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