Florida Senate - 2022 SB 1702 By Senator Bradley 5-01086B-22 20221702__ 1 A bill to be entitled 2 An act relating to mandatory building inspections; 3 creating s. 553.899, F.S.; providing legislative 4 findings; defining the term milestone inspection; 5 specifying that the purpose of a milestone inspection 6 is not to determine compliance with the Florida 7 Building Code; requiring owners of certain multifamily 8 residential buildings to have milestone inspections 9 performed at specified times; requiring the boards of 10 administration for condominium and cooperative 11 associations to arrange for milestone inspections of 12 condominium buildings and cooperative buildings, 13 respectively; specifying that such associations are 14 responsible for costs relating to milestone 15 inspections; providing applicability; requiring that 16 initial milestone inspections for certain buildings be 17 performed before a specified date; specifying that 18 milestone inspections consist of two phases; providing 19 requirements for each phase of a milestone inspection; 20 requiring architects and engineers performing a 21 milestone inspection to submit a sealed copy of the 22 inspection report to certain entities; requiring 23 boards of administrations of condominium associations 24 and cooperative associations to distribute a copy of 25 each inspection report for a condominium building or 26 cooperative building to unit owners and publish the 27 report on the associations website under certain 28 circumstances; authorizing local enforcement agencies 29 to prescribe timelines and penalties relating to 30 milestone inspections; requiring the Florida Building 31 Commission to develop certain standards by a specified 32 date and make such standards available to local 33 governments for adoption; amending s. 718.111, F.S.; 34 revising the types of records that constitute the 35 official records of a condominium association; 36 amending s. 718.503, F.S.; revising nondeveloper 37 disclosure requirements relating to resales of 38 residential condominium units; amending s. 719.104, 39 F.S.; revising the types of records that constitute 40 the official records of a cooperative association; 41 amending s. 719.503, F.S.; entitling prospective 42 purchasers of an interest in a cooperative to a copy 43 of milestone inspection reports; providing an 44 effective date. 45 46 Be It Enacted by the Legislature of the State of Florida: 47 48 Section 1.Section 553.899, Florida Statutes, is created to 49 read: 50 553.899Mandatory structural inspections for multifamily 51 residential buildings. 52 (1)The Legislature finds that maintaining the structural 53 integrity of a building throughout its service life is of 54 paramount importance in order to ensure that buildings are 55 structurally sound so as to not pose a threat to the public 56 health, safety, or welfare. As such, the Legislature finds that 57 the imposition of a statewide structural inspection program for 58 aging multifamily residential buildings in this state is 59 necessary to ensure that such buildings are safe for continued 60 use. 61 (2)As used in this section, the term milestone 62 inspection means a structural inspection of a building by a 63 licensed architect or engineer authorized to practice in this 64 state for the purposes of attesting to the life safety and 65 adequacy of the structural components of the building and, to 66 the extent reasonably possible, determining the general 67 structural condition of the building as it affects the safety of 68 such building. The purpose of such inspection is not to 69 determine if the condition of an existing building is in 70 compliance with the Florida Building Code. 71 (3)The owner of a multifamily residential building that is 72 greater than three stories in height must have a milestone 73 inspection performed by December 31 of the year in which the 74 building reaches 30 years of age, based on the date the 75 certificate of occupancy was issued, and every 10 years 76 thereafter. The owner of a multifamily residential building that 77 is greater than three stories in height and is located within 3 78 miles of a coastline as defined in s. 376.031 must have a 79 milestone inspection performed by December 31 of the year in 80 which the building reaches 20 years of age, based on the date 81 the certificate of occupancy was issued, and every 7 years 82 thereafter. If a condominium building or cooperative building is 83 required to have a milestone inspection performed pursuant to 84 this section, the board of administration of the condominium 85 association or cooperative association must arrange for the 86 milestone inspection to be performed and is responsible for 87 ensuring compliance with the requirements of this section. The 88 building owner or board of administration of a condominium 89 association or cooperative association responsible for the 90 milestone inspection is responsible for all costs associated 91 with the inspection. This subsection does not apply to two 92 family dwellings or to buildings less than 3,500 square feet. 93 (4)If a milestone inspection is required under this 94 section and the buildings certificate of occupancy was issued 95 on or before July 1, 1992, the buildings initial milestone 96 inspection must be performed before December 31, 2024. 97 (5)A milestone inspection consists of two phases: 98 (a)For phase one of the milestone inspection, a licensed 99 architect or engineer authorized to practice in this state shall 100 perform a visual examination of all habitable and nonhabitable 101 areas of a building and provide a qualitative assessment of the 102 structural conditions of the building. Surface imperfections 103 such as cracks, distortion, sagging, excessive deflections, 104 significant misalignment, signs of leakage, or peeling of 105 finishes constitute signs of structural distress. If the 106 architect or engineer finds no signs of structural distress to 107 any building components under visual examination, phase two of 108 the inspection, as provided in paragraph (b), is not required. 109 An architect or engineer who completes the first phase of a 110 milestone inspection shall prepare and submit an inspection 111 report pursuant to subsection (6). 112 (b)Phase two of the milestone inspection must be performed 113 if any structural distress is identified during phase one. Only 114 a special inspector as defined in s. 553.71 may perform a phase 115 two inspection. A phase two inspection may involve destructive 116 or nondestructive testing at the special inspectors direction. 117 The inspection may be as extensive or as limited as necessary to 118 fully assess damaged areas of the building in order to confirm 119 that the building is safe for its intended use or to recommend a 120 program for fully assessing and repairing damaged portions of 121 the building. When determining testing locations, the special 122 inspector must give preference to locations that are the least 123 disruptive and most easily repairable while still being 124 representative of the structure. A special inspector who 125 completes the second phase of a milestone inspection shall 126 prepare and submit an inspection report pursuant to subsection 127 (6). 128 (6)Upon completion of a phase one or phase two milestone 129 inspection, the architect or engineer who performed the 130 inspection must submit a sealed copy of the inspection report to 131 the building owner or, if the building is a condominium or 132 cooperative, to the board of administration of the condominium 133 or cooperative, and to the building official of the local 134 government which has jurisdiction. For a milestone inspection of 135 a condominium or cooperative, the board of administration must 136 distribute a copy of each inspection report to each condominium 137 unit owner or cooperative unit owner, regardless of whether 138 there are deficiencies reported, and, if the association is 139 required by law to have a website, must publish the report on 140 the associations website. 141 (7)A local enforcement agency may prescribe timelines and 142 penalties with respect to compliance with this section. 143 (8)The commission shall develop comprehensive structural 144 and life safety standards for maintaining and inspecting all 145 building types and structures in this state by December 31, 146 2022. The standards are in addition to those provided in this 147 section and must be made available for local governments to 148 adopt at their discretion. 149 Section 2.Paragraph (a) of subsection (12) of section 150 718.111, Florida Statutes, is amended to read: 151 718.111The association. 152 (12)OFFICIAL RECORDS. 153 (a)From the inception of the association, the association 154 shall maintain each of the following items, if applicable, which 155 constitutes the official records of the association: 156 1.A copy of the plans, permits, warranties, and other 157 items provided by the developer under s. 718.301(4). 158 2.A photocopy of the recorded declaration of condominium 159 of each condominium operated by the association and each 160 amendment to each declaration. 161 3.A photocopy of the recorded bylaws of the association 162 and each amendment to the bylaws. 163 4.A certified copy of the articles of incorporation of the 164 association, or other documents creating the association, and 165 each amendment thereto. 166 5.A copy of the current rules of the association. 167 6.A book or books that contain the minutes of all meetings 168 of the association, the board of administration, and the unit 169 owners. 170 7.A current roster of all unit owners and their mailing 171 addresses, unit identifications, voting certifications, and, if 172 known, telephone numbers. The association shall also maintain 173 the e-mail addresses and facsimile numbers of unit owners 174 consenting to receive notice by electronic transmission. The e 175 mail addresses and facsimile numbers are not accessible to unit 176 owners if consent to receive notice by electronic transmission 177 is not provided in accordance with sub-subparagraph (c)3.e. 178 However, the association is not liable for an inadvertent 179 disclosure of the e-mail address or facsimile number for 180 receiving electronic transmission of notices. 181 8.All current insurance policies of the association and 182 condominiums operated by the association. 183 9.A current copy of any management agreement, lease, or 184 other contract to which the association is a party or under 185 which the association or the unit owners have an obligation or 186 responsibility. 187 10.Bills of sale or transfer for all property owned by the 188 association. 189 11.Accounting records for the association and separate 190 accounting records for each condominium that the association 191 operates. Any person who knowingly or intentionally defaces or 192 destroys such records, or who knowingly or intentionally fails 193 to create or maintain such records, with the intent of causing 194 harm to the association or one or more of its members, is 195 personally subject to a civil penalty pursuant to s. 196 718.501(1)(d). The accounting records must include, but are not 197 limited to: 198 a.Accurate, itemized, and detailed records of all receipts 199 and expenditures. 200 b.A current account and a monthly, bimonthly, or quarterly 201 statement of the account for each unit designating the name of 202 the unit owner, the due date and amount of each assessment, the 203 amount paid on the account, and the balance due. 204 c.All audits, reviews, accounting statements, and 205 financial reports of the association or condominium. 206 d.All contracts for work to be performed. Bids for work to 207 be performed are also considered official records and must be 208 maintained by the association for at least 1 year after receipt 209 of the bid. 210 12.Ballots, sign-in sheets, voting proxies, and all other 211 papers and electronic records relating to voting by unit owners, 212 which must be maintained for 1 year from the date of the 213 election, vote, or meeting to which the document relates, 214 notwithstanding paragraph (b). 215 13.All rental records if the association is acting as 216 agent for the rental of condominium units. 217 14.A copy of the current question and answer sheet as 218 described in s. 718.504. 219 15.A copy of the inspection report as described in s. 220 718.301(4)(p). 221 16.A copy of all milestone inspection reports required by 222 s. 553.899. 223 17.Bids for materials, equipment, or services. 224 18.17.All affirmative acknowledgments made pursuant to s. 225 718.121(4)(c). 226 19.18.All other written records of the association not 227 specifically included in the foregoing which are related to the 228 operation of the association. 229 Section 3.Paragraph (c) of subsection (2) of section 230 718.503, Florida Statutes, is amended to read: 231 718.503Developer disclosure prior to sale; nondeveloper 232 unit owner disclosure prior to sale; voidability. 233 (2)NONDEVELOPER DISCLOSURE. 234 (c)Each contract entered into after July 1, 1992, for the 235 resale of a residential unit shall contain in conspicuous type 236 either: 237 1.A clause which states: THE BUYER HEREBY ACKNOWLEDGES 238 THAT BUYER HAS BEEN PROVIDED A CURRENT COPY OF THE DECLARATION 239 OF CONDOMINIUM; THE, ARTICLES OF INCORPORATION OF THE 240 ASSOCIATION; THE, BYLAWS AND RULES OF THE ASSOCIATION; ALL 241 MILESTONE INSPECTION REPORTS REQUIRED BY SECTION 553.899, 242 FLORIDA STATUTES; AND A COPY OF THE MOST RECENT YEAR-END 243 FINANCIAL INFORMATION AND FREQUENTLY ASKED QUESTIONS AND ANSWERS 244 DOCUMENT MORE THAN 3 DAYS, EXCLUDING SATURDAYS, SUNDAYS, AND 245 LEGAL HOLIDAYS, PRIOR TO EXECUTION OF THIS CONTRACT; or 246 2.A clause which states: THIS AGREEMENT IS VOIDABLE BY 247 BUYER BY DELIVERING WRITTEN NOTICE OF THE BUYERS INTENTION TO 248 CANCEL WITHIN 3 DAYS, EXCLUDING SATURDAYS, SUNDAYS, AND LEGAL 249 HOLIDAYS, AFTER THE DATE OF EXECUTION OF THIS AGREEMENT BY THE 250 BUYER AND RECEIPT BY BUYER OF A CURRENT COPY OF THE DECLARATION 251 OF CONDOMINIUM; THE, ARTICLES OF INCORPORATION; THE, BYLAWS AND 252 RULES OF THE ASSOCIATION; ALL MILESTONE INSPECTION REPORTS 253 REQUIRED BY SECTION 553.899, FLORIDA STATUTES; AND A COPY OF THE 254 MOST RECENT YEAR-END FINANCIAL INFORMATION AND FREQUENTLY ASKED 255 QUESTIONS AND ANSWERS DOCUMENT IF SO REQUESTED IN WRITING. ANY 256 PURPORTED WAIVER OF THESE VOIDABILITY RIGHTS SHALL BE OF NO 257 EFFECT. BUYER MAY EXTEND THE TIME FOR CLOSING FOR A PERIOD OF 258 NOT MORE THAN 3 DAYS, EXCLUDING SATURDAYS, SUNDAYS, AND LEGAL 259 HOLIDAYS, AFTER THE BUYER RECEIVES THE DECLARATION, ARTICLES OF 260 INCORPORATION, BYLAWS AND RULES OF THE ASSOCIATION, AND A COPY 261 OF THE MOST RECENT YEAR-END FINANCIAL INFORMATION AND FREQUENTLY 262 ASKED QUESTIONS AND ANSWERS DOCUMENT IF REQUESTED IN WRITING. 263 BUYERS RIGHT TO VOID THIS AGREEMENT SHALL TERMINATE AT CLOSING. 264 265 A contract that does not conform to the requirements of this 266 paragraph is voidable at the option of the purchaser prior to 267 closing. 268 Section 4.Paragraph (a) of subsection (2) of section 269 719.104, Florida Statutes, is amended to read: 270 719.104Cooperatives; access to units; records; financial 271 reports; assessments; purchase of leases. 272 (2)OFFICIAL RECORDS. 273 (a)From the inception of the association, the association 274 shall maintain a copy of each of the following, where 275 applicable, which shall constitute the official records of the 276 association: 277 1.The plans, permits, warranties, and other items provided 278 by the developer pursuant to s. 719.301(4). 279 2.A photocopy of the cooperative documents. 280 3.A copy of the current rules of the association. 281 4.A book or books containing the minutes of all meetings 282 of the association, of the board of directors, and of the unit 283 owners. 284 5.A current roster of all unit owners and their mailing 285 addresses, unit identifications, voting certifications, and, if 286 known, telephone numbers. The association shall also maintain 287 the e-mail addresses and the numbers designated by unit owners 288 for receiving notice sent by electronic transmission of those 289 unit owners consenting to receive notice by electronic 290 transmission. The e-mail addresses and numbers provided by unit 291 owners to receive notice by electronic transmission shall be 292 removed from association records when consent to receive notice 293 by electronic transmission is revoked. However, the association 294 is not liable for an erroneous disclosure of the e-mail address 295 or the number for receiving electronic transmission of notices. 296 6.All current insurance policies of the association. 297 7.A current copy of any management agreement, lease, or 298 other contract to which the association is a party or under 299 which the association or the unit owners have an obligation or 300 responsibility. 301 8.Bills of sale or transfer for all property owned by the 302 association. 303 9.Accounting records for the association and separate 304 accounting records for each unit it operates, according to good 305 accounting practices. The accounting records shall include, but 306 not be limited to: 307 a.Accurate, itemized, and detailed records of all receipts 308 and expenditures. 309 b.A current account and a monthly, bimonthly, or quarterly 310 statement of the account for each unit designating the name of 311 the unit owner, the due date and amount of each assessment, the 312 amount paid upon the account, and the balance due. 313 c.All audits, reviews, accounting statements, and 314 financial reports of the association. 315 d.All contracts for work to be performed. Bids for work to 316 be performed shall also be considered official records and shall 317 be maintained for a period of 1 year. 318 10.Ballots, sign-in sheets, voting proxies, and all other 319 papers and electronic records relating to voting by unit owners, 320 which shall be maintained for a period of 1 year after the date 321 of the election, vote, or meeting to which the document relates. 322 11.All rental records where the association is acting as 323 agent for the rental of units. 324 12.A copy of the current question and answer sheet as 325 described in s. 719.504. 326 13.All affirmative acknowledgments made pursuant to s. 327 719.108(3)(b)3. 328 14.All milestone inspection reports required by s. 329 553.899. 330 15.All other written records of the association not 331 specifically included in the foregoing which are related to the 332 operation of the association. 333 Section 5.Paragraph (a) of subsection (2) of section 334 719.503, Florida Statutes, is amended to read: 335 719.503Disclosure prior to sale. 336 (2)NONDEVELOPER DISCLOSURE. 337 (a)Each unit owner who is not a developer as defined by 338 this chapter must comply with the provisions of this subsection 339 prior to the sale of his or her interest in the association. 340 Each prospective purchaser who has entered into a contract for 341 the purchase of an interest in a cooperative is entitled, at the 342 sellers expense, to a current copy of the articles of 343 incorporation of the association, the bylaws, and rules of the 344 association, as well as a copy of the question and answer sheet 345 as provided in s. 719.504 and all milestone inspection reports 346 required by s. 553.899. 347 Section 6.This act shall take effect July 1, 2022.