HB 1395 2023 CODING: Words stricken are deletions; words underlined are additions. hb1395-00 Page 1 of 47 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S A bill to be entitled 1 An act relating to the management and safety of 2 condominium and cooperative buildings; amending s. 3 468.4334, F.S.; revising professional practice 4 standards for community association managers and 5 community association management firms; amending s. 6 553.899, F.S.; revising legislative findings; revising 7 definitions; requiring condominium associations and 8 cooperative associations to have milestone inspections 9 performed on certain buildings after they reach 25 10 years of age; removing provisions relating to certai n 11 buildings located near coastlines; revising the date 12 on which a building's certificate of occupancy was 13 issued to trigger the requirement of a milestone 14 inspection; authorizing an extension of the deadline 15 for the completion of a milestone inspection und er 16 certain circumstances; requiring certain notice be 17 given to unit owners within a specified time period; 18 authorizing additional persons to conduct phase one 19 inspections; specifying the only persons authorized to 20 conduct phase two inspections; requiring c ertain 21 associations to enter into contracts with certain 22 persons within a specified timeframe; requiring that a 23 phase two inspection begin within a specified 24 timeframe; requiring certain inspection reports to 25 HB 1395 2023 CODING: Words stricken are deletions; words underlined are additions. hb1395-00 Page 2 of 47 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S bear certain attestations; authorizing the gove rning 26 body of a municipality to adopt certain ordinances; 27 removing a specified review by the Florida Building 28 Commission; removing the requirement that the 29 commission submit a certain report to the Governor and 30 Legislature by a specified date; requiring th e 31 commission to create standardized milestone inspection 32 forms; authorizing local enforcement agencies to 33 develop their own forms and requirements; conforming 34 provisions to changes made by the act; amending ss. 35 718.103 and 719.103, F.S.; revising the defin ition of 36 "structural integrity reserve study"; amending ss. 37 718.112 and 719.106, F.S.; requiring certain items 38 that will require maintenance, repair, or replacement 39 within a certain timeframe to be included in reserve 40 accounts; removing a date by which cer tain structural 41 integrity reserve studies must be completed; providing 42 an exception to the requirement of a structural 43 integrity reserve study; requiring certain 44 associations' budgets to include reserves, in an 45 amount determined by a specified study, for c ertain 46 items; requiring the structural integrity reserve 47 study to include exterior doors; authorizing certain 48 inspections to be used in place of other inspections 49 under certain circumstances; requiring that the 50 HB 1395 2023 CODING: Words stricken are deletions; words underlined are additions. hb1395-00 Page 3 of 47 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S inspector-prepared summary of the inspection report be 51 provided to certain persons within a specified time 52 period; conforming provisions to changes made by the 53 act; amending s. 718.1255, F.S.; revising the 54 definition of a "dispute" for purposes of alternative 55 dispute resolution; requiring certain dis putes to be 56 submitted to presuit mediation; creating ss. 718.13 57 and 719.132, F.S.; authorizing unit owners and certain 58 entities to file an action in court for certain 59 injunctive relief; amending ss. 718.301 and 719.301, 60 F.S.; conforming provisions to chang es made by the 61 act; amending ss. 718.503 and 719.503, F.S.; requiring 62 that certain provisions be included in certain 63 contracts entered into after specified dates under 64 certain circumstances; conforming provisions to 65 changes made by the act; providing effec tive dates. 66 67 Be It Enacted by the Legislature of the State of Florida: 68 69 Section 1. Paragraph (b) of subsection (1) of section 70 468.4334, Florida Statutes, is amended to read: 71 468.4334 Professional practice standards; liability. — 72 (1) 73 (b) If a community association manager or a community 74 association management firm has a contract with a community 75 HB 1395 2023 CODING: Words stricken are deletions; words underlined are additions. hb1395-00 Page 4 of 47 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S association that has a building on the association's property 76 that is subject to s. 553.899, the community association manager 77 or the community associati on management firm must comply with 78 that section as directed by the board. 79 Section 2. Subsection (13) of section 553.899, Florida 80 Statutes, is renumbered as subsection (12), subsections (1) 81 through (8) and (11) and present subsection (12) are amended, 82 and a new subsection (13) is added to that section, to read: 83 553.899 Mandatory structural inspections for condominium 84 and cooperative buildings. — 85 (1) The Legislature finds that maintaining the structural 86 integrity of a building throughout the its service life of the 87 building is of paramount importance in order to ensure that 88 buildings are structurally sound so as to not pose a threat to 89 the public health, safety, or welfare. As such, the Legislature 90 finds that the imposition of a statewide structural in spection 91 program for aging condominium and cooperative buildings in this 92 state is necessary to ensure that such buildings are safe for 93 continued use. 94 (2) As used in this section, the terms: 95 (a) "Milestone inspection" means a structural inspection 96 of a building, including an inspection of load -bearing elements 97 walls and the primary structural members and primary structural 98 systems as those terms are defined in s. 627.706 . Phase one of 99 the milestone inspection must be performed , by a general 100 HB 1395 2023 CODING: Words stricken are deletions; words underlined are additions. hb1395-00 Page 5 of 47 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S contractor licensed under chapter 489 with at least 5 years' 101 experience building or constructing threshold buildings, a 102 building code administrator or building code inspector licensed 103 under part XII of chapter 468 with at least 5 years' experience 104 inspecting threshold buildings, or by a licensed architect or 105 engineer authorized to practice in this state . Phase two of the 106 milestone inspection must be performed by a licensed architect 107 or engineer authorized to practice in this state. Such 108 structural inspection must be com pleted with the purpose for the 109 purposes of attesting to the life safety and adequacy of the 110 structural components of the building and, to the extent 111 reasonably possible, determining the general structural 112 condition of the building as it affects the safety of such 113 building, including a determination of any necessary 114 maintenance, repair, or replacement of any structural component 115 of the building. The purpose of such inspection is not to 116 determine if the condition of an existing building is in 117 compliance with the Florida Building Code or the firesafety 118 code. 119 (b) "Substantial structural deterioration" means 120 substantial structural distress or a substantial structural 121 weakness that negatively affects a building's general structural 122 condition and integrity. The term does not include surface 123 imperfections such as cracks, distortion, sagging, deflections, 124 misalignment, signs of leakage, or peeling of finishes unless 125 HB 1395 2023 CODING: Words stricken are deletions; words underlined are additions. hb1395-00 Page 6 of 47 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S the licensed general contractor, building code administrator, 126 building code inspector, engineer, or architect performing the 127 phase one or phase two inspection determines that such surface 128 imperfections are a sign of substantial structural 129 deterioration. 130 (3) A condominium association under chapter 718 and a 131 cooperative association under chapter 719 must have a milestone 132 inspection performed for each building that is three stories or 133 more in height by December 31 of the year in which the building 134 reaches 25 30 years of age, based on the date the certificate of 135 occupancy for the building was issued, and ev ery 10 years 136 thereafter. If the building is located within 3 miles of a 137 coastline as defined in s. 376.031, the condominium association 138 or cooperative association must have a milestone inspection 139 performed by December 31 of the year in which the building 140 reaches 25 years of age, based on the date the certificate of 141 occupancy for the building was issued, and every 10 years 142 thereafter. The condominium association or cooperative 143 association must arrange for the milestone inspection to be 144 performed and is respo nsible for ensuring compliance with the 145 requirements of this section. The condominium association or 146 cooperative association is responsible for all costs associated 147 with the inspection. This subsection does not apply to 148 associations that only include a single-family, two-family, or 149 three-family dwellings dwelling with three or fewer habitable 150 HB 1395 2023 CODING: Words stricken are deletions; words underlined are additions. hb1395-00 Page 7 of 47 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S stories above ground. 151 (4) If a milestone inspection is required under this 152 section and the building's certificate of occupancy was issued 153 on or before December 31, 1994 July 1, 1992, the building's 154 initial milestone inspection must be performed before December 155 31, 2024. If a milestone inspection is required under this 156 section and the building's certificate of occupancy was issued 157 during the period of January 1, 1995, through December 31, 2000, 158 the building's initial milestone inspection must be performed 159 before December 31, 2026. The local enforcement agency may 160 extend the deadline for a building's initial milestone 161 inspection upon a showing of good cause by the condom inium or 162 cooperative association that the association has entered into a 163 contract for the performance of the milestone inspection but 164 that the inspection cannot reasonably be completed before the 165 deadline. If the date of issuance for the certificate of 166 occupancy is not available, the date of issuance of the 167 building's certificate of occupancy shall be the date of 168 occupancy evidenced in any record of the local building 169 official. 170 (5) Upon determining that a building must have a milestone 171 inspection, the local enforcement agency must provide written 172 notice of such required inspection to the condominium 173 association or cooperative association by certified mail, return 174 receipt requested. The condominium or cooperative association 175 HB 1395 2023 CODING: Words stricken are deletions; words underlined are additions. hb1395-00 Page 8 of 47 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S must notify the unit owners of the required milestone inspection 176 within 14 days after receipt of the written notice from the 177 local enforcement agency and provide the date that the milestone 178 inspection must be completed. 179 (6) Within 180 days after receiving the written notice 180 under subsection (5), the condominium association or cooperative 181 association must complete phase one of the milestone inspection. 182 For purposes of this section, completion of phase one of t he 183 milestone inspection means the licensed general contractor, 184 building code administrator, building code inspector, engineer, 185 or architect who performed the phase one inspection submitted 186 the inspection report by e -mail, United States Postal Service, 187 or commercial delivery service to the local enforcement agency. 188 (7) A milestone inspection consists of two phases: 189 (a) For phase one of the milestone inspection, a general 190 contractor licensed under chapter 489 with at least 5 years' 191 experience building or constructing threshold buildings, a 192 building code administrator or building code inspector licensed 193 under part XII of chapter 468 with at least 5 years' experience 194 inspecting threshold buildings, or a licensed architect or 195 engineer authorized to practice i n this state shall perform a 196 visual examination of habitable and nonhabitable areas of a 197 building, including the major structural components of a 198 building, and provide a qualitative assessment of the structural 199 conditions of the building. If the general contractor, building 200 HB 1395 2023 CODING: Words stricken are deletions; words underlined are additions. hb1395-00 Page 9 of 47 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S code administrator, building code inspector, architect, or 201 engineer finds no signs of substantial structural deterioration 202 to any building components under visual examination, phase two 203 of the inspection, as provided in paragraph (b), is not 204 required. A general contractor, a building code administrator, a 205 building code inspector, an architect, or an engineer who 206 completes a phase one milestone inspection shall prepare and 207 submit an inspection report pursuant to subsection (8). 208 (b) A phase two of the milestone inspection must be 209 performed if any substantial structural deterioration is 210 identified during phase one. Only a licensed architect or 211 engineer authorized to practice in this state may perform a 212 phase two milestone inspection. If a p hase two inspection is 213 required, the association must contract, within 90 days after 214 receipt of the phase one inspection report, with a licensed 215 architect or engineer to perform the phase two inspection. The 216 licensed architect or engineer contracted with t o perform the 217 inspection must begin the phase two inspection within 90 days 218 after entering into a contract with the association. A phase two 219 inspection may involve destructive or nondestructive testing at 220 the inspector's direction. The inspection may be as extensive or 221 as limited as necessary to fully assess areas of structural 222 distress in order to confirm that the building is structurally 223 sound and safe for its intended use and to recommend a program 224 for fully assessing and repairing distressed and damaged 225 HB 1395 2023 CODING: Words stricken are deletions; words underlined are additions. hb1395-00 Page 10 of 47 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S portions of the building. When determining testing locations, 226 the inspector must give preference to locations that are the 227 least disruptive and most easily repairable while still being 228 representative of the structure. An inspector who completes a 229 phase two milestone inspection shall prepare and submit an 230 inspection report pursuant to subsection (8). 231 (8) Upon completion of a phase one or phase two milestone 232 inspection, the general contractor, building code administrator, 233 building code inspector, architect, or engineer who performed 234 the inspection must submit a copy, or a sealed copy, if 235 applicable, of the inspection report with a separate summary of, 236 at minimum, the material findings and recommendations in the 237 inspection report to the condominium associati on or cooperative 238 association, and to the building official of the local 239 government which has jurisdiction. The inspection report must, 240 at a minimum, meet all of the following criteria: 241 (a)1. Bear an attestation and signature, or electronic 242 signature, of the licensed general contractor, building code 243 administrator, or building code inspector who performed the 244 inspection; or 245 2. Bear the seal and signature, or the electronic 246 signature, of the licensed engineer or architect who performed 247 the inspection, 248 249 indicating that such report complies with the statutory 250 HB 1395 2023 CODING: Words stricken are deletions; words underlined are additions. hb1395-00 Page 11 of 47 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S requirements for the inspection . 251 (b) Indicate the manner and type of inspection forming the 252 basis for the inspection report. 253 (c) Identify any substantial structural deterioration, 254 within a reasonable professional probability based on the scope 255 of the inspection, describe the extent of such deterioration, 256 and identify any recommended repairs for such deterioration. 257 (d) State whether unsafe or dangerous conditions, as those 258 terms are defined in the Florida Building Code, were observed. 259 (e) Recommend any remedial or preventive repair for any 260 items that are damaged but are not substantial structural 261 deterioration. 262 (f) Identify and describe any items requiring further 263 inspection. 264 (11) A board of county commissioners or the governing body 265 of a municipality may adopt an ordinance requiring that a 266 condominium or cooperative association schedule or commence 267 repairs for substantial structural deterioration within a 268 specified timeframe after the local e nforcement agency receives 269 a phase two inspection report; however, such repairs must be 270 commenced within 365 days after receiving such report. If an 271 association fails to submit proof to the local enforcement 272 agency that repairs have been scheduled or have commenced for 273 substantial structural deterioration identified in a phase two 274 inspection report within the required timeframe, the local 275 HB 1395 2023 CODING: Words stricken are deletions; words underlined are additions. hb1395-00 Page 12 of 47 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S enforcement agency must review and determine if the building is 276 unsafe for human occupancy. 277 (12) The Florida Building Commission shall review the 278 milestone inspection requirements under this section and make 279 recommendations, if any, to the Legislature to ensure 280 inspections are sufficient to determine the structural integrity 281 of a building. The commission must provide a wr itten report of 282 any recommendations to the Governor, the President of the 283 Senate, and the Speaker of the House of Representatives by 284 December 31, 2022. 285 (13) The Florida Building Commission shall create a 286 standardized milestone inspection report form for the submission 287 of such reports to local enforcement agencies by general 288 contractors, building code administrators, building code 289 inspectors, engineers, and architects. Local enforcement 290 agencies may develop their own forms and requirements and are 291 not required to use the commission's standardized forms. 292 Section 3. Subsection (25) of section 718.103, Florida 293 Statutes, is amended to read: 294 718.103 Definitions. —As used in this chapter, the term: 295 (25) "Structural integrity reserve study" means a study of 296 the reserve funds required for future major repairs and 297 replacement of the common areas based on a visual inspection of 298 the common areas. A structural integrity reserve study may be 299 performed by any person qualified to perform such study. 300 HB 1395 2023 CODING: Words stricken are deletions; words underlined are additions. hb1395-00 Page 13 of 47 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S However, the visual inspection portion of the structural 301 integrity reserve study must be performed by an engineer 302 licensed under chapter 471 , a general contractor licensed under 303 chapter 489 with at least 5 years' experience building or 304 constructing threshold buildings as defined in s. 553.71, a 305 building code administrator or building code inspector licensed 306 under part XII of chapter 468 with at least 5 years' experience 307 inspecting threshold buildings as defined in s. 553.71, or an 308 architect licensed under chapter 481. At a minimum, a structural 309 integrity reserve study must identify the common areas being 310 visually inspected, state the estimated remaining useful life 311 and the estimated replacement cost or deferred maintenance 312 expense of the common areas being visually inspecte d, and 313 provide a recommended annual reserve amount that achieves the 314 estimated replacement cost or deferred maintenance expense of 315 each common area being visually inspected by the end of the 316 estimated remaining useful life of each common area. 317 Section 4. Paragraphs (f), (g), and (h) of subsection (2) 318 of section 718.112, Florida Statutes, are amended to read: 319 718.112 Bylaws.— 320 (2) REQUIRED PROVISIONS. —The bylaws shall provide for the 321 following and, if they do not do so, shall be deemed to include 322 the following: 323 (f) Annual budget.— 324 1. The proposed annual budget of estimated revenues and 325 HB 1395 2023 CODING: Words stricken are deletions; words underlined are additions. hb1395-00 Page 14 of 47 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S expenses must be detailed and must show the amounts budgeted by 326 accounts and expense classifications, including, at a minimum, 327 any applicable expenses listed in s. 7 18.504(21). The board 328 shall adopt the annual budget at least 14 days before the start 329 of the association's fiscal year. In the event that the board 330 fails to timely adopt the annual budget a second time, it is 331 deemed a minor violation and the prior year's b udget shall 332 continue in effect until a new budget is adopted. A 333 multicondominium association must adopt a separate budget of 334 common expenses for each condominium the association operates 335 and must adopt a separate budget of common expenses for the 336 association. In addition, if the association maintains limited 337 common elements with the cost to be shared only by those 338 entitled to use the limited common elements as provided for in 339 s. 718.113(1), the budget or a schedule attached to it must show 340 the amount budgeted for this maintenance. If, after turnover of 341 control of the association to the unit owners, any of the 342 expenses listed in s. 718.504(21) are not applicable, they do 343 not need to be listed. 344 2.a. In addition to annual operating expenses, the budget 345 must include reserve accounts for capital expenditures and 346 deferred maintenance. These accounts must include, but are not 347 limited to, roof replacement, building painting, and pavement 348 resurfacing, regardless of the amount of deferred maintenance 349 expense or replacement cost, and any other item that has a 350 HB 1395 2023 CODING: Words stricken are deletions; words underlined are additions. hb1395-00 Page 15 of 47 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S deferred maintenance expense or replacement cost that exceeds 351 $10,000, and those items listed in paragraph (g) that will 352 require maintenance, repair, or replacement within the next 25 353 years. The amount to be reser ved for an item is determined by 354 the association's most recent structural integrity reserve study 355 that must be completed as provided in paragraph (g) by December 356 31, 2024. If the amount to be reserved for an item is not in the 357 association's initial or most recent structural integrity 358 reserve study or the association has not completed a structural 359 integrity reserve study, the amount must be computed using a 360 formula based upon estimated remaining useful life and estimated 361 replacement cost or deferred maintena nce expense of the reserve 362 item. However, any item with a remaining useful life greater 363 than 25 years is not required to be included in the study. If an 364 association is required to complete a structural integrity 365 reserve study, the association's budget must maintain reserves, 366 in the amount recommended in the association's most recent 367 structural integrity reserve study, for the items listed in 368 paragraph (g). The association may adjust replacement reserve 369 assessments annually to take into account any changes i n 370 estimates or extension of the useful life of a reserve item 371 caused by deferred maintenance. The members of a unit -owner-372 controlled association may determine, by a majority vote at a 373 duly called meeting of the association, to provide no reserves 374 or less reserves than required by this subsection. Effective 375 HB 1395 2023 CODING: Words stricken are deletions; words underlined are additions. hb1395-00 Page 16 of 47 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S December 31, 2024, the members of a unit -owner-controlled 376 association may not determine to provide no reserves or less 377 reserves than required by this subsection for items listed in 378 paragraph (g). 379 b. Before turnover of control of an association by a 380 developer to unit owners other than a developer under s. 381 718.301, the developer -controlled association may not vote to 382 waive the reserves or reduce funding of the reserves. If a 383 meeting of the unit owners has been called to determine whether 384 to waive or reduce the funding of reserves and no such result is 385 achieved or a quorum is not attained, the reserves included in 386 the budget shall go into effect. After the turnover, the 387 developer may vote its voting interest to waive or reduce the 388 funding of reserves. 389 3. Reserve funds and any interest accruing thereon shall 390 remain in the reserve account or accounts, and may be used only 391 for authorized reserve expenditures unless their use for other 392 purposes is approved in a dvance by a majority vote at a duly 393 called meeting of the association. Before turnover of control of 394 an association by a developer to unit owners other than the 395 developer pursuant to s. 718.301, the developer -controlled 396 association may not vote to use rese rves for purposes other than 397 those for which they were intended. Effective December 31, 2024, 398 members of a unit-owner-controlled association may not vote to 399 use reserve funds, or any interest accruing thereon, that are 400 HB 1395 2023 CODING: Words stricken are deletions; words underlined are additions. hb1395-00 Page 17 of 47 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S reserved for items listed in paragrap h (g) for any other purpose 401 other than their intended purpose. 402 4. The only voting interests that are eligible to vote on 403 questions that involve waiving or reducing the funding of 404 reserves, or using existing reserve funds for purposes other 405 than purposes for which the reserves were intended, are the 406 voting interests of the units subject to assessment to fund the 407 reserves in question. Proxy questions relating to waiving or 408 reducing the funding of reserves or using existing reserve funds 409 for purposes other t han purposes for which the reserves were 410 intended must contain the following statement in capitalized, 411 bold letters in a font size larger than any other used on the 412 face of the proxy ballot: WAIVING OF RESERVES, IN WHOLE OR IN 413 PART, OR ALLOWING ALTERNATIVE USES OF EXISTING RESERVES MAY 414 RESULT IN UNIT OWNER LIABILITY FOR PAYMENT OF UNANTICIPATED 415 SPECIAL ASSESSMENTS REGARDING THOSE ITEMS. 416 (g) Structural integrity reserve study. — 417 1. An association must have a structural integrity reserve 418 study completed at least every 10 years after the condominium's 419 creation for each building on the condominium property that is 420 three stories or higher in height which includes, at a minimum, 421 a study of the following items as related to the structural 422 integrity and safety of the building: 423 a. Roof. 424 b. Load-bearing walls or other primary structural members. 425 HB 1395 2023 CODING: Words stricken are deletions; words underlined are additions. hb1395-00 Page 18 of 47 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S c. Floor. 426 d. Foundation. 427 e. Fireproofing and fire protection systems. 428 f. Plumbing. 429 g. Electrical systems. 430 h. Waterproofing and exterior painting. 431 i. Windows and exterior doors. 432 j. Any other item that has a deferred maintenance expense 433 or replacement cost that exceeds $10,000 and the failure to 434 replace or maintain such item negatively affects the items 435 listed in sub-subparagraphs a.-i., as determined by the licensed 436 engineer, general contractor, building code administrator, 437 building code inspector, or architect performing the visual 438 inspection portion of the structural integrity reserve study. 439 2. Before a developer turns over control of an association 440 to unit owners other than the developer, the developer must have 441 a structural integrity reserve study completed for each building 442 on the condominium property that is three stories or higher in 443 height. 444 3. Associations that existing on or before July 1, 2022, 445 which are controlled by unit owners other than the developer, 446 must have a structural integrity reserve study completed by 447 December 31, 2024, for each building on the condominium property 448 that is three stories or higher in height. An association that 449 is required to complete a milestone inspection on or before 450 HB 1395 2023 CODING: Words stricken are deletions; words underlined are additions. hb1395-00 Page 19 of 47 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S December 31, 2026, in accordance with s. 553.899, may complete 451 the structural integrity reserve study simultaneously with the 452 milestone inspection. In no event may the structural integrity 453 reserve study be completed after December 31, 2026. 454 4. If an association fails to complete a structural 455 integrity reserve study pursuant to this paragraph, such failure 456 is a breach of an officer's and director's fiduciary 457 relationship to the unit owners under s. 718. 111(1). 458 5. If the milestone inspection required by s. 553.899, or 459 an inspection completed for a similar local requirement, was 460 performed within the past 5 years and meets the requirements of 461 this paragraph, such inspection may be used in place of the 462 visual inspection portion of the structural integrity reserve 463 study. 464 (h) Mandatory milestone inspections. —If an association is 465 required to have a milestone inspection performed pursuant to s. 466 553.899, the association must arrange for the milestone 467 inspection to be performed and is responsible for ensuring 468 compliance with the requirements of s. 553.899. The association 469 is responsible for all costs associated with the inspection. If 470 the officers or directors of an association willfully and 471 knowingly fail to ha ve a milestone inspection performed pursuant 472 to s. 553.899, such failure is a breach of the officers' and 473 directors' fiduciary relationship to the unit owners under s. 474 718.111(1)(a). Within 60 days after Upon completion of a phase 475 HB 1395 2023 CODING: Words stricken are deletions; words underlined are additions. hb1395-00 Page 20 of 47 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S one or phase two mileston e inspection and receipt of the 476 inspector-prepared summary of the milestone inspection report 477 from any phase one or phase two milestone inspection from the 478 architect or engineer who performed the inspection , the 479 association must distribute a copy of the in spector-prepared 480 summary of the inspection report to each unit owner, regardless 481 of the findings or recommendations in the report, by United 482 States mail or personal delivery and by electronic transmission 483 to unit owners who previously consented to receive notice by 484 electronic transmission; must post a copy of the inspector -485 prepared summary in a conspicuous place on the condominium 486 property; and must publish the full report and inspector -487 prepared summary on the association's website, if the 488 association is required to have a website. If the visual 489 inspection portion of the structural integrity reserve study 490 required under paragraph (g) was performed within the past 5 491 years and meets the requirements for a milestone inspection in 492 s. 553.899, such inspection may be used in place of the phase 493 one milestone inspection. 494 Section 5. Effective July 1, 2027, subsection (5) of 495 section 718.1255, Florida Statutes, is amended, and paragraph 496 (d) is added to subsection (1) of that section, to read: 497 718.1255 Alternative dispute resolution; mediation; 498 nonbinding arbitration; applicability. — 499 (1) DEFINITIONS.—As used in this section, the term 500 HB 1395 2023 CODING: Words stricken are deletions; words underlined are additions. hb1395-00 Page 21 of 47 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S "dispute" means any disagreement between two or more parties 501 that involves: 502 (d) The failure of a board of administration, when 503 required by this chapter or a governing document of the 504 association, to: 505 1. Obtain a milestone inspection as required under s. 506 553.899. 507 2. Obtain a structural integrity reserve study as required 508 under s. 718.112(2)(g). 509 3. Fund reserve accounts as requir ed for an item 510 identified in s. 718.112(2)(g). 511 4. Make or provide necessary maintenance or repairs of the 512 condominium property as recommended by a milestone inspection or 513 a structural integrity reserve study. 514 515 "Dispute" does not include any disagreement that primarily 516 involves: title to any unit or common element; the 517 interpretation or enforcement of any warranty; the levy of a fee 518 or assessment, or the collection of an assessment levied against 519 a party; the eviction or other removal of a tenant from a un it; 520 alleged breaches of fiduciary duty by one or more directors; or 521 claims for damages to a unit based upon the alleged failure of 522 the association to maintain the common elements or condominium 523 property. 524 (5) PRESUIT MEDIATION. —In lieu of the initiation o f 525 HB 1395 2023 CODING: Words stricken are deletions; words underlined are additions. hb1395-00 Page 22 of 47 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S nonbinding arbitration as provided in subsections (1) -(4), a 526 party may submit a dispute to presuit mediation in accordance 527 with s. 720.311, except for: 528 (a) Disputes listed in paragraph (1)(d) are not subject to 529 nonbinding arbitration under subsection (4) and must be 530 submitted to presuit mediation in accordance with s. 720.311. ; 531 however, 532 (b) Election and recall disputes are not eligible for 533 mediation and such disputes must be arbitrated by the division 534 or filed in a court of competent jurisdiction. 535 Section 6. Section 718.13, Florida Statutes, is created to 536 read: 537 718.13 Injunctive relief. — 538 (1) A unit owner may institute an action in a court of 539 competent jurisdiction in which the condominium is located to 540 seek injunctive relief against the associ ation to: 541 (a) Enforce compliance with milestone inspection 542 requirements under s. 553.899 and structural integrity reserve 543 study requirements under s. 718.112(2)(g). 544 (b) Prevent irreparable injury to unit owners and the 545 association and to protect human health, safety, and welfare 546 caused or threatened by any violation of the milestone 547 inspection requirements under s. 553.899 and structural 548 integrity reserve study requirements under s. 718.112(2)(g). 549 (2) The division may, in the name of the state, seek 550 HB 1395 2023 CODING: Words stricken are deletions; words underlined are additions. hb1395-00 Page 23 of 47 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S injunctive relief in any court of competent jurisdiction in 551 which the condominium is located to obtain relief against the 552 association to enforce compliance with milestone inspection 553 requirements under s. 553.899. A proceeding commenced under this 554 subsection is in addition to, and not in lieu of, any other 555 penalty or remedy under this chapter. 556 (3) Any local authority having jurisdiction to enforce 557 milestone inspection requirements may seek injunctive relief 558 from any court of competent jurisdiction in which the 559 condominium is located against the association to enforce 560 compliance with milestone inspection requirements under s. 561 553.899, upon an affidavit of the local authority having 562 jurisdiction specifying the manner in which the condominium does 563 not conform to the requirements of s. 553.899. 564 Section 7. Paragraph (p) of subsection (4) of section 565 718.301, Florida Statutes, is amended to read: 566 718.301 Transfer of association control; claims of defect 567 by association.— 568 (4) At the time that unit owners other than the developer 569 elect a majority of the members of the board of administration 570 of an association, the developer shall relinquish control of the 571 association, and the unit owners shall accept control. 572 Simultaneously, or for the purposes of paragraph (c) not more 573 than 90 days thereafter, the developer shall deliver to the 574 association, at the developer's expense, all property of the 575 HB 1395 2023 CODING: Words stricken are deletions; words underlined are additions. hb1395-00 Page 24 of 47 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S unit owners and of the association which is held or controlled 576 by the developer, including, but not limited to, the following 577 items, if applicable, as to each condominium operated by the 578 association: 579 (p) Notwithstanding when the certificate of occupancy was 580 issued or the height of the building, a milestone inspection 581 report in compliance with s. 553.899 included in the official 582 records, under seal of an architect or engineer or under 583 attestation of a general contractor, building code 584 administrator, or building code inspector authorized to practice 585 in this state indicating that such report complies with the 586 statutory requirements for the inspection, and attesting to 587 required maintenance, condition, useful life, and replacement 588 costs of the following applicable condominium property 589 comprising a turnover inspection report: 590 1. Roof. 591 2. Structure, including load -bearing walls and primary 592 structural members and primary structural systems as those terms 593 are defined in s. 627.706. 594 3. Fireproofing and fire protection systems. 595 4. Elevators. 596 5. Heating and cooling systems. 597 6. Plumbing. 598 7. Electrical systems. 599 8. Swimming pool or spa and equipment. 600 HB 1395 2023 CODING: Words stricken are deletions; words underlined are additions. hb1395-00 Page 25 of 47 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S 9. Seawalls. 601 10. Pavement and parking areas. 602 11. Drainage systems. 603 12. Painting. 604 13. Irrigation systems. 605 14. Waterproofing. 606 Section 8. Paragraph (b) of subsection (1) and paragraph 607 (a) of subsection (2) of section 718.503, Florida Statutes, are 608 amended, and paragraph (d) is added to subsection (1) and 609 paragraph (e) is added to subsection (2) of that section, to 610 read: 611 718.503 Developer disclosure prior to sale; nondeveloper 612 unit owner disclosure prior to sale; void ability.— 613 (1) DEVELOPER DISCLOSURE. — 614 (b) Copies of documents to be furnished to prospective 615 buyer or lessee.—Until such time as the developer has furnished 616 the documents listed below to a person who has entered into a 617 contract to purchase a residential unit or lease it for more 618 than 5 years, the contract may be voided by that person, 619 entitling the person to a refund of any deposit together with 620 interest thereon as provided in s. 718.202. The contract may be 621 terminated by written notice from the proposed buyer or lessee 622 delivered to the develo per within 15 days after the buyer or 623 lessee receives all of the documents required by this section. 624 The developer may not close for 15 days after the execution of 625 HB 1395 2023 CODING: Words stricken are deletions; words underlined are additions. hb1395-00 Page 26 of 47 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S the agreement and delivery of the documents to the buyer as 626 evidenced by a signed receipt fo r documents unless the buyer is 627 informed in the 15-day voidability period and agrees to close 628 before the expiration of the 15 days. The developer shall retain 629 in his or her records a separate agreement signed by the buyer 630 as proof of the buyer's agreement to close before the expiration 631 of the voidability period. The developer must retain such proof 632 for a period of 5 years after the date of the closing of the 633 transaction. The documents to be delivered to the prospective 634 buyer are the prospectus or disclosure statement with all 635 exhibits, if the development is subject to s. 718.504, or, if 636 not, then copies of the following which are applicable: 637 1. The question and answer sheet described in s. 718.504, 638 and declaration of condominium, or the proposed declaratio n if 639 the declaration has not been recorded, which shall include the 640 certificate of a surveyor approximately representing the 641 locations required by s. 718.104. 642 2. The documents creating the association. 643 3. The bylaws. 644 4. The ground lease or other unde rlying lease of the 645 condominium. 646 5. The management contract, maintenance contract, and 647 other contracts for management of the association and operation 648 of the condominium and facilities used by the unit owners having 649 a service term in excess of 1 year, an d any management contracts 650 HB 1395 2023 CODING: Words stricken are deletions; words underlined are additions. hb1395-00 Page 27 of 47 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S that are renewable. 651 6. The estimated operating budget for the condominium and 652 a schedule of expenses for each type of unit, including fees 653 assessed pursuant to s. 718.113(1) for the maintenance of 654 limited common elements where such costs are shared only by 655 those entitled to use the limited common elements. 656 7. The lease of recreational and other facilities that 657 will be used only by unit owners of the subject condominium. 658 8. The lease of recreational and other common facilitie s 659 that will be used by unit owners in common with unit owners of 660 other condominiums. 661 9. The form of unit lease if the offer is of a leasehold. 662 10. Any declaration of servitude of properties serving the 663 condominium but not owned by unit owners or leased to them or 664 the association. 665 11. If the development is to be built in phases or if the 666 association is to manage more than one condominium, a 667 description of the plan of phase development or the arrangements 668 for the association to manage two or more condom iniums. 669 12. If the condominium is a conversion of existing 670 improvements, the statements and disclosure required by s. 671 718.616. 672 13. The form of agreement for sale or lease of units. 673 14. A copy of the floor plan of the unit and the plot plan 674 showing the location of the residential buildings and the 675 HB 1395 2023 CODING: Words stricken are deletions; words underlined are additions. hb1395-00 Page 28 of 47 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S recreation and other common areas. 676 15. A copy of all covenants and restrictions that will 677 affect the use of the property and are not contained in the 678 foregoing. 679 16. If the developer is required by state o r local 680 authorities to obtain acceptance or approval of any dock or 681 marina facilities intended to serve the condominium, a copy of 682 any such acceptance or approval acquired by the time of filing 683 with the division under s. 718.502(1), or a statement that suc h 684 acceptance or approval has not been acquired or received. 685 17. Evidence demonstrating that the developer has an 686 ownership, leasehold, or contractual interest in the land upon 687 which the condominium is to be developed. 688 18. A copy of the inspector -prepared summary of the 689 milestone inspection report as described in ss. 553.899 and 690 718.112(2)(h) ss. 553.899 and 718.301(4)(p) . 691 19. A copy of the association's most recent structural 692 integrity reserve study or a statement that the association has 693 not completed a structural integrity reserve study. 694 (d) Milestone inspection or structural integrity reserve 695 study.— 696 1. If the association is required to have a milestone 697 inspection as described in ss. 553.899 and 718.112(2)(h) or a 698 structural integrity reserve st udy as described in s. 699 718.112(2)(g), and the association has not completed the 700 HB 1395 2023 CODING: Words stricken are deletions; words underlined are additions. hb1395-00 Page 29 of 47 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S milestone inspection or structural integrity reserve study, each 701 contract entered into on or after January 1, 2025, for the sale 702 of a residential unit must contain in conspicuo us type a 703 statement indicating that the association is required to have a 704 milestone inspection or a structural integrity reserve study and 705 the association has failed to complete such inspection or study, 706 as applicable. 707 2. If the association is required t o have a milestone 708 inspection as described in ss. 553.899 and 718.112(2)(h) or a 709 structural integrity reserve study as described in s. 710 718.112(2)(g), and the association has completed such inspection 711 or study, each contract entered into on or after January 1, 712 2025, for the sale of a residential unit must contain a copy of 713 the most recent milestone inspection report or structural 714 integrity reserve study, as applicable. 715 3. If the association is not required to have a milestone 716 inspection as described in ss. 553.899 and 718.112(2)(h) or a 717 structural integrity reserve study as described in s. 718 718.112(2)(g), each contract entered into on or after January 1, 719 2025, for the sale of a residential unit must contain in 720 conspicuous type a statement indicating that the association is 721 not required to have a milestone inspection or a structural 722 integrity reserve study, as applicable. 723 (2) NONDEVELOPER DISCLOSURE. — 724 (a) Each unit owner who is not a developer as defined by 725 HB 1395 2023 CODING: Words stricken are deletions; words underlined are additions. hb1395-00 Page 30 of 47 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S this chapter must comply with this subsection bef ore the sale of 726 his or her unit. Each prospective purchaser who has entered into 727 a contract for the purchase of a condominium unit is entitled, 728 at the seller's expense, to a current copy of all of the 729 following: 730 1. The declaration of condominium. 731 2. Articles of incorporation of the association. 732 3. Bylaws and rules of the association. 733 4. Financial information required by s. 718.111. 734 5. A copy of the inspector -prepared summary of the 735 milestone inspection report as described in ss. 553.899 and 736 718.112(2)(h) ss. 553.899 and 718.301(4)(p) , if applicable. 737 6. The association's most recent structural integrity 738 reserve study or a statement that the association has not 739 completed a structural integrity reserve study. 740 7. The document entitled "Freque ntly Asked Questions and 741 Answers" required by s. 718.504. 742 (e)1. If the association is required to have a milestone 743 inspection as described in ss. 553.899 and 718.112(2)(h) or a 744 structural integrity reserve study as described in s. 745 718.112(2)(g), and the association has not completed the 746 milestone inspection or structural integrity reserve study, each 747 contract entered into on or after January 1, 2025, for the sale 748 of a residential unit must contain in conspicuous type a 749 statement indicating that the associ ation is required to have a 750 HB 1395 2023 CODING: Words stricken are deletions; words underlined are additions. hb1395-00 Page 31 of 47 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S milestone inspection or a structural integrity reserve study and 751 the association has failed to complete such inspection or study, 752 as applicable. 753 2. If the association is required to have a milestone 754 inspection as described in ss. 553.899 and 718.112(2)(h) or a 755 structural integrity reserve study as described in s. 756 718.112(2)(g), and the association has completed such inspection 757 or study, each contract entered into on or after January 1, 758 2025, for the sale of a residential unit m ust contain a copy of 759 the most recent milestone inspection report or structural 760 integrity reserve study, as applicable. 761 3. If the association is not required to have a milestone 762 inspection as described in ss. 553.899 and 718.112(2)(h) or a 763 structural integrity reserve study as described in s. 764 718.112(2)(g), each contract entered into on or after January 1, 765 2025, for the sale of a residential unit must contain in 766 conspicuous type a statement indicating that the association is 767 not required to have a milesto ne inspection or a structural 768 integrity reserve study, as applicable. 769 Section 9. Subsection (24) of section 719.103, Florida 770 Statutes, is amended to read: 771 719.103 Definitions. —As used in this chapter: 772 (24) "Structural integrity reserve study" means a study of 773 the reserve funds required for future major repairs and 774 replacement of the common areas based on a visual inspection of 775 HB 1395 2023 CODING: Words stricken are deletions; words underlined are additions. hb1395-00 Page 32 of 47 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S the common areas. A structural integrity reserve study may be 776 performed by any person qualified to perform such study. 777 However, the visual inspection portion of the structural 778 integrity reserve study must be performed by an engineer 779 licensed under chapter 471 , a general contractor licensed under 780 chapter 489 with at least 5 years' experience building or 781 constructing threshold bu ildings as defined in s. 553.71; a 782 building code administrator or building code inspector licensed 783 under part XII of chapter 468 with at least 5 years' experience 784 inspecting threshold buildings as defined in s. 553.71; or an 785 architect licensed under chapte r 481. At a minimum, a structural 786 integrity reserve study must identify the common areas being 787 visually inspected, state the estimated remaining useful life 788 and the estimated replacement cost or deferred maintenance 789 expense of the common areas being visual ly inspected, and 790 provide a recommended annual reserve amount that achieves the 791 estimated replacement cost or deferred maintenance expense of 792 each common area being visually inspected by the end of the 793 estimated remaining useful life of each common area. 794 Section 10. Paragraphs (j), (k), and (l) of subsection (1) 795 of section 719.106, Florida Statutes, are amended to read: 796 719.106 Bylaws; cooperative ownership. — 797 (1) MANDATORY PROVISIONS. —The bylaws or other cooperative 798 documents shall provide for the f ollowing, and if they do not, 799 they shall be deemed to include the following: 800 HB 1395 2023 CODING: Words stricken are deletions; words underlined are additions. hb1395-00 Page 33 of 47 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S (j) Annual budget.— 801 1. The proposed annual budget of common expenses must be 802 detailed and must show the amounts budgeted by accounts and 803 expense classifications, including, if applicable, but not 804 limited to, those expenses listed in s. 719.504(20). The board 805 of administration shall adopt the annual budget at least 14 days 806 before the start of the association's fiscal year. In the event 807 that the board fails to timely adopt the an nual budget a second 808 time, it is deemed a minor violation and the prior year's budget 809 shall continue in effect until a new budget is adopted. 810 2. In addition to annual operating expenses, the budget 811 must include reserve accounts for capital expenditures a nd 812 deferred maintenance. These accounts must include, but are not 813 be limited to, roof replacement, building painting, and pavement 814 resurfacing, regardless of the amount of deferred maintenance 815 expense or replacement cost, and for any other items for which 816 the deferred maintenance expense or replacement cost exceeds 817 $10,000, and those items listed in paragraph (k) that will 818 require maintenance, repair, or replacement within the next 25 819 years. The amount to be reserved for an item is determined by 820 the association's most recent structural integrity reserve study 821 that must be completed as provided in paragraph (k) by December 822 31, 2024. If the amount to be reserved for an item is not in the 823 association's initial or most recent structural integrity 824 reserve study or the association has not completed a structural 825 HB 1395 2023 CODING: Words stricken are deletions; words underlined are additions. hb1395-00 Page 34 of 47 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S integrity reserve study, the amount must be computed by means of 826 a formula which is based upon estimated remaining useful life 827 and estimated replacement cost or deferred maintenance expense 828 of the reserve item. However, any item with a remaining useful 829 life greater than 25 years is not required to be included in the 830 study. If an association is required to complete a structural 831 integrity reserve study, the association's budget must maintain 832 reserves, in the amount recommended in the association's most 833 recent structural integrity reserve study, for the items listed 834 in paragraph (k). The association may adjust replacement reserve 835 assessments annually to take into account any changes in 836 estimates or extension of t he useful life of a reserve item 837 caused by deferred maintenance. The members of a unit -owner-838 controlled association may determine, at a duly called meeting 839 of the association, for a fiscal year to provide no reserves or 840 reserves less adequate than required by this subsection. Before 841 turnover of control of an association by a developer to unit 842 owners other than a developer under s. 719.301, the developer -843 controlled association may not vote to waive the reserves or 844 reduce funding of the reserves. Effective De cember 31, 2024, a 845 unit-owner-controlled association may not determine to provide 846 no reserves or reserves less adequate than required by this 847 paragraph for items listed in paragraph (k). If a meeting of the 848 unit owners has been called to determine to provi de no reserves, 849 or reserves less adequate than required, and such result is not 850 HB 1395 2023 CODING: Words stricken are deletions; words underlined are additions. hb1395-00 Page 35 of 47 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S attained or a quorum is not attained, the reserves as included 851 in the budget shall go into effect. 852 3. Reserve funds and any interest accruing thereon shall 853 remain in the reserve account or accounts, and shall be used 854 only for authorized reserve expenditures unless their use for 855 other purposes is approved in advance by a vote of the majority 856 of the voting interests, voting in person or by limited proxy at 857 a duly called meeting of the association. Before turnover of 858 control of an association by a developer to unit owners other 859 than the developer under s. 719.301, the developer may not vote 860 to use reserves for purposes other than that for which they were 861 intended. Effective Decemb er 31, 2024, members of a unit -owner-862 controlled association may not vote to use reserve funds, or any 863 interest accruing thereon, that are reserved for items listed in 864 paragraph (k) for purposes other than their intended purpose. 865 (k) Structural integrity reserve study.— 866 1. An association must have a structural integrity reserve 867 study completed at least every 10 years for each building on the 868 cooperative property that is three stories or higher in height 869 that includes, at a minimum, a study of the followi ng items as 870 related to the structural integrity and safety of the building: 871 a. Roof. 872 b. Load-bearing walls or other primary structural members. 873 c. Floor. 874 d. Foundation. 875 HB 1395 2023 CODING: Words stricken are deletions; words underlined are additions. hb1395-00 Page 36 of 47 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S e. Fireproofing and fire protection systems. 876 f. Plumbing. 877 g. Electrical systems. 878 h. Waterproofing and exterior painting. 879 i. Windows and exterior doors. 880 j. Any other item that has a deferred maintenance expense 881 or replacement cost that exceeds $10,000 and the failure to 882 replace or maintain such item negatively affects the items 883 listed in sub-subparagraphs a.-i., as determined by the licensed 884 engineer, general contractor, building code administrator, 885 building code inspector, or architect performing the visual 886 inspection portion of the structural integrity reserve study. 887 2. Before a developer turns over control of an association 888 to unit owners other than the developer, the developer must have 889 a structural integrity reserve study completed for each building 890 on the cooperative property that is three stories or higher in 891 height. 892 3. Associations that existing on or before July 1, 2022, 893 which are controlled by unit owners other than the developer, 894 must have a structural integrity reserve study completed by 895 December 31, 2024, for each building on the cooperative property 896 that is three stories or higher in height. An association that 897 is required to complete a milestone inspection on or before 898 December 31, 2026, in accordance with s. 553.899, may complete 899 the structural integrity reserve study simultaneously with the 900 HB 1395 2023 CODING: Words stricken are deletions; words underlined are additions. hb1395-00 Page 37 of 47 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S milestone inspection. In no event may the structural integrity 901 reserve study be completed after December 31, 2026. 902 4. If an association fails to complete a structural 903 integrity reserve study pursuant to this paragraph, such failure 904 is a breach of an officer's and direc tor's fiduciary 905 relationship to the unit owners under s. 719.104(8). 906 5. If the milestone inspection required by s. 553.899, or 907 an inspection completed for a similar local requirement, was 908 performed within the past 5 years and meets the requirements of 909 this paragraph, such inspection may be used in place of the 910 visual inspection portion of the structural integrity reserve 911 study. 912 (l) Mandatory milestone inspections. —If an association is 913 required to have a milestone inspection performed pursuant to s. 914 553.899, the association must arrange for the milestone 915 inspection to be performed and is responsible for ensuring 916 compliance with the requirements of s. 553.899. The association 917 is responsible for all costs associated with the inspection. If 918 the officers or directors of an association willfully and 919 knowingly fail to have a milestone inspection performed pursuant 920 to s. 553.899, such failure is a breach of the officers' and 921 directors' fiduciary relationship to the unit owners under s. 922 719.104(8)(a). Within 60 days after Upon completion of a phase 923 one or phase two milestone inspection and receipt of the 924 inspector-prepared summary of the milestone inspection report 925 HB 1395 2023 CODING: Words stricken are deletions; words underlined are additions. hb1395-00 Page 38 of 47 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S from any phase one or phase two milestone inspection the 926 architect or engineer who performed the insp ection, the 927 association must distribute a copy of the inspector -prepared 928 summary of the inspection report to each unit owner, regardless 929 of the findings or recommendations in the report, by United 930 States mail or personal delivery and by electronic transmis sion 931 to unit owners who previously consented to receive notice by 932 electronic transmission; must post a copy of the inspector -933 prepared summary in a conspicuous place on the cooperative 934 property; and must publish the full report and inspector -935 prepared summary on the association's website, if the 936 association is required to have a website. If the visual 937 inspection portion of the structural integrity reserve study 938 required under paragraph (k) was performed within the past 5 939 years and meets the requirements for a milestone inspection in 940 s. 553.899, such inspection may be used in place of the phase 941 one milestone inspection. 942 Section 11. Section 719.132, Florida Statutes, is created 943 to read: 944 719.132 Injunctive relief. — 945 (1) A unit owner may institute an action in a court of 946 competent jurisdiction in which the cooperative is located to 947 seek injunctive relief against the association to: 948 (a) Enforce compliance with milestone inspection 949 requirements under s. 553.899 and structural integrity reserve 950 HB 1395 2023 CODING: Words stricken are deletions; words underlined are additions. hb1395-00 Page 39 of 47 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S requirements under s. 719.106(1)(k). 951 (b) Prevent irreparable injury to unit owners and the 952 association and to protect human health, safety, and welfare 953 caused or threatened by any violation of the milestone 954 inspection requirements under s. 553.899 and structural 955 integrity reserve requirements under s. 719.106(1)(k). 956 (2) The division may, in the name of the state, seek 957 injunctive relief in any court of competent jurisdiction in 958 which the cooperative is located to obtain relief against the 959 association to enforce compli ance with milestone inspection 960 requirements under s. 553.899. A proceeding commenced under this 961 subsection is in addition to, and not in lieu of, any other 962 penalty or remedy under this chapter. 963 (3) Any local authority having jurisdiction to enforce 964 milestone inspection requirements may seek injunctive relief 965 from any court of competent jurisdiction in which the 966 cooperative is located against the association to enforce 967 compliance with milestone inspection requirements under s. 968 553.899, upon an affidavit of the local authority having 969 jurisdiction specifying the manner in which the cooperative does 970 not conform to the requirements of s. 553.899. 971 Section 12. Paragraph (p) of subsection (4) of section 972 719.301, Florida Statutes, is amended to read: 973 719.301 Transfer of association control. — 974 (4) When unit owners other than the developer elect a 975 HB 1395 2023 CODING: Words stricken are deletions; words underlined are additions. hb1395-00 Page 40 of 47 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S majority of the members of the board of administration of an 976 association, the developer shall relinquish control of the 977 association, and the unit owners shall accept control. 978 Simultaneously, or for the purpose of paragraph (c) not more 979 than 90 days thereafter, the developer shall deliver to the 980 association, at the developer's expense, all property of the 981 unit owners and of the association held or controlled by the 982 developer, including, but not limited to, the following items, 983 if applicable, as to each cooperative operated by the 984 association: 985 (p) Notwithstanding when the certificate of occupancy was 986 issued or the height of the building, a milestone inspection 987 report in compliance with s. 553.899 included in the official 988 records, under seal of an architect or engineer or under 989 attestation of a general contractor, building code 990 administrator, or building code inspector authorized to practice 991 in this state indicating that such report complies with the 992 statutory requirements for the inspection , attesting to required 993 maintenance, condition, useful life, and replacement costs of 994 the following applicable cooperative property comprising a 995 turnover inspection report: 996 1. Roof. 997 2. Structure, including load -bearing walls and primary 998 structural members and primary structural systems as those terms 999 are defined in s. 627.706. 1000 HB 1395 2023 CODING: Words stricken are deletions; words underlined are additions. hb1395-00 Page 41 of 47 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S 3. Fireproofing and fire protection systems. 1001 4. Elevators. 1002 5. Heating and cooling systems. 1003 6. Plumbing. 1004 7. Electrical systems. 1005 8. Swimming pool or spa and equipment. 1006 9. Seawalls. 1007 10. Pavement and parking areas. 1008 11. Drainage systems. 1009 12. Painting. 1010 13. Irrigation systems. 1011 14. Waterproofing. 1012 Section 13. Paragraph (b) of subsection (1) and paragraph 1013 (a) of subsection (2) of section 719.503, Florida Statutes, are 1014 amended, and paragraph (d) is added to subsection (1) and 1015 paragraph (d) is added to subsection (2) of that section, to 1016 read: 1017 719.503 Disclosure prior to sale. — 1018 (1) DEVELOPER DISCLOSURE.— 1019 (b) Copies of documents to be furnished to prospective 1020 buyer or lessee.—Until such time as the developer has furnished 1021 the documents listed below to a person who has entered into a 1022 contract to purchase a unit or lease it for more than 5 year s, 1023 the contract may be voided by that person, entitling the person 1024 to a refund of any deposit together with interest thereon as 1025 HB 1395 2023 CODING: Words stricken are deletions; words underlined are additions. hb1395-00 Page 42 of 47 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S provided in s. 719.202. The contract may be terminated by 1026 written notice from the proposed buyer or lessee delivered to 1027 the developer within 15 days after the buyer or lessee receives 1028 all of the documents required by this section. The developer may 1029 not close for 15 days after the execution of the agreement and 1030 delivery of the documents to the buyer as evidenced by a receipt 1031 for documents signed by the buyer unless the buyer is informed 1032 in the 15-day voidability period and agrees to close before the 1033 expiration of the 15 days. The developer shall retain in his or 1034 her records a separate signed agreement as proof of the buyer's 1035 agreement to close before the expiration of the voidability 1036 period. The developer must retain such proof for a period of 5 1037 years after the date of the closing transaction. The documents 1038 to be delivered to the prospective buyer are the prospectus or 1039 disclosure statement with all exhibits, if the development is 1040 subject to s. 719.504, or, if not, then copies of the following 1041 which are applicable: 1042 1. The question and answer sheet described in s. 719.504, 1043 and cooperative documents, or the proposed cooperative document s 1044 if the documents have not been recorded, which shall include the 1045 certificate of a surveyor approximately representing the 1046 locations required by s. 719.104. 1047 2. The documents creating the association. 1048 3. The bylaws. 1049 4. The ground lease or other under lying lease of the 1050 HB 1395 2023 CODING: Words stricken are deletions; words underlined are additions. hb1395-00 Page 43 of 47 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S cooperative. 1051 5. The management contract, maintenance contract, and 1052 other contracts for management of the association and operation 1053 of the cooperative and facilities used by the unit owners having 1054 a service term in excess of 1 year, and any management contracts 1055 that are renewable. 1056 6. The estimated operating budget for the cooperative and 1057 a schedule of expenses for each type of unit, including fees 1058 assessed to a shareholder who has exclusive use of limited 1059 common areas, where such costs are shared only by those entitled 1060 to use such limited common areas. 1061 7. The lease of recreational and other facilities that 1062 will be used only by unit owners of the subject cooperative. 1063 8. The lease of recreational and other common areas that 1064 will be used by unit owners in common with unit owners of other 1065 cooperatives. 1066 9. The form of unit lease if the offer is of a leasehold. 1067 10. Any declaration of servitude of properties serving the 1068 cooperative but not owned by unit owners or leased to them or 1069 the association. 1070 11. If the development is to be built in phases or if the 1071 association is to manage more than one cooperative, a 1072 description of the plan of phase development or the arrangements 1073 for the association to manage two or more cooperatives. 1074 12. If the cooperative is a conversion of existing 1075 HB 1395 2023 CODING: Words stricken are deletions; words underlined are additions. hb1395-00 Page 44 of 47 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S improvements, the statements and disclosure required by s. 1076 719.616. 1077 13. The form of agreement for sale or lease of units. 1078 14. A copy of the floor plan of the unit and the plot plan 1079 showing the location of the residential buildings and the 1080 recreation and other common areas. 1081 15. A copy of all covenants and restrictions that will 1082 affect the use of the property and are not contained in the 1083 foregoing. 1084 16. If the developer is required by state or local 1085 authorities to obtain acceptance or approval of any dock or 1086 marina facilities intended to serve the cooperative, a copy of 1087 any such acceptance or approval acquired by the time of filing 1088 with the division pursuant to s. 719.502(1) or a statement that 1089 such acceptance or approval has not been acquired or received. 1090 17. Evidence demonstrating that the developer has an 1091 ownership, leasehold, or contractual interest in the land upon 1092 which the cooperative is to be developed. 1093 18. A copy of the inspector -prepared summary of the 1094 milestone inspection report as described in ss. 553.899 and 1095 719.106(1)(l) ss. 553.899 and 719.301(4)(p) , if applicable. 1096 19. A copy of the association's most recent structural 1097 integrity reserve study or a statement that the association has 1098 not completed a structural integrity reserve study. 1099 (d) Milestone inspection or structural integrity reserve 1100 HB 1395 2023 CODING: Words stricken are deletions; words underlined are additions. hb1395-00 Page 45 of 47 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S study.— 1101 1. If the association is required to have a milestone 1102 inspection as described in ss. 553.899 and 719.106(1)(l) or a 1103 structural integrity re serve study as described in s. 1104 719.106(1)(k), and the association has not completed the 1105 milestone inspection or structural integrity reserve study, each 1106 contract entered into on or after January 1, 2025, for the sale 1107 of a residential unit must contain in c onspicuous type a 1108 statement indicating that the association is required to have a 1109 milestone inspection or a structural integrity reserve study and 1110 the association has failed to complete such inspection or study, 1111 as applicable. 1112 2. If the association is re quired to have a milestone 1113 inspection as described in ss. 553.899 and 719.106(1)(l) or a 1114 structural integrity reserve study as described in s. 1115 719.106(1)(k), and the association has completed such inspection 1116 or study, each contract entered into on or after January 1, 1117 2025, for the sale of a residential unit must contain a copy of 1118 the most recent milestone inspection report or structural 1119 integrity reserve study, as applicable. 1120 3. If the association is not required to have a milestone 1121 inspection as describe d in ss. 553.899 and 719.106(1)(l) or a 1122 structural integrity reserve study as described in s. 1123 719.106(1)(k), each contract entered into on or after January 1, 1124 2025, for the sale of a residential unit must contain in 1125 HB 1395 2023 CODING: Words stricken are deletions; words underlined are additions. hb1395-00 Page 46 of 47 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S conspicuous type a statement indicating that the association is 1126 not required to have a milestone inspection or a structural 1127 integrity reserve study, as applicable. 1128 (2) NONDEVELOPER DISCLOSURE. — 1129 (a) Each unit owner who is not a developer as defined by 1130 this chapter must comply with this subsection before the sale of 1131 his or her interest in the association. Each prospective 1132 purchaser who has entered into a contract for the purchase of an 1133 interest in a cooperative is entitled, at the seller's expense, 1134 to a current copy of all of the followin g: 1135 1. The articles of incorporation of the association. 1136 2. The bylaws and rules of the association. 1137 3. A copy of the question and answer sheet as provided in 1138 s. 719.504. 1139 4. A copy of the inspector -prepared summary of the 1140 milestone inspection report as described in ss. 553.899 and 1141 719.106(1)(l) ss. 553.899 and 719.301(4)(p) , if applicable. 1142 5. A copy of the association's most recent structural 1143 integrity reserve study or a statement that the association has 1144 not completed a structural integrity reserv e study. 1145 (d)1. If the association is required to have a milestone 1146 inspection as described in ss. 553.899 and 719.106(1)(l) or a 1147 structural integrity reserve study as described in s. 1148 719.106(1)(k), and the association has not completed the 1149 milestone inspection or structural integrity reserve study, each 1150 HB 1395 2023 CODING: Words stricken are deletions; words underlined are additions. hb1395-00 Page 47 of 47 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S contract entered into on or after January 1, 2025, for the sale 1151 of a residential unit must contain in conspicuous type a 1152 statement indicating that the association is required to have a 1153 milestone inspection or a structural integrity reserve study and 1154 the association has failed to complete such inspection or study, 1155 as applicable. 1156 2. If the association is required to have a milestone 1157 inspection as described in ss. 553.899 and 719.106(1)(l) or a 1158 structural integrity reserve study as described in s. 1159 719.106(1)(k), and the association has completed such inspection 1160 or study, each contract entered into on or after January 1, 1161 2025, for the sale of a residential unit must contain a copy of 1162 the most recent milestone i nspection report or structural 1163 integrity reserve study, as applicable. 1164 3. If the association is not required to have a milestone 1165 inspection as described in ss. 553.899 and 719.106(1)(l) or a 1166 structural integrity reserve study as described in s. 1167 719.106(1)(k), each contract entered into on or after January 1, 1168 2025, for the sale of a residential unit must contain in 1169 conspicuous type a statement indicating that the association is 1170 not required to have a milestone inspection or a structural 1171 integrity reserve study, as applicable. 1172 Section 14. Except as otherwise expressly provided in this 1173 act, this act shall take effect July 1, 2023. 1174