or the duration
1721 of the director’s uninterrupted tenure, whichever is longer.
1722 Failure to have such written certification and educational
1723 certificate on file does not affect the validity of any board
1724 action.
1725 c. Any challenge to the election process must be commenced
1726 within 60 days after the election results are announced.
1727 6.5. Any approval by unit owners called for by this chapter
1728 or the applicable declaration or bylaws, including, but not
1729 limited to, the approval requirement in s. 718.111(8), must be
1730 made at a duly noticed meeting of unit owners and is subject to
1731 all requirements of this chapter or the applicable condominium
1732 documents relating to unit owner decisionmaking, except that
1733 unit owners may take action by written agreement, without
1734 meetings, on matters for which action by written agreement
1735 without meetings is expressly allowed by the applicable bylaws
1736 or declaration or any law that provides for such action.
1737 7.6. Unit owners may waive notice of specific meetings if
1738 allowed by the applicable bylaws or declaration or any law.
1739 Notice of meetings of the board of administration; unit owner
1740 meetings, except unit owner meetings called to recall board
1741 members under paragraph (l); and committee meetings may be given
1742 by electronic transmission to unit owners who consent to receive
1743 notice by electronic transmission. A unit owner who consents to
1744 receiving notices by electronic transmission is solely
1745 responsible for removing or bypassing filters that block receipt
1746 of mass e-mails sent to members on behalf of the association in
1747 the course of giving electronic notices.
1748 8.7. Unit owners have the right to participate in meetings
1749 of unit owners with reference to all designated agenda items.
1750 However, the association may adopt reasonable rules governing
1751 the frequency, duration, and manner of unit owner participation.
1752 9.8. A unit owner may tape record or videotape a meeting of
1753 the unit owners subject to reasonable rules adopted by the
1754 division.
1755 10.9. Unless otherwise provided in the bylaws, any vacancy
1756 occurring on the board before the expiration of a term may be
1757 filled by the affirmative vote of the majority of the remaining
1758 directors, even if the remaining directors constitute less than
1759 a quorum, or by the sole remaining director. In the alternative,
1760 a board may hold an election to fill the vacancy, in which case
1761 the election procedures must conform to sub-subparagraph 4.a.
1762 unless the association governs 10 units or fewer and has opted
1763 out of the statutory election process, in which case the bylaws
1764 of the association control. Unless otherwise provided in the
1765 bylaws, a board member appointed or elected under this section
1766 shall fill the vacancy for the unexpired term of the seat being
1767 filled. Filling vacancies created by recall is governed by
1768 paragraph (l) and rules adopted by the division.
1769 11.10. This chapter does not limit the use of general or
1770 limited proxies, require the use of general or limited proxies,
1771 or require the use of a written ballot or voting machine for any
1772 agenda item or election at any meeting of a timeshare
1773 condominium association or nonresidential condominium
1774 association.
1775
1776 Notwithstanding subparagraph (b)2. and sub-subparagraph 4.a., an
1777 association of 10 or fewer units may, by affirmative vote of a
1778 majority of the total voting interests, provide for different
1779 voting and election procedures in its bylaws, which may be by a
1780 proxy specifically delineating the different voting and election
1781 procedures. The different voting and election procedures may
1782 provide for elections to be conducted by limited or general
1783 proxy.
1784 (e) Budget meeting.—
1785 1. Any meeting at which a proposed annual budget of an
1786 association will be considered by the board or unit owners shall
1787 be open to all unit owners. A meeting of the board or unit
1788 owners at which a proposed annual association budget will be
1789 considered may be conducted by video conference. The division
1790 shall adopt rules pursuant to ss. 120.536 and 120.54 governing
1791 the requirements for such meetings. A sound transmitting device
1792 must be used so that the conversation of such members may be
1793 heard by the board or committee members attending in person, as
1794 well as any unit owners present at the meeting. At least 14 days
1795 before prior to such a meeting, the board shall hand deliver to
1796 each unit owner, mail to each unit owner at the address last
1797 furnished to the association by the unit owner, or
1798 electronically transmit to the location furnished by the unit
1799 owner for that purpose a notice of such meeting and a copy of
1800 the proposed annual budget. An officer or manager of the
1801 association, or other person providing notice of such meeting,
1802 shall execute an affidavit evidencing compliance with such
1803 notice requirement, and such affidavit shall be filed among the
1804 official records of the association.
1805 2.a. If a board proposes adopts in any fiscal year an
1806 annual budget which requires assessments against unit owners
1807 which exceed 115 percent of assessments for the preceding fiscal
1808 year, the board shall simultaneously propose a substitute budget
1809 that does not include any discretionary expenditures that are
1810 not required to be in the budget. The substitute budget must be
1811 proposed at the budget meeting before the adoption of the annual
1812 budget conduct a special meeting of the unit owners to consider
1813 a substitute budget if the board receives, within 21 days after
1814 adoption of the annual budget, a written request for a special
1815 meeting from at least 10 percent of all voting interests. The
1816 special meeting shall be conducted within 60 days after adoption
1817 of the annual budget. At least 14 days before such budget
1818 meeting in which a substitute budget will be proposed prior to
1819 such special meeting, the board shall hand deliver to each unit
1820 owner, or mail to each unit owner at the address last furnished
1821 to the association, a notice of the meeting. An officer or
1822 manager of the association, or other person providing notice of
1823 such meeting shall execute an affidavit evidencing compliance
1824 with this notice requirement, and such affidavit shall be filed
1825 among the official records of the association. Unit owners must
1826 may consider and may adopt a substitute budget at the special
1827 meeting. A substitute budget is adopted if approved by a
1828 majority of all voting interests unless the bylaws require
1829 adoption by a greater percentage of voting interests. If there
1830 is not a quorum at the special meeting or a substitute budget is
1831 not adopted, the annual budget previously initially proposed
1832 adopted by the board may be adopted shall take effect as
1833 scheduled.
1834 b. Any determination of whether assessments exceed 115
1835 percent of assessments for the prior fiscal year shall exclude
1836 any authorized provision for required reasonable reserves for
1837 repair or replacement of the condominium property, anticipated
1838 expenses of the association which the board does not expect to
1839 be incurred on a regular or annual basis for the repair,
1840 maintenance, or replacement of the items listed in paragraph
1841 (g), and insurance premiums, or assessments for betterments to
1842 the condominium property.
1843 c. If the developer controls the board, assessments may
1844 shall not exceed 115 percent of assessments for the prior fiscal
1845 year unless approved by a majority of all voting interests.
1846 (f) Annual budget.—
1847 1. The proposed annual budget of estimated revenues and
1848 expenses must be detailed and must show the amounts budgeted by
1849 accounts and expense classifications, including, at a minimum,
1850 any applicable expenses listed in s. 718.504(21). The board
1851 shall adopt the annual budget at least 14 days before the start
1852 of the association’s fiscal year. In the event that the board
1853 fails to timely adopt the annual budget a second time, it is
1854 deemed a minor violation and the prior year’s budget shall
1855 continue in effect until a new budget is adopted. A
1856 multicondominium association must adopt a separate budget of
1857 common expenses for each condominium the association operates
1858 and must adopt a separate budget of common expenses for the
1859 association. In addition, if the association maintains limited
1860 common elements with the cost to be shared only by those
1861 entitled to use the limited common elements as provided for in
1862 s. 718.113(1), the budget or a schedule attached to it must show
1863 the amount budgeted for this maintenance. If, after turnover of
1864 control of the association to the unit owners, any of the
1865 expenses listed in s. 718.504(21) are not applicable, they do
1866 not need to be listed.
1867 2.a. In addition to annual operating expenses, the budget
1868 must include reserve accounts for capital expenditures and
1869 deferred maintenance. These accounts must include, but are not
1870 limited to, roof replacement, building painting, and pavement
1871 resurfacing, regardless of the amount of deferred maintenance
1872 expense or replacement cost, and any other item that has a
1873 deferred maintenance expense or replacement cost that exceeds
1874 $25,000 $10,000. The amount to be reserved must be computed
1875 using a formula based upon estimated remaining useful life and
1876 estimated replacement cost or deferred maintenance expense of
1877 the reserve item. In a budget adopted by an association that is
1878 required to obtain a structural integrity reserve study,
1879 reserves must be maintained for the items identified in
1880 paragraph (g) for which the association is responsible pursuant
1881 to the declaration of condominium, and the reserve amount for
1882 such items must be based on the findings and recommendations of
1883 the association’s most recent structural integrity reserve
1884 study. If an association votes to terminate the condominium in
1885 accordance with s. 718.117, the members may vote to waive the
1886 maintenance of reserves recommended by the association’s most
1887 recent structural integrity reserve study. With respect to items
1888 for which an estimate of useful life is not readily
1889 ascertainable or with an estimated remaining useful life of
1890 greater than 25 years, an association is not required to reserve
1891 replacement costs for such items, but an association must
1892 reserve the amount of deferred maintenance expense, if any,
1893 which is recommended by the structural integrity reserve study
1894 for such items. The association may adjust replacement reserve
1895 assessments annually to take into account an inflation
1896 adjustment and any changes in estimates or extension of the
1897 useful life of a reserve item caused by deferred maintenance.
1898 b. The members of a unit-owner-controlled association may
1899 determine, by a majority vote of the total voting interests of
1900 the association, to provide no reserves or less reserves than
1901 required by this subsection. For a budget adopted on or after
1902 December 31, 2024, the members of a unit-owner-controlled
1903 association that must obtain a structural integrity reserve
1904 study may not determine to provide no reserves or less reserves
1905 than required by this subsection for items listed in paragraph
1906 (g), except that members of an association operating a
1907 multicondominium may determine to provide no reserves or less
1908 reserves than required by this subsection if an alternative
1909 funding method is used by the association has been approved by
1910 the division.
1911 c.(I) Reserves for the items listed in paragraph (g) may be
1912 funded by regular assessments, special assessments, lines of
1913 credit, or loans.
1914 (II) A unit-owner-controlled association that must have a
1915 structural reserve study may secure a line of credit or a loan
1916 to fund capital expenses required by a milestone inspection
1917 under s. 553.899 or a structural integrity reserve study. A line
1918 of credit or a loan under this subparagraph requires the
1919 approval of a majority vote of the total voting interests of the
1920 association. The line of credit or loan must be sufficient to
1921 fund the cumulative amount of any previously waived or unfunded
1922 portions of the reserve funding amount required by this
1923 paragraph and the most recent structural integrity reserve
1924 study. Funding from the line of credit or loan must be
1925 immediately available for access by the board to fund required
1926 repair, maintenance, or replacement expenses without further
1927 approval by the members of the association. A line of credit or
1928 a loan secured under this sub-subparagraph must be included in
1929 the financial report required under s. 718.111(13).
1930 d. If the local building official, as defined in s.
1931 468.603, determines that the entire condominium building is
1932 uninhabitable due to a natural emergency, as defined in s.
1933 252.34, the board, upon the approval of a majority of its
1934 members, may pause the contribution to its reserves or reduce
1935 reserve funding until the local building official determines
1936 that the condominium building is habitable. Any reserve account
1937 funds held by the association may be expended, pursuant to the
1938 board’s determination, to make the condominium building and its
1939 structures habitable. Upon the determination by the local
1940 building official that the condominium building is habitable,
1941 the association must immediately resume contributing funds to
1942 its reserves.
1943 e. For a budget adopted on or before December 31, 2028, if
1944 the association has completed a milestone inspection pursuant to
1945 s. 553.899 within the previous 2 calendar years, the board, upon
1946 the approval of a majority of the total voting interests of the
1947 association, may temporarily pause, for a period of no more than
1948 2 consecutive annual budgets, reserve fund contributions or
1949 reduce the amount of reserve funding for the purpose of funding
1950 repairs recommended by the milestone inspection. This sub
1951 subparagraph does not apply to a developer-controlled
1952 association and an association in which the non-developer unit
1953 owners have been in control for less than 1 year. An association
1954 that has paused reserve contributions under this subparagraph
1955 must have a structural integrity reserve study performed before
1956 the continuation of reserve contributions in order to determine
1957 the association’s reserve funding needs and to recommend a
1958 reserve funding plan.
1959 f.b. Before turnover of control of an association by a
1960 developer to unit owners other than a developer under s.
1961 718.301, the developer-controlled association may not vote to
1962 waive the reserves or reduce funding of the reserves. If a
1963 meeting of the unit owners has been called to determine whether
1964 to waive or reduce the funding of reserves and no such result is
1965 achieved or a quorum is not attained, the reserves included in
1966 the budget shall go into effect. After the turnover, the
1967 developer may vote its voting interest to waive or reduce the
1968 funding of reserves.
1969 3. Reserve funds and any interest accruing thereon shall
1970 remain in the reserve account or accounts, and may be used only
1971 for authorized reserve expenditures unless their use for other
1972 purposes is approved in advance by a majority vote of all the
1973 total voting interests of the association. Before turnover of
1974 control of an association by a developer to unit owners other
1975 than the developer pursuant to s. 718.301, the developer
1976 controlled association may not vote to use reserves for purposes
1977 other than those for which they were intended. For a budget
1978 adopted on or after December 31, 2024, members of a unit-owner
1979 controlled association that must obtain a structural integrity
1980 reserve study may not vote to use reserve funds, or any interest
1981 accruing thereon, for any other purpose other than the
1982 replacement or deferred maintenance costs of the components
1983 listed in paragraph (g). A vote of the members is not required
1984 for the board to change the accounting method for reserves to a
1985 pooling accounting method or a straight-line accounting method.
1986 4. The only voting interests that are eligible to vote on
1987 questions that involve waiving or reducing the funding of
1988 reserves, or using existing reserve funds for purposes other
1989 than purposes for which the reserves were intended, are the
1990 voting interests of the units subject to assessment to fund the
1991 reserves in question. Proxy questions relating to waiving or
1992 reducing the funding of reserves or using existing reserve funds
1993 for purposes other than purposes for which the reserves were
1994 intended must contain the following statement in capitalized,
1995 bold letters in a font size larger than any other used on the
1996 face of the proxy ballot:
1997
1998 WAIVING OF RESERVES, IN WHOLE OR IN PART, OR ALLOWING
1999 ALTERNATIVE USES OF EXISTING RESERVES MAY RESULT IN
2000 UNIT OWNER LIABILITY FOR PAYMENT OF UNANTICIPATED
2001 SPECIAL ASSESSMENTS REGARDING THOSE ITEMS.
2002
2003 (g) Structural integrity reserve study.—
2004 1. A residential condominium association must have a
2005 structural integrity reserve study completed at least every 10
2006 years after the condominium’s creation for each building on the
2007 condominium property that is three stories or higher in height,
2008 as determined by the Florida Building Code, which includes, at a
2009 minimum, a study of the following items as related to the
2010 structural integrity and safety of the building:
2011 a. Roof.
2012 b. Structure, including load-bearing walls and other
2013 primary structural members and primary structural systems as
2014 those terms are defined in s. 627.706.
2015 c. Fireproofing and fire protection systems.
2016 d. Plumbing.
2017 e. Electrical systems.
2018 f. Waterproofing and exterior painting.
2019 g. Windows and exterior doors.
2020 h. Any other item that has a deferred maintenance expense
2021 or replacement cost that exceeds $25,000 $10,000 and the failure
2022 to replace or maintain such item negatively affects the items
2023 listed in sub-subparagraphs a.-g., as determined by the visual
2024 inspection portion of the structural integrity reserve study.
2025 2. A structural integrity reserve study is based on a
2026 visual inspection of the condominium property.
2027 3.a. A structural integrity reserve study may be performed
2028 by any person qualified to perform such study. However, the
2029 visual inspection portion of the structural integrity reserve
2030 study must be performed or verified by an engineer licensed
2031 under chapter 471, an architect licensed under chapter 481, or a
2032 person certified as a reserve specialist or professional reserve
2033 analyst by the Community Associations Institute or the
2034 Association of Professional Reserve Analysts.
2035 b. Any design professional as defined in s. 558.002 or any
2036 contractor licensed under chapter 489 who bids to perform a
2037 structural integrity reserve study must disclose in writing to
2038 the association his or her intent to bid on any services related
2039 to any maintenance, repair, or replacement that may be
2040 recommended by the structural integrity reserve study. Any
2041 design professional as defined in s. 558.002 or contractor
2042 licensed under chapter 489 who submits a bid to the association
2043 for performing any services recommended by the structural
2044 integrity reserve study may not have an interest, directly or
2045 indirectly, in the firm or entity providing the association’s
2046 structural integrity reserve study or be a relative of any
2047 person having a direct or indirect interest in such firm, unless
2048 such relationship is disclosed to the association in writing. As
2049 used in this section, the term “relative” means a relative
2050 within the third degree of consanguinity by blood or marriage. A
2051 contract for services is voidable and terminates upon the
2052 association filing a written notice terminating the contract if
2053 the design professional or licensed contractor failed to provide
2054 the written disclosure of the interests or relationships
2055 required under this paragraph. A design professional or licensed
2056 contractor may be subject to discipline under the applicable
2057 practice act for his or her profession for failure to provide
2058 the written disclosure of the interests or relationships
2059 required under this paragraph.
2060 4.a.3. At a minimum, a structural integrity reserve study
2061 must identify each item of the condominium property being
2062 visually inspected, state the estimated remaining useful life
2063 and the estimated replacement cost or deferred maintenance
2064 expense of each item of the condominium property being visually
2065 inspected, and provide a reserve funding plan or schedule with a
2066 recommended annual reserve amount that achieves the estimated
2067 replacement cost or deferred maintenance expense of each item of
2068 condominium property being visually inspected by the end of the
2069 estimated remaining useful life of the item. At a minimum, the
2070 structural integrity reserve study must include a recommendation
2071 for a reserve funding schedule based on a baseline funding plan
2072 that provides a reserve funding goal in which the reserve
2073 funding for each budget year is sufficient to maintain the
2074 reserve cash balance above zero. The study may recommend other
2075 types of reserve funding schedules, provided that each
2076 recommended schedule is sufficient to meet the association’s
2077 maintenance obligation.
2078 b. The structural integrity reserve study may recommend
2079 that reserves do not need to be maintained for any item for
2080 which an estimate of useful life and an estimate of replacement
2081 cost cannot be determined, or the study may recommend a deferred
2082 maintenance expense amount for such item. The structural
2083 integrity reserve study may recommend that reserves for
2084 replacement costs do not need to be maintained for any item with
2085 an estimated remaining useful life of greater than 25 years, but
2086 the study may recommend a deferred maintenance expense amount
2087 for such item. If the structural integrity reserve study
2088 recommends reserves for any item for which reserves are not
2089 required under this paragraph, the amount of the recommended
2090 reserves for such item must be separately identified in the
2091 structural integrity reserve study as an item for which reserves
2092 are not required under this paragraph.
2093 c. The structural integrity reserve study must take into
2094 consideration the funding method or methods used by the
2095 association to fund its maintenance and reserve funding
2096 obligations through regular assessments, special assessments,
2097 lines of credit, or loans. If the structural integrity reserve
2098 study is performed before the association has approved a special
2099 assessment or secured a line of credit or a loan, the structural
2100 integrity reserve study must be updated to reflect the funding
2101 method selected by the association and its effect on the reserve
2102 funding schedule, including any anticipated change in the amount
2103 of regular assessments. The structural integrity reserve study
2104 may be updated to reflect any changes to the useful life of the
2105 reserve items after such items are repaired or replaced, and the
2106 effect such repair or replacement will have on the reserve
2107 funding schedule. The association must obtain an updated
2108 structural integrity reserve study before adopting any budget in
2109 which the reserve funding from regular assessments, special
2110 assessments, lines of credit, or loans do not align with the
2111 funding plan from the most recent version of the structural
2112 integrity reserve study.
2113 5.4. This paragraph does not apply to buildings less than
2114 three stories in height; single-family, two-family, or three
2115 family dwellings with three or fewer habitable stories above
2116 ground; any portion or component of a building that has not been
2117 submitted to the condominium form of ownership; or any portion
2118 or component of a building that is maintained by a party other
2119 than the association.
2120 6.5. Before a developer turns over control of an
2121 association to unit owners other than the developer, the
2122 developer must have a turnover inspection report in compliance
2123 with s. 718.301(4)(p) and (q) for each building on the
2124 condominium property that is three stories or higher in height.
2125 7.6. Associations existing on or before July 1, 2022, which
2126 are controlled by unit owners other than the developer, must
2127 have a structural integrity reserve study completed by December
2128 31, 2025 2024, for each building on the condominium property
2129 that is three stories or higher in height. An association that
2130 is required to complete a milestone inspection in accordance
2131 with s. 553.899 on or before December 31, 2026, may complete the
2132 structural integrity reserve study simultaneously with the
2133 milestone inspection. In no event may the structural integrity
2134 reserve study be completed after December 31, 2026.
2135 8.7. If the milestone inspection required by s. 553.899, or
2136 an inspection completed for a similar local requirement, was
2137 performed within the past 5 years and meets the requirements of
2138 this paragraph, such inspection may be used in place of the
2139 visual inspection portion of the structural integrity reserve
2140 study.
2141 9. If the association completes a milestone inspection
2142 required by s. 553.899, or an inspection completed for a similar
2143 local requirement, the association may delay performance of a
2144 required structural integrity reserve study for no more than the
2145 2 consecutive budget years immediately following the milestone
2146 inspection in order to allow the association to focus its
2147 financial resources on completing the repair and maintenance
2148 recommendations of the milestone inspection.
2149 10.8. If the officers or directors of an association
2150 willfully and knowingly fail to complete a structural integrity
2151 reserve study pursuant to this paragraph, such failure is a
2152 breach of an officer’s or a and director’s fiduciary
2153 relationship to the unit owners under s. 718.111(1). An officer
2154 or a director of an association must sign an affidavit
2155 acknowledging receipt of the completed structural integrity
2156 reserve study.
2157 11.9. Within 45 days after receiving the structural
2158 integrity reserve study, the association must distribute a copy
2159 of the study to each unit owner or deliver to each unit owner a
2160 notice that the completed study is available for inspection and
2161 copying upon a written request. Distribution of a copy of the
2162 study or notice must be made by United States mail or personal
2163 delivery to the mailing address, property address, or any other
2164 address of the owner provided to fulfill the association’s
2165 notice requirements under this chapter, or by electronic
2166 transmission to the e-mail address or facsimile number provided
2167 to fulfill the association’s notice requirements to unit owners
2168 who previously consented to receive notice by electronic
2169 transmission.
2170 12.10. Within 45 days after receiving the structural
2171 integrity reserve study, the association must provide the
2172 division with a statement indicating that the study was
2173 completed and that the association provided or made available
2174 such study to each unit owner in accordance with this section.
2175 The statement must be provided to the division in the manner
2176 established by the division using a form posted on the
2177 division’s website.
2178 13. The division shall adopt by rule the form for the
2179 structural integrity reserve study in coordination with the
2180 Florida Building Commission.
2181 Section 7. Subsections (1) and (3) of section 718.501,
2182 Florida Statutes, are amended, and paragraph (d) is added to
2183 subsection (2) of that section, to read:
2184 718.501 Authority, responsibility, and duties of Division
2185 of Florida Condominiums, Timeshares, and Mobile Homes.—
2186 (1) The division may enforce and ensure compliance with
2187 this chapter and rules relating to the development,
2188 construction, sale, lease, ownership, operation, and management
2189 of residential condominium units and complaints related to the
2190 procedural completion of milestone inspections under s. 553.899.
2191 In performing its duties, the division has complete jurisdiction
2192 to investigate complaints and enforce compliance with respect to
2193 associations that are still under developer control or the
2194 control of a bulk assignee or bulk buyer pursuant to part VII of
2195 this chapter and complaints against developers, bulk assignees,
2196 or bulk buyers involving improper turnover or failure to
2197 turnover, pursuant to s. 718.301. However, after turnover has
2198 occurred, the division has jurisdiction to review records and
2199 investigate complaints related only to:
2200 (a)1. Procedural aspects and records relating to financial
2201 issues, including annual financial reporting under s.
2202 718.111(13); assessments for common expenses, fines, and
2203 commingling of reserve and operating funds under s. 718.111(14);
2204 use of debit cards for unintended purposes under s. 718.111(15);
2205 the annual operating budget and the allocation of reserve funds
2206 under s. 718.112(2)(f); financial records under s.
2207 718.111(12)(a)11.; and any other record necessary to determine
2208 the revenues and expenses of the association.
2209 2. Elections, including election and voting requirements
2210 under s. 718.112(2)(b) and (d), recall of board members under s.
2211 718.112(2)(l), electronic voting under s. 718.128, and elections
2212 that occur during an emergency under s. 718.1265(1)(a).
2213 3. The maintenance of and unit owner access to association
2214 records under s. 718.111(12).
2215 4. The procedural aspects of meetings, including unit owner
2216 meetings, quorums, voting requirements, proxies, board of
2217 administration meetings, and budget meetings under s.
2218 718.112(2).
2219 5. The disclosure of conflicts of interest under ss.
2220 718.111(1)(a) and 718.3027, including limitations contained in
2221 s. 718.111(3)(f).
2222 6. The removal of a board director or officer under ss.
2223 718.111(1)(a) and (15) and 718.112(2)(p) and (q).
2224 7. The procedural completion of structural integrity
2225 reserve studies under s. 718.112(2)(g) and the milestone
2226 inspections under s. 553.899.
2227 8. Completion of repairs required by a milestone inspection
2228 under s. 553.899.
2229 9.8. Any written inquiries by unit owners to the
2230 association relating to such matters, including written
2231 inquiries under s. 718.112(2)(a)2.
2232 10. The requirement for associations to maintain an
2233 insurance policy or fidelity bonding for all persons who control
2234 or disperse funds of the association under s. 718.111(11)(h).
2235 11. Board member education requirements under s.
2236 718.112(2)(d)5.b.
2237 12. Reporting requirements for structural integrity reserve
2238 studies under subsection (3) and under s. 718.112(2)(g)12.
2239 (b)1. The division may make necessary public or private
2240 investigations within or outside this state to determine whether
2241 any person has violated this chapter or any rule or order
2242 hereunder, to aid in the enforcement of this chapter, or to aid
2243 in the adoption of rules or forms.
2244 2. The division may submit any official written report,
2245 worksheet, or other related paper, or a duly certified copy
2246 thereof, compiled, prepared, drafted, or otherwise made by and
2247 duly authenticated by a financial examiner or analyst to be
2248 admitted as competent evidence in any hearing in which the
2249 financial examiner or analyst is available for cross-examination
2250 and attests under oath that such documents were prepared as a
2251 result of an examination or inspection conducted pursuant to
2252 this chapter.
2253 (c) The division may require or permit any person to file a
2254 statement in writing, under oath or otherwise, as the division
2255 determines, as to the facts and circumstances concerning a
2256 matter to be investigated.
2257 (d) For the purpose of any investigation under this
2258 chapter, the division director or any officer or employee
2259 designated by the division director may administer oaths or
2260 affirmations, subpoena witnesses and compel their attendance,
2261 take evidence, and require the production of any matter which is
2262 relevant to the investigation, including the existence,
2263 description, nature, custody, condition, and location of any
2264 books, documents, or other tangible things and the identity and
2265 location of persons having knowledge of relevant facts or any
2266 other matter reasonably calculated to lead to the discovery of
2267 material evidence. Upon the failure by a person to obey a
2268 subpoena or to answer questions propounded by the investigating
2269 officer and upon reasonable notice to all affected persons, the
2270 division may apply to the circuit court for an order compelling
2271 compliance.
2272 (e) Notwithstanding any remedies available to unit owners
2273 and associations, if the division has reasonable cause to
2274 believe that a violation of any provision of this chapter or
2275 related rule has occurred, the division may institute
2276 enforcement proceedings in its own name against any developer,
2277 bulk assignee, bulk buyer, association, officer, or member of
2278 the board of administration, or its assignees or agents, as
2279 follows:
2280 1. The division may permit a person whose conduct or
2281 actions may be under investigation to waive formal proceedings
2282 and enter into a consent proceeding whereby orders, rules, or
2283 letters of censure or warning, whether formal or informal, may
2284 be entered against the person.
2285 2. The division may issue an order requiring the developer,
2286 bulk assignee, bulk buyer, association, developer-designated
2287 officer, or developer-designated member of the board of
2288 administration, developer-designated assignees or agents, bulk
2289 assignee-designated assignees or agents, bulk buyer-designated
2290 assignees or agents, community association manager, or community
2291 association management firm to cease and desist from the
2292 unlawful practice and take such affirmative action as in the
2293 judgment of the division carry out the purposes of this chapter.
2294 If the division finds that a developer, bulk assignee, bulk
2295 buyer, association, officer, or member of the board of
2296 administration, or its assignees or agents, is violating or is
2297 about to violate any provision of this chapter, any rule adopted
2298 or order issued by the division, or any written agreement
2299 entered into with the division, and presents an immediate danger
2300 to the public requiring an immediate final order, it may issue
2301 an emergency cease and desist order reciting with particularity
2302 the facts underlying such findings. The emergency cease and
2303 desist order is effective for 90 days. If the division begins
2304 nonemergency cease and desist proceedings, the emergency cease
2305 and desist order remains effective until the conclusion of the
2306 proceedings under ss. 120.569 and 120.57.
2307 3. If a developer, bulk assignee, or bulk buyer fails to
2308 pay any restitution determined by the division to be owed, plus
2309 any accrued interest at the highest rate permitted by law,
2310 within 30 days after expiration of any appellate time period of
2311 a final order requiring payment of restitution or the conclusion
2312 of any appeal thereof, whichever is later, the division must
2313 bring an action in circuit or county court on behalf of any
2314 association, class of unit owners, lessees, or purchasers for
2315 restitution, declaratory relief, injunctive relief, or any other
2316 available remedy. The division may also temporarily revoke its
2317 acceptance of the filing for the developer to which the
2318 restitution relates until payment of restitution is made.
2319 4. The division may petition the court for appointment of a
2320 receiver or conservator. If appointed, the receiver or
2321 conservator may take action to implement the court order to
2322 ensure the performance of the order and to remedy any breach
2323 thereof. In addition to all other means provided by law for the
2324 enforcement of an injunction or temporary restraining order, the
2325 circuit court may impound or sequester the property of a party
2326 defendant, including books, papers, documents, and related
2327 records, and allow the examination and use of the property by
2328 the division and a court-appointed receiver or conservator.
2329 5. The division may apply to the circuit court for an order
2330 of restitution whereby the defendant in an action brought under
2331 subparagraph 4. is ordered to make restitution of those sums
2332 shown by the division to have been obtained by the defendant in
2333 violation of this chapter. At the option of the court, such
2334 restitution is payable to the conservator or receiver appointed
2335 under subparagraph 4. or directly to the persons whose funds or
2336 assets were obtained in violation of this chapter.
2337 6. The division may impose a civil penalty against a
2338 developer, bulk assignee, or bulk buyer, or association, or its
2339 assignee or agent, for any violation of this chapter or related
2340 rule. The division may impose a civil penalty individually
2341 against an officer or board member who willfully and knowingly
2342 violates this chapter, an adopted rule, or a final order of the
2343 division; may order the removal of such individual as an officer
2344 or from the board of administration or as an officer of the
2345 association; and may prohibit such individual from serving as an
2346 officer or on the board of a community association for a period
2347 of time. The term “willfully and knowingly” means that the
2348 division informed the officer or board member that his or her
2349 action or intended action violates this chapter, a rule adopted
2350 under this chapter, or a final order of the division and that
2351 the officer or board member refused to comply with the
2352 requirements of this chapter, a rule adopted under this chapter,
2353 or a final order of the division. The division, before
2354 initiating formal agency action under chapter 120, must afford
2355 the officer or board member an opportunity to voluntarily
2356 comply, and an officer or board member who complies within 10
2357 days is not subject to a civil penalty. A penalty may be imposed
2358 on the basis of each day of continuing violation, but the
2359 penalty for any offense may not exceed $5,000. The division
2360 shall adopt, by rule, penalty guidelines applicable to possible
2361 violations or to categories of violations of this chapter or
2362 rules adopted by the division. The guidelines must specify a
2363 meaningful range of civil penalties for each such violation of
2364 the statute and rules and must be based upon the harm caused by
2365 the violation, upon the repetition of the violation, and upon
2366 such other factors deemed relevant by the division. For example,
2367 the division may consider whether the violations were committed
2368 by a developer, bulk assignee, or bulk buyer, or owner
2369 controlled association, the size of the association, and other
2370 factors. The guidelines must designate the possible mitigating
2371 or aggravating circumstances that justify a departure from the
2372 range of penalties provided by the rules. It is the legislative
2373 intent that minor violations be distinguished from those which
2374 endanger the health, safety, or welfare of the condominium
2375 residents or other persons and that such guidelines provide
2376 reasonable and meaningful notice to the public of likely
2377 penalties that may be imposed for proscribed conduct. This
2378 subsection does not limit the ability of the division to
2379 informally dispose of administrative actions or complaints by
2380 stipulation, agreed settlement, or consent order. All amounts
2381 collected shall be deposited with the Chief Financial Officer to
2382 the credit of the Division of Florida Condominiums, Timeshares,
2383 and Mobile Homes Trust Fund. If a developer, bulk assignee, or
2384 bulk buyer fails to pay the civil penalty and the amount deemed
2385 to be owed to the association, the division shall issue an order
2386 directing that such developer, bulk assignee, or bulk buyer
2387 cease and desist from further operation until such time as the
2388 civil penalty is paid or may pursue enforcement of the penalty
2389 in a court of competent jurisdiction. If an association fails to
2390 pay the civil penalty, the division shall pursue enforcement in
2391 a court of competent jurisdiction, and the order imposing the
2392 civil penalty or the cease and desist order is not effective
2393 until 20 days after the date of such order. Any action commenced
2394 by the division shall be brought in the county in which the
2395 division has its executive offices or in the county in which the
2396 violation occurred.
2397 7. If a unit owner presents the division with proof that
2398 the unit owner has requested access to official records in
2399 writing by certified mail, and that after 10 days the unit owner
2400 again made the same request for access to official records in
2401 writing by certified mail, and that more than 10 days has
2402 elapsed since the second request and the association has still
2403 failed or refused to provide access to official records as
2404 required by this chapter, the division shall issue a subpoena
2405 requiring production of the requested records at the location in
2406 which the records are kept pursuant to s. 718.112. Upon receipt
2407 of the records, the division must provide to the unit owner who
2408 was denied access to such records the produced official records
2409 without charge.
2410 8. In addition to subparagraph 6., the division may seek
2411 the imposition of a civil penalty through the circuit court for
2412 any violation for which the division may issue a notice to show
2413 cause under paragraph (t). The civil penalty shall be at least
2414 $500 but no more than $5,000 for each violation. The court may
2415 also award to the prevailing party court costs and reasonable
2416 attorney fees and, if the division prevails, may also award
2417 reasonable costs of investigation.
2418 9. The division may issue citations and promulgate rules to
2419 provide for citation bases and citation procedures in accordance
2420 with this paragraph.
2421 (f) The division may prepare and disseminate a prospectus
2422 and other information to assist prospective owners, purchasers,
2423 lessees, and developers of residential condominiums in assessing
2424 the rights, privileges, and duties pertaining thereto.
2425 (g) The division may adopt rules to administer and enforce
2426 this chapter.
2427 (h) The division shall establish procedures for providing
2428 notice to an association and the developer, bulk assignee, or
2429 bulk buyer during the period in which the developer, bulk
2430 assignee, or bulk buyer controls the association if the division
2431 is considering the issuance of a declaratory statement with
2432 respect to the declaration of condominium or any related
2433 document governing such condominium community.
2434 (i) The division shall furnish each association that pays
2435 the fees required by paragraph (2)(a) a copy of this chapter, as
2436 amended, and the rules adopted thereto on an annual basis.
2437 (j) The division shall annually provide each association
2438 with a summary of declaratory statements and formal legal
2439 opinions relating to the operations of condominiums which were
2440 rendered by the division during the previous year.
2441 (k) The division shall provide training and educational
2442 programs for condominium association board members and unit
2443 owners. The training may, in the division’s discretion, include
2444 web-based electronic media and live training and seminars in
2445 various locations throughout the state. The division may review
2446 and approve education and training programs for board members
2447 and unit owners offered by providers and shall maintain a
2448 current list of approved programs and providers and make such
2449 list available to board members and unit owners in a reasonable
2450 and cost-effective manner. The division shall provide the
2451 division-approved provider with the template certificate for
2452 issuance directly to the association’s board of directors who
2453 have satisfactorily completed the requirements under s.
2454 718.112(2)(d). The division shall adopt rules to implement this
2455 section.
2456 (l) The division shall maintain a toll-free telephone
2457 number accessible to condominium unit owners.
2458 (m) The division shall develop a program to certify both
2459 volunteer and paid mediators to provide mediation of condominium
2460 disputes. The division shall provide, upon request, a list of
2461 such mediators to any association, unit owner, or other
2462 participant in alternative dispute resolution proceedings under
2463 s. 718.1255 requesting a copy of the list. The division shall
2464 include on the list of volunteer mediators only the names of
2465 persons who have received at least 20 hours of training in
2466 mediation techniques or who have mediated at least 20 disputes.
2467 In order to become initially certified by the division, paid
2468 mediators must be certified by the Supreme Court to mediate
2469 court cases in county or circuit courts. However, the division
2470 may adopt, by rule, additional factors for the certification of
2471 paid mediators, which must be related to experience, education,
2472 or background. Any person initially certified as a paid mediator
2473 by the division must, in order to continue to be certified,
2474 comply with the factors or requirements adopted by rule.
2475 (n) If a complaint is made, the division must conduct its
2476 inquiry with due regard for the interests of the affected
2477 parties. Within 30 days after receipt of a complaint, the
2478 division shall acknowledge the complaint in writing and notify
2479 the complainant whether the complaint is within the jurisdiction
2480 of the division and whether additional information is needed by
2481 the division from the complainant. The division shall conduct
2482 its investigation and, within 90 days after receipt of the
2483 original complaint or of timely requested additional
2484 information, take action upon the complaint. However, the
2485 failure to complete the investigation within 90 days does not
2486 prevent the division from continuing the investigation,
2487 accepting or considering evidence obtained or received after 90
2488 days, or taking administrative action if reasonable cause exists
2489 to believe that a violation of this chapter or a rule has
2490 occurred. If an investigation is not completed within the time
2491 limits established in this paragraph, the division shall, on a
2492 monthly basis, notify the complainant in writing of the status
2493 of the investigation. When reporting its action to the
2494 complainant, the division shall inform the complainant of any
2495 right to a hearing under ss. 120.569 and 120.57. The division
2496 may adopt rules regarding the submission of a complaint against
2497 an association.
2498 (o) Condominium association directors, officers, and
2499 employees; condominium developers; bulk assignees, bulk buyers,
2500 and community association managers; and community association
2501 management firms have an ongoing duty to reasonably cooperate
2502 with the division in any investigation under this section. The
2503 division shall refer to local law enforcement authorities any
2504 person whom the division believes has altered, destroyed,
2505 concealed, or removed any record, document, or thing required to
2506 be kept or maintained by this chapter with the purpose to impair
2507 its verity or availability in the department’s investigation.
2508 The division shall refer to local law enforcement authorities
2509 any person whom the division believes has engaged in fraud,
2510 theft, embezzlement, or other criminal activity or when the
2511 division has cause to believe that fraud, theft, embezzlement,
2512 or other criminal activity has occurred.
2513 (p) The division director or any officer or employee of the
2514 division and the condominium ombudsman or any employee of the
2515 Office of the Condominium Ombudsman may attend and observe any
2516 meeting of the board of administration or any unit owner
2517 meeting, including any meeting of a subcommittee or special
2518 committee, which is open to members of the association for the
2519 purpose of performing the duties of the division or the Office
2520 of the Condominium Ombudsman under this chapter.
2521 (q) The division may:
2522 1. Contract with agencies in this state or other
2523 jurisdictions to perform investigative functions; or
2524 2. Accept grants-in-aid from any source.
2525 (r) The division shall cooperate with similar agencies in
2526 other jurisdictions to establish uniform filing procedures and
2527 forms, public offering statements, advertising standards, and
2528 rules and common administrative practices.
2529 (s) The division shall consider notice to a developer, bulk
2530 assignee, or bulk buyer to be complete when it is delivered to
2531 the address of the developer, bulk assignee, or bulk buyer
2532 currently on file with the division.
2533 (t) In addition to its enforcement authority, the division
2534 may issue a notice to show cause, which must provide for a
2535 hearing, upon written request, in accordance with chapter 120.
2536 (u) If the division receives a complaint regarding access
2537 to official records on the association’s website or through an
2538 application that can be downloaded on a mobile device under s.
2539 718.111(12)(g), the division may request access to the
2540 association’s website or application and investigate. The
2541 division may adopt rules to carry out this paragraph.
2542 (v) The division shall submit to the Governor, the
2543 President of the Senate, the Speaker of the House of
2544 Representatives, and the chairs of the legislative
2545 appropriations committees an annual report that includes, but
2546 need not be limited to, the number of training programs provided
2547 for condominium association board members and unit owners, the
2548 number of complaints received by type, the number and percent of
2549 complaints acknowledged in writing within 30 days and the number
2550 and percent of investigations acted upon within 90 days in
2551 accordance with paragraph (n), and the number of investigations
2552 exceeding the 90-day requirement. The annual report must also
2553 include an evaluation of the division’s core business processes
2554 and make recommendations for improvements, including statutory
2555 changes. After December 31, 2024, the division must include a
2556 list of the associations that have completed the structural
2557 integrity reserve study required under s. 718.112(2)(g). The
2558 report shall be submitted by September 30 following the end of
2559 the fiscal year.
2560 (2)
2561 (d) Each condominium association must create and maintain
2562 an online account with the division, as required in subsection
2563 (3).
2564 (3) On or before October 1, 2025, all condominium
2565 associations must create and maintain an online account with the
2566 division and provide information requested by the division in an
2567 electronic format determined by the division. The division shall
2568 adopt rules to implement this subsection. The division may
2569 require condominium associations to provide such information no
2570 more than once per year, except that the division may require
2571 condominium associations to update the contact information in
2572 paragraph (a) within 30 days after any change. The division
2573 shall provide a condominium association at least a 45-day notice
2574 of any requirement to provide any information after the
2575 condominium association initially creates an online account. The
2576 information that the division may require from condominium
2577 associations is limited to:
2578 (a) Contact information for the association that includes:
2579 1. Name of the association.
2580 2. The physical address of the condominium property.
2581 3. Mailing address and county of the association.
2582 4. E-mail address and telephone number for the association.
2583 5. Name and board title for each member of the
2584 association’s board.
2585 6. Name and contact information of the association’s
2586 community association manager or community association
2587 management firm, if applicable.
2588 7. The hyperlink or website address of the association’s
2589 website, if applicable.
2590 (b) Total number of buildings and for each building in the
2591 association:
2592 1. Total number of stories, including both habitable and
2593 uninhabitable stories.
2594 2. Total number of units.
2595 3. Age of each building based on the certificate of
2596 occupancy.
2597 4. Any construction commenced within the common elements
2598 within the calendar year.
2599 (c) The association’s assessments, including the:
2600 1. Amount of assessment or special assessment by unit type,
2601 including reserves.
2602 2. Purpose of the assessment or special assessment.
2603 3. Name of the financial institution or institutions with
2604 which the association maintains accounts.
2605 (d) A copy of any structural integrity reserve study and
2606 any associated materials requested by the department within 5
2607 business days after such request, in a manner prescribed by the
2608 department.
2609 (a) On or before January 1, 2023, condominium associations
2610 existing on or before July 1, 2022, must provide the following
2611 information to the division in writing, by e-mail, United States
2612 Postal Service, commercial delivery service, or hand delivery,
2613 at a physical address or e-mail address provided by the division
2614 and on a form posted on the division’s website:
2615 1. The number of buildings on the condominium property that
2616 are three stories or higher in height.
2617 2. The total number of units in all such buildings.
2618 3. The addresses of all such buildings.
2619 4. The counties in which all such buildings are located.
2620 (b) The division must compile a list of the number of
2621 buildings on condominium property that are three stories or
2622 higher in height, which is searchable by county, and must post
2623 the list on the division’s website. This list must include all
2624 of the following information:
2625 1. The name of each association with buildings on the
2626 condominium property that are three stories or higher in height.
2627 2. The number of such buildings on each association’s
2628 property.
2629 3. The addresses of all such buildings.
2630 4. The counties in which all such buildings are located.
2631 (c) An association must provide an update in writing to the
2632 division if there are any changes to the information in the list
2633 under paragraph (b) within 6 months after the change.
2634 Section 8. Paragraph (d) of subsection (1) and paragraphs
2635 (d) and (e) of subsection (2) of section 718.503, Florida
2636 Statutes, are amended, to read:
2637 718.503 Developer disclosure prior to sale; nondeveloper
2638 unit owner disclosure prior to sale; voidability.—
2639 (1) DEVELOPER DISCLOSURE.—
2640 (d) Milestone inspection, turnover inspection report, or
2641 structural integrity reserve study.—If the association is
2642 required to have completed a milestone inspection as described
2643 in s. 553.899, a turnover inspection report for a turnover
2644 inspection performed on or after July 1, 2023, or a structural
2645 integrity reserve study, and the association has not completed
2646 the milestone inspection, the turnover inspection report, or the
2647 structural integrity reserve study, each contract entered into
2648 after December 31, 2024, for the sale of a residential unit
2649 shall contain in conspicuous type a statement indicating that
2650 the association is required to have a milestone inspection, a
2651 turnover inspection report, or a structural integrity reserve
2652 study and has not completed such inspection, report, or study,
2653 as appropriate. If the association is not required to have a
2654 milestone inspection as described in s. 553.899 or a structural
2655 integrity reserve study, each contract entered into after
2656 December 31, 2024, for the sale of a residential unit shall
2657 contain in conspicuous type a statement indicating that the
2658 association is not required to have a milestone inspection or a
2659 structural integrity reserve study, as appropriate. If the
2660 association has completed a milestone inspection as described in
2661 s. 553.899, a turnover inspection report for a turnover
2662 inspection performed on or after July 1, 2023, or a structural
2663 integrity reserve study, each contract entered into after
2664 December 31, 2024, for the sale of a residential unit shall
2665 contain in conspicuous type:
2666 1. A clause which states: THE BUYER HEREBY ACKNOWLEDGES
2667 THAT BUYER HAS BEEN PROVIDED A CURRENT COPY OF THE INSPECTOR
2668 PREPARED SUMMARY OF THE MILESTONE INSPECTION REPORT AS DESCRIBED
2669 IN SECTION 553.899, FLORIDA STATUTES, IF APPLICABLE; A COPY OF
2670 THE TURNOVER INSPECTION REPORT DESCRIBED IN SECTION
2671 718.301(4)(p) AND (q), FLORIDA STATUTES, IF APPLICABLE; AND A
2672 COPY OF THE ASSOCIATION’S MOST RECENT STRUCTURAL INTEGRITY
2673 RESERVE STUDY DESCRIBED IN SECTIONS 718.103(26) AND
2674 718.112(2)(g), FLORIDA STATUTES, IF APPLICABLE, MORE THAN 15
2675 DAYS, EXCLUDING SATURDAYS, SUNDAYS, AND LEGAL HOLIDAYS, BEFORE
2676 PRIOR TO EXECUTION OF THIS CONTRACT; and
2677 2. A clause which states: THIS AGREEMENT IS VOIDABLE BY
2678 BUYER BY DELIVERING WRITTEN NOTICE OF THE BUYER’S INTENTION TO
2679 CANCEL WITHIN 15 DAYS, EXCLUDING SATURDAYS, SUNDAYS, AND LEGAL
2680 HOLIDAYS, AFTER THE DATE OF EXECUTION OF THIS AGREEMENT BY THE
2681 BUYER AND RECEIPT BY BUYER OF A CURRENT COPY OF THE INSPECTOR
2682 PREPARED SUMMARY OF THE MILESTONE INSPECTION REPORT AS DESCRIBED
2683 IN SECTION 553.899, FLORIDA STATUTES, IF APPLICABLE; A COPY OF
2684 THE TURNOVER INSPECTION REPORT DESCRIBED IN SECTION
2685 718.301(4)(p) AND (q), FLORIDA STATUTES, IF APPLICABLE; AND A
2686 COPY OF THE ASSOCIATION’S MOST RECENT STRUCTURAL INTEGRITY
2687 RESERVE STUDY DESCRIBED IN SECTIONS 718.103(26) AND
2688 718.112(2)(g), FLORIDA STATUTES, IF APPLICABLE. ANY PURPORTED
2689 WAIVER OF THESE VOIDABILITY RIGHTS SHALL BE OF NO EFFECT. BUYER
2690 MAY EXTEND THE TIME FOR CLOSING FOR A PERIOD OF NOT MORE THAN 15
2691 DAYS, EXCLUDING SATURDAYS, SUNDAYS, AND LEGAL HOLIDAYS, AFTER
2692 THE BUYER RECEIVES A CURRENT COPY OF THE INSPECTOR-PREPARED
2693 SUMMARY OF THE MILESTONE INSPECTION REPORT AS DESCRIBED IN
2694 SECTION 553.899, FLORIDA STATUTES; A COPY OF THE TURNOVER
2695 INSPECTION REPORT DESCRIBED IN SECTION 718.301(4)(p) AND (q),
2696 FLORIDA STATUTES; OR A COPY OF THE ASSOCIATION’S MOST RECENT
2697 STRUCTURAL INTEGRITY RESERVE STUDY DESCRIBED IN SECTIONS
2698 718.103(26) AND 718.112(2)(g), FLORIDA STATUTES, IF REQUESTED IN
2699 WRITING. BUYER’S RIGHT TO VOID THIS AGREEMENT SHALL TERMINATE AT
2700 CLOSING.
2701
2702 A contract that does not conform to the requirements of this
2703 paragraph is voidable at the option of the purchaser before
2704 prior to closing.
2705 (2) NONDEVELOPER DISCLOSURE.—
2706 (d) Each contract entered into after July 1, 1992, for the
2707 resale of a residential unit must shall contain in conspicuous
2708 type either:
2709 1. A clause which states: THE BUYER HEREBY ACKNOWLEDGES
2710 THAT BUYER HAS BEEN PROVIDED A CURRENT COPY OF THE DECLARATION
2711 OF CONDOMINIUM, ARTICLES OF INCORPORATION OF THE ASSOCIATION,
2712 BYLAWS AND RULES OF THE ASSOCIATION, A COPY OF THE MOST RECENT
2713 ANNUAL FINANCIAL STATEMENT AND ANNUAL BUDGET, AND FREQUENTLY
2714 ASKED QUESTIONS AND ANSWERS DOCUMENT MORE THAN 7 3 DAYS,
2715 EXCLUDING SATURDAYS, SUNDAYS, AND LEGAL HOLIDAYS, BEFORE PRIOR
2716 TO EXECUTION OF THIS CONTRACT; or
2717 2. A clause which states: THIS AGREEMENT IS VOIDABLE BY
2718 BUYER BY DELIVERING WRITTEN NOTICE OF THE BUYER’S INTENTION TO
2719 CANCEL WITHIN 7 3 DAYS, EXCLUDING SATURDAYS, SUNDAYS, AND LEGAL
2720 HOLIDAYS, AFTER THE DATE OF EXECUTION OF THIS AGREEMENT BY THE
2721 BUYER AND RECEIPT BY BUYER OF A CURRENT COPY OF THE DECLARATION
2722 OF CONDOMINIUM, ARTICLES OF INCORPORATION, BYLAWS AND RULES OF
2723 THE ASSOCIATION, A COPY OF THE MOST RECENT ANNUAL FINANCIAL
2724 STATEMENT AND ANNUAL BUDGET, AND FREQUENTLY ASKED QUESTIONS AND
2725 ANSWERS DOCUMENT IF SO REQUESTED IN WRITING. ANY PURPORTED
2726 WAIVER OF THESE VOIDABILITY RIGHTS SHALL BE OF NO EFFECT. BUYER
2727 MAY EXTEND THE TIME FOR CLOSING FOR A PERIOD OF NOT MORE THAN 7
2728 3 DAYS, EXCLUDING SATURDAYS, SUNDAYS, AND LEGAL HOLIDAYS, AFTER
2729 THE BUYER RECEIVES THE DECLARATION, ARTICLES OF INCORPORATION,
2730 BYLAWS AND RULES OF THE ASSOCIATION, AND A COPY OF THE MOST
2731 RECENT YEAR-END FINANCIAL STATEMENT AND ANNUAL BUDGET
2732 INFORMATION AND FREQUENTLY ASKED QUESTIONS AND ANSWERS DOCUMENT
2733 IF REQUESTED IN WRITING. BUYER’S RIGHT TO VOID THIS AGREEMENT
2734 SHALL TERMINATE AT CLOSING.
2735
2736 A contract that does not conform to the requirements of this
2737 paragraph is voidable at the option of the purchaser before
2738 prior to closing.
2739 (e) If the association is required to have completed a
2740 milestone inspection as described in s. 553.899, a turnover
2741 inspection report for a turnover inspection performed on or
2742 after July 1, 2023, or a structural integrity reserve study, and
2743 the association has not completed the milestone inspection, the
2744 turnover inspection report, or the structural integrity reserve
2745 study, each contract entered into after December 31, 2024, for
2746 the sale of a residential unit shall contain in conspicuous type
2747 a statement indicating that the association is required to have
2748 a milestone inspection, a turnover inspection report, or a
2749 structural integrity reserve study and has not completed such
2750 inspection, report, or study, as appropriate. If the association
2751 is not required to have a milestone inspection as described in
2752 s. 553.899 or a structural integrity reserve study, each
2753 contract entered into after December 31, 2024, for the sale of a
2754 residential unit shall contain in conspicuous type a statement
2755 indicating that the association is not required to have a
2756 milestone inspection or a structural integrity reserve study, as
2757 appropriate. If the association has completed a milestone
2758 inspection as described in s. 553.899, a turnover inspection
2759 report for a turnover inspection performed on or after July 1,
2760 2023, or a structural integrity reserve study, each contract
2761 entered into after December 31, 2024, for the resale of a
2762 residential unit shall contain in conspicuous type:
2763 1. A clause which states: THE BUYER HEREBY ACKNOWLEDGES
2764 THAT BUYER HAS BEEN PROVIDED A CURRENT COPY OF THE INSPECTOR
2765 PREPARED SUMMARY OF THE MILESTONE INSPECTION REPORT AS DESCRIBED
2766 IN SECTION 553.899, FLORIDA STATUTES, IF APPLICABLE; A COPY OF
2767 THE TURNOVER INSPECTION REPORT DESCRIBED IN SECTION
2768 718.301(4)(p) AND (q), FLORIDA STATUTES, IF APPLICABLE; AND A
2769 COPY OF THE ASSOCIATION’S MOST RECENT STRUCTURAL INTEGRITY
2770 RESERVE STUDY DESCRIBED IN SECTIONS 718.103(26) AND
2771 718.112(2)(g), FLORIDA STATUTES, IF APPLICABLE, MORE THAN 7 3
2772 DAYS, EXCLUDING SATURDAYS, SUNDAYS, AND LEGAL HOLIDAYS, BEFORE
2773 PRIOR TO EXECUTION OF THIS CONTRACT; and
2774 2. A clause which states: THIS AGREEMENT IS VOIDABLE BY
2775 BUYER BY DELIVERING WRITTEN NOTICE OF THE BUYER’S INTENTION TO
2776 CANCEL WITHIN 7 3 DAYS, EXCLUDING SATURDAYS, SUNDAYS, AND LEGAL
2777 HOLIDAYS, AFTER THE DATE OF EXECUTION OF THIS AGREEMENT BY THE
2778 BUYER AND RECEIPT BY BUYER OF A CURRENT COPY OF THE INSPECTOR
2779 PREPARED SUMMARY OF THE MILESTONE INSPECTION REPORT AS DESCRIBED
2780 IN SECTION 553.899, FLORIDA STATUTES, IF APPLICABLE; A COPY OF
2781 THE TURNOVER INSPECTION REPORT DESCRIBED IN SECTION
2782 718.301(4)(p) AND (q), FLORIDA STATUTES, IF APPLICABLE; AND A
2783 COPY OF THE ASSOCIATION’S MOST RECENT STRUCTURAL INTEGRITY
2784 RESERVE STUDY DESCRIBED IN SECTIONS 718.103(26) AND
2785 718.112(2)(g), FLORIDA STATUTES, IF APPLICABLE. ANY PURPORTED
2786 WAIVER OF THESE VOIDABILITY RIGHTS SHALL BE OF NO EFFECT. BUYER
2787 MAY EXTEND THE TIME FOR CLOSING FOR A PERIOD OF NOT MORE THAN 7
2788 3 DAYS, EXCLUDING SATURDAYS, SUNDAYS, AND LEGAL HOLIDAYS, AFTER
2789 THE BUYER RECEIVES A CURRENT COPY OF THE INSPECTOR-PREPARED
2790 SUMMARY OF THE MILESTONE INSPECTION REPORT AS DESCRIBED IN
2791 SECTION 553.899, FLORIDA STATUTES; A COPY OF THE TURNOVER
2792 INSPECTION REPORT DESCRIBED IN SECTION 718.301(4)(p) AND (q),
2793 FLORIDA STATUTES; OR A COPY OF THE ASSOCIATION’S MOST RECENT
2794 STRUCTURAL INTEGRITY RESERVE STUDY DESCRIBED IN SECTIONS
2795 718.103(26) AND 718.112(2)(g), FLORIDA STATUTES, IF REQUESTED IN
2796 WRITING. BUYER’S RIGHT TO VOID THIS AGREEMENT SHALL TERMINATE AT
2797 CLOSING.
2798
2799 A contract that does not conform to the requirements of this
2800 paragraph is voidable at the option of the purchaser before
2801 prior to closing.
2802 Section 9. Section 8 of chapter 2024-244, Laws of Florida,
2803 is amended to read:
2804 Section 8. Effective January 1, 2026, paragraph (g) of
2805 subsection (12) of section 718.111, Florida Statutes, as amended
2806 by this act, is amended to read:
2807 718.111 The association.—
2808 (12) OFFICIAL RECORDS.—
2809 (g)1. An association managing a condominium with 25 or more
2810 units which does not contain timeshare units shall post digital
2811 copies of the documents specified in subparagraph 2. on its
2812 website or make such documents available through an application
2813 that can be downloaded on a mobile device. Unless a shorter
2814 period is otherwise required, a document must be made available
2815 on the association’s website or made available for download
2816 through an application on a mobile device within 30 days after
2817 the association receives or creates an official record specified
2818 in subparagraph 2.
2819 a. The association’s website or application must be:
2820 (I) An independent website, application, or web portal
2821 wholly owned and operated by the association; or
2822 (II) A website, application, or web portal operated by a
2823 third-party provider with whom the association owns, leases,
2824 rents, or otherwise obtains the right to operate a web page,
2825 subpage, web portal, collection of subpages or web portals, or
2826 an application which is dedicated to the association’s
2827 activities and on which required notices, records, and documents
2828 may be posted or made available by the association.
2829 b. The association’s website or application must be
2830 accessible through the Internet and must contain a subpage, web
2831 portal, or other protected electronic location that is
2832 inaccessible to the general public and accessible only to unit
2833 owners and employees of the association.
2834 c. Upon a unit owner’s written request, the association
2835 must provide the unit owner with a username and password and
2836 access to the protected sections of the association’s website or
2837 application which contain any notices, records, or documents
2838 that must be electronically provided.
2839 2. A current copy of the following documents must be posted
2840 in digital format on the association’s website or application:
2841 a. The recorded declaration of condominium of each
2842 condominium operated by the association and each amendment to
2843 each declaration.
2844 b. The recorded bylaws of the association and each
2845 amendment to the bylaws.
2846 c. The articles of incorporation of the association, or
2847 other documents creating the association, and each amendment to
2848 the articles of incorporation or other documents. The copy
2849 posted pursuant to this sub-subparagraph must be a copy of the
2850 articles of incorporation filed with the Department of State.
2851 d. The rules of the association.
2852 e. The approved minutes of all board of administration
2853 meetings over the preceding 12 months.
2854 f. The video recording or a hyperlink to the video
2855 recording for all meetings of the association, the board of
2856 administration, any committee, and the unit owners which are
2857 conducted by video conference over the preceding 12 months.
2858 g. A list of all executory contracts or documents to which
2859 the association is a party or under which the association or the
2860 unit owners have an obligation or responsibility and, after
2861 bidding for the related materials, equipment, or services has
2862 closed, a list of bids received by the association within the
2863 past year. Summaries of bids for materials, equipment, or
2864 services which exceed $500 must be maintained on the website or
2865 application for 1 year. In lieu of summaries, complete copies of
2866 the bids may be posted.
2867 h.f. The annual budget required by s. 718.112(2)(f) and any
2868 proposed budget to be considered at the annual meeting.
2869 i.g. The financial report required by subsection (13) and
2870 any monthly income or expense statement to be considered at a
2871 meeting.
2872 j.h. The certification of each director required by s.
2873 718.112(2)(d)4.b.
2874 k.i. All contracts or transactions between the association
2875 and any director, officer, corporation, firm, or association
2876 that is not an affiliated condominium association or any other
2877 entity in which an association director is also a director or
2878 officer and financially interested.
2879 l.j. Any contract or document regarding a conflict of
2880 interest or possible conflict of interest as provided in ss.
2881 468.4335, 468.436(2)(b)6., and 718.3027(3).
2882 m.k. The notice of any unit owner meeting and the agenda
2883 for the meeting, as required by s. 718.112(2)(d)3., no later
2884 than 14 days before the meeting. The notice must be posted in
2885 plain view on the front page of the website or application, or
2886 on a separate subpage of the website or application labeled
2887 “Notices” which is conspicuously visible and linked from the
2888 front page. The association must also post on its website or
2889 application any document to be considered and voted on by the
2890 owners during the meeting or any document listed on the agenda
2891 at least 7 days before the meeting at which the document or the
2892 information within the document will be considered.
2893 n.l. Notice of any board meeting, the agenda, and any other
2894 document required for the meeting as required by s.
2895 718.112(2)(c), which must be posted no later than the date
2896 required for notice under s. 718.112(2)(c).
2897 o.m. The inspection reports described in ss. 553.899 and
2898 718.301(4)(p) and any other inspection report relating to a
2899 structural or life safety inspection of condominium property.
2900 p.n. The association’s most recent structural integrity
2901 reserve study, if applicable.
2902 q.o. Copies of all building permits issued for ongoing or
2903 planned construction.
2904 r. A copy of all affidavits required by this chapter.
2905 s. A copy of all investment policy statements adopted
2906 pursuant to paragraph (16)(c), and all financial statements
2907 related to the association’s investment of funds under
2908 subsection (16).
2909 3. The association shall ensure that the information and
2910 records described in paragraph (c), which are not allowed to be
2911 accessible to unit owners, are not posted on the association’s
2912 website or application. If protected information or information
2913 restricted from being accessible to unit owners is included in
2914 documents that are required to be posted on the association’s
2915 website or application, the association shall ensure the
2916 information is redacted before posting the documents.
2917 Notwithstanding the foregoing, the association or its agent is
2918 not liable for disclosing information that is protected or
2919 restricted under this paragraph unless such disclosure was made
2920 with a knowing or intentional disregard of the protected or
2921 restricted nature of such information.
2922 4. The failure of the association to post information
2923 required under subparagraph 2. is not in and of itself
2924 sufficient to invalidate any action or decision of the
2925 association’s board or its committees.
2926 Section 10. Section 31 of chapter 2024-244, Laws of
2927 Florida, is amended to read:
2928 Section 31. The amendments made to ss. 718.103(14) and
2929 718.202(3) and 718.407(1), (2), and (6), Florida Statutes, as
2930 created by this act, may not are intended to clarify existing
2931 law and shall apply retroactively and shall only apply to
2932 condominiums for which declarations were initially recorded on
2933 or after October 1, 2024. However, such amendments do not revive
2934 or reinstate any right or interest that has been fully and
2935 finally adjudicated as invalid before October 1, 2024.
2936 Section 11. Subsection (13) is added to section 719.104,
2937 Florida Statutes, to read:
2938 719.104 Cooperatives; access to units; records; financial
2939 reports; assessments; purchase of leases.—
2940 (13) INVESTMENT OF ASSOCIATION FUNDS.—
2941 (a) A board shall, in fulfilling its duty to manage
2942 operating and reserve funds of its association, use best efforts
2943 to make prudent investment decisions that carefully consider
2944 risk and return in an effort to maximize returns on invested
2945 funds.
2946 (b) An association may invest reserve funds in one or any
2947 combination of certificates of deposit or in depository accounts
2948 at a community bank, savings bank, commercial bank, savings and
2949 loan association, or credit union. Upon a majority vote of the
2950 voting interests, an association may invest reserve funds in
2951 investments other than certificates of deposit or depository
2952 accounts at a community bank, savings bank, commercial bank,
2953 savings and loan association, or credit union, provided the
2954 association complies with paragraphs (c)-(g). Notwithstanding
2955 any declaration, only funds identified as reserve funds may be
2956 invested pursuant to paragraphs (c)-(g). Paragraphs (c)-(g) do
2957 not apply to funds invested in one or any combination of
2958 certificates of deposit or depository accounts at a community
2959 bank, savings bank, commercial bank, savings and loan
2960 association, or credit union.
2961 (c) The board shall create an investment committee composed
2962 of at least two board members and two-unit unit members who are
2963 unit owners but not board members. The board shall also adopt
2964 rules for invested funds, including, but not limited to, rules
2965 requiring periodic reviews of any investment manager’s
2966 performance, the development of an investment policy statement,
2967 and that all meetings of the investment committee be recorded
2968 and made part of the official records of the association. The
2969 investment policy statement developed pursuant to this paragraph
2970 must, at a minimum, address risk, liquidity, and benchmark
2971 measurements; authorized classes of investments; authorized
2972 investment mixes; limitations on authority relating to
2973 investment transactions; requirements for projected reserve
2974 expenditures within, at minimum, the next 24 months to be held
2975 in cash or cash equivalents; projected expenditures relating to
2976 an inspection performed pursuant to s. 553.899; and protocols
2977 for proxy response.
2978 (d) The investment committee shall recommend investment
2979 advisers to the board, and the board shall select one of the
2980 recommended investment advisers to provide services to the
2981 association. Such investment advisers must be registered or have
2982 notice filed under s. 517.12. The selected investment adviser
2983 and any representative or association of the investment adviser
2984 may not be related by affinity or consanguinity to, or under
2985 common ownership with, any board member, community management
2986 company, reserve study provider, or a co-owner of a unit with a
2987 board member or investment committee member. The investment
2988 adviser shall comply with the prudent investor rule in s.
2989 518.11. The investment adviser shall act as a fiduciary to the
2990 association in compliance with the standards set forth in the
2991 Employee Retirement Income Security Act of 1974 at 29 U.S.C. s.
2992 1104(a)(1)(A)-(C). In case of conflict with other laws
2993 authorizing investments, the investment and fiduciary standards
2994 set forth in this subsection must prevail. If at any time the
2995 investment committee determines that an investment adviser does
2996 not meet the requirements of this section, the investment
2997 committee must recommend a replacement investment adviser to the
2998 board.
2999 (e) At least once each calendar year, or sooner if a
3000 substantial financial obligation of the association becomes
3001 known to the board, the association must provide the investment
3002 adviser with the association’s investment policy statement, the
3003 most recent reserve study report, the association’s structural
3004 integrity report, and the financial reports prepared pursuant to
3005 subsection (13). If there is no recent reserve study report, the
3006 association must provide the investment adviser with a good
3007 faith estimate disclosing the annual amount of reserve funds
3008 necessary for the association to fund reserves fully for the
3009 life of each reserve component and each component’s
3010 redundancies. The investment adviser shall annually review these
3011 documents and provide the association with a portfolio
3012 allocation model that is suitably structured and prudently
3013 designed to match projected annual reserve fund requirements and
3014 liability, assets, and liquidity requirements. The investment
3015 adviser shall prepare a funding projection for each reserve
3016 component, including any of the component’s redundancies. The
3017 association shall have available at all times a minimum of 24
3018 months of projected reserves in cash or cash equivalents.
3019 (f) Portfolios managed by the investment adviser may
3020 contain any type of investment necessary to meet the objectives
3021 in the investment policy statement; however, portfolios may not
3022 contain stocks, securities, or other obligations that the State
3023 Board of Administration is prohibited from investing in under s.
3024 215.471, s. 215.4725, or s. 215.473 or that state agencies are
3025 prohibited from investing in under s. 215.472, as determined by
3026 the investment adviser. Any funds invested by the investment
3027 adviser must be held in third-party custodial accounts that are
3028 subject to insurance coverage by the Securities Investor
3029 Protection Corporation in an amount equal to or greater than the
3030 invested amount. The investment adviser may withdraw investment
3031 fees, expenses, and commissions from invested funds.
3032 (g) The investment adviser shall:
3033 1. Annually provide the association with a written
3034 certification of compliance with this section and a list of
3035 stocks, securities, and other obligations that are prohibited
3036 from being in association portfolios under paragraph (f); and
3037 2. Submit monthly, quarterly, and annual reports to the
3038 association which are prepared in accordance with established
3039 financial industry standards and in accordance with chapter 517.
3040 (h) Any principal, earnings, or interest managed under this
3041 subsection must be available at no cost or charge to the
3042 association within 15 business days after delivery of the
3043 association’s written or electronic request.
3044 (i) Unallocated income earned on reserve fund investments
3045 may be spent only on capital expenditures, planned maintenance,
3046 structural repairs, or other items for which the reserve
3047 accounts have been established. Any surplus of funds that
3048 exceeds the amount required to maintain reasonably funded
3049 reserves must be managed pursuant to s. 718.115.
3050 Section 12. Paragraphs (j) and (k) of subsection (1) of
3051 section 719.106, Florida Statutes, are amended to read:
3052 719.106 Bylaws; cooperative ownership.—
3053 (1) MANDATORY PROVISIONS.—The bylaws or other cooperative
3054 documents shall provide for the following, and if they do not,
3055 they shall be deemed to include the following:
3056 (j) Annual budget.—
3057 1. The proposed annual budget of common expenses must be
3058 detailed and must show the amounts budgeted by accounts and
3059 expense classifications, including, if applicable, but not
3060 limited to, those expenses listed in s. 719.504(20). The board
3061 of administration shall adopt the annual budget at least 14 days
3062 before the start of the association’s fiscal year. In the event
3063 that the board fails to timely adopt the annual budget a second
3064 time, it is deemed a minor violation and the prior year’s budget
3065 shall continue in effect until a new budget is adopted.
3066 2.a. In addition to annual operating expenses, the budget
3067 must include reserve accounts for capital expenditures and
3068 deferred maintenance. These accounts must include, but not be
3069 limited to, roof replacement, building painting, and pavement
3070 resurfacing, regardless of the amount of deferred maintenance
3071 expense or replacement cost, and for any other items for which
3072 the deferred maintenance expense or replacement cost exceeds
3073 $25,000 $10,000. The amount to be reserved must be computed by
3074 means of a formula which is based upon estimated remaining
3075 useful life and estimated replacement cost or deferred
3076 maintenance expense of the reserve item. In a budget adopted by
3077 an association that is required to obtain a structural integrity
3078 reserve study, reserves must be maintained for the items
3079 identified in paragraph (k) for which the association is
3080 responsible pursuant to the declaration, and the reserve amount
3081 for such items must be based on the findings and recommendations
3082 of the association’s most recent structural integrity reserve
3083 study. With respect to items for which an estimate of useful
3084 life is not readily ascertainable or with an estimated remaining
3085 useful life of greater than 25 years, an association is not
3086 required to reserve replacement costs for such items, but an
3087 association must reserve the amount of deferred maintenance
3088 expense, if any, which is recommended by the structural
3089 integrity reserve study for such items. The association may
3090 adjust replacement reserve assessments annually to take into
3091 account an inflation adjustment and any changes in estimates or
3092 extension of the useful life of a reserve item caused by
3093 deferred maintenance.
3094 b. The members of a unit-owner-controlled association may
3095 determine, by a majority vote of the total voting interests of
3096 the association, for a fiscal year to provide no reserves or
3097 reserves less adequate than required by this subsection. Before
3098 turnover of control of an association by a developer to unit
3099 owners other than a developer under s. 719.301, the developer
3100 controlled association may not vote to waive the reserves or
3101 reduce funding of the reserves.
3102 c. For a budget adopted on or after December 31, 2024, a
3103 unit-owner-controlled association that must obtain a structural
3104 integrity reserve study may not determine to provide no reserves
3105 or reserves less adequate than required by this paragraph for
3106 items listed in paragraph (k). If a meeting of the unit owners
3107 has been called to determine to provide no reserves, or reserves
3108 less adequate than required, and such result is not attained or
3109 a quorum is not attained, the reserves as included in the budget
3110 shall go into effect.
3111 d. If the local building official as defined in s. 468.603,
3112 determines that the entire cooperative building is uninhabitable
3113 due to a natural emergency as defined in s. 252.34, the board
3114 may pause the contribution to its reserves or reduce reserve
3115 funding until the local building official determines that the
3116 cooperative building is habitable. Any reserve account funds
3117 held by the association may be expended, pursuant to the board’s
3118 determination, to make the cooperative building and its
3119 structures habitable. Upon the determination by the local
3120 building official that the cooperative building is habitable,
3121 the association must immediately resume contributing funds to
3122 its reserves.
3123 e.1. Reserves for the items listed in paragraph (g) may be
3124 funded by regular assessments, special assessments, lines of
3125 credit, or loans.
3126 2. A unit-owner-controlled association that must have a
3127 structural reserve study may secure a line of credit or a loan
3128 to fund capital expenses required by a milestone inspection
3129 under s. 553.899 or a structural integrity reserve study. Any
3130 line of credit or loan under this subparagraph requires the
3131 approval of a majority vote of the total voting interests of the
3132 association. The lines of credit or loans must be sufficient to
3133 fund the cumulative amount of any previously waived or unfunded
3134 portion of the reserve funding amount required by this paragraph
3135 and the most recent structural integrity reserve study. Funding
3136 from the lines of credit or loans must be immediately available
3137 for access by the board to fund required repair, maintenance, or
3138 replacement expenses without further approval by the members of
3139 the association. Any lines of credit or loans secured under this
3140 paragraph must be included in the financial report required
3141 under s. 719.104(4).
3142 a. For a budget adopted on or before December 31, 2028, if
3143 the association has completed a milestone inspection pursuant to
3144 s. 553.899 within the previous 2 calendar years, the board, upon
3145 the approval of a majority of the total voting interests of the
3146 association, may temporarily pause, for a period of no more than
3147 2 consecutive annual budgets, reserve fund contributions or
3148 reduce the amount of reserve funding for the purpose of funding
3149 repairs recommended by the milestone inspection. This sub
3150 subparagraph does not apply to a developer-controlled
3151 association and an association in which the non-developer unit
3152 owners have been in control for less than 1 year.
3153 b. An association that has paused reserve contributions
3154 under this sub-subparagraph a. must have a structural integrity
3155 reserve study performed before the continuation of reserve
3156 contributions in order to determine the association’s reserve
3157 funding needs and to recommend a reserve funding plan.
3158 3. Reserve funds and any interest accruing thereon shall
3159 remain in the reserve account or accounts, and shall be used
3160 only for authorized reserve expenditures unless their use for
3161 other purposes is approved in advance by a vote of the majority
3162 of the total voting interests of the association. Before
3163 turnover of control of an association by a developer to unit
3164 owners other than the developer under s. 719.301, the developer
3165 may not vote to use reserves for purposes other than that for
3166 which they were intended. For a budget adopted on or after
3167 December 31, 2024, members of a unit-owner-controlled
3168 association that must obtain a structural integrity reserve
3169 study may not vote to use reserve funds, or any interest
3170 accruing thereon, for purposes other than the replacement or
3171 deferred maintenance costs of the components listed in paragraph
3172 (k). A vote of the members is not required for the board to
3173 change the accounting method for reserves to a pooling
3174 accounting method or a straight-line accounting method.
3175 (k) Structural integrity reserve study.—
3176 1. A residential cooperative association must have a
3177 structural integrity reserve study completed at least every 10
3178 years for each building on the cooperative property that is
3179 three stories or higher in height, as determined by the Florida
3180 Building Code, that includes, at a minimum, a study of the
3181 following items as related to the structural integrity and
3182 safety of the building:
3183 a. Roof.
3184 b. Structure, including load-bearing walls and other
3185 primary structural members and primary structural systems as
3186 those terms are defined in s. 627.706.
3187 c. Fireproofing and fire protection systems.
3188 d. Plumbing.
3189 e. Electrical systems.
3190 f. Waterproofing and exterior painting.
3191 g. Windows and exterior doors.
3192 h. Any other item that has a deferred maintenance expense
3193 or replacement cost that exceeds $25,000 $10,000 and the failure
3194 to replace or maintain such item negatively affects the items
3195 listed in sub-subparagraphs a.-g., as determined by the visual
3196 inspection portion of the structural integrity reserve study.
3197 2. A structural integrity reserve study is based on a
3198 visual inspection of the cooperative property.
3199 3.a. A structural integrity reserve study may be performed
3200 by any person qualified to perform such study. However, the
3201 visual inspection portion of the structural integrity reserve
3202 study must be performed or verified by an engineer licensed
3203 under chapter 471, an architect licensed under chapter 481, or a
3204 person certified as a reserve specialist or professional reserve
3205 analyst by the Community Associations Institute or the
3206 Association of Professional Reserve Analysts.
3207 b. Any design professional as defined in s. 558.002(7) or
3208 contractor licensed under chapter 489 who bids to perform a
3209 structural integrity reserve study must disclose in writing to
3210 the association his or her intent to bid on any services related
3211 to any maintenance, repair, or replacement that may be
3212 recommended by the structural integrity reserve study. Any
3213 design professional as defined in s. 558.002 or contractor
3214 licensed under chapter 489 who submits a bid to the association
3215 for performing any services recommended by the structural
3216 integrity reserve study may not have an interest, directly or
3217 indirectly, in the firm or entity providing the association’s
3218 structural integrity reserve study or be a relative of any
3219 person having a direct or indirect interest in such firm, unless
3220 such relationship is disclosed to the association in writing. As
3221 used in this section, the term “relative” means a relative
3222 within the third degree of consanguinity by blood or marriage. A
3223 contract for services is voidable and terminates upon the
3224 association filing a written notice terminating the contract if
3225 the design professional or licensed contractor failed to provide
3226 the written disclosure of the relationship required under this
3227 paragraph. A design professional or licensed contractor may be
3228 subject to discipline under the applicable practice act for his
3229 or her profession for failure to provide the written disclosure
3230 of the relationship required under this subparagraph.
3231 4.a.3. At a minimum, a structural integrity reserve study
3232 must identify each item of the cooperative property being
3233 visually inspected, state the estimated remaining useful life
3234 and the estimated replacement cost or deferred maintenance
3235 expense of each item of the cooperative property being visually
3236 inspected, and provide a reserve funding schedule with a
3237 recommended annual reserve amount that achieves the estimated
3238 replacement cost or deferred maintenance expense of each item of
3239 cooperative property being visually inspected by the end of the
3240 estimated remaining useful life of the item. The structural
3241 integrity reserve study may recommend that reserves do not need
3242 to be maintained for any item for which an estimate of useful
3243 life and an estimate of replacement cost cannot be determined,
3244 or the study may recommend a deferred maintenance expense amount
3245 for such item. At a minimum, the structural integrity reserve
3246 study must include a recommendation for a reserve funding
3247 schedule based on a baseline funding plan that provides a
3248 reserve funding goal in which the reserve funding for each
3249 budget year is sufficient to maintain the reserve cash balance
3250 above zero. The study may recommend other types of reserve
3251 funding schedules, provided that each recommended schedule is
3252 sufficient to meet the association’s maintenance obligation.
3253 b. The structural integrity reserve study may recommend
3254 that reserves for replacement costs do not need to be maintained
3255 for any item with an estimated remaining useful life of greater
3256 than 25 years, but the study may recommend a deferred
3257 maintenance expense amount for such item. If the structural
3258 integrity reserve study recommends reserves for any item for
3259 which reserves are not required under this paragraph, the amount
3260 of the recommended reserves for such item must be separately
3261 identified in the structural integrity reserve study as an item
3262 for which reserves are not required under this paragraph.
3263 c. The structural integrity reserve study must take into
3264 consideration the funding method or methods used by the
3265 association to fund its maintenance and reserve funding
3266 obligations through regular assessments, special assessments,
3267 lines of credit, or loans. If the structural integrity reserve
3268 study is performed before the association has approved a special
3269 assessment or secured a line of credit or a loan, the structural
3270 integrity reserve study must be updated to reflect the funding
3271 method selected by the association and its effect on the reserve
3272 funding schedule, including any anticipated change in the amount
3273 of regular assessments. The structural integrity reserve study
3274 may be updated to reflect any changes to the useful life of the
3275 reserve items after such items are repaired or replaced, and the
3276 effect such repair or replacement will have on the reserve
3277 funding schedule. The association must obtain an updated
3278 structural integrity reserve study before adopting any budget in
3279 which the reserve funding from regular assessments, special
3280 assessments, lines of credit, or loans do not align with the
3281 funding plan from the most recent version of the structural
3282 integrity reserve study.
3283 5.4. This paragraph does not apply to buildings less than
3284 three stories in height; single-family, two-family, or three
3285 family dwellings with three or fewer habitable stories above
3286 ground; any portion or component of a building that has not been
3287 submitted to the cooperative form of ownership; or any portion
3288 or component of a building that is maintained by a party other
3289 than the association.
3290 6.5. Before a developer turns over control of an
3291 association to unit owners other than the developer, the
3292 developer must have a turnover inspection report in compliance
3293 with s. 719.301(4)(p) and (q) for each building on the
3294 cooperative property that is three stories or higher in height.
3295 7.6. Associations existing on or before July 1, 2022, which
3296 are controlled by unit owners other than the developer, must
3297 have a structural integrity reserve study completed by December
3298 31, 2024, for each building on the cooperative property that is
3299 three stories or higher in height. An association that is
3300 required to complete a milestone inspection on or before
3301 December 31, 2026, in accordance with s. 553.899 may complete
3302 the structural integrity reserve study simultaneously with the
3303 milestone inspection. In no event may the structural integrity
3304 reserve study be completed after December 31, 2026.
3305 8.7. If the milestone inspection required by s. 553.899, or
3306 an inspection completed for a similar local requirement, was
3307 performed within the past 5 years and meets the requirements of
3308 this paragraph, such inspection may be used in place of the
3309 visual inspection portion of the structural integrity reserve
3310 study.
3311 9. If the association completes a milestone inspection
3312 required by s. 553.899, or an inspection completed for a similar
3313 local requirement, the association may delay performance of a
3314 required structural integrity reserve study for no more than the
3315 2 consecutive budget years immediately following the milestone
3316 inspection in order to allow the association to focus its
3317 financial resources on completing the repair and maintenance
3318 recommendations of the milestone inspection.
3319 10.8. If the officers or directors of an association
3320 willfully and knowingly fail to complete a structural integrity
3321 reserve study pursuant to this paragraph, such failure is a
3322 breach of an officer’s and director’s fiduciary relationship to
3323 the unit owners under s. 719.104(9). An officer or a director of
3324 the association must sign an affidavit acknowledging receipt of
3325 the completed structural integrity reserve study.
3326 11.9. Within 45 days after receiving the structural
3327 integrity reserve study, the association must distribute a copy
3328 of the study to each unit owner or deliver to each unit owner a
3329 notice that the completed study is available for inspection and
3330 copying upon a written request. Distribution of a copy of the
3331 study or notice must be made by United States mail or personal
3332 delivery at the mailing address, property address, or any other
3333 address of the owner provided to fulfill the association’s
3334 notice requirements under this chapter, or by electronic
3335 transmission to the e-mail address or facsimile number provided
3336 to fulfill the association’s notice requirements to unit owners
3337 who previously consented to receive notice by electronic
3338 transmission.
3339 12.10. Within 45 days after receiving the structural
3340 integrity reserve study, the association must provide the
3341 division with a statement indicating that the study was
3342 completed and that the association provided or made available
3343 such study to each unit owner in accordance with this section.
3344 Such statement must be provided to the division in the manner
3345 established by the division using a form posted on the
3346 division’s website.
3347 13. The division shall adopt by rule the form for the
3348 structural integrity reserve study in coordination with the
3349 Florida Building Commission.
3350 Section 13. Subsection (3) of section 719.501, Florida
3351 Statutes, is amended, paragraph (c) is added to subsection (2)
3352 of that section, and subsection (1) of that section is
3353 reenacted, to read:
3354 719.501 Powers and duties of Division of Florida
3355 Condominiums, Timeshares, and Mobile Homes.—
3356 (1) The Division of Florida Condominiums, Timeshares, and
3357 Mobile Homes of the Department of Business and Professional
3358 Regulation, referred to as the “division” in this part, in
3359 addition to other powers and duties prescribed by chapter 718,
3360 has the power to enforce and ensure compliance with this chapter
3361 and adopted rules relating to the development, construction,
3362 sale, lease, ownership, operation, and management of residential
3363 cooperative units; complaints related to the procedural
3364 completion of the structural integrity reserve studies under s.
3365 719.106(1)(k); and complaints related to the procedural
3366 completion of milestone inspections under s. 553.899. In
3367 performing its duties, the division shall have the following
3368 powers and duties:
3369 (a) The division may make necessary public or private
3370 investigations within or outside this state to determine whether
3371 any person has violated this chapter or any rule or order
3372 hereunder, to aid in the enforcement of this chapter, or to aid
3373 in the adoption of rules or forms hereunder.
3374 (b) The division may require or permit any person to file a
3375 statement in writing, under oath or otherwise, as the division
3376 determines, as to the facts and circumstances concerning a
3377 matter to be investigated.
3378 (c) For the purpose of any investigation under this
3379 chapter, the division director or any officer or employee
3380 designated by the division director may administer oaths or
3381 affirmations, subpoena witnesses and compel their attendance,
3382 take evidence, and require the production of any matter which is
3383 relevant to the investigation, including the existence,
3384 description, nature, custody, condition, and location of any
3385 books, documents, or other tangible things and the identity and
3386 location of persons having knowledge of relevant facts or any
3387 other matter reasonably calculated to lead to the discovery of
3388 material evidence. Upon failure by a person to obey a subpoena
3389 or to answer questions propounded by the investigating officer
3390 and upon reasonable notice to all persons affected thereby, the
3391 division may apply to the circuit court for an order compelling
3392 compliance.
3393 (d) Notwithstanding any remedies available to unit owners
3394 and associations, if the division has reasonable cause to
3395 believe that a violation of any provision of this chapter or
3396 related rule has occurred, the division may institute
3397 enforcement proceedings in its own name against a developer,
3398 association, officer, or member of the board, or its assignees
3399 or agents, as follows:
3400 1. The division may permit a person whose conduct or
3401 actions may be under investigation to waive formal proceedings
3402 and enter into a consent proceeding whereby orders, rules, or
3403 letters of censure or warning, whether formal or informal, may
3404 be entered against the person.
3405 2. The division may issue an order requiring the developer,
3406 association, officer, or member of the board, or its assignees
3407 or agents, to cease and desist from the unlawful practice and
3408 take such affirmative action as in the judgment of the division
3409 will carry out the purposes of this chapter. Such affirmative
3410 action may include, but is not limited to, an order requiring a
3411 developer to pay moneys determined to be owed to a condominium
3412 association.
3413 3. The division may bring an action in circuit court on
3414 behalf of a class of unit owners, lessees, or purchasers for
3415 declaratory relief, injunctive relief, or restitution.
3416 4. The division may impose a civil penalty against a
3417 developer or association, or its assignees or agents, for any
3418 violation of this chapter or related rule. The division may
3419 impose a civil penalty individually against any officer or board
3420 member who willfully and knowingly violates a provision of this
3421 chapter, a rule adopted pursuant to this chapter, or a final
3422 order of the division. The term “willfully and knowingly” means
3423 that the division informed the officer or board member that his
3424 or her action or intended action violates this chapter, a rule
3425 adopted under this chapter, or a final order of the division,
3426 and that the officer or board member refused to comply with the
3427 requirements of this chapter, a rule adopted under this chapter,
3428 or a final order of the division. The division, prior to
3429 initiating formal agency action under chapter 120, shall afford
3430 the officer or board member an opportunity to voluntarily comply
3431 with this chapter, a rule adopted under this chapter, or a final
3432 order of the division. An officer or board member who complies
3433 within 10 days is not subject to a civil penalty. A penalty may
3434 be imposed on the basis of each day of continuing violation, but
3435 in no event shall the penalty for any offense exceed $5,000. The
3436 division shall adopt, by rule, penalty guidelines applicable to
3437 possible violations or to categories of violations of this
3438 chapter or rules adopted by the division. The guidelines must
3439 specify a meaningful range of civil penalties for each such
3440 violation of the statute and rules and must be based upon the
3441 harm caused by the violation, upon the repetition of the
3442 violation, and upon such other factors deemed relevant by the
3443 division. For example, the division may consider whether the
3444 violations were committed by a developer or owner-controlled
3445 association, the size of the association, and other factors. The
3446 guidelines must designate the possible mitigating or aggravating
3447 circumstances that justify a departure from the range of
3448 penalties provided by the rules. It is the legislative intent
3449 that minor violations be distinguished from those which endanger
3450 the health, safety, or welfare of the cooperative residents or
3451 other persons and that such guidelines provide reasonable and
3452 meaningful notice to the public of likely penalties that may be
3453 imposed for proscribed conduct. This subsection does not limit
3454 the ability of the division to informally dispose of
3455 administrative actions or complaints by stipulation, agreed
3456 settlement, or consent order. All amounts collected shall be
3457 deposited with the Chief Financial Officer to the credit of the
3458 Division of Florida Condominiums, Timeshares, and Mobile Homes
3459 Trust Fund. If a developer fails to pay the civil penalty, the
3460 division shall thereupon issue an order directing that such
3461 developer cease and desist from further operation until such
3462 time as the civil penalty is paid or may pursue enforcement of
3463 the penalty in a court of competent jurisdiction. If an
3464 association fails to pay the civil penalty, the division shall
3465 thereupon pursue enforcement in a court of competent
3466 jurisdiction, and the order imposing the civil penalty or the
3467 cease and desist order shall not become effective until 20 days
3468 after the date of such order. Any action commenced by the
3469 division shall be brought in the county in which the division
3470 has its executive offices or in the county where the violation
3471 occurred.
3472 (e) The division may prepare and disseminate a prospectus
3473 and other information to assist prospective owners, purchasers,
3474 lessees, and developers of residential cooperatives in assessing
3475 the rights, privileges, and duties pertaining thereto.
3476 (f) The division has authority to adopt rules pursuant to
3477 ss. 120.536(1) and 120.54 to implement and enforce the
3478 provisions of this chapter.
3479 (g) The division shall establish procedures for providing
3480 notice to an association when the division is considering the
3481 issuance of a declaratory statement with respect to the
3482 cooperative documents governing such cooperative community.
3483 (h) The division shall furnish each association which pays
3484 the fees required by paragraph (2)(a) a copy of this act,
3485 subsequent changes to this act on an annual basis, an amended
3486 version of this act as it becomes available from the Secretary
3487 of State’s office on a biennial basis, and the rules adopted
3488 thereto on an annual basis.
3489 (i) The division shall annually provide each association
3490 with a summary of declaratory statements and formal legal
3491 opinions relating to the operations of cooperatives which were
3492 rendered by the division during the previous year.
3493 (j) The division shall adopt uniform accounting principles,
3494 policies, and standards to be used by all associations in the
3495 preparation and presentation of all financial statements
3496 required by this chapter. The principles, policies, and
3497 standards shall take into consideration the size of the
3498 association and the total revenue collected by the association.
3499 (k) The division shall provide training and educational
3500 programs for cooperative association board members and unit
3501 owners. The training may, in the division’s discretion, include
3502 web-based electronic media and live training and seminars in
3503 various locations throughout the state. The division may review
3504 and approve education and training programs for board members
3505 and unit owners offered by providers and shall maintain a
3506 current list of approved programs and providers and make such
3507 list available to board members and unit owners in a reasonable
3508 and cost-effective manner.
3509 (l) The division shall maintain a toll-free telephone
3510 number accessible to cooperative unit owners.
3511 (m) When a complaint is made to the division, the division
3512 shall conduct its inquiry with reasonable dispatch and with due
3513 regard to the interests of the affected parties. Within 30 days
3514 after receipt of a complaint, the division shall acknowledge the
3515 complaint in writing and notify the complainant whether the
3516 complaint is within the jurisdiction of the division and whether
3517 additional information is needed by the division from the
3518 complainant. The division shall conduct its investigation and
3519 shall, within 90 days after receipt of the original complaint or
3520 timely requested additional information, take action upon the
3521 complaint. However, the failure to complete the investigation
3522 within 90 days does not prevent the division from continuing the
3523 investigation, accepting or considering evidence obtained or
3524 received after 90 days, or taking administrative action if
3525 reasonable cause exists to believe that a violation of this
3526 chapter or a rule of the division has occurred. If an
3527 investigation is not completed within the time limits
3528 established in this paragraph, the division shall, on a monthly
3529 basis, notify the complainant in writing of the status of the
3530 investigation. When reporting its action to the complainant, the
3531 division shall inform the complainant of any right to a hearing
3532 pursuant to ss. 120.569 and 120.57.
3533 (n) The division shall develop a program to certify both
3534 volunteer and paid mediators to provide mediation of cooperative
3535 disputes. The division shall provide, upon request, a list of
3536 such mediators to any association, unit owner, or other
3537 participant in arbitration proceedings under s. 718.1255
3538 requesting a copy of the list. The division shall include on the
3539 list of voluntary mediators only persons who have received at
3540 least 20 hours of training in mediation techniques or have
3541 mediated at least 20 disputes. In order to become initially
3542 certified by the division, paid mediators must be certified by
3543 the Supreme Court to mediate court cases in county or circuit
3544 courts. However, the division may adopt, by rule, additional
3545 factors for the certification of paid mediators, which factors
3546 must be related to experience, education, or background. Any
3547 person initially certified as a paid mediator by the division
3548 must, in order to continue to be certified, comply with the
3549 factors or requirements imposed by rules adopted by the
3550 division.
3551 (2)
3552 (c) A cooperative association shall create and maintain an
3553 online account with the division, as required in subsection (3).
3554 (3) On or before October 1, 2025, all cooperative
3555 associations shall create and maintain an online account with
3556 the division and provide information requested by the division
3557 in an electronic format determined by the division. The division
3558 shall adopt rules to implement this subsection. The division may
3559 require cooperative associations to provide such information no
3560 more than once per year, except that the division may require
3561 cooperative associations to update their contact information in
3562 paragraph (a) within 30 days after any change. The division
3563 shall provide a cooperative association at least a 45-day notice
3564 of any requirement to provide any required information after the
3565 cooperative association creates an online account. The
3566 information that the division may require associations to
3567 provide is limited to:
3568 (a) The contact information for the association that
3569 includes all of the following:
3570 1. The name of the association.
3571 2. The physical address of the cooperative property.
3572 3. The mailing address and county of the association.
3573 4. The e-mail address and telephone number for the
3574 association.
3575 5. The name and board title for each member of the
3576 association’s board.
3577 6. The name and contact information of the association’s
3578 community association manager or community association
3579 management firm, if applicable.
3580 7. The hyperlink or website address of the association’s
3581 website, if applicable.
3582 (b) The total number of buildings and for each building in
3583 the association:
3584 1. The total number of stories of each building, including
3585 both habitable and uninhabitable stories.
3586 2. The total number of units.
3587 3. The age of each building based on the certificate of
3588 occupancy.
3589 4. Any construction commenced on the common elements within
3590 the previous calendar year.
3591 (c) The association’s assessments, including the:
3592 1. Amount of assessment or special assessment by unit type,
3593 including reserves.
3594 2. Purpose of the assessment or special assessment.
3595 3. Name of the financial institution or institutions with
3596 which the association maintains accounts.
3597 (d) A copy of any structural integrity reserve study and
3598 any associated materials requested by the department. The
3599 association must provide such materials within 5 business days
3600 after such request, in a manner prescribed by the department.
3601 (a) On or before January 1, 2023, cooperative associations
3602 existing on or before July 1, 2022, must provide the following
3603 information to the division in writing, by e-mail, United States
3604 Postal Service, commercial delivery service, or hand delivery,
3605 at a physical address or e-mail address provided by the division
3606 and on a form posted on the division’s website:
3607 1. The number of buildings on the cooperative property that
3608 are three stories or higher in height.
3609 2. The total number of units in all such buildings.
3610 3. The addresses of all such buildings.
3611 4. The counties in which all such buildings are located.
3612 (b) The division must compile a list of the number of
3613 buildings on cooperative property that are three stories or
3614 higher in height, which is searchable by county, and must post
3615 the list on the division’s website. This list must include all
3616 of the following information:
3617 1. The name of each association with buildings on the
3618 cooperative property that are three stories or higher in height.
3619 2. The number of such buildings on each association’s
3620 property.
3621 3. The addresses of all such buildings.
3622 4. The counties in which all such buildings are located.
3623 (c) An association must provide an update in writing to the
3624 division if there are any changes to the information in the list
3625 under paragraph (b) within 6 months after the change.
3626 Section 14. Paragraph (d) of subsection (1) and paragraphs
3627 (c) and (d) of subsection (2) of section 719.503, Florida
3628 Statutes, are amended, to read:
3629 719.503 Disclosure prior to sale.—
3630 (1) DEVELOPER DISCLOSURE.—
3631 (d) Milestone inspection, turnover inspection report, or
3632 structural integrity reserve study.—If the association is
3633 required to have completed a milestone inspection as described
3634 in s. 553.899, a turnover inspection report for a turnover
3635 inspection performed on or after July 1, 2023, or a structural
3636 integrity reserve study, and the association has not completed
3637 the milestone inspection, the turnover inspection report, or the
3638 structural integrity reserve study, each contract entered into
3639 after December 31, 2024, for the sale of a residential unit
3640 shall contain in conspicuous type a statement indicating that
3641 the association is required to have a milestone inspection, a
3642 turnover inspection report, or a structural integrity reserve
3643 study and has not completed such inspection, report, or study,
3644 as appropriate. If the association is not required to have a
3645 milestone inspection as described in s. 553.899 or a structural
3646 integrity reserve study, each contract entered into after
3647 December 31, 2024, for the sale of a residential unit shall
3648 contain in conspicuous type a statement indicating that the
3649 association is not required to have a milestone inspection or a
3650 structural integrity reserve study, as appropriate. If the
3651 association has completed a milestone inspection as described in
3652 s. 553.899, a turnover inspection report for a turnover
3653 inspection performed on or after July 1, 2023, or a structural
3654 integrity reserve study, each contract entered into after
3655 December 31, 2024, for the sale of a residential unit shall
3656 contain in conspicuous type:
3657 1. A clause which states: THE BUYER HEREBY ACKNOWLEDGES
3658 THAT BUYER HAS BEEN PROVIDED A CURRENT COPY OF THE INSPECTOR
3659 PREPARED SUMMARY OF THE MILESTONE INSPECTION REPORT AS DESCRIBED
3660 IN SECTION 553.899, FLORIDA STATUTES, IF APPLICABLE; A COPY OF
3661 THE TURNOVER INSPECTION REPORT DESCRIBED IN SECTION
3662 719.301(4)(p) AND (q), FLORIDA STATUTES, IF APPLICABLE; AND A
3663 COPY OF THE ASSOCIATION’S MOST RECENT STRUCTURAL INTEGRITY
3664 RESERVE STUDY DESCRIBED IN SECTIONS 719.103(24) AND
3665 719.106(1)(k), FLORIDA STATUTES, IF APPLICABLE, MORE THAN 15
3666 DAYS, EXCLUDING SATURDAYS, SUNDAYS, AND LEGAL HOLIDAYS, BEFORE
3667 PRIOR TO EXECUTION OF THIS CONTRACT; and
3668 2. A clause which states: THIS AGREEMENT IS VOIDABLE BY
3669 BUYER BY DELIVERING WRITTEN NOTICE OF THE BUYER’S INTENTION TO
3670 CANCEL WITHIN 15 DAYS, EXCLUDING SATURDAYS, SUNDAYS, AND LEGAL
3671 HOLIDAYS, AFTER THE DATE OF EXECUTION OF THIS AGREEMENT BY THE
3672 BUYER AND RECEIPT BY BUYER OF A CURRENT COPY OF THE INSPECTOR
3673 PREPARED SUMMARY OF THE MILESTONE INSPECTION REPORT AS DESCRIBED
3674 IN SECTION 553.899, FLORIDA STATUTES, IF APPLICABLE; A COPY OF
3675 THE TURNOVER INSPECTION REPORT DESCRIBED IN SECTION
3676 719.301(4)(p) AND (q), FLORIDA STATUTES, IF APPLICABLE; AND A
3677 COPY OF THE ASSOCIATION’S MOST RECENT STRUCTURAL INTEGRITY
3678 RESERVE STUDY DESCRIBED IN SECTIONS 719.103(24) AND
3679 719.106(1)(k), FLORIDA STATUTES, IF APPLICABLE. ANY PURPORTED
3680 WAIVER OF THESE VOIDABILITY RIGHTS SHALL BE OF NO EFFECT. BUYER
3681 MAY EXTEND THE TIME FOR CLOSING FOR A PERIOD OF NOT MORE THAN 15
3682 DAYS, EXCLUDING SATURDAYS, SUNDAYS, AND LEGAL HOLIDAYS, AFTER
3683 THE BUYER RECEIVES A CURRENT COPY OF THE INSPECTOR-PREPARED
3684 SUMMARY OF THE MILESTONE INSPECTION REPORT AS DESCRIBED IN
3685 SECTION 553.899, FLORIDA STATUTES; A COPY OF THE TURNOVER
3686 INSPECTION REPORT DESCRIBED IN SECTION 719.301(4)(p) AND (q),
3687 FLORIDA STATUTES; OR A COPY OF THE ASSOCIATION’S MOST RECENT
3688 STRUCTURAL INTEGRITY RESERVE STUDY DESCRIBED IN SECTIONS
3689 719.103(24) AND 719.106(1)(k), FLORIDA STATUTES, IF REQUESTED IN
3690 WRITING. BUYER’S RIGHT TO VOID THIS AGREEMENT SHALL TERMINATE AT
3691 CLOSING.
3692
3693 A contract that does not conform to the requirements of this
3694 paragraph is voidable at the option of the purchaser before
3695 prior to closing.
3696 (2) NONDEVELOPER DISCLOSURE.—
3697 (c) Each contract entered into after July 1, 1992, for the
3698 resale of an interest in a cooperative shall contain in
3699 conspicuous type either:
3700 1. A clause which states: THE BUYER HEREBY ACKNOWLEDGES
3701 THAT BUYER HAS BEEN PROVIDED A CURRENT COPY OF THE ARTICLES OF
3702 INCORPORATION OF THE ASSOCIATION, BYLAWS, RULES OF THE
3703 ASSOCIATION, AND THE QUESTION AND ANSWER SHEET MORE THAN 7 3
3704 DAYS, EXCLUDING SATURDAYS, SUNDAYS, AND LEGAL HOLIDAYS, BEFORE
3705 PRIOR TO EXECUTION OF THIS CONTRACT; or
3706 2. A clause which states: THIS AGREEMENT IS VOIDABLE BY
3707 BUYER BY DELIVERING WRITTEN NOTICE OF THE BUYER’S INTENTION TO
3708 CANCEL WITHIN 7 3 DAYS, EXCLUDING SATURDAYS, SUNDAYS, AND LEGAL
3709 HOLIDAYS, AFTER THE DATE OF EXECUTION OF THIS AGREEMENT BY THE
3710 BUYER AND RECEIPT BY BUYER OF A CURRENT COPY OF THE ARTICLES OF
3711 INCORPORATION, BYLAWS, AND RULES OF THE ASSOCIATION, AND
3712 QUESTION AND ANSWER SHEET, IF SO REQUESTED IN WRITING. ANY
3713 PURPORTED WAIVER OF THESE VOIDABILITY RIGHTS SHALL BE OF NO
3714 EFFECT. BUYER MAY EXTEND THE TIME FOR CLOSING FOR A PERIOD OF
3715 NOT MORE THAN 7 3 DAYS, EXCLUDING SATURDAYS, SUNDAYS, AND LEGAL
3716 HOLIDAYS, AFTER THE BUYER RECEIVES THE ARTICLES OF
3717 INCORPORATION, BYLAWS, RULES, AND QUESTION AND ANSWER SHEET, IF
3718 REQUESTED IN WRITING. BUYER’S RIGHT TO VOID THIS AGREEMENT SHALL
3719 TERMINATE AT CLOSING.
3720
3721 A contract that does not conform to the requirements of this
3722 paragraph is voidable at the option of the purchaser before
3723 prior to closing.
3724 (d) If the association is required to have completed a
3725 milestone inspection as described in s. 553.899, a turnover
3726 inspection report for a turnover inspection performed on or
3727 after July 1, 2023, or a structural integrity reserve study, and
3728 the association has not completed the milestone inspection, the
3729 turnover inspection report, or the structural integrity reserve
3730 study, each contract entered into after December 31, 2024, for
3731 the sale of a residential unit shall contain in conspicuous type
3732 a statement indicating that the association is required to have
3733 a milestone inspection, a turnover inspection report, or a
3734 structural integrity reserve study and has not completed such
3735 inspection, report, or study, as appropriate. If the association
3736 is not required to have a milestone inspection as described in
3737 s. 553.899 or a structural integrity reserve study, each
3738 contract entered into after December 31, 2024, for the sale of a
3739 residential unit shall contain in conspicuous type a statement
3740 indicating that the association is not required to have a
3741 milestone inspection or a structural integrity reserve study, as
3742 appropriate. If the association has completed a milestone
3743 inspection as described in s. 553.899, a turnover inspection
3744 report for a turnover inspection performed on or after July 1,
3745 2023, or a structural integrity reserve study, each contract
3746 entered into after December 31, 2024, for the resale of a
3747 residential unit shall contain in conspicuous type:
3748 1. A clause which states: THE BUYER HEREBY ACKNOWLEDGES
3749 THAT BUYER HAS BEEN PROVIDED A CURRENT COPY OF THE INSPECTOR
3750 PREPARED SUMMARY OF THE MILESTONE INSPECTION REPORT AS DESCRIBED
3751 IN SECTION 553.899, FLORIDA STATUTES, IF APPLICABLE; A COPY OF
3752 THE TURNOVER INSPECTION REPORT DESCRIBED IN SECTION
3753 719.301(4)(p) AND (q), FLORIDA STATUTES, IF APPLICABLE; AND A
3754 COPY OF THE ASSOCIATION’S MOST RECENT STRUCTURAL INTEGRITY
3755 RESERVE STUDY DESCRIBED IN SECTIONS 719.103(24) AND
3756 719.106(1)(k), FLORIDA STATUTES, IF APPLICABLE, MORE THAN 7 3
3757 DAYS, EXCLUDING SATURDAYS, SUNDAYS, AND LEGAL HOLIDAYS, BEFORE
3758 PRIOR TO EXECUTION OF THIS CONTRACT; and
3759 2. A clause which states: THIS AGREEMENT IS VOIDABLE BY
3760 BUYER BY DELIVERING WRITTEN NOTICE OF THE BUYER’S INTENTION TO
3761 CANCEL WITHIN 7 3 DAYS, EXCLUDING SATURDAYS, SUNDAYS, AND LEGAL
3762 HOLIDAYS, AFTER THE DATE OF EXECUTION OF THIS AGREEMENT BY THE
3763 BUYER AND RECEIPT BY BUYER OF A CURRENT COPY OF THE INSPECTOR
3764 PREPARED SUMMARY OF THE MILESTONE INSPECTION REPORT AS DESCRIBED
3765 IN SECTION 553.899, FLORIDA STATUTES, IF APPLICABLE; A COPY OF
3766 THE TURNOVER INSPECTION REPORT DESCRIBED IN SECTION
3767 719.301(4)(p) AND (q), FLORIDA STATUTES, IF APPLICABLE; AND A
3768 COPY OF THE ASSOCIATION’S MOST RECENT STRUCTURAL INTEGRITY
3769 RESERVE STUDY DESCRIBED IN SECTIONS 719.103(24) AND
3770 719.106(1)(k), FLORIDA STATUTES, IF APPLICABLE. ANY PURPORTED
3771 WAIVER OF THESE VOIDABILITY RIGHTS SHALL BE OF NO EFFECT. BUYER
3772 MAY EXTEND THE TIME FOR CLOSING FOR A PERIOD OF NOT MORE THAN 7
3773 3 DAYS, EXCLUDING SATURDAYS, SUNDAYS, AND LEGAL HOLIDAYS, AFTER
3774 THE BUYER RECEIVES A CURRENT COPY OF THE INSPECTOR-PREPARED
3775 SUMMARY OF THE MILESTONE INSPECTION REPORT AS DESCRIBED IN
3776 SECTION 553.899, FLORIDA STATUTES; A COPY OF THE TURNOVER
3777 INSPECTION REPORT DESCRIBED IN SECTION 719.301(4)(p) AND (q),
3778 FLORIDA STATUTES; OR A COPY OF THE ASSOCIATION’S MOST RECENT
3779 STRUCTURAL INTEGRITY RESERVE STUDY DESCRIBED IN SECTIONS
3780 719.103(24) AND 719.106(1)(k), FLORIDA STATUTES, IF REQUESTED IN
3781 WRITING. BUYER’S RIGHT TO VOID THIS AGREEMENT SHALL TERMINATE AT
3782 CLOSING.
3783
3784 A contract that does not conform to the requirements of this
3785 paragraph is voidable at the option of the purchaser before
3786 prior to closing.
3787 Section 15. Subsection (3) of section 914.21, Florida
3788 Statutes, is amended to read:
3789 914.21 Definitions.—As used in ss. 914.22-914.24, the term:
3790 (3) “Official investigation” means any investigation
3791 instituted by a law enforcement agency or prosecuting officer of
3792 the state or a political subdivision of the state or the
3793 Commission on Ethics or the Division of Florida Condominiums,
3794 Timeshares, and Mobile Homes of the Department of Business and
3795 Professional Regulation.
3796 Section 16. For the 2025-2026 fiscal year, the recurring
3797 sum of $150,000 and nonrecurring sum of $100,000 are
3798 appropriated from the Professional Regulation Trust Fund to the
3799 Department of Business and Professional Regulation to contract
3800 with the University of Florida to implement s. 553.899(3)(f),
3801 Florida Statutes, as amended by this act. The unexpended balance
3802 of nonrecurring funds provided by this section shall revert and
3803 is appropriated for the same purpose for the 2026-2027 fiscal
3804 year.
3805 Section 17. For the purpose of incorporating the amendment
3806 made by this act to section 718.111, Florida Statutes, in a
3807 reference thereto, paragraph (e) of subsection (3) of section
3808 721.13, Florida Statutes, is reenacted to read:
3809 721.13 Management.—
3810 (3) The duties of the managing entity include, but are not
3811 limited to:
3812 (e) Arranging for an annual audit of the financial
3813 statements of the timeshare plan by a certified public
3814 accountant licensed by the Board of Accountancy of the
3815 Department of Business and Professional Regulation, in
3816 accordance with generally accepted auditing standards as defined
3817 by the rules of the Board of Accountancy of the Department of
3818 Business and Professional Regulation. The financial statements
3819 required by this section must be prepared on an accrual basis
3820 using fund accounting, and must be presented in accordance with
3821 generally accepted accounting principles. A copy of the audited
3822 financial statements must be filed with the division for review
3823 and forwarded to the board of directors and officers of the
3824 owners’ association, if one exists, no later than 5 calendar
3825 months after the end of the timeshare plan’s fiscal year. If no
3826 owners’ association exists, each purchaser must be notified, no
3827 later than 5 months after the end of the timeshare plan’s fiscal
3828 year, that a copy of the audited financial statements is
3829 available upon request to the managing entity. Notwithstanding
3830 any requirement of s. 718.111(13) or s. 719.104(4), the audited
3831 financial statements required by this section are the only
3832 annual financial reporting requirements for timeshare
3833 condominiums or timeshare cooperatives.
3834 Section 18. For the purpose of incorporating the amendment
3835 made by this act to section 718.112, Florida Statutes, in
3836 references thereto, paragraph (a) of subsection (7) and
3837 paragraph (c) of subsection (21) of section 718.504, Florida
3838 Statutes, are reenacted to read:
3839 718.504 Prospectus or offering circular.—Every developer of
3840 a residential condominium which contains more than 20
3841 residential units, or which is part of a group of residential
3842 condominiums which will be served by property to be used in
3843 common by unit owners of more than 20 residential units, shall
3844 prepare a prospectus or offering circular and file it with the
3845 Division of Florida Condominiums, Timeshares, and Mobile Homes
3846 prior to entering into an enforceable contract of purchase and
3847 sale of any unit or lease of a unit for more than 5 years and
3848 shall furnish a copy of the prospectus or offering circular to
3849 each buyer. In addition to the prospectus or offering circular,
3850 each buyer shall be furnished a separate page entitled
3851 “Frequently Asked Questions and Answers,” which shall be in
3852 accordance with a format approved by the division and a copy of
3853 the financial information required by s. 718.111. This page
3854 shall, in readable language, inform prospective purchasers
3855 regarding their voting rights and unit use restrictions,
3856 including restrictions on the leasing of a unit; shall indicate
3857 whether and in what amount the unit owners or the association is
3858 obligated to pay rent or land use fees for recreational or other
3859 commonly used facilities; shall contain a statement identifying
3860 that amount of assessment which, pursuant to the budget, would
3861 be levied upon each unit type, exclusive of any special
3862 assessments, and which shall further identify the basis upon
3863 which assessments are levied, whether monthly, quarterly, or
3864 otherwise; shall state and identify any court cases in which the
3865 association is currently a party of record in which the
3866 association may face liability in excess of $100,000; shall
3867 state whether the condominium is created within a portion of a
3868 building or within a multiple parcel building; and which shall
3869 further state whether membership in a recreational facilities
3870 association is mandatory, and if so, shall identify the fees
3871 currently charged per unit type. The division shall by rule
3872 require such other disclosure as in its judgment will assist
3873 prospective purchasers. The prospectus or offering circular may
3874 include more than one condominium, although not all such units
3875 are being offered for sale as of the date of the prospectus or
3876 offering circular. The prospectus or offering circular must
3877 contain the following information:
3878 (7) A description of the recreational and other facilities
3879 that will be used in common with other condominiums, community
3880 associations, or planned developments which require the payment
3881 of the maintenance and expenses of such facilities, directly or
3882 indirectly, by the unit owners. The description shall include,
3883 but not be limited to, the following:
3884 (a) Each building and facility committed to be built and a
3885 summary description of the structural integrity of each building
3886 for which reserves are required pursuant to s. 718.112(2)(g).
3887
3888 Descriptions shall include location, areas, capacities, numbers,
3889 volumes, or sizes and may be stated as approximations or
3890 minimums.
3891 (21) An estimated operating budget for the condominium and
3892 the association, and a schedule of the unit owner’s expenses
3893 shall be attached as an exhibit and shall contain the following
3894 information:
3895 (c) The estimated items of expenses of the condominium and
3896 the association, except as excluded under paragraph (b),
3897 including, but not limited to, the following items, which shall
3898 be stated as an association expense collectible by assessments
3899 or as unit owners’ expenses payable to persons other than the
3900 association:
3901 1. Expenses for the association and condominium:
3902 a. Administration of the association.
3903 b. Management fees.
3904 c. Maintenance.
3905 d. Rent for recreational and other commonly used
3906 facilities.
3907 e. Taxes upon association property.
3908 f. Taxes upon leased areas.
3909 g. Insurance.
3910 h. Security provisions.
3911 i. Other expenses.
3912 j. Operating capital.
3913 k. Reserves for all applicable items referenced in s.
3914 718.112(2)(g).
3915 l. Fees payable to the division.
3916 2. Expenses for a unit owner:
3917 a. Rent for the unit, if subject to a lease.
3918 b. Rent payable by the unit owner directly to the lessor or
3919 agent under any recreational lease or lease for the use of
3920 commonly used facilities, which use and payment is a mandatory
3921 condition of ownership and is not included in the common expense
3922 or assessments for common maintenance paid by the unit owners to
3923 the association.
3924 Section 19. For the purpose of incorporating the amendment
3925 made by this act to section 718.112, Florida Statutes, in
3926 references thereto, paragraph (d) of subsection (1) of section
3927 718.618, Florida Statutes, is reenacted to read:
3928 718.618 Converter reserve accounts; warranties.—
3929 (1) When existing improvements are converted to ownership
3930 as a residential condominium, the developer shall establish
3931 converter reserve accounts for capital expenditures and deferred
3932 maintenance, or give warranties as provided by subsection (6),
3933 or post a surety bond as provided by subsection (7). The
3934 developer shall fund the converter reserve accounts in amounts
3935 calculated as follows:
3936 (d) In addition to establishing the reserve accounts
3937 specified above, the developer shall establish those other
3938 reserve accounts required by s. 718.112(2)(f), and shall fund
3939 those accounts in accordance with the formula provided therein.
3940 The vote to waive or reduce the funding or reserves required by
3941 s. 718.112(2)(f) does not affect or negate the obligations
3942 arising under this section.
3943 Section 20. For the purpose of incorporating the amendment
3944 made by this act to sections 718.111, 718.112, and 718.503,
3945 Florida Statutes, in references thereto, subsections (1) and (3)
3946 of section 718.706, Florida Statutes, are reenacted to read:
3947 718.706 Specific provisions pertaining to offering of units
3948 by a bulk assignee or bulk buyer.—
3949 (1) Before offering more than seven units in a single
3950 condominium for sale or for lease for a term exceeding 5 years,
3951 a bulk assignee or a bulk buyer must file the following
3952 documents with the division and provide such documents to a
3953 prospective purchaser or tenant:
3954 (a) An updated prospectus or offering circular, or a
3955 supplement to the prospectus or offering circular, filed by the
3956 original developer prepared in accordance with s. 718.504, which
3957 must include the form of contract for sale and for lease in
3958 compliance with s. 718.503(2);
3959 (b) An updated Frequently Asked Questions and Answers
3960 sheet;
3961 (c) The executed escrow agreement if required under s.
3962 718.202; and
3963 (d) The financial information required by s. 718.111(13).
3964 However, if a financial information report did not exist before
3965 the acquisition of title by the bulk assignee or bulk buyer, and
3966 if accounting records that permit preparation of the required
3967 financial information report for that period cannot be obtained
3968 despite good faith efforts by the bulk assignee or the bulk
3969 buyer, the bulk assignee or bulk buyer is excused from the
3970 requirement of this paragraph. However, the bulk assignee or
3971 bulk buyer must include in the purchase contract the following
3972 statement in conspicuous type:
3973
3974 ALL OR A PORTION OF THE FINANCIAL INFORMATION REPORT
3975 REQUIRED UNDER S. 718.111(13) FOR THE TIME PERIOD
3976 BEFORE THE SELLER’S ACQUISITION OF THE UNIT IS NOT
3977 AVAILABLE OR CANNOT BE OBTAINED DESPITE THE GOOD FAITH
3978 EFFORTS OF THE SELLER.
3979
3980 (3) A bulk assignee, while in control of the board of
3981 administration of the association, may not authorize, on behalf
3982 of the association:
3983 (a) The waiver of reserves or the reduction of funding of
3984 the reserves pursuant to s. 718.112(2)(f)2., unless approved by
3985 a majority of the voting interests not controlled by the
3986 developer, bulk assignee, and bulk buyer; or
3987 (b) The use of reserve expenditures for other purposes
3988 pursuant to s. 718.112(2)(f)3., unless approved by a majority of
3989 the voting interests not controlled by the developer, bulk
3990 assignee, and bulk buyer.
3991 Section 21. For the purpose of incorporating the amendment
3992 made by this act to section 719.106, Florida Statutes, in a
3993 reference thereto, subsection (24) of section 719.103, Florida
3994 Statutes, is reenacted to read:
3995 719.103 Definitions.—As used in this chapter:
3996 (24) “Structural integrity reserve study” means a study of
3997 the reserve funds required for future major repairs and
3998 replacement of the cooperative property performed as required
3999 under s. 719.106(1)(k).
4000 Section 22. For the purpose of incorporating the amendment
4001 made by this act to section 719.106, Florida Statutes, in
4002 references thereto, paragraph (a) of subsection (7) and
4003 paragraph (c) of subsection (20) of section 719.504, Florida
4004 Statutes, are reenacted to read:
4005 719.504 Prospectus or offering circular.—Every developer of
4006 a residential cooperative which contains more than 20
4007 residential units, or which is part of a group of residential
4008 cooperatives which will be served by property to be used in
4009 common by unit owners of more than 20 residential units, shall
4010 prepare a prospectus or offering circular and file it with the
4011 Division of Florida Condominiums, Timeshares, and Mobile Homes
4012 prior to entering into an enforceable contract of purchase and
4013 sale of any unit or lease of a unit for more than 5 years and
4014 shall furnish a copy of the prospectus or offering circular to
4015 each buyer. In addition to the prospectus or offering circular,
4016 each buyer shall be furnished a separate page entitled
4017 “Frequently Asked Questions and Answers,” which must be in
4018 accordance with a format approved by the division. This page
4019 must, in readable language: inform prospective purchasers
4020 regarding their voting rights and unit use restrictions,
4021 including restrictions on the leasing of a unit; indicate
4022 whether and in what amount the unit owners or the association is
4023 obligated to pay rent or land use fees for recreational or other
4024 commonly used facilities; contain a statement identifying that
4025 amount of assessment which, pursuant to the budget, would be
4026 levied upon each unit type, exclusive of any special
4027 assessments, and which identifies the basis upon which
4028 assessments are levied, whether monthly, quarterly, or
4029 otherwise; state and identify any court cases in which the
4030 association is currently a party of record in which the
4031 association may face liability in excess of $100,000; and state
4032 whether membership in a recreational facilities association is
4033 mandatory and, if so, identify the fees currently charged per
4034 unit type. The division shall by rule require such other
4035 disclosure as in its judgment will assist prospective
4036 purchasers. The prospectus or offering circular may include more
4037 than one cooperative, although not all such units are being
4038 offered for sale as of the date of the prospectus or offering
4039 circular. The prospectus or offering circular must contain the
4040 following information:
4041 (7) A description of the recreational and other facilities
4042 that will be used in common with other cooperatives, community
4043 associations, or planned developments which require the payment
4044 of the maintenance and expenses of such facilities, directly or
4045 indirectly, by the unit owners. The description shall include,
4046 but not be limited to, the following:
4047 (a) Each building and facility committed to be built and a
4048 summary description of the structural integrity of each building
4049 for which reserves are required pursuant to s. 719.106(1)(k).
4050
4051 Descriptions shall include location, areas, capacities, numbers,
4052 volumes, or sizes and may be stated as approximations or
4053 minimums.
4054 (20) An estimated operating budget for the cooperative and
4055 the association, and a schedule of the unit owner’s expenses
4056 shall be attached as an exhibit and shall contain the following
4057 information:
4058 (c) The estimated items of expenses of the cooperative and
4059 the association, except as excluded under paragraph (b),
4060 including, but not limited to, the following items, which shall
4061 be stated as an association expense collectible by assessments
4062 or as unit owners’ expenses payable to persons other than the
4063 association:
4064 1. Expenses for the association and cooperative:
4065 a. Administration of the association.
4066 b. Management fees.
4067 c. Maintenance.
4068 d. Rent for recreational and other commonly used areas.
4069 e. Taxes upon association property.
4070 f. Taxes upon leased areas.
4071 g. Insurance.
4072 h. Security provisions.
4073 i. Other expenses.
4074 j. Operating capital.
4075 k. Reserves for all applicable items referenced in s.
4076 719.106(1)(k).
4077 l. Fee payable to the division.
4078 2. Expenses for a unit owner:
4079 a. Rent for the unit, if subject to a lease.
4080 b. Rent payable by the unit owner directly to the lessor or
4081 agent under any recreational lease or lease for the use of
4082 commonly used areas, which use and payment are a mandatory
4083 condition of ownership and are not included in the common
4084 expense or assessments for common maintenance paid by the unit
4085 owners to the association.
4086 Section 23. Except as otherwise provided in this act, this
4087 act shall take effect July 1, 2025.