Florida Senate - 2022 CS for SB 1702 By the Committee on Regulated Industries; and Senator Bradley 580-02611-22 20221702c1 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. The 114 inspector in charge of a phase two inspection must be a licensed 115 engineer or licensed architect who has a minimum of 5 years of 116 experience designing the primary structural components of 117 buildings and a minimum of 5 years of experience inspecting 118 structural components of existing buildings of a similar size, 119 scope, and type of construction. A phase two inspection may 120 involve destructive or nondestructive testing at the inspectors 121 direction. The inspection may be as extensive or as limited as 122 necessary to fully assess damaged areas of the building in order 123 to confirm that the building is safe for its intended use or to 124 recommend a program for fully assessing and repairing damaged 125 portions of the building. When determining testing locations, 126 the inspector must give preference to locations that are the 127 least disruptive and most easily repairable while still being 128 representative of the structure. An inspector who completes the 129 second phase of a milestone inspection shall prepare and submit 130 an inspection report pursuant to subsection (6). 131 (6)Upon completion of a phase one or phase two milestone 132 inspection, the architect or engineer who performed the 133 inspection must submit a sealed copy of the inspection report to 134 the building owner or, if the building is a condominium or 135 cooperative, to the board of administration of the condominium 136 or cooperative, and to the building official of the local 137 government which has jurisdiction. For a milestone inspection of 138 a condominium or cooperative, the board of administration must 139 distribute a copy of each inspection report to each condominium 140 unit owner or cooperative unit owner, regardless of whether 141 there are deficiencies reported, and, if the association is 142 required by law to have a website, must publish the report on 143 the associations website. 144 (7)A local enforcement agency may prescribe timelines and 145 penalties with respect to compliance with this section. 146 (8)The commission shall develop comprehensive structural 147 and life safety standards for maintaining and inspecting all 148 building types and structures in this state by December 31, 149 2022. The standards are in addition to those provided in this 150 section and must be made available for local governments to 151 adopt at their discretion. 152 Section 2.Paragraph (a) of subsection (12) of section 153 718.111, Florida Statutes, is amended to read: 154 718.111The association. 155 (12)OFFICIAL RECORDS. 156 (a)From the inception of the association, the association 157 shall maintain each of the following items, if applicable, which 158 constitutes the official records of the association: 159 1.A copy of the plans, permits, warranties, and other 160 items provided by the developer under s. 718.301(4). 161 2.A photocopy of the recorded declaration of condominium 162 of each condominium operated by the association and each 163 amendment to each declaration. 164 3.A photocopy of the recorded bylaws of the association 165 and each amendment to the bylaws. 166 4.A certified copy of the articles of incorporation of the 167 association, or other documents creating the association, and 168 each amendment thereto. 169 5.A copy of the current rules of the association. 170 6.A book or books that contain the minutes of all meetings 171 of the association, the board of administration, and the unit 172 owners. 173 7.A current roster of all unit owners and their mailing 174 addresses, unit identifications, voting certifications, and, if 175 known, telephone numbers. The association shall also maintain 176 the e-mail addresses and facsimile numbers of unit owners 177 consenting to receive notice by electronic transmission. The e 178 mail addresses and facsimile numbers are not accessible to unit 179 owners if consent to receive notice by electronic transmission 180 is not provided in accordance with sub-subparagraph (c)3.e. 181 However, the association is not liable for an inadvertent 182 disclosure of the e-mail address or facsimile number for 183 receiving electronic transmission of notices. 184 8.All current insurance policies of the association and 185 condominiums operated by the association. 186 9.A current copy of any management agreement, lease, or 187 other contract to which the association is a party or under 188 which the association or the unit owners have an obligation or 189 responsibility. 190 10.Bills of sale or transfer for all property owned by the 191 association. 192 11.Accounting records for the association and separate 193 accounting records for each condominium that the association 194 operates. Any person who knowingly or intentionally defaces or 195 destroys such records, or who knowingly or intentionally fails 196 to create or maintain such records, with the intent of causing 197 harm to the association or one or more of its members, is 198 personally subject to a civil penalty pursuant to s. 199 718.501(1)(d). The accounting records must include, but are not 200 limited to: 201 a.Accurate, itemized, and detailed records of all receipts 202 and expenditures. 203 b.A current account and a monthly, bimonthly, or quarterly 204 statement of the account for each unit designating the name of 205 the unit owner, the due date and amount of each assessment, the 206 amount paid on the account, and the balance due. 207 c.All audits, reviews, accounting statements, and 208 financial reports of the association or condominium. 209 d.All contracts for work to be performed. Bids for work to 210 be performed are also considered official records and must be 211 maintained by the association for at least 1 year after receipt 212 of the bid. 213 12.Ballots, sign-in sheets, voting proxies, and all other 214 papers and electronic records relating to voting by unit owners, 215 which must be maintained for 1 year from the date of the 216 election, vote, or meeting to which the document relates, 217 notwithstanding paragraph (b). 218 13.All rental records if the association is acting as 219 agent for the rental of condominium units. 220 14.A copy of the current question and answer sheet as 221 described in s. 718.504. 222 15.A copy of the inspection report as described in s. 223 718.301(4)(p). 224 16.A copy of all milestone inspection reports required by 225 s. 553.899. 226 17.Bids for materials, equipment, or services. 227 18.17.All affirmative acknowledgments made pursuant to s. 228 718.121(4)(c). 229 19.18.All other written records of the association not 230 specifically included in the foregoing which are related to the 231 operation of the association. 232 Section 3.Paragraph (c) of subsection (2) of section 233 718.503, Florida Statutes, is amended to read: 234 718.503Developer disclosure prior to sale; nondeveloper 235 unit owner disclosure prior to sale; voidability. 236 (2)NONDEVELOPER DISCLOSURE. 237 (c)Each contract entered into after July 1, 1992, for the 238 resale of a residential unit shall contain in conspicuous type 239 either: 240 1.A clause which states: THE BUYER HEREBY ACKNOWLEDGES 241 THAT BUYER HAS BEEN PROVIDED A CURRENT COPY OF THE DECLARATION 242 OF CONDOMINIUM; THE, ARTICLES OF INCORPORATION OF THE 243 ASSOCIATION; THE, BYLAWS AND RULES OF THE ASSOCIATION; ALL 244 MILESTONE INSPECTION REPORTS REQUIRED BY SECTION 553.899, 245 FLORIDA STATUTES; AND A COPY OF THE MOST RECENT YEAR-END 246 FINANCIAL INFORMATION AND FREQUENTLY ASKED QUESTIONS AND ANSWERS 247 DOCUMENT MORE THAN 3 DAYS, EXCLUDING SATURDAYS, SUNDAYS, AND 248 LEGAL HOLIDAYS, PRIOR TO EXECUTION OF THIS CONTRACT; or 249 2.A clause which states: THIS AGREEMENT IS VOIDABLE BY 250 BUYER BY DELIVERING WRITTEN NOTICE OF THE BUYERS INTENTION TO 251 CANCEL WITHIN 3 DAYS, EXCLUDING SATURDAYS, SUNDAYS, AND LEGAL 252 HOLIDAYS, AFTER THE DATE OF EXECUTION OF THIS AGREEMENT BY THE 253 BUYER AND RECEIPT BY BUYER OF A CURRENT COPY OF THE DECLARATION 254 OF CONDOMINIUM; THE, ARTICLES OF INCORPORATION; THE, BYLAWS AND 255 RULES OF THE ASSOCIATION; ALL MILESTONE INSPECTION REPORTS 256 REQUIRED BY SECTION 553.899, FLORIDA STATUTES; AND A COPY OF THE 257 MOST RECENT YEAR-END FINANCIAL INFORMATION AND FREQUENTLY ASKED 258 QUESTIONS AND ANSWERS DOCUMENT IF SO REQUESTED IN WRITING. ANY 259 PURPORTED WAIVER OF THESE VOIDABILITY RIGHTS SHALL BE OF NO 260 EFFECT. BUYER MAY EXTEND THE TIME FOR CLOSING FOR A PERIOD OF 261 NOT MORE THAN 3 DAYS, EXCLUDING SATURDAYS, SUNDAYS, AND LEGAL 262 HOLIDAYS, AFTER THE BUYER RECEIVES THE DECLARATION, ARTICLES OF 263 INCORPORATION, BYLAWS AND RULES OF THE ASSOCIATION, AND A COPY 264 OF THE MOST RECENT YEAR-END FINANCIAL INFORMATION AND FREQUENTLY 265 ASKED QUESTIONS AND ANSWERS DOCUMENT IF REQUESTED IN WRITING. 266 BUYERS RIGHT TO VOID THIS AGREEMENT SHALL TERMINATE AT CLOSING. 267 268 A contract that does not conform to the requirements of this 269 paragraph is voidable at the option of the purchaser prior to 270 closing. 271 Section 4.Paragraph (a) of subsection (2) of section 272 719.104, Florida Statutes, is amended to read: 273 719.104Cooperatives; access to units; records; financial 274 reports; assessments; purchase of leases. 275 (2)OFFICIAL RECORDS. 276 (a)From the inception of the association, the association 277 shall maintain a copy of each of the following, where 278 applicable, which shall constitute the official records of the 279 association: 280 1.The plans, permits, warranties, and other items provided 281 by the developer pursuant to s. 719.301(4). 282 2.A photocopy of the cooperative documents. 283 3.A copy of the current rules of the association. 284 4.A book or books containing the minutes of all meetings 285 of the association, of the board of directors, and of the unit 286 owners. 287 5.A current roster of all unit owners and their mailing 288 addresses, unit identifications, voting certifications, and, if 289 known, telephone numbers. The association shall also maintain 290 the e-mail addresses and the numbers designated by unit owners 291 for receiving notice sent by electronic transmission of those 292 unit owners consenting to receive notice by electronic 293 transmission. The e-mail addresses and numbers provided by unit 294 owners to receive notice by electronic transmission shall be 295 removed from association records when consent to receive notice 296 by electronic transmission is revoked. However, the association 297 is not liable for an erroneous disclosure of the e-mail address 298 or the number for receiving electronic transmission of notices. 299 6.All current insurance policies of the association. 300 7.A current copy of any management agreement, lease, or 301 other contract to which the association is a party or under 302 which the association or the unit owners have an obligation or 303 responsibility. 304 8.Bills of sale or transfer for all property owned by the 305 association. 306 9.Accounting records for the association and separate 307 accounting records for each unit it operates, according to good 308 accounting practices. The accounting records shall include, but 309 not be limited to: 310 a.Accurate, itemized, and detailed records of all receipts 311 and expenditures. 312 b.A current account and a monthly, bimonthly, or quarterly 313 statement of the account for each unit designating the name of 314 the unit owner, the due date and amount of each assessment, the 315 amount paid upon the account, and the balance due. 316 c.All audits, reviews, accounting statements, and 317 financial reports of the association. 318 d.All contracts for work to be performed. Bids for work to 319 be performed shall also be considered official records and shall 320 be maintained for a period of 1 year. 321 10.Ballots, sign-in sheets, voting proxies, and all other 322 papers and electronic records relating to voting by unit owners, 323 which shall be maintained for a period of 1 year after the date 324 of the election, vote, or meeting to which the document relates. 325 11.All rental records where the association is acting as 326 agent for the rental of units. 327 12.A copy of the current question and answer sheet as 328 described in s. 719.504. 329 13.All affirmative acknowledgments made pursuant to s. 330 719.108(3)(b)3. 331 14.All milestone inspection reports required by s. 332 553.899. 333 15.All other written records of the association not 334 specifically included in the foregoing which are related to the 335 operation of the association. 336 Section 5.Paragraph (a) of subsection (2) of section 337 719.503, Florida Statutes, is amended to read: 338 719.503Disclosure prior to sale. 339 (2)NONDEVELOPER DISCLOSURE. 340 (a)Each unit owner who is not a developer as defined by 341 this chapter must comply with the provisions of this subsection 342 prior to the sale of his or her interest in the association. 343 Each prospective purchaser who has entered into a contract for 344 the purchase of an interest in a cooperative is entitled, at the 345 sellers expense, to a current copy of the articles of 346 incorporation of the association, the bylaws, and rules of the 347 association, as well as a copy of the question and answer sheet 348 as provided in s. 719.504 and all milestone inspection reports 349 required by s. 553.899. 350 Section 6.This act shall take effect July 1, 2022.