CS/HB 1395 2023 CODING: Words stricken are deletions; words underlined are additions. hb1395-01-c1 Page 1 of 50 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 CS/HB 1395 2023 CODING: Words stricken are deletions; words underlined are additions. hb1395-01-c1 Page 2 of 50 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 by a specified date; requiring local enforcement 33 agencies to use such standardized forms to submit 34 certain reports; conforming provisions to changes made 35 by the act; amending s. 627.351, F.S.; revising 36 requirements for certain condominium unit owners 37 relating to the purchase of flood insurance as a 38 condition for maintaining certain policies issued by 39 Citizens Property Insurance Corporation; amending ss. 40 718.103 and 719.103, F.S.; revising the de finition of 41 "structural integrity reserve study"; amending ss. 42 718.112 and 719.106, F.S.; requiring certain items 43 that will require maintenance, repair, or replacement 44 within a certain timeframe to be included in reserve 45 accounts; removing a date by which certain structural 46 integrity reserve studies must be completed; providing 47 an exception to the requirement of a structural 48 integrity reserve study; requiring certain 49 associations' budgets to include reserves, in an 50 CS/HB 1395 2023 CODING: Words stricken are deletions; words underlined are additions. hb1395-01-c1 Page 3 of 50 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 amount determined by a specified study, fo r certain 51 items; requiring the structural integrity reserve 52 study to include exterior doors; authorizing certain 53 inspections to be used in place of other inspections 54 under certain circumstances; requiring that the 55 inspector-prepared summary of the inspecti on report be 56 provided to certain persons within a specified time 57 period; conforming provisions to changes made by the 58 act; amending s. 718.1255, F.S.; revising the 59 definition of a "dispute" for purposes of alternative 60 dispute resolution; requiring certain disputes to be 61 submitted to presuit mediation; creating ss. 718.13 62 and 719.132, F.S.; authorizing unit owners and certain 63 entities to file an action in court for certain 64 injunctive relief; amending ss. 718.301 and 719.301, 65 F.S.; conforming provisions to ch anges made by the 66 act; amending ss. 718.503 and 719.503, F.S.; requiring 67 that certain provisions be included in certain 68 contracts entered into after specified dates under 69 certain circumstances; conforming provisions to 70 changes made by the act; providing ef fective dates. 71 72 Be It Enacted by the Legislature of the State of Florida: 73 74 Section 1. Paragraph (b) of subsection (1) of section 75 CS/HB 1395 2023 CODING: Words stricken are deletions; words underlined are additions. hb1395-01-c1 Page 4 of 50 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 468.4334, Florida Statutes, is amended to read: 76 468.4334 Professional practice standards; liability. — 77 (1) 78 (b) If a community association manager or a community 79 association management firm has a contract with a community 80 association that has a building on the association's property 81 that is subject to s. 553.899, the community association manager 82 or the community associ ation management firm must comply with 83 that section as directed by the board. 84 Section 2. Subsection (13) of section 553.899, Florida 85 Statutes, is renumbered as subsection (12), subsections (1) 86 through (8) and (11) and present subsection (12) are amende d, 87 and a new subsection (13) is added to that section, to read: 88 553.899 Mandatory structural inspections for condominium 89 and cooperative buildings. — 90 (1) The Legislature finds that maintaining the structural 91 integrity of a building throughout the its service life of the 92 building is of paramount importance in order to ensure that 93 buildings are structurally sound so as to not pose a threat to 94 the public health, safety, or welfare. As such, the Legislature 95 finds that the imposition of a statewide structural inspection 96 program for aging condominium and cooperative buildings in this 97 state is necessary to ensure that such buildings are safe for 98 continued use. 99 (2) As used in this section, the terms: 100 CS/HB 1395 2023 CODING: Words stricken are deletions; words underlined are additions. hb1395-01-c1 Page 5 of 50 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) "Milestone inspection" means a structural inspection 101 of a building, including an inspection of load -bearing elements 102 walls and the primary structural members and primary structural 103 systems as those terms are defined in s. 627.706 . Phase one of 104 the milestone inspection must be performed , by a general 105 contractor licensed under chapter 489 with at least 5 years' 106 experience building or constructing threshold buildings, a 107 building code administrator or building code inspector licensed 108 under part XII of chapter 468 with at least 5 years' experience 109 inspecting threshold buildings, or by a licensed architect or 110 engineer authorized to practice in this state . Phase two of the 111 milestone inspection must be performed by a licensed architect 112 or engineer authorized to practice in this state. Such 113 structural inspection must be completed with the purpose for the 114 purposes of attesting to the life safety and adequacy of the 115 structural components of the building and, to the extent 116 reasonably possible, determining the general structural 117 condition of the building as it affects the saf ety of such 118 building, including a determination of any necessary 119 maintenance, repair, or replacement of any structural component 120 of the building. The purpose of such inspection is not to 121 determine if the condition of an existing building is in 122 compliance with the Florida Building Code or the firesafety 123 code. 124 (b) "Substantial structural deterioration" means 125 CS/HB 1395 2023 CODING: Words stricken are deletions; words underlined are additions. hb1395-01-c1 Page 6 of 50 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 substantial structural distress or a substantial structural 126 weakness that negatively affects a building's general structural 127 condition and integrity. T he term does not include surface 128 imperfections such as cracks, distortion, sagging, deflections, 129 misalignment, signs of leakage, or peeling of finishes unless 130 the licensed general contractor, building code administrator, 131 building code inspector, engineer, or architect performing the 132 phase one or phase two inspection determines that such surface 133 imperfections are a sign of substantial structural 134 deterioration. 135 (3) A condominium association under chapter 718 and a 136 cooperative association under chapter 719 m ust have a milestone 137 inspection performed for each building that is three stories or 138 more in height by December 31 of the year in which the building 139 reaches 25 30 years of age, based on the date the certificate of 140 occupancy for the building was issued, and every 10 years 141 thereafter. If the building is located within 3 miles of a 142 coastline as defined in s. 376.031, the condominium association 143 or cooperative association must have a milestone inspection 144 performed by December 31 of the year in which the buildin g 145 reaches 25 years of age, based on the date the certificate of 146 occupancy for the building was issued, and every 10 years 147 thereafter. The condominium association or cooperative 148 association must arrange for the milestone inspection to be 149 performed and is responsible for ensuring compliance with the 150 CS/HB 1395 2023 CODING: Words stricken are deletions; words underlined are additions. hb1395-01-c1 Page 7 of 50 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 of this section. The condominium association or 151 cooperative association is responsible for all costs associated 152 with the inspection. This subsection does not apply to 153 associations that only include a single-family, two-family, or 154 three-family dwellings dwelling with three or fewer habitable 155 stories above ground. 156 (4) If a milestone inspection is required under this 157 section and the building's certificate of occupancy was issued 158 on or before December 31, 1994 July 1, 1992, the building's 159 initial milestone inspection must be performed before December 160 31, 2024. If a milestone inspection is required under this 161 section and the building's certificate of occupancy was issued 162 during the period of January 1, 199 5, through December 31, 2000, 163 the building's initial milestone inspection must be performed 164 before December 31, 2026. The local enforcement agency may 165 extend the deadline for a building's initial milestone 166 inspection upon a showing of good cause by the con dominium or 167 cooperative association that the association has entered into a 168 contract for the performance of the milestone inspection but 169 that the inspection cannot reasonably be completed before the 170 deadline. If the date of issuance for the certificate of 171 occupancy is not available, the date of issuance of the 172 building's certificate of occupancy shall be the date of 173 occupancy evidenced in any record of the local building 174 official. 175 CS/HB 1395 2023 CODING: Words stricken are deletions; words underlined are additions. hb1395-01-c1 Page 8 of 50 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 (5) Upon determining that a building must have a milestone 176 inspection, the local enforcement agency must provide written 177 notice of such required inspection to the condominium 178 association or cooperative association by certified mail, return 179 receipt requested. The condominium or cooperative association 180 must notify the unit owners o f the required milestone inspection 181 within 14 days after receipt of the written notice from the 182 local enforcement agency and provide the date that the milestone 183 inspection must be completed. 184 (6) Within 180 days after receiving the written notice 185 under subsection (5), the condominium association or cooperative 186 association must complete phase one of the milestone inspection. 187 For purposes of this section, completion of phase one of the 188 milestone inspection means the licensed general contractor, 189 building code administrator, building code inspector, engineer, 190 or architect who performed the phase one inspection submitted 191 the inspection report by e -mail, United States Postal Service, 192 or commercial delivery service to the local enforcement agency. 193 (7) A milestone inspection consists of two phases: 194 (a) For phase one of the milestone inspection, a general 195 contractor licensed under chapter 489 with at least 5 years' 196 experience building or constructing threshold buildings, a 197 building code administrator or building code inspector licensed 198 under part XII of chapter 468 with at least 5 years' experience 199 inspecting threshold buildings, or a licensed architect or 200 CS/HB 1395 2023 CODING: Words stricken are deletions; words underlined are additions. hb1395-01-c1 Page 9 of 50 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 engineer authorized to practice in this state shall perform a 201 visual examination of habitable and nonhabitable areas of a 202 building, including the major structural components of a 203 building, and provide a qualitative assessment of the structural 204 conditions of the building. If the general contractor, bu ilding 205 code administrator, building code inspector, architect, or 206 engineer finds no signs of substantial structural deterioration 207 to any building components under visual examination, phase two 208 of the inspection, as provided in paragraph (b), is not 209 required. A general contractor, a building code administrator, a 210 building code inspector, an architect, or an engineer who 211 completes a phase one milestone inspection shall prepare and 212 submit an inspection report pursuant to subsection (8). 213 (b) A phase two of th e milestone inspection must be 214 performed if any substantial structural deterioration is 215 identified during phase one. Only a licensed architect or 216 engineer authorized to practice in this state may perform a 217 phase two milestone inspection. If a phase two ins pection is 218 required, the association must contract, within 90 days after 219 receipt of the phase one inspection report, with a licensed 220 architect or engineer to perform the phase two inspection. The 221 licensed architect or engineer contracted with to perform th e 222 inspection must begin the phase two inspection within 90 days 223 after entering into a contract with the association. A phase two 224 inspection may involve destructive or nondestructive testing at 225 CS/HB 1395 2023 CODING: Words stricken are deletions; words underlined are additions. hb1395-01-c1 Page 10 of 50 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 inspector's direction. The inspection may be as extensive o r 226 as limited as necessary to fully assess areas of structural 227 distress in order to confirm that the building is structurally 228 sound and safe for its intended use and to recommend a program 229 for fully assessing and repairing distressed and damaged 230 portions of the building. When determining testing locations, 231 the inspector must give preference to locations that are the 232 least disruptive and most easily repairable while still being 233 representative of the structure. An inspector who completes a 234 phase two milestone inspection shall prepare and submit an 235 inspection report pursuant to subsection (8). 236 (8) Upon completion of a phase one or phase two milestone 237 inspection, the general contractor, building code administrator, 238 building code inspector, architect, or engineer who performed 239 the inspection must submit a copy, or a sealed copy, if 240 applicable, of the inspection report with a separate summary of, 241 at minimum, the material findings and recommendations in the 242 inspection report to the condominium association or cooper ative 243 association, and to the building official of the local 244 government which has jurisdiction. The inspection report must, 245 at a minimum, meet all of the following criteria: 246 (a)1. Bear an attestation and signature, or electronic 247 signature, of the license d general contractor, building code 248 administrator, or building code inspector who performed the 249 inspection; or 250 CS/HB 1395 2023 CODING: Words stricken are deletions; words underlined are additions. hb1395-01-c1 Page 11 of 50 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 2. Bear the seal and signature, or the electronic 251 signature, of the licensed engineer or architect who performed 252 the inspection, 253 254 indicating that such report complies with the statutory 255 requirements for the inspection . 256 (b) Indicate the manner and type of inspection forming the 257 basis for the inspection report. 258 (c) Identify any substantial structural deterioration, 259 within a reasonable profess ional probability based on the scope 260 of the inspection, describe the extent of such deterioration, 261 and identify any recommended repairs for such deterioration. 262 (d) State whether unsafe or dangerous conditions, as those 263 terms are defined in the Florida Bu ilding Code, were observed. 264 (e) Recommend any remedial or preventive repair for any 265 items that are damaged but are not substantial structural 266 deterioration. 267 (f) Identify and describe any items requiring further 268 inspection. 269 (11) A board of county comm issioners or the governing body 270 of a municipality may adopt an ordinance requiring that a 271 condominium or cooperative association schedule or commence 272 repairs for substantial structural deterioration within a 273 specified timeframe after the local enforcement agency receives 274 a phase two inspection report; however, such repairs must be 275 CS/HB 1395 2023 CODING: Words stricken are deletions; words underlined are additions. hb1395-01-c1 Page 12 of 50 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 commenced within 365 days after receiving such report. If an 276 association fails to submit proof to the local enforcement 277 agency that repairs have been scheduled or have commenced f or 278 substantial structural deterioration identified in a phase two 279 inspection report within the required timeframe, the local 280 enforcement agency must review and determine if the building is 281 unsafe for human occupancy. 282 (12) The Florida Building Commission shall review the 283 milestone inspection requirements under this section and make 284 recommendations, if any, to the Legislature to ensure 285 inspections are sufficient to determine the structural integrity 286 of a building. The commission must provide a written repor t of 287 any recommendations to the Governor, the President of the 288 Senate, and the Speaker of the House of Representatives by 289 December 31, 2022. 290 (13) By October 1, 2023, the Florida Building Commission 291 shall create a standardized milestone inspection report form for 292 the submission of such reports to local enforcement agencies by 293 general contractors, building code administrators, building code 294 inspectors, engineers, and architects. Local enforcement 295 agencies must require that the standardized form be used to 296 submit such reports. 297 Section 3. Paragraph (aa) of subsection (6) of section 298 627.351, Florida Statutes, is amended to read: 299 627.351 Insurance risk apportionment plans. — 300 CS/HB 1395 2023 CODING: Words stricken are deletions; words underlined are additions. hb1395-01-c1 Page 13 of 50 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 (6) CITIZENS PROPERTY INSURANCE CORPORATION. — 301 (aa) Except as otherwise provided in this paragraph, the 302 corporation shall require the securing and maintaining of flood 303 insurance as a condition of coverage of a personal lines 304 residential risk. The insured or applicant must execute a form 305 approved by the office affirming that flood insu rance is not 306 provided by the corporation and that if flood insurance is not 307 secured by the applicant or insured from an insurer other than 308 the corporation and in addition to coverage by the corporation, 309 the risk will not be eligible for coverage by the cor poration. 310 The corporation may deny coverage of a personal lines 311 residential risk to an applicant or insured who refuses to 312 secure and maintain flood insurance. The requirement to purchase 313 flood insurance shall be implemented as follows: 314 1. Except as provided in subparagraphs 2. and 3., all 315 personal lines residential policyholders must have flood 316 coverage in place for policies effective on or after: 317 a. January 1, 2024, for property valued at $600,000 or 318 more. 319 b. January 1, 2025, for property valued at $500,000 or 320 more. 321 c. January 1, 2026, for property valued at $400,000 or 322 more. 323 d. January 1, 2027, for all other personal lines 324 residential property insured by the corporation. 325 CS/HB 1395 2023 CODING: Words stricken are deletions; words underlined are additions. hb1395-01-c1 Page 14 of 50 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 2. All personal lines residential policyholders whose 326 property insured by the corporation is located within the 327 special flood hazard area defined by the Federal Emergency 328 Management Agency must have flood coverage in place: 329 a. At the time of initial policy issuance for all new 330 personal lines residential policies issued by the corporation on 331 or after April 1, 2023. 332 b. By the time of the policy renewal for all personal 333 lines residential policies renewing on or after July 1, 2023. 334 3. Policyholders whose policies issued by the corporation 335 do not provide coverage for the peril of wind are not required 336 to purchase flood insurance as a condition for maintaining their 337 policies issued by with the corporation, if such policy: 338 a. Does not provide coverage for the peril of wind. 339 b. Provides coverage under a condominium unit owners or 340 condominium tenant form and the policyholder's unit is covered 341 under a master flood policy issued to someone other than the 342 policyholder. 343 c. Provides coverage under a condominium unit owners or 344 condominium tenant form and the policyholder resides in a 345 condominium unit with occupiable space that is not less than 40 346 feet above the grade plane, as defined in the Florida Building 347 Code. A unit located on the fifth floor above the grade plane or 348 higher is deemed to be not less than 40 feet above the grade 349 plane, as defined in the Florida Building Code. A unit owner or 350 CS/HB 1395 2023 CODING: Words stricken are deletions; words underlined are additions. hb1395-01-c1 Page 15 of 50 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 condominium association may submit a certification from an 351 engineer licensed under chapter 471, a surveyor and mapper 352 licensed under chapter 472, or an architect licensed under 353 chapter 481, detailing which units in the condominium 354 association are not less than 40 feet above the grade plane, as 355 defined in the Florida Building Code, and the corporation may 356 rely on such certification . 357 358 The flood insurance required under this paragraph must meet, a t 359 a minimum, the coverage available from the National Flood 360 Insurance Program or the requirements of subparagraphs s. 361 627.715(1)(a)1., 2., and 3. 362 Section 4. Subsection (25) of section 718.103, Florida 363 Statutes, is amended to read: 364 718.103 Definitions .—As used in this chapter, the term: 365 (25) "Structural integrity reserve study" means a study of 366 the reserve funds required for future major repairs and 367 replacement of the common areas based on a visual inspection of 368 the common areas. A structural integri ty reserve study may be 369 performed by any person qualified to perform such study. 370 However, the visual inspection portion of the structural 371 integrity reserve study must be performed by an engineer 372 licensed under chapter 471 , a general contractor licensed und er 373 chapter 489 with at least 5 years' experience building or 374 constructing threshold buildings as defined in s. 553.71, a 375 CS/HB 1395 2023 CODING: Words stricken are deletions; words underlined are additions. hb1395-01-c1 Page 16 of 50 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 building code administrator or building code inspector licensed 376 under part XII of chapter 468 with at least 5 years' experience 377 inspecting threshold buildings as defined in s. 553.71, or an 378 architect licensed under chapter 481. At a minimum, a structural 379 integrity reserve study must identify the common areas being 380 visually inspected, state the estimated remaining useful life 381 and the estimated replacement cost or deferred maintenance 382 expense of the common areas being visually inspected, and 383 provide a recommended annual reserve amount that achieves the 384 estimated replacement cost or deferred maintenance expense of 385 each common area being visua lly inspected by the end of the 386 estimated remaining useful life of each common area. 387 Section 5. Paragraphs (f), (g), and (h) of subsection (2) 388 of section 718.112, Florida Statutes, are amended to read: 389 718.112 Bylaws.— 390 (2) REQUIRED PROVISIONS. —The bylaws shall provide for the 391 following and, if they do not do so, shall be deemed to include 392 the following: 393 (f) Annual budget.— 394 1. The proposed annual budget of estimated revenues and 395 expenses must be detailed and must show the amounts budgeted by 396 accounts and expense classifications, including, at a minimum, 397 any applicable expenses listed in s. 718.504(21). The board 398 shall adopt the annual budget at least 14 days before the start 399 of the association's fiscal year. In the event that the board 400 CS/HB 1395 2023 CODING: Words stricken are deletions; words underlined are additions. hb1395-01-c1 Page 17 of 50 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 fails to timely adopt the annual budget a second time, it is 401 deemed a minor violation and the prior year's budget shall 402 continue in effect until a new budget is adopted. A 403 multicondominium association must adopt a separate budget of 404 common expenses for each condomini um the association operates 405 and must adopt a separate budget of common expenses for the 406 association. In addition, if the association maintains limited 407 common elements with the cost to be shared only by those 408 entitled to use the limited common elements as p rovided for in 409 s. 718.113(1), the budget or a schedule attached to it must show 410 the amount budgeted for this maintenance. If, after turnover of 411 control of the association to the unit owners, any of the 412 expenses listed in s. 718.504(21) are not applicable, they do 413 not need to be listed. 414 2.a. In addition to annual operating expenses, the budget 415 must include reserve accounts for capital expenditures and 416 deferred maintenance. These accounts must include, but are not 417 limited to, roof replacement, building pain ting, and pavement 418 resurfacing, regardless of the amount of deferred maintenance 419 expense or replacement cost, and any other item that has a 420 deferred maintenance expense or replacement cost that exceeds 421 $10,000, and those items listed in paragraph (g) that will 422 require maintenance, repair, or replacement within the next 25 423 years. The amount to be reserved for an item is determined by 424 the association's most recent structural integrity reserve study 425 CS/HB 1395 2023 CODING: Words stricken are deletions; words underlined are additions. hb1395-01-c1 Page 18 of 50 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 must be completed as provided in paragraph (g) by December 426 31, 2024. If the amount to be reserved for an item is not in the 427 association's initial or most recent structural integrity 428 reserve study or the association has not completed a structural 429 integrity reserve study, the amount must be computed using a 430 formula based upon estimated remaining useful life and estimated 431 replacement cost or deferred maintenance expense of the reserve 432 item. However, any item with a remaining useful life greater 433 than 25 years is not required to be included in the study. If an 434 association is required to complete a structural integrity 435 reserve study, the association's budget must maintain reserves, 436 in the amount recommended in the association's most recent 437 structural integrity reserve study, for the items listed in 438 paragraph (g). The association may adjust replacement reserve 439 assessments annually to take into account any changes in 440 estimates or extension of the useful life of a reserve item 441 caused by deferred maintenance. The members of a unit -owner-442 controlled association may determine, by a majority vote at a 443 duly called meeting of the association, to provide no reserves 444 or less reserves than required by this subsection. Effective 445 December 31, 2024, the members of a unit -owner-controlled 446 association that is required to complete a struct ural integrity 447 reserve study may not determine to provide no reserves or less 448 reserves than required by this subsection for items listed in 449 paragraph (g). 450 CS/HB 1395 2023 CODING: Words stricken are deletions; words underlined are additions. hb1395-01-c1 Page 19 of 50 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 b. Before turnover of control of an association by a 451 developer to unit owners other than a develope r under s. 452 718.301, the developer -controlled association may not vote to 453 waive the reserves or reduce funding of the reserves. If a 454 meeting of the unit owners has been called to determine whether 455 to waive or reduce the funding of reserves and no such resul t is 456 achieved or a quorum is not attained, the reserves included in 457 the budget shall go into effect. After the turnover, the 458 developer may vote its voting interest to waive or reduce the 459 funding of reserves. 460 3. Reserve funds and any interest accruing the reon shall 461 remain in the reserve account or accounts, and may be used only 462 for authorized reserve expenditures unless their use for other 463 purposes is approved in advance by a majority vote at a duly 464 called meeting of the association. Before turnover of con trol of 465 an association by a developer to unit owners other than the 466 developer pursuant to s. 718.301, the developer -controlled 467 association may not vote to use reserves for purposes other than 468 those for which they were intended. Effective December 31, 2024, 469 members of a unit-owner-controlled association that is required 470 to complete a structural integrity reserve study may not vote to 471 use reserve funds, or any interest accruing thereon, that are 472 reserved for items listed in paragraph (g) for any other purpose 473 other than their intended purpose. 474 4. The only voting interests that are eligible to vote on 475 CS/HB 1395 2023 CODING: Words stricken are deletions; words underlined are additions. hb1395-01-c1 Page 20 of 50 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 questions that involve waiving or reducing the funding of 476 reserves, or using existing reserve funds for purposes other 477 than purposes for which the reserves were intended, are the 478 voting interests of the units subject to assessment to fund the 479 reserves in question. Proxy questions relating to waiving or 480 reducing the funding of reserves or using existing reserve funds 481 for purposes other than purposes for which the reserves were 482 intended must contain the following statement in capitalized, 483 bold letters in a font size larger than any other used on the 484 face of the proxy ballot: WAIVING OF RESERVES, IN WHOLE OR IN 485 PART, OR ALLOWING ALTERNATIVE USES OF EXISTING RESERVES MAY 486 RESULT IN UNIT OWNER LIABILITY FOR PAYMENT OF UNANTICIPATED 487 SPECIAL ASSESSMENTS REGARDING THOSE ITEMS. 488 (g) Structural integrity reserve study. — 489 1. An association must have a structural integrity reserve 490 study completed at least every 10 years after the condominium's 491 creation for each building on the condominium property that is 492 three stories or higher in height which includes, at a minimum, 493 a study of the following items as related to the structural 494 integrity and safety of the building: 495 a. Roof. 496 b. Load-bearing walls or other primary structural members. 497 c. Floor. 498 d. Foundation. 499 e. Fireproofing and fire protection systems. 500 CS/HB 1395 2023 CODING: Words stricken are deletions; words underlined are additions. hb1395-01-c1 Page 21 of 50 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 f. Plumbing. 501 g. Electrical systems. 502 h. Waterproofing and exterior painting. 503 i. Windows and exterior doors. 504 j. Any other item that has a deferred maintenance expense 505 or replacement cost that exceeds $10,000 and the failure to 506 replace or maintain such item negatively affects the items 507 listed in sub-subparagraphs a.-i., as determined by the licensed 508 engineer, general contractor, building code administrator, 509 building code inspector, or architect performing the visual 510 inspection portion of the structural integrity reserve study. 511 2. Before a developer turns over control of an association 512 to unit owners other than the d eveloper, the developer must have 513 a structural integrity reserve study completed for each building 514 on the condominium property that is three stories or higher in 515 height. 516 3. Associations that existing on or before July 1, 2022, 517 which are controlled by uni t owners other than the developer, 518 must have a structural integrity reserve study completed by 519 December 31, 2024, for each building on the condominium property 520 that is three stories or higher in height. An association that 521 is required to complete a milesto ne inspection on or before 522 December 31, 2026, in accordance with s. 553.899, may complete 523 the structural integrity reserve study simultaneously with the 524 milestone inspection. In no event may the structural integrity 525 CS/HB 1395 2023 CODING: Words stricken are deletions; words underlined are additions. hb1395-01-c1 Page 22 of 50 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 reserve study be completed after Decembe r 31, 2026. 526 4. If an association fails to complete a structural 527 integrity reserve study pursuant to this paragraph, such failure 528 is a breach of an officer's and director's fiduciary 529 relationship to the unit owners under s. 718.111(1). 530 5. If the milestone inspection required by s. 553.899, or 531 an inspection completed for a similar local requirement, was 532 performed within the past 5 years and meets the requirements of 533 this paragraph, such inspection may be used in place of the 534 visual inspection portion of t he structural integrity reserve 535 study. 536 (h) Mandatory milestone inspections. —If an association is 537 required to have a milestone inspection performed pursuant to s. 538 553.899, the association must arrange for the milestone 539 inspection to be performed and is re sponsible for ensuring 540 compliance with the requirements of s. 553.899. The association 541 is responsible for all costs associated with the inspection. If 542 the officers or directors of an association willfully and 543 knowingly fail to have a milestone inspection p erformed pursuant 544 to s. 553.899, such failure is a breach of the officers' and 545 directors' fiduciary relationship to the unit owners under s. 546 718.111(1)(a). Within 60 days after Upon completion of a phase 547 one or phase two milestone inspection and receipt of the 548 inspector-prepared summary of the milestone inspection report 549 from any phase one or phase two milestone inspection from the 550 CS/HB 1395 2023 CODING: Words stricken are deletions; words underlined are additions. hb1395-01-c1 Page 23 of 50 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 architect or engineer who performed the inspection , the 551 association must distribute a copy of the inspector -prepared 552 summary of the inspection report to each unit owner, regardless 553 of the findings or recommendations in the report, by United 554 States mail or personal delivery and by electronic transmission 555 to unit owners who previously consented to receive notice by 556 electronic transmission; must post a copy of the inspector -557 prepared summary in a conspicuous place on the condominium 558 property; and must publish the full report and inspector -559 prepared summary on the association's website, if the 560 association is required to have a website. If the visual 561 inspection portion of the structural integrity reserve study 562 required under paragraph (g) was performed within the past 5 563 years and meets the requirements for a milestone inspection in 564 s. 553.899, such inspection may be used in place of the ph ase 565 one milestone inspection. 566 Section 6. Effective July 1, 2027, subsection (5) of 567 section 718.1255, Florida Statutes, is amended, and paragraph 568 (d) is added to subsection (1) of that section, to read: 569 718.1255 Alternative dispute resolution; mediati on; 570 nonbinding arbitration; applicability. — 571 (1) DEFINITIONS.—As used in this section, the term 572 "dispute" means any disagreement between two or more parties 573 that involves: 574 (d) The failure of a board of administration, when 575 CS/HB 1395 2023 CODING: Words stricken are deletions; words underlined are additions. hb1395-01-c1 Page 24 of 50 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 required by this chapter or a governing document of the 576 association, to: 577 1. Obtain a milestone inspection as required under s. 578 553.899. 579 2. Obtain a structural integrity reserve study as required 580 under s. 718.112(2)(g). 581 3. Fund reserve accounts as required for an item 582 identified in s. 718.112(2)(g). 583 4. Make or provide necessary maintenance or repairs of the 584 condominium property as recommended by a milestone inspection or 585 a structural integrity reserve study. 586 587 "Dispute" does not include any disagreement that primarily 588 involves: title to any unit or common element; the 589 interpretation or enforcement of any warranty; the levy of a fee 590 or assessment, or the collection of an assessment levied against 591 a party; the eviction or other removal of a tenant from a unit; 592 alleged breaches of fid uciary duty by one or more directors; or 593 claims for damages to a unit based upon the alleged failure of 594 the association to maintain the common elements or condominium 595 property. 596 (5) PRESUIT MEDIATION. —In lieu of the initiation of 597 nonbinding arbitration as provided in subsections (1) -(4), a 598 party may submit a dispute to presuit mediation in accordance 599 with s. 720.311, except for: 600 CS/HB 1395 2023 CODING: Words stricken are deletions; words underlined are additions. hb1395-01-c1 Page 25 of 50 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) Disputes listed in paragraph (1)(d) are not subject to 601 nonbinding arbitration under subsection (4) and must be 602 submitted to presuit mediation in accordance with s. 720.311. ; 603 however, 604 (b) Election and recall disputes are not eligible for 605 mediation and such disputes must be arbitrated by the division 606 or filed in a court of competent jurisdiction. 607 Section 7. Section 718.13, Florida Statutes, is created to 608 read: 609 718.13 Injunctive relief. — 610 (1) A unit owner may institute an action in a court of 611 competent jurisdiction in which the condominium is located to 612 seek injunctive relief against the association to: 613 (a) Enforce compliance with milestone inspection 614 requirements under s. 553.899 and structural integrity reserve 615 study requirements under s. 718.112(2)(g). 616 (b) Prevent irreparable injury to unit owners and the 617 association and to protect human health, safety, and welfare 618 caused or threatened by any violation of the milestone 619 inspection requirements under s. 553.899 and structural 620 integrity reserve study requirements under s. 718.112(2)(g). 621 (2) The division may, in the name of the state, seek 622 injunctive relief in any cour t of competent jurisdiction in 623 which the condominium is located to obtain relief against the 624 association to enforce compliance with milestone inspection 625 CS/HB 1395 2023 CODING: Words stricken are deletions; words underlined are additions. hb1395-01-c1 Page 26 of 50 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. 553.899. A proceeding commenced under this 626 subsection is in addition to, and not in lieu of, any other 627 penalty or remedy under this chapter. 628 (3) Any local authority having jurisdiction to enforce 629 milestone inspection requirements may seek injunctive relief 630 from any court of competent jurisdiction in which the 631 condominium is located a gainst the association to enforce 632 compliance with milestone inspection requirements under s. 633 553.899, upon an affidavit of the local authority having 634 jurisdiction specifying the manner in which the condominium does 635 not conform to the requirements of s. 553 .899. 636 Section 8. Paragraph (p) of subsection (4) of section 637 718.301, Florida Statutes, is amended to read: 638 718.301 Transfer of association control; claims of defect 639 by association.— 640 (4) At the time that unit owners other than the developer 641 elect a majority of the members of the board of administration 642 of an association, the developer shall relinquish control of the 643 association, and the unit owners shall accept control. 644 Simultaneously, or for the purposes of paragraph (c) not more 645 than 90 days thereafter, the developer shall deliver to the 646 association, at the developer's expense, all property of the 647 unit owners and of the association which is held or controlled 648 by the developer, including, but not limited to, the following 649 items, if applicable, as to each condominium operated by the 650 CS/HB 1395 2023 CODING: Words stricken are deletions; words underlined are additions. hb1395-01-c1 Page 27 of 50 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: 651 (p) Notwithstanding when the certificate of occupancy was 652 issued or the height of the building, a milestone inspection 653 report in compliance with s. 553.899 included in the official 654 records, under seal of an architect or engineer or under 655 attestation of a general contractor, building code 656 administrator, or building code inspector authorized to practice 657 in this state indicating that such report complies with the 658 statutory requirements for the inspection , and attesting to 659 required maintenance, condition, usef ul life, and replacement 660 costs of the following applicable condominium property 661 comprising a turnover inspection report: 662 1. Roof. 663 2. Structure, including load -bearing walls and primary 664 structural members and primary structural systems as those terms 665 are defined in s. 627.706. 666 3. Fireproofing and fire protection systems. 667 4. Elevators. 668 5. Heating and cooling systems. 669 6. Plumbing. 670 7. Electrical systems. 671 8. Swimming pool or spa and equipment. 672 9. Seawalls. 673 10. Pavement and parking areas. 674 11. Drainage systems. 675 CS/HB 1395 2023 CODING: Words stricken are deletions; words underlined are additions. hb1395-01-c1 Page 28 of 50 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 12. Painting. 676 13. Irrigation systems. 677 14. Waterproofing. 678 Section 9. Paragraph (b) of subsection (1) and paragraph 679 (a) of subsection (2) of section 718.503, Florida Statutes, are 680 amended, and paragraph (d) is added to subsectio n (1) and 681 paragraph (e) is added to subsection (2) of that section, to 682 read: 683 718.503 Developer disclosure prior to sale; nondeveloper 684 unit owner disclosure prior to sale; voidability. — 685 (1) DEVELOPER DISCLOSURE. — 686 (b) Copies of documents to be furnishe d to prospective 687 buyer or lessee.—Until such time as the developer has furnished 688 the documents listed below to a person who has entered into a 689 contract to purchase a residential unit or lease it for more 690 than 5 years, the contract may be voided by that per son, 691 entitling the person to a refund of any deposit together with 692 interest thereon as provided in s. 718.202. The contract may be 693 terminated by written notice from the proposed buyer or lessee 694 delivered to the developer within 15 days after the buyer or 695 lessee receives all of the documents required by this section. 696 The developer may not close for 15 days after the execution of 697 the agreement and delivery of the documents to the buyer as 698 evidenced by a signed receipt for documents unless the buyer is 699 informed in the 15-day voidability period and agrees to close 700 CS/HB 1395 2023 CODING: Words stricken are deletions; words underlined are additions. hb1395-01-c1 Page 29 of 50 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 before the expiration of the 15 days. The developer shall retain 701 in his or her records a separate agreement signed by the buyer 702 as proof of the buyer's agreement to close before the expiration 703 of the voidability period. The developer must retain such proof 704 for a period of 5 years after the date of the closing of the 705 transaction. The documents to be delivered to the prospective 706 buyer are the prospectus or disclosure statement with all 707 exhibits, if the development is subject to s. 718.504, or, if 708 not, then copies of the following which are applicable: 709 1. The question and answer sheet described in s. 718.504, 710 and declaration of condominium, or the proposed declaration if 711 the declaration has not been recor ded, which shall include the 712 certificate of a surveyor approximately representing the 713 locations required by s. 718.104. 714 2. The documents creating the association. 715 3. The bylaws. 716 4. The ground lease or other underlying lease of the 717 condominium. 718 5. The management contract, maintenance contract, and 719 other contracts for management of the association and operation 720 of the condominium and facilities used by the unit owners having 721 a service term in excess of 1 year, and any management contracts 722 that are renewable. 723 6. The estimated operating budget for the condominium and 724 a schedule of expenses for each type of unit, including fees 725 CS/HB 1395 2023 CODING: Words stricken are deletions; words underlined are additions. hb1395-01-c1 Page 30 of 50 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 assessed pursuant to s. 718.113(1) for the maintenance of 726 limited common elements where such costs are shared only by 727 those entitled to use the limited common elements. 728 7. The lease of recreational and other facilities that 729 will be used only by unit owners of the subject condominium. 730 8. The lease of recreational and other common facilities 731 that will be used by unit owners in c ommon with unit owners of 732 other condominiums. 733 9. The form of unit lease if the offer is of a leasehold. 734 10. Any declaration of servitude of properties serving the 735 condominium but not owned by unit owners or leased to them or 736 the association. 737 11. If the development is to be built in phases or if the 738 association is to manage more than one condominium, a 739 description of the plan of phase development or the arrangements 740 for the association to manage two or more condominiums. 741 12. If the condominium is a conversion of existing 742 improvements, the statements and disclosure required by s. 743 718.616. 744 13. The form of agreement for sale or lease of units. 745 14. A copy of the floor plan of the unit and the plot plan 746 showing the location of the residential building s and the 747 recreation and other common areas. 748 15. A copy of all covenants and restrictions that will 749 affect the use of the property and are not contained in the 750 CS/HB 1395 2023 CODING: Words stricken are deletions; words underlined are additions. hb1395-01-c1 Page 31 of 50 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 foregoing. 751 16. If the developer is required by state or local 752 authorities to obtain acceptan ce or approval of any dock or 753 marina facilities intended to serve the condominium, a copy of 754 any such acceptance or approval acquired by the time of filing 755 with the division under s. 718.502(1), or a statement that such 756 acceptance or approval has not been acquired or received. 757 17. Evidence demonstrating that the developer has an 758 ownership, leasehold, or contractual interest in the land upon 759 which the condominium is to be developed. 760 18. A copy of the inspector -prepared summary of the 761 milestone inspection report as described in ss. 553.899 and 762 718.112(2)(h) ss. 553.899 and 718.301(4)(p) . 763 19. A copy of the association's most recent structural 764 integrity reserve study or a statement that the association has 765 not completed a structural integrity reserve study . 766 (d) Milestone inspection or structural integrity reserve 767 study.— 768 1. If the association is required to have a milestone 769 inspection as described in ss. 553.899 and 718.112(2)(h) or a 770 structural integrity reserve study as described in s. 771 718.112(2)(g), and the association has not completed the 772 milestone inspection or structural integrity reserve study, each 773 contract entered into on or after January 1, 2025, for the sale 774 of a residential unit must contain in conspicuous type a 775 CS/HB 1395 2023 CODING: Words stricken are deletions; words underlined are additions. hb1395-01-c1 Page 32 of 50 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 statement indicating that th e association is required to have a 776 milestone inspection or a structural integrity reserve study and 777 the association has failed to complete such inspection or study, 778 as applicable. 779 2. If the association is required to have a milestone 780 inspection as described in ss. 553.899 and 718.112(2)(h) or a 781 structural integrity reserve study as described in s. 782 718.112(2)(g), and the association has completed such inspection 783 or study, each contract entered into on or after January 1, 784 2025, for the sale of a residentia l unit must contain a copy of 785 the most recent milestone inspection report or structural 786 integrity reserve study, as applicable. 787 3. If the association is not required to have a milestone 788 inspection as described in ss. 553.899 and 718.112(2)(h) or a 789 structural integrity reserve study as described in s. 790 718.112(2)(g), each contract entered into on or after January 1, 791 2025, for the sale of a residential unit must contain in 792 conspicuous type a statement indicating that the association is 793 not required to have a milestone inspection or a structural 794 integrity reserve study, as applicable. 795 (2) NONDEVELOPER DISCLOSURE. — 796 (a) Each unit owner who is not a developer as defined by 797 this chapter must comply with this subsection before the sale of 798 his or her unit. Each prospective purchaser who has entered into 799 a contract for the purchase of a condominium unit is entitled, 800 CS/HB 1395 2023 CODING: Words stricken are deletions; words underlined are additions. hb1395-01-c1 Page 33 of 50 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 at the seller's expense, to a current copy of all of the 801 following: 802 1. The declaration of condominium. 803 2. Articles of incorporation of the associa tion. 804 3. Bylaws and rules of the association. 805 4. Financial information required by s. 718.111. 806 5. A copy of the inspector -prepared summary of the 807 milestone inspection report as described in ss. 553.899 and 808 718.112(2)(h) ss. 553.899 and 718.301(4)(p) , if applicable. 809 6. The association's most recent structural integrity 810 reserve study or a statement that the association has not 811 completed a structural integrity reserve study. 812 7. The document entitled "Frequently Asked Questions and 813 Answers" required by s. 718.504. 814 (e)1. If the association is required to have a milestone 815 inspection as described in ss. 553.899 and 718.112(2)(h) or a 816 structural integrity reserve study as described in s. 817 718.112(2)(g), and the association has not completed the 818 milestone inspection or structural integrity reserve study, each 819 contract entered into on or after January 1, 2025, for the sale 820 of a residential unit must contain in conspicuous type a 821 statement indicating that the association is required to have a 822 milestone inspection or a structural integrity reserve study and 823 the association has failed to complete such inspection or study, 824 as applicable. 825 CS/HB 1395 2023 CODING: Words stricken are deletions; words underlined are additions. hb1395-01-c1 Page 34 of 50 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 2. If the association is required to have a milestone 826 inspection as described in ss. 553.899 and 718.112(2)(h) or a 827 structural integrity reserve study as described in s. 828 718.112(2)(g), and the association has completed such inspection 829 or study, each contract entered into on or after January 1, 830 2025, for the sale of a residential unit must contain a copy of 831 the most recent milest one inspection report or structural 832 integrity reserve study, as applicable. 833 3. If the association is not required to have a milestone 834 inspection as described in ss. 553.899 and 718.112(2)(h) or a 835 structural integrity reserve study as described in s. 836 718.112(2)(g), each contract entered into on or after January 1, 837 2025, for the sale of a residential unit must contain in 838 conspicuous type a statement indicating that the association is 839 not required to have a milestone inspection or a structural 840 integrity reserve study, as applicable. 841 Section 10. Subsection (24) of section 719.103, Florida 842 Statutes, is amended to read: 843 719.103 Definitions. —As used in this chapter: 844 (24) "Structural integrity reserve study" means a study of 845 the reserve funds required for future major repairs and 846 replacement of the common areas based on a visual inspection of 847 the common areas. A structural integrity reserve study may be 848 performed by any person qualified to perform such study. 849 However, the visual inspection portion of the st ructural 850 CS/HB 1395 2023 CODING: Words stricken are deletions; words underlined are additions. hb1395-01-c1 Page 35 of 50 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 must be performed by an engineer 851 licensed under chapter 471 , a general contractor licensed under 852 chapter 489 with at least 5 years' experience building or 853 constructing threshold buildings as defined in s. 553.71; a 854 building code administrator or building code inspector licensed 855 under part XII of chapter 468 with at least 5 years' experience 856 inspecting threshold buildings as defined in s. 553.71; or an 857 architect licensed under chapter 481. At a minimum, a structural 858 integrity reserve study must identify the common areas being 859 visually inspected, state the estimated remaining useful life 860 and the estimated replacement cost or deferred maintenance 861 expense of the common areas being visually inspected, and 862 provide a recommended ann ual reserve amount that achieves the 863 estimated replacement cost or deferred maintenance expense of 864 each common area being visually inspected by the end of the 865 estimated remaining useful life of each common area. 866 Section 11. Paragraphs (j), (k), and (l) of subsection (1) 867 of section 719.106, Florida Statutes, are amended to read: 868 719.106 Bylaws; cooperative ownership. — 869 (1) MANDATORY PROVISIONS. —The bylaws or other cooperative 870 documents shall provide for the following, and if they do not, 871 they shall be deemed to include the following: 872 (j) Annual budget.— 873 1. The proposed annual budget of common expenses must be 874 detailed and must show the amounts budgeted by accounts and 875 CS/HB 1395 2023 CODING: Words stricken are deletions; words underlined are additions. hb1395-01-c1 Page 36 of 50 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 expense classifications, including, if applicable, but not 876 limited to, those expe nses listed in s. 719.504(20). The board 877 of administration shall adopt the annual budget at least 14 days 878 before the start of the association's fiscal year. In the event 879 that the board fails to timely adopt the annual budget a second 880 time, it is deemed a m inor violation and the prior year's budget 881 shall continue in effect until a new budget is adopted. 882 2. In addition to annual operating expenses, the budget 883 must include reserve accounts for capital expenditures and 884 deferred maintenance. These accounts mus t include, but are not 885 be limited to, roof replacement, building painting, and pavement 886 resurfacing, regardless of the amount of deferred maintenance 887 expense or replacement cost, and for any other items for which 888 the deferred maintenance expense or replace ment cost exceeds 889 $10,000, and those items listed in paragraph (k) that will 890 require maintenance, repair, or replacement within the next 25 891 years. The amount to be reserved for an item is determined by 892 the association's most recent structural integrity res erve study 893 that must be completed as provided in paragraph (k) by December 894 31, 2024. If the amount to be reserved for an item is not in the 895 association's initial or most recent structural integrity 896 reserve study or the association has not completed a struc tural 897 integrity reserve study, the amount must be computed by means of 898 a formula which is based upon estimated remaining useful life 899 and estimated replacement cost or deferred maintenance expense 900 CS/HB 1395 2023 CODING: Words stricken are deletions; words underlined are additions. hb1395-01-c1 Page 37 of 50 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 of the reserve item. However, any item with a remaining usef ul 901 life greater than 25 years is not required to be included in the 902 study. If an association is required to complete a structural 903 integrity reserve study, the association's budget must maintain 904 reserves, in the amount recommended in the association's most 905 recent structural integrity reserve study, for the items listed 906 in paragraph (k). The association may adjust replacement reserve 907 assessments annually to take into account any changes in 908 estimates or extension of the useful life of a reserve item 909 caused by deferred maintenance. The members of a unit -owner-910 controlled association may determine, at a duly called meeting 911 of the association, for a fiscal year to provide no reserves or 912 reserves less adequate than required by this subsection. Before 913 turnover of control of an association by a developer to unit 914 owners other than a developer under s. 719.301, the developer -915 controlled association may not vote to waive the reserves or 916 reduce funding of the reserves. Effective December 31, 2024, a 917 unit-owner-controlled association that is required to complete a 918 structural integrity reserve study may not determine to provide 919 no reserves or reserves less adequate than required by this 920 paragraph for items listed in paragraph (k). If a meeting of the 921 unit owners has been calle d to determine to provide no reserves, 922 or reserves less adequate than required, and such result is not 923 attained or a quorum is not attained, the reserves as included 924 in the budget shall go into effect. 925 CS/HB 1395 2023 CODING: Words stricken are deletions; words underlined are additions. hb1395-01-c1 Page 38 of 50 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. Reserve funds and any interest accruing thereon s hall 926 remain in the reserve account or accounts, and shall be used 927 only for authorized reserve expenditures unless their use for 928 other purposes is approved in advance by a vote of the majority 929 of the voting interests, voting in person or by limited proxy at 930 a duly called meeting of the association. Before turnover of 931 control of an association by a developer to unit owners other 932 than the developer under s. 719.301, the developer may not vote 933 to use reserves for purposes other than that for which they were 934 intended. Effective December 31, 2024, members of a unit -owner-935 controlled association that is required to complete a structural 936 integrity reserve study may not vote to use reserve funds, or 937 any interest accruing thereon, that are reserved for items 938 listed in paragraph (k) for purposes other than their intended 939 purpose. 940 (k) Structural integrity reserve study. — 941 1. An association must have a structural integrity reserve 942 study completed at least every 10 years for each building on the 943 cooperative property that is three stories or higher in height 944 that includes, at a minimum, a study of the following items as 945 related to the structural integrity and safety of the building: 946 a. Roof. 947 b. Load-bearing walls or other primary structural members. 948 c. Floor. 949 d. Foundation. 950 CS/HB 1395 2023 CODING: Words stricken are deletions; words underlined are additions. hb1395-01-c1 Page 39 of 50 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. 951 f. Plumbing. 952 g. Electrical systems. 953 h. Waterproofing and exterior painting. 954 i. Windows and exterior doors. 955 j. Any other item that has a deferred maintenance expense 956 or replacement cost that exceeds $10,000 and the failure to 957 replace or maintain such item negatively affects the items 958 listed in sub-subparagraphs a.-i., as determined by the licensed 959 engineer, general contractor, building code administrator, 960 building code inspector, or architect performing the visual 961 inspection portion of the structural integrity reserve study. 962 2. Before a developer turns over control of an association 963 to unit owners other than the developer, the developer must have 964 a structural integrity reserve study complete d for each building 965 on the cooperative property that is three stories or higher in 966 height. 967 3. Associations that existing on or before July 1, 2022, 968 which are controlled by unit owners other than the developer, 969 must have a structural integrity reserve stu dy completed by 970 December 31, 2024, for each building on the cooperative property 971 that is three stories or higher in height. An association that 972 is required to complete a milestone inspection on or before 973 December 31, 2026, in accordance with s. 553.899, ma y complete 974 the structural integrity reserve study simultaneously with the 975 CS/HB 1395 2023 CODING: Words stricken are deletions; words underlined are additions. hb1395-01-c1 Page 40 of 50 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 976 reserve study be completed after December 31, 2026. 977 4. If an association fails to complete a structural 978 integrity reserve study pursuant to this paragraph, such failure 979 is a breach of an officer's and director's fiduciary 980 relationship to the unit owners under s. 719.104(8). 981 5. If the milestone inspection required by s. 553.899, or 982 an inspection completed for a similar local requirement, was 983 performed within the past 5 years and meets the requirements of 984 this paragraph, such inspection may be used in place of the 985 visual inspection portion of the structural integrity reserve 986 study. 987 (l) Mandatory milestone inspections. —If an association is 988 required to have a milestone inspection performed pursuant to s. 989 553.899, the association must arrange for the milestone 990 inspection to be performed and is responsible for ensuring 991 compliance with the requirements of s. 553.899. The asso ciation 992 is responsible for all costs associated with the inspection. If 993 the officers or directors of an association willfully and 994 knowingly fail to have a milestone inspection performed pursuant 995 to s. 553.899, such failure is a breach of the officers' and 996 directors' fiduciary relationship to the unit owners under s. 997 719.104(8)(a). Within 60 days after Upon completion of a phase 998 one or phase two milestone inspection and receipt of the 999 inspector-prepared summary of the milestone inspection report 1000 CS/HB 1395 2023 CODING: Words stricken are deletions; words underlined are additions. hb1395-01-c1 Page 41 of 50 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 1001 architect or engineer who performed the inspection , the 1002 association must distribute a copy of the inspector -prepared 1003 summary of the inspection report to each unit owner, regardless 1004 of the findings or recommendat ions in the report, by United 1005 States mail or personal delivery and by electronic transmission 1006 to unit owners who previously consented to receive notice by 1007 electronic transmission; must post a copy of the inspector -1008 prepared summary in a conspicuous place on the cooperative 1009 property; and must publish the full report and inspector -1010 prepared summary on the association's website, if the 1011 association is required to have a website. If the visual 1012 inspection portion of the structural integrity reserve study 1013 required under paragraph (k) was performed within the past 5 1014 years and meets the requirements for a milestone inspection in 1015 s. 553.899, such inspection may be used in place of the phase 1016 one milestone inspection. 1017 Section 12. Section 719.132, Florida Statutes, is created 1018 to read: 1019 719.132 Injunctive relief. — 1020 (1) A unit owner may institute an action in a court of 1021 competent jurisdiction in which the cooperative is located to 1022 seek injunctive relief against the association to: 1023 (a) Enforce compliance with mileston e inspection 1024 requirements under s. 553.899 and structural integrity reserve 1025 CS/HB 1395 2023 CODING: Words stricken are deletions; words underlined are additions. hb1395-01-c1 Page 42 of 50 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). 1026 (b) Prevent irreparable injury to unit owners and the 1027 association and to protect human health, safety, and welfare 1028 caused or threatened by an y violation of the milestone 1029 inspection requirements under s. 553.899 and structural 1030 integrity reserve requirements under s. 719.106(1)(k). 1031 (2) The division may, in the name of the state, seek 1032 injunctive relief in any court of competent jurisdiction in 1033 which the cooperative is located to obtain relief against the 1034 association to enforce compliance with milestone inspection 1035 requirements under s. 553.899. A proceeding commenced under this 1036 subsection is in addition to, and not in lieu of, any other 1037 penalty or remedy under this chapter. 1038 (3) Any local authority having jurisdiction to enforce 1039 milestone inspection requirements may seek injunctive relief 1040 from any court of competent jurisdiction in which the 1041 cooperative is located against the association to enforce 1042 compliance with milestone inspection requirements under s. 1043 553.899, upon an affidavit of the local authority having 1044 jurisdiction specifying the manner in which the cooperative does 1045 not conform to the requirements of s. 553.899. 1046 Section 13. Paragraph (p) of subsection (4) of section 1047 719.301, Florida Statutes, is amended to read: 1048 719.301 Transfer of association control. — 1049 (4) When unit owners other than the developer elect a 1050 CS/HB 1395 2023 CODING: Words stricken are deletions; words underlined are additions. hb1395-01-c1 Page 43 of 50 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 1051 association, the developer shall relinquish control of the 1052 association, and the unit owners shall accept control. 1053 Simultaneously, or for the purpose of paragraph (c) not more 1054 than 90 days thereafter, the developer shall deliver to the 1055 association, at the developer' s expense, all property of the 1056 unit owners and of the association held or controlled by the 1057 developer, including, but not limited to, the following items, 1058 if applicable, as to each cooperative operated by the 1059 association: 1060 (p) Notwithstanding when the cer tificate of occupancy was 1061 issued or the height of the building, a milestone inspection 1062 report in compliance with s. 553.899 included in the official 1063 records, under seal of an architect or engineer or under 1064 attestation of a general contractor, building code 1065 administrator, or building code inspector authorized to practice 1066 in this state indicating that such report complies with the 1067 statutory requirements for the inspection , attesting to required 1068 maintenance, condition, useful life, and replacement costs of 1069 the following applicable cooperative property comprising a 1070 turnover inspection report: 1071 1. Roof. 1072 2. Structure, including load -bearing walls and primary 1073 structural members and primary structural systems as those terms 1074 are defined in s. 627.706. 1075 CS/HB 1395 2023 CODING: Words stricken are deletions; words underlined are additions. hb1395-01-c1 Page 44 of 50 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. 1076 4. Elevators. 1077 5. Heating and cooling systems. 1078 6. Plumbing. 1079 7. Electrical systems. 1080 8. Swimming pool or spa and equipment. 1081 9. Seawalls. 1082 10. Pavement and parking areas. 1083 11. Drainage systems. 1084 12. Painting. 1085 13. Irrigation systems. 1086 14. Waterproofing. 1087 Section 14. Paragraph (b) of subsection (1) and paragraph 1088 (a) of subsection (2) of section 719.503, Florida Statutes, are 1089 amended, and paragraph (d) is added to subsection (1) and 1090 paragraph (d) is added to subsection (2) of that section, to 1091 read: 1092 719.503 Disclosure prior to sale. — 1093 (1) DEVELOPER DISCLOSURE. — 1094 (b) Copies of documents to be furnished to prospective 1095 buyer or lessee.—Until such time as the developer has furnished 1096 the documents listed below t o a person who has entered into a 1097 contract to purchase a unit or lease it for more than 5 years, 1098 the contract may be voided by that person, entitling the person 1099 to a refund of any deposit together with interest thereon as 1100 CS/HB 1395 2023 CODING: Words stricken are deletions; words underlined are additions. hb1395-01-c1 Page 45 of 50 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 contra ct may be terminated by 1101 written notice from the proposed buyer or lessee delivered to 1102 the developer within 15 days after the buyer or lessee receives 1103 all of the documents required by this section. The developer may 1104 not close for 15 days after the execution of the agreement and 1105 delivery of the documents to the buyer as evidenced by a receipt 1106 for documents signed by the buyer unless the buyer is informed 1107 in the 15-day voidability period and agrees to close before the 1108 expiration of the 15 days. The developer s hall retain in his or 1109 her records a separate signed agreement as proof of the buyer's 1110 agreement to close before the expiration of the voidability 1111 period. The developer must retain such proof for a period of 5 1112 years after the date of the closing transaction . The documents 1113 to be delivered to the prospective buyer are the prospectus or 1114 disclosure statement with all exhibits, if the development is 1115 subject to s. 719.504, or, if not, then copies of the following 1116 which are applicable: 1117 1. The question and answer sheet described in s. 719.504, 1118 and cooperative documents, or the proposed cooperative documents 1119 if the documents have not been recorded, which shall include the 1120 certificate of a surveyor approximately representing the 1121 locations required by s. 719.104. 1122 2. The documents creating the association. 1123 3. The bylaws. 1124 4. The ground lease or other underlying lease of the 1125 CS/HB 1395 2023 CODING: Words stricken are deletions; words underlined are additions. hb1395-01-c1 Page 46 of 50 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. 1126 5. The management contract, maintenance contract, and 1127 other contracts for management of the association and operation 1128 of the cooperative and facilities used by the unit owners having 1129 a service term in excess of 1 year, and any management contracts 1130 that are renewable. 1131 6. The estimated operating budget for the cooperative and 1132 a schedule of expenses for each type of unit, including fees 1133 assessed to a shareholder who has exclusive use of limited 1134 common areas, where such costs are shared only by those entitled 1135 to use such limited common areas. 1136 7. The lease of recreational and other facilities that 1137 will be used only by unit owners of the subject cooperative. 1138 8. The lease of recreational and other common areas that 1139 will be used by unit owners in common with unit owners of other 1140 cooperatives. 1141 9. The form of unit lease if the offer is of a leasehold. 1142 10. Any declaration of servitude of properties serving the 1143 cooperative but not owned by unit owners or leased to them or 1144 the association. 1145 11. If the development is to be built in phases or if the 1146 association is to manage more than one cooperative, a 1147 description of the plan of phase dev elopment or the arrangements 1148 for the association to manage two or more cooperatives. 1149 12. If the cooperative is a conversion of existing 1150 CS/HB 1395 2023 CODING: Words stricken are deletions; words underlined are additions. hb1395-01-c1 Page 47 of 50 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. 1151 719.616. 1152 13. The form of agreement for sale or lease of u nits. 1153 14. A copy of the floor plan of the unit and the plot plan 1154 showing the location of the residential buildings and the 1155 recreation and other common areas. 1156 15. A copy of all covenants and restrictions that will 1157 affect the use of the property and are not contained in the 1158 foregoing. 1159 16. If the developer is required by state or local 1160 authorities to obtain acceptance or approval of any dock or 1161 marina facilities intended to serve the cooperative, a copy of 1162 any such acceptance or approval acquired by the time of filing 1163 with the division pursuant to s. 719.502(1) or a statement that 1164 such acceptance or approval has not been acquired or received. 1165 17. Evidence demonstrating that the developer has an 1166 ownership, leasehold, or contractual interest in the land u pon 1167 which the cooperative is to be developed. 1168 18. A copy of the inspector -prepared summary of the 1169 milestone inspection report as described in ss. 553.899 and 1170 719.106(1)(l) ss. 553.899 and 719.301(4)(p) , if applicable. 1171 19. A copy of the association's mo st recent structural 1172 integrity reserve study or a statement that the association has 1173 not completed a structural integrity reserve study. 1174 (d) Milestone inspection or structural integrity reserve 1175 CS/HB 1395 2023 CODING: Words stricken are deletions; words underlined are additions. hb1395-01-c1 Page 48 of 50 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.— 1176 1. If the association is required to have a milest one 1177 inspection as described in ss. 553.899 and 719.106(1)(l) or a 1178 structural integrity reserve study as described in s. 1179 719.106(1)(k), and the association has not completed the 1180 milestone inspection or structural integrity reserve study, each 1181 contract entered into on or after January 1, 2025, for the sale 1182 of a residential unit must contain in conspicuous type a 1183 statement indicating that the association is required to have a 1184 milestone inspection or a structural integrity reserve study and 1185 the association has failed to complete such inspection or study, 1186 as applicable. 1187 2. If the association is required to have a milestone 1188 inspection as described in ss. 553.899 and 719.106(1)(l) or a 1189 structural integrity reserve study as described in s. 1190 719.106(1)(k), and the a ssociation has completed such inspection 1191 or study, each contract entered into on or after January 1, 1192 2025, for the sale of a residential unit must contain a copy of 1193 the most recent milestone inspection report or structural 1194 integrity reserve study, as appli cable. 1195 3. If the association is not required to have a milestone 1196 inspection as described in ss. 553.899 and 719.106(1)(l) or a 1197 structural integrity reserve study as described in s. 1198 719.106(1)(k), each contract entered into on or after January 1, 1199 2025, for the sale of a residential unit must contain in 1200 CS/HB 1395 2023 CODING: Words stricken are deletions; words underlined are additions. hb1395-01-c1 Page 49 of 50 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 1201 not required to have a milestone inspection or a structural 1202 integrity reserve study, as applicable. 1203 (2) NONDEVELOPER DISCLOSURE. — 1204 (a) Each unit owner who is not a developer as defined by 1205 this chapter must comply with this subsection before the sale of 1206 his or her interest in the association. Each prospective 1207 purchaser who has entered into a contract for the purchase of an 1208 interest in a coopera tive is entitled, at the seller's expense, 1209 to a current copy of all of the following: 1210 1. The articles of incorporation of the association. 1211 2. The bylaws and rules of the association. 1212 3. A copy of the question and answer sheet as provided in 1213 s. 719.504. 1214 4. A copy of the inspector -prepared summary of the 1215 milestone inspection report as described in ss. 553.899 and 1216 719.106(1)(l) ss. 553.899 and 719.301(4)(p) , if applicable. 1217 5. A copy of the association's most recent structural 1218 integrity reserve study or a statement that the association has 1219 not completed a structural integrity reserve study. 1220 (d)1. If the association is required to have a milestone 1221 inspection as described in ss. 553.899 and 719.106(1)(l) or a 1222 structural integrity reserve study as descr ibed in s. 1223 719.106(1)(k), and the association has not completed the 1224 milestone inspection or structural integrity reserve study, each 1225 CS/HB 1395 2023 CODING: Words stricken are deletions; words underlined are additions. hb1395-01-c1 Page 50 of 50 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 1226 of a residential unit must contain in conspicuous type a 1227 statement indicating that the association is required to have a 1228 milestone inspection or a structural integrity reserve study and 1229 the association has failed to complete such inspection or study, 1230 as applicable. 1231 2. If the association is required to have a mil estone 1232 inspection as described in ss. 553.899 and 719.106(1)(l) or a 1233 structural integrity reserve study as described in s. 1234 719.106(1)(k), and the association has completed such inspection 1235 or study, each contract entered into on or after January 1, 1236 2025, for the sale of a residential unit must contain a copy of 1237 the most recent milestone inspection report or structural 1238 integrity reserve study, as applicable. 1239 3. If the association is not required to have a milestone 1240 inspection as described in ss. 553.899 and 719.106(1)(l) or a 1241 structural integrity reserve study as described in s. 1242 719.106(1)(k), each contract entered into on or after January 1, 1243 2025, for the sale of a residential unit must contain in 1244 conspicuous type a statement indicating that the association is 1245 not required to have a milestone inspection or a structural 1246 integrity reserve study, as applicable. 1247 Section 15. Except as otherwise expressly provided in this 1248 act, this act shall take effect July 1, 2023. 1249