Florida Senate - 2026                             CS for SB 1498
       
       
        
       By the Committee on Regulated Industries; and Senators Bradley
       and Boyd
       
       
       
       
       580-02459-26                                          20261498c1
    1                        A bill to be entitled                      
    2         An act relating to community associations; amending s.
    3         718.103, F.S.; revising the definition of the term
    4         “video conference”; amending s. 718.111, F.S.;
    5         revising conditions that constitute a violation of
    6         certain provisions related to certain records of a
    7         condominium association; requiring a condominium
    8         association to provide copies of certain records or
    9         otherwise make them available for inspection and
   10         copying within a specified timeframe if the
   11         association receives a subpoena or written request
   12         from a law enforcement agency or prosecuting agency;
   13         requiring the association to assist law enforcement or
   14         prosecuting agencies in their investigations;
   15         providing criminal penalties; amending s. 718.112,
   16         F.S.; revising a requirement that a developer, before
   17         turning over control of a condominium association to
   18         unit owners, have a turnover inspection report for all
   19         buildings on the condominium property, rather than
   20         only for buildings that are three stories or higher;
   21         revising the criteria for certain associations
   22         requiring a structural integrity reserve study;
   23         correcting a cross-reference; amending s. 718.128,
   24         F.S.; revising how associations that have not adopted
   25         electronic voting are required to receive
   26         electronically transmitted ballots; revising the
   27         methods a unit owner may use to transmit his or her
   28         ballot; conforming provisions to changes made by the
   29         act; amending s. 719.106, F.S.; revising a requirement
   30         that a developer, before turning over control of a
   31         cooperative association to unit owners, have a
   32         turnover inspection report for all buildings on the
   33         cooperative property, rather than only for buildings
   34         that are three stories or higher; revising the
   35         criteria for certain associations requiring a
   36         structural integrity reserve study; amending s.
   37         720.301, F.S.; revising the definition for the terms
   38         “common area” and “governing documents”; amending s.
   39         720.302, F.S.; revising applicability; amending s.
   40         720.303, F.S.; providing that the official records of
   41         a homeowners’ association are open to inspection by
   42         certain persons at all reasonable times; revising
   43         conditions that constitute a violation of certain
   44         provisions related to certain records of the
   45         homeowners’ association; deleting the definition of
   46         the term “repeatedly”; revising a requirement for an
   47         association to provide copies of certain records
   48         within a specified timeframe if it receives a subpoena
   49         or written request for such records from a law
   50         enforcement agency or prosecuting agency; providing
   51         criminal penalties; amending s. 720.305, F.S.;
   52         revising the parties against whom an action may be
   53         brought at law or in equity, or both, for
   54         noncompliance with ch. 720, F.S., to include a
   55         developer or other owner of a common area; amending s.
   56         720.307, F.S.; revising the documents a developer must
   57         deliver to the homeowners’ association board of
   58         directors within a specified timeframe during the
   59         transition of association control from the developer
   60         to the board; amending s. 720.3075, F.S.; revising the
   61         types of prohibited clauses in homeowners’ association
   62         documents; amending s. 720.308, F.S.; prohibiting
   63         assessments payable to the developer or other owner of
   64         a common area from exceeding a member’s proportional
   65         share of the expenses set forth in the annual budget
   66         approved by the association; amending s. 720.3086,
   67         F.S.; requiring that a specified financial report
   68         conform to the financial report required by an
   69         association that serves the residential subdivision;
   70         requiring that the report be made available upon
   71         request at no charge; revising the manner in which the
   72         report is required to be delivered to each lot or
   73         parcel owner; providing an effective date.
   74          
   75  Be It Enacted by the Legislature of the State of Florida:
   76  
   77         Section 1. Subsection (33) of section 718.103, Florida
   78  Statutes, is amended to read:
   79         718.103 Definitions.—As used in this chapter, the term:
   80         (33) “Video conference” means a real-time audio- and video
   81  based meeting between two or more people in different locations
   82  using video-enabled and audio-enabled devices. The notice for
   83  any meeting that is open to the unit owners and will be
   84  conducted by video conference must have a hyperlink and call-in
   85  conference telephone number for unit owners to attend the
   86  meeting and must have a physical location where unit owners can
   87  also attend the meeting in person. All meetings conducted by
   88  video conference which are open to the unit owners must be
   89  recorded, and such recording must be maintained as an official
   90  record of the association.
   91         Section 2. Paragraph (c) of subsection (12) of section
   92  718.111, Florida Statutes, is amended to read:
   93         718.111 The association.—
   94         (12) OFFICIAL RECORDS.—
   95         (c)1.a. The official records of the association are open to
   96  inspection by any association member and any person authorized
   97  by an association member as a representative of such member at
   98  all reasonable times. The right to inspect the records includes
   99  the right to make or obtain copies, at the reasonable expense,
  100  if any, of the member and of the person authorized by the
  101  association member as a representative of such member. A renter
  102  of a unit has a right to inspect and copy only the declaration
  103  of condominium, the association’s bylaws and rules, and the
  104  inspection reports described in ss. 553.899 and 718.301(4)(p).
  105  The association may adopt reasonable rules regarding the
  106  frequency, time, location, notice, and manner of record
  107  inspections and copying but may not require a member to
  108  demonstrate any purpose or state any reason for the inspection.
  109  The failure of an association to provide the records within 10
  110  working days after receipt of a written request creates a
  111  rebuttable presumption that the association willfully failed to
  112  comply with this paragraph. A unit owner who is denied access to
  113  official records is entitled to the actual damages or minimum
  114  damages for the association’s willful failure to comply. Minimum
  115  damages are $50 per calendar day for up to 10 days, beginning on
  116  the 11th working day after receipt of the written request. The
  117  failure to permit inspection entitles any person prevailing in
  118  an enforcement action to recover reasonable attorney fees from
  119  the person in control of the records who, directly or
  120  indirectly, knowingly denied access to the records. If the
  121  requested records are posted on an association’s website, or are
  122  available for download through an application on a mobile
  123  device, the association may fulfill its obligations under this
  124  paragraph by directing to the website or the application all
  125  persons authorized to request access.
  126         b. In response to a written request to inspect records, the
  127  association must simultaneously provide to the requestor a
  128  checklist of all records made available for inspection and
  129  copying. The checklist must also identify any of the
  130  association’s official records that were not made available to
  131  the requestor. An association must maintain a checklist provided
  132  under this sub-subparagraph for 7 years. An association
  133  delivering a checklist pursuant to this sub-subparagraph creates
  134  a rebuttable presumption that the association has complied with
  135  this paragraph.
  136         2. A director or member of the board or association or a
  137  community association manager who willfully and knowingly or
  138  intentionally violates subparagraph 1. commits a misdemeanor of
  139  the second degree, punishable as provided in s. 775.082 or s.
  140  775.083, and must be removed from office and a vacancy declared.
  141         3. A person who willfully and knowingly or intentionally
  142  defaces or destroys accounting records that are required by this
  143  chapter to be maintained during the period for which such
  144  records are required to be maintained, or who willfully and
  145  knowingly or intentionally fails to create or maintain
  146  accounting records that are required to be created or
  147  maintained, with the intent of causing harm to the association
  148  or one or more of its members, commits a misdemeanor of the
  149  first degree, punishable as provided in s. 775.082 or s.
  150  775.083; is personally subject to a civil penalty pursuant to s.
  151  718.501(1)(e); and must be removed from office and a vacancy
  152  declared.
  153         4. A person who willfully and knowingly or intentionally
  154  refuses to release or otherwise produce association records with
  155  the intent to avoid or escape detection, arrest, trial, or
  156  punishment for the commission of a crime, or to assist another
  157  person with such avoidance or escape, commits a felony of the
  158  third degree, punishable as provided in s. 775.082, s. 775.083,
  159  or s. 775.084, and must be removed from office and a vacancy
  160  declared.
  161         5. The association shall maintain an adequate number of
  162  copies of the declaration, articles of incorporation, bylaws,
  163  and rules, and all amendments to each of the foregoing, as well
  164  as the question and answer sheet as described in s. 718.504 and
  165  the most recent annual financial statement and annual budget
  166  required under this section, on the condominium property to
  167  ensure their availability to unit owners and prospective
  168  purchasers, and may charge its actual costs for preparing and
  169  furnishing these documents to those requesting the documents. An
  170  association shall allow a member or his or her authorized
  171  representative to use a portable device, including a smartphone,
  172  tablet, portable scanner, or any other technology capable of
  173  scanning or taking photographs, to make an electronic copy of
  174  the official records in lieu of the association’s providing the
  175  member or his or her authorized representative with a copy of
  176  such records. The association may not charge a member or his or
  177  her authorized representative for the use of a portable device.
  178  Notwithstanding this paragraph, the following records are not
  179  accessible to unit owners:
  180         a. Any record protected by the lawyer-client privilege as
  181  described in s. 90.502 and any record protected by the work
  182  product privilege, including a record prepared by an association
  183  attorney or prepared at the attorney’s express direction, which
  184  reflects a mental impression, conclusion, litigation strategy,
  185  or legal theory of the attorney or the association, and which
  186  was prepared exclusively for civil or criminal litigation or for
  187  adversarial administrative proceedings, or which was prepared in
  188  anticipation of such litigation or proceedings until the
  189  conclusion of the litigation or proceedings.
  190         b. Information obtained by an association in connection
  191  with the approval of the lease, sale, or other transfer of a
  192  unit.
  193         c. Personnel records of association or management company
  194  employees, including, but not limited to, disciplinary, payroll,
  195  health, and insurance records. For purposes of this sub
  196  subparagraph, the term “personnel records” does not include
  197  written employment agreements with an association employee or
  198  management company, or budgetary or financial records that
  199  indicate the compensation paid to an association employee.
  200         d. Medical records of unit owners.
  201         e. Social security numbers, driver license numbers, credit
  202  card numbers, e-mail addresses, telephone numbers, facsimile
  203  numbers, emergency contact information, addresses of a unit
  204  owner other than as provided to fulfill the association’s notice
  205  requirements, and other personal identifying information of any
  206  person, excluding the person’s name, unit designation, mailing
  207  address, property address, and any address, e-mail address, or
  208  facsimile number provided to the association to fulfill the
  209  association’s notice requirements. Notwithstanding the
  210  restrictions in this sub-subparagraph, an association may print
  211  and distribute to unit owners a directory containing the name,
  212  unit address, and all telephone numbers of each unit owner.
  213  However, an owner may exclude his or her telephone numbers from
  214  the directory by so requesting in writing to the association. An
  215  owner may consent in writing to the disclosure of other contact
  216  information described in this sub-subparagraph. The association
  217  is not liable for the inadvertent disclosure of information that
  218  is protected under this sub-subparagraph if the information is
  219  included in an official record of the association and is
  220  voluntarily provided by an owner and not requested by the
  221  association.
  222         f. Electronic security measures that are used by the
  223  association to safeguard data, including passwords.
  224         g. The software and operating system used by the
  225  association which allow the manipulation of data, even if the
  226  owner owns a copy of the same software used by the association.
  227  The data is part of the official records of the association.
  228         h. All affirmative acknowledgments made pursuant to s.
  229  718.121(4)(c).
  230         6.a. If an association receives a subpoena or written
  231  request for records from a law enforcement agency or prosecuting
  232  agency as defined in 112.531, the association must provide a
  233  copy of such records or otherwise make the records available for
  234  inspection and copying to the law enforcement agency or
  235  prosecuting agency within 5 business days after receipt of the
  236  subpoena or written request, unless otherwise specified by the
  237  law enforcement agency, prosecuting agency, or subpoena or
  238  written request. An association must assist a law enforcement
  239  agency and a prosecting agency in an investigation to the extent
  240  permissible by law.
  241         b. A director or member of the board or association or a
  242  community association manager who willfully and knowingly fails
  243  to provide a copy of records, or otherwise fails to make the
  244  records available for inspection and copying, to a law
  245  enforcement agency or prosecuting agency as required by sub
  246  subparagraph a. commits a misdemeanor of the second degree,
  247  punishable as provided in s. 775.082 or s. 775.083.
  248         Section 3. Paragraph (g) of subsection (2) of section
  249  718.112, Florida Statutes, is amended to read:
  250         718.112 Bylaws.—
  251         (2) REQUIRED PROVISIONS.—The bylaws shall provide for the
  252  following and, if they do not do so, shall be deemed to include
  253  the following:
  254         (g) Structural integrity reserve study.—
  255         1. A residential condominium association must have a
  256  structural integrity reserve study completed at least every 10
  257  years after the condominium’s creation for each building on the
  258  condominium property that is three habitable stories or higher
  259  in height, as determined by the Florida Building Code, which
  260  includes, at a minimum, a study of the following items as
  261  related to the structural integrity and safety of the building:
  262         a. Roof.
  263         b. Structure, including load-bearing walls and other
  264  primary structural members and primary structural systems as
  265  those terms are defined in s. 627.706.
  266         c. Fireproofing and fire protection systems.
  267         d. Plumbing.
  268         e. Electrical systems.
  269         f. Waterproofing and exterior painting.
  270         g. Windows and exterior doors.
  271         h. Any other item that has a deferred maintenance expense
  272  or replacement cost that exceeds $25,000 or the inflation
  273  adjusted amount determined by the division under subparagraph
  274  (f)6., whichever is greater, and the failure to replace or
  275  maintain such item negatively affects the items listed in sub
  276  subparagraphs a.-g., as determined by the visual inspection
  277  portion of the structural integrity reserve study.
  278         2. A structural integrity reserve study is based on a
  279  visual inspection of the condominium property.
  280         3.a. A structural integrity reserve study, including the
  281  visual inspection portion of the structural integrity reserve
  282  study, must be performed or verified by an engineer licensed
  283  under chapter 471, an architect licensed under chapter 481, or a
  284  person certified as a reserve specialist or professional reserve
  285  analyst by the Community Associations Institute or the
  286  Association of Professional Reserve Analysts.
  287         b. Any design professional as defined in s. 558.002 or any
  288  contractor licensed under chapter 489 who bids to perform a
  289  structural integrity reserve study must disclose in writing to
  290  the association his or her intent to bid on any services related
  291  to any maintenance, repair, or replacement that may be
  292  recommended by the structural integrity reserve study. Any
  293  design professional as defined in s. 558.002 or contractor
  294  licensed under chapter 489 who submits a bid to the association
  295  for performing any services recommended by the structural
  296  integrity reserve study may not have an interest, directly or
  297  indirectly, in the firm or entity providing the association’s
  298  structural integrity reserve study or be a relative of any
  299  person having a direct or indirect interest in such firm, unless
  300  such relationship is disclosed to the association in writing. As
  301  used in this section, the term “relative” means a relative
  302  within the third degree of consanguinity by blood or marriage. A
  303  contract for services is voidable and terminates upon the
  304  association filing a written notice terminating the contract if
  305  the design professional or licensed contractor failed to provide
  306  the written disclosure of the interests or relationships
  307  required under this paragraph. A design professional or licensed
  308  contractor may be subject to discipline under the applicable
  309  practice act for his or her profession for failure to provide
  310  the written disclosure of the interests or relationships
  311  required under this paragraph.
  312         4.a. At a minimum, a structural integrity reserve study
  313  must identify each item of the condominium property being
  314  visually inspected, state the estimated remaining useful life
  315  and the estimated replacement cost or deferred maintenance
  316  expense of each item of the condominium property being visually
  317  inspected, and provide a reserve funding plan or schedule with a
  318  recommended annual reserve amount that achieves the estimated
  319  replacement cost or deferred maintenance expense of each item of
  320  condominium property being visually inspected by the end of the
  321  estimated remaining useful life of the item. At a minimum, the
  322  structural integrity reserve study must include a recommendation
  323  for a reserve funding schedule based on a baseline funding plan
  324  that provides a reserve funding goal in which the reserve
  325  funding for each budget year is sufficient to maintain the
  326  reserve cash balance above zero. The study may recommend other
  327  types of reserve funding schedules, provided that each
  328  recommended schedule is sufficient to meet the association’s
  329  maintenance obligation.
  330         b. The structural integrity reserve study may recommend
  331  that reserves do not need to be maintained for any item for
  332  which an estimate of useful life and an estimate of replacement
  333  cost cannot be determined, or the study may recommend a deferred
  334  maintenance expense amount for such item. The structural
  335  integrity reserve study may recommend that reserves for
  336  replacement costs do not need to be maintained for any item with
  337  an estimated remaining useful life of greater than 25 years, but
  338  the study may recommend a deferred maintenance expense amount
  339  for such item. If the structural integrity reserve study
  340  recommends reserves for any item for which reserves are not
  341  required under this paragraph, the amount of the recommended
  342  reserves for such item must be separately identified in the
  343  structural integrity reserve study as an item for which reserves
  344  are not required under this paragraph.
  345         c. The structural integrity reserve study must take into
  346  consideration the funding method or methods used by the
  347  association to fund its maintenance and reserve funding
  348  obligations through regular assessments, special assessments,
  349  lines of credit, or loans. If the structural integrity reserve
  350  study is performed before the association has approved a special
  351  assessment or secured a line of credit or a loan, the structural
  352  integrity reserve study must be updated to reflect the funding
  353  method selected by the association and its effect on the reserve
  354  funding schedule, including any anticipated change in the amount
  355  of regular assessments. The structural integrity reserve study
  356  may be updated to reflect any changes to the useful life of the
  357  reserve items after such items are repaired or replaced and the
  358  effect such repair or replacement will have on the reserve
  359  funding schedule. The association must obtain an updated
  360  structural integrity reserve study before adopting any budget in
  361  which the reserve funding from regular assessments, special
  362  assessments, lines of credit, or loans does not align with the
  363  funding plan from the most recent version of the structural
  364  integrity reserve study.
  365         5. This paragraph does not apply to buildings less than
  366  three stories in height; single-family, two-family, three
  367  family, or four-family dwellings with three or fewer habitable
  368  stories above ground; any portion or component of a building
  369  that has not been submitted to the condominium form of
  370  ownership; or any portion or component of a building that is
  371  maintained by a party other than the association.
  372         6. Before a developer turns over control of an association
  373  to unit owners other than the developer, the developer must have
  374  a turnover inspection report in compliance with s. 718.301(4)(p)
  375  and (q) for each building on the condominium property that is
  376  three stories or higher in height.
  377         7. Associations existing on or before July 1, 2022, which
  378  are controlled by unit owners other than the developer, must
  379  have a structural integrity reserve study completed by December
  380  31, 2025, for each building on the condominium property that is
  381  three habitable stories or higher in height. An association that
  382  is required to complete a milestone inspection in accordance
  383  with s. 553.899 on or before December 31, 2026, may complete the
  384  structural integrity reserve study simultaneously with the
  385  milestone inspection. In no event may the structural integrity
  386  reserve study be completed after December 31, 2026.
  387         8. If the milestone inspection required by s. 553.899, or
  388  an inspection completed for a similar local requirement, was
  389  performed within the past 5 years and meets the requirements of
  390  this paragraph, such inspection may be used in place of the
  391  visual inspection portion of the structural integrity reserve
  392  study.
  393         9. If the association completes a milestone inspection
  394  required by s. 553.899, or an inspection completed for a similar
  395  local requirement, the association may delay performance of a
  396  required structural integrity reserve study for no more than the
  397  2 consecutive budget years immediately following the milestone
  398  inspection in order to allow the association to focus its
  399  financial resources on completing the repair and maintenance
  400  recommendations of the milestone inspection.
  401         10. If the officers or directors of an association
  402  willfully and knowingly fail to complete a structural integrity
  403  reserve study pursuant to this paragraph, such failure is a
  404  breach of an officer’s or a director’s fiduciary relationship to
  405  the unit owners under s. 718.111(1). An officer or a director of
  406  an association must sign an affidavit acknowledging receipt of
  407  the completed structural integrity reserve study.
  408         11. Within 45 days after receiving the structural integrity
  409  reserve study, the association must distribute a copy of the
  410  study to each unit owner or deliver to each unit owner a notice
  411  that the completed study is available for inspection and copying
  412  upon a written request. Distribution of a copy of the study or
  413  notice must be made by United States mail or personal delivery
  414  to the mailing address, property address, or any other address
  415  of the owner provided to fulfill the association’s notice
  416  requirements under this chapter, or by electronic transmission
  417  to the e-mail address or facsimile number provided to fulfill
  418  the association’s notice requirements to unit owners who
  419  previously consented to receive notice by electronic
  420  transmission.
  421         12. Within 45 days after receiving the structural integrity
  422  reserve study, the association must provide the division with a
  423  statement indicating that the study was completed and that the
  424  association provided or made available such study to each unit
  425  owner in accordance with this section. The statement must be
  426  provided to the division in the manner established by the
  427  division using a form posted on the division’s website.
  428         13. The division shall adopt by rule the form for the
  429  structural integrity reserve study in coordination with the
  430  Florida Building Commission.
  431         Section 4. Subsection (7) of section 718.128, Florida
  432  Statutes, is amended to read:
  433         718.128 Electronic voting.—The association may conduct
  434  elections and other unit owner votes through an Internet-based
  435  online voting system if a unit owner consents, electronically or
  436  in writing, to online voting and if the following requirements
  437  are met:
  438         (7)(a) Unless the association has adopted electronic voting
  439  in accordance with subsections (1)-(6), the association must
  440  designate an e-mail address, independent website, application,
  441  or Internet web portal for receipt of electronically transmitted
  442  ballots. Electronically transmitted ballots must meet all the
  443  requirements of this subsection.
  444         (b) A unit owner may electronically transmit a ballot to
  445  the e-mail address, independent website, application, or
  446  Internet web portal designated by the association without
  447  complying with s. 718.112(2)(d)3. s. 718.112(2)(d)4. or the
  448  rules providing for the secrecy of ballots adopted by the
  449  division. The association must count completed ballots that are
  450  electronically transmitted to the designated e-mail address,
  451  independent website, application, or Internet web portal
  452  provided the completed ballots comply with the requirements of
  453  this subsection.
  454         (c) A ballot that is electronically transmitted to the
  455  association must include all of the following:
  456         1. A space for the unit owner to type in his or her unit
  457  number.
  458         2. A space for the unit owner to type in his or her first
  459  and last name, which also functions as the signature of the unit
  460  owner for purposes of signing the ballot.
  461         3. The following statement in capitalized letters and in a
  462  font size larger than any other font size used in the electronic
  463  transmission e-mail from the association to the unit owner:
  464  
  465         WAIVING THE SECRECY OF YOUR BALLOT IS YOUR CHOICE. YOU
  466         DO NOT HAVE TO WAIVE THE SECRECY OF YOUR BALLOT IN
  467         ORDER TO VOTE. BY TRANSMITTING YOUR COMPLETED BALLOT
  468         THROUGH ELECTRONIC MEANS E-MAIL TO THE ASSOCIATION,
  469         YOU WAIVE THE SECRECY OF YOUR COMPLETED BALLOT. IF YOU
  470         DO NOT WISH TO WAIVE YOUR SECRECY BUT WISH TO
  471         PARTICIPATE IN THE VOTE THAT IS THE SUBJECT OF THIS
  472         BALLOT, PLEASE ATTEND THE IN-PERSON MEETING DURING
  473         WHICH THE MATTER WILL BE VOTED ON.
  474  
  475         (d) A unit owner must transmit his or her completed ballot
  476  to the e-mail address, independent website, application, or
  477  Internet web portal designated by the association no later than
  478  the scheduled date and time of the meeting during which the
  479  matter is being voted on.
  480         (e) There is a rebuttable presumption that an association
  481  has reviewed all folders associated with the e-mail address,
  482  independent website, application, or Internet web portal
  483  designated by the association to receive ballots if a board
  484  member, an officer, or an agent of the association, or a manager
  485  licensed under part VIII of chapter 468, provides a sworn
  486  affidavit attesting to such review.
  487         Section 5. Paragraph (k) of subsection (1) of section
  488  719.106, Florida Statutes, is amended to read:
  489         719.106 Bylaws; cooperative ownership.—
  490         (1) MANDATORY PROVISIONS.—The bylaws or other cooperative
  491  documents shall provide for the following, and if they do not,
  492  they shall be deemed to include the following:
  493         (k) Structural integrity reserve study.—
  494         1. A residential cooperative association must have a
  495  structural integrity reserve study completed at least every 10
  496  years for each building on the cooperative property that is
  497  three habitable stories or higher in height, as determined by
  498  the Florida Building Code, that includes, at a minimum, a study
  499  of the following items as related to the structural integrity
  500  and safety of the building:
  501         a. Roof.
  502         b. Structure, including load-bearing walls and other
  503  primary structural members and primary structural systems as
  504  those terms are defined in s. 627.706.
  505         c. Fireproofing and fire protection systems.
  506         d. Plumbing.
  507         e. Electrical systems.
  508         f. Waterproofing and exterior painting.
  509         g. Windows and exterior doors.
  510         h. Any other item that has a deferred maintenance expense
  511  or replacement cost that exceeds $25,000 or the inflation
  512  adjusted amount determined by the division under subparagraph
  513  (j)6., whichever is greater, and the failure to replace or
  514  maintain such item negatively affects the items listed in sub
  515  subparagraphs a.-g., as determined by the visual inspection
  516  portion of the structural integrity reserve study.
  517         2. A structural integrity reserve study is based on a
  518  visual inspection of the cooperative property.
  519         3.a. A structural integrity reserve study, including the
  520  visual inspection portion of the structural integrity reserve
  521  study, must be performed or verified by an engineer licensed
  522  under chapter 471, an architect licensed under chapter 481, or a
  523  person certified as a reserve specialist or professional reserve
  524  analyst by the Community Associations Institute or the
  525  Association of Professional Reserve Analysts.
  526         b. Any design professional as defined in s. 558.002(7) or
  527  contractor licensed under chapter 489 who bids to perform a
  528  structural integrity reserve study must disclose in writing to
  529  the association his or her intent to bid on any services related
  530  to any maintenance, repair, or replacement that may be
  531  recommended by the structural integrity reserve study. Any
  532  design professional as defined in s. 558.002 or contractor
  533  licensed under chapter 489 who submits a bid to the association
  534  for performing any services recommended by the structural
  535  integrity reserve study may not have an interest, directly or
  536  indirectly, in the firm or entity providing the association’s
  537  structural integrity reserve study or be a relative of any
  538  person having a direct or indirect interest in such firm, unless
  539  such relationship is disclosed to the association in writing. As
  540  used in this section, the term “relative” means a relative
  541  within the third degree of consanguinity by blood or marriage. A
  542  contract for services is voidable and terminates upon the
  543  association filing a written notice terminating the contract if
  544  the design professional or licensed contractor failed to provide
  545  the written disclosure of the relationship required under this
  546  paragraph. A design professional or licensed contractor may be
  547  subject to discipline under the applicable practice act for his
  548  or her profession for failure to provide the written disclosure
  549  of the relationship required under this subparagraph.
  550         4.a. At a minimum, a structural integrity reserve study
  551  must identify each item of the cooperative property being
  552  visually inspected, state the estimated remaining useful life
  553  and the estimated replacement cost or deferred maintenance
  554  expense of each item of the cooperative property being visually
  555  inspected, and provide a reserve funding schedule with a
  556  recommended annual reserve amount that achieves the estimated
  557  replacement cost or deferred maintenance expense of each item of
  558  cooperative property being visually inspected by the end of the
  559  estimated remaining useful life of the item. The structural
  560  integrity reserve study may recommend that reserves do not need
  561  to be maintained for any item for which an estimate of useful
  562  life and an estimate of replacement cost cannot be determined,
  563  or the study may recommend a deferred maintenance expense amount
  564  for such item. At a minimum, the structural integrity reserve
  565  study must include a recommendation for a reserve funding
  566  schedule based on a baseline funding plan that provides a
  567  reserve funding goal in which the reserve funding for each
  568  budget year is sufficient to maintain the reserve cash balance
  569  above zero. The study may recommend other types of reserve
  570  funding schedules, provided that each recommended schedule is
  571  sufficient to meet the association’s maintenance obligation.
  572         b. The structural integrity reserve study may recommend
  573  that reserves for replacement costs do not need to be maintained
  574  for any item with an estimated remaining useful life of greater
  575  than 25 years, but the study may recommend a deferred
  576  maintenance expense amount for such item. If the structural
  577  integrity reserve study recommends reserves for any item for
  578  which reserves are not required under this paragraph, the amount
  579  of the recommended reserves for such item must be separately
  580  identified in the structural integrity reserve study as an item
  581  for which reserves are not required under this paragraph.
  582         c. The structural integrity reserve study must take into
  583  consideration the funding method or methods used by the
  584  association to fund its maintenance and reserve funding
  585  obligations through regular assessments, special assessments,
  586  lines of credit, or loans. If the structural integrity reserve
  587  study is performed before the association has approved a special
  588  assessment or secured a line of credit or a loan, the structural
  589  integrity reserve study must be updated to reflect the funding
  590  method selected by the association and its effect on the reserve
  591  funding schedule, including any anticipated change in the amount
  592  of regular assessments. The structural integrity reserve study
  593  may be updated to reflect any changes to the useful life of the
  594  reserve items after such items are repaired or replaced, and the
  595  effect such repair or replacement will have on the reserve
  596  funding schedule. The association must obtain an updated
  597  structural integrity reserve study before adopting any budget in
  598  which the reserve funding from regular assessments, special
  599  assessments, lines of credit, or loans does not align with the
  600  funding plan from the most recent version of the structural
  601  integrity reserve study.
  602         5. This paragraph does not apply to buildings less than
  603  three stories in height; single-family, two-family, three
  604  family, or four-family dwellings with three or fewer habitable
  605  stories above ground; any portion or component of a building
  606  that has not been submitted to the cooperative form of
  607  ownership; or any portion or component of a building that is
  608  maintained by a party other than the association.
  609         6. Before a developer turns over control of an association
  610  to unit owners other than the developer, the developer must have
  611  a turnover inspection report in compliance with s. 719.301(4)(p)
  612  and (q) for each building on the cooperative property that is
  613  three stories or higher in height.
  614         7. Associations existing on or before July 1, 2022, which
  615  are controlled by unit owners other than the developer, must
  616  have a structural integrity reserve study completed by December
  617  31, 2024, for each building on the cooperative property that is
  618  three habitable stories or higher in height. An association that
  619  is required to complete a milestone inspection on or before
  620  December 31, 2026, in accordance with s. 553.899 may complete
  621  the structural integrity reserve study simultaneously with the
  622  milestone inspection. In no event may the structural integrity
  623  reserve study be completed after December 31, 2026.
  624         8. If the milestone inspection required by s. 553.899, or
  625  an inspection completed for a similar local requirement, was
  626  performed within the past 5 years and meets the requirements of
  627  this paragraph, such inspection may be used in place of the
  628  visual inspection portion of the structural integrity reserve
  629  study.
  630         9. If the association completes a milestone inspection
  631  required by s. 553.899, or an inspection completed for a similar
  632  local requirement, the association may delay performance of a
  633  required structural integrity reserve study for no more than the
  634  2 consecutive budget years immediately following the milestone
  635  inspection in order to allow the association to focus its
  636  financial resources on completing the repair and maintenance
  637  recommendations of the milestone inspection.
  638         10. If the officers or directors of an association
  639  willfully and knowingly fail to complete a structural integrity
  640  reserve study pursuant to this paragraph, such failure is a
  641  breach of an officer’s and director’s fiduciary relationship to
  642  the unit owners under s. 719.104(9). An officer or a director of
  643  the association must sign an affidavit acknowledging receipt of
  644  the completed structural integrity reserve study.
  645         11. Within 45 days after receiving the structural integrity
  646  reserve study, the association must distribute a copy of the
  647  study to each unit owner or deliver to each unit owner a notice
  648  that the completed study is available for inspection and copying
  649  upon a written request. Distribution of a copy of the study or
  650  notice must be made by United States mail or personal delivery
  651  at the mailing address, property address, or any other address
  652  of the owner provided to fulfill the association’s notice
  653  requirements under this chapter, or by electronic transmission
  654  to the e-mail address or facsimile number provided to fulfill
  655  the association’s notice requirements to unit owners who
  656  previously consented to receive notice by electronic
  657  transmission.
  658         12. Within 45 days after receiving the structural integrity
  659  reserve study, the association must provide the division with a
  660  statement indicating that the study was completed and that the
  661  association provided or made available such study to each unit
  662  owner in accordance with this section. Such statement must be
  663  provided to the division in the manner established by the
  664  division using a form posted on the division’s website.
  665         13. The division shall adopt by rule the form for the
  666  structural integrity reserve study in coordination with the
  667  Florida Building Commission.
  668         Section 6. Subsections (2) and (8) of section 720.301,
  669  Florida Statutes, are amended to read:
  670         720.301 Definitions.—As used in this chapter, the term:
  671         (2) “Common area” means all real property within a
  672  community which is owned or leased by an association or
  673  dedicated for use or maintenance by the association or its
  674  members, including, regardless of whether title has been
  675  conveyed to the association:
  676         (a) Real property the use of which is dedicated to the
  677  association or its members by a recorded plat; or
  678         (b) Real property committed by a declaration of covenants
  679  to be leased or conveyed to the association;
  680         (c) Real property for which the developer or other owner of
  681  common areas has required, in the governing documents or
  682  otherwise, the association or its members to pay assessments or
  683  amenity fees for use or maintenance; or
  684         (d) Recreational facilities and other properties serving
  685  the parcels which the governing documents allow the owner of a
  686  parcel to access, use, or enjoy as a benefit of parcel
  687  ownership.
  688         (8) “Governing documents” means:
  689         (a) The recorded declaration of covenants for a community
  690  and all duly adopted and recorded amendments, supplements, and
  691  recorded exhibits thereto; and
  692         (b) The articles of incorporation and bylaws of the
  693  homeowners’ association and any duly adopted amendments thereto;
  694  and
  695         (c) All covenants running with the land which are binding
  696  on the association or its members.
  697         Section 7. Subsection (3) of section 720.302, Florida
  698  Statutes, is amended to read:
  699         720.302 Purposes, scope, and application.—
  700         (3) This chapter does not apply to:
  701         (a) A community that is composed of property primarily
  702  intended for commercial, industrial, or other nonresidential
  703  use; or
  704         (b) The commercial or industrial parcels in a community
  705  that contains both residential parcels and parcels intended for
  706  commercial or industrial use, provided that this paragraph does
  707  not affect the applicability of this chapter to any residential
  708  parcel, common area, or the developer or other owner of a common
  709  area.
  710         Section 8. Paragraphs (a), (d), and (i) of subsection (5)
  711  of section 720.303, Florida Statutes, are amended to read:
  712         720.303 Association powers and duties; meetings of board;
  713  official records; budgets; financial reporting; association
  714  funds; recalls.—
  715         (5) INSPECTION AND COPYING OF RECORDS.—
  716         (a) The official records of the association are open to
  717  inspection by any association member and any person authorized
  718  by an association member as a representative of such member at
  719  all reasonable times. Unless otherwise provided by law or the
  720  governing documents of the association, the official records
  721  must be maintained within this state for at least 7 years and be
  722  made available to a parcel owner for inspection or photocopying
  723  within 45 miles of the community or within the county in which
  724  the association is located within 10 business days after receipt
  725  by the board or its designee of a written request from the
  726  parcel owner. This subsection may be complied with by having a
  727  copy of the official records available for inspection or copying
  728  in the community or by making the records available to a parcel
  729  owner electronically via the Internet or by allowing the records
  730  to be viewed in electronic format on a computer screen and
  731  printed upon request. If the association has a photocopy machine
  732  available where the records are maintained, it must provide
  733  parcel owners with copies on request during the inspection if
  734  the entire request is limited to no more than 25 pages. An
  735  association shall allow a member or his or her authorized
  736  representative to use a portable device, including a smartphone,
  737  tablet, portable scanner, or any other technology capable of
  738  scanning or taking photographs, to make an electronic copy of
  739  the official records in lieu of the association’s providing the
  740  member or his or her authorized representative with a copy of
  741  such records. The association may not charge a fee to a member
  742  or his or her authorized representative for the use of a
  743  portable device.
  744         (d) Any director or member of the board or association or a
  745  community association manager who knowingly and, willfully, and
  746  repeatedly violates paragraph (a), with the intent of causing
  747  harm to the association or one or more of its members, commits a
  748  misdemeanor of the second degree, punishable as provided in s.
  749  775.082 or s. 775.083. For purposes of this paragraph, the term
  750  “repeatedly” means two or more violations within a 12-month
  751  period.
  752         (i)1. If an association receives a subpoena or written
  753  request for records from a law enforcement agency or prosecuting
  754  agency as defined in 112.531, the association must provide a
  755  copy of such records or otherwise make the records available for
  756  inspection and copying to a law enforcement agency or
  757  prosecuting agency within 5 business days after receipt of the
  758  subpoena or written request, unless otherwise specified by the
  759  law enforcement agency, prosecuting agency, or subpoena or
  760  written request. An association must assist a law enforcement
  761  agency in its investigation to the extent permissible by law.
  762         2.A director or member of the board or association or a
  763  community association manager who willfully and knowingly fails
  764  to provide a copy of records to a law enforcement agency or
  765  prosecuting agency, or otherwise fails to make the records
  766  available for inspection and copying, as required by
  767  subparagraph 1. commits a misdemeanor of the second degree,
  768  punishable as provided in s. 775.082 or s. 775.083.
  769         Section 9. Subsection (1) of section 720.305, Florida
  770  Statutes, is amended to read:
  771         720.305 Obligations of members; remedies at law or in
  772  equity; levy of fines and suspension of use rights.—
  773         (1) Each member and the member’s tenants, guests, and
  774  invitees, and each association, are governed by, and must comply
  775  with, this chapter, the governing documents of the community,
  776  and the rules of the association. Actions at law or in equity,
  777  or both, to redress alleged failure or refusal to comply with
  778  these provisions may be brought by the association or by any
  779  member against:
  780         (a) The association;
  781         (b) A member;
  782         (c) Any director or officer of an association who willfully
  783  and knowingly fails to comply with these provisions; and
  784         (d) Any tenants, guests, or invitees occupying a parcel or
  785  using the common areas; and
  786         (e) The developer or other owner of a common area,
  787  regardless of whether the developer or other owner of common
  788  areas is a member of the association.
  789  
  790  The prevailing party in any such litigation is entitled to
  791  recover reasonable attorney fees and costs. A member prevailing
  792  in an action between the association and the member under this
  793  section, in addition to recovering his or her reasonable
  794  attorney fees, may recover additional amounts as determined by
  795  the court to be necessary to reimburse the member for his or her
  796  share of assessments levied by the association to fund its
  797  expenses of the litigation. This relief does not exclude other
  798  remedies provided by law. This section does not deprive any
  799  person of any other available right or remedy.
  800         Section 10. Paragraphs (a), (k), and (t) of subsection (4)
  801  of section 720.307, Florida Statutes, are amended to read:
  802         720.307 Transition of association control in a community.
  803  With respect to homeowners’ associations:
  804         (4) At the time the members are entitled to elect at least
  805  a majority of the board of directors of the homeowners’
  806  association, the developer shall, at the developer’s expense,
  807  within no more than 90 days deliver the following documents to
  808  the board:
  809         (a) All deeds to common areas property owned by the
  810  association, and for any common area not already titled in the
  811  association’s name, the developer or other owner of common areas
  812  shall convey title to the association.
  813         (k) All tangible property for which of the association or
  814  its members, through assessments or other mandatory payments
  815  under the governing documents, are responsible for the cost of
  816  operation and maintenance.
  817         (t) The financial records, including financial statements
  818  of the association and common areas, and source documents from
  819  the incorporation of the association through the date of
  820  turnover. The records shall be audited by an independent
  821  certified public accountant for the period from the
  822  incorporation of the association or from the period covered by
  823  the last audit, if an audit has been performed for each fiscal
  824  year since incorporation. All financial statements shall be
  825  prepared in accordance with generally accepted accounting
  826  principles and shall be audited in accordance with generally
  827  accepted auditing standards, as prescribed by the Board of
  828  Accountancy, pursuant to chapter 473. The certified public
  829  accountant performing the audit shall examine to the extent
  830  necessary supporting documents and records, including the cash
  831  disbursements and related paid invoices to determine if
  832  expenditures were for association purposes and the billings,
  833  cash receipts, and related records of the association to
  834  determine that the developer was charged and paid the proper
  835  amounts of assessments. This paragraph applies to associations
  836  with a date of incorporation after December 31, 2007.
  837         Section 11. Paragraphs (d) and (e) are added to subsection
  838  (1) of section 720.3075, Florida Statutes, to read:
  839         720.3075 Prohibited clauses in association documents.—
  840         (1) It is declared that the public policy of this state
  841  prohibits the inclusion or enforcement of certain types of
  842  clauses in homeowners’ association documents, including
  843  declaration of covenants, articles of incorporation, bylaws, or
  844  any other document of the association which binds members of the
  845  association, which either have the effect of or provide that:
  846         (d) An association or its members are required to pay an
  847  assessment for mandatory membership in a club under the control
  848  and ownership of the developer or any person other than the
  849  association, and nonpayment of such mandatory fee is enforceable
  850  by the developer, or any person other than the association, by a
  851  lien on any individual parcel.
  852         (e) An association or any of its members are prohibited or
  853  restricted from filing or prospectively waiving the ability to
  854  protest or seek any remedy for a violation of this chapter.
  855  
  856  Such clauses are declared null and void as against the public
  857  policy of this state.
  858         Section 12. Paragraph (e) is added to subsection (1) of
  859  section 720.308, Florida Statutes, to read:
  860         720.308 Assessments and charges.—
  861         (1) ASSESSMENTS.—For any community created after October 1,
  862  1995, the governing documents must describe the manner in which
  863  expenses are shared and specify the member’s proportional share
  864  thereof.
  865         (e) Assessments payable to the developer or other owner of
  866  a common area may not exceed the member’s proportional share of
  867  the expenses set forth in the annual budget approved by the
  868  association.
  869         Section 13. Section 720.3086, Florida Statutes, is amended
  870  to read:
  871         720.3086 Financial report.—In a residential subdivision in
  872  which the owners of lots or parcels must pay mandatory
  873  maintenance or amenity fees to the subdivision developer or to
  874  the owners of the common areas, recreational facilities, and
  875  other properties serving the lots or parcels, the developer or
  876  owner of such areas, facilities, or properties shall make
  877  public, within 60 days following the end of each fiscal year, a
  878  complete financial report of the actual, total receipts of
  879  mandatory maintenance or amenity fees received by it, and an
  880  itemized listing of the expenditures made by it from such fees,
  881  for that year. A financial report required by this section must
  882  conform to the same type of financial statement that the
  883  association serving the residential subdivision is required to
  884  prepare or cause to be prepared under s. 720.303(7)(a). Such
  885  report and a written notice that a copy of the financial report
  886  is available upon request at no charge to the parcel owner shall
  887  be made public by mailing it to each lot or parcel owner in the
  888  subdivision, by publishing it in a publication regularly
  889  distributed within the subdivision, and or by posting it in
  890  prominent locations in the subdivision. This section does not
  891  apply to amounts paid to homeowner associations pursuant to
  892  chapter 617, chapter 718, chapter 719, chapter 721, or chapter
  893  723, or to amounts paid to local governmental entities,
  894  including special districts.
  895         Section 14. This act shall take effect July 1, 2026.