Florida Senate - 2025 CS for CS for CS for SB 1742
By the Committee on Rules; the Appropriations Committee on
Agriculture, Environment, and General Government; the Committee
on Regulated Industries; and Senators Bradley and Pizzo
595-03812-25 20251742c3
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. 468.4335, F.S.; revising what
42 constitutes a rebuttable presumption of a conflict of
43 interest with a community association manager or a
44 community association management firm; defining the
45 term “compensation”; requiring an association to
46 solicit multiple bids from other third-party providers
47 if a bid that exceeds a specified amount is or may
48 reasonably be construed to be a conflict of interest;
49 providing applicability; deleting a requirement that
50 all contracts and transactional documents related to a
51 proposed activity that is a conflict of interest be
52 attached to the meeting agenda of the next board of
53 administration meeting; requiring the notice of the
54 board meeting to include certain information about the
55 proposed activity that is a conflict of interest;
56 deleting a requirement that the proposed activity be
57 disclosed at the next regular or special meeting of
58 the members; providing that a contract is voidable if
59 certain findings are made; providing specifications
60 for terminating a contract; making technical changes;
61 amending s. 553.899, F.S.; requiring the local
62 enforcement agency responsible for milestone
63 inspections to provide to the Department of Business
64 and Professional Regulation certain information in an
65 electronic format; specifying the information to be
66 provided to the department; requiring the department
67 to contract with the University of Florida for the
68 creation of a report that provides certain information
69 on milestone inspections during a specified timeframe;
70 requiring a local enforcement agency to provide the
71 university with certain information; authorizing the
72 university to request any additional information from
73 a local enforcement agency required to complete the
74 report; requiring the university to compile the report
75 and the department to transmit the report to the
76 Governor and the Legislature; requiring, rather than
77 authorizing, the board of county commissioners or a
78 municipal governing body to adopt a specified
79 ordinance; requiring specified professionals who bid
80 to perform a milestone inspection to disclose to the
81 association in writing their intent to bid on services
82 related to any maintenance, repair, or replacement
83 that may be recommended by the milestone inspection;
84 prohibiting such professionals from having any
85 interest in or being related to any person having any
86 interest in the firm or entity providing the
87 association’s milestone inspection unless such
88 relationship is disclosed in writing; defining the
89 term “relative”; providing that a contract for
90 services is voidable and terminates upon the
91 association filing a written notice terminating such a
92 contract if such professionals fail to provide a
93 written disclosure of such relationship with the firm
94 conducting the milestone inspection; providing that
95 such professionals may be subject to discipline for
96 failure to provide such written disclosure; amending
97 s. 718.103, F.S.; revising the definition of the term
98 “alternative funding method”; defining the term “video
99 conference”; amending s. 718.111, F.S.; requiring a
100 community association manager or a community
101 association management firm that contracts with a
102 community association to possess specific licenses;
103 providing that all board members or officers of a
104 community association that contracts with a community
105 association manager or a community association
106 management firm have a duty to ensure that the
107 community association manager or community association
108 management firm is properly licensed before entering
109 into a contract; authorizing a community association
110 to terminate a contract with a community association
111 manager or a community association management firm if
112 the manager’s or management firm’s license is
113 suspended or revoked during the term of the contract;
114 providing that a community association may terminate a
115 contract with a community association management firm
116 if such firm has its license suspended or revoked,
117 effective upon the date of the license suspension or
118 revocation; requiring every condominium association to
119 have adequate property insurance; deleting specified
120 required coverage; providing that the amount of
121 adequate insurance coverage may be based on the
122 replacement cost of the property to be insured, as
123 determined by an independent insurance appraisal or
124 previous appraisal; requiring that such replacement
125 cost be determined according to a specified timeframe;
126 providing that an association’s obligation to obtain
127 and provide adequate property insurance may be
128 satisfied by obtaining and maintaining insurance
129 coverage sufficient to cover a specified amount;
130 revising which items constitute the official records
131 of the association; requiring that certain documents
132 be posted on certain associations’ websites or made
133 available for download through an application on a
134 mobile device within a specified timeframe; revising
135 which documents must be posted in digital format on
136 the association’s website or application; revising the
137 timeframe in which the association must deliver a copy
138 of the most recent financial report or a notice that a
139 copy of the most recent financial report will be
140 distributed; revising the methods of delivery for a
141 copy of the most recent association financial report
142 to include electronic delivery via the Internet;
143 requiring that an officer or a director execute an
144 affidavit as evidence of compliance with the delivery
145 requirement; revising how financial reports are
146 prepared; requiring an association board to use best
147 efforts to make prudent investment decisions in
148 fulfilling its duty to manage operating and reserve
149 funds of the association; authorizing an association,
150 including a multicondominium association, to invest
151 reserve funds in specified financial institutions;
152 authorizing such associations to place reserve funds
153 in other investments upon a majority vote of the
154 voting interests of the association; providing
155 restrictions; prohibiting any funds not identified as
156 reserve funds from being used for investments;
157 requiring a board to create an investment committee
158 composed of a specified minimum number of board
159 members; requiring the board to adopt rules; requiring
160 that all meetings of the investment committee be
161 recorded and made part of the official records of the
162 association; requiring that the investment policy
163 statement developed pursuant to certain provisions
164 address specified issues; requiring the investment
165 committee to recommend investment advisers to the
166 board; requiring the board to select one of the
167 recommended investment advisers to provide services to
168 the association; requiring that such advisers be
169 registered; prohibiting an investment adviser from
170 being related to any board member, community
171 management company, reserve study provider, or co
172 owner of a unit with a board member or investment
173 committee member; requiring investment advisers to
174 comply with the prudent investor rule; requiring an
175 adviser to act as a fiduciary to the association;
176 providing that the investment and fiduciary standards
177 required by the act take precedence over any
178 conflicting law; requiring the investment committee to
179 recommend a replacement adviser if the committee
180 determines that an investment adviser is not meeting
181 requirements; requiring the association to provide the
182 investment adviser with specified financial
183 information at least once each calendar year, or
184 sooner if a substantial financial obligation of the
185 association becomes known to the board; requiring the
186 investment adviser to annually review such financial
187 information and provide the association with a
188 portfolio allocation model that is suitably structured
189 and prudently designed to match projected annual
190 reserve fund requirements and liability, assets, and
191 liquidity requirements; requiring the investment
192 adviser to prepare a funding projection for each
193 reserve component, including any of the component’s
194 redundancies; requiring that a specified minimum
195 timeframe of projected reserves in cash or cash
196 equivalents be available to the association;
197 authorizing a portfolio managed by an investment
198 adviser to contain any type of investment necessary to
199 meet the objectives in the investment policy
200 statement; providing exceptions; requiring that any
201 funds invested by the investment adviser be held in
202 third-party custodial accounts that are subject to
203 insurance coverage by the Securities Investor
204 Protection Corporation in an amount equal to or
205 greater than the invested amount; authorizing the
206 investment adviser to withdraw investment fees,
207 expenses, and commissions from invested funds;
208 requiring the investment adviser to annually provide
209 the association with a written certification of
210 compliance with certain provisions and provide the
211 association with a list of certain stocks, securities,
212 and other obligations; requiring the investment
213 adviser to submit monthly, quarterly, and annual
214 reports to the association, prepared in accordance
215 with established financial industry standards;
216 requiring that any principal, earnings, or interest
217 managed be available to the association at no cost
218 within a specified timeframe after the association’s
219 written or electronic request; requiring that
220 unallocated income earned on reserve fund investments
221 be spent only on specified expenditures; amending s.
222 718.112, F.S.; authorizing an association board
223 meeting to be conducted in person or by video
224 conference; requiring the Division of Florida
225 Condominiums, Timeshares, and Mobile Homes to adopt
226 rules; requiring that notice for board meetings
227 conducted via video conference contain specific
228 information; requiring that such meetings be recorded
229 and maintained as an official record of the
230 association; revising how notice may be sent to unit
231 owners; revising the distance from the condominium
232 property within which a unit owner meeting must be
233 held; authorizing a unit owner to vote electronically
234 if the unit owner meeting is conducted via video
235 conference; authorizing unit owner meetings to be
236 conducted in person or via video conference;
237 specifying what constitutes a quorum for meetings held
238 via video conference; requiring that the location of
239 the meeting be provided in the association bylaws or
240 within a specified distance from, or within the same
241 county of, the condominium property if the bylaws are
242 silent as to the location; requiring that meetings
243 held via video conference be recorded and be
244 maintained as an official record of the association;
245 requiring the division to adopt rules; revising the
246 method of serving notices of unit owner meetings;
247 authorizing budget meetings to be conducted via video
248 conference; requiring the division to adopt rules;
249 requiring that a sound transmitting device be used at
250 such meetings for a specified purpose; revising a
251 provision that a board proposing a budget that
252 requires a certain special assessment against unit
253 owners to simultaneously propose a substitute budget
254 that meets certain requirements, rather than conduct a
255 special meeting of the unit owners to consider a
256 substitute budget after the adoption of the annual
257 budget; requiring unit owners, rather than authorizing
258 them, to consider a substitute budget; authorizing the
259 annual budget initially proposed to be adopted by the
260 board; revising the criteria used in determining
261 whether assessments exceed the specified percentage of
262 assessments of the previous fiscal year; revising the
263 threshold for deferred maintenance expenses or
264 replacements in reserve accounts; authorizing the
265 members to vote to waive the maintenance of reserves
266 recommended in the most recent structural integrity
267 reserve study under certain circumstances; revising
268 the provision that any association, rather than an
269 association operating a multicondominium, may
270 determine to provide no reserves or less reserves than
271 required if an alternative funding method is used by
272 the association; deleting the requirement that the
273 division approve the funding method; providing that
274 specified reserves may be funded by regular
275 assessments, special assessments, lines of credit, or
276 loans under certain circumstances; authorizing a unit
277 owner-controlled association that is required to have
278 a structural reserve study to obtain a line of credit
279 or a loan to fund capital expenses required by a
280 milestone inspection or a structural integrity reserve
281 study; requiring that such line of credit or loan be
282 approved by a majority of the total voting interests
283 of the association; requiring that such line of credit
284 or loan be sufficient to fund the cumulative amount of
285 any previously waived or unfunded portions of the
286 reserve funding amount and the most recent structural
287 integrity reserve study; requiring that funding from
288 the line of credit or loan be immediately available
289 for access by the board for a specified purpose;
290 requiring that such lines of credit or loans be
291 included in the association’s financial report;
292 providing applicability; deleting a requirement that
293 the majority of the members must approve of the board
294 pausing contributions to the association’s reserves
295 for a specified purpose; authorizing the board to
296 temporarily pause reserve fund contributions or reduce
297 the amount of reserve funding for a specified purpose
298 for a budget adopted on or before a specified date if
299 the association has completed a milestone inspection
300 within a specified timeframe and such inspection
301 recommended certain repairs; requiring that such
302 temporary pause or reduction be approved by a majority
303 of the total voting interests of the association;
304 providing applicability; requiring associations that
305 have paused or reduced their reserve funding to have a
306 structural integrity reserve study performed before
307 the continuation of reserve contributions for
308 specified purposes; providing that a vote of the
309 members is not required for the board to change the
310 accounting method for reserves to specified accounting
311 methods; requiring the division to annually adjust for
312 inflation the minimum threshold amount for required
313 reserves, based on specified criteria; requiring the
314 division, by a specified date and annually thereafter,
315 to conspicuously post on its website the inflation
316 adjusted minimum threshold amount for required
317 reserves; revising the items to be included in a
318 structural integrity reserve study; requiring
319 specified design professionals or contractors who bid
320 to perform a structural integrity reserve study to
321 disclose in writing to the association their intent to
322 bid on any services related to the maintenance,
323 repair, or replacement that may be recommended by the
324 structural integrity reserve study; prohibiting such
325 professionals or contractors from having any interest
326 in or being related to any person having any interest
327 in the firm or entity providing the association’s
328 structural integrity reserve study unless such
329 relationship is disclosed in writing; defining the
330 term “relative”; providing that a contract for
331 services is voidable and terminates upon the
332 association filing a written notice terminating such a
333 contract if such professional or contractor fails to
334 provide a written disclosure of such relationship with
335 the firm conducting the structural integrity reserve
336 study; providing that such professional or contractor
337 may be subject to discipline for his or her failure to
338 provide such written disclosure; requiring that a
339 structural integrity reserve study include a
340 recommendation for a reserve funding schedule based on
341 specified criteria; authorizing the study to recommend
342 other types of reserve funding schedules, provided
343 each recommended schedule is sufficient to meet the
344 association’s maintenance obligations; requiring that
345 reserves not required for certain items be separately
346 identified as such in the structural integrity reserve
347 study; requiring the structural integrity reserve
348 study to take into consideration the funding method or
349 methods used by the association to fund its
350 maintenance and reserve funding obligations through
351 regular assessments, special assessments, lines of
352 credit, or loans; requiring a structural integrity
353 reserve study that has been performed before the
354 approval of a special assessment or the securing of a
355 line of credit or a loan to be updated to reflect
356 certain information regarding the reserve funding
357 schedule; authorizing a structural integrity reserve
358 study to be updated to reflect changes in the useful
359 life of the reserve items after such items are
360 repaired or replaced, and the effect such repair or
361 replacement will have on the reserve funding schedule;
362 requiring an association to obtain an updated
363 structural integrity reserve study before adopting any
364 budget in which the reserve funding from regular
365 assessments, special assessments, lines of credit, or
366 loans do not align with the funding plan from the most
367 recent version of the structural integrity reserve
368 study; authorizing an association to delay a required
369 structural integrity reserve study for a specified
370 timeframe if it has completed a milestone inspection
371 or similar inspection, for a specified purpose;
372 requiring an officer or director of an association to
373 sign an affidavit acknowledging receipt of the
374 completed structural integrity reserve study;
375 requiring the division to adopt rules for the form for
376 the structural integrity reserve study in coordination
377 with the Florida Building Commission; making technical
378 changes; amending s. 718.501, F.S.; revising the
379 duties of the Division of Florida Condominiums,
380 Timeshares, and Mobile Homes regarding investigation
381 of complaints; requiring condominium associations to
382 create and maintain an online account with the
383 division; requiring board members to maintain accurate
384 contact information on file with the division;
385 requiring the division to adopt rules; requiring all
386 condominium associations to create and maintain an
387 online account with the division; requiring all
388 condominium associations to provide specified
389 information to the division by a specified date;
390 requiring that such information be updated within a
391 specified timeframe; requiring the division to adopt
392 rules; authorizing the division to require condominium
393 associations to provide information to the division;
394 specifying the information to be provided to the
395 division; amending s. 718.503, F.S.; revising the
396 disclosures that must be included in a contract for
397 the sale and resale of a residential unit; amending s.
398 8 of chapter 2024-244, Laws of Florida, as amended;
399 revising the documents required to be posted on
400 certain associations’ websites or be made available
401 through download using an application on a mobile
402 device; amending s. 31 of chapter 2024-244, Laws of
403 Florida; revising applicability; amending s. 719.104,
404 F.S.; requiring a board to use best efforts to make
405 prudent investment decisions in fulfilling its duty to
406 manage operating and reserve funds of the cooperative
407 association; authorizing an association to invest
408 reserve funds in specified financial institutions;
409 authorizing such associations to place reserve funds
410 in other investments upon a majority vote of the
411 voting interests of the association; providing
412 restrictions; prohibiting any funds not identified as
413 reserve funds from being used for investments;
414 providing applicability; requiring a board to create
415 an investment committee composed of a specified
416 minimum number of board members; requiring the board
417 to adopt rules; requiring that all meetings of the
418 investment committee be recorded and made part of the
419 official records of the association; requiring that
420 the investment policy statement developed pursuant to
421 certain provisions address specified issues; requiring
422 the investment committee to recommend investment
423 advisers to the board; requiring the board to select
424 one of the recommended investment advisers to provide
425 services to the association; requiring such advisers
426 to be registered; prohibiting an investment adviser
427 from being related to any board member, community
428 management company, reserve study provider, or co
429 owner of a unit with a board member or investment
430 committee member; requiring investment advisers to
431 comply with the prudent investor rule; requiring an
432 adviser to act as a fiduciary to the association;
433 providing that the investment and fiduciary standards
434 required by the act take precedence over any
435 conflicting law; requiring the investment committee to
436 recommend a replacement adviser if the committee
437 determines that an investment adviser is not meeting
438 requirements; requiring the association to provide the
439 investment adviser with specified financial
440 information at least once each calendar year, or
441 sooner if a substantial financial obligation of the
442 association becomes known to the board; requiring the
443 investment adviser to annually review such financial
444 information and provide the association with a
445 portfolio allocation model that is suitably structured
446 and prudently designed to match projected annual
447 reserve fund requirements and liability, assets, and
448 liquidity requirements; requiring the investment
449 adviser to prepare a funding projection for each
450 reserve component, including any of the component’s
451 redundancies; requiring that a specified minimum
452 timeframe of projected reserves in cash or cash
453 equivalents be available to the association;
454 authorizing a portfolio managed by an investment
455 adviser to contain any type of investment necessary to
456 meet the objectives in the investment policy
457 statement; providing exceptions; requiring that any
458 funds invested by the investment adviser be held in
459 third-party custodial accounts that are subject to
460 insurance coverage by the Securities Investor
461 Protection Corporation in an amount equal to or
462 greater than the invested amount; authorizing the
463 investment adviser to withdraw investment fees,
464 expenses, and commissions from invested funds;
465 requiring the investment adviser to annually provide
466 the association with a written certification of
467 compliance with certain provisions and provide the
468 association with a list of certain stocks, securities,
469 and other obligations; requiring the investment
470 adviser to submit monthly, quarterly, and annual
471 reports to the association, prepared in accordance
472 with established financial industry standards;
473 requiring that any principal, earnings, or interest
474 managed be available to the association at no cost
475 within a specified timeframe after the association’s
476 written or electronic request; requiring that
477 unallocated income earned on reserve fund investments
478 be spent only on specified expenditures; amending s.
479 719.106, F.S.; revising the deferred maintenance
480 expense or replacement costs threshold that must be in
481 reserve accounts; authorizing the board to pause
482 contributions to its reserves or reduce reserve
483 funding if a local building official determines the
484 entire cooperative building is uninhabitable due to a
485 natural emergency; authorizing any reserve account
486 fund held by the association to be expended to make
487 the cooperative building and its structures habitable,
488 pursuant to the board’s determination; requiring the
489 association to immediately resume contributing funds
490 to its reserves once the local building official
491 determines that the cooperative building is habitable;
492 authorizing certain reserves be funded by regular
493 assessments, special assessments, lines of credit, or
494 loans under certain circumstances; authorizing a unit
495 owner-controlled association to obtain a line of
496 credit or a loan to fund capital expenses required by
497 a milestone inspection or a structural integrity
498 reserve study; requiring that such lines of credit or
499 loans be approved by a majority vote of the total
500 voting interests of the association; requiring that
501 such lines of credit or loans be sufficient to fund
502 the cumulative amount of any previously waived or
503 unfunded portion of the reserve funding amount and
504 most recent structural integrity reserve study;
505 requiring that funding from such lines of credit or
506 loans be immediately available for access by the board
507 for a specified purpose; authorizing the board to
508 temporarily pause reserve fund contributions or reduce
509 the amount of reserve funding for a specified purpose
510 for a budget adopted on or before a specified date if
511 the association has completed a milestone inspection
512 within a specified timeframe; requiring that such
513 temporary pause or reduction be approved by a majority
514 of the total voting interests of the association;
515 providing applicability; requiring associations that
516 have paused or reduced their reserve funding
517 contributions to have a structural integrity reserve
518 study performed before the continuation of reserve
519 contributions for specified purposes; providing that a
520 vote of the members is not required for the board to
521 change the accounting method for reserves to specified
522 accounting methods; requiring the division to annually
523 adjust for inflation the minimum threshold amount for
524 required reserves, based on specified criteria;
525 requiring the division, by a specified date and
526 annually thereafter, to conspicuously post on its
527 website the inflation-adjusted minimum threshold
528 amount for required reserves; requiring specified
529 design professionals or contractors, rather than any
530 person qualified to perform a structural integrity
531 reserve study, to perform structural integrity reserve
532 studies; requiring such design professionals or
533 contractors who bid to perform a structural integrity
534 reserve study to disclose in writing to the
535 association their intent to bid on any services
536 related to the maintenance, repair, or replacement
537 that may be recommended by the structural integrity
538 reserve study; prohibiting such professionals or
539 contractors from having any interest in or being
540 related to any person having any interest in the firm
541 or entity providing the association’s structural
542 integrity reserve study unless such relationship is
543 disclosed in writing; defining the term “relative”;
544 providing that a contract for services is voidable and
545 terminates upon the association filing a written
546 notice terminating such a contract if such
547 professional or contractor fails to provide a written
548 disclosure of such relationship with the firm
549 conducting the structural integrity reserve study;
550 providing that such professional or contractor may be
551 subject to discipline for his or her failure to
552 provide such written disclosure; requiring that a
553 structural integrity reserve study include a
554 recommendation for a reserve funding schedule based on
555 specified criteria; authorizing the study to recommend
556 other types of reserve funding schedules, provided
557 each recommended schedule is sufficient to meet the
558 association’s maintenance obligation; requiring that
559 reserves not required for certain items be separately
560 identified as such in the structural integrity reserve
561 study; requiring the structural integrity reserve
562 study to take into consideration the funding method or
563 methods used by the association to fund its
564 maintenance and reserve funding obligations through
565 regular assessments, special assessments, lines of
566 credit, or loans; requiring a structural integrity
567 reserve study that has been performed before the
568 approval of a special assessment or the securing of a
569 line of credit or a loan to be updated to reflect
570 certain information regarding the reserve funding
571 schedule; authorizing a structural integrity reserve
572 study to be updated to reflect changes in the useful
573 life of the reserve items after such items are
574 repaired or replaced, and the effect of such repair or
575 replacement will have on the reserve funding schedule;
576 requiring an association to obtain an updated
577 structural integrity reserve study before adopting any
578 budget in which the reserve funding from regular
579 assessments, special assessments, lines of credit, or
580 loans do not align with the funding plan from the most
581 recent version of the structural integrity reserve
582 study; authorizing an association to delay a required
583 structural integrity reserve study for a specified
584 timeframe if it has completed a milestone inspection
585 or similar inspection, for a specified purpose;
586 requiring an officer or a director of the association
587 to sign an affidavit acknowledging receipt of the
588 completed structural integrity reserve study;
589 requiring the division to adopt by rule the form for
590 the structural integrity reserve study in coordination
591 with the Florida Building Commission; amending s.
592 719.501, F.S.; requiring a cooperative association to
593 create and maintain an online account with the
594 division; requiring board members to maintain accurate
595 contact information on file with the division;
596 requiring the division to adopt rules; authorizing the
597 division to require cooperative associations to
598 provide information to the division no more than once
599 per year; providing an exception; requiring the
600 division to provide associations a specified timeframe
601 to provide any required information; specifying the
602 information the division may request; amending s.
603 719.503, F.S.; revising the disclosures that must be
604 included in a contract for the sale and resale of an
605 interest in a cooperative; amending s. 914.21, F.S.;
606 revising the definition of the term “official
607 investigation”; providing appropriations; reenacting
608 s. 468.436(2)(b), F.S., relating to disciplinary
609 proceedings, to incorporate the amendment made to s.
610 468.4335, F.S., in a reference thereto; reenacting s.
611 721.13(3)(e), F.S., relating to management, to
612 incorporate the amendment made to s. 718.111, F.S., in
613 a reference thereto; reenacting ss. 718.504(7)(a) and
614 (21)(c) and 718.618(1)(d), F.S., relating to
615 prospectus or offering circulars and converter reserve
616 accounts and warranties, respectively, to incorporate
617 the amendment made to s. 718.112, F.S., in references
618 thereto; reenacting s. 718.706(1) and (3), F.S.,
619 relating to specific provisions pertaining to offering
620 of units by bulk assignees or bulk buyers, to
621 incorporate the amendments made to ss. 718.111,
622 718.112, and 718.503, F.S., in references thereto;
623 reenacting ss. 719.103(24) and 719.504(7)(a) and
624 (20)(c), F.S., relating to definitions and prospectus
625 or offering circulars, respectively, to incorporate
626 the amendment made to s. 719.106, F.S., in references
627 thereto; providing effective dates.
628
629 Be It Enacted by the Legislature of the State of Florida:
630
631 Section 1. Paragraph (h) is added to subsection (2) of
632 section 468.432, Florida Statutes, and subsection (3) is added
633 to that section, to read:
634 468.432 Licensure of community association managers and
635 community association management firms; exceptions.—
636 (2) A community association management firm or other
637 similar organization responsible for the management of more than
638 10 units or a budget of $100,000 or greater shall not engage or
639 hold itself out to the public as being able to engage in the
640 business of community association management in this state
641 unless it is licensed by the department as a community
642 association management firm in accordance with the provisions of
643 this part.
644 (h) A person who has had his or her community association
645 manager license revoked may not have an indirect or direct
646 ownership interest in, or be an employee, a partner, an officer,
647 a director, or a trustee of, a community association management
648 firm during the 10-year period after the effective date of the
649 revocation. Such person is ineligible to reapply for
650 certification or registration under this part for a period of 10
651 years after the effective date of a revocation.
652 (3) A licensee must create and maintain an online licensure
653 account with the department. Each community association manager
654 must identify on his or her online licensure account the
655 community association management firm for which he or she
656 provides management services and identify each community
657 association for which he or she is the designated onsite
658 community association manager. A licensee must update his or her
659 online licensure account with this information within 30 days
660 after any change to the required information. A community
661 association management firm must identify on its online
662 licensure account the community association managers that it
663 employs to provide community association management services. If
664 a community association manager has his or her license suspended
665 or revoked, the department must give written notice of such
666 suspension or revocation to the community association management
667 firm and the community association for which the manager
668 performs community management services.
669 Section 2. Subsections (1) and (3) of section 468.4334,
670 Florida Statutes, are amended to read:
671 468.4334 Professional practice standards; liability;
672 community association manager requirements; return of records
673 after termination of contract.—
674 (1)(a) A community association manager or a community
675 association management firm is deemed to act as agent on behalf
676 of a community association as principal within the scope of
677 authority authorized by a written contract or under this
678 chapter. A community association manager or a community
679 association management firm may not knowingly perform any act
680 directed by the community association if such an act violates
681 any state or federal law. A community association manager and a
682 community association management firm shall discharge duties
683 performed on behalf of the association as authorized by this
684 chapter loyally, skillfully, and diligently; dealing honestly
685 and fairly; in good faith; with care and full disclosure to the
686 community association; accounting for all funds; and not
687 charging unreasonable or excessive fees.
688 (b) If a community association manager or a community
689 association management firm has a contract with a community
690 association that is subject to the milestone inspection
691 requirements in s. 553.899, or the structural integrity reserve
692 study requirements in s. 718.112(2)(g) and 719.106(1)(k), the
693 community association manager or the community association
694 management firm must comply with those sections that section as
695 directed by the board.
696 (c) Each contract between a community association and a
697 community association manager or community association
698 management firm for community association management services
699 must include the following written statement in at least 12
700 point type, if applicable to the type of management services
701 provided in the contract:
702
703 The community association manager shall abide by all
704 professional standards and record keeping requirements
705 imposed pursuant to part VIII of chapter 468, Florida
706 Statutes.
707
708 (d) A contract between a community association manager or
709 community association management firm and a community
710 association may not waive or limit the professional practice
711 standards required pursuant to this part.
712 (3) A community association manager or community
713 association management firm that is authorized by contract to
714 provide community association management services to a community
715 homeowners’ association shall do all of the following:
716 (a) Attend in person at least one member meeting or board
717 meeting of the community homeowners’ association annually.
718 (b) Provide to the members of the community homeowners’
719 association the name and contact information for each community
720 association manager or representative of a community association
721 management firm assigned to the community homeowners’
722 association, the manager’s or representative’s hours of
723 availability, and a summary of the duties for which the manager
724 or representative is responsible. The community homeowners’
725 association shall also post this information on the
726 association’s website or mobile application, if the association
727 is required to maintain official records on a website or
728 application required under s. 720.303(4)(b). The community
729 association manager or community association management firm
730 shall update the community homeowners’ association and its
731 members within 14 business days after any change to such
732 information.
733 (c) Provide to any member upon request a copy of the
734 contract between the community association manager or community
735 association management firm and the community homeowners’
736 association and include such contract with association’s
737 official records.
738 Section 3. Section 468.4335, Florida Statutes, is amended
739 to read:
740 468.4335 Conflicts of interest.—
741 (1) A community association manager or a community
742 association management firm, including directors, officers, and
743 persons with a financial interest in a community association
744 management firm, or a relative of such persons, must disclose to
745 the board of a community association any activity that may
746 reasonably be construed to be a conflict of interest. A
747 rebuttable presumption of a conflict of interest exists if any
748 of the following occurs without prior notice:
749 (a) A community association manager or a community
750 association management firm, including directors, officers, and
751 persons with a financial interest in a community association
752 management firm, or a relative of such persons, proposes to
753 enter into a contract or other transaction with the association,
754 or enters into a contract for goods or services with the
755 association, for services other than community association
756 management services.
757 (b) A community association manager or a community
758 association management firm, including directors, officers, and
759 persons with a financial interest in a community association
760 management firm, or a relative of such persons, holds an
761 interest in or receives compensation or any thing of value from
762 a person as defined in s. 1.01(3) which corporation, limited
763 liability corporation, partnership, limited liability
764 partnership, or other business entity that conducts business
765 with the association or proposes to enter into a contract or
766 other transaction with the association. As used in this
767 paragraph, the term “compensation” means any referral fee or
768 other monetary benefit derived from a person as defined in s.
769 1.01(3) which provides products or services to the association,
770 and any ownership interests or profit-sharing arrangements with
771 product or service providers recommended to or used by the
772 association.
773 (2) If the association receives and considers a bid that
774 exceeds $2,500 to provide a good or service, other than
775 community association management services which is or may
776 reasonably be construed to be a conflict of interest under
777 subsection (1), from a community association manager or a
778 community association management firm, including directors,
779 officers, and persons with a financial interest in a community
780 association management firm, or a relative of such persons, the
781 association must solicit multiple bids from other third-party
782 providers of such goods or services. This subsection does not
783 apply to any activities or the provision of goods or services
784 that are disclosed in the management services contract as a
785 conflict of interest within the meaning of subsection (1).
786 (3) If a community association manager or a community
787 association management firm, including directors, officers, and
788 persons with a financial interest in a community association
789 management firm, or a relative of such persons, proposes to
790 engage in an activity that is a conflict of interest as
791 described in subsection (1), the proposed activity must be
792 listed on, and all contracts and transactional documents related
793 to the proposed activity must be attached to, the meeting agenda
794 of the next board of administration meeting. The notice for the
795 meeting at which the proposed activity will be considered by the
796 board must include a description of the proposed activity,
797 disclose the possible conflict of interest, and include a copy
798 of all contracts and transactional documents related to the
799 proposed activity. The disclosures of a possible conflict of
800 interest must be entered into the written minutes of the
801 meeting. Approval of the contract, including a management
802 contract between the community association and the community
803 association manager or community association management firm, or
804 other transaction requires an affirmative vote of two-thirds of
805 all directors present. At the next regular or special meeting of
806 the members, the existence of the conflict of interest and the
807 contract or other transaction must be disclosed to the members.
808 If a community association manager or community association
809 management firm has previously disclosed a conflict of interest
810 in an existing management contract entered into between the
811 board of directors and the community association manager or
812 community association management firm, the conflict of interest
813 does not need to be additionally noticed and voted on during the
814 term of such management contract, but, upon renewal, must be
815 noticed and voted on in accordance with this subsection.
816 (4) If the board finds that a community association manager
817 or a community association management firm, including directors,
818 officers, and persons with a financial interest in a community
819 association management firm, or a relative of such persons, has
820 violated this section, the contract is voidable and the
821 association may terminate cancel its community association
822 management contract with the community association manager or
823 the community association management firm by delivery of a
824 written notice terminating the contract. If the contract is
825 terminated canceled, the association is liable only for the
826 reasonable value of the management services provided up to the
827 time of cancellation and is not liable for any termination fees,
828 liquidated damages, or other form of penalty for such
829 cancellation.
830 (5) If an association enters into a contract with a
831 community association manager or a community association
832 management firm, including directors, officers, and persons with
833 a financial interest in a community association management firm,
834 or a relative of such persons, which is a party to or has an
835 interest in an activity that is a possible conflict of interest
836 as described in subsection (1) and such activity has not been
837 properly disclosed as a conflict of interest or potential
838 conflict of interest as required by this section, the contract
839 is voidable and terminates upon the association filing a written
840 notice terminating the contract with its board of directors
841 which contains the consent of at least 20 percent of the voting
842 interests of the association.
843 (6) As used in this section, the term “relative” means a
844 relative within the third degree of consanguinity by blood or
845 marriage.
846 Section 4. Subsection (11) and present subsections (12) and
847 (13) of section 553.899, Florida Statutes, are amended,
848 paragraphs (e) and (f) are added to subsection (3), and a new
849 subsection (12) is added to that section, to read:
850 553.899 Mandatory structural inspections for condominium
851 and cooperative buildings.—
852 (3)
853 (e) On or before October 1, 2025, and on or before each
854 December 31 thereafter, the local enforcement agency responsible
855 for milestone inspections must provide the department, in an
856 electronic format determined by the department, information that
857 may include, but is not limited to:
858 1. The number of buildings required to have a milestone
859 inspection within the agency’s jurisdiction.
860 2. The number of buildings for which a phase one milestone
861 inspection has been completed.
862 3. The number of buildings granted an extension under
863 paragraph (3)(c).
864 4. The number of buildings required to have a phase two
865 milestone inspection.
866 5. The number of buildings for which a phase two milestone
867 inspection has been completed.
868 6. The number, type, and value of permits applied for to
869 complete repairs pursuant to a phase two milestone inspection.
870 7. A list of buildings deemed to be unsafe or uninhabitable
871 due to a milestone inspection.
872 8. The license number of the building code administrator
873 responsible for milestone inspections for the local enforcement
874 agency.
875 (f) Subject to appropriation, the department shall contract
876 with the University of Florida for the purpose of creating a
877 report that provides comprehensive data, evaluation, and
878 analysis on the milestone inspections performed throughout this
879 state during each calendar year or other time period approved by
880 the department. Every local enforcement agency responsible for
881 milestone inspections must provide the university with a copy of
882 any phase one or phase two milestone inspection report by the
883 date specified by the department in a manner prescribed by the
884 university. The university may request any additional
885 information from a local enforcement agency which the university
886 requires to complete this report. The university shall compile
887 the report, and the department shall transmit the report to the
888 Governor, the President of the Senate, and the Speaker of the
889 House of Representatives.
890 (11) A board of county commissioners or municipal governing
891 body shall may adopt an ordinance requiring that a condominium
892 or cooperative association and any other owner that is subject
893 to this section schedule or commence repairs for substantial
894 structural deterioration within a specified timeframe after the
895 local enforcement agency receives a phase two inspection report;
896 however, such repairs must be commenced within 365 days after
897 receiving such report. If an owner of the building fails to
898 submit proof to the local enforcement agency that repairs have
899 been scheduled or have commenced for substantial structural
900 deterioration identified in a phase two inspection report within
901 the required timeframe, the local enforcement agency must review
902 and determine if the building is unsafe for human occupancy.
903 (12) A licensed architect or engineer who bids to perform a
904 milestone inspection must disclose in writing to the association
905 his or her intent to bid on any services related to any
906 maintenance, repair, or replacement which may be recommended by
907 the milestone inspection. Any design professional as defined in
908 s. 558.002(7) or contractor licensed under chapter 489 who
909 submits a bid to the association for performing any services
910 recommended by the milestone inspection may not have an
911 interest, directly or indirectly, in the firm or entity
912 providing the milestone inspection or be a relative of any
913 person having a direct or indirect interest in such firm, unless
914 such relationship is disclosed to the association in writing. As
915 used in this section, the term “relative” means a relative
916 within the third degree of consanguinity by blood or marriage. A
917 contract for services is voidable and terminates upon the
918 association filing a written notice terminating the contract if
919 the design professional or licensed contractor failed to provide
920 the written disclosure of the relationship required under this
921 subsection. A design professional or licensed contractor may be
922 subject to discipline under the applicable practice act for his
923 or her profession for failure to provide the written disclosure
924 of the relationship, as required under this subsection.
925 (13)(12) By December 31, 2024, the Florida Building
926 Commission shall adopt rules pursuant to ss. 120.536(1) and
927 120.54 to establish a building safety program for the
928 implementation of this section within the Florida Building Code:
929 Existing Building. The building inspection program must, at
930 minimum, include inspection criteria, testing protocols,
931 standardized inspection and reporting forms that are adaptable
932 to an electronic format, and record maintenance requirements for
933 the local authority.
934 (14)(13) The Florida Building Commission shall consult with
935 the State Fire Marshal to provide recommendations to the
936 Legislature for the adoption of comprehensive structural and
937 life safety standards for maintaining and inspecting all types
938 of buildings and structures in this state that are three stories
939 or more in height. The commission shall provide a written report
940 of its recommendations to the Governor, the President of the
941 Senate, and the Speaker of the House of Representatives by
942 December 31, 2023.
943 Section 5. Present subsections (33) and (34) of section
944 718.103, Florida Statutes, are redesignated as subsections (34)
945 and (35), respectively, a new subsection (33) is added to that
946 section, and subsection (1) of that section is amended, to read:
947 718.103 Definitions.—As used in this chapter, the term:
948 (1) “Alternative funding method” means a method approved by
949 the division for funding the capital expenditures and deferred
950 maintenance obligations of the association for a
951 multicondominium association operating at least 25 condominiums
952 which may reasonably be expected to fully satisfy the
953 association’s reserve funding obligations by the, including:
954 (a) The allocation of funds in the annual operating budget
955 of a multicondominium; or
956 (b) Any other method defined by rule of the division which
957 may reasonably be expected to fully satisfy the association’s
958 reserve funding obligations or fund its capital expenditure and
959 deferred maintenance obligations.
960 (33) “Video conference” means a real-time audio and video
961 based meeting between two or more people in different locations
962 using video-enabled and audio-enabled devices. The notice for
963 any meeting that will be conducted by video conference must have
964 a hyperlink and call-in conference telephone number for unit
965 owners to attend the meeting and must have a physical location
966 where unit owners can also attend the meeting in person. All
967 meetings conducted by video conference must be recorded and such
968 recording must be maintained as an official record of the
969 association.
970 Section 6. Paragraph (a) of subsection (11), paragraphs
971 (a), (c), and (g) of subsection (12), and subsection (13) of
972 section 718.111, Florida Statutes, are amended, paragraphs (g),
973 (h), and (i) are added to subsection (3) of that section, and
974 subsection (16) is added to that section, to read:
975 718.111 The association.—
976 (3) POWER TO MANAGE CONDOMINIUM PROPERTY AND TO CONTRACT,
977 SUE, AND BE SUED; CONFLICT OF INTEREST.—
978 (g) If an association contracts with a community
979 association manager or a community association management firm,
980 the community association manager or community association
981 management firm must possess all applicable licenses required by
982 part VIII of chapter 468. All board members or officers of an
983 association that contracts with a community association manager
984 or a community association management firm have a duty to ensure
985 that the community association manager or community association
986 management firm is properly licensed before entering into a
987 contract.
988 (h) If a contract is between a community association
989 manager and the association, and the community association
990 manager has his or her license suspended or revoked during the
991 term of a contract with the association, the association may
992 terminate the contract upon delivery of a written notice to the
993 community association manager whose license has been revoked or
994 suspended, effective on the date the community association
995 manager became unlicensed.
996 (i) If a community association management firm has its
997 license suspended or revoked during the term of a contract with
998 the association, the association may terminate the contract upon
999 delivery of a written notice to the community association
1000 management firm whose license has been revoked or suspended,
1001 effective on the date the community association management firm
1002 became unlicensed.
1003 (11) INSURANCE.—In order to protect the safety, health, and
1004 welfare of the people of this state of the State of Florida and
1005 to ensure consistency in the provision of insurance coverage to
1006 condominiums and their unit owners, this subsection applies to
1007 every residential condominium in this the state, regardless of
1008 the date of its declaration of condominium. It is the intent of
1009 the Legislature to encourage lower or stable insurance premiums
1010 for associations described in this subsection.
1011 (a) Every condominium association shall have adequate
1012 property insurance as determined under this paragraph,
1013 regardless of any requirement in the declaration of condominium
1014 for certain coverage by the association for full insurable
1015 value, replacement cost, or similar coverage, must be based on
1016 the replacement cost of the property to be insured as determined
1017 by an independent insurance appraisal or update of a prior
1018 appraisal. The replacement cost must be determined at least once
1019 every 36 months.
1020 1. An association or group of associations may provide
1021 adequate property insurance as determined under this paragraph
1022 through a self-insurance fund that complies with the
1023 requirements of ss. 624.460-624.488.
1024 2. The amount of adequate insurance coverage for full
1025 insurable value, replacement cost, or similar coverage may be
1026 based on the replacement cost of the property to be insured, as
1027 determined by an independent insurance appraisal or an update of
1028 a previous appraisal. The replacement cost must be determined at
1029 least once every 3 years, at minimum.
1030 3. The association’s obligation to obtain and association
1031 may also provide adequate property insurance coverage for a
1032 group of at least three communities created and operating under
1033 this chapter, chapter 719, chapter 720, or chapter 721 may be
1034 satisfied by obtaining and maintaining for such communities
1035 insurance coverage sufficient to cover an amount equal to the
1036 probable maximum loss for the communities for a 250-year
1037 windstorm event.
1038 a. Such probable maximum loss must be determined through
1039 the use of a competent model that has been accepted by the
1040 Florida Commission on Hurricane Loss Projection Methodology.
1041 b. A policy or program providing such coverage may not be
1042 issued or renewed after July 1, 2008, unless it has been
1043 reviewed and approved by the Office of Insurance Regulation. The
1044 review and approval must include approval of the policy and
1045 related forms pursuant to ss. 627.410 and 627.411, approval of
1046 the rates pursuant to s. 627.062, a determination that the loss
1047 model approved by the commission was accurately and
1048 appropriately applied to the insured structures to determine the
1049 250-year probable maximum loss, and a determination that
1050 complete and accurate disclosure of all material provisions is
1051 provided to condominium unit owners before execution of the
1052 agreement by a condominium association.
1053 4.3. When determining the adequate amount of property
1054 insurance coverage, the association may consider deductibles as
1055 determined by this subsection.
1056 (12) OFFICIAL RECORDS.—
1057 (a) From the inception of the association, the association
1058 shall maintain each of the following items, if applicable, which
1059 constitutes the official records of the association:
1060 1. A copy of the plans, permits, warranties, and other
1061 items provided by the developer under s. 718.301(4).
1062 2. A copy photocopy of the recorded declaration of
1063 condominium of each condominium operated by the association and
1064 each amendment to each declaration.
1065 3. A copy photocopy of the recorded bylaws of the
1066 association and each amendment to the bylaws.
1067 4. A certified copy of the articles of incorporation of the
1068 association, or other documents creating the association, and
1069 each amendment thereto.
1070 5. A copy of the current rules of the association.
1071 6. A book or books or electronic records that contain the
1072 minutes of all meetings of the association, the board of
1073 administration, any committee, and the unit owners, and a
1074 recording of all such meetings that are conducted by video
1075 conference. If there are approved minutes for a meeting held by
1076 video conference, recordings of meetings that are conducted by
1077 video conference must be maintained for at least 1 year after
1078 the date the video recording is posted as required under
1079 paragraph (g).
1080 7. A current roster of all unit owners and their mailing
1081 addresses, unit identifications, voting certifications, and, if
1082 known, telephone numbers. The association shall also maintain
1083 the e-mail addresses and facsimile numbers of unit owners
1084 consenting to receive notice by electronic transmission. In
1085 accordance with sub-subparagraph (c)5.e., the e-mail addresses
1086 and facsimile numbers are only accessible to unit owners if
1087 consent to receive notice by electronic transmission is
1088 provided, or if the unit owner has expressly indicated that such
1089 personal information can be shared with other unit owners and
1090 the unit owner has not provided the association with a request
1091 to opt out of such dissemination with other unit owners. An
1092 association must ensure that the e-mail addresses and facsimile
1093 numbers are only used for the business operation of the
1094 association and may not be sold or shared with outside third
1095 parties. If such personal information is included in documents
1096 that are released to third parties, other than unit owners, the
1097 association must redact such personal information before the
1098 document is disseminated. However, the association is not liable
1099 for an inadvertent disclosure of the e-mail address or facsimile
1100 number for receiving electronic transmission of notices unless
1101 such disclosure was made with a knowing or intentional disregard
1102 of the protected nature of such information.
1103 8. All current insurance policies of the association and
1104 condominiums operated by the association.
1105 9. A current copy of any management agreement, lease, or
1106 other contract to which the association is a party or under
1107 which the association or the unit owners have an obligation or
1108 responsibility.
1109 10. Bills of sale or transfer for all property owned by the
1110 association.
1111 11. Accounting records for the association and separate
1112 accounting records for each condominium that the association
1113 operates. Any person who knowingly or intentionally defaces or
1114 destroys such records, or who knowingly or intentionally fails
1115 to create or maintain such records, with the intent of causing
1116 harm to the association or one or more of its members, is
1117 personally subject to a civil penalty pursuant to s.
1118 718.501(1)(e). The accounting records must include, but are not
1119 limited to:
1120 a. Accurate, itemized, and detailed records of all receipts
1121 and expenditures, including all bank statements and ledgers.
1122 b. All invoices, transaction receipts, or deposit slips
1123 that substantiate any receipt or expenditure of funds by the
1124 association.
1125 c. A current account and a monthly, bimonthly, or quarterly
1126 statement of the account for each unit designating the name of
1127 the unit owner, the due date and amount of each assessment, the
1128 amount paid on the account, and the balance due.
1129 d. All audits, reviews, accounting statements, structural
1130 integrity reserve studies, and financial reports of the
1131 association or condominium. Structural integrity reserve studies
1132 must be maintained for at least 15 years after the study is
1133 completed.
1134 e. All contracts for work to be performed. Bids for work to
1135 be performed are also considered official records and must be
1136 maintained by the association for at least 1 year after receipt
1137 of the bid.
1138 12. Ballots, sign-in sheets, voting proxies, and all other
1139 papers and electronic records relating to voting by unit owners,
1140 which must be maintained for 1 year from the date of the
1141 election, vote, or meeting to which the document relates,
1142 notwithstanding paragraph (b).
1143 13. All rental records if the association is acting as
1144 agent for the rental of condominium units.
1145 14. A copy of the current question and answer sheet as
1146 described in s. 718.504.
1147 15. A copy of the inspection reports described in ss.
1148 553.899 and 718.301(4)(p) and any other inspection report
1149 relating to a structural or life safety inspection of
1150 condominium property. Such record must be maintained by the
1151 association for 15 years after receipt of the report.
1152 16. Bids for materials, equipment, or services.
1153 17. All affirmative acknowledgments made pursuant to s.
1154 718.121(4)(c).
1155 18. A copy of all building permits.
1156 19. A copy of all satisfactorily completed board member
1157 educational certificates.
1158 20. A copy of all affidavits required by this chapter.
1159 21. A copy of all investment policy statements adopted
1160 pursuant to paragraph (16)(c), and all financial statements
1161 related to the association’s investment of funds under
1162 subsection (16).
1163 22.20. All other written records of the association not
1164 specifically included in the foregoing which are related to the
1165 operation of the association.
1166 (c)1.a. The official records of the association are open to
1167 inspection by any association member and any person authorized
1168 by an association member as a representative of such member at
1169 all reasonable times. The right to inspect the records includes
1170 the right to make or obtain copies, at the reasonable expense,
1171 if any, of the member and of the person authorized by the
1172 association member as a representative of such member. A renter
1173 of a unit has a right to inspect and copy only the declaration
1174 of condominium, the association’s bylaws and rules, and the
1175 inspection reports described in ss. 553.899 and 718.301(4)(p).
1176 The association may adopt reasonable rules regarding the
1177 frequency, time, location, notice, and manner of record
1178 inspections and copying but may not require a member to
1179 demonstrate any purpose or state any reason for the inspection.
1180 The failure of an association to provide the records within 10
1181 working days after receipt of a written request creates a
1182 rebuttable presumption that the association willfully failed to
1183 comply with this paragraph. A unit owner who is denied access to
1184 official records is entitled to the actual damages or minimum
1185 damages for the association’s willful failure to comply. Minimum
1186 damages are $50 per calendar day for up to 10 days, beginning on
1187 the 11th working day after receipt of the written request. The
1188 failure to permit inspection entitles any person prevailing in
1189 an enforcement action to recover reasonable attorney fees from
1190 the person in control of the records who, directly or
1191 indirectly, knowingly denied access to the records. If the
1192 requested records are posted on an association’s website, or are
1193 available for download through an application on a mobile
1194 device, the association may fulfill its obligations under this
1195 paragraph by directing to the website or the application all
1196 persons authorized to request access.
1197 b. In response to a written request to inspect records, the
1198 association must simultaneously provide to the requestor a
1199 checklist of all records made available for inspection and
1200 copying. The checklist must also identify any of the
1201 association’s official records that were not made available to
1202 the requestor. An association must maintain a checklist provided
1203 under this sub-subparagraph for 7 years. An association
1204 delivering a checklist pursuant to this sub-subparagraph creates
1205 a rebuttable presumption that the association has complied with
1206 this paragraph.
1207 2. A director or member of the board or association or a
1208 community association manager who willfully and knowingly or
1209 intentionally knowingly, willfully, and repeatedly violates
1210 subparagraph 1. commits a misdemeanor of the second degree,
1211 punishable as provided in s. 775.082 or s. 775.083, and must be
1212 removed from office and a vacancy declared. For purposes of this
1213 subparagraph, the term “repeatedly” means two or more violations
1214 within a 12-month period.
1215 3. Any person who willfully and knowingly or intentionally
1216 defaces or destroys accounting records that are required by this
1217 chapter to be maintained during the period for which such
1218 records are required to be maintained, or who willfully and
1219 knowingly or intentionally fails to create or maintain
1220 accounting records that are required to be created or
1221 maintained, with the intent of causing harm to the association
1222 or one or more of its members, commits a misdemeanor of the
1223 first degree, punishable as provided in s. 775.082 or s.
1224 775.083; is personally subject to a civil penalty pursuant to s.
1225 718.501(1)(d); and must be removed from office and a vacancy
1226 declared.
1227 4. A person who willfully and knowingly or intentionally
1228 refuses to release or otherwise produce association records with
1229 the intent to avoid or escape detection, arrest, trial, or
1230 punishment for the commission of a crime, or to assist another
1231 person with such avoidance or escape, commits a felony of the
1232 third degree, punishable as provided in s. 775.082, s. 775.083,
1233 or s. 775.084, and must be removed from office and a vacancy
1234 declared.
1235 5. The association shall maintain an adequate number of
1236 copies of the declaration, articles of incorporation, bylaws,
1237 and rules, and all amendments to each of the foregoing, as well
1238 as the question and answer sheet as described in s. 718.504 and
1239 the most recent annual financial statement and annual budget
1240 year-end financial information required under this section, on
1241 the condominium property to ensure their availability to unit
1242 owners and prospective purchasers, and may charge its actual
1243 costs for preparing and furnishing these documents to those
1244 requesting the documents. An association shall allow a member or
1245 his or her authorized representative to use a portable device,
1246 including a smartphone, tablet, portable scanner, or any other
1247 technology capable of scanning or taking photographs, to make an
1248 electronic copy of the official records in lieu of the
1249 association’s providing the member or his or her authorized
1250 representative with a copy of such records. The association may
1251 not charge a member or his or her authorized representative for
1252 the use of a portable device. Notwithstanding this paragraph,
1253 the following records are not accessible to unit owners:
1254 a. Any record protected by the lawyer-client privilege as
1255 described in s. 90.502 and any record protected by the work
1256 product privilege, including a record prepared by an association
1257 attorney or prepared at the attorney’s express direction, which
1258 reflects a mental impression, conclusion, litigation strategy,
1259 or legal theory of the attorney or the association, and which
1260 was prepared exclusively for civil or criminal litigation or for
1261 adversarial administrative proceedings, or which was prepared in
1262 anticipation of such litigation or proceedings until the
1263 conclusion of the litigation or proceedings.
1264 b. Information obtained by an association in connection
1265 with the approval of the lease, sale, or other transfer of a
1266 unit.
1267 c. Personnel records of association or management company
1268 employees, including, but not limited to, disciplinary, payroll,
1269 health, and insurance records. For purposes of this sub
1270 subparagraph, the term “personnel records” does not include
1271 written employment agreements with an association employee or
1272 management company, or budgetary or financial records that
1273 indicate the compensation paid to an association employee.
1274 d. Medical records of unit owners.
1275 e. Social security numbers, driver license numbers, credit
1276 card numbers, e-mail addresses, telephone numbers, facsimile
1277 numbers, emergency contact information, addresses of a unit
1278 owner other than as provided to fulfill the association’s notice
1279 requirements, and other personal identifying information of any
1280 person, excluding the person’s name, unit designation, mailing
1281 address, property address, and any address, e-mail address, or
1282 facsimile number provided to the association to fulfill the
1283 association’s notice requirements. Notwithstanding the
1284 restrictions in this sub-subparagraph, an association may print
1285 and distribute to unit owners a directory containing the name,
1286 unit address, and all telephone numbers of each unit owner.
1287 However, an owner may exclude his or her telephone numbers from
1288 the directory by so requesting in writing to the association. An
1289 owner may consent in writing to the disclosure of other contact
1290 information described in this sub-subparagraph. The association
1291 is not liable for the inadvertent disclosure of information that
1292 is protected under this sub-subparagraph if the information is
1293 included in an official record of the association and is
1294 voluntarily provided by an owner and not requested by the
1295 association.
1296 f. Electronic security measures that are used by the
1297 association to safeguard data, including passwords.
1298 g. The software and operating system used by the
1299 association which allow the manipulation of data, even if the
1300 owner owns a copy of the same software used by the association.
1301 The data is part of the official records of the association.
1302 h. All affirmative acknowledgments made pursuant to s.
1303 718.121(4)(c).
1304 (g)1. By January 1, 2019, an association managing a
1305 condominium with 150 or more units which does not contain
1306 timeshare units shall post digital copies of the documents
1307 specified in subparagraph 2. on its website or make such
1308 documents available through an application that can be
1309 downloaded on a mobile device. Unless a shorter period is
1310 otherwise required, a document must be made available on the
1311 association’s website or made available for download through an
1312 application on a mobile device within 30 days after the
1313 association receives or creates an official record specified in
1314 subparagraph 2.
1315 a. The association’s website or application must be:
1316 (I) An independent website, application, or web portal
1317 wholly owned and operated by the association; or
1318 (II) A website, application, or web portal operated by a
1319 third-party provider with whom the association owns, leases,
1320 rents, or otherwise obtains the right to operate a web page,
1321 subpage, web portal, collection of subpages or web portals, or
1322 an application which is dedicated to the association’s
1323 activities and on which required notices, records, and documents
1324 may be posted or made available by the association.
1325 b. The association’s website or application must be
1326 accessible through the Internet and must contain a subpage, web
1327 portal, or other protected electronic location that is
1328 inaccessible to the general public and accessible only to unit
1329 owners and employees of the association.
1330 c. Upon a unit owner’s written request, the association
1331 must provide the unit owner with a username and password and
1332 access to the protected sections of the association’s website or
1333 application which contain any notices, records, or documents
1334 that must be electronically provided.
1335 2. A current copy of the following documents must be posted
1336 in digital format on the association’s website or application:
1337 a. The recorded declaration of condominium of each
1338 condominium operated by the association and each amendment to
1339 each declaration.
1340 b. The recorded bylaws of the association and each
1341 amendment to the bylaws.
1342 c. The articles of incorporation of the association, or
1343 other documents creating the association, and each amendment to
1344 the articles of incorporation or other documents. The copy
1345 posted pursuant to this sub-subparagraph must be a copy of the
1346 articles of incorporation filed with the Department of State.
1347 d. The rules of the association.
1348 e. The approved minutes of all board of administration
1349 meetings over the preceding 12 months.
1350 f. The video recording or a hyperlink to the video
1351 recording for all meetings of the association, the board of
1352 administration, any committee, and the unit owners which are
1353 conducted by video conference over the preceding 12 months.
1354 g.e. A list of all executory contracts or documents to
1355 which the association is a party or under which the association
1356 or the unit owners have an obligation or responsibility and,
1357 after bidding for the related materials, equipment, or services
1358 has closed, a list of bids received by the association within
1359 the past year. Summaries of bids for materials, equipment, or
1360 services which exceed $500 must be maintained on the website or
1361 application for 1 year. In lieu of summaries, complete copies of
1362 the bids may be posted.
1363 h.f. The annual budget required by s. 718.112(2)(f) and any
1364 proposed budget to be considered at the annual meeting.
1365 i.g. The financial report required by subsection (13) and
1366 any monthly income or expense statement to be considered at a
1367 meeting.
1368 j.h. The certification of each director required by s.
1369 718.112(2)(d)4.b.
1370 k.i. All contracts or transactions between the association
1371 and any director, officer, corporation, firm, or association
1372 that is not an affiliated condominium association or any other
1373 entity in which an association director is also a director or
1374 officer and financially interested.
1375 l.j. Any contract or document regarding a conflict of
1376 interest or possible conflict of interest as provided in ss.
1377 468.4335, 468.436(2)(b)6., and 718.3027(3).
1378 m.k. The notice of any unit owner meeting and the agenda
1379 for the meeting, as required by s. 718.112(2)(d)3., no later
1380 than 14 days before the meeting. The notice must be posted in
1381 plain view on the front page of the website or application, or
1382 on a separate subpage of the website or application labeled
1383 “Notices” which is conspicuously visible and linked from the
1384 front page. The association must also post on its website or
1385 application any document to be considered and voted on by the
1386 owners during the meeting or any document listed on the agenda
1387 at least 7 days before the meeting at which the document or the
1388 information within the document will be considered.
1389 n.l. Notice of any board meeting, the agenda, and any other
1390 document required for the meeting as required by s.
1391 718.112(2)(c), which must be posted no later than the date
1392 required for notice under s. 718.112(2)(c).
1393 o.m. The inspection reports described in ss. 553.899 and
1394 718.301(4)(p) and any other inspection report relating to a
1395 structural or life safety inspection of condominium property.
1396 p.n. The association’s most recent structural integrity
1397 reserve study, if applicable.
1398 q.o. Copies of all building permits issued for ongoing or
1399 planned construction.
1400 r. A copy of all affidavits required by this chapter.
1401 s. A copy of all investment policy statements adopted
1402 pursuant to paragraph (16)(c), and all financial statements
1403 related to the association’s investment of funds under
1404 subsection (16).
1405 3. The association shall ensure that the information and
1406 records described in paragraph (c), which are not allowed to be
1407 accessible to unit owners, are not posted on the association’s
1408 website or application. If protected information or information
1409 restricted from being accessible to unit owners is included in
1410 documents that are required to be posted on the association’s
1411 website or application, the association shall ensure the
1412 information is redacted before posting the documents.
1413 Notwithstanding the foregoing, the association or its agent is
1414 not liable for disclosing information that is protected or
1415 restricted under this paragraph unless such disclosure was made
1416 with a knowing or intentional disregard of the protected or
1417 restricted nature of such information.
1418 4. The failure of the association to post information
1419 required under subparagraph 2. is not in and of itself
1420 sufficient to invalidate any action or decision of the
1421 association’s board or its committees.
1422 (13) FINANCIAL REPORTING.—Within 90 days after the end of
1423 the fiscal year, or annually on a date provided in the bylaws,
1424 the association shall prepare and complete, or contract for the
1425 preparation and completion of, a financial report for the
1426 preceding fiscal year. Within 21 days after the final financial
1427 report is completed by the association or received from the
1428 third party, but not later than 180 120 days after the end of
1429 the fiscal year or other date as provided in the bylaws, the
1430 association shall deliver to each unit owner by United States
1431 mail or personal delivery at the mailing address, property
1432 address, e-mail address, or facsimile number provided to fulfill
1433 the association’s notice requirements, a copy of the most recent
1434 financial report, or and a notice that a copy of the most recent
1435 financial report will be, as requested by the owner, mailed, or
1436 hand delivered, or electronically delivered via the Internet to
1437 the unit owner, without charge, within 5 business days after
1438 receipt of a written request from the unit owner. Evidence of
1439 compliance with this delivery requirement must be made by an
1440 affidavit executed by an officer or director of the association.
1441 The division shall adopt rules setting forth uniform accounting
1442 principles and standards to be used by all associations and
1443 addressing the financial reporting requirements for
1444 multicondominium associations. The rules must include, but not
1445 be limited to, standards for presenting a summary of association
1446 reserves, including a good faith estimate disclosing the annual
1447 amount of reserve funds that would be necessary for the
1448 association to fully fund reserves for each reserve item based
1449 on the straight-line accounting method. This disclosure is not
1450 applicable to reserves funded via the pooling method. In
1451 adopting such rules, the division shall consider the number of
1452 members and annual revenues of an association. Financial reports
1453 shall be prepared as follows:
1454 (a) An association that meets the criteria of this
1455 paragraph shall prepare a complete set of financial statements
1456 in accordance with generally accepted accounting principles. The
1457 financial statements must be based upon the association’s total
1458 annual revenues, as follows:
1459 1. An association with total annual revenues of $150,000 or
1460 more, but less than $300,000, shall prepare compiled financial
1461 statements.
1462 2. An association with total annual revenues of at least
1463 $300,000, but less than $500,000, shall prepare reviewed
1464 financial statements.
1465 3. An association with total annual revenues of $500,000 or
1466 more shall prepare audited financial statements.
1467 (b)1. An association with total annual revenues of less
1468 than $150,000 shall prepare a report of cash receipts and
1469 expenditures.
1470 2. A report of cash receipts and disbursements must
1471 disclose the amount of receipts by accounts and receipt
1472 classifications and the amount of expenses by accounts and
1473 expense classifications, including, but not limited to, the
1474 following, as applicable: costs for security, professional and
1475 management fees and expenses, taxes, costs for recreation
1476 facilities, expenses for refuse collection and utility services,
1477 expenses for lawn care, costs for building maintenance and
1478 repair, insurance costs, administration and salary expenses, and
1479 reserves accumulated and expended for capital expenditures,
1480 deferred maintenance, and any other category for which the
1481 association maintains reserves.
1482 (c) An association may prepare, without a meeting of or
1483 approval by the unit owners:
1484 1. Compiled, reviewed, or audited financial statements, if
1485 the association is required to prepare a report of cash receipts
1486 and expenditures;
1487 2. Reviewed or audited financial statements, if the
1488 association is required to prepare compiled financial
1489 statements; or
1490 3. Audited financial statements if the association is
1491 required to prepare reviewed financial statements.
1492 (d) If approved by a majority vote of all the voting
1493 interests present at a properly called meeting of the
1494 association, an association may prepare:
1495 1. A report of cash receipts and expenditures in lieu of a
1496 compiled, reviewed, or audited financial statement;
1497 2. A report of cash receipts and expenditures or a compiled
1498 financial statement in lieu of a reviewed or audited financial
1499 statement; or
1500 3. A report of cash receipts and expenditures, a compiled
1501 financial statement, or a reviewed financial statement in lieu
1502 of an audited financial statement.
1503
1504 Such meeting and approval must occur before the end of the
1505 fiscal year and is effective only for the fiscal year in which
1506 the vote is taken. An association may not prepare a financial
1507 report pursuant to this paragraph for consecutive fiscal years.
1508 If the developer has not turned over control of the association,
1509 all unit owners, including the developer, may vote on issues
1510 related to the preparation of the association’s financial
1511 reports, from the date of incorporation of the association
1512 through the end of the second fiscal year after the fiscal year
1513 in which the certificate of a surveyor and mapper is recorded
1514 pursuant to s. 718.104(4)(e) or an instrument that transfers
1515 title to a unit in the condominium which is not accompanied by a
1516 recorded assignment of developer rights in favor of the grantee
1517 of such unit is recorded, whichever occurs first. Thereafter,
1518 all unit owners except the developer may vote on such issues
1519 until control is turned over to the association by the
1520 developer. Any audit or review prepared under this section shall
1521 be paid for by the developer if done before turnover of control
1522 of the association.
1523 (e) A unit owner may provide written notice to the division
1524 of the association’s failure to mail or hand deliver him or her
1525 a copy of the most recent financial report within 5 business
1526 days after he or she submitted a written request to the
1527 association for a copy of such report. If the division
1528 determines that the association failed to mail or hand deliver a
1529 copy of the most recent financial report to the unit owner, the
1530 division shall provide written notice to the association that
1531 the association must mail or hand deliver a copy of the most
1532 recent financial report to the unit owner and the division
1533 within 5 business days after it receives such notice from the
1534 division. An association that fails to comply with the
1535 division’s request may not waive the financial reporting
1536 requirement provided in paragraph (d) for the fiscal year in
1537 which the unit owner’s request was made and the following fiscal
1538 year. A financial report received by the division pursuant to
1539 this paragraph shall be maintained, and the division shall
1540 provide a copy of such report to an association member upon his
1541 or her request.
1542 (16) INVESTMENT OF ASSOCIATION FUNDS.—
1543 (a) A board shall, in fulfilling its duty to manage
1544 operating and reserve funds of its association, use best efforts
1545 to make prudent investment decisions that carefully consider
1546 risk and return in an effort to maximize returns on invested
1547 funds.
1548 (b) An association, including a multicondominium
1549 association, may invest reserve funds in one or any combination
1550 of certificates of deposit or in depository accounts at a
1551 community bank, savings bank, commercial bank, savings and loan
1552 association, or credit union. Upon a majority vote of the voting
1553 interests, an association may invest reserve funds in
1554 investments other than certificates of deposit or depository
1555 accounts at a community bank, savings bank, commercial bank,
1556 savings and loan association, or credit union, provided the
1557 association complies with paragraphs (c)-(g). Notwithstanding
1558 any declaration, only funds identified as reserve funds may be
1559 invested pursuant to paragraphs (c)-(g). Paragraphs (c)-(g) do
1560 not apply to funds invested in one or any combination of
1561 certificates of deposit or depository accounts at a community
1562 bank, savings bank, commercial bank, savings and loan
1563 association, or credit union.
1564 (c) The board shall create an investment committee composed
1565 of at least two board members and two-unit unit owners who are
1566 not board members. The board shall also adopt rules for invested
1567 funds, including, but not limited to, rules requiring periodic
1568 reviews of any investment manager’s performance, the development
1569 of an investment policy statement, and that all meetings of the
1570 investment committee be recorded and made part of the official
1571 records of the association. The investment policy statement
1572 developed pursuant to this paragraph must, at a minimum, address
1573 risk, liquidity, and benchmark measurements; authorized classes
1574 of investments; authorized investment mixes; limitations on
1575 authority relating to investment transactions; requirements for
1576 projected reserve expenditures within, at minimum, the next 24
1577 months to be held in cash or cash equivalents; projected
1578 expenditures relating to a mandatory structural inspection
1579 performed pursuant to s. 553.899; and protocols for proxy
1580 response.
1581 (d) The investment committee shall recommend investment
1582 advisers to the board, and the board shall select one of the
1583 recommended investment advisers to provide services to the
1584 association. Such investment advisers must be registered or have
1585 notice filed under s. 517.12. The selected investment adviser
1586 and any representative or association of the investment adviser
1587 may not be related by affinity or consanguinity to, or under
1588 common ownership with, any board member, community management
1589 company, reserve study provider, or co-owner of a unit with a
1590 board member or investment committee member. The investment
1591 adviser shall comply with the prudent investor rule in s.
1592 518.11. The investment adviser shall act as a fiduciary to the
1593 association in compliance with the standards set forth in the
1594 Employee Retirement Income Security Act of 1974 at 29 U.S.C. s.
1595 1104(a)(1)(A)-(C). In case of conflict with other laws
1596 authorizing investments, the investment and fiduciary standards
1597 set forth in this subsection must prevail. If at any time the
1598 investment committee determines that an investment adviser does
1599 not meet the requirements of this section, the investment
1600 committee must recommend a replacement investment adviser to the
1601 board.
1602 (e) At least once each calendar year, or sooner if a
1603 substantial financial obligation of the association becomes
1604 known to the board, the association must provide the investment
1605 adviser with the association’s investment policy statement, the
1606 most recent reserve study report, the association’s structural
1607 integrity report, and the financial reports prepared pursuant to
1608 subsection (13). If there is no recent reserve study report, the
1609 association must provide the investment adviser with a good
1610 faith estimate disclosing the annual amount of reserve funds
1611 necessary for the association to fund reserves fully for the
1612 life of each reserve component and each component’s
1613 redundancies. The investment adviser shall annually review these
1614 documents and provide the association with a portfolio
1615 allocation model that is suitably structured and prudently
1616 designed to match projected annual reserve fund requirements and
1617 liability, assets, and liquidity requirements. The investment
1618 adviser shall prepare a funding projection for each reserve
1619 component, including any of the component’s redundancies. The
1620 association must have available at all times a minimum of 24
1621 months of projected reserves in cash or cash equivalents.
1622 (f) Portfolios managed by the investment adviser may
1623 contain any type of investment necessary to meet the objectives
1624 in the investment policy statement; however, portfolios may not
1625 contain stocks, securities, or other obligations that the State
1626 Board of Administration is prohibited from investing in under s.
1627 215.471, s. 215.4725, or s. 215.473 or that state agencies are
1628 prohibited from investing in under s. 215.472, as determined by
1629 the investment adviser. Any funds invested by the investment
1630 adviser must be held in third-party custodial accounts that are
1631 subject to insurance coverage by the Securities Investor
1632 Protection Corporation in an amount equal to or greater than the
1633 invested amount. The investment adviser may withdraw investment
1634 fees, expenses, and commissions from invested funds.
1635 (g) The investment adviser shall:
1636 1. Annually provide the association with a written
1637 certification of compliance with this section and a list of
1638 stocks, securities, and other obligations that are prohibited
1639 from being in association portfolios under paragraph (f); and
1640 2. Submit monthly, quarterly, and annual reports to the
1641 association which are prepared in accordance with established
1642 financial industry standards and in accordance with chapter 517.
1643 (h) Any principal, earnings, or interest managed under this
1644 subsection must be available at no cost or charge to the
1645 association within 15 business days after delivery of the
1646 association’s written or electronic request.
1647 (i) Unallocated income earned on reserve fund investments
1648 must be spent only on capital expenditures, planned maintenance,
1649 structural repairs, or other items for which the reserve
1650 accounts have been established. Any surplus of funds that
1651 exceeds the amount required to maintain reasonably funded
1652 reserves must be managed pursuant to s. 718.115.
1653 Section 7. Paragraphs (b) through (g) of subsection (2) of
1654 section 718.112, Florida Statutes, are amended to read:
1655 718.112 Bylaws.—
1656 (2) REQUIRED PROVISIONS.—The bylaws shall provide for the
1657 following and, if they do not do so, shall be deemed to include
1658 the following:
1659 (b) Quorum; voting requirements; proxies.—
1660 1. Unless a lower number is provided in the bylaws, the
1661 percentage of voting interests required to constitute a quorum
1662 at a meeting of the members is a majority of the voting
1663 interests. Unless otherwise provided in this chapter or in the
1664 declaration, articles of incorporation, or bylaws, and except as
1665 provided in subparagraph (d)4., decisions shall be made by a
1666 majority of the voting interests represented at a meeting at
1667 which a quorum is present.
1668 2. Except as specifically otherwise provided herein, unit
1669 owners in a residential condominium may not vote by general
1670 proxy, but may vote by limited proxies substantially conforming
1671 to a limited proxy form adopted by the division. A voting
1672 interest or consent right allocated to a unit owned by the
1673 association may not be exercised or considered for any purpose,
1674 whether for a quorum, an election, or otherwise. Limited proxies
1675 and general proxies may be used to establish a quorum. Limited
1676 proxies shall be used for votes taken to waive or reduce
1677 reserves in accordance with subparagraph (f)2.; for votes taken
1678 to waive the financial reporting requirements of s. 718.111(13);
1679 for votes taken to amend the declaration pursuant to s. 718.110;
1680 for votes taken to amend the articles of incorporation or bylaws
1681 pursuant to this section; and for any other matter for which
1682 this chapter requires or permits a vote of the unit owners.
1683 Except as provided in paragraph (d), a proxy, limited or
1684 general, may not be used in the election of board members in a
1685 residential condominium. General proxies may be used for other
1686 matters for which limited proxies are not required, and may be
1687 used in voting for nonsubstantive changes to items for which a
1688 limited proxy is required and given. Notwithstanding this
1689 subparagraph, unit owners may vote in person at unit owner
1690 meetings. This subparagraph does not limit the use of general
1691 proxies or require the use of limited proxies for any agenda
1692 item or election at any meeting of a timeshare condominium
1693 association or a nonresidential condominium association.
1694 3. A proxy given is effective only for the specific meeting
1695 for which originally given and any lawfully adjourned meetings
1696 thereof. A proxy is not valid longer than 90 days after the date
1697 of the first meeting for which it was given. Each proxy is
1698 revocable at any time at the pleasure of the unit owner
1699 executing it.
1700 4. A member of the board of administration or a committee
1701 may submit in writing his or her agreement or disagreement with
1702 any action taken at a meeting that the member did not attend.
1703 This agreement or disagreement may not be used as a vote for or
1704 against the action taken or to create a quorum.
1705 5. A board meeting may be conducted in person or by video
1706 conference. A board or committee member’s participation in a
1707 meeting via telephone, real-time videoconferencing, or similar
1708 real-time electronic or video communication counts toward a
1709 quorum, and such member may vote as if physically present. A
1710 speaker must be used so that the conversation of such members
1711 may be heard by the board or committee members attending in
1712 person as well as by any unit owners present at a meeting. The
1713 division shall adopt rules pursuant to ss. 120.536 and 120.54
1714 governing the requirements for meetings.
1715 (c) Board of administration meetings.—In a residential
1716 condominium association of more than 10 units, the board of
1717 administration shall meet at least once each quarter. At least
1718 four times each year, the meeting agenda must include an
1719 opportunity for members to ask questions of the board. Meetings
1720 of the board of administration at which a quorum of the members
1721 is present are open to all unit owners. Members of the board of
1722 administration may use e-mail as a means of communication but
1723 may not cast a vote on an association matter via e-mail. A unit
1724 owner may tape record or videotape the meetings. The right to
1725 attend such meetings includes the right to speak at such
1726 meetings with reference to all designated agenda items and the
1727 right to ask questions relating to reports on the status of
1728 construction or repair projects, the status of revenues and
1729 expenditures during the current fiscal year, and other issues
1730 affecting the condominium. The division shall adopt reasonable
1731 rules governing the tape recording and videotaping of the
1732 meeting. The association may adopt written reasonable rules
1733 governing the frequency, duration, and manner of unit owner
1734 statements.
1735 1. Adequate notice of all board meetings, which must
1736 specifically identify all agenda items, must be posted
1737 conspicuously on the condominium property at least 48 continuous
1738 hours before the meeting except in an emergency. If the board
1739 meeting is to be conducted via video conference, the notice must
1740 state that such meeting will be via video conference and must
1741 include a hyperlink and a conference telephone number for unit
1742 owners to attend the meeting via video conference, as well as
1743 the address of the physical location where the unit owners can
1744 attend the meeting in person. If the meeting is conducted via
1745 video conference, it must be recorded and such recording must be
1746 maintained as an official record of the association. If 20
1747 percent of the voting interests petition the board to address an
1748 item of business, the board, within 60 days after receipt of the
1749 petition, shall place the item on the agenda at its next regular
1750 board meeting or at a special meeting called for that purpose.
1751 An item not included on the notice may be taken up on an
1752 emergency basis by a vote of at least a majority plus one of the
1753 board members. Such emergency action must be noticed and
1754 ratified at the next regular board meeting. Written notice of a
1755 meeting at which a nonemergency special assessment or an
1756 amendment to rules regarding unit use will be considered must be
1757 mailed, delivered, or electronically transmitted to the unit
1758 owners and posted conspicuously on the condominium property at
1759 least 14 days before the meeting. Evidence of compliance with
1760 this 14-day notice requirement must be made by an affidavit
1761 executed by the person providing the notice and filed with the
1762 official records of the association.
1763 2. Upon notice to the unit owners, the board shall, by duly
1764 adopted rule, designate a specific location on the condominium
1765 property at which all notices of board meetings must be posted.
1766 If there is no condominium property at which notices can be
1767 posted, Notices shall be mailed, delivered, or electronically
1768 transmitted to each unit owner who has consented to receive
1769 electronic notifications at least 14 days before the meeting. In
1770 lieu of or in addition to the physical posting of the notice on
1771 the condominium property and mailing, delivering, or
1772 electronically transmitting the notice, the association may, by
1773 reasonable rule, adopt a procedure for conspicuously posting and
1774 repeatedly broadcasting the notice and the agenda on a closed
1775 circuit cable television system serving the condominium
1776 association. However, if broadcast notice is used in lieu of a
1777 notice physically posted on condominium property, the notice and
1778 agenda must be broadcast at least four times every broadcast
1779 hour of each day that a posted notice is otherwise required
1780 under this section. If broadcast notice is provided, the notice
1781 and agenda must be broadcast in a manner and for a sufficient
1782 continuous length of time so as to allow an average reader to
1783 observe the notice and read and comprehend the entire content of
1784 the notice and the agenda. In addition to any of the authorized
1785 means of providing notice of a meeting of the board, the
1786 association may, by rule, adopt a procedure for conspicuously
1787 posting the meeting notice and the agenda on a website serving
1788 the condominium association for at least the minimum period of
1789 time for which a notice of a meeting is also required to be
1790 physically posted on the condominium property. Any rule adopted
1791 shall, in addition to other matters, include a requirement that
1792 the association send an electronic notice in the same manner as
1793 a notice for a meeting of the members, which must include a
1794 hyperlink to the website at which the notice is posted, to unit
1795 owners whose e-mail addresses are included in the association’s
1796 official records.
1797 3. Notice of any meeting in which regular or special
1798 assessments against unit owners are to be considered must
1799 specifically state that assessments will be considered and
1800 provide the estimated cost and description of the purposes for
1801 such assessments. If an agenda item relates to the approval of a
1802 contract for goods or services, a copy of the contract must be
1803 provided with the notice and be made available for inspection
1804 and copying upon a written request from a unit owner or made
1805 available on the association’s website or through an application
1806 that can be downloaded on a mobile device.
1807 4. Meetings of a committee to take final action on behalf
1808 of the board or make recommendations to the board regarding the
1809 association budget are subject to this paragraph. Meetings of a
1810 committee that does not take final action on behalf of the board
1811 or make recommendations to the board regarding the association
1812 budget are subject to this section, unless those meetings are
1813 exempted from this section by the bylaws of the association.
1814 5. Notwithstanding any other law, the requirement that
1815 board meetings and committee meetings be open to the unit owners
1816 does not apply to:
1817 a. Meetings between the board or a committee and the
1818 association’s attorney, with respect to proposed or pending
1819 litigation, if the meeting is held for the purpose of seeking or
1820 rendering legal advice; or
1821 b. Board meetings held for the purpose of discussing
1822 personnel matters.
1823 (d) Unit owner meetings.—
1824 1. An annual meeting of the unit owners must be held at the
1825 location provided in the association bylaws and, if the bylaws
1826 are silent as to the location, the meeting must be held within
1827 15 miles 45 miles of the condominium property or within the same
1828 county as the condominium property. However, such distance
1829 requirement does not apply to an association governing a
1830 timeshare condominium. If a unit owner meeting is conducted via
1831 video conference, a unit owner may vote electronically in the
1832 manner provided in s. 718.128.
1833 2. Unit owner meetings, including the annual meeting of the
1834 unit owners, may be conducted in person or via video conference.
1835 If the annual meeting of the unit owners is conducted via video
1836 conference, a quorum of the members of the board of
1837 administration must be physically present at the physical
1838 location where unit owners can attend the meeting. The location
1839 must be provided in the association bylaws and, if the bylaws
1840 are silent as to the location, the meeting must be held within
1841 15 miles of the condominium property or within the same county
1842 as the condominium property. If the unit owner meeting is
1843 conducted via video conference, the video conference must be
1844 recorded and such recording must be maintained as an official
1845 record of the association. The division shall adopt rules
1846 pursuant to ss. 120.536 and 120.54 governing the requirements
1847 for meetings.
1848 3.2. Unless the bylaws provide otherwise, a vacancy on the
1849 board caused by the expiration of a director’s term must be
1850 filled by electing a new board member, and the election must be
1851 by secret ballot. An election is not required if the number of
1852 vacancies equals or exceeds the number of candidates. For
1853 purposes of this paragraph, the term “candidate” means an
1854 eligible person who has timely submitted the written notice, as
1855 described in sub-subparagraph 4.a., of his or her intention to
1856 become a candidate. Except in a timeshare or nonresidential
1857 condominium, or if the staggered term of a board member does not
1858 expire until a later annual meeting, or if all members’ terms
1859 would otherwise expire but there are no candidates, the terms of
1860 all board members expire at the annual meeting, and such members
1861 may stand for reelection unless prohibited by the bylaws. Board
1862 members may serve terms longer than 1 year if permitted by the
1863 bylaws or articles of incorporation. A board member may not
1864 serve more than 8 consecutive years unless approved by an
1865 affirmative vote of unit owners representing two-thirds of all
1866 votes cast in the election or unless there are not enough
1867 eligible candidates to fill the vacancies on the board at the
1868 time of the vacancy. Only board service that occurs on or after
1869 July 1, 2018, may be used when calculating a board member’s term
1870 limit. If the number of board members whose terms expire at the
1871 annual meeting equals or exceeds the number of candidates, the
1872 candidates become members of the board effective upon the
1873 adjournment of the annual meeting. Unless the bylaws provide
1874 otherwise, any remaining vacancies shall be filled by the
1875 affirmative vote of the majority of the directors making up the
1876 newly constituted board even if the directors constitute less
1877 than a quorum or there is only one director. In a residential
1878 condominium association of more than 10 units or in a
1879 residential condominium association that does not include
1880 timeshare units or timeshare interests, co-owners of a unit may
1881 not serve as members of the board of directors at the same time
1882 unless they own more than one unit or unless there are not
1883 enough eligible candidates to fill the vacancies on the board at
1884 the time of the vacancy. A unit owner in a residential
1885 condominium desiring to be a candidate for board membership must
1886 comply with sub-subparagraph 4.a. and must be eligible to be a
1887 candidate to serve on the board of directors at the time of the
1888 deadline for submitting a notice of intent to run in order to
1889 have his or her name listed as a proper candidate on the ballot
1890 or to serve on the board. A person who has been suspended or
1891 removed by the division under this chapter, or who is delinquent
1892 in the payment of any assessment due to the association, is not
1893 eligible to be a candidate for board membership and may not be
1894 listed on the ballot. For purposes of this paragraph, a person
1895 is delinquent if a payment is not made by the due date as
1896 specifically identified in the declaration of condominium,
1897 bylaws, or articles of incorporation. If a due date is not
1898 specifically identified in the declaration of condominium,
1899 bylaws, or articles of incorporation, the due date is the first
1900 day of the assessment period. A person who has been convicted of
1901 any felony in this state or in a United States District or
1902 Territorial Court, or who has been convicted of any offense in
1903 another jurisdiction which would be considered a felony if
1904 committed in this state, is not eligible for board membership
1905 unless such felon’s civil rights have been restored for at least
1906 5 years as of the date such person seeks election to the board.
1907 The validity of an action by the board is not affected if it is
1908 later determined that a board member is ineligible for board
1909 membership due to having been convicted of a felony. This
1910 subparagraph does not limit the term of a member of the board of
1911 a nonresidential or timeshare condominium.
1912 4.3. The bylaws must provide the method of calling meetings
1913 of unit owners, including annual meetings. Written notice of an
1914 annual meeting must include an agenda; be mailed, hand
1915 delivered, or electronically transmitted to each unit owner at
1916 least 14 days before the annual meeting; and be posted in a
1917 conspicuous place on the condominium property or association
1918 property at least 14 continuous days before the annual meeting.
1919 Written notice of a meeting other than an annual meeting must
1920 include an agenda; be mailed, hand delivered, or electronically
1921 transmitted to each unit owner; and be posted in a conspicuous
1922 place on the condominium property or association property within
1923 the timeframe specified in the bylaws. If the bylaws do not
1924 specify a timeframe for written notice of a meeting other than
1925 an annual meeting, notice must be provided at least 14
1926 continuous days before the meeting. Upon notice to the unit
1927 owners, the board shall, by duly adopted rule, designate a
1928 specific location on the condominium property or association
1929 property at which all notices of unit owner meetings must be
1930 posted. This requirement does not apply if there is no
1931 condominium property for posting notices. In lieu of, or in In
1932 addition to, the physical posting of meeting notices, the
1933 association may, by reasonable rule, adopt a procedure for
1934 conspicuously posting and repeatedly broadcasting the notice and
1935 the agenda on a closed-circuit cable television system serving
1936 the condominium association. However, if broadcast notice is
1937 used in lieu of a notice posted physically on the condominium
1938 property, the notice and agenda must be broadcast at least four
1939 times every broadcast hour of each day that a posted notice is
1940 otherwise required under this section. If broadcast notice is
1941 provided, the notice and agenda must be broadcast in a manner
1942 and for a sufficient continuous length of time so as to allow an
1943 average reader to observe the notice and read and comprehend the
1944 entire content of the notice and the agenda. In addition to any
1945 of the authorized means of providing notice of a meeting of the
1946 board, the association may, by rule, adopt a procedure for
1947 conspicuously posting the meeting notice and the agenda on a
1948 website serving the condominium association for at least the
1949 minimum period of time for which a notice of a meeting is also
1950 required to be physically posted on the condominium property.
1951 Any rule adopted shall, in addition to other matters, include a
1952 requirement that the association send an electronic notice in
1953 the same manner as a notice for a meeting of the members, which
1954 must include a hyperlink to the website at which the notice is
1955 posted, to unit owners whose e-mail addresses are included in
1956 the association’s official records. Unless a unit owner waives
1957 in writing the right to receive notice of the annual meeting,
1958 such notice must be hand delivered, mailed, or electronically
1959 transmitted to each unit owner. Notice for meetings and notice
1960 for all other purposes must be mailed to each unit owner at the
1961 address last furnished to the association by the unit owner, or
1962 hand delivered to each unit owner. However, if a unit is owned
1963 by more than one person, the association must provide notice to
1964 the address that the developer identifies for that purpose and
1965 thereafter as one or more of the owners of the unit advise the
1966 association in writing, or if no address is given or the owners
1967 of the unit do not agree, to the address provided on the deed of
1968 record. An officer of the association, or the manager or other
1969 person providing notice of the association meeting, must provide
1970 an affidavit or United States Postal Service certificate of
1971 mailing, to be included in the official records of the
1972 association affirming that the notice was mailed or hand
1973 delivered in accordance with this provision.
1974 5.4. The members of the board of a residential condominium
1975 shall be elected by written ballot or voting machine. Proxies
1976 may not be used in electing the board in general elections or
1977 elections to fill vacancies caused by recall, resignation, or
1978 otherwise, unless otherwise provided in this chapter. This
1979 subparagraph does not apply to an association governing a
1980 timeshare condominium.
1981 a. At least 60 days before a scheduled election, the
1982 association shall mail, deliver, or electronically transmit, by
1983 separate association mailing or included in another association
1984 mailing, delivery, or transmission, including regularly
1985 published newsletters, to each unit owner entitled to a vote, a
1986 first notice of the date of the election. A unit owner or other
1987 eligible person desiring to be a candidate for the board must
1988 give written notice of his or her intent to be a candidate to
1989 the association at least 40 days before a scheduled election.
1990 Together with the written notice and agenda as set forth in
1991 subparagraph 3., the association shall mail, deliver, or
1992 electronically transmit a second notice of the election to all
1993 unit owners entitled to vote, together with a ballot that lists
1994 all candidates not less than 14 days or more than 34 days before
1995 the date of the election. Upon request of a candidate, an
1996 information sheet, no larger than 8 1/2 inches by 11 inches,
1997 which must be furnished by the candidate at least 35 days before
1998 the election, must be included with the mailing, delivery, or
1999 transmission of the ballot, with the costs of mailing, delivery,
2000 or electronic transmission and copying to be borne by the
2001 association. The association is not liable for the contents of
2002 the information sheets prepared by the candidates. In order to
2003 reduce costs, the association may print or duplicate the
2004 information sheets on both sides of the paper. The division
2005 shall by rule establish voting procedures consistent with this
2006 sub-subparagraph, including rules establishing procedures for
2007 giving notice by electronic transmission and rules providing for
2008 the secrecy of ballots. Elections shall be decided by a
2009 plurality of ballots cast. There is no quorum requirement;
2010 however, at least 20 percent of the eligible voters must cast a
2011 ballot in order to have a valid election. A unit owner may not
2012 authorize any other person to vote his or her ballot, and any
2013 ballots improperly cast are invalid. A unit owner who violates
2014 this provision may be fined by the association in accordance
2015 with s. 718.303. A unit owner who needs assistance in casting
2016 the ballot for the reasons stated in s. 101.051 may obtain such
2017 assistance. The regular election must occur on the date of the
2018 annual meeting. Notwithstanding this sub-subparagraph, an
2019 election is not required unless more candidates file notices of
2020 intent to run or are nominated than board vacancies exist.
2021 b. A director of a board of an association of a residential
2022 condominium shall:
2023 (I) Certify in writing to the secretary of the association
2024 that he or she has read the association’s declaration of
2025 condominium, articles of incorporation, bylaws, and current
2026 written policies; that he or she will work to uphold such
2027 documents and policies to the best of his or her ability; and
2028 that he or she will faithfully discharge his or her fiduciary
2029 responsibility to the association’s members.
2030 (II) Submit to the secretary of the association a
2031 certificate of having satisfactorily completed the educational
2032 curriculum administered by the division or a division-approved
2033 condominium education provider. The educational curriculum must
2034 be at least 4 hours long and include instruction on milestone
2035 inspections, structural integrity reserve studies, elections,
2036 recordkeeping, financial literacy and transparency, levying of
2037 fines, and notice and meeting requirements.
2038
2039 Each newly elected or appointed director must submit to the
2040 secretary of the association the written certification and
2041 educational certificate within 1 year before being elected or
2042 appointed or 90 days after the date of election or appointment.
2043 A director of an association of a residential condominium who
2044 was elected or appointed before July 1, 2024, must comply with
2045 the written certification and educational certificate
2046 requirements in this sub-subparagraph by June 30, 2025. The
2047 written certification and educational certificate is valid for 7
2048 years after the date of issuance and does not have to be
2049 resubmitted as long as the director serves on the board without
2050 interruption during the 7-year period. A director who is
2051 appointed by the developer may satisfy the educational
2052 certificate requirement in sub-sub-subparagraph (II) for any
2053 subsequent appointment to a board by a developer within 7 years
2054 after the date of issuance of the most recent educational
2055 certificate, including any interruption of service on a board or
2056 appointment to a board in another association within that 7-year
2057 period. One year after submission of the most recent written
2058 certification and educational certificate, and annually
2059 thereafter, a director of an association of a residential
2060 condominium must submit to the secretary of the association a
2061 certificate of having satisfactorily completed at least 1 hour
2062 of continuing education administered by the division, or a
2063 division-approved condominium education provider, relating to
2064 any recent changes to this chapter and the related
2065 administrative rules during the past year. A director of an
2066 association of a residential condominium who fails to timely
2067 file the written certification and educational certificate is
2068 suspended from service on the board until he or she complies
2069 with this sub-subparagraph. The board may temporarily fill the
2070 vacancy during the period of suspension. The secretary shall
2071 cause the association to retain a director’s written
2072 certification and educational certificate for inspection by the
2073 members for 7 years after a director’s election or the duration
2074 of the director’s uninterrupted tenure, whichever is longer.
2075 Failure to have such written certification and educational
2076 certificate on file does not affect the validity of any board
2077 action.
2078 c. Any challenge to the election process must be commenced
2079 within 60 days after the election results are announced.
2080 6.5. Any approval by unit owners called for by this chapter
2081 or the applicable declaration or bylaws, including, but not
2082 limited to, the approval requirement in s. 718.111(8), must be
2083 made at a duly noticed meeting of unit owners and is subject to
2084 all requirements of this chapter or the applicable condominium
2085 documents relating to unit owner decisionmaking, except that
2086 unit owners may take action by written agreement, without
2087 meetings, on matters for which action by written agreement
2088 without meetings is expressly allowed by the applicable bylaws
2089 or declaration or any law that provides for such action.
2090 7.6. Unit owners may waive notice of specific meetings if
2091 allowed by the applicable bylaws or declaration or any law.
2092 Notice of meetings of the board of administration; unit owner
2093 meetings, except unit owner meetings called to recall board
2094 members under paragraph (l); and committee meetings may be given
2095 by electronic transmission to unit owners who consent to receive
2096 notice by electronic transmission. A unit owner who consents to
2097 receiving notices by electronic transmission is solely
2098 responsible for removing or bypassing filters that block receipt
2099 of mass e-mails sent to members on behalf of the association in
2100 the course of giving electronic notices.
2101 8.7. Unit owners have the right to participate in meetings
2102 of unit owners with reference to all designated agenda items.
2103 However, the association may adopt reasonable rules governing
2104 the frequency, duration, and manner of unit owner participation.
2105 9.8. A unit owner may tape record or videotape a meeting of
2106 the unit owners subject to reasonable rules adopted by the
2107 division.
2108 10.9. Unless otherwise provided in the bylaws, any vacancy
2109 occurring on the board before the expiration of a term may be
2110 filled by the affirmative vote of the majority of the remaining
2111 directors, even if the remaining directors constitute less than
2112 a quorum, or by the sole remaining director. In the alternative,
2113 a board may hold an election to fill the vacancy, in which case
2114 the election procedures must conform to sub-subparagraph 4.a.
2115 unless the association governs 10 units or fewer and has opted
2116 out of the statutory election process, in which case the bylaws
2117 of the association control. Unless otherwise provided in the
2118 bylaws, a board member appointed or elected under this section
2119 shall fill the vacancy for the unexpired term of the seat being
2120 filled. Filling vacancies created by recall is governed by
2121 paragraph (l) and rules adopted by the division.
2122 11.10. This chapter does not limit the use of general or
2123 limited proxies, require the use of general or limited proxies,
2124 or require the use of a written ballot or voting machine for any
2125 agenda item or election at any meeting of a timeshare
2126 condominium association or nonresidential condominium
2127 association.
2128
2129 Notwithstanding subparagraph (b)2. and sub-subparagraph 4.a., an
2130 association of 10 or fewer units may, by affirmative vote of a
2131 majority of the total voting interests, provide for different
2132 voting and election procedures in its bylaws, which may be by a
2133 proxy specifically delineating the different voting and election
2134 procedures. The different voting and election procedures may
2135 provide for elections to be conducted by limited or general
2136 proxy.
2137 (e) Budget meeting.—
2138 1. Any meeting at which a proposed annual budget of an
2139 association will be considered by the board or unit owners shall
2140 be open to all unit owners. A meeting of the board or unit
2141 owners at which a proposed annual association budget will be
2142 considered may be conducted by video conference. The division
2143 shall adopt rules pursuant to ss. 120.536 and 120.54 governing
2144 the requirements for such meetings. A sound transmitting device
2145 must be used so that the conversation of such members may be
2146 heard by the board or committee members attending in person, as
2147 well as any unit owners present at the meeting. At least 14 days
2148 before prior to such a meeting, the board shall hand deliver to
2149 each unit owner, mail to each unit owner at the address last
2150 furnished to the association by the unit owner, or
2151 electronically transmit to the location furnished by the unit
2152 owner for that purpose a notice of such meeting and a copy of
2153 the proposed annual budget. An officer or manager of the
2154 association, or other person providing notice of such meeting,
2155 shall execute an affidavit evidencing compliance with such
2156 notice requirement, and such affidavit shall be filed among the
2157 official records of the association.
2158 2.a. If a board proposes adopts in any fiscal year an
2159 annual budget which requires assessments against unit owners
2160 which exceed 115 percent of assessments for the preceding fiscal
2161 year, the board shall simultaneously propose a substitute budget
2162 that does not include any discretionary expenditures that are
2163 not required to be in the budget. The substitute budget must be
2164 proposed at the budget meeting before the adoption of the annual
2165 budget conduct a special meeting of the unit owners to consider
2166 a substitute budget if the board receives, within 21 days after
2167 adoption of the annual budget, a written request for a special
2168 meeting from at least 10 percent of all voting interests. The
2169 special meeting shall be conducted within 60 days after adoption
2170 of the annual budget. At least 14 days before such budget
2171 meeting in which a substitute budget will be proposed prior to
2172 such special meeting, the board shall hand deliver to each unit
2173 owner, or mail to each unit owner at the address last furnished
2174 to the association, a notice of the meeting. An officer or
2175 manager of the association, or other person providing notice of
2176 such meeting shall execute an affidavit evidencing compliance
2177 with this notice requirement, and such affidavit shall be filed
2178 among the official records of the association. Unit owners must
2179 may consider and may adopt a substitute budget at the special
2180 meeting. A substitute budget is adopted if approved by a
2181 majority of all voting interests unless the bylaws require
2182 adoption by a greater percentage of voting interests. If there
2183 is not a quorum at the special meeting or a substitute budget is
2184 not adopted, the annual budget previously initially proposed
2185 adopted by the board may be adopted shall take effect as
2186 scheduled.
2187 b. Any determination of whether assessments exceed 115
2188 percent of assessments for the prior fiscal year shall exclude
2189 any authorized provision for required reasonable reserves for
2190 repair or replacement of the condominium property, anticipated
2191 expenses of the association which the board does not expect to
2192 be incurred on a regular or annual basis for the repair,
2193 maintenance, or replacement of the items listed in paragraph
2194 (g), and insurance premiums, or assessments for betterments to
2195 the condominium property.
2196 c. If the developer controls the board, assessments may
2197 shall not exceed 115 percent of assessments for the prior fiscal
2198 year unless approved by a majority of all voting interests.
2199 (f) Annual budget.—
2200 1. The proposed annual budget of estimated revenues and
2201 expenses must be detailed and must show the amounts budgeted by
2202 accounts and expense classifications, including, at a minimum,
2203 any applicable expenses listed in s. 718.504(21). The board
2204 shall adopt the annual budget at least 14 days before the start
2205 of the association’s fiscal year. In the event that the board
2206 fails to timely adopt the annual budget a second time, it is
2207 deemed a minor violation and the prior year’s budget shall
2208 continue in effect until a new budget is adopted. A
2209 multicondominium association must adopt a separate budget of
2210 common expenses for each condominium the association operates
2211 and must adopt a separate budget of common expenses for the
2212 association. In addition, if the association maintains limited
2213 common elements with the cost to be shared only by those
2214 entitled to use the limited common elements as provided for in
2215 s. 718.113(1), the budget or a schedule attached to it must show
2216 the amount budgeted for this maintenance. If, after turnover of
2217 control of the association to the unit owners, any of the
2218 expenses listed in s. 718.504(21) are not applicable, they do
2219 not need to be listed.
2220 2.a. In addition to annual operating expenses, the budget
2221 must include reserve accounts for capital expenditures and
2222 deferred maintenance. These accounts must include, but are not
2223 limited to, roof replacement, building painting, and pavement
2224 resurfacing, regardless of the amount of deferred maintenance
2225 expense or replacement cost, and any other item that has a
2226 deferred maintenance expense or replacement cost that exceeds
2227 $25,000 or the inflation-adjusted amount determined by the
2228 division under subparagraph 5., whichever is greater $10,000.
2229 The amount to be reserved must be computed using a formula based
2230 upon estimated remaining useful life and estimated replacement
2231 cost or deferred maintenance expense of the reserve item. In a
2232 budget adopted by an association that is required to obtain a
2233 structural integrity reserve study, reserves must be maintained
2234 for the items identified in paragraph (g) for which the
2235 association is responsible pursuant to the declaration of
2236 condominium, and the reserve amount for such items must be based
2237 on the findings and recommendations of the association’s most
2238 recent structural integrity reserve study. If an association
2239 votes to terminate the condominium in accordance with s.
2240 718.117, the members may vote to waive the maintenance of
2241 reserves recommended by the association’s most recent structural
2242 integrity reserve study. With respect to items for which an
2243 estimate of useful life is not readily ascertainable or with an
2244 estimated remaining useful life of greater than 25 years, an
2245 association is not required to reserve replacement costs for
2246 such items, but an association must reserve the amount of
2247 deferred maintenance expense, if any, which is recommended by
2248 the structural integrity reserve study for such items. The
2249 association may adjust replacement reserve assessments annually
2250 to take into account an inflation adjustment and any changes in
2251 estimates or extension of the useful life of a reserve item
2252 caused by deferred maintenance.
2253 b. The members of a unit-owner-controlled association may
2254 determine, by a majority vote of the total voting interests of
2255 the association, to provide no reserves or less reserves than
2256 required by this subsection. For a budget adopted on or after
2257 December 31, 2024, the members of a unit-owner-controlled
2258 association that must obtain a structural integrity reserve
2259 study may not determine to provide no reserves or less reserves
2260 than required by this subsection for items listed in paragraph
2261 (g), except that members of an association operating a
2262 multicondominium may determine to provide no reserves or less
2263 reserves than required by this subsection if an alternative
2264 funding method is used by the association has been approved by
2265 the division.
2266 c.(I) Reserves for the items listed in paragraph (g) may be
2267 funded by regular assessments, special assessments, lines of
2268 credit, or loans.
2269 (II) A unit-owner-controlled association that must have a
2270 structural integrity reserve study may secure a line of credit
2271 or a loan to fund capital expenses required by a milestone
2272 inspection under s. 553.899 or a structural integrity reserve
2273 study. A line of credit or a loan under this subparagraph
2274 requires the approval of a majority vote of the total voting
2275 interests of the association. The line of credit or loan must be
2276 sufficient to fund the cumulative amount of any previously
2277 waived or unfunded portions of the reserve funding amount
2278 required by this paragraph and the most recent structural
2279 integrity reserve study. Funding from the line of credit or loan
2280 must be immediately available for access by the board to fund
2281 required repair, maintenance, or replacement expenses without
2282 further approval by the members of the association. A line of
2283 credit or a loan secured under this sub-subparagraph must be
2284 included in the financial report required under s. 718.111(13).
2285 (III) This sub-subparagraph does not apply to associations
2286 controlled by a developer as defined in s. 718.103, an
2287 association in which the nondeveloper unit owners have been in
2288 control for less than 1 year, or an association controlled by
2289 one or more bulk assignees or bulk buyers as those terms are
2290 defined in s. 718.703.
2291 d. If the local building official, as defined in s.
2292 468.603, determines that the entire condominium building is
2293 uninhabitable due to a natural emergency, as defined in s.
2294 252.34, the board, upon the approval of a majority of its
2295 members, may pause the contribution to its reserves or reduce
2296 reserve funding until the local building official determines
2297 that the condominium building is habitable. Any reserve account
2298 funds held by the association may be expended, pursuant to the
2299 board’s determination, to make the condominium building and its
2300 structures habitable. Upon the determination by the local
2301 building official that the condominium building is habitable,
2302 the association must immediately resume contributing funds to
2303 its reserves.
2304 e. For a budget adopted on or before December 31, 2028, if
2305 the association has completed a milestone inspection pursuant to
2306 s. 553.899 within the previous 2 calendar years, the board, upon
2307 the approval of a majority of the total voting interests of the
2308 association, may temporarily pause, for a period of no more than
2309 2 consecutive annual budgets, reserve fund contributions or
2310 reduce the amount of reserve funding for the purpose of funding
2311 repairs recommended by the milestone inspection. This sub
2312 subparagraph does not apply to an association controlled by a
2313 developer as defined in s. 718.103, an association in which the
2314 nondeveloper unit owners have been in control for less than 1
2315 year, or an association controlled by one or more bulk assignees
2316 or bulk buyers as those terms are defined in s. 718.703. An
2317 association that has paused reserve contributions under this
2318 subparagraph must have a structural integrity reserve study
2319 performed before the continuation of reserve contributions in
2320 order to determine the association’s reserve funding needs and
2321 to recommend a reserve funding plan.
2322 f.b. Before turnover of control of an association by a
2323 developer to unit owners other than a developer under s.
2324 718.301, the developer-controlled association may not vote to
2325 waive the reserves or reduce funding of the reserves. If a
2326 meeting of the unit owners has been called to determine whether
2327 to waive or reduce the funding of reserves and no such result is
2328 achieved or a quorum is not attained, the reserves included in
2329 the budget shall go into effect. After the turnover, the
2330 developer may vote its voting interest to waive or reduce the
2331 funding of reserves.
2332 3. Reserve funds and any interest accruing thereon shall
2333 remain in the reserve account or accounts, and may be used only
2334 for authorized reserve expenditures unless their use for other
2335 purposes is approved in advance by a majority vote of all the
2336 total voting interests of the association. Before turnover of
2337 control of an association by a developer to unit owners other
2338 than the developer pursuant to s. 718.301, the developer
2339 controlled association may not vote to use reserves for purposes
2340 other than those for which they were intended. For a budget
2341 adopted on or after December 31, 2024, members of a unit-owner
2342 controlled association that must obtain a structural integrity
2343 reserve study may not vote to use reserve funds, or any interest
2344 accruing thereon, for any other purpose other than the
2345 replacement or deferred maintenance costs of the components
2346 listed in paragraph (g). A vote of the members is not required
2347 for the board to change the accounting method for reserves to a
2348 pooling accounting method or a straight-line accounting method.
2349 4. The only voting interests that are eligible to vote on
2350 questions that involve waiving or reducing the funding of
2351 reserves, or using existing reserve funds for purposes other
2352 than purposes for which the reserves were intended, are the
2353 voting interests of the units subject to assessment to fund the
2354 reserves in question. Proxy questions relating to waiving or
2355 reducing the funding of reserves or using existing reserve funds
2356 for purposes other than purposes for which the reserves were
2357 intended must contain the following statement in capitalized,
2358 bold letters in a font size larger than any other used on the
2359 face of the proxy ballot:
2360
2361 WAIVING OF RESERVES, IN WHOLE OR IN PART, OR ALLOWING
2362 ALTERNATIVE USES OF EXISTING RESERVES MAY RESULT IN
2363 UNIT OWNER LIABILITY FOR PAYMENT OF UNANTICIPATED
2364 SPECIAL ASSESSMENTS REGARDING THOSE ITEMS.
2365
2366 5. The division shall annually adjust for inflation, based
2367 on the Consumer Price Index for All Urban Consumers released in
2368 January of each year, the minimum $25,000 threshold amount for
2369 required reserves. By February 1, 2026, and annually thereafter,
2370 the division must conspicuously post on its website the
2371 inflation-adjusted minimum threshold amount for required
2372 reserves.
2373 (g) Structural integrity reserve study.—
2374 1. A residential condominium association must have a
2375 structural integrity reserve study completed at least every 10
2376 years after the condominium’s creation for each building on the
2377 condominium property that is three stories or higher in height,
2378 as determined by the Florida Building Code, which includes, at a
2379 minimum, a study of the following items as related to the
2380 structural integrity and safety of the building:
2381 a. Roof.
2382 b. Structure, including load-bearing walls and other
2383 primary structural members and primary structural systems as
2384 those terms are defined in s. 627.706.
2385 c. Fireproofing and fire protection systems.
2386 d. Plumbing.
2387 e. Electrical systems.
2388 f. Waterproofing and exterior painting.
2389 g. Windows and exterior doors.
2390 h. Any other item that has a deferred maintenance expense
2391 or replacement cost that exceeds $25,000 or the inflation
2392 adjusted amount determined by the division under subparagraph
2393 (f)5., whichever is greater, $10,000 and the failure to replace
2394 or maintain such item negatively affects the items listed in
2395 sub-subparagraphs a.-g., as determined by the visual inspection
2396 portion of the structural integrity reserve study.
2397 2. A structural integrity reserve study is based on a
2398 visual inspection of the condominium property.
2399 3.a. A structural integrity reserve study may be performed
2400 by any person qualified to perform such study. However,
2401 including the visual inspection portion of the structural
2402 integrity reserve study, must be performed or verified by an
2403 engineer licensed under chapter 471, an architect licensed under
2404 chapter 481, or a person certified as a reserve specialist or
2405 professional reserve analyst by the Community Associations
2406 Institute or the Association of Professional Reserve Analysts.
2407 b. Any design professional as defined in s. 558.002 or any
2408 contractor licensed under chapter 489 who bids to perform a
2409 structural integrity reserve study must disclose in writing to
2410 the association his or her intent to bid on any services related
2411 to any maintenance, repair, or replacement that may be
2412 recommended by the structural integrity reserve study. Any
2413 design professional as defined in s. 558.002 or contractor
2414 licensed under chapter 489 who submits a bid to the association
2415 for performing any services recommended by the structural
2416 integrity reserve study may not have an interest, directly or
2417 indirectly, in the firm or entity providing the association’s
2418 structural integrity reserve study or be a relative of any
2419 person having a direct or indirect interest in such firm, unless
2420 such relationship is disclosed to the association in writing. As
2421 used in this section, the term “relative” means a relative
2422 within the third degree of consanguinity by blood or marriage. A
2423 contract for services is voidable and terminates upon the
2424 association filing a written notice terminating the contract if
2425 the design professional or licensed contractor failed to provide
2426 the written disclosure of the interests or relationships
2427 required under this paragraph. A design professional or licensed
2428 contractor may be subject to discipline under the applicable
2429 practice act for his or her profession for failure to provide
2430 the written disclosure of the interests or relationships
2431 required under this paragraph.
2432 4.a.3. At a minimum, a structural integrity reserve study
2433 must identify each item of the condominium property being
2434 visually inspected, state the estimated remaining useful life
2435 and the estimated replacement cost or deferred maintenance
2436 expense of each item of the condominium property being visually
2437 inspected, and provide a reserve funding plan or schedule with a
2438 recommended annual reserve amount that achieves the estimated
2439 replacement cost or deferred maintenance expense of each item of
2440 condominium property being visually inspected by the end of the
2441 estimated remaining useful life of the item. At a minimum, the
2442 structural integrity reserve study must include a recommendation
2443 for a reserve funding schedule based on a baseline funding plan
2444 that provides a reserve funding goal in which the reserve
2445 funding for each budget year is sufficient to maintain the
2446 reserve cash balance above zero. The study may recommend other
2447 types of reserve funding schedules, provided that each
2448 recommended schedule is sufficient to meet the association’s
2449 maintenance obligation.
2450 b. The structural integrity reserve study may recommend
2451 that reserves do not need to be maintained for any item for
2452 which an estimate of useful life and an estimate of replacement
2453 cost cannot be determined, or the study may recommend a deferred
2454 maintenance expense amount for such item. The structural
2455 integrity reserve study may recommend that reserves for
2456 replacement costs do not need to be maintained for any item with
2457 an estimated remaining useful life of greater than 25 years, but
2458 the study may recommend a deferred maintenance expense amount
2459 for such item. If the structural integrity reserve study
2460 recommends reserves for any item for which reserves are not
2461 required under this paragraph, the amount of the recommended
2462 reserves for such item must be separately identified in the
2463 structural integrity reserve study as an item for which reserves
2464 are not required under this paragraph.
2465 c. The structural integrity reserve study must take into
2466 consideration the funding method or methods used by the
2467 association to fund its maintenance and reserve funding
2468 obligations through regular assessments, special assessments,
2469 lines of credit, or loans. If the structural integrity reserve
2470 study is performed before the association has approved a special
2471 assessment or secured a line of credit or a loan, the structural
2472 integrity reserve study must be updated to reflect the funding
2473 method selected by the association and its effect on the reserve
2474 funding schedule, including any anticipated change in the amount
2475 of regular assessments. The structural integrity reserve study
2476 may be updated to reflect any changes to the useful life of the
2477 reserve items after such items are repaired or replaced, and the
2478 effect such repair or replacement will have on the reserve
2479 funding schedule. The association must obtain an updated
2480 structural integrity reserve study before adopting any budget in
2481 which the reserve funding from regular assessments, special
2482 assessments, lines of credit, or loans do not align with the
2483 funding plan from the most recent version of the structural
2484 integrity reserve study.
2485 5.4. This paragraph does not apply to buildings less than
2486 three stories in height; single-family, two-family, or three
2487 family dwellings with three or fewer habitable stories above
2488 ground; any portion or component of a building that has not been
2489 submitted to the condominium form of ownership; or any portion
2490 or component of a building that is maintained by a party other
2491 than the association.
2492 6.5. Before a developer turns over control of an
2493 association to unit owners other than the developer, the
2494 developer must have a turnover inspection report in compliance
2495 with s. 718.301(4)(p) and (q) for each building on the
2496 condominium property that is three stories or higher in height.
2497 7.6. Associations existing on or before July 1, 2022, which
2498 are controlled by unit owners other than the developer, must
2499 have a structural integrity reserve study completed by December
2500 31, 2025 2024, for each building on the condominium property
2501 that is three stories or higher in height. An association that
2502 is required to complete a milestone inspection in accordance
2503 with s. 553.899 on or before December 31, 2026, may complete the
2504 structural integrity reserve study simultaneously with the
2505 milestone inspection. In no event may the structural integrity
2506 reserve study be completed after December 31, 2026.
2507 8.7. If the milestone inspection required by s. 553.899, or
2508 an inspection completed for a similar local requirement, was
2509 performed within the past 5 years and meets the requirements of
2510 this paragraph, such inspection may be used in place of the
2511 visual inspection portion of the structural integrity reserve
2512 study.
2513 9. If the association completes a milestone inspection
2514 required by s. 553.899, or an inspection completed for a similar
2515 local requirement, the association may delay performance of a
2516 required structural integrity reserve study for no more than the
2517 2 consecutive budget years immediately following the milestone
2518 inspection in order to allow the association to focus its
2519 financial resources on completing the repair and maintenance
2520 recommendations of the milestone inspection.
2521 10.8. If the officers or directors of an association
2522 willfully and knowingly fail to complete a structural integrity
2523 reserve study pursuant to this paragraph, such failure is a
2524 breach of an officer’s or a and director’s fiduciary
2525 relationship to the unit owners under s. 718.111(1). An officer
2526 or a director of an association must sign an affidavit
2527 acknowledging receipt of the completed structural integrity
2528 reserve study.
2529 11.9. Within 45 days after receiving the structural
2530 integrity reserve study, the association must distribute a copy
2531 of the study to each unit owner or deliver to each unit owner a
2532 notice that the completed study is available for inspection and
2533 copying upon a written request. Distribution of a copy of the
2534 study or notice must be made by United States mail or personal
2535 delivery to the mailing address, property address, or any other
2536 address of the owner provided to fulfill the association’s
2537 notice requirements under this chapter, or by electronic
2538 transmission to the e-mail address or facsimile number provided
2539 to fulfill the association’s notice requirements to unit owners
2540 who previously consented to receive notice by electronic
2541 transmission.
2542 12.10. Within 45 days after receiving the structural
2543 integrity reserve study, the association must provide the
2544 division with a statement indicating that the study was
2545 completed and that the association provided or made available
2546 such study to each unit owner in accordance with this section.
2547 The statement must be provided to the division in the manner
2548 established by the division using a form posted on the
2549 division’s website.
2550 13. The division shall adopt by rule the form for the
2551 structural integrity reserve study in coordination with the
2552 Florida Building Commission.
2553 Section 8. Subsections (1) and (3) of section 718.501,
2554 Florida Statutes, are amended, and paragraph (d) is added to
2555 subsection (2) of that section, to read:
2556 718.501 Authority, responsibility, and duties of Division
2557 of Florida Condominiums, Timeshares, and Mobile Homes.—
2558 (1) The division may enforce and ensure compliance with
2559 this chapter and rules relating to the development,
2560 construction, sale, lease, ownership, operation, and management
2561 of residential condominium units and complaints related to the
2562 procedural completion of milestone inspections under s. 553.899.
2563 In performing its duties, the division has complete jurisdiction
2564 to investigate complaints and enforce compliance with respect to
2565 associations that are still under developer control or the
2566 control of a bulk assignee or bulk buyer pursuant to part VII of
2567 this chapter and complaints against developers, bulk assignees,
2568 or bulk buyers involving improper turnover or failure to
2569 turnover, pursuant to s. 718.301. However, after turnover has
2570 occurred, the division has jurisdiction to review records and
2571 investigate complaints related only to:
2572 (a)1. Procedural aspects and records relating to financial
2573 issues, including annual financial reporting under s.
2574 718.111(13); assessments for common expenses, fines, and
2575 commingling of reserve and operating funds under s. 718.111(14);
2576 use of debit cards for unintended purposes under s. 718.111(15);
2577 the annual operating budget and the allocation of reserve funds
2578 under s. 718.112(2)(f); financial records under s.
2579 718.111(12)(a)11.; and any other record necessary to determine
2580 the revenues and expenses of the association.
2581 2. Elections, including election and voting requirements
2582 under s. 718.112(2)(b) and (d), recall of board members under s.
2583 718.112(2)(l), electronic voting under s. 718.128, and elections
2584 that occur during an emergency under s. 718.1265(1)(a).
2585 3. The maintenance of and unit owner access to association
2586 records under s. 718.111(12).
2587 4. The procedural aspects of meetings, including unit owner
2588 meetings, quorums, voting requirements, proxies, board of
2589 administration meetings, and budget meetings under s.
2590 718.112(2).
2591 5. The disclosure of conflicts of interest under ss.
2592 718.111(1)(a) and 718.3027, including limitations contained in
2593 s. 718.111(3)(f).
2594 6. The removal of a board director or officer under ss.
2595 718.111(1)(a) and (15) and 718.112(2)(p) and (q).
2596 7. The procedural completion of structural integrity
2597 reserve studies under s. 718.112(2)(g) and the milestone
2598 inspections under s. 553.899.
2599 8. Completion of repairs required by a milestone inspection
2600 under s. 553.899.
2601 9.8. Any written inquiries by unit owners to the
2602 association relating to such matters, including written
2603 inquiries under s. 718.112(2)(a)2.
2604 10. The requirement for associations to maintain an
2605 insurance policy or fidelity bonding for all persons who control
2606 or disperse funds of the association under s. 718.111(11)(h).
2607 11. Board member education requirements under s.
2608 718.112(2)(d)5.b.
2609 12. Reporting requirements for structural integrity reserve
2610 studies under subsection (3) and under s. 718.112(2)(g)12.
2611 (b)1. The division may make necessary public or private
2612 investigations within or outside this state to determine whether
2613 any person has violated this chapter or any rule or order
2614 hereunder, to aid in the enforcement of this chapter, or to aid
2615 in the adoption of rules or forms.
2616 2. The division may submit any official written report,
2617 worksheet, or other related paper, or a duly certified copy
2618 thereof, compiled, prepared, drafted, or otherwise made by and
2619 duly authenticated by a financial examiner or analyst to be
2620 admitted as competent evidence in any hearing in which the
2621 financial examiner or analyst is available for cross-examination
2622 and attests under oath that such documents were prepared as a
2623 result of an examination or inspection conducted pursuant to
2624 this chapter.
2625 (c) The division may require or permit any person to file a
2626 statement in writing, under oath or otherwise, as the division
2627 determines, as to the facts and circumstances concerning a
2628 matter to be investigated.
2629 (d) For the purpose of any investigation under this
2630 chapter, the division director or any officer or employee
2631 designated by the division director may administer oaths or
2632 affirmations, subpoena witnesses and compel their attendance,
2633 take evidence, and require the production of any matter which is
2634 relevant to the investigation, including the existence,
2635 description, nature, custody, condition, and location of any
2636 books, documents, or other tangible things and the identity and
2637 location of persons having knowledge of relevant facts or any
2638 other matter reasonably calculated to lead to the discovery of
2639 material evidence. Upon the failure by a person to obey a
2640 subpoena or to answer questions propounded by the investigating
2641 officer and upon reasonable notice to all affected persons, the
2642 division may apply to the circuit court for an order compelling
2643 compliance.
2644 (e) Notwithstanding any remedies available to unit owners
2645 and associations, if the division has reasonable cause to
2646 believe that a violation of any provision of this chapter or
2647 related rule has occurred, the division may institute
2648 enforcement proceedings in its own name against any developer,
2649 bulk assignee, bulk buyer, association, officer, or member of
2650 the board of administration, or its assignees or agents, as
2651 follows:
2652 1. The division may permit a person whose conduct or
2653 actions may be under investigation to waive formal proceedings
2654 and enter into a consent proceeding whereby orders, rules, or
2655 letters of censure or warning, whether formal or informal, may
2656 be entered against the person.
2657 2. The division may issue an order requiring the developer,
2658 bulk assignee, bulk buyer, association, developer-designated
2659 officer, or developer-designated member of the board of
2660 administration, developer-designated assignees or agents, bulk
2661 assignee-designated assignees or agents, bulk buyer-designated
2662 assignees or agents, community association manager, or community
2663 association management firm to cease and desist from the
2664 unlawful practice and take such affirmative action as in the
2665 judgment of the division carry out the purposes of this chapter.
2666 If the division finds that a developer, bulk assignee, bulk
2667 buyer, association, officer, or member of the board of
2668 administration, or its assignees or agents, is violating or is
2669 about to violate any provision of this chapter, any rule adopted
2670 or order issued by the division, or any written agreement
2671 entered into with the division, and presents an immediate danger
2672 to the public requiring an immediate final order, it may issue
2673 an emergency cease and desist order reciting with particularity
2674 the facts underlying such findings. The emergency cease and
2675 desist order is effective for 90 days. If the division begins
2676 nonemergency cease and desist proceedings, the emergency cease
2677 and desist order remains effective until the conclusion of the
2678 proceedings under ss. 120.569 and 120.57.
2679 3. If a developer, bulk assignee, or bulk buyer fails to
2680 pay any restitution determined by the division to be owed, plus
2681 any accrued interest at the highest rate permitted by law,
2682 within 30 days after expiration of any appellate time period of
2683 a final order requiring payment of restitution or the conclusion
2684 of any appeal thereof, whichever is later, the division must
2685 bring an action in circuit or county court on behalf of any
2686 association, class of unit owners, lessees, or purchasers for
2687 restitution, declaratory relief, injunctive relief, or any other
2688 available remedy. The division may also temporarily revoke its
2689 acceptance of the filing for the developer to which the
2690 restitution relates until payment of restitution is made.
2691 4. The division may petition the court for appointment of a
2692 receiver or conservator. If appointed, the receiver or
2693 conservator may take action to implement the court order to
2694 ensure the performance of the order and to remedy any breach
2695 thereof. In addition to all other means provided by law for the
2696 enforcement of an injunction or temporary restraining order, the
2697 circuit court may impound or sequester the property of a party
2698 defendant, including books, papers, documents, and related
2699 records, and allow the examination and use of the property by
2700 the division and a court-appointed receiver or conservator.
2701 5. The division may apply to the circuit court for an order
2702 of restitution whereby the defendant in an action brought under
2703 subparagraph 4. is ordered to make restitution of those sums
2704 shown by the division to have been obtained by the defendant in
2705 violation of this chapter. At the option of the court, such
2706 restitution is payable to the conservator or receiver appointed
2707 under subparagraph 4. or directly to the persons whose funds or
2708 assets were obtained in violation of this chapter.
2709 6. The division may impose a civil penalty against a
2710 developer, bulk assignee, or bulk buyer, or association, or its
2711 assignee or agent, for any violation of this chapter or related
2712 rule. The division may impose a civil penalty individually
2713 against an officer or board member who willfully and knowingly
2714 violates this chapter, an adopted rule, or a final order of the
2715 division; may order the removal of such individual as an officer
2716 or from the board of administration or as an officer of the
2717 association; and may prohibit such individual from serving as an
2718 officer or on the board of a community association for a period
2719 of time. The term “willfully and knowingly” means that the
2720 division informed the officer or board member that his or her
2721 action or intended action violates this chapter, a rule adopted
2722 under this chapter, or a final order of the division and that
2723 the officer or board member refused to comply with the
2724 requirements of this chapter, a rule adopted under this chapter,
2725 or a final order of the division. The division, before
2726 initiating formal agency action under chapter 120, must afford
2727 the officer or board member an opportunity to voluntarily
2728 comply, and an officer or board member who complies within 10
2729 days is not subject to a civil penalty. A penalty may be imposed
2730 on the basis of each day of continuing violation, but the
2731 penalty for any offense may not exceed $5,000. The division
2732 shall adopt, by rule, penalty guidelines applicable to possible
2733 violations or to categories of violations of this chapter or
2734 rules adopted by the division. The guidelines must specify a
2735 meaningful range of civil penalties for each such violation of
2736 the statute and rules and must be based upon the harm caused by
2737 the violation, upon the repetition of the violation, and upon
2738 such other factors deemed relevant by the division. For example,
2739 the division may consider whether the violations were committed
2740 by a developer, bulk assignee, or bulk buyer, or owner
2741 controlled association, the size of the association, and other
2742 factors. The guidelines must designate the possible mitigating
2743 or aggravating circumstances that justify a departure from the
2744 range of penalties provided by the rules. It is the legislative
2745 intent that minor violations be distinguished from those which
2746 endanger the health, safety, or welfare of the condominium
2747 residents or other persons and that such guidelines provide
2748 reasonable and meaningful notice to the public of likely
2749 penalties that may be imposed for proscribed conduct. This
2750 subsection does not limit the ability of the division to
2751 informally dispose of administrative actions or complaints by
2752 stipulation, agreed settlement, or consent order. All amounts
2753 collected shall be deposited with the Chief Financial Officer to
2754 the credit of the Division of Florida Condominiums, Timeshares,
2755 and Mobile Homes Trust Fund. If a developer, bulk assignee, or
2756 bulk buyer fails to pay the civil penalty and the amount deemed
2757 to be owed to the association, the division shall issue an order
2758 directing that such developer, bulk assignee, or bulk buyer
2759 cease and desist from further operation until such time as the
2760 civil penalty is paid or may pursue enforcement of the penalty
2761 in a court of competent jurisdiction. If an association fails to
2762 pay the civil penalty, the division shall pursue enforcement in
2763 a court of competent jurisdiction, and the order imposing the
2764 civil penalty or the cease and desist order is not effective
2765 until 20 days after the date of such order. Any action commenced
2766 by the division shall be brought in the county in which the
2767 division has its executive offices or in the county in which the
2768 violation occurred.
2769 7. If a unit owner presents the division with proof that
2770 the unit owner has requested access to official records in
2771 writing by certified mail, and that after 10 days the unit owner
2772 again made the same request for access to official records in
2773 writing by certified mail, and that more than 10 days has
2774 elapsed since the second request and the association has still
2775 failed or refused to provide access to official records as
2776 required by this chapter, the division shall issue a subpoena
2777 requiring production of the requested records at the location in
2778 which the records are kept pursuant to s. 718.112. Upon receipt
2779 of the records, the division must provide to the unit owner who
2780 was denied access to such records the produced official records
2781 without charge.
2782 8. In addition to subparagraph 6., the division may seek
2783 the imposition of a civil penalty through the circuit court for
2784 any violation for which the division may issue a notice to show
2785 cause under paragraph (t). The civil penalty shall be at least
2786 $500 but no more than $5,000 for each violation. The court may
2787 also award to the prevailing party court costs and reasonable
2788 attorney fees and, if the division prevails, may also award
2789 reasonable costs of investigation.
2790 9. The division may issue citations and promulgate rules to
2791 provide for citation bases and citation procedures in accordance
2792 with this paragraph.
2793 (f) The division may prepare and disseminate a prospectus
2794 and other information to assist prospective owners, purchasers,
2795 lessees, and developers of residential condominiums in assessing
2796 the rights, privileges, and duties pertaining thereto.
2797 (g) The division may adopt rules to administer and enforce
2798 this chapter.
2799 (h) The division shall establish procedures for providing
2800 notice to an association and the developer, bulk assignee, or
2801 bulk buyer during the period in which the developer, bulk
2802 assignee, or bulk buyer controls the association if the division
2803 is considering the issuance of a declaratory statement with
2804 respect to the declaration of condominium or any related
2805 document governing such condominium community.
2806 (i) The division shall furnish each association that pays
2807 the fees required by paragraph (2)(a) a copy of this chapter, as
2808 amended, and the rules adopted thereto on an annual basis.
2809 (j) The division shall annually provide each association
2810 with a summary of declaratory statements and formal legal
2811 opinions relating to the operations of condominiums which were
2812 rendered by the division during the previous year.
2813 (k) The division shall provide training and educational
2814 programs for condominium association board members and unit
2815 owners. The training may, in the division’s discretion, include
2816 web-based electronic media and live training and seminars in
2817 various locations throughout the state. The division may review
2818 and approve education and training programs for board members
2819 and unit owners offered by providers and shall maintain a
2820 current list of approved programs and providers and make such
2821 list available to board members and unit owners in a reasonable
2822 and cost-effective manner. The division shall provide the
2823 division-approved provider with the template certificate for
2824 issuance directly to the association’s board of directors who
2825 have satisfactorily completed the requirements under s.
2826 718.112(2)(d). The division shall adopt rules to implement this
2827 section.
2828 (l) The division shall maintain a toll-free telephone
2829 number accessible to condominium unit owners.
2830 (m) The division shall develop a program to certify both
2831 volunteer and paid mediators to provide mediation of condominium
2832 disputes. The division shall provide, upon request, a list of
2833 such mediators to any association, unit owner, or other
2834 participant in alternative dispute resolution proceedings under
2835 s. 718.1255 requesting a copy of the list. The division shall
2836 include on the list of volunteer mediators only the names of
2837 persons who have received at least 20 hours of training in
2838 mediation techniques or who have mediated at least 20 disputes.
2839 In order to become initially certified by the division, paid
2840 mediators must be certified by the Supreme Court to mediate
2841 court cases in county or circuit courts. However, the division
2842 may adopt, by rule, additional factors for the certification of
2843 paid mediators, which must be related to experience, education,
2844 or background. Any person initially certified as a paid mediator
2845 by the division must, in order to continue to be certified,
2846 comply with the factors or requirements adopted by rule.
2847 (n) If a complaint is made, the division must conduct its
2848 inquiry with due regard for the interests of the affected
2849 parties. Within 30 days after receipt of a complaint, the
2850 division shall acknowledge the complaint in writing and notify
2851 the complainant whether the complaint is within the jurisdiction
2852 of the division and whether additional information is needed by
2853 the division from the complainant. The division shall conduct
2854 its investigation and, within 90 days after receipt of the
2855 original complaint or of timely requested additional
2856 information, take action upon the complaint. However, the
2857 failure to complete the investigation within 90 days does not
2858 prevent the division from continuing the investigation,
2859 accepting or considering evidence obtained or received after 90
2860 days, or taking administrative action if reasonable cause exists
2861 to believe that a violation of this chapter or a rule has
2862 occurred. If an investigation is not completed within the time
2863 limits established in this paragraph, the division shall, on a
2864 monthly basis, notify the complainant in writing of the status
2865 of the investigation. When reporting its action to the
2866 complainant, the division shall inform the complainant of any
2867 right to a hearing under ss. 120.569 and 120.57. The division
2868 may adopt rules regarding the submission of a complaint against
2869 an association.
2870 (o) Condominium association directors, officers, and
2871 employees; condominium developers; bulk assignees, bulk buyers,
2872 and community association managers; and community association
2873 management firms have an ongoing duty to reasonably cooperate
2874 with the division in any investigation under this section. The
2875 division shall refer to local law enforcement authorities any
2876 person whom the division believes has altered, destroyed,
2877 concealed, or removed any record, document, or thing required to
2878 be kept or maintained by this chapter with the purpose to impair
2879 its verity or availability in the department’s investigation.
2880 The division shall refer to local law enforcement authorities
2881 any person whom the division believes has engaged in fraud,
2882 theft, embezzlement, or other criminal activity or when the
2883 division has cause to believe that fraud, theft, embezzlement,
2884 or other criminal activity has occurred.
2885 (p) The division director or any officer or employee of the
2886 division and the condominium ombudsman or any employee of the
2887 Office of the Condominium Ombudsman may attend and observe any
2888 meeting of the board of administration or any unit owner
2889 meeting, including any meeting of a subcommittee or special
2890 committee, which is open to members of the association for the
2891 purpose of performing the duties of the division or the Office
2892 of the Condominium Ombudsman under this chapter.
2893 (q) The division may:
2894 1. Contract with agencies in this state or other
2895 jurisdictions to perform investigative functions; or
2896 2. Accept grants-in-aid from any source.
2897 (r) The division shall cooperate with similar agencies in
2898 other jurisdictions to establish uniform filing procedures and
2899 forms, public offering statements, advertising standards, and
2900 rules and common administrative practices.
2901 (s) The division shall consider notice to a developer, bulk
2902 assignee, or bulk buyer to be complete when it is delivered to
2903 the address of the developer, bulk assignee, or bulk buyer
2904 currently on file with the division.
2905 (t) In addition to its enforcement authority, the division
2906 may issue a notice to show cause, which must provide for a
2907 hearing, upon written request, in accordance with chapter 120.
2908 (u) If the division receives a complaint regarding access
2909 to official records on the association’s website or through an
2910 application that can be downloaded on a mobile device under s.
2911 718.111(12)(g), the division may request access to the
2912 association’s website or application and investigate. The
2913 division may adopt rules to carry out this paragraph.
2914 (v) The division shall submit to the Governor, the
2915 President of the Senate, the Speaker of the House of
2916 Representatives, and the chairs of the legislative
2917 appropriations committees an annual report that includes, but
2918 need not be limited to, the number of training programs provided
2919 for condominium association board members and unit owners, the
2920 number of complaints received by type, the number and percent of
2921 complaints acknowledged in writing within 30 days and the number
2922 and percent of investigations acted upon within 90 days in
2923 accordance with paragraph (n), and the number of investigations
2924 exceeding the 90-day requirement. The annual report must also
2925 include an evaluation of the division’s core business processes
2926 and make recommendations for improvements, including statutory
2927 changes. After December 31, 2024, the division must include a
2928 list of the associations that have completed the structural
2929 integrity reserve study required under s. 718.112(2)(g). The
2930 report shall be submitted by September 30 following the end of
2931 the fiscal year.
2932 (2)
2933 (d) Each condominium association must create and maintain
2934 an online account with the division, as required in subsection
2935 (3).
2936 (3) On or before October 1, 2025, all condominium
2937 associations must create and maintain an online account with the
2938 division and provide information requested by the division in an
2939 electronic format determined by the division. The division shall
2940 adopt rules to implement this subsection. The division may
2941 require condominium associations to provide such information no
2942 more than once per year, except that the division may require
2943 condominium associations to update the contact information in
2944 paragraph (a) within 30 days after any change. The division
2945 shall provide a condominium association at least a 45-day notice
2946 of any requirement to provide any information after the
2947 condominium association initially creates an online account. The
2948 information that the division may require from condominium
2949 associations is limited to:
2950 (a) Contact information for the association that includes:
2951 1. Name of the association.
2952 2. The physical address of the condominium property.
2953 3. Mailing address and county of the association.
2954 4. E-mail address and telephone number for the association.
2955 5. Name and board title for each member of the
2956 association’s board.
2957 6. Name and contact information of the association’s
2958 community association manager or community association
2959 management firm, if applicable.
2960 7. The hyperlink or website address of the association’s
2961 website, if applicable.
2962 (b) Total number of buildings and for each building in the
2963 association:
2964 1. Total number of stories, including both habitable and
2965 uninhabitable stories.
2966 2. Total number of units.
2967 3. Age of each building based on the certificate of
2968 occupancy.
2969 4. Any construction commenced within the common elements
2970 within the calendar year.
2971 (c) The association’s assessments, including the:
2972 1. Amount of assessment or special assessment by unit type,
2973 including reserves.
2974 2. Purpose of the assessment or special assessment.
2975 3. Name of the financial institution or institutions with
2976 which the association maintains accounts.
2977 (d) A copy of any structural integrity reserve study and
2978 any associated materials requested by the department within 5
2979 business days after such request, in a manner prescribed by the
2980 department.
2981 (a) On or before January 1, 2023, condominium associations
2982 existing on or before July 1, 2022, must provide the following
2983 information to the division in writing, by e-mail, United States
2984 Postal Service, commercial delivery service, or hand delivery,
2985 at a physical address or e-mail address provided by the division
2986 and on a form posted on the division’s website:
2987 1. The number of buildings on the condominium property that
2988 are three stories or higher in height.
2989 2. The total number of units in all such buildings.
2990 3. The addresses of all such buildings.
2991 4. The counties in which all such buildings are located.
2992 (b) The division must compile a list of the number of
2993 buildings on condominium property that are three stories or
2994 higher in height, which is searchable by county, and must post
2995 the list on the division’s website. This list must include all
2996 of the following information:
2997 1. The name of each association with buildings on the
2998 condominium property that are three stories or higher in height.
2999 2. The number of such buildings on each association’s
3000 property.
3001 3. The addresses of all such buildings.
3002 4. The counties in which all such buildings are located.
3003 (c) An association must provide an update in writing to the
3004 division if there are any changes to the information in the list
3005 under paragraph (b) within 6 months after the change.
3006 Section 9. Paragraph (d) of subsection (1) and paragraphs
3007 (d) and (e) of subsection (2) of section 718.503, Florida
3008 Statutes, are amended, to read:
3009 718.503 Developer disclosure prior to sale; nondeveloper
3010 unit owner disclosure prior to sale; voidability.—
3011 (1) DEVELOPER DISCLOSURE.—
3012 (d) Milestone inspection, turnover inspection report, or
3013 structural integrity reserve study.—If the association is
3014 required to have completed a milestone inspection as described
3015 in s. 553.899, a turnover inspection report for a turnover
3016 inspection performed on or after July 1, 2023, or a structural
3017 integrity reserve study, and the association has not completed
3018 the milestone inspection, the turnover inspection report, or the
3019 structural integrity reserve study, each contract entered into
3020 after December 31, 2024, for the sale of a residential unit
3021 shall contain in conspicuous type a statement indicating that
3022 the association is required to have a milestone inspection, a
3023 turnover inspection report, or a structural integrity reserve
3024 study and has not completed such inspection, report, or study,
3025 as appropriate. If the association is not required to have a
3026 milestone inspection as described in s. 553.899 or a structural
3027 integrity reserve study, each contract entered into after
3028 December 31, 2024, for the sale of a residential unit shall
3029 contain in conspicuous type a statement indicating that the
3030 association is not required to have a milestone inspection or a
3031 structural integrity reserve study, as appropriate. If the
3032 association has completed a milestone inspection as described in
3033 s. 553.899, a turnover inspection report for a turnover
3034 inspection performed on or after July 1, 2023, or a structural
3035 integrity reserve study, each contract entered into after
3036 December 31, 2024, for the sale of a residential unit shall
3037 contain in conspicuous type:
3038 1. A clause which states: THE BUYER HEREBY ACKNOWLEDGES
3039 THAT BUYER HAS BEEN PROVIDED A CURRENT COPY OF THE INSPECTOR
3040 PREPARED SUMMARY OF THE MILESTONE INSPECTION REPORT AS DESCRIBED
3041 IN SECTION 553.899, FLORIDA STATUTES, IF APPLICABLE; A COPY OF
3042 THE TURNOVER INSPECTION REPORT DESCRIBED IN SECTION
3043 718.301(4)(p) AND (q), FLORIDA STATUTES, IF APPLICABLE; AND A
3044 COPY OF THE ASSOCIATION’S MOST RECENT STRUCTURAL INTEGRITY
3045 RESERVE STUDY DESCRIBED IN SECTIONS 718.103(26) AND
3046 718.112(2)(g), FLORIDA STATUTES, IF APPLICABLE, MORE THAN 15
3047 DAYS, EXCLUDING SATURDAYS, SUNDAYS, AND LEGAL HOLIDAYS, BEFORE
3048 PRIOR TO EXECUTION OF THIS CONTRACT; and
3049 2. A clause which states: THIS AGREEMENT IS VOIDABLE BY
3050 BUYER BY DELIVERING WRITTEN NOTICE OF THE BUYER’S INTENTION TO
3051 CANCEL WITHIN 15 DAYS, EXCLUDING SATURDAYS, SUNDAYS, AND LEGAL
3052 HOLIDAYS, AFTER THE DATE OF EXECUTION OF THIS AGREEMENT BY THE
3053 BUYER AND RECEIPT BY BUYER OF A CURRENT COPY OF THE INSPECTOR
3054 PREPARED SUMMARY OF THE MILESTONE INSPECTION REPORT AS DESCRIBED
3055 IN SECTION 553.899, FLORIDA STATUTES, IF APPLICABLE; A COPY OF
3056 THE TURNOVER INSPECTION REPORT DESCRIBED IN SECTION
3057 718.301(4)(p) AND (q), FLORIDA STATUTES, IF APPLICABLE; AND A
3058 COPY OF THE ASSOCIATION’S MOST RECENT STRUCTURAL INTEGRITY
3059 RESERVE STUDY DESCRIBED IN SECTIONS 718.103(26) AND
3060 718.112(2)(g), FLORIDA STATUTES, IF APPLICABLE. ANY PURPORTED
3061 WAIVER OF THESE VOIDABILITY RIGHTS SHALL BE OF NO EFFECT. BUYER
3062 MAY EXTEND THE TIME FOR CLOSING FOR A PERIOD OF NOT MORE THAN 15
3063 DAYS, EXCLUDING SATURDAYS, SUNDAYS, AND LEGAL HOLIDAYS, AFTER
3064 THE BUYER RECEIVES A CURRENT COPY OF THE INSPECTOR-PREPARED
3065 SUMMARY OF THE MILESTONE INSPECTION REPORT AS DESCRIBED IN
3066 SECTION 553.899, FLORIDA STATUTES; A COPY OF THE TURNOVER
3067 INSPECTION REPORT DESCRIBED IN SECTION 718.301(4)(p) AND (q),
3068 FLORIDA STATUTES; OR A COPY OF THE ASSOCIATION’S MOST RECENT
3069 STRUCTURAL INTEGRITY RESERVE STUDY DESCRIBED IN SECTIONS
3070 718.103(26) AND 718.112(2)(g), FLORIDA STATUTES, IF REQUESTED IN
3071 WRITING. BUYER’S RIGHT TO VOID THIS AGREEMENT SHALL TERMINATE AT
3072 CLOSING.
3073
3074 A contract that does not conform to the requirements of this
3075 paragraph is voidable at the option of the purchaser before
3076 prior to closing.
3077 (2) NONDEVELOPER DISCLOSURE.—
3078 (d) Each contract entered into after July 1, 1992, for the
3079 resale of a residential unit must shall contain in conspicuous
3080 type either:
3081 1. A clause which states: THE BUYER HEREBY ACKNOWLEDGES
3082 THAT BUYER HAS BEEN PROVIDED A CURRENT COPY OF THE DECLARATION
3083 OF CONDOMINIUM, ARTICLES OF INCORPORATION OF THE ASSOCIATION,
3084 BYLAWS AND RULES OF THE ASSOCIATION, A COPY OF THE MOST RECENT
3085 ANNUAL FINANCIAL STATEMENT AND ANNUAL BUDGET, AND FREQUENTLY
3086 ASKED QUESTIONS AND ANSWERS DOCUMENT MORE THAN 7 3 DAYS,
3087 EXCLUDING SATURDAYS, SUNDAYS, AND LEGAL HOLIDAYS, BEFORE PRIOR
3088 TO EXECUTION OF THIS CONTRACT; or
3089 2. A clause which states: THIS AGREEMENT IS VOIDABLE BY
3090 BUYER BY DELIVERING WRITTEN NOTICE OF THE BUYER’S INTENTION TO
3091 CANCEL WITHIN 7 3 DAYS, EXCLUDING SATURDAYS, SUNDAYS, AND LEGAL
3092 HOLIDAYS, AFTER THE DATE OF EXECUTION OF THIS AGREEMENT BY THE
3093 BUYER AND RECEIPT BY BUYER OF A CURRENT COPY OF THE DECLARATION
3094 OF CONDOMINIUM, ARTICLES OF INCORPORATION, BYLAWS AND RULES OF
3095 THE ASSOCIATION, A COPY OF THE MOST RECENT ANNUAL FINANCIAL
3096 STATEMENT AND ANNUAL BUDGET, AND FREQUENTLY ASKED QUESTIONS AND
3097 ANSWERS DOCUMENT IF SO REQUESTED IN WRITING. ANY PURPORTED
3098 WAIVER OF THESE VOIDABILITY RIGHTS SHALL BE OF NO EFFECT. BUYER
3099 MAY EXTEND THE TIME FOR CLOSING FOR A PERIOD OF NOT MORE THAN 7
3100 3 DAYS, EXCLUDING SATURDAYS, SUNDAYS, AND LEGAL HOLIDAYS, AFTER
3101 THE BUYER RECEIVES THE DECLARATION, ARTICLES OF INCORPORATION,
3102 BYLAWS AND RULES OF THE ASSOCIATION, AND A COPY OF THE MOST
3103 RECENT YEAR-END FINANCIAL STATEMENT AND ANNUAL BUDGET
3104 INFORMATION AND FREQUENTLY ASKED QUESTIONS AND ANSWERS DOCUMENT
3105 IF REQUESTED IN WRITING. BUYER’S RIGHT TO VOID THIS AGREEMENT
3106 SHALL TERMINATE AT CLOSING.
3107
3108 A contract that does not conform to the requirements of this
3109 paragraph is voidable at the option of the purchaser before
3110 prior to closing.
3111 (e) If the association is required to have completed a
3112 milestone inspection as described in s. 553.899, a turnover
3113 inspection report for a turnover inspection performed on or
3114 after July 1, 2023, or a structural integrity reserve study, and
3115 the association has not completed the milestone inspection, the
3116 turnover inspection report, or the structural integrity reserve
3117 study, each contract entered into after December 31, 2024, for
3118 the sale of a residential unit shall contain in conspicuous type
3119 a statement indicating that the association is required to have
3120 a milestone inspection, a turnover inspection report, or a
3121 structural integrity reserve study and has not completed such
3122 inspection, report, or study, as appropriate. If the association
3123 is not required to have a milestone inspection as described in
3124 s. 553.899 or a structural integrity reserve study, each
3125 contract entered into after December 31, 2024, for the sale of a
3126 residential unit shall contain in conspicuous type a statement
3127 indicating that the association is not required to have a
3128 milestone inspection or a structural integrity reserve study, as
3129 appropriate. If the association has completed a milestone
3130 inspection as described in s. 553.899, a turnover inspection
3131 report for a turnover inspection performed on or after July 1,
3132 2023, or a structural integrity reserve study, each contract
3133 entered into after December 31, 2024, for the resale of a
3134 residential unit shall contain in conspicuous type:
3135 1. A clause which states: THE BUYER HEREBY ACKNOWLEDGES
3136 THAT BUYER HAS BEEN PROVIDED A CURRENT COPY OF THE INSPECTOR
3137 PREPARED SUMMARY OF THE MILESTONE INSPECTION REPORT AS DESCRIBED
3138 IN SECTION 553.899, FLORIDA STATUTES, IF APPLICABLE; A COPY OF
3139 THE TURNOVER INSPECTION REPORT DESCRIBED IN SECTION
3140 718.301(4)(p) AND (q), FLORIDA STATUTES, IF APPLICABLE; AND A
3141 COPY OF THE ASSOCIATION’S MOST RECENT STRUCTURAL INTEGRITY
3142 RESERVE STUDY DESCRIBED IN SECTIONS 718.103(26) AND
3143 718.112(2)(g), FLORIDA STATUTES, IF APPLICABLE, MORE THAN 7 3
3144 DAYS, EXCLUDING SATURDAYS, SUNDAYS, AND LEGAL HOLIDAYS, BEFORE
3145 PRIOR TO EXECUTION OF THIS CONTRACT; and
3146 2. A clause which states: THIS AGREEMENT IS VOIDABLE BY
3147 BUYER BY DELIVERING WRITTEN NOTICE OF THE BUYER’S INTENTION TO
3148 CANCEL WITHIN 7 3 DAYS, EXCLUDING SATURDAYS, SUNDAYS, AND LEGAL
3149 HOLIDAYS, AFTER THE DATE OF EXECUTION OF THIS AGREEMENT BY THE
3150 BUYER AND RECEIPT BY BUYER OF A CURRENT COPY OF THE INSPECTOR
3151 PREPARED SUMMARY OF THE MILESTONE INSPECTION REPORT AS DESCRIBED
3152 IN SECTION 553.899, FLORIDA STATUTES, IF APPLICABLE; A COPY OF
3153 THE TURNOVER INSPECTION REPORT DESCRIBED IN SECTION
3154 718.301(4)(p) AND (q), FLORIDA STATUTES, IF APPLICABLE; AND A
3155 COPY OF THE ASSOCIATION’S MOST RECENT STRUCTURAL INTEGRITY
3156 RESERVE STUDY DESCRIBED IN SECTIONS 718.103(26) AND
3157 718.112(2)(g), FLORIDA STATUTES, IF APPLICABLE. ANY PURPORTED
3158 WAIVER OF THESE VOIDABILITY RIGHTS SHALL BE OF NO EFFECT. BUYER
3159 MAY EXTEND THE TIME FOR CLOSING FOR A PERIOD OF NOT MORE THAN 7
3160 3 DAYS, EXCLUDING SATURDAYS, SUNDAYS, AND LEGAL HOLIDAYS, AFTER
3161 THE BUYER RECEIVES A CURRENT COPY OF THE INSPECTOR-PREPARED
3162 SUMMARY OF THE MILESTONE INSPECTION REPORT AS DESCRIBED IN
3163 SECTION 553.899, FLORIDA STATUTES; A COPY OF THE TURNOVER
3164 INSPECTION REPORT DESCRIBED IN SECTION 718.301(4)(p) AND (q),
3165 FLORIDA STATUTES; OR A COPY OF THE ASSOCIATION’S MOST RECENT
3166 STRUCTURAL INTEGRITY RESERVE STUDY DESCRIBED IN SECTIONS
3167 718.103(26) AND 718.112(2)(g), FLORIDA STATUTES, IF REQUESTED IN
3168 WRITING. BUYER’S RIGHT TO VOID THIS AGREEMENT SHALL TERMINATE AT
3169 CLOSING.
3170
3171 A contract that does not conform to the requirements of this
3172 paragraph is voidable at the option of the purchaser before
3173 prior to closing.
3174 Section 10. Section 8 of chapter 2024-244, Laws of Florida,
3175 is amended to read:
3176 Section 8. Effective January 1, 2026, paragraph (g) of
3177 subsection (12) of section 718.111, Florida Statutes, as amended
3178 by this act, is amended to read:
3179 718.111 The association.—
3180 (12) OFFICIAL RECORDS.—
3181 (g)1. An association managing a condominium with 25 or more
3182 units which does not contain timeshare units shall post digital
3183 copies of the documents specified in subparagraph 2. on its
3184 website or make such documents available through an application
3185 that can be downloaded on a mobile device. Unless a shorter
3186 period is otherwise required, a document must be made available
3187 on the association’s website or made available for download
3188 through an application on a mobile device within 30 days after
3189 the association receives or creates an official record specified
3190 in subparagraph 2.
3191 a. The association’s website or application must be:
3192 (I) An independent website, application, or web portal
3193 wholly owned and operated by the association; or
3194 (II) A website, application, or web portal operated by a
3195 third-party provider with whom the association owns, leases,
3196 rents, or otherwise obtains the right to operate a web page,
3197 subpage, web portal, collection of subpages or web portals, or
3198 an application which is dedicated to the association’s
3199 activities and on which required notices, records, and documents
3200 may be posted or made available by the association.
3201 b. The association’s website or application must be
3202 accessible through the Internet and must contain a subpage, web
3203 portal, or other protected electronic location that is
3204 inaccessible to the general public and accessible only to unit
3205 owners and employees of the association.
3206 c. Upon a unit owner’s written request, the association
3207 must provide the unit owner with a username and password and
3208 access to the protected sections of the association’s website or
3209 application which contain any notices, records, or documents
3210 that must be electronically provided.
3211 2. A current copy of the following documents must be posted
3212 in digital format on the association’s website or application:
3213 a. The recorded declaration of condominium of each
3214 condominium operated by the association and each amendment to
3215 each declaration.
3216 b. The recorded bylaws of the association and each
3217 amendment to the bylaws.
3218 c. The articles of incorporation of the association, or
3219 other documents creating the association, and each amendment to
3220 the articles of incorporation or other documents. The copy
3221 posted pursuant to this sub-subparagraph must be a copy of the
3222 articles of incorporation filed with the Department of State.
3223 d. The rules of the association.
3224 e. The approved minutes of all board of administration
3225 meetings over the preceding 12 months.
3226 f. The video recording or a hyperlink to the video
3227 recording for all meetings of the association, the board of
3228 administration, any committee, and the unit owners which are
3229 conducted by video conference over the preceding 12 months.
3230 g. A list of all executory contracts or documents to which
3231 the association is a party or under which the association or the
3232 unit owners have an obligation or responsibility and, after
3233 bidding for the related materials, equipment, or services has
3234 closed, a list of bids received by the association within the
3235 past year. Summaries of bids for materials, equipment, or
3236 services which exceed $500 must be maintained on the website or
3237 application for 1 year. In lieu of summaries, complete copies of
3238 the bids may be posted.
3239 h.f. The annual budget required by s. 718.112(2)(f) and any
3240 proposed budget to be considered at the annual meeting.
3241 i.g. The financial report required by subsection (13) and
3242 any monthly income or expense statement to be considered at a
3243 meeting.
3244 j.h. The certification of each director required by s.
3245 718.112(2)(d)4.b.
3246 k.i. All contracts or transactions between the association
3247 and any director, officer, corporation, firm, or association
3248 that is not an affiliated condominium association or any other
3249 entity in which an association director is also a director or
3250 officer and financially interested.
3251 l.j. Any contract or document regarding a conflict of
3252 interest or possible conflict of interest as provided in ss.
3253 468.4335, 468.436(2)(b)6., and 718.3027(3).
3254 m.k. The notice of any unit owner meeting and the agenda
3255 for the meeting, as required by s. 718.112(2)(d)3., no later
3256 than 14 days before the meeting. The notice must be posted in
3257 plain view on the front page of the website or application, or
3258 on a separate subpage of the website or application labeled
3259 “Notices” which is conspicuously visible and linked from the
3260 front page. The association must also post on its website or
3261 application any document to be considered and voted on by the
3262 owners during the meeting or any document listed on the agenda
3263 at least 7 days before the meeting at which the document or the
3264 information within the document will be considered.
3265 n.l. Notice of any board meeting, the agenda, and any other
3266 document required for the meeting as required by s.
3267 718.112(2)(c), which must be posted no later than the date
3268 required for notice under s. 718.112(2)(c).
3269 o.m. The inspection reports described in ss. 553.899 and
3270 718.301(4)(p) and any other inspection report relating to a
3271 structural or life safety inspection of condominium property.
3272 p.n. The association’s most recent structural integrity
3273 reserve study, if applicable.
3274 q.o. Copies of all building permits issued for ongoing or
3275 planned construction.
3276 r. A copy of all affidavits required by this chapter.
3277 s. A copy of all investment policy statements adopted
3278 pursuant to paragraph (16)(c), and all financial statements
3279 related to the association’s investment of funds under
3280 subsection (16).
3281 3. The association shall ensure that the information and
3282 records described in paragraph (c), which are not allowed to be
3283 accessible to unit owners, are not posted on the association’s
3284 website or application. If protected information or information
3285 restricted from being accessible to unit owners is included in
3286 documents that are required to be posted on the association’s
3287 website or application, the association shall ensure the
3288 information is redacted before posting the documents.
3289 Notwithstanding the foregoing, the association or its agent is
3290 not liable for disclosing information that is protected or
3291 restricted under this paragraph unless such disclosure was made
3292 with a knowing or intentional disregard of the protected or
3293 restricted nature of such information.
3294 4. The failure of the association to post information
3295 required under subparagraph 2. is not in and of itself
3296 sufficient to invalidate any action or decision of the
3297 association’s board or its committees.
3298 Section 11. Section 31 of chapter 2024-244, Laws of
3299 Florida, is amended to read:
3300 Section 31. The amendments made to ss. 718.103(14) and
3301 718.202(3) and 718.407(1), (2), and (6), Florida Statutes, as
3302 created by this act, may not are intended to clarify existing
3303 law and shall apply retroactively and shall only apply to
3304 condominiums for which declarations were initially recorded on
3305 or after October 1, 2024. However, such amendments do not revive
3306 or reinstate any right or interest that has been fully and
3307 finally adjudicated as invalid before October 1, 2024.
3308 Section 12. Subsection (13) is added to section 719.104,
3309 Florida Statutes, to read:
3310 719.104 Cooperatives; access to units; records; financial
3311 reports; assessments; purchase of leases.—
3312 (13) INVESTMENT OF ASSOCIATION FUNDS.—
3313 (a) A board shall, in fulfilling its duty to manage
3314 operating and reserve funds of its association, use best efforts
3315 to make prudent investment decisions that carefully consider
3316 risk and return in an effort to maximize returns on invested
3317 funds.
3318 (b) An association may invest reserve funds in one or any
3319 combination of certificates of deposit or in depository accounts
3320 at a community bank, savings bank, commercial bank, savings and
3321 loan association, or credit union. Upon a majority vote of the
3322 voting interests, an association may invest reserve funds in
3323 investments other than certificates of deposit or depository
3324 accounts at a community bank, savings bank, commercial bank,
3325 savings and loan association, or credit union, provided the
3326 association complies with paragraphs (c)-(g). Notwithstanding
3327 any declaration, only funds identified as reserve funds may be
3328 invested pursuant to paragraphs (c)-(g). Paragraphs (c)-(g) do
3329 not apply to funds invested in one or any combination of
3330 certificates of deposit or depository accounts at a community
3331 bank, savings bank, commercial bank, savings and loan
3332 association, or credit union.
3333 (c) The board shall create an investment committee composed
3334 of at least two board members and two-unit unit members who are
3335 unit owners but not board members. The board shall also adopt
3336 rules for invested funds, including, but not limited to, rules
3337 requiring periodic reviews of any investment manager’s
3338 performance, the development of an investment policy statement,
3339 and that all meetings of the investment committee be recorded
3340 and made part of the official records of the association. The
3341 investment policy statement developed pursuant to this paragraph
3342 must, at a minimum, address risk, liquidity, and benchmark
3343 measurements; authorized classes of investments; authorized
3344 investment mixes; limitations on authority relating to
3345 investment transactions; requirements for projected reserve
3346 expenditures within, at minimum, the next 24 months to be held
3347 in cash or cash equivalents; projected expenditures relating to
3348 an inspection performed pursuant to s. 553.899; and protocols
3349 for proxy response.
3350 (d) The investment committee shall recommend investment
3351 advisers to the board, and the board shall select one of the
3352 recommended investment advisers to provide services to the
3353 association. Such investment advisers must be registered or have
3354 notice filed under s. 517.12. The selected investment adviser
3355 and any representative or association of the investment adviser
3356 may not be related by affinity or consanguinity to, or under
3357 common ownership with, any board member, community management
3358 company, reserve study provider, or a co-owner of a unit with a
3359 board member or investment committee member. The investment
3360 adviser shall comply with the prudent investor rule in s.
3361 518.11. The investment adviser shall act as a fiduciary to the
3362 association in compliance with the standards set forth in the
3363 Employee Retirement Income Security Act of 1974 at 29 U.S.C. s.
3364 1104(a)(1)(A)-(C). In case of conflict with other laws
3365 authorizing investments, the investment and fiduciary standards
3366 set forth in this subsection must prevail. If at any time the
3367 investment committee determines that an investment adviser does
3368 not meet the requirements of this section, the investment
3369 committee must recommend a replacement investment adviser to the
3370 board.
3371 (e) At least once each calendar year, or sooner if a
3372 substantial financial obligation of the association becomes
3373 known to the board, the association must provide the investment
3374 adviser with the association’s investment policy statement, the
3375 most recent reserve study report, the association’s structural
3376 integrity report, and the financial reports prepared pursuant to
3377 subsection (13). If there is no recent reserve study report, the
3378 association must provide the investment adviser with a good
3379 faith estimate disclosing the annual amount of reserve funds
3380 necessary for the association to fund reserves fully for the
3381 life of each reserve component and each component’s
3382 redundancies. The investment adviser shall annually review these
3383 documents and provide the association with a portfolio
3384 allocation model that is suitably structured and prudently
3385 designed to match projected annual reserve fund requirements and
3386 liability, assets, and liquidity requirements. The investment
3387 adviser shall prepare a funding projection for each reserve
3388 component, including any of the component’s redundancies. The
3389 association shall have available at all times a minimum of 24
3390 months of projected reserves in cash or cash equivalents.
3391 (f) Portfolios managed by the investment adviser may
3392 contain any type of investment necessary to meet the objectives
3393 in the investment policy statement; however, portfolios may not
3394 contain stocks, securities, or other obligations that the State
3395 Board of Administration is prohibited from investing in under s.
3396 215.471, s. 215.4725, or s. 215.473 or that state agencies are
3397 prohibited from investing in under s. 215.472, as determined by
3398 the investment adviser. Any funds invested by the investment
3399 adviser must be held in third-party custodial accounts that are
3400 subject to insurance coverage by the Securities Investor
3401 Protection Corporation in an amount equal to or greater than the
3402 invested amount. The investment adviser may withdraw investment
3403 fees, expenses, and commissions from invested funds.
3404 (g) The investment adviser shall:
3405 1. Annually provide the association with a written
3406 certification of compliance with this section and a list of
3407 stocks, securities, and other obligations that are prohibited
3408 from being in association portfolios under paragraph (f); and
3409 2. Submit monthly, quarterly, and annual reports to the
3410 association which are prepared in accordance with established
3411 financial industry standards and in accordance with chapter 517.
3412 (h) Any principal, earnings, or interest managed under this
3413 subsection must be available at no cost or charge to the
3414 association within 15 business days after delivery of the
3415 association’s written or electronic request.
3416 (i) Unallocated income earned on reserve fund investments
3417 may be spent only on capital expenditures, planned maintenance,
3418 structural repairs, or other items for which the reserve
3419 accounts have been established. Any surplus of funds that
3420 exceeds the amount required to maintain reasonably funded
3421 reserves must be managed pursuant to s. 718.115.
3422 Section 13. Paragraphs (j) and (k) of subsection (1) of
3423 section 719.106, Florida Statutes, are amended to read:
3424 719.106 Bylaws; cooperative ownership.—
3425 (1) MANDATORY PROVISIONS.—The bylaws or other cooperative
3426 documents shall provide for the following, and if they do not,
3427 they shall be deemed to include the following:
3428 (j) Annual budget.—
3429 1. The proposed annual budget of common expenses must be
3430 detailed and must show the amounts budgeted by accounts and
3431 expense classifications, including, if applicable, but not
3432 limited to, those expenses listed in s. 719.504(20). The board
3433 of administration shall adopt the annual budget at least 14 days
3434 before the start of the association’s fiscal year. In the event
3435 that the board fails to timely adopt the annual budget a second
3436 time, it is deemed a minor violation and the prior year’s budget
3437 shall continue in effect until a new budget is adopted.
3438 2.a. In addition to annual operating expenses, the budget
3439 must include reserve accounts for capital expenditures and
3440 deferred maintenance. These accounts must include, but not be
3441 limited to, roof replacement, building painting, and pavement
3442 resurfacing, regardless of the amount of deferred maintenance
3443 expense or replacement cost, and for any other items for which
3444 the deferred maintenance expense or replacement cost exceeds
3445 $25,000 or the inflation-adjusted amount determined by the
3446 division under subparagraph 5., whichever amount is greater
3447 $10,000. The amount to be reserved must be computed by means of
3448 a formula which is based upon estimated remaining useful life
3449 and estimated replacement cost or deferred maintenance expense
3450 of the reserve item. In a budget adopted by an association that
3451 is required to obtain a structural integrity reserve study,
3452 reserves must be maintained for the items identified in
3453 paragraph (k) for which the association is responsible pursuant
3454 to the declaration, and the reserve amount for such items must
3455 be based on the findings and recommendations of the
3456 association’s most recent structural integrity reserve study.
3457 With respect to items for which an estimate of useful life is
3458 not readily ascertainable or with an estimated remaining useful
3459 life of greater than 25 years, an association is not required to
3460 reserve replacement costs for such items, but an association
3461 must reserve the amount of deferred maintenance expense, if any,
3462 which is recommended by the structural integrity reserve study
3463 for such items. The association may adjust replacement reserve
3464 assessments annually to take into account an inflation
3465 adjustment and any changes in estimates or extension of the
3466 useful life of a reserve item caused by deferred maintenance.
3467 b. The members of a unit-owner-controlled association may
3468 determine, by a majority vote of the total voting interests of
3469 the association, for a fiscal year to provide no reserves or
3470 reserves less adequate than required by this subsection. Before
3471 turnover of control of an association by a developer to unit
3472 owners other than a developer under s. 719.301, the developer
3473 controlled association may not vote to waive the reserves or
3474 reduce funding of the reserves.
3475 c. For a budget adopted on or after December 31, 2024, a
3476 unit-owner-controlled association that must obtain a structural
3477 integrity reserve study may not determine to provide no reserves
3478 or reserves less adequate than required by this paragraph for
3479 items listed in paragraph (k). If a meeting of the unit owners
3480 has been called to determine to provide no reserves, or reserves
3481 less adequate than required, and such result is not attained or
3482 a quorum is not attained, the reserves as included in the budget
3483 shall go into effect.
3484 d. If the local building official as defined in s. 468.603,
3485 determines that the entire cooperative building is uninhabitable
3486 due to a natural emergency as defined in s. 252.34, the board
3487 may pause the contribution to its reserves or reduce reserve
3488 funding until the local building official determines that the
3489 cooperative building is habitable. Any reserve account funds
3490 held by the association may be expended, pursuant to the board’s
3491 determination, to make the cooperative building and its
3492 structures habitable. Upon the determination by the local
3493 building official that the cooperative building is habitable,
3494 the association must immediately resume contributing funds to
3495 its reserves.
3496 e. Reserves for the items listed in paragraph (g) may be
3497 funded by regular assessments, special assessments, lines of
3498 credit, or loans.
3499 3. A unit-owner-controlled association that must have a
3500 structural reserve study may secure a line of credit or a loan
3501 to fund capital expenses required by a milestone inspection
3502 under s. 553.899 or a structural integrity reserve study. Any
3503 line of credit or loan under this subparagraph requires the
3504 approval of a majority vote of the total voting interests of the
3505 association. The lines of credit or loans must be sufficient to
3506 fund the cumulative amount of any previously waived or unfunded
3507 portion of the reserve funding amount required by this paragraph
3508 and the most recent structural integrity reserve study. Funding
3509 from the line of credit or loans must be immediately available
3510 for access by the board to fund required repair, maintenance, or
3511 replacement expenses without further approval by the members of
3512 the association. Any lines of credit or loans secured under this
3513 paragraph must be included in the financial report required
3514 under s. 719.104(4).
3515 a. For a budget adopted on or before December 31, 2028, if
3516 the association has completed a milestone inspection pursuant to
3517 s. 553.899 within the previous 2 calendar years, the board, upon
3518 the approval of a majority of the total voting interests of the
3519 association, may temporarily pause, for a period of no more than
3520 2 consecutive annual budgets, reserve fund contributions or
3521 reduce the amount of reserve funding for the purpose of funding
3522 repairs recommended by the milestone inspection. This sub
3523 subparagraph does not apply to a developer-controlled
3524 association and an association in which the nondeveloper unit
3525 owners have been in control for less than 1 year.
3526 b. An association that has paused reserve contributions
3527 under this sub-subparagraph a. must have a structural integrity
3528 reserve study performed before the continuation of reserve
3529 contributions in order to determine the association’s reserve
3530 funding needs and to recommend a reserve funding plan.
3531 4.3. Reserve funds and any interest accruing thereon shall
3532 remain in the reserve account or accounts, and shall be used
3533 only for authorized reserve expenditures unless their use for
3534 other purposes is approved in advance by a vote of the majority
3535 of the total voting interests of the association. Before
3536 turnover of control of an association by a developer to unit
3537 owners other than the developer under s. 719.301, the developer
3538 may not vote to use reserves for purposes other than that for
3539 which they were intended. For a budget adopted on or after
3540 December 31, 2024, members of a unit-owner-controlled
3541 association that must obtain a structural integrity reserve
3542 study may not vote to use reserve funds, or any interest
3543 accruing thereon, for purposes other than the replacement or
3544 deferred maintenance costs of the components listed in paragraph
3545 (k). A vote of the members is not required for the board to
3546 change the accounting method for reserves to a pooling
3547 accounting method or a straight-line accounting method.
3548 5. The division shall annually adjust for inflation, based
3549 on the Consumer Price Index for All Urban Consumers released in
3550 January of each year, the minimum $25,000 threshold amount for
3551 required reserves. By February 1, 2026, and annually thereafter,
3552 the division must conspicuously post on its website the
3553 inflation-adjusted minimum threshold amount for required
3554 reserves.
3555 (k) Structural integrity reserve study.—
3556 1. A residential cooperative association must have a
3557 structural integrity reserve study completed at least every 10
3558 years for each building on the cooperative property that is
3559 three stories or higher in height, as determined by the Florida
3560 Building Code, that includes, at a minimum, a study of the
3561 following items as related to the structural integrity and
3562 safety of the building:
3563 a. Roof.
3564 b. Structure, including load-bearing walls and other
3565 primary structural members and primary structural systems as
3566 those terms are defined in s. 627.706.
3567 c. Fireproofing and fire protection systems.
3568 d. Plumbing.
3569 e. Electrical systems.
3570 f. Waterproofing and exterior painting.
3571 g. Windows and exterior doors.
3572 h. Any other item that has a deferred maintenance expense
3573 or replacement cost that exceeds $25,000 or the inflation
3574 adjusted amount determined by the division under subparagraph
3575 (j)5., whichever is greater, $10,000 and the failure to replace
3576 or maintain such item negatively affects the items listed in
3577 sub-subparagraphs a.-g., as determined by the visual inspection
3578 portion of the structural integrity reserve study.
3579 2. A structural integrity reserve study is based on a
3580 visual inspection of the cooperative property.
3581 3.a. A structural integrity reserve study may be performed
3582 by any person qualified to perform such study. However,
3583 including the visual inspection portion of the structural
3584 integrity reserve study, must be performed or verified by an
3585 engineer licensed under chapter 471, an architect licensed under
3586 chapter 481, or a person certified as a reserve specialist or
3587 professional reserve analyst by the Community Associations
3588 Institute or the Association of Professional Reserve Analysts.
3589 b. Any design professional as defined in s. 558.002(7) or
3590 contractor licensed under chapter 489 who bids to perform a
3591 structural integrity reserve study must disclose in writing to
3592 the association his or her intent to bid on any services related
3593 to any maintenance, repair, or replacement that may be
3594 recommended by the structural integrity reserve study. Any
3595 design professional as defined in s. 558.002 or contractor
3596 licensed under chapter 489 who submits a bid to the association
3597 for performing any services recommended by the structural
3598 integrity reserve study may not have an interest, directly or
3599 indirectly, in the firm or entity providing the association’s
3600 structural integrity reserve study or be a relative of any
3601 person having a direct or indirect interest in such firm, unless
3602 such relationship is disclosed to the association in writing. As
3603 used in this section, the term “relative” means a relative
3604 within the third degree of consanguinity by blood or marriage. A
3605 contract for services is voidable and terminates upon the
3606 association filing a written notice terminating the contract if
3607 the design professional or licensed contractor failed to provide
3608 the written disclosure of the relationship required under this
3609 paragraph. A design professional or licensed contractor may be
3610 subject to discipline under the applicable practice act for his
3611 or her profession for failure to provide the written disclosure
3612 of the relationship required under this subparagraph.
3613 4.a.3. At a minimum, a structural integrity reserve study
3614 must identify each item of the cooperative property being
3615 visually inspected, state the estimated remaining useful life
3616 and the estimated replacement cost or deferred maintenance
3617 expense of each item of the cooperative property being visually
3618 inspected, and provide a reserve funding schedule with a
3619 recommended annual reserve amount that achieves the estimated
3620 replacement cost or deferred maintenance expense of each item of
3621 cooperative property being visually inspected by the end of the
3622 estimated remaining useful life of the item. The structural
3623 integrity reserve study may recommend that reserves do not need
3624 to be maintained for any item for which an estimate of useful
3625 life and an estimate of replacement cost cannot be determined,
3626 or the study may recommend a deferred maintenance expense amount
3627 for such item. At a minimum, the structural integrity reserve
3628 study must include a recommendation for a reserve funding
3629 schedule based on a baseline funding plan that provides a
3630 reserve funding goal in which the reserve funding for each
3631 budget year is sufficient to maintain the reserve cash balance
3632 above zero. The study may recommend other types of reserve
3633 funding schedules, provided that each recommended schedule is
3634 sufficient to meet the association’s maintenance obligation.
3635 b. The structural integrity reserve study may recommend
3636 that reserves for replacement costs do not need to be maintained
3637 for any item with an estimated remaining useful life of greater
3638 than 25 years, but the study may recommend a deferred
3639 maintenance expense amount for such item. If the structural
3640 integrity reserve study recommends reserves for any item for
3641 which reserves are not required under this paragraph, the amount
3642 of the recommended reserves for such item must be separately
3643 identified in the structural integrity reserve study as an item
3644 for which reserves are not required under this paragraph.
3645 c. The structural integrity reserve study must take into
3646 consideration the funding method or methods used by the
3647 association to fund its maintenance and reserve funding
3648 obligations through regular assessments, special assessments,
3649 lines of credit, or loans. If the structural integrity reserve
3650 study is performed before the association has approved a special
3651 assessment or secured a line of credit or a loan, the structural
3652 integrity reserve study must be updated to reflect the funding
3653 method selected by the association and its effect on the reserve
3654 funding schedule, including any anticipated change in the amount
3655 of regular assessments. The structural integrity reserve study
3656 may be updated to reflect any changes to the useful life of the
3657 reserve items after such items are repaired or replaced, and the
3658 effect such repair or replacement will have on the reserve
3659 funding schedule. The association must obtain an updated
3660 structural integrity reserve study before adopting any budget in
3661 which the reserve funding from regular assessments, special
3662 assessments, lines of credit, or loans do not align with the
3663 funding plan from the most recent version of the structural
3664 integrity reserve study.
3665 5.4. This paragraph does not apply to buildings less than
3666 three stories in height; single-family, two-family, or three
3667 family dwellings with three or fewer habitable stories above
3668 ground; any portion or component of a building that has not been
3669 submitted to the cooperative form of ownership; or any portion
3670 or component of a building that is maintained by a party other
3671 than the association.
3672 6.5. Before a developer turns over control of an
3673 association to unit owners other than the developer, the
3674 developer must have a turnover inspection report in compliance
3675 with s. 719.301(4)(p) and (q) for each building on the
3676 cooperative property that is three stories or higher in height.
3677 7.6. Associations existing on or before July 1, 2022, which
3678 are controlled by unit owners other than the developer, must
3679 have a structural integrity reserve study completed by December
3680 31, 2024, for each building on the cooperative property that is
3681 three stories or higher in height. An association that is
3682 required to complete a milestone inspection on or before
3683 December 31, 2026, in accordance with s. 553.899 may complete
3684 the structural integrity reserve study simultaneously with the
3685 milestone inspection. In no event may the structural integrity
3686 reserve study be completed after December 31, 2026.
3687 8.7. If the milestone inspection required by s. 553.899, or
3688 an inspection completed for a similar local requirement, was
3689 performed within the past 5 years and meets the requirements of
3690 this paragraph, such inspection may be used in place of the
3691 visual inspection portion of the structural integrity reserve
3692 study.
3693 9. If the association completes a milestone inspection
3694 required by s. 553.899, or an inspection completed for a similar
3695 local requirement, the association may delay performance of a
3696 required structural integrity reserve study for no more than the
3697 2 consecutive budget years immediately following the milestone
3698 inspection in order to allow the association to focus its
3699 financial resources on completing the repair and maintenance
3700 recommendations of the milestone inspection.
3701 10.8. If the officers or directors of an association
3702 willfully and knowingly fail to complete a structural integrity
3703 reserve study pursuant to this paragraph, such failure is a
3704 breach of an officer’s and director’s fiduciary relationship to
3705 the unit owners under s. 719.104(9). An officer or a director of
3706 the association must sign an affidavit acknowledging receipt of
3707 the completed structural integrity reserve study.
3708 11.9. Within 45 days after receiving the structural
3709 integrity reserve study, the association must distribute a copy
3710 of the study to each unit owner or deliver to each unit owner a
3711 notice that the completed study is available for inspection and
3712 copying upon a written request. Distribution of a copy of the
3713 study or notice must be made by United States mail or personal
3714 delivery at the mailing address, property address, or any other
3715 address of the owner provided to fulfill the association’s
3716 notice requirements under this chapter, or by electronic
3717 transmission to the e-mail address or facsimile number provided
3718 to fulfill the association’s notice requirements to unit owners
3719 who previously consented to receive notice by electronic
3720 transmission.
3721 12.10. Within 45 days after receiving the structural
3722 integrity reserve study, the association must provide the
3723 division with a statement indicating that the study was
3724 completed and that the association provided or made available
3725 such study to each unit owner in accordance with this section.
3726 Such statement must be provided to the division in the manner
3727 established by the division using a form posted on the
3728 division’s website.
3729 13. The division shall adopt by rule the form for the
3730 structural integrity reserve study in coordination with the
3731 Florida Building Commission.
3732 Section 14. Subsection (3) of section 719.501, Florida
3733 Statutes, is amended, paragraph (c) is added to subsection (2)
3734 of that section, and subsection (1) of that section is
3735 reenacted, to read:
3736 719.501 Powers and duties of Division of Florida
3737 Condominiums, Timeshares, and Mobile Homes.—
3738 (1) The Division of Florida Condominiums, Timeshares, and
3739 Mobile Homes of the Department of Business and Professional
3740 Regulation, referred to as the “division” in this part, in
3741 addition to other powers and duties prescribed by chapter 718,
3742 has the power to enforce and ensure compliance with this chapter
3743 and adopted rules relating to the development, construction,
3744 sale, lease, ownership, operation, and management of residential
3745 cooperative units; complaints related to the procedural
3746 completion of the structural integrity reserve studies under s.
3747 719.106(1)(k); and complaints related to the procedural
3748 completion of milestone inspections under s. 553.899. In
3749 performing its duties, the division shall have the following
3750 powers and duties:
3751 (a) The division may make necessary public or private
3752 investigations within or outside this state to determine whether
3753 any person has violated this chapter or any rule or order
3754 hereunder, to aid in the enforcement of this chapter, or to aid
3755 in the adoption of rules or forms hereunder.
3756 (b) The division may require or permit any person to file a
3757 statement in writing, under oath or otherwise, as the division
3758 determines, as to the facts and circumstances concerning a
3759 matter to be investigated.
3760 (c) For the purpose of any investigation under this
3761 chapter, the division director or any officer or employee
3762 designated by the division director may administer oaths or
3763 affirmations, subpoena witnesses and compel their attendance,
3764 take evidence, and require the production of any matter which is
3765 relevant to the investigation, including the existence,
3766 description, nature, custody, condition, and location of any
3767 books, documents, or other tangible things and the identity and
3768 location of persons having knowledge of relevant facts or any
3769 other matter reasonably calculated to lead to the discovery of
3770 material evidence. Upon failure by a person to obey a subpoena
3771 or to answer questions propounded by the investigating officer
3772 and upon reasonable notice to all persons affected thereby, the
3773 division may apply to the circuit court for an order compelling
3774 compliance.
3775 (d) Notwithstanding any remedies available to unit owners
3776 and associations, if the division has reasonable cause to
3777 believe that a violation of any provision of this chapter or
3778 related rule has occurred, the division may institute
3779 enforcement proceedings in its own name against a developer,
3780 association, officer, or member of the board, or its assignees
3781 or agents, as follows:
3782 1. The division may permit a person whose conduct or
3783 actions may be under investigation to waive formal proceedings
3784 and enter into a consent proceeding whereby orders, rules, or
3785 letters of censure or warning, whether formal or informal, may
3786 be entered against the person.
3787 2. The division may issue an order requiring the developer,
3788 association, officer, or member of the board, or its assignees
3789 or agents, to cease and desist from the unlawful practice and
3790 take such affirmative action as in the judgment of the division
3791 will carry out the purposes of this chapter. Such affirmative
3792 action may include, but is not limited to, an order requiring a
3793 developer to pay moneys determined to be owed to a condominium
3794 association.
3795 3. The division may bring an action in circuit court on
3796 behalf of a class of unit owners, lessees, or purchasers for
3797 declaratory relief, injunctive relief, or restitution.
3798 4. The division may impose a civil penalty against a
3799 developer or association, or its assignees or agents, for any
3800 violation of this chapter or related rule. The division may
3801 impose a civil penalty individually against any officer or board
3802 member who willfully and knowingly violates a provision of this
3803 chapter, a rule adopted pursuant to this chapter, or a final
3804 order of the division. The term “willfully and knowingly” means
3805 that the division informed the officer or board member that his
3806 or her action or intended action violates this chapter, a rule
3807 adopted under this chapter, or a final order of the division,
3808 and that the officer or board member refused to comply with the
3809 requirements of this chapter, a rule adopted under this chapter,
3810 or a final order of the division. The division, prior to
3811 initiating formal agency action under chapter 120, shall afford
3812 the officer or board member an opportunity to voluntarily comply
3813 with this chapter, a rule adopted under this chapter, or a final
3814 order of the division. An officer or board member who complies
3815 within 10 days is not subject to a civil penalty. A penalty may
3816 be imposed on the basis of each day of continuing violation, but
3817 in no event shall the penalty for any offense exceed $5,000. The
3818 division shall adopt, by rule, penalty guidelines applicable to
3819 possible violations or to categories of violations of this
3820 chapter or rules adopted by the division. The guidelines must
3821 specify a meaningful range of civil penalties for each such
3822 violation of the statute and rules and must be based upon the
3823 harm caused by the violation, upon the repetition of the
3824 violation, and upon such other factors deemed relevant by the
3825 division. For example, the division may consider whether the
3826 violations were committed by a developer or owner-controlled
3827 association, the size of the association, and other factors. The
3828 guidelines must designate the possible mitigating or aggravating
3829 circumstances that justify a departure from the range of
3830 penalties provided by the rules. It is the legislative intent
3831 that minor violations be distinguished from those which endanger
3832 the health, safety, or welfare of the cooperative residents or
3833 other persons and that such guidelines provide reasonable and
3834 meaningful notice to the public of likely penalties that may be
3835 imposed for proscribed conduct. This subsection does not limit
3836 the ability of the division to informally dispose of
3837 administrative actions or complaints by stipulation, agreed
3838 settlement, or consent order. All amounts collected shall be
3839 deposited with the Chief Financial Officer to the credit of the
3840 Division of Florida Condominiums, Timeshares, and Mobile Homes
3841 Trust Fund. If a developer fails to pay the civil penalty, the
3842 division shall thereupon issue an order directing that such
3843 developer cease and desist from further operation until such
3844 time as the civil penalty is paid or may pursue enforcement of
3845 the penalty in a court of competent jurisdiction. If an
3846 association fails to pay the civil penalty, the division shall
3847 thereupon pursue enforcement in a court of competent
3848 jurisdiction, and the order imposing the civil penalty or the
3849 cease and desist order shall not become effective until 20 days
3850 after the date of such order. Any action commenced by the
3851 division shall be brought in the county in which the division
3852 has its executive offices or in the county where the violation
3853 occurred.
3854 (e) The division may prepare and disseminate a prospectus
3855 and other information to assist prospective owners, purchasers,
3856 lessees, and developers of residential cooperatives in assessing
3857 the rights, privileges, and duties pertaining thereto.
3858 (f) The division has authority to adopt rules pursuant to
3859 ss. 120.536(1) and 120.54 to implement and enforce the
3860 provisions of this chapter.
3861 (g) The division shall establish procedures for providing
3862 notice to an association when the division is considering the
3863 issuance of a declaratory statement with respect to the
3864 cooperative documents governing such cooperative community.
3865 (h) The division shall furnish each association which pays
3866 the fees required by paragraph (2)(a) a copy of this act,
3867 subsequent changes to this act on an annual basis, an amended
3868 version of this act as it becomes available from the Secretary
3869 of State’s office on a biennial basis, and the rules adopted
3870 thereto on an annual basis.
3871 (i) The division shall annually provide each association
3872 with a summary of declaratory statements and formal legal
3873 opinions relating to the operations of cooperatives which were
3874 rendered by the division during the previous year.
3875 (j) The division shall adopt uniform accounting principles,
3876 policies, and standards to be used by all associations in the
3877 preparation and presentation of all financial statements
3878 required by this chapter. The principles, policies, and
3879 standards shall take into consideration the size of the
3880 association and the total revenue collected by the association.
3881 (k) The division shall provide training and educational
3882 programs for cooperative association board members and unit
3883 owners. The training may, in the division’s discretion, include
3884 web-based electronic media and live training and seminars in
3885 various locations throughout the state. The division may review
3886 and approve education and training programs for board members
3887 and unit owners offered by providers and shall maintain a
3888 current list of approved programs and providers and make such
3889 list available to board members and unit owners in a reasonable
3890 and cost-effective manner.
3891 (l) The division shall maintain a toll-free telephone
3892 number accessible to cooperative unit owners.
3893 (m) When a complaint is made to the division, the division
3894 shall conduct its inquiry with reasonable dispatch and with due
3895 regard to the interests of the affected parties. Within 30 days
3896 after receipt of a complaint, the division shall acknowledge the
3897 complaint in writing and notify the complainant whether the
3898 complaint is within the jurisdiction of the division and whether
3899 additional information is needed by the division from the
3900 complainant. The division shall conduct its investigation and
3901 shall, within 90 days after receipt of the original complaint or
3902 timely requested additional information, take action upon the
3903 complaint. However, the failure to complete the investigation
3904 within 90 days does not prevent the division from continuing the
3905 investigation, accepting or considering evidence obtained or
3906 received after 90 days, or taking administrative action if
3907 reasonable cause exists to believe that a violation of this
3908 chapter or a rule of the division has occurred. If an
3909 investigation is not completed within the time limits
3910 established in this paragraph, the division shall, on a monthly
3911 basis, notify the complainant in writing of the status of the
3912 investigation. When reporting its action to the complainant, the
3913 division shall inform the complainant of any right to a hearing
3914 pursuant to ss. 120.569 and 120.57.
3915 (n) The division shall develop a program to certify both
3916 volunteer and paid mediators to provide mediation of cooperative
3917 disputes. The division shall provide, upon request, a list of
3918 such mediators to any association, unit owner, or other
3919 participant in arbitration proceedings under s. 718.1255
3920 requesting a copy of the list. The division shall include on the
3921 list of voluntary mediators only persons who have received at
3922 least 20 hours of training in mediation techniques or have
3923 mediated at least 20 disputes. In order to become initially
3924 certified by the division, paid mediators must be certified by
3925 the Supreme Court to mediate court cases in county or circuit
3926 courts. However, the division may adopt, by rule, additional
3927 factors for the certification of paid mediators, which factors
3928 must be related to experience, education, or background. Any
3929 person initially certified as a paid mediator by the division
3930 must, in order to continue to be certified, comply with the
3931 factors or requirements imposed by rules adopted by the
3932 division.
3933 (2)
3934 (c) A cooperative association shall create and maintain an
3935 online account with the division, as required in subsection (3).
3936 (3) On or before October 1, 2025, all cooperative
3937 associations shall create and maintain an online account with
3938 the division and provide information requested by the division
3939 in an electronic format determined by the division. The division
3940 shall adopt rules to implement this subsection. The division may
3941 require cooperative associations to provide such information no
3942 more than once per year, except that the division may require
3943 cooperative associations to update their contact information in
3944 paragraph (a) within 30 days after any change. The division
3945 shall provide a cooperative association at least a 45-day notice
3946 of any requirement to provide any required information after the
3947 cooperative association creates an online account. The
3948 information that the division may require associations to
3949 provide is limited to:
3950 (a) The contact information for the association that
3951 includes all of the following:
3952 1. The name of the association.
3953 2. The physical address of the cooperative property.
3954 3. The mailing address and county of the association.
3955 4. The e-mail address and telephone number for the
3956 association.
3957 5. The name and board title for each member of the
3958 association’s board.
3959 6. The name and contact information of the association’s
3960 community association manager or community association
3961 management firm, if applicable.
3962 7. The hyperlink or website address of the association’s
3963 website, if applicable.
3964 (b) The total number of buildings and for each building in
3965 the association:
3966 1. The total number of stories of each building, including
3967 both habitable and uninhabitable stories.
3968 2. The total number of units.
3969 3. The age of each building based on the certificate of
3970 occupancy.
3971 4. Any construction commenced on the common elements within
3972 the previous calendar year.
3973 (c) The association’s assessments, including the:
3974 1. Amount of assessment or special assessment by unit type,
3975 including reserves.
3976 2. Purpose of the assessment or special assessment.
3977 3. Name of the financial institution or institutions with
3978 which the association maintains accounts.
3979 (d) A copy of any structural integrity reserve study and
3980 any associated materials requested by the department. The
3981 association must provide such materials within 5 business days
3982 after such request, in a manner prescribed by the department.
3983 (a) On or before January 1, 2023, cooperative associations
3984 existing on or before July 1, 2022, must provide the following
3985 information to the division in writing, by e-mail, United States
3986 Postal Service, commercial delivery service, or hand delivery,
3987 at a physical address or e-mail address provided by the division
3988 and on a form posted on the division’s website:
3989 1. The number of buildings on the cooperative property that
3990 are three stories or higher in height.
3991 2. The total number of units in all such buildings.
3992 3. The addresses of all such buildings.
3993 4. The counties in which all such buildings are located.
3994 (b) The division must compile a list of the number of
3995 buildings on cooperative property that are three stories or
3996 higher in height, which is searchable by county, and must post
3997 the list on the division’s website. This list must include all
3998 of the following information:
3999 1. The name of each association with buildings on the
4000 cooperative property that are three stories or higher in height.
4001 2. The number of such buildings on each association’s
4002 property.
4003 3. The addresses of all such buildings.
4004 4. The counties in which all such buildings are located.
4005 (c) An association must provide an update in writing to the
4006 division if there are any changes to the information in the list
4007 under paragraph (b) within 6 months after the change.
4008 Section 15. Paragraph (d) of subsection (1) and paragraphs
4009 (c) and (d) of subsection (2) of section 719.503, Florida
4010 Statutes, are amended, to read:
4011 719.503 Disclosure prior to sale.—
4012 (1) DEVELOPER DISCLOSURE.—
4013 (d) Milestone inspection, turnover inspection report, or
4014 structural integrity reserve study.—If the association is
4015 required to have completed a milestone inspection as described
4016 in s. 553.899, a turnover inspection report for a turnover
4017 inspection performed on or after July 1, 2023, or a structural
4018 integrity reserve study, and the association has not completed
4019 the milestone inspection, the turnover inspection report, or the
4020 structural integrity reserve study, each contract entered into
4021 after December 31, 2024, for the sale of a residential unit
4022 shall contain in conspicuous type a statement indicating that
4023 the association is required to have a milestone inspection, a
4024 turnover inspection report, or a structural integrity reserve
4025 study and has not completed such inspection, report, or study,
4026 as appropriate. If the association is not required to have a
4027 milestone inspection as described in s. 553.899 or a structural
4028 integrity reserve study, each contract entered into after
4029 December 31, 2024, for the sale of a residential unit shall
4030 contain in conspicuous type a statement indicating that the
4031 association is not required to have a milestone inspection or a
4032 structural integrity reserve study, as appropriate. If the
4033 association has completed a milestone inspection as described in
4034 s. 553.899, a turnover inspection report for a turnover
4035 inspection performed on or after July 1, 2023, or a structural
4036 integrity reserve study, each contract entered into after
4037 December 31, 2024, for the sale of a residential unit shall
4038 contain in conspicuous type:
4039 1. A clause which states: THE BUYER HEREBY ACKNOWLEDGES
4040 THAT BUYER HAS BEEN PROVIDED A CURRENT COPY OF THE INSPECTOR
4041 PREPARED SUMMARY OF THE MILESTONE INSPECTION REPORT AS DESCRIBED
4042 IN SECTION 553.899, FLORIDA STATUTES, IF APPLICABLE; A COPY OF
4043 THE TURNOVER INSPECTION REPORT DESCRIBED IN SECTION
4044 719.301(4)(p) AND (q), FLORIDA STATUTES, IF APPLICABLE; AND A
4045 COPY OF THE ASSOCIATION’S MOST RECENT STRUCTURAL INTEGRITY
4046 RESERVE STUDY DESCRIBED IN SECTIONS 719.103(24) AND
4047 719.106(1)(k), FLORIDA STATUTES, IF APPLICABLE, MORE THAN 15
4048 DAYS, EXCLUDING SATURDAYS, SUNDAYS, AND LEGAL HOLIDAYS, BEFORE
4049 PRIOR TO EXECUTION OF THIS CONTRACT; and
4050 2. A clause which states: THIS AGREEMENT IS VOIDABLE BY
4051 BUYER BY DELIVERING WRITTEN NOTICE OF THE BUYER’S INTENTION TO
4052 CANCEL WITHIN 15 DAYS, EXCLUDING SATURDAYS, SUNDAYS, AND LEGAL
4053 HOLIDAYS, AFTER THE DATE OF EXECUTION OF THIS AGREEMENT BY THE
4054 BUYER AND RECEIPT BY BUYER OF A CURRENT COPY OF THE INSPECTOR
4055 PREPARED SUMMARY OF THE MILESTONE INSPECTION REPORT AS DESCRIBED
4056 IN SECTION 553.899, FLORIDA STATUTES, IF APPLICABLE; A COPY OF
4057 THE TURNOVER INSPECTION REPORT DESCRIBED IN SECTION
4058 719.301(4)(p) AND (q), FLORIDA STATUTES, IF APPLICABLE; AND A
4059 COPY OF THE ASSOCIATION’S MOST RECENT STRUCTURAL INTEGRITY
4060 RESERVE STUDY DESCRIBED IN SECTIONS 719.103(24) AND
4061 719.106(1)(k), FLORIDA STATUTES, IF APPLICABLE. ANY PURPORTED
4062 WAIVER OF THESE VOIDABILITY RIGHTS SHALL BE OF NO EFFECT. BUYER
4063 MAY EXTEND THE TIME FOR CLOSING FOR A PERIOD OF NOT MORE THAN 15
4064 DAYS, EXCLUDING SATURDAYS, SUNDAYS, AND LEGAL HOLIDAYS, AFTER
4065 THE BUYER RECEIVES A CURRENT COPY OF THE INSPECTOR-PREPARED
4066 SUMMARY OF THE MILESTONE INSPECTION REPORT AS DESCRIBED IN
4067 SECTION 553.899, FLORIDA STATUTES; A COPY OF THE TURNOVER
4068 INSPECTION REPORT DESCRIBED IN SECTION 719.301(4)(p) AND (q),
4069 FLORIDA STATUTES; OR A COPY OF THE ASSOCIATION’S MOST RECENT
4070 STRUCTURAL INTEGRITY RESERVE STUDY DESCRIBED IN SECTIONS
4071 719.103(24) AND 719.106(1)(k), FLORIDA STATUTES, IF REQUESTED IN
4072 WRITING. BUYER’S RIGHT TO VOID THIS AGREEMENT SHALL TERMINATE AT
4073 CLOSING.
4074
4075 A contract that does not conform to the requirements of this
4076 paragraph is voidable at the option of the purchaser before
4077 prior to closing.
4078 (2) NONDEVELOPER DISCLOSURE.—
4079 (c) Each contract entered into after July 1, 1992, for the
4080 resale of an interest in a cooperative shall contain in
4081 conspicuous type either:
4082 1. A clause which states: THE BUYER HEREBY ACKNOWLEDGES
4083 THAT BUYER HAS BEEN PROVIDED A CURRENT COPY OF THE ARTICLES OF
4084 INCORPORATION OF THE ASSOCIATION, BYLAWS, RULES OF THE
4085 ASSOCIATION, AND THE QUESTION AND ANSWER SHEET MORE THAN 7 3
4086 DAYS, EXCLUDING SATURDAYS, SUNDAYS, AND LEGAL HOLIDAYS, BEFORE
4087 PRIOR TO EXECUTION OF THIS CONTRACT; or
4088 2. A clause which states: THIS AGREEMENT IS VOIDABLE BY
4089 BUYER BY DELIVERING WRITTEN NOTICE OF THE BUYER’S INTENTION TO
4090 CANCEL WITHIN 7 3 DAYS, EXCLUDING SATURDAYS, SUNDAYS, AND LEGAL
4091 HOLIDAYS, AFTER THE DATE OF EXECUTION OF THIS AGREEMENT BY THE
4092 BUYER AND RECEIPT BY BUYER OF A CURRENT COPY OF THE ARTICLES OF
4093 INCORPORATION, BYLAWS, AND RULES OF THE ASSOCIATION, AND
4094 QUESTION AND ANSWER SHEET, IF SO REQUESTED IN WRITING. ANY
4095 PURPORTED WAIVER OF THESE VOIDABILITY RIGHTS SHALL BE OF NO
4096 EFFECT. BUYER MAY EXTEND THE TIME FOR CLOSING FOR A PERIOD OF
4097 NOT MORE THAN 7 3 DAYS, EXCLUDING SATURDAYS, SUNDAYS, AND LEGAL
4098 HOLIDAYS, AFTER THE BUYER RECEIVES THE ARTICLES OF
4099 INCORPORATION, BYLAWS, RULES, AND QUESTION AND ANSWER SHEET, IF
4100 REQUESTED IN WRITING. BUYER’S RIGHT TO VOID THIS AGREEMENT SHALL
4101 TERMINATE AT CLOSING.
4102
4103 A contract that does not conform to the requirements of this
4104 paragraph is voidable at the option of the purchaser before
4105 prior to closing.
4106 (d) If the association is required to have completed a
4107 milestone inspection as described in s. 553.899, a turnover
4108 inspection report for a turnover inspection performed on or
4109 after July 1, 2023, or a structural integrity reserve study, and
4110 the association has not completed the milestone inspection, the
4111 turnover inspection report, or the structural integrity reserve
4112 study, each contract entered into after December 31, 2024, for
4113 the sale of a residential unit shall contain in conspicuous type
4114 a statement indicating that the association is required to have
4115 a milestone inspection, a turnover inspection report, or a
4116 structural integrity reserve study and has not completed such
4117 inspection, report, or study, as appropriate. If the association
4118 is not required to have a milestone inspection as described in
4119 s. 553.899 or a structural integrity reserve study, each
4120 contract entered into after December 31, 2024, for the sale of a
4121 residential unit shall contain in conspicuous type a statement
4122 indicating that the association is not required to have a
4123 milestone inspection or a structural integrity reserve study, as
4124 appropriate. If the association has completed a milestone
4125 inspection as described in s. 553.899, a turnover inspection
4126 report for a turnover inspection performed on or after July 1,
4127 2023, or a structural integrity reserve study, each contract
4128 entered into after December 31, 2024, for the resale of a
4129 residential unit shall contain in conspicuous type:
4130 1. A clause which states: THE BUYER HEREBY ACKNOWLEDGES
4131 THAT BUYER HAS BEEN PROVIDED A CURRENT COPY OF THE INSPECTOR
4132 PREPARED SUMMARY OF THE MILESTONE INSPECTION REPORT AS DESCRIBED
4133 IN SECTION 553.899, FLORIDA STATUTES, IF APPLICABLE; A COPY OF
4134 THE TURNOVER INSPECTION REPORT DESCRIBED IN SECTION
4135 719.301(4)(p) AND (q), FLORIDA STATUTES, IF APPLICABLE; AND A
4136 COPY OF THE ASSOCIATION’S MOST RECENT STRUCTURAL INTEGRITY
4137 RESERVE STUDY DESCRIBED IN SECTIONS 719.103(24) AND
4138 719.106(1)(k), FLORIDA STATUTES, IF APPLICABLE, MORE THAN 7 3
4139 DAYS, EXCLUDING SATURDAYS, SUNDAYS, AND LEGAL HOLIDAYS, BEFORE
4140 PRIOR TO EXECUTION OF THIS CONTRACT; and
4141 2. A clause which states: THIS AGREEMENT IS VOIDABLE BY
4142 BUYER BY DELIVERING WRITTEN NOTICE OF THE BUYER’S INTENTION TO
4143 CANCEL WITHIN 7 3 DAYS, EXCLUDING SATURDAYS, SUNDAYS, AND LEGAL
4144 HOLIDAYS, AFTER THE DATE OF EXECUTION OF THIS AGREEMENT BY THE
4145 BUYER AND RECEIPT BY BUYER OF A CURRENT COPY OF THE INSPECTOR
4146 PREPARED SUMMARY OF THE MILESTONE INSPECTION REPORT AS DESCRIBED
4147 IN SECTION 553.899, FLORIDA STATUTES, IF APPLICABLE; A COPY OF
4148 THE TURNOVER INSPECTION REPORT DESCRIBED IN SECTION
4149 719.301(4)(p) AND (q), FLORIDA STATUTES, IF APPLICABLE; AND A
4150 COPY OF THE ASSOCIATION’S MOST RECENT STRUCTURAL INTEGRITY
4151 RESERVE STUDY DESCRIBED IN SECTIONS 719.103(24) AND
4152 719.106(1)(k), FLORIDA STATUTES, IF APPLICABLE. ANY PURPORTED
4153 WAIVER OF THESE VOIDABILITY RIGHTS SHALL BE OF NO EFFECT. BUYER
4154 MAY EXTEND THE TIME FOR CLOSING FOR A PERIOD OF NOT MORE THAN 7
4155 3 DAYS, EXCLUDING SATURDAYS, SUNDAYS, AND LEGAL HOLIDAYS, AFTER
4156 THE BUYER RECEIVES A CURRENT COPY OF THE INSPECTOR-PREPARED
4157 SUMMARY OF THE MILESTONE INSPECTION REPORT AS DESCRIBED IN
4158 SECTION 553.899, FLORIDA STATUTES; A COPY OF THE TURNOVER
4159 INSPECTION REPORT DESCRIBED IN SECTION 719.301(4)(p) AND (q),
4160 FLORIDA STATUTES; OR A COPY OF THE ASSOCIATION’S MOST RECENT
4161 STRUCTURAL INTEGRITY RESERVE STUDY DESCRIBED IN SECTIONS
4162 719.103(24) AND 719.106(1)(k), FLORIDA STATUTES, IF REQUESTED IN
4163 WRITING. BUYER’S RIGHT TO VOID THIS AGREEMENT SHALL TERMINATE AT
4164 CLOSING.
4165
4166 A contract that does not conform to the requirements of this
4167 paragraph is voidable at the option of the purchaser before
4168 prior to closing.
4169 Section 16. Subsection (3) of section 914.21, Florida
4170 Statutes, is amended to read:
4171 914.21 Definitions.—As used in ss. 914.22-914.24, the term:
4172 (3) “Official investigation” means any investigation
4173 instituted by a law enforcement agency or prosecuting officer of
4174 the state or a political subdivision of the state or the
4175 Commission on Ethics or the Division of Florida Condominiums,
4176 Timeshares, and Mobile Homes of the Department of Business and
4177 Professional Regulation.
4178 Section 17. For the 2025-2026 fiscal year, the recurring
4179 sum of $150,000 and nonrecurring sum of $100,000 are
4180 appropriated from the Professional Regulation Trust Fund to the
4181 Department of Business and Professional Regulation to contract
4182 with the University of Florida to implement s. 553.899(3)(f),
4183 Florida Statutes, as amended by this act. The unexpended balance
4184 of nonrecurring funds provided by this section shall revert and
4185 is appropriated for the same purpose for the 2026-2027 fiscal
4186 year.
4187 Section 18. For the purpose of incorporating the amendment
4188 made by this act to section 468.4335, Florida Statutes, in a
4189 reference thereto, paragraph (b) of subsection (2) of section
4190 468.436, Florida Statutes, is reenacted to read:
4191 468.436 Disciplinary proceedings.—
4192 (2) The following acts constitute grounds for which the
4193 disciplinary actions in subsection (4) may be taken:
4194 (b)1. Violation of this part.
4195 2. Violation of any lawful order or rule rendered or
4196 adopted by the department or the council.
4197 3. Being convicted of or pleading nolo contendere to a
4198 felony in any court in the United States.
4199 4. Obtaining a license or certification or any other order,
4200 ruling, or authorization by means of fraud, misrepresentation,
4201 or concealment of material facts.
4202 5. Committing acts of gross misconduct or gross negligence
4203 in connection with the profession.
4204 6. Contracting, on behalf of an association, with any
4205 entity in which the licensee has a financial interest that is
4206 not disclosed.
4207 7. Failing to disclose any conflict of interest as required
4208 by s. 468.4335.
4209 8. Violating chapter 718, chapter 719, or chapter 720
4210 during the course of performing community association management
4211 services pursuant to a contract with a community association as
4212 defined in s. 468.431(1).
4213 Section 19. For the purpose of incorporating the amendment
4214 made by this act to section 718.111, Florida Statutes, in a
4215 reference thereto, paragraph (e) of subsection (3) of section
4216 721.13, Florida Statutes, is reenacted to read:
4217 721.13 Management.—
4218 (3) The duties of the managing entity include, but are not
4219 limited to:
4220 (e) Arranging for an annual audit of the financial
4221 statements of the timeshare plan by a certified public
4222 accountant licensed by the Board of Accountancy of the
4223 Department of Business and Professional Regulation, in
4224 accordance with generally accepted auditing standards as defined
4225 by the rules of the Board of Accountancy of the Department of
4226 Business and Professional Regulation. The financial statements
4227 required by this section must be prepared on an accrual basis
4228 using fund accounting, and must be presented in accordance with
4229 generally accepted accounting principles. A copy of the audited
4230 financial statements must be filed with the division for review
4231 and forwarded to the board of directors and officers of the
4232 owners’ association, if one exists, no later than 5 calendar
4233 months after the end of the timeshare plan’s fiscal year. If no
4234 owners’ association exists, each purchaser must be notified, no
4235 later than 5 months after the end of the timeshare plan’s fiscal
4236 year, that a copy of the audited financial statements is
4237 available upon request to the managing entity. Notwithstanding
4238 any requirement of s. 718.111(13) or s. 719.104(4), the audited
4239 financial statements required by this section are the only
4240 annual financial reporting requirements for timeshare
4241 condominiums or timeshare cooperatives.
4242 Section 20. For the purpose of incorporating the amendment
4243 made by this act to section 718.112, Florida Statutes, in
4244 references thereto, paragraph (a) of subsection (7) and
4245 paragraph (c) of subsection (21) of section 718.504, Florida
4246 Statutes, are reenacted to read:
4247 718.504 Prospectus or offering circular.—Every developer of
4248 a residential condominium which contains more than 20
4249 residential units, or which is part of a group of residential
4250 condominiums which will be served by property to be used in
4251 common by unit owners of more than 20 residential units, shall
4252 prepare a prospectus or offering circular and file it with the
4253 Division of Florida Condominiums, Timeshares, and Mobile Homes
4254 prior to entering into an enforceable contract of purchase and
4255 sale of any unit or lease of a unit for more than 5 years and
4256 shall furnish a copy of the prospectus or offering circular to
4257 each buyer. In addition to the prospectus or offering circular,
4258 each buyer shall be furnished a separate page entitled
4259 “Frequently Asked Questions and Answers,” which shall be in
4260 accordance with a format approved by the division and a copy of
4261 the financial information required by s. 718.111. This page
4262 shall, in readable language, inform prospective purchasers
4263 regarding their voting rights and unit use restrictions,
4264 including restrictions on the leasing of a unit; shall indicate
4265 whether and in what amount the unit owners or the association is
4266 obligated to pay rent or land use fees for recreational or other
4267 commonly used facilities; shall contain a statement identifying
4268 that amount of assessment which, pursuant to the budget, would
4269 be levied upon each unit type, exclusive of any special
4270 assessments, and which shall further identify the basis upon
4271 which assessments are levied, whether monthly, quarterly, or
4272 otherwise; shall state and identify any court cases in which the
4273 association is currently a party of record in which the
4274 association may face liability in excess of $100,000; shall
4275 state whether the condominium is created within a portion of a
4276 building or within a multiple parcel building; and which shall
4277 further state whether membership in a recreational facilities
4278 association is mandatory, and if so, shall identify the fees
4279 currently charged per unit type. The division shall by rule
4280 require such other disclosure as in its judgment will assist
4281 prospective purchasers. The prospectus or offering circular may
4282 include more than one condominium, although not all such units
4283 are being offered for sale as of the date of the prospectus or
4284 offering circular. The prospectus or offering circular must
4285 contain the following information:
4286 (7) A description of the recreational and other facilities
4287 that will be used in common with other condominiums, community
4288 associations, or planned developments which require the payment
4289 of the maintenance and expenses of such facilities, directly or
4290 indirectly, by the unit owners. The description shall include,
4291 but not be limited to, the following:
4292 (a) Each building and facility committed to be built and a
4293 summary description of the structural integrity of each building
4294 for which reserves are required pursuant to s. 718.112(2)(g).
4295
4296 Descriptions shall include location, areas, capacities, numbers,
4297 volumes, or sizes and may be stated as approximations or
4298 minimums.
4299 (21) An estimated operating budget for the condominium and
4300 the association, and a schedule of the unit owner’s expenses
4301 shall be attached as an exhibit and shall contain the following
4302 information:
4303 (c) The estimated items of expenses of the condominium and
4304 the association, except as excluded under paragraph (b),
4305 including, but not limited to, the following items, which shall
4306 be stated as an association expense collectible by assessments
4307 or as unit owners’ expenses payable to persons other than the
4308 association:
4309 1. Expenses for the association and condominium:
4310 a. Administration of the association.
4311 b. Management fees.
4312 c. Maintenance.
4313 d. Rent for recreational and other commonly used
4314 facilities.
4315 e. Taxes upon association property.
4316 f. Taxes upon leased areas.
4317 g. Insurance.
4318 h. Security provisions.
4319 i. Other expenses.
4320 j. Operating capital.
4321 k. Reserves for all applicable items referenced in s.
4322 718.112(2)(g).
4323 l. Fees payable to the division.
4324 2. Expenses for a unit owner:
4325 a. Rent for the unit, if subject to a lease.
4326 b. Rent payable by the unit owner directly to the lessor or
4327 agent under any recreational lease or lease for the use of
4328 commonly used facilities, which use and payment is a mandatory
4329 condition of ownership and is not included in the common expense
4330 or assessments for common maintenance paid by the unit owners to
4331 the association.
4332 Section 21. For the purpose of incorporating the amendment
4333 made by this act to section 718.112, Florida Statutes, in
4334 references thereto, paragraph (d) of subsection (1) of section
4335 718.618, Florida Statutes, is reenacted to read:
4336 718.618 Converter reserve accounts; warranties.—
4337 (1) When existing improvements are converted to ownership
4338 as a residential condominium, the developer shall establish
4339 converter reserve accounts for capital expenditures and deferred
4340 maintenance, or give warranties as provided by subsection (6),
4341 or post a surety bond as provided by subsection (7). The
4342 developer shall fund the converter reserve accounts in amounts
4343 calculated as follows:
4344 (d) In addition to establishing the reserve accounts
4345 specified above, the developer shall establish those other
4346 reserve accounts required by s. 718.112(2)(f), and shall fund
4347 those accounts in accordance with the formula provided therein.
4348 The vote to waive or reduce the funding or reserves required by
4349 s. 718.112(2)(f) does not affect or negate the obligations
4350 arising under this section.
4351 Section 22. For the purpose of incorporating the amendment
4352 made by this act to sections 718.111, 718.112, and 718.503,
4353 Florida Statutes, in references thereto, subsections (1) and (3)
4354 of section 718.706, Florida Statutes, are reenacted to read:
4355 718.706 Specific provisions pertaining to offering of units
4356 by a bulk assignee or bulk buyer.—
4357 (1) Before offering more than seven units in a single
4358 condominium for sale or for lease for a term exceeding 5 years,
4359 a bulk assignee or a bulk buyer must file the following
4360 documents with the division and provide such documents to a
4361 prospective purchaser or tenant:
4362 (a) An updated prospectus or offering circular, or a
4363 supplement to the prospectus or offering circular, filed by the
4364 original developer prepared in accordance with s. 718.504, which
4365 must include the form of contract for sale and for lease in
4366 compliance with s. 718.503(2);
4367 (b) An updated Frequently Asked Questions and Answers
4368 sheet;
4369 (c) The executed escrow agreement if required under s.
4370 718.202; and
4371 (d) The financial information required by s. 718.111(13).
4372 However, if a financial information report did not exist before
4373 the acquisition of title by the bulk assignee or bulk buyer, and
4374 if accounting records that permit preparation of the required
4375 financial information report for that period cannot be obtained
4376 despite good faith efforts by the bulk assignee or the bulk
4377 buyer, the bulk assignee or bulk buyer is excused from the
4378 requirement of this paragraph. However, the bulk assignee or
4379 bulk buyer must include in the purchase contract the following
4380 statement in conspicuous type:
4381
4382 ALL OR A PORTION OF THE FINANCIAL INFORMATION REPORT
4383 REQUIRED UNDER S. 718.111(13) FOR THE TIME PERIOD
4384 BEFORE THE SELLER’S ACQUISITION OF THE UNIT IS NOT
4385 AVAILABLE OR CANNOT BE OBTAINED DESPITE THE GOOD FAITH
4386 EFFORTS OF THE SELLER.
4387
4388 (3) A bulk assignee, while in control of the board of
4389 administration of the association, may not authorize, on behalf
4390 of the association:
4391 (a) The waiver of reserves or the reduction of funding of
4392 the reserves pursuant to s. 718.112(2)(f)2., unless approved by
4393 a majority of the voting interests not controlled by the
4394 developer, bulk assignee, and bulk buyer; or
4395 (b) The use of reserve expenditures for other purposes
4396 pursuant to s. 718.112(2)(f)3., unless approved by a majority of
4397 the voting interests not controlled by the developer, bulk
4398 assignee, and bulk buyer.
4399 Section 23. For the purpose of incorporating the amendment
4400 made by this act to section 719.106, Florida Statutes, in a
4401 reference thereto, subsection (24) of section 719.103, Florida
4402 Statutes, is reenacted to read:
4403 719.103 Definitions.—As used in this chapter:
4404 (24) “Structural integrity reserve study” means a study of
4405 the reserve funds required for future major repairs and
4406 replacement of the cooperative property performed as required
4407 under s. 719.106(1)(k).
4408 Section 24. For the purpose of incorporating the amendment
4409 made by this act to section 719.106, Florida Statutes, in
4410 references thereto, paragraph (a) of subsection (7) and
4411 paragraph (c) of subsection (20) of section 719.504, Florida
4412 Statutes, are reenacted to read:
4413 719.504 Prospectus or offering circular.—Every developer of
4414 a residential cooperative which contains more than 20
4415 residential units, or which is part of a group of residential
4416 cooperatives which will be served by property to be used in
4417 common by unit owners of more than 20 residential units, shall
4418 prepare a prospectus or offering circular and file it with the
4419 Division of Florida Condominiums, Timeshares, and Mobile Homes
4420 prior to entering into an enforceable contract of purchase and
4421 sale of any unit or lease of a unit for more than 5 years and
4422 shall furnish a copy of the prospectus or offering circular to
4423 each buyer. In addition to the prospectus or offering circular,
4424 each buyer shall be furnished a separate page entitled
4425 “Frequently Asked Questions and Answers,” which must be in
4426 accordance with a format approved by the division. This page
4427 must, in readable language: inform prospective purchasers
4428 regarding their voting rights and unit use restrictions,
4429 including restrictions on the leasing of a unit; indicate
4430 whether and in what amount the unit owners or the association is
4431 obligated to pay rent or land use fees for recreational or other
4432 commonly used facilities; contain a statement identifying that
4433 amount of assessment which, pursuant to the budget, would be
4434 levied upon each unit type, exclusive of any special
4435 assessments, and which identifies the basis upon which
4436 assessments are levied, whether monthly, quarterly, or
4437 otherwise; state and identify any court cases in which the
4438 association is currently a party of record in which the
4439 association may face liability in excess of $100,000; and state
4440 whether membership in a recreational facilities association is
4441 mandatory and, if so, identify the fees currently charged per
4442 unit type. The division shall by rule require such other
4443 disclosure as in its judgment will assist prospective
4444 purchasers. The prospectus or offering circular may include more
4445 than one cooperative, although not all such units are being
4446 offered for sale as of the date of the prospectus or offering
4447 circular. The prospectus or offering circular must contain the
4448 following information:
4449 (7) A description of the recreational and other facilities
4450 that will be used in common with other cooperatives, community
4451 associations, or planned developments which require the payment
4452 of the maintenance and expenses of such facilities, directly or
4453 indirectly, by the unit owners. The description shall include,
4454 but not be limited to, the following:
4455 (a) Each building and facility committed to be built and a
4456 summary description of the structural integrity of each building
4457 for which reserves are required pursuant to s. 719.106(1)(k).
4458
4459 Descriptions shall include location, areas, capacities, numbers,
4460 volumes, or sizes and may be stated as approximations or
4461 minimums.
4462 (20) An estimated operating budget for the cooperative and
4463 the association, and a schedule of the unit owner’s expenses
4464 shall be attached as an exhibit and shall contain the following
4465 information:
4466 (c) The estimated items of expenses of the cooperative and
4467 the association, except as excluded under paragraph (b),
4468 including, but not limited to, the following items, which shall
4469 be stated as an association expense collectible by assessments
4470 or as unit owners’ expenses payable to persons other than the
4471 association:
4472 1. Expenses for the association and cooperative:
4473 a. Administration of the association.
4474 b. Management fees.
4475 c. Maintenance.
4476 d. Rent for recreational and other commonly used areas.
4477 e. Taxes upon association property.
4478 f. Taxes upon leased areas.
4479 g. Insurance.
4480 h. Security provisions.
4481 i. Other expenses.
4482 j. Operating capital.
4483 k. Reserves for all applicable items referenced in s.
4484 719.106(1)(k).
4485 l. Fee payable to the division.
4486 2. Expenses for a unit owner:
4487 a. Rent for the unit, if subject to a lease.
4488 b. Rent payable by the unit owner directly to the lessor or
4489 agent under any recreational lease or lease for the use of
4490 commonly used areas, which use and payment are a mandatory
4491 condition of ownership and are not included in the common
4492 expense or assessments for common maintenance paid by the unit
4493 owners to the association.
4494 Section 25. Except as otherwise provided in this act, this
4495 act shall take effect July 1, 2025.