Florida Senate - 2025                          SENATOR AMENDMENT
       Bill No. CS for CS for HB 913
       
       
       
       
       
       
                                Ì201036tÎ201036                         
       
                              LEGISLATIVE ACTION                        
                    Senate             .             House              
                                       .                                
                                       .                                
                                       .                                
               Floor: 1b/RE/2R         .                                
             04/30/2025 12:33 PM       .                                
       —————————————————————————————————————————————————————————————————




       —————————————————————————————————————————————————————————————————
       Senator Bradley moved the following:
       
    1         Senate Amendment to Amendment (120290) (with title
    2  amendment)
    3  
    4         Delete lines 1558 - 1694
    5  and insert:
    6         b. The members of a unit-owner-controlled association may
    7  determine, by a majority vote of the total voting interests of
    8  the association, to provide no reserves or less reserves than
    9  required by this subsection. For a budget adopted on or after
   10  December 31, 2024, the members of a unit-owner-controlled
   11  association that must obtain a structural integrity reserve
   12  study may not determine to provide no reserves or less reserves
   13  than required by this subsection for items listed in paragraph
   14  (g), except that members of an association operating a
   15  multicondominium may determine to provide no reserves or less
   16  reserves than required by this subsection if an alternative
   17  funding method has been approved by the division.
   18         c.(I) Reserves for the items listed in paragraph (g) may be
   19  funded by regular assessments, special assessments, lines of
   20  credit, or loans. A special assessment, a line of credit, or a
   21  loan under this sub-subparagraph requires the approval of a
   22  majority vote of the total voting interests of the association.
   23         (II) A unit-owner-controlled association that must have a
   24  structural integrity reserve study may secure a line of credit
   25  or a loan to fund capital expenses required by a milestone
   26  inspection under s. 553.899 or a structural integrity reserve
   27  study. The line of credit or loan must be sufficient to fund the
   28  cumulative amount of any previously waived or unfunded portions
   29  of the reserve funding amount required by this paragraph and the
   30  most recent structural integrity reserve study. Funding from the
   31  line of credit or loan must be immediately available for access
   32  by the board to fund required repair, maintenance, or
   33  replacement expenses without further approval by the members of
   34  the association. A special assessment, a line of credit, or a
   35  loan secured under this sub-subparagraph and related details
   36  must be included in the annual financial statement that is
   37  required under s. 718.111(13) to be delivered to unit owners and
   38  required under s. 718.503 to be provided to prospective
   39  purchasers of a unit.
   40         (III) This sub-subparagraph does not apply to associations
   41  controlled by a developer as defined in s. 718.103, an
   42  association in which the nondeveloper unit owners have been in
   43  control for less than 1 year, or an association controlled by
   44  one or more bulk assignees or bulk buyers as those terms are
   45  defined in s. 718.703.
   46         d. If the local building official, as defined in s.
   47  468.603, determines that the entire condominium building is
   48  uninhabitable due to a natural emergency, as defined in s.
   49  252.34, the board, upon the approval of a majority of its
   50  members, may pause the contribution to its reserves or reduce
   51  reserve funding until the local building official determines
   52  that the condominium building is habitable. Any reserve account
   53  funds held by the association may be expended, pursuant to the
   54  board’s determination, to make the condominium building and its
   55  structures habitable. Upon the determination by the local
   56  building official that the condominium building is habitable,
   57  the association must immediately resume contributing funds to
   58  its reserves.
   59         eFor a budget adopted on or before December 31, 2028, if
   60  the association has completed a milestone inspection pursuant to
   61  s. 553.899 within the previous 2 calendar years, the board, upon
   62  the approval of a majority of the total voting interests of the
   63  association, may temporarily pause, for a period of no more than
   64  two consecutive annual budgets, reserve fund contributions or
   65  reduce the amount of reserve funding for the purpose of funding
   66  repairs recommended by the milestone inspection. This sub
   67  subparagraph does not apply to an association controlled by a
   68  developer as defined in s. 718.103, an association in which the
   69  nondeveloper unit owners have been in control for less than 1
   70  year, or an association controlled by one or more bulk assignees
   71  or bulk buyers as those terms are defined in s. 718.703. An
   72  association that has paused reserve contributions under this
   73  subparagraph must have a structural integrity reserve study
   74  performed before the continuation of reserve contributions in
   75  order to determine the association’s reserve funding needs and
   76  to recommend a reserve funding plan.
   77         f.b. Before turnover of control of an association by a
   78  developer to unit owners other than a developer under s.
   79  718.301, the developer-controlled association may not vote to
   80  waive the reserves or reduce funding of the reserves. If a
   81  meeting of the unit owners has been called to determine whether
   82  to waive or reduce the funding of reserves and no such result is
   83  achieved or a quorum is not attained, the reserves included in
   84  the budget shall go into effect. After the turnover, the
   85  developer may vote its voting interest to waive or reduce the
   86  funding of reserves.
   87         3. Reserve funds and any interest accruing thereon shall
   88  remain in the reserve account or accounts, and may be used only
   89  for authorized reserve expenditures unless their use for other
   90  purposes is approved in advance by a majority vote of all the
   91  total voting interests of the association. Before turnover of
   92  control of an association by a developer to unit owners other
   93  than the developer pursuant to s. 718.301, the developer
   94  controlled association may not vote to use reserves for purposes
   95  other than those for which they were intended. For a budget
   96  adopted on or after December 31, 2024, members of a unit-owner
   97  controlled association that must obtain a structural integrity
   98  reserve study may not vote to use reserve funds, or any interest
   99  accruing thereon, for any other purpose other than the
  100  replacement or deferred maintenance costs of the components
  101  listed in paragraph (g).
  102         4.An association’s reserve accounts may be pooled for two
  103  or more required components. Reserve funding for components
  104  listed in paragraph (g) may only be pooled with other components
  105  listed in paragraph (g). The reserve funding indicated in the
  106  proposed annual budget must be sufficient to ensure that
  107  available funds meet or exceed projected expenses for all
  108  components in the reserve pool based on the reserve funding plan
  109  or schedule of the most recent structural integrity reserve
  110  study. A vote of the members is not required for the board to
  111  change the accounting method for reserves to a pooling
  112  accounting method or a straight-line accounting method.
  113         5.4. The only voting interests that are eligible to vote on
  114  questions that involve waiving or reducing the funding of
  115  reserves, or using existing reserve funds for purposes other
  116  than purposes for which the reserves were intended, are the
  117  voting interests of the units subject to assessment to fund the
  118  reserves in question. Proxy questions relating to waiving or
  119  reducing the funding of reserves or using existing reserve funds
  120  for purposes other than purposes for which the reserves were
  121  intended must contain the following statement in capitalized,
  122  bold letters in a font size larger than any other used on the
  123  face of the proxy ballot:
  124  
  125         WAIVING OF RESERVES, IN WHOLE OR IN PART, OR ALLOWING
  126         ALTERNATIVE USES OF EXISTING RESERVES MAY RESULT IN
  127         UNIT OWNER LIABILITY FOR PAYMENT OF UNANTICIPATED
  128         SPECIAL ASSESSMENTS REGARDING THOSE ITEMS.
  129  
  130         6. The division shall annually adjust for inflation, based
  131  on the Consumer Price Index for All Urban Consumers released in
  132  January of each year, the minimum $25,000 threshold amount for
  133  required reserves. By February 1, 2026, and annually thereafter,
  134  the division must conspicuously post on its website the
  135  inflation-adjusted minimum threshold amount for required
  136  reserves.
  137         (g) Structural integrity reserve study.—
  138         1. A residential condominium association must have a
  139  structural integrity reserve study completed at least every 10
  140  years after the condominium’s creation for each building on the
  141  condominium property that is three habitable stories or higher
  142  in height,
  143  
  144  ================= T I T L E  A M E N D M E N T ================
  145  And the title is amended as follows:
  146         Delete lines 4361 - 4365
  147  and insert:
  148         certain circumstances; deleting a