FL
Florida House Bill H1395

Florida 2023 Regular Session

Florida House Bill H1395 Compare Versions

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1010 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
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1414 A bill to be entitled 1
1515 An act relating to the management and safety of 2
1616 condominium and cooperative buildings; amending s. 3
17-468.4334, F.S.; revising the circumstances under which 4
18-community association managers or management firms 5
19-must comply with a specified provision; amending s. 6
17+468.4334, F.S.; revising professional practice 4
18+standards for community association managers and 5
19+community association management firms; amending s. 6
2020 553.899, F.S.; revising legislative findings; revising 7
21-the definition of the terms "milestone inspection" and 8
22-"substantial structural deterioration"; revising which 9
23-buildings must have milestone inspections performed; 10
24-revising the deadline for milestone i nspections of 11
25-certain buildings; authorizing local enforcement 12
26-agencies to extend deadlines for milestone inspections 13
27-under certain circumstances; authorizing local 14
28-enforcement agencies to accept certain inspection 15
29-reports in lieu of a milestone inspection report under 16
30-certain circumstances; specifying when certain 17
31-buildings must have a subsequent milestone inspection; 18
32-revising who has responsibility for arranging and 19
33-completing milestone inspections; specifying that 20
34-certain expenses may be recovered from c ertain owners; 21
35-revising requirements relating to written notice of 22
36-required inspections; requiring licensed architects or 23
37-engineers who perform milestone inspections to submit 24
38-a specified progress report to a local enforcement 25
21+definitions; requiring condominium associations and 8
22+cooperative associations to have milestone inspections 9
23+performed on certain buildings after they reach 25 10
24+years of age; removing provisions relating to certai n 11
25+buildings located near coastlines; revising the date 12
26+on which a building's certificate of occupancy was 13
27+issued to trigger the requirement of a milestone 14
28+inspection; authorizing an extension of the deadline 15
29+for the completion of a milestone inspection und er 16
30+certain circumstances; requiring certain notice be 17
31+given to unit owners within a specified time period; 18
32+authorizing additional persons to conduct phase one 19
33+inspections; specifying the only persons authorized to 20
34+conduct phase two inspections; requiring c ertain 21
35+associations to enter into contracts with certain 22
36+persons within a specified timeframe; requiring that a 23
37+phase two inspection begin within a specified 24
38+timeframe; requiring certain inspection reports to 25
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4747 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
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51-agency within a specified tim eframe under certain 26
52-circumstances; specifying that associations must 27
53-distribute copies of certain summaries of an 28
54-inspection report within a specified timeframe and in 29
55-a specified manner; authorizing municipal governing 30
56-bodies to adopt certain ordinances relating to 31
57-association repairs; requiring the Florida Building 32
58-Commission to adopt rules to establish a certain 33
59-program by a specified date; providing requirements 34
60-for such program; conforming provisions to changes 35
61-made by the act; amending s. 627.351, F. S.; revising 36
62-requirements relating to the purchase of flood 37
63-insurance as a condition for maintaining certain 38
64-policies issued by the Citizens Property Insurance 39
65-Corporation; amending s. 718.103, F.S.; defining the 40
66-term "alternative funding method"; revising the 41
67-definition of the term "structural integrity reserve 42
68-study"; amending s. 718.111, F.S.; revising rights 43
69-relating to the official records of a condominium 44
70-association;; amending s. 718.112, F.S.; revising 45
71-requirements relating to budget meetings; revis ing 46
72-condominium association reserve account requirements; 47
73-revising requirements relating to waiving reserve 48
74-requirements or providing less reserves than required 49
75-by law; revising requirements relating to using 50
51+bear certain attestations; authorizing the gove rning 26
52+body of a municipality to adopt certain ordinances; 27
53+removing a specified review by the Florida Building 28
54+Commission; removing the requirement that the 29
55+commission submit a certain report to the Governor and 30
56+Legislature by a specified date; requiring th e 31
57+commission to create standardized milestone inspection 32
58+forms by a specified date; requiring local enforcement 33
59+agencies to use such standardized forms to submit 34
60+certain reports; conforming provisions to changes made 35
61+by the act; amending s. 627.351, F.S.; revising 36
62+requirements for certain condominium unit owners 37
63+relating to the purchase of flood insurance as a 38
64+condition for maintaining certain policies issued by 39
65+Citizens Property Insurance Corporation; amending ss. 40
66+718.103 and 719.103, F.S.; revising the de finition of 41
67+"structural integrity reserve study"; amending ss. 42
68+718.112 and 719.106, F.S.; requiring certain items 43
69+that will require maintenance, repair, or replacement 44
70+within a certain timeframe to be included in reserve 45
71+accounts; removing a date by which certain structural 46
72+integrity reserve studies must be completed; providing 47
73+an exception to the requirement of a structural 48
74+integrity reserve study; requiring certain 49
75+associations' budgets to include reserves, in an 50
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8484 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
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88-reserve funds or interest accrued on reserve f unds for 51
89-certain purposes; revising requirements for structural 52
90-integrity reserve studies and mandatory milestone 53
91-inspections; providing applicability; conforming 54
92-provisions to changes made by the act; amending s. 55
93-718.1255, F.S.; revising the definition of the term 56
94-"dispute"; specifying that certain disputes are not 57
95-subject to nonbinding arbitration and must be 58
96-submitted to presuit mediation; amending s. 718.113, 59
97-F.S.; revising requirements relating to the 60
98-maintenance, repair, and replacement of common 61
99-elements and condominium property; amending s. 62
100-718.301, F.S.; revising items that developers are 63
101-required to deliver to an association upon 64
102-relinquishing control of the association; amending s. 65
103-718.503, F.S.; revising the documents developers are 66
104-required to provide to prospective buyers or lessees; 67
105-revising the documents that prospective purchasers are 68
106-entitled to when purchasing a condominium unit from a 69
107-unit owner; requiring specified disclosures relating 70
108-to milestone inspections, turnover inspection reports , 71
109-and structural integrity reserve studies for certain 72
110-contracts entered into after a specified date; 73
111-amending s. 718.504, F.S.; revising requirements for 74
112-prospectuses and offering circulars; amending s. 75
88+amount determined by a specified study, fo r certain 51
89+items; requiring the structural integrity reserve 52
90+study to include exterior doors; authorizing certain 53
91+inspections to be used in place of other inspections 54
92+under certain circumstances; requiring that the 55
93+inspector-prepared summary of the inspecti on report be 56
94+provided to certain persons within a specified time 57
95+period; conforming provisions to changes made by the 58
96+act; amending s. 718.1255, F.S.; revising the 59
97+definition of a "dispute" for purposes of alternative 60
98+dispute resolution; requiring certain disputes to be 61
99+submitted to presuit mediation; creating ss. 718.13 62
100+and 719.132, F.S.; authorizing unit owners and certain 63
101+entities to file an action in court for certain 64
102+injunctive relief; amending ss. 718.301 and 719.301, 65
103+F.S.; conforming provisions to ch anges made by the 66
104+act; amending ss. 718.503 and 719.503, F.S.; requiring 67
105+that certain provisions be included in certain 68
106+contracts entered into after specified dates under 69
107+certain circumstances; conforming provisions to 70
108+changes made by the act; providing ef fective dates. 71
109+ 72
110+Be It Enacted by the Legislature of the State of Florida: 73
111+ 74
112+ Section 1. Paragraph (b) of subsection (1) of section 75
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121121 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
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125-719.103, F.S.; revising the definition of the term 76
126-"structural integrity reserve study"; amending s. 77
127-719.104, F.S.; revising rights relating to the 78
128-official records of a cooperative association; 79
129-providing maintenance requirements for cooperative 80
130-associations; providing requirements relating to the 81
131-maintenance, repair, and replacement of common 82
132-elements and cooperative property; amending s. 83
133-719.106, F.S.; revising requirements relating to 84
134-budget procedures; revising cooperative association 85
135-reserve account requirements; revising requirements 86
136-relating to waiving reserve requirements or providing 87
137-less reserves than required by law; revising a 88
138-prohibition on using reserve funds or interest accrued 89
139-on reserve funds for certain purposes; revising 90
140-requirements for structural integrity reserve studies 91
141-and mandatory milestone inspections; providing 92
142-applicability; conforming provisions to changes made 93
143-by the act; amending s. 719.301, F.S.; revising items 94
144-that developers are required to deliver to an 95
145-association upon relinquishing control of the 96
146-association; amending s. 7 19.503, F.S.; revising the 97
147-types of documents developers are required to provide 98
148-to prospective buyers and lessees; revising the 99
149-documents that a prospective purchaser is entitled to 100
125+468.4334, Florida Statutes, is amended to read: 76
126+ 468.4334 Professional practice standards; liability. — 77
127+ (1) 78
128+ (b) If a community association manager or a community 79
129+association management firm has a contract with a community 80
130+association that has a building on the association's property 81
131+that is subject to s. 553.899, the community association manager 82
132+or the community associ ation management firm must comply with 83
133+that section as directed by the board. 84
134+ Section 2. Subsection (13) of section 553.899, Florida 85
135+Statutes, is renumbered as subsection (12), subsections (1) 86
136+through (8) and (11) and present subsection (12) are amende d, 87
137+and a new subsection (13) is added to that section, to read: 88
138+ 553.899 Mandatory structural inspections for condominium 89
139+and cooperative buildings. — 90
140+ (1) The Legislature finds that maintaining the structural 91
141+integrity of a building throughout the its service life of the 92
142+building is of paramount importance in order to ensure that 93
143+buildings are structurally sound so as to not pose a threat to 94
144+the public health, safety, or welfare. As such, the Legislature 95
145+finds that the imposition of a statewide structural inspection 96
146+program for aging condominium and cooperative buildings in this 97
147+state is necessary to ensure that such buildings are safe for 98
148+continued use. 99
149+ (2) As used in this section, the terms: 100
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158158 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
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162-when purchasing an interest in a cooperative from a 101
163-unit owner; requiring specified disclosures relating 102
164-to milestone inspections, turnover inspection reports, 103
165-and structural integrity reserve studies for certain 104
166-contracts entered into after a specified date; 105
167-amending s. 719.504, F.S.; revising requirements for 106
168-prospectuses and offering circulars; amending ss. 107
169-558.002, 718.116, and 720.3085, F.S.; conforming 108
170-cross-references; reenacting s. 719.1255, F.S., 109
171-relating to alternative resolution of disputes, to 110
172-incorporate amendments made to s. 718.1255, F.S., in a 111
173-reference thereto; reenacting ss. 718.501(1)(f) and 112
174-719.501(1)(f), F.S., relating to the rulemaking 113
175-authority of the Division of Florida Condominiums, 114
176-Timeshares, and Mobile Homes of the Department of 115
177-Business and Professional Regulation; providing 116
178-appropriations and positio ns; providing effective 117
179-dates. 118
180- 119
181-Be It Enacted by the Legislature of the State of Florida: 120
182- 121
183- Section 1. Paragraph (b) of subsection (1) of section 122
184-468.4334, Florida Statutes, is amended to read: 123
185- 468.4334 Professional practice standards; liability. — 124
186- (1) 125
162+ (a) "Milestone inspection" means a structural inspection 101
163+of a building, including an inspection of load -bearing elements 102
164+walls and the primary structural members and primary structural 103
165+systems as those terms are defined in s. 627.706 . Phase one of 104
166+the milestone inspection must be performed , by a general 105
167+contractor licensed under chapter 489 with at least 5 years' 106
168+experience building or constructing threshold buildings, a 107
169+building code administrator or building code inspector licensed 108
170+under part XII of chapter 468 with at least 5 years' experience 109
171+inspecting threshold buildings, or by a licensed architect or 110
172+engineer authorized to practice in this state . Phase two of the 111
173+milestone inspection must be performed by a licensed architect 112
174+or engineer authorized to practice in this state. Such 113
175+structural inspection must be completed with the purpose for the 114
176+purposes of attesting to the life safety and adequacy of the 115
177+structural components of the building and, to the extent 116
178+reasonably possible, determining the general structural 117
179+condition of the building as it affects the saf ety of such 118
180+building, including a determination of any necessary 119
181+maintenance, repair, or replacement of any structural component 120
182+of the building. The purpose of such inspection is not to 121
183+determine if the condition of an existing building is in 122
184+compliance with the Florida Building Code or the firesafety 123
185+code. 124
186+ (b) "Substantial structural deterioration" means 125
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195195 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
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199- (b) If a community association manager or a community 126
200-association management firm has a contract with a community 127
201-association that has a building on the association's property 128
202-that is subject to s. 553.899, the community association manager 129
203-or the community association management firm must comply with 130
204-that section as directed by the board. 131
205- Section 2. Subsections (1) through (6), paragraph (b) of 132
206-subsection (7), and subsections (8), (9), (11), and (12) of 133
207-section 553.899, Florida Statutes, are am ended to read: 134
208- 553.899 Mandatory structural inspections for condominium 135
209-and cooperative buildings. — 136
210- (1) The Legislature finds that maintaining the structural 137
211-integrity of a building throughout the its service life of the 138
212-building is of paramount import ance in order to ensure that 139
213-buildings are structurally sound so as to not pose a threat to 140
214-the public health, safety, or welfare. As such, the Legislature 141
215-finds that the imposition of a statewide structural inspection 142
216-program for aging condominium and coo perative buildings in this 143
217-state is necessary to ensure that such buildings are safe for 144
218-continued use. 145
219- (2) As used in this section, the terms: 146
220- (a) "Milestone inspection" means a structural inspection 147
221-of a building, including an inspection of load -bearing elements 148
222-walls and the primary structural members and primary structural 149
223-systems as those terms are defined in s. 627.706, by an a 150
199+substantial structural distress or a substantial structural 126
200+weakness that negatively affects a building's general structural 127
201+condition and integrity. T he term does not include surface 128
202+imperfections such as cracks, distortion, sagging, deflections, 129
203+misalignment, signs of leakage, or peeling of finishes unless 130
204+the licensed general contractor, building code administrator, 131
205+building code inspector, engineer, or architect performing the 132
206+phase one or phase two inspection determines that such surface 133
207+imperfections are a sign of substantial structural 134
208+deterioration. 135
209+ (3) A condominium association under chapter 718 and a 136
210+cooperative association under chapter 719 m ust have a milestone 137
211+inspection performed for each building that is three stories or 138
212+more in height by December 31 of the year in which the building 139
213+reaches 25 30 years of age, based on the date the certificate of 140
214+occupancy for the building was issued, and every 10 years 141
215+thereafter. If the building is located within 3 miles of a 142
216+coastline as defined in s. 376.031, the condominium association 143
217+or cooperative association must have a milestone inspection 144
218+performed by December 31 of the year in which the buildin g 145
219+reaches 25 years of age, based on the date the certificate of 146
220+occupancy for the building was issued, and every 10 years 147
221+thereafter. The condominium association or cooperative 148
222+association must arrange for the milestone inspection to be 149
223+performed and is responsible for ensuring compliance with the 150
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232232 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
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236-licensed architect licensed under chapter 481 or an engineer 151
237-licensed under chapter 471 and authorized to practice in thi s 152
238-state for the purposes of attesting to the life safety and 153
239-adequacy of the structural components of the building and, to 154
240-the extent reasonably possible, determining the general 155
241-structural condition of the building as it affects the safety of 156
242-such building, including a determination of any necessary 157
243-maintenance, repair, or replacement of any structural component 158
244-of the building. The purpose of such inspection is not to 159
245-determine if the condition of an existing building is in 160
246-compliance with the Florida Bui lding Code or the firesafety 161
247-code. Milestone inspection services may be provided by a team of 162
248-professionals with a licensed architect or engineer acting as a 163
249-registered design professional who is responsible for all work 164
250-and reports signed and sealed by th e appropriate qualified team 165
251-member. 166
252- (b) "Substantial structural deterioration" means 167
253-substantial structural distress or substantial structural 168
254-weakness that negatively affects a building's general structural 169
255-condition and integrity. The term does not in clude surface 170
256-imperfections such as cracks, distortion, sagging, deflections, 171
257-misalignment, signs of leakage, or peeling of finishes unless 172
258-the licensed engineer or architect performing the phase one or 173
259-phase two inspection determines that such surface imp erfections 174
260-are a sign of substantial structural deterioration. 175
236+requirements of this section. The condominium association or 151
237+cooperative association is responsible for all costs associated 152
238+with the inspection. This subsection does not apply to 153
239+associations that only include a single-family, two-family, or 154
240+three-family dwellings dwelling with three or fewer habitable 155
241+stories above ground. 156
242+ (4) If a milestone inspection is required under this 157
243+section and the building's certificate of occupancy was issued 158
244+on or before December 31, 1994 July 1, 1992, the building's 159
245+initial milestone inspection must be performed before December 160
246+31, 2024. If a milestone inspection is required under this 161
247+section and the building's certificate of occupancy was issued 162
248+during the period of January 1, 199 5, through December 31, 2000, 163
249+the building's initial milestone inspection must be performed 164
250+before December 31, 2026. The local enforcement agency may 165
251+extend the deadline for a building's initial milestone 166
252+inspection upon a showing of good cause by the con dominium or 167
253+cooperative association that the association has entered into a 168
254+contract for the performance of the milestone inspection but 169
255+that the inspection cannot reasonably be completed before the 170
256+deadline. If the date of issuance for the certificate of 171
257+occupancy is not available, the date of issuance of the 172
258+building's certificate of occupancy shall be the date of 173
259+occupancy evidenced in any record of the local building 174
260+official. 175
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269269 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
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273- (3)(a) A building with one residential unit or more which 176
274-is three stories or more in height as determined by the Florida 177
275-Building Code and subject, in whole or in part, to the 178
276-condominium or cooperative form of ownership as a residential or 179
277-mixed-use a condominium association under chapter 718 or and a 180
278-residential cooperative association under chapter 719 must have 181
279-a milestone inspection performed for each building that is three 182
280-stories or more in height by December 31 of the year in which 183
281-the building reaches 25 30 years of age, based on the date the 184
282-certificate of occupancy for the building was issued, and every 185
283-10 years thereafter. If a building reaches 25 years of age 186
284-before July 1, 2022, the building's initial milestone inspection 187
285-must be performed before December 31, 2024. If a building 188
286-reaches 25 years of age on or after July 1, 2022, but before 189
287-December 31, 2024, the building's initial milestone inspection 190
288-must be performed before Decem ber 31, 2025. If the date of 191
289-issuance of a building's certificate of occupancy is not 192
290-available, the date of issuance shall be the date of occupancy 193
291-evidenced in any record of the local building official. 194
292- (b) The local enforcement agency may extend the d eadline 195
293-for a building's initial milestone inspection upon a showing of 196
294-good cause by the association or owner of the building that the 197
295-association or owner has entered into a contract with a licensed 198
296-architect or engineer to perform the milestone inspecti on but 199
297-the inspection cannot reasonably be completed before the 200
273+ (5) Upon determining that a building must have a milestone 176
274+inspection, the local enforcement agency must provide written 177
275+notice of such required inspection to the condominium 178
276+association or cooperative association by certified mail, return 179
277+receipt requested. The condominium or cooperative association 180
278+must notify the unit owners o f the required milestone inspection 181
279+within 14 days after receipt of the written notice from the 182
280+local enforcement agency and provide the date that the milestone 183
281+inspection must be completed. 184
282+ (6) Within 180 days after receiving the written notice 185
283+under subsection (5), the condominium association or cooperative 186
284+association must complete phase one of the milestone inspection. 187
285+For purposes of this section, completion of phase one of the 188
286+milestone inspection means the licensed general contractor, 189
287+building code administrator, building code inspector, engineer, 190
288+or architect who performed the phase one inspection submitted 191
289+the inspection report by e -mail, United States Postal Service, 192
290+or commercial delivery service to the local enforcement agency. 193
291+ (7) A milestone inspection consists of two phases: 194
292+ (a) For phase one of the milestone inspection, a general 195
293+contractor licensed under chapter 489 with at least 5 years' 196
294+experience building or constructing threshold buildings, a 197
295+building code administrator or building code inspector licensed 198
296+under part XII of chapter 468 with at least 5 years' experience 199
297+inspecting threshold buildings, or a licensed architect or 200
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306306 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
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310-deadline or that other circumstances exist which justify an 201
311-extension. 202
312- (c) The local enforcement agency may accept an inspection 203
313-report prepared by a licensed engineer or architect for a 204
314-structural integrity and condition inspection of a building 205
315-performed before July 1, 2022, if the inspection and inspection 206
316-report substantially comply with the requirements of this 207
317-section. Notwithstanding when such inspection was completed, the 208
318-condominium or cooperative association must comply with the unit 209
319-owner notice requirements in subsection (9). The inspection for 210
320-which an inspection report is accepted by the local enforcement 211
321-agency under this paragraph is deemed a milestone inspection for 212
322-the applicable requirements in chapters 718 and 719. If a 213
323-previous inspection and inspection report is accepted by the 214
324-local enforcement agency under this paragraph, the deadline for 215
325-the building's subsequent 10 -year milestone inspection is based 216
326-on the date of the previously accepted inspection report. 217
327- (4) The milestone inspection must be arranged and 218
328-completed by a condominium or cooperative association. If the 219
329-building is located within 3 miles of a coastline as defined in 220
330-s. 376.031, the condominium association or cooperative 221
331-association must have a milestone inspection performed by 222
332-December 31 of the year in which the building reaches 25 years 223
333-of age, based on the date the certificate of occupancy for the 224
334-building was issued, and every 10 years thereafter. The 225
310+engineer authorized to practice in this state shall perform a 201
311+visual examination of habitable and nonhabitable areas of a 202
312+building, including the major structural components of a 203
313+building, and provide a qualitative assessment of the structural 204
314+conditions of the building. If the general contractor, bu ilding 205
315+code administrator, building code inspector, architect, or 206
316+engineer finds no signs of substantial structural deterioration 207
317+to any building components under visual examination, phase two 208
318+of the inspection, as provided in paragraph (b), is not 209
319+required. A general contractor, a building code administrator, a 210
320+building code inspector, an architect, or an engineer who 211
321+completes a phase one milestone inspection shall prepare and 212
322+submit an inspection report pursuant to subsection (8). 213
323+ (b) A phase two of th e milestone inspection must be 214
324+performed if any substantial structural deterioration is 215
325+identified during phase one. Only a licensed architect or 216
326+engineer authorized to practice in this state may perform a 217
327+phase two milestone inspection. If a phase two ins pection is 218
328+required, the association must contract, within 90 days after 219
329+receipt of the phase one inspection report, with a licensed 220
330+architect or engineer to perform the phase two inspection. The 221
331+licensed architect or engineer contracted with to perform th e 222
332+inspection must begin the phase two inspection within 90 days 223
333+after entering into a contract with the association. A phase two 224
334+inspection may involve destructive or nondestructive testing at 225
335335
336-CS/CS/HB 1395 2023
336+CS/HB 1395 2023
337337
338338
339339
340340 CODING: Words stricken are deletions; words underlined are additions.
341-hb1395-02-c2
342-Page 10 of 90
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343343 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
344344
345345
346346
347-condominium association or cooperative association and the owner 226
348-of any portion of the building which is not subject to the 227
349-condominium or cooperative form of ownership are each must 228
350-arrange for the milestone inspection to be performed and is 229
351-responsible for ensuring compliance with the requirements of 230
352-this section. The condominium association or cooperative 231
353-association is responsible for all costs associated with the 232
354-milestone inspection. However, expenses may be recovered for 233
355-such inspection from unit own ers or other owners in accordance 234
356-with the general expense allocations of the documents governing 235
357-the property. This section subsection does not apply to a 236
358-single-family, two-family, or three-family dwelling with three 237
359-or fewer habitable stories above grou nd. 238
360- (4) If a milestone inspection is required under this 239
361-section and the building's certificate of occupancy was issued 240
362-on or before July 1, 1992, the building's initial milestone 241
363-inspection must be performed before December 31, 2024. If the 242
364-date of issuance for the certificate of occupancy is not 243
365-available, the date of issuance of the building's certificate of 244
366-occupancy shall be the date of occupancy evidenced in any record 245
367-of the local building official. 246
368- (5) Upon determining that a building must have a milestone 247
369-inspection, the local enforcement agency must provide written 248
370-notice of such required inspection to the condominium 249
371-association or cooperative association and the owner of any 250
347+the inspector's direction. The inspection may be as extensive o r 226
348+as limited as necessary to fully assess areas of structural 227
349+distress in order to confirm that the building is structurally 228
350+sound and safe for its intended use and to recommend a program 229
351+for fully assessing and repairing distressed and damaged 230
352+portions of the building. When determining testing locations, 231
353+the inspector must give preference to locations that are the 232
354+least disruptive and most easily repairable while still being 233
355+representative of the structure. An inspector who completes a 234
356+phase two milestone inspection shall prepare and submit an 235
357+inspection report pursuant to subsection (8). 236
358+ (8) Upon completion of a phase one or phase two milestone 237
359+inspection, the general contractor, building code administrator, 238
360+building code inspector, architect, or engineer who performed 239
361+the inspection must submit a copy, or a sealed copy, if 240
362+applicable, of the inspection report with a separate summary of, 241
363+at minimum, the material findings and recommendations in the 242
364+inspection report to the condominium association or cooper ative 243
365+association, and to the building official of the local 244
366+government which has jurisdiction. The inspection report must, 245
367+at a minimum, meet all of the following criteria: 246
368+ (a)1. Bear an attestation and signature, or electronic 247
369+signature, of the license d general contractor, building code 248
370+administrator, or building code inspector who performed the 249
371+inspection; or 250
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374374
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376376
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378-hb1395-02-c2
379-Page 11 of 90
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380380 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
381381
382382
383383
384-portion of the building which is not subject to the condominium 251
385-or cooperative form of ownership, as applicable, by certified 252
386-mail, return receipt requested. The condominium or cooperative 253
387-association must notify the unit owners of the required 254
388-milestone inspection and the date that the milestone inspection 255
389-must be completed within 14 days after receipt of the written 256
390-notice from the local enforcement agency. Such notice may be 257
391-provided by electronic submission to unit owners who consent to 258
392-receive notice by electronic submission or by posting the notice 259
393-on the association's website. 260
394- (6) Phase one of the milestone inspection must be 261
395-completed within 180 days after the condominium association, 262
396-cooperative association, or owner of the building receives 263
397-receiving the written notice under subsection (5) , the 264
398-condominium association or cooperative association must complete 265
399-phase one of the milestone inspection . For purposes of this 266
400-section, completion of phase one of the milestone inspection 267
401-means the licensed engineer or architect who performed the phase 268
402-one inspection submitted the inspection report by e -mail, United 269
403-States Postal Service, or commercial delivery service to the 270
404-local enforcement agency. 271
405- (7) A milestone inspection consists of two phases: 272
406- (b) A phase two of the milestone inspection must be 273
407-performed if any substantial structural deterioration is 274
408-identified during phase one. A phase two inspection may involve 275
384+ 2. Bear the seal and signature, or the electronic 251
385+signature, of the licensed engineer or architect who performed 252
386+the inspection, 253
387+ 254
388+indicating that such report complies with the statutory 255
389+requirements for the inspection . 256
390+ (b) Indicate the manner and type of inspection forming the 257
391+basis for the inspection report. 258
392+ (c) Identify any substantial structural deterioration, 259
393+within a reasonable profess ional probability based on the scope 260
394+of the inspection, describe the extent of such deterioration, 261
395+and identify any recommended repairs for such deterioration. 262
396+ (d) State whether unsafe or dangerous conditions, as those 263
397+terms are defined in the Florida Bu ilding Code, were observed. 264
398+ (e) Recommend any remedial or preventive repair for any 265
399+items that are damaged but are not substantial structural 266
400+deterioration. 267
401+ (f) Identify and describe any items requiring further 268
402+inspection. 269
403+ (11) A board of county comm issioners or the governing body 270
404+of a municipality may adopt an ordinance requiring that a 271
405+condominium or cooperative association schedule or commence 272
406+repairs for substantial structural deterioration within a 273
407+specified timeframe after the local enforcement agency receives 274
408+a phase two inspection report; however, such repairs must be 275
409409
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417417 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
418418
419419
420420
421-destructive or nondestructive testing at the inspector's 276
422-direction. The inspection may be as extensive or as limited as 277
423-necessary to fully assess are as of structural distress in order 278
424-to confirm that the building is structurally sound and safe for 279
425-its intended use and to recommend a program for fully assessing 280
426-and repairing distressed and damaged portions of the building. 281
427-When determining testing locat ions, the inspector must give 282
428-preference to locations that are the least disruptive and most 283
429-easily repairable while still being representative of the 284
430-structure. If a phase two inspection is required, the licensed 285
431-architect or engineer performing the phase two inspection must, 286
432-within 180 days after submitting the phase one inspection 287
433-report, submit to the local enforcement agency a phase two 288
434-progress report that includes a timeline for completion of the 289
435-phase two inspection. An inspector who completes a pha se two 290
436-milestone inspection shall prepare and submit an inspection 291
437-report pursuant to subsection (8). 292
438- (8) Upon completion of a phase one or phase two milestone 293
439-inspection, the licensed architect or engineer who performed the 294
440-inspection must submit a seal ed copy of the inspection report 295
441-with a separate summary of, at minimum, the material findings 296
442-and recommendations in the inspection report to the condominium 297
443-association or cooperative association , the owner of any portion 298
444-of the building which is not sub ject to the condominium or 299
445-cooperative form of ownership , and to the building official of 300
421+commenced within 365 days after receiving such report. If an 276
422+association fails to submit proof to the local enforcement 277
423+agency that repairs have been scheduled or have commenced f or 278
424+substantial structural deterioration identified in a phase two 279
425+inspection report within the required timeframe, the local 280
426+enforcement agency must review and determine if the building is 281
427+unsafe for human occupancy. 282
428+ (12) The Florida Building Commission shall review the 283
429+milestone inspection requirements under this section and make 284
430+recommendations, if any, to the Legislature to ensure 285
431+inspections are sufficient to determine the structural integrity 286
432+of a building. The commission must provide a written repor t of 287
433+any recommendations to the Governor, the President of the 288
434+Senate, and the Speaker of the House of Representatives by 289
435+December 31, 2022. 290
436+ (13) By October 1, 2023, the Florida Building Commission 291
437+shall create a standardized milestone inspection report form for 292
438+the submission of such reports to local enforcement agencies by 293
439+general contractors, building code administrators, building code 294
440+inspectors, engineers, and architects. Local enforcement 295
441+agencies must require that the standardized form be used to 296
442+submit such reports. 297
443+ Section 3. Paragraph (aa) of subsection (6) of section 298
444+627.351, Florida Statutes, is amended to read: 299
445+ 627.351 Insurance risk apportionment plans. — 300
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447+CS/HB 1395 2023
448448
449449
450450
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454454 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
455455
456456
457457
458-the local government which has jurisdiction. The inspection 301
459-report must, at a minimum, meet all of the following criteria: 302
460- (a) Bear the seal and signature, or the e lectronic 303
461-signature, of the licensed engineer or architect who performed 304
462-the inspection. 305
463- (b) Indicate the manner and type of inspection forming the 306
464-basis for the inspection report. 307
465- (c) Identify any substantial structural deterioration, 308
466-within a reasonable professional probability based on the scope 309
467-of the inspection, describe the extent of such deterioration, 310
468-and identify any recommended repairs for such deterioration. 311
469- (d) State whether unsafe or dangerous conditions, as those 312
470-terms are defined in the Florida Building Code, were observed. 313
471- (e) Recommend any remedial or preventive repair for any 314
472-items that are damaged but are not substantial structural 315
473-deterioration. 316
474- (f) Identify and describe any items requiring further 317
475-inspection. 318
476- (9) Within 45 days after receiving the applicable 319
477-inspection report, the condominium or cooperative association 320
478-must distribute a copy of the inspector -prepared summary of the 321
479-inspection report to each condominium unit owner or cooperative 322
480-unit owner, regardless of the fi ndings or recommendations in the 323
481-report, by United States mail or personal delivery at the 324
482-mailing address, property address, or any other address of the 325
458+ (6) CITIZENS PROPERTY INSURANCE CORPORATION. — 301
459+ (aa) Except as otherwise provided in this paragraph, the 302
460+corporation shall require the securing and maintaining of flood 303
461+insurance as a condition of coverage of a personal lines 304
462+residential risk. The insured or applicant must execute a form 305
463+approved by the office affirming that flood insu rance is not 306
464+provided by the corporation and that if flood insurance is not 307
465+secured by the applicant or insured from an insurer other than 308
466+the corporation and in addition to coverage by the corporation, 309
467+the risk will not be eligible for coverage by the cor poration. 310
468+The corporation may deny coverage of a personal lines 311
469+residential risk to an applicant or insured who refuses to 312
470+secure and maintain flood insurance. The requirement to purchase 313
471+flood insurance shall be implemented as follows: 314
472+ 1. Except as provided in subparagraphs 2. and 3., all 315
473+personal lines residential policyholders must have flood 316
474+coverage in place for policies effective on or after: 317
475+ a. January 1, 2024, for property valued at $600,000 or 318
476+more. 319
477+ b. January 1, 2025, for property valued at $500,000 or 320
478+more. 321
479+ c. January 1, 2026, for property valued at $400,000 or 322
480+more. 323
481+ d. January 1, 2027, for all other personal lines 324
482+residential property insured by the corporation. 325
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491491 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
492492
493493
494494
495-unit owner which is provided to fulfill the association's notice 326
496-requirements under chapter 718 or cha pter 719, as applicable, 327
497-and by electronic transmission to unit owners who previously 328
498-consented to receive notice by electronic transmission using the 329
499-e-mail address or facsimile number of the unit owner which is 330
500-provided to fulfill the association's notic e requirements; must 331
501-post a copy of the inspector -prepared summary in a conspicuous 332
502-place on the condominium or cooperative property; and must 333
503-publish the full report and inspector -prepared summary on the 334
504-association's website, if the association is requir ed to have a 335
505-website. 336
506- (11) A board of county commissioners or municipal 337
507-governing body may adopt an ordinance requiring that a 338
508-condominium or cooperative association and any other owner who 339
509-is subject to this section schedule or commence repairs for 340
510-substantial structural deterioration within a specified 341
511-timeframe after the local enforcement agency receives a phase 342
512-two inspection report; however, such repairs must be commenced 343
513-within 365 days after receiving such report. If an association 344
514-fails to submit proof to the local enforcement agency that 345
515-repairs have been scheduled or have commenced for substantial 346
516-structural deterioration identified in a phase two inspection 347
517-report within the required timeframe, the local enforcement 348
518-agency must review and determ ine if the building is unsafe for 349
519-human occupancy. 350
495+ 2. All personal lines residential policyholders whose 326
496+property insured by the corporation is located within the 327
497+special flood hazard area defined by the Federal Emergency 328
498+Management Agency must have flood coverage in place: 329
499+ a. At the time of initial policy issuance for all new 330
500+personal lines residential policies issued by the corporation on 331
501+or after April 1, 2023. 332
502+ b. By the time of the policy renewal for all personal 333
503+lines residential policies renewing on or after July 1, 2023. 334
504+ 3. Policyholders whose policies issued by the corporation 335
505+do not provide coverage for the peril of wind are not required 336
506+to purchase flood insurance as a condition for maintaining their 337
507+policies issued by with the corporation, if such policy: 338
508+ a. Does not provide coverage for the peril of wind. 339
509+ b. Provides coverage under a condominium unit owners or 340
510+condominium tenant form and the policyholder's unit is covered 341
511+under a master flood policy issued to someone other than the 342
512+policyholder. 343
513+ c. Provides coverage under a condominium unit owners or 344
514+condominium tenant form and the policyholder resides in a 345
515+condominium unit with occupiable space that is not less than 40 346
516+feet above the grade plane, as defined in the Florida Building 347
517+Code. A unit located on the fifth floor above the grade plane or 348
518+higher is deemed to be not less than 40 feet above the grade 349
519+plane, as defined in the Florida Building Code. A unit owner or 350
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528528 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
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532- (12) By December 31, 2024, the Florida Building Commission 351
533-shall adopt rules pursuant to ss. 120.536(1) and 120.54 to 352
534-establish a building safety and inspection program for the 353
535-implementation of this sec tion within the Florida Building Code: 354
536-Existing Building. The building safety and inspection program 355
537-must, at minimum, include inspection criteria, testing 356
538-protocols, standardized inspection and reporting forms that are 357
539-adaptable to an electronic format, a nd record maintenance 358
540-requirements for the local enforcement agency review the 359
541-milestone inspection requirements under this section and make 360
542-recommendations, if any, to the Legislature to ensure 361
543-inspections are sufficient to determine the structural integr ity 362
544-of a building. The commission must provide a written report of 363
545-any recommendations to the Governor, the President of the 364
546-Senate, and the Speaker of the House of Representatives by 365
547-December 31, 2022. 366
548- Section 3. Paragraph (aa) of subsection (6) of se ction 367
549-627.351, Florida Statutes, is amended to read: 368
550- 627.351 Insurance risk apportionment plans. — 369
551- (6) CITIZENS PROPERTY INSURANCE CORPORATION. — 370
552- (aa) Except as otherwise provided in this paragraph, the 371
553-corporation shall require the securing and mainta ining of flood 372
554-insurance as a condition of coverage of a personal lines 373
555-residential risk. The insured or applicant must execute a form 374
556-approved by the office affirming that flood insurance is not 375
532+a condominium association may submit a certification from an 351
533+engineer licensed under chapter 471, a surveyor and mapper 352
534+licensed under chapter 472, or an architect licensed under 353
535+chapter 481, detailing which units in the condominium 354
536+association are not less than 40 feet above the grade plane, as 355
537+defined in the Florida Building Code, and the corporation may 356
538+rely on such certification . 357
539+ 358
540+The flood insurance required under this paragraph must meet, a t 359
541+a minimum, the coverage available from the National Flood 360
542+Insurance Program or the requirements of subparagraphs s. 361
543+627.715(1)(a)1., 2., and 3. 362
544+ Section 4. Subsection (25) of section 718.103, Florida 363
545+Statutes, is amended to read: 364
546+ 718.103 Definitions .—As used in this chapter, the term: 365
547+ (25) "Structural integrity reserve study" means a study of 366
548+the reserve funds required for future major repairs and 367
549+replacement of the common areas based on a visual inspection of 368
550+the common areas. A structural integri ty reserve study may be 369
551+performed by any person qualified to perform such study. 370
552+However, the visual inspection portion of the structural 371
553+integrity reserve study must be performed by an engineer 372
554+licensed under chapter 471 , a general contractor licensed und er 373
555+chapter 489 with at least 5 years' experience building or 374
556+constructing threshold buildings as defined in s. 553.71, a 375
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565565 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
566566
567567
568568
569-provided by the corporation and that if flood insurance is n ot 376
570-secured by the applicant or insured from an insurer other than 377
571-the corporation and in addition to coverage by the corporation, 378
572-the risk will not be eligible for coverage by the corporation. 379
573-The corporation may deny coverage of a personal lines 380
574-residential risk to an applicant or insured who refuses to 381
575-secure and maintain flood insurance. The requirement to purchase 382
576-flood insurance shall be implemented as follows: 383
577- 1. Except as provided in subparagraphs 2. , and 3., and 4., 384
578-all personal lines residential policyholders must have flood 385
579-coverage in place for policies effective on or after: 386
580- a. January 1, 2024, for property valued at $600,000 or 387
581-more. 388
582- b. January 1, 2025, for property valued at $500,000 or 389
583-more. 390
584- c. January 1, 2026, for property valued at $ 400,000 or 391
585-more. 392
586- d. January 1, 2027, for all other personal lines 393
587-residential property insured by the corporation. 394
588- 2. All personal lines residential policyholders whose 395
589-property insured by the corporation is located within the 396
590-special flood hazard area defined by the Federal Emergency 397
591-Management Agency must have flood coverage in place: 398
592- a. At the time of initial policy issuance for all new 399
593-personal lines residential policies issued by the corporation on 400
569+building code administrator or building code inspector licensed 376
570+under part XII of chapter 468 with at least 5 years' experience 377
571+inspecting threshold buildings as defined in s. 553.71, or an 378
572+architect licensed under chapter 481. At a minimum, a structural 379
573+integrity reserve study must identify the common areas being 380
574+visually inspected, state the estimated remaining useful life 381
575+and the estimated replacement cost or deferred maintenance 382
576+expense of the common areas being visually inspected, and 383
577+provide a recommended annual reserve amount that achieves the 384
578+estimated replacement cost or deferred maintenance expense of 385
579+each common area being visua lly inspected by the end of the 386
580+estimated remaining useful life of each common area. 387
581+ Section 5. Paragraphs (f), (g), and (h) of subsection (2) 388
582+of section 718.112, Florida Statutes, are amended to read: 389
583+ 718.112 Bylaws.— 390
584+ (2) REQUIRED PROVISIONS. —The bylaws shall provide for the 391
585+following and, if they do not do so, shall be deemed to include 392
586+the following: 393
587+ (f) Annual budget.— 394
588+ 1. The proposed annual budget of estimated revenues and 395
589+expenses must be detailed and must show the amounts budgeted by 396
590+accounts and expense classifications, including, at a minimum, 397
591+any applicable expenses listed in s. 718.504(21). The board 398
592+shall adopt the annual budget at least 14 days before the start 399
593+of the association's fiscal year. In the event that the board 400
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602602 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
603603
604604
605605
606-or after April 1, 2023. 401
607- b. By the time of the policy renewal for all personal 402
608-lines residential policies renewing on or after July 1, 2023. 403
609- 3. Policyholders whose policies issued by the corporation 404
610-do not provide coverage for the peril of wind are not required 405
611-to purchase flood insurance as a condit ion for maintaining their 406
612-policies with the corporation. 407
613- 4. Effective on or after January 1, 2027, policyholders 408
614-whose policies issued by the corporation provide coverage under 409
615-a condominium unit owners or condominium tenant form must 410
616-purchase flood insurance upon issuance or renewal of their 411
617-policies by the corporation, unless: 412
618- a. The policyholder's unit is covered under a master flood 413
619-policy issued to someone other than the policyholder. 414
620- b. The policyholder resides in a condominium unit with 415
621-occupiable space that is not less than 40 feet above the grade 416
622-plane, as defined in the Florida Building Code. A unit located 417
623-on the fifth floor above the grade plane or higher is deemed to 418
624-be not less than 40 feet above the grade plane, as defined in 419
625-the Florida Building Code. A unit owner or a condominium 420
626-association may submit a certification from an engineer licensed 421
627-under chapter 471, a surveyor and mapper licensed under chapter 422
628-472, or an architect licensed under chapter 481, detailing which 423
629-units in the condominium association are not less than 40 feet 424
630-above the grade plane, as defined in the Florida Building Code, 425
606+fails to timely adopt the annual budget a second time, it is 401
607+deemed a minor violation and the prior year's budget shall 402
608+continue in effect until a new budget is adopted. A 403
609+multicondominium association must adopt a separate budget of 404
610+common expenses for each condomini um the association operates 405
611+and must adopt a separate budget of common expenses for the 406
612+association. In addition, if the association maintains limited 407
613+common elements with the cost to be shared only by those 408
614+entitled to use the limited common elements as p rovided for in 409
615+s. 718.113(1), the budget or a schedule attached to it must show 410
616+the amount budgeted for this maintenance. If, after turnover of 411
617+control of the association to the unit owners, any of the 412
618+expenses listed in s. 718.504(21) are not applicable, they do 413
619+not need to be listed. 414
620+ 2.a. In addition to annual operating expenses, the budget 415
621+must include reserve accounts for capital expenditures and 416
622+deferred maintenance. These accounts must include, but are not 417
623+limited to, roof replacement, building pain ting, and pavement 418
624+resurfacing, regardless of the amount of deferred maintenance 419
625+expense or replacement cost, and any other item that has a 420
626+deferred maintenance expense or replacement cost that exceeds 421
627+$10,000, and those items listed in paragraph (g) that will 422
628+require maintenance, repair, or replacement within the next 25 423
629+years. The amount to be reserved for an item is determined by 424
630+the association's most recent structural integrity reserve study 425
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639639 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
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643-and the corporation may rely on such certification. 426
644- 427
645-The flood insurance required under this paragraph must meet, at 428
646-a minimum, the coverage available from the National Flood 429
647-Insurance Program or the requirements of subparagraphs s. 430
648-627.715(1)(a)1., 2., and 3. 431
649- Section 4. Subsections (1) through (31) of section 432
650-718.103, Florida Statutes, are renumbered as subsections (2) 433
651-through (32), respec tively, present subsection (25) of that 434
652-section is amended, and a new subsection (1) is added to that 435
653-section, to read: 436
654- 718.103 Definitions. —As used in this chapter, the term: 437
655- (1) "Alternative funding method" means a method approved 438
656-by the division for funding the capital expenditures and 439
657-deferred maintenance obligations for a multicondominium 440
658-association operating at least 25 condominiums which may 441
659-reasonably be expected to fully satisfy the association's 442
660-reserve funding obligations by the allocation o f funds in the 443
661-annual operating budget. 444
662- (26)(25) "Structural integrity reserve study" means a 445
663-study of the reserve funds required for future major repairs and 446
664-replacement of the condominium property as required under s. 447
665-718.112(2)(g) common areas based o n a visual inspection of the 448
666-common areas. A structural integrity reserve study may be 449
667-performed by any person qualified to perform such study. 450
643+that must be completed as provided in paragraph (g) by December 426
644+31, 2024. If the amount to be reserved for an item is not in the 427
645+association's initial or most recent structural integrity 428
646+reserve study or the association has not completed a structural 429
647+integrity reserve study, the amount must be computed using a 430
648+formula based upon estimated remaining useful life and estimated 431
649+replacement cost or deferred maintenance expense of the reserve 432
650+item. However, any item with a remaining useful life greater 433
651+than 25 years is not required to be included in the study. If an 434
652+association is required to complete a structural integrity 435
653+reserve study, the association's budget must maintain reserves, 436
654+in the amount recommended in the association's most recent 437
655+structural integrity reserve study, for the items listed in 438
656+paragraph (g). The association may adjust replacement reserve 439
657+assessments annually to take into account any changes in 440
658+estimates or extension of the useful life of a reserve item 441
659+caused by deferred maintenance. The members of a unit -owner-442
660+controlled association may determine, by a majority vote at a 443
661+duly called meeting of the association, to provide no reserves 444
662+or less reserves than required by this subsection. Effective 445
663+December 31, 2024, the members of a unit -owner-controlled 446
664+association that is required to complete a struct ural integrity 447
665+reserve study may not determine to provide no reserves or less 448
666+reserves than required by this subsection for items listed in 449
667+paragraph (g). 450
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676676 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
677677
678678
679679
680-However, the visual inspection portion of the structural 451
681-integrity reserve study must be performed by an enginee r 452
682-licensed under chapter 471 or an architect licensed under 453
683-chapter 481. At a minimum, a structural integrity reserve study 454
684-must identify the common areas being visually inspected, state 455
685-the estimated remaining useful life and the estimated 456
686-replacement cost or deferred maintenance expense of the common 457
687-areas being visually inspected, and provide a recommended annual 458
688-reserve amount that achieves the estimated replacement cost or 459
689-deferred maintenance expense of each common area being visually 460
690-inspected by the end of the estimated remaining useful life of 461
691-each common area. 462
692- Section 5. Paragraph (c) of subsection (12) of section 463
693-718.111, Florida Statutes, is amended to read: 464
694- 718.111 The association. — 465
695- (12) OFFICIAL RECORDS. — 466
696- (c)1. The official records of the association are open to 467
697-inspection by any association member and any person authorized 468
698-by an association member as a or the authorized representative 469
699-of such member at all reasonable times. The right to inspect the 470
700-records includes the right to make o r obtain copies, at the 471
701-reasonable expense, if any, of the member and the person 472
702-authorized by the association member as a or authorized 473
703-representative of such member. A renter of a unit has a right to 474
704-inspect and copy only the declaration of condominium, the 475
680+ b. Before turnover of control of an association by a 451
681+developer to unit owners other than a develope r under s. 452
682+718.301, the developer -controlled association may not vote to 453
683+waive the reserves or reduce funding of the reserves. If a 454
684+meeting of the unit owners has been called to determine whether 455
685+to waive or reduce the funding of reserves and no such resul t is 456
686+achieved or a quorum is not attained, the reserves included in 457
687+the budget shall go into effect. After the turnover, the 458
688+developer may vote its voting interest to waive or reduce the 459
689+funding of reserves. 460
690+ 3. Reserve funds and any interest accruing the reon shall 461
691+remain in the reserve account or accounts, and may be used only 462
692+for authorized reserve expenditures unless their use for other 463
693+purposes is approved in advance by a majority vote at a duly 464
694+called meeting of the association. Before turnover of con trol of 465
695+an association by a developer to unit owners other than the 466
696+developer pursuant to s. 718.301, the developer -controlled 467
697+association may not vote to use reserves for purposes other than 468
698+those for which they were intended. Effective December 31, 2024, 469
699+members of a unit-owner-controlled association that is required 470
700+to complete a structural integrity reserve study may not vote to 471
701+use reserve funds, or any interest accruing thereon, that are 472
702+reserved for items listed in paragraph (g) for any other purpose 473
703+other than their intended purpose. 474
704+ 4. The only voting interests that are eligible to vote on 475
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713713 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
714714
715715
716716
717-association's bylaws and rules, and the inspection reports 476
718-described in ss. 553.899 and 718.301(4)(p). The association may 477
719-adopt reasonable rules regarding the frequency, time, location, 478
720-notice, and manner of record inspections and copying but may not 479
721-require a member to demonstrate any purpose or state any reason 480
722-for the inspection. The failure of an association to provide the 481
723-records within 10 working days after receipt of a written 482
724-request creates a rebuttable presumption that the association 483
725-willfully failed to comply with this paragraph. A unit owner who 484
726-is denied access to official records is entitled to the actual 485
727-damages or minimum damages for the association's willful failure 486
728-to comply. Minimum damages are $50 per calendar day for up to 10 487
729-days, beginning on the 11th working day after receipt of the 488
730-written request. The failure to permit inspection entitles any 489
731-person prevailing in an enforcement action to recover reasonable 490
732-attorney fees from the person in control of the records who, 491
733-directly or indirectly, knowingly denied access to the records. 492
734- 2. Any person who knowingly or intentionally defaces or 493
735-destroys accounting records that are required by this chapter to 494
736-be maintained during the period for which such records are 495
737-required to be mainta ined, or who knowingly or intentionally 496
738-fails to create or maintain accounting records that are required 497
739-to be created or maintained, with the intent of causing harm to 498
740-the association or one or more of its members, is personally 499
741-subject to a civil penalty pursuant to s. 718.501(1)(d). 500
717+questions that involve waiving or reducing the funding of 476
718+reserves, or using existing reserve funds for purposes other 477
719+than purposes for which the reserves were intended, are the 478
720+voting interests of the units subject to assessment to fund the 479
721+reserves in question. Proxy questions relating to waiving or 480
722+reducing the funding of reserves or using existing reserve funds 481
723+for purposes other than purposes for which the reserves were 482
724+intended must contain the following statement in capitalized, 483
725+bold letters in a font size larger than any other used on the 484
726+face of the proxy ballot: WAIVING OF RESERVES, IN WHOLE OR IN 485
727+PART, OR ALLOWING ALTERNATIVE USES OF EXISTING RESERVES MAY 486
728+RESULT IN UNIT OWNER LIABILITY FOR PAYMENT OF UNANTICIPATED 487
729+SPECIAL ASSESSMENTS REGARDING THOSE ITEMS. 488
730+ (g) Structural integrity reserve study. — 489
731+ 1. An association must have a structural integrity reserve 490
732+study completed at least every 10 years after the condominium's 491
733+creation for each building on the condominium property that is 492
734+three stories or higher in height which includes, at a minimum, 493
735+a study of the following items as related to the structural 494
736+integrity and safety of the building: 495
737+ a. Roof. 496
738+ b. Load-bearing walls or other primary structural members. 497
739+ c. Floor. 498
740+ d. Foundation. 499
741+ e. Fireproofing and fire protection systems. 500
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750750 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
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754- 3. The association shall maintain an adequate number of 501
755-copies of the declaration, articles of incorporation, bylaws, 502
756-and rules, and all amendments to each of the foregoing, as well 503
757-as the question and answer sheet as descr ibed in s. 718.504 and 504
758-year-end financial information required under this section, on 505
759-the condominium property to ensure their availability to unit 506
760-owners and prospective purchasers, and may charge its actual 507
761-costs for preparing and furnishing these docume nts to those 508
762-requesting the documents. An association shall allow a member or 509
763-his or her authorized representative to use a portable device, 510
764-including a smartphone, tablet, portable scanner, or any other 511
765-technology capable of scanning or taking photographs , to make an 512
766-electronic copy of the official records in lieu of the 513
767-association's providing the member or his or her authorized 514
768-representative with a copy of such records. The association may 515
769-not charge a member or his or her authorized representative for 516
770-the use of a portable device. Notwithstanding this paragraph, 517
771-the following records are not accessible to unit owners: 518
772- a. Any record protected by the lawyer -client privilege as 519
773-described in s. 90.502 and any record protected by the work -520
774-product privilege, including a record prepared by an association 521
775-attorney or prepared at the attorney's express direction, which 522
776-reflects a mental impression, conclusion, litigation strategy, 523
777-or legal theory of the attorney or the association, and which 524
778-was prepared exclusively for civil or criminal litigation or for 525
754+ f. Plumbing. 501
755+ g. Electrical systems. 502
756+ h. Waterproofing and exterior painting. 503
757+ i. Windows and exterior doors. 504
758+ j. Any other item that has a deferred maintenance expense 505
759+or replacement cost that exceeds $10,000 and the failure to 506
760+replace or maintain such item negatively affects the items 507
761+listed in sub-subparagraphs a.-i., as determined by the licensed 508
762+engineer, general contractor, building code administrator, 509
763+building code inspector, or architect performing the visual 510
764+inspection portion of the structural integrity reserve study. 511
765+ 2. Before a developer turns over control of an association 512
766+to unit owners other than the d eveloper, the developer must have 513
767+a structural integrity reserve study completed for each building 514
768+on the condominium property that is three stories or higher in 515
769+height. 516
770+ 3. Associations that existing on or before July 1, 2022, 517
771+which are controlled by uni t owners other than the developer, 518
772+must have a structural integrity reserve study completed by 519
773+December 31, 2024, for each building on the condominium property 520
774+that is three stories or higher in height. An association that 521
775+is required to complete a milesto ne inspection on or before 522
776+December 31, 2026, in accordance with s. 553.899, may complete 523
777+the structural integrity reserve study simultaneously with the 524
778+milestone inspection. In no event may the structural integrity 525
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787787 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
788788
789789
790790
791-adversarial administrative proceedings, or which was prepared in 526
792-anticipation of such litigation or proceedings until the 527
793-conclusion of the litigation or proceedings. 528
794- b. Information obtained by an association in connection 529
795-with the approval of the lease, sale, or other transfer of a 530
796-unit. 531
797- c. Personnel records of association or management company 532
798-employees, including, but not limited to, disciplinary, payroll, 533
799-health, and insurance records. For purposes of th is sub-534
800-subparagraph, the term "personnel records" does not include 535
801-written employment agreements with an association employee or 536
802-management company, or budgetary or financial records that 537
803-indicate the compensation paid to an association employee. 538
804- d. Medical records of unit owners. 539
805- e. Social security numbers, driver license numbers, credit 540
806-card numbers, e-mail addresses, telephone numbers, facsimile 541
807-numbers, emergency contact information, addresses of a unit 542
808-owner other than as provided to fulfill the as sociation's notice 543
809-requirements, and other personal identifying information of any 544
810-person, excluding the person's name, unit designation, mailing 545
811-address, property address, and any address, e -mail address, or 546
812-facsimile number provided to the association to fulfill the 547
813-association's notice requirements. Notwithstanding the 548
814-restrictions in this sub -subparagraph, an association may print 549
815-and distribute to unit owners a directory containing the name, 550
791+reserve study be completed after Decembe r 31, 2026. 526
792+ 4. If an association fails to complete a structural 527
793+integrity reserve study pursuant to this paragraph, such failure 528
794+is a breach of an officer's and director's fiduciary 529
795+relationship to the unit owners under s. 718.111(1). 530
796+ 5. If the milestone inspection required by s. 553.899, or 531
797+an inspection completed for a similar local requirement, was 532
798+performed within the past 5 years and meets the requirements of 533
799+this paragraph, such inspection may be used in place of the 534
800+visual inspection portion of t he structural integrity reserve 535
801+study. 536
802+ (h) Mandatory milestone inspections. —If an association is 537
803+required to have a milestone inspection performed pursuant to s. 538
804+553.899, the association must arrange for the milestone 539
805+inspection to be performed and is re sponsible for ensuring 540
806+compliance with the requirements of s. 553.899. The association 541
807+is responsible for all costs associated with the inspection. If 542
808+the officers or directors of an association willfully and 543
809+knowingly fail to have a milestone inspection p erformed pursuant 544
810+to s. 553.899, such failure is a breach of the officers' and 545
811+directors' fiduciary relationship to the unit owners under s. 546
812+718.111(1)(a). Within 60 days after Upon completion of a phase 547
813+one or phase two milestone inspection and receipt of the 548
814+inspector-prepared summary of the milestone inspection report 549
815+from any phase one or phase two milestone inspection from the 550
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824824 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
825825
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828-unit address, and all telephone numbers of each unit owner. 551
829-However, an owner may exclude his or her telephone numbers from 552
830-the directory by so requesting in writing to the association. An 553
831-owner may consent in writing to the disclosure of other contact 554
832-information described in this sub -subparagraph. The association 555
833-is not liable for the inadvertent disclosure of information that 556
834-is protected under this sub -subparagraph if the information is 557
835-included in an official record of the association and is 558
836-voluntarily provided by an owner and not requested by the 559
837-association. 560
838- f. Electronic security measures that are used by the 561
839-association to safeguard data, including passwords. 562
840- g. The software and operating system used by the 563
841-association which allow the manipulation of data, even if the 564
842-owner owns a copy of the same softwa re used by the association. 565
843-The data is part of the official records of the association. 566
844- h. All affirmative acknowledgments made pursuant to s. 567
845-718.121(4)(c). 568
846- Section 6. Paragraphs (e), (f), (g), and (h) of subsection 569
847-(2) of section 718.112, Florida Statutes, are amended to read: 570
848- 718.112 Bylaws.— 571
849- (2) REQUIRED PROVISIONS. —The bylaws shall provide for the 572
850-following and, if they do not do so, shall be deemed to include 573
851-the following: 574
852- (e) Budget meeting.— 575
828+architect or engineer who performed the inspection , the 551
829+association must distribute a copy of the inspector -prepared 552
830+summary of the inspection report to each unit owner, regardless 553
831+of the findings or recommendations in the report, by United 554
832+States mail or personal delivery and by electronic transmission 555
833+to unit owners who previously consented to receive notice by 556
834+electronic transmission; must post a copy of the inspector -557
835+prepared summary in a conspicuous place on the condominium 558
836+property; and must publish the full report and inspector -559
837+prepared summary on the association's website, if the 560
838+association is required to have a website. If the visual 561
839+inspection portion of the structural integrity reserve study 562
840+required under paragraph (g) was performed within the past 5 563
841+years and meets the requirements for a milestone inspection in 564
842+s. 553.899, such inspection may be used in place of the ph ase 565
843+one milestone inspection. 566
844+ Section 6. Effective July 1, 2027, subsection (5) of 567
845+section 718.1255, Florida Statutes, is amended, and paragraph 568
846+(d) is added to subsection (1) of that section, to read: 569
847+ 718.1255 Alternative dispute resolution; mediati on; 570
848+nonbinding arbitration; applicability. — 571
849+ (1) DEFINITIONS.—As used in this section, the term 572
850+"dispute" means any disagreement between two or more parties 573
851+that involves: 574
852+ (d) The failure of a board of administration, when 575
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861861 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
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864864
865- 1. Any meeting at which a proposed annual budget of an 576
866-association will be considered by the board or unit owners shall 577
867-be open to all unit owners. At least 14 days before prior to 578
868-such a meeting, the board shall hand deliver to each unit owner, 579
869-mail to each unit owner at the address last furnishe d to the 580
870-association by the unit owner, or electronically transmit to the 581
871-location furnished by the unit owner for that purpose a notice 582
872-of such meeting and a copy of the proposed annual budget. An 583
873-officer or manager of the association, or other person pro viding 584
874-notice of such meeting, shall execute an affidavit evidencing 585
875-compliance with such notice requirement, and such affidavit 586
876-shall be filed among the official records of the association. 587
877- 2.a. If a board adopts in any fiscal year an annual budget 588
878-that which requires assessments against unit owners which exceed 589
879-115 percent of assessments for the preceding fiscal year, the 590
880-board shall conduct a special meeting of the unit owners to 591
881-consider a substitute budget if the board receives, within 21 592
882-days after adoption of the annual budget, a written request for 593
883-a special meeting from at least 10 percent of all voting 594
884-interests. The special meeting shall be conducted within 60 days 595
885-after adoption of the annual budget. At least 14 days before 596
886-prior to such special meeting, the board shall hand deliver to 597
887-each unit owner, or mail to each unit owner at the address last 598
888-furnished to the association, a notice of the meeting. An 599
889-officer or manager of the association, or other person providing 600
865+required by this chapter or a governing document of the 576
866+association, to: 577
867+ 1. Obtain a milestone inspection as required under s. 578
868+553.899. 579
869+ 2. Obtain a structural integrity reserve study as required 580
870+under s. 718.112(2)(g). 581
871+ 3. Fund reserve accounts as required for an item 582
872+identified in s. 718.112(2)(g). 583
873+ 4. Make or provide necessary maintenance or repairs of the 584
874+condominium property as recommended by a milestone inspection or 585
875+a structural integrity reserve study. 586
876+ 587
877+"Dispute" does not include any disagreement that primarily 588
878+involves: title to any unit or common element; the 589
879+interpretation or enforcement of any warranty; the levy of a fee 590
880+or assessment, or the collection of an assessment levied against 591
881+a party; the eviction or other removal of a tenant from a unit; 592
882+alleged breaches of fid uciary duty by one or more directors; or 593
883+claims for damages to a unit based upon the alleged failure of 594
884+the association to maintain the common elements or condominium 595
885+property. 596
886+ (5) PRESUIT MEDIATION. —In lieu of the initiation of 597
887+nonbinding arbitration as provided in subsections (1) -(4), a 598
888+party may submit a dispute to presuit mediation in accordance 599
889+with s. 720.311, except for: 600
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898898 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
899899
900900
901901
902-notice of such meeting sha ll execute an affidavit evidencing 601
903-compliance with this notice requirement, and such affidavit 602
904-shall be filed among the official records of the association. 603
905-Unit owners may consider and adopt a substitute budget at the 604
906-special meeting. A substitute budget is adopted if approved by a 605
907-majority of all voting interests unless the bylaws require 606
908-adoption by a greater percentage of voting interests. If there 607
909-is not a quorum at the special meeting or a substitute budget is 608
910-not adopted, the annual budget previously adopted by the board 609
911-shall take effect as scheduled. 610
912- b. Any determination of whether assessments exceed 115 611
913-percent of assessments for the prior fiscal year shall exclude 612
914-any authorized provision for reasonable reserves for repair or 613
915-replacement of the condominium property, anticipated expenses of 614
916-the association which the board does not expect to be incurred 615
917-on a regular or annual basis, insurance premiums, or assessments 616
918-for betterments to the condominium property. 617
919- c. If the developer controls the board, assessments shall 618
920-not exceed 115 percent of assess ments for the prior fiscal year 619
921-unless approved by a majority of all voting interests. 620
922- (f) Annual budget.— 621
923- 1. The proposed annual budget of estimated revenues and 622
924-expenses must be detailed and must show the amounts budgeted by 623
925-accounts and expense clas sifications, including, at a minimum, 624
926-any applicable expenses listed in s. 718.504(21). The board 625
902+ (a) Disputes listed in paragraph (1)(d) are not subject to 601
903+nonbinding arbitration under subsection (4) and must be 602
904+submitted to presuit mediation in accordance with s. 720.311. ; 603
905+however, 604
906+ (b) Election and recall disputes are not eligible for 605
907+mediation and such disputes must be arbitrated by the division 606
908+or filed in a court of competent jurisdiction. 607
909+ Section 7. Section 718.13, Florida Statutes, is created to 608
910+read: 609
911+ 718.13 Injunctive relief. — 610
912+ (1) A unit owner may institute an action in a court of 611
913+competent jurisdiction in which the condominium is located to 612
914+seek injunctive relief against the association to: 613
915+ (a) Enforce compliance with milestone inspection 614
916+requirements under s. 553.899 and structural integrity reserve 615
917+study requirements under s. 718.112(2)(g). 616
918+ (b) Prevent irreparable injury to unit owners and the 617
919+association and to protect human health, safety, and welfare 618
920+caused or threatened by any violation of the milestone 619
921+inspection requirements under s. 553.899 and structural 620
922+integrity reserve study requirements under s. 718.112(2)(g). 621
923+ (2) The division may, in the name of the state, seek 622
924+injunctive relief in any cour t of competent jurisdiction in 623
925+which the condominium is located to obtain relief against the 624
926+association to enforce compliance with milestone inspection 625
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935935 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
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939-shall adopt the annual budget at least 14 days before the start 626
940-of the association's fiscal year. In the event that the board 627
941-fails to timely adopt the annual budget a second time, it is 628
942-deemed a minor violation and the prior year's budget shall 629
943-continue in effect until a new budget is adopted. A 630
944-multicondominium association must adopt a separate budget of 631
945-common expenses for each condominium the association op erates 632
946-and must adopt a separate budget of common expenses for the 633
947-association. In addition, if the association maintains limited 634
948-common elements with the cost to be shared only by those 635
949-entitled to use the limited common elements as provided for in 636
950-s. 718.113(1), the budget or a schedule attached to it must show 637
951-the amount budgeted for this maintenance. If, after turnover of 638
952-control of the association to the unit owners, any of the 639
953-expenses listed in s. 718.504(21) are not applicable, they do 640
954-not need to be listed. 641
955- 2.a. In addition to annual operating expenses, the budget 642
956-must include reserve accounts for capital expenditures and 643
957-deferred maintenance. These accounts must include, but are not 644
958-limited to, roof replacement, building painting, and pavement 645
959-resurfacing, regardless of the amount of deferred maintenance 646
960-expense or replacement cost, and any other item that has a 647
961-deferred maintenance expense or replacement cost that exceeds 648
962-$10,000. The amount to be reserved for an item is determined by 649
963-the association's most recent structural integrity reserve study 650
939+requirements under s. 553.899. A proceeding commenced under this 626
940+subsection is in addition to, and not in lieu of, any other 627
941+penalty or remedy under this chapter. 628
942+ (3) Any local authority having jurisdiction to enforce 629
943+milestone inspection requirements may seek injunctive relief 630
944+from any court of competent jurisdiction in which the 631
945+condominium is located a gainst the association to enforce 632
946+compliance with milestone inspection requirements under s. 633
947+553.899, upon an affidavit of the local authority having 634
948+jurisdiction specifying the manner in which the condominium does 635
949+not conform to the requirements of s. 553 .899. 636
950+ Section 8. Paragraph (p) of subsection (4) of section 637
951+718.301, Florida Statutes, is amended to read: 638
952+ 718.301 Transfer of association control; claims of defect 639
953+by association.— 640
954+ (4) At the time that unit owners other than the developer 641
955+elect a majority of the members of the board of administration 642
956+of an association, the developer shall relinquish control of the 643
957+association, and the unit owners shall accept control. 644
958+Simultaneously, or for the purposes of paragraph (c) not more 645
959+than 90 days thereafter, the developer shall deliver to the 646
960+association, at the developer's expense, all property of the 647
961+unit owners and of the association which is held or controlled 648
962+by the developer, including, but not limited to, the following 649
963+items, if applicable, as to each condominium operated by the 650
964964
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968968
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972972 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
973973
974974
975975
976-that must be completed by December 31, 2024. If the amount to be 651
977-reserved for an item is not in the association's initial or most 652
978-recent structural integrity reserve study or the association has 653
979-not completed a structural integrity reserve study, the amount 654
980-must be computed using a formula based upon estimated remaining 655
981-useful life and estimated replacement cost or deferred 656
982-maintenance expense of the reserve item. In a budget adopted by 657
983-an association that is required to obtain a structural integrity 658
984-reserve study, reserves must be maintained for the items 659
985-identified in paragraph (g), and the reserve amount for such 660
986-items must be based on the findings and recommendations of the 661
987-association's most recent structural integrity reserve study. 662
988-With respect to items for which an estimated remaining useful 663
989-life is not readily ascertainable or which have an estimated 664
990-remaining useful life of greater than 25 years, an association 665
991-is not required to reserve replac ement costs for such items, but 666
992-an association must reserve the amount of deferred maintenance 667
993-expense, if any, which is recommended by the structural 668
994-integrity reserve study for such items. The association may 669
995-adjust replacement reserve assessments annual ly to take into 670
996-account an inflation adjustment and any changes in estimates or 671
997-extension of the useful life of a reserve item caused by 672
998-deferred maintenance. The members of a unit -owner-controlled 673
999-association may determine, by a majority vote at a duly ca lled 674
1000-meeting of the association, to provide no reserves or less 675
976+association: 651
977+ (p) Notwithstanding when the certificate of occupancy was 652
978+issued or the height of the building, a milestone inspection 653
979+report in compliance with s. 553.899 included in the official 654
980+records, under seal of an architect or engineer or under 655
981+attestation of a general contractor, building code 656
982+administrator, or building code inspector authorized to practice 657
983+in this state indicating that such report complies with the 658
984+statutory requirements for the inspection , and attesting to 659
985+required maintenance, condition, usef ul life, and replacement 660
986+costs of the following applicable condominium property 661
987+comprising a turnover inspection report: 662
988+ 1. Roof. 663
989+ 2. Structure, including load -bearing walls and primary 664
990+structural members and primary structural systems as those terms 665
991+are defined in s. 627.706. 666
992+ 3. Fireproofing and fire protection systems. 667
993+ 4. Elevators. 668
994+ 5. Heating and cooling systems. 669
995+ 6. Plumbing. 670
996+ 7. Electrical systems. 671
997+ 8. Swimming pool or spa and equipment. 672
998+ 9. Seawalls. 673
999+ 10. Pavement and parking areas. 674
1000+ 11. Drainage systems. 675
10011001
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10041004
10051005
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10091009 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
10101010
10111011
10121012
1013-reserves than required by this subsection. Effective December 676
1014-31, 2024, the members of a unit -owner-controlled association 677
1015-that must obtain a structural integrity reserve study may not 678
1016-determine to provide no reserves or less reserves than required 679
1017-by this subsection for items listed in paragraph (g) , except 680
1018-that members of an association operating a multicondominium may 681
1019-determine to provide no reserves or less reserves than required 682
1020-by this paragraph if such multicondominium uses an alternative 683
1021-funding method approved by the division . 684
1022- b. Before turnover of control of an association by a 685
1023-developer to unit owners other than a developer under s. 686
1024-718.301, the developer -controlled association may not vote to 687
1025-waive the reserves or reduce funding of the reserves. If a 688
1026-meeting of the unit owners has been called to determine whether 689
1027-to waive or reduce the funding of reserves and no such result is 690
1028-achieved or a quorum is not attained, the reserves inclu ded in 691
1029-the budget shall go into effect. After the turnover, the 692
1030-developer may vote its voting interest to waive or reduce the 693
1031-funding of reserves. 694
1032- 3. Reserve funds and any interest accruing thereon shall 695
1033-remain in the reserve account or accounts, and may be used only 696
1034-for authorized reserve expenditures unless their use for other 697
1035-purposes is approved in advance by a majority vote at a duly 698
1036-called meeting of the association. Before turnover of control of 699
1037-an association by a developer to unit owners other th an the 700
1013+ 12. Painting. 676
1014+ 13. Irrigation systems. 677
1015+ 14. Waterproofing. 678
1016+ Section 9. Paragraph (b) of subsection (1) and paragraph 679
1017+(a) of subsection (2) of section 718.503, Florida Statutes, are 680
1018+amended, and paragraph (d) is added to subsectio n (1) and 681
1019+paragraph (e) is added to subsection (2) of that section, to 682
1020+read: 683
1021+ 718.503 Developer disclosure prior to sale; nondeveloper 684
1022+unit owner disclosure prior to sale; voidability. — 685
1023+ (1) DEVELOPER DISCLOSURE. — 686
1024+ (b) Copies of documents to be furnishe d to prospective 687
1025+buyer or lessee.—Until such time as the developer has furnished 688
1026+the documents listed below to a person who has entered into a 689
1027+contract to purchase a residential unit or lease it for more 690
1028+than 5 years, the contract may be voided by that per son, 691
1029+entitling the person to a refund of any deposit together with 692
1030+interest thereon as provided in s. 718.202. The contract may be 693
1031+terminated by written notice from the proposed buyer or lessee 694
1032+delivered to the developer within 15 days after the buyer or 695
1033+lessee receives all of the documents required by this section. 696
1034+The developer may not close for 15 days after the execution of 697
1035+the agreement and delivery of the documents to the buyer as 698
1036+evidenced by a signed receipt for documents unless the buyer is 699
1037+informed in the 15-day voidability period and agrees to close 700
10381038
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10421042
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10461046 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
10471047
10481048
10491049
1050-developer pursuant to s. 718.301, the developer -controlled 701
1051-association may not vote to use reserves for purposes other than 702
1052-those for which they were intended. Effective December 31, 2024, 703
1053-members of a unit-owner-controlled association that must obtain 704
1054-a structural integrity reserve study may not vote to use reserve 705
1055-funds, or any interest accruing thereon, that are reserved for 706
1056-items listed in paragraph (g) for any other purpose other than 707
1057-the replacement or deferred maintenance costs of the items 708
1058-listed in paragraph (g) their intended purpose . 709
1059- 4. The only voting interests that are eligible to vote on 710
1060-questions that involve waiving or reducing the funding of 711
1061-reserves, or using existing reserve funds for purposes other 712
1062-than purposes for which the res erves were intended, are the 713
1063-voting interests of the units subject to assessment to fund the 714
1064-reserves in question. Proxy questions relating to waiving or 715
1065-reducing the funding of reserves or using existing reserve funds 716
1066-for purposes other than purposes for which the reserves were 717
1067-intended must contain the following statement in capitalized, 718
1068-bold letters in a font size larger than any other used on the 719
1069-face of the proxy ballot: WAIVING OF RESERVES, IN WHOLE OR IN 720
1070-PART, OR ALLOWING ALTERNATIVE USES OF EXISTING RESERVES MAY 721
1071-RESULT IN UNIT OWNER LIABILITY FOR PAYMENT OF UNANTICIPATED 722
1072-SPECIAL ASSESSMENTS REGARDING THOSE ITEMS. 723
1073- (g) Structural integrity reserve study. — 724
1074- 1. A residential or mixed -use condominium An association 725
1050+before the expiration of the 15 days. The developer shall retain 701
1051+in his or her records a separate agreement signed by the buyer 702
1052+as proof of the buyer's agreement to close before the expiration 703
1053+of the voidability period. The developer must retain such proof 704
1054+for a period of 5 years after the date of the closing of the 705
1055+transaction. The documents to be delivered to the prospective 706
1056+buyer are the prospectus or disclosure statement with all 707
1057+exhibits, if the development is subject to s. 718.504, or, if 708
1058+not, then copies of the following which are applicable: 709
1059+ 1. The question and answer sheet described in s. 718.504, 710
1060+and declaration of condominium, or the proposed declaration if 711
1061+the declaration has not been recor ded, which shall include the 712
1062+certificate of a surveyor approximately representing the 713
1063+locations required by s. 718.104. 714
1064+ 2. The documents creating the association. 715
1065+ 3. The bylaws. 716
1066+ 4. The ground lease or other underlying lease of the 717
1067+condominium. 718
1068+ 5. The management contract, maintenance contract, and 719
1069+other contracts for management of the association and operation 720
1070+of the condominium and facilities used by the unit owners having 721
1071+a service term in excess of 1 year, and any management contracts 722
1072+that are renewable. 723
1073+ 6. The estimated operating budget for the condominium and 724
1074+a schedule of expenses for each type of unit, including fees 725
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10831083 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
10841084
10851085
10861086
1087-must have a structural integrity rese rve study completed at 726
1088-least every 10 years after the condominium's creation for each 727
1089-building with at least one residential unit on the condominium 728
1090-property that is three stories or higher in height as determined 729
1091-by the Florida Building Code which includes, at a minimum, a 730
1092-study of the following items as related to the structural 731
1093-integrity and safety of the building: 732
1094- a. Roof. 733
1095- b. Structure, including load-bearing walls and or other 734
1096-primary structural members and primary structural systems as 735
1097-those terms are defined in s. 627.706 . 736
1098- c. Floor. 737
1099- d. Foundation. 738
1100- e. Fireproofing and fire protection systems. 739
1101- d.f. Plumbing. 740
1102- e.g. Electrical systems. 741
1103- f.h. Waterproofing and exterior painting. 742
1104- g.i. Windows and exterior doors. 743
1105- h.j. Any other item that ha s a deferred maintenance 744
1106-expense or replacement cost that exceeds $10,000 and the failure 745
1107-to replace or maintain such item negatively affects the items 746
1108-listed in sub-subparagraphs a.-g. sub-subparagraphs a.-i., as 747
1109-determined by the licensed engineer or arc hitect performing the 748
1110-visual inspection portion of the structural integrity reserve 749
1111-study. 750
1087+assessed pursuant to s. 718.113(1) for the maintenance of 726
1088+limited common elements where such costs are shared only by 727
1089+those entitled to use the limited common elements. 728
1090+ 7. The lease of recreational and other facilities that 729
1091+will be used only by unit owners of the subject condominium. 730
1092+ 8. The lease of recreational and other common facilities 731
1093+that will be used by unit owners in c ommon with unit owners of 732
1094+other condominiums. 733
1095+ 9. The form of unit lease if the offer is of a leasehold. 734
1096+ 10. Any declaration of servitude of properties serving the 735
1097+condominium but not owned by unit owners or leased to them or 736
1098+the association. 737
1099+ 11. If the development is to be built in phases or if the 738
1100+association is to manage more than one condominium, a 739
1101+description of the plan of phase development or the arrangements 740
1102+for the association to manage two or more condominiums. 741
1103+ 12. If the condominium is a conversion of existing 742
1104+improvements, the statements and disclosure required by s. 743
1105+718.616. 744
1106+ 13. The form of agreement for sale or lease of units. 745
1107+ 14. A copy of the floor plan of the unit and the plot plan 746
1108+showing the location of the residential building s and the 747
1109+recreation and other common areas. 748
1110+ 15. A copy of all covenants and restrictions that will 749
1111+affect the use of the property and are not contained in the 750
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11201120 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
11211121
11221122
11231123
1124- 2. A structural integrity reserve study is based on a 751
1125-visual inspection of the condominium property. A structural 752
1126-integrity reserve study may be performed by any p erson qualified 753
1127-to perform such study. However, the visual inspection portion of 754
1128-the structural integrity reserve study must be performed or 755
1129-verified by an engineer licensed under chapter 471 or an 756
1130-architect licensed under chapter 481, or performed by a pe rson 757
1131-certified as a reserve specialist or professional reserve 758
1132-analyst by the Community Associations Institute or the 759
1133-Association of Professional Reserve Analysts. 760
1134- 3. At a minimum, a structural integrity reserve study must 761
1135-identify each item of the condo minium property being visually 762
1136-inspected, state the estimated remaining useful life and the 763
1137-estimated replacement cost or deferred maintenance expense of 764
1138-each item of the condominium property being visually inspected, 765
1139-and provide a reserve funding schedule with a recommended annual 766
1140-reserve amount that achieves the estimated replacement cost or 767
1141-deferred maintenance expense of each item of condominium 768
1142-property being visually inspected by the end of the estimated 769
1143-remaining useful life of the item. The structur al integrity 770
1144-reserve study may recommend that reserves do not need to be 771
1145-maintained for any item for which an estimated remaining useful 772
1146-life and estimated replacement cost cannot be determined, or the 773
1147-study may recommend a deferred maintenance expense amo unt for 774
1148-such item. The structural integrity reserve study may recommend 775
1124+foregoing. 751
1125+ 16. If the developer is required by state or local 752
1126+authorities to obtain acceptan ce or approval of any dock or 753
1127+marina facilities intended to serve the condominium, a copy of 754
1128+any such acceptance or approval acquired by the time of filing 755
1129+with the division under s. 718.502(1), or a statement that such 756
1130+acceptance or approval has not been acquired or received. 757
1131+ 17. Evidence demonstrating that the developer has an 758
1132+ownership, leasehold, or contractual interest in the land upon 759
1133+which the condominium is to be developed. 760
1134+ 18. A copy of the inspector -prepared summary of the 761
1135+milestone inspection report as described in ss. 553.899 and 762
1136+718.112(2)(h) ss. 553.899 and 718.301(4)(p) . 763
1137+ 19. A copy of the association's most recent structural 764
1138+integrity reserve study or a statement that the association has 765
1139+not completed a structural integrity reserve study . 766
1140+ (d) Milestone inspection or structural integrity reserve 767
1141+study.— 768
1142+ 1. If the association is required to have a milestone 769
1143+inspection as described in ss. 553.899 and 718.112(2)(h) or a 770
1144+structural integrity reserve study as described in s. 771
1145+718.112(2)(g), and the association has not completed the 772
1146+milestone inspection or structural integrity reserve study, each 773
1147+contract entered into on or after January 1, 2025, for the sale 774
1148+of a residential unit must contain in conspicuous type a 775
11491149
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11581158
11591159
11601160
1161-that reserves for replacement costs do not need to be maintained 776
1162-for any item with an estimated remaining useful life of greater 777
1163-than 25 years, or the study may recommend a deferred ma intenance 778
1164-expense amount for such item. 779
1165- 4. This paragraph does not apply to buildings less than 780
1166-three stories in height and to single -family, two-family, or 781
1167-three-family dwellings with three or fewer habitable stories 782
1168-above ground. 783
1169- 5. Before a developer turns over control of an association 784
1170-to unit owners other than the developer, the developer must have 785
1171-a structural integrity reserve study completed for each building 786
1172-on the condominium property that is three stories or higher in 787
1173-height. 788
1174- 6.3. Associations existing on or before July 1, 2022, 789
1175-which are controlled by unit owners other than the developer, 790
1176-must have a structural integrity reserve study completed by 791
1177-December 31, 2024, for each building on the condominium property 792
1178-that is three stories or high er in height. An association that 793
1179-is required to complete a milestone inspection in accordance 794
1180-with s. 553.899 on or before December 31, 2026, may complete the 795
1181-structural integrity reserve study simultaneously with the 796
1182-milestone inspection. In no event may the structural integrity 797
1183-reserve study be completed after December 31, 2026. 798
1184- 7. If the milestone inspection required by s. 553.899, or 799
1185-an inspection completed for a similar local requirement, was 800
1161+statement indicating that th e association is required to have a 776
1162+milestone inspection or a structural integrity reserve study and 777
1163+the association has failed to complete such inspection or study, 778
1164+as applicable. 779
1165+ 2. If the association is required to have a milestone 780
1166+inspection as described in ss. 553.899 and 718.112(2)(h) or a 781
1167+structural integrity reserve study as described in s. 782
1168+718.112(2)(g), and the association has completed such inspection 783
1169+or study, each contract entered into on or after January 1, 784
1170+2025, for the sale of a residentia l unit must contain a copy of 785
1171+the most recent milestone inspection report or structural 786
1172+integrity reserve study, as applicable. 787
1173+ 3. If the association is not required to have a milestone 788
1174+inspection as described in ss. 553.899 and 718.112(2)(h) or a 789
1175+structural integrity reserve study as described in s. 790
1176+718.112(2)(g), each contract entered into on or after January 1, 791
1177+2025, for the sale of a residential unit must contain in 792
1178+conspicuous type a statement indicating that the association is 793
1179+not required to have a milestone inspection or a structural 794
1180+integrity reserve study, as applicable. 795
1181+ (2) NONDEVELOPER DISCLOSURE. — 796
1182+ (a) Each unit owner who is not a developer as defined by 797
1183+this chapter must comply with this subsection before the sale of 798
1184+his or her unit. Each prospective purchaser who has entered into 799
1185+a contract for the purchase of a condominium unit is entitled, 800
11861186
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11941194 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
11951195
11961196
11971197
1198-performed within the previous 5 years and meets the requi rements 801
1199-of this paragraph, such inspection may be used in place of the 802
1200-visual inspection portion of the structural integrity reserve 803
1201-study. 804
1202- 8.4. If the officers or directors of an association fail 805
1203-fails to complete a structural integrity reserve study pu rsuant 806
1204-to this paragraph, such failure is a breach of an officer's and 807
1205-director's fiduciary relationship to the unit owners under s. 808
1206-718.111(1). 809
1207- (h) Mandatory milestone inspections. —If an association is 810
1208-required to have a milestone inspection performed pursuant to s. 811
1209-553.899, the association must arrange for the milestone 812
1210-inspection to be performed and is responsible for ensuring 813
1211-compliance with the requirements of s. 553.899. The as sociation 814
1212-is responsible for all costs associated with the milestone 815
1213-inspection for to the portions of the building which the 816
1214-association is responsible for maintaining under the governing 817
1215-documents of the association . If the officers or directors of an 818
1216-association willfully and knowingly fail to have a milestone 819
1217-inspection performed pursuant to s. 553.899, such failure is a 820
1218-breach of the officers' and directors' fiduciary relationship to 821
1219-the unit owners under s. 718.111(1)(a). Within 14 days after 822
1220-receipt of a written notice from the local enforcement agency 823
1221-that a milestone inspection is required, the association must 824
1222-notify the unit owners of the required milestone inspection and 825
1198+at the seller's expense, to a current copy of all of the 801
1199+following: 802
1200+ 1. The declaration of condominium. 803
1201+ 2. Articles of incorporation of the associa tion. 804
1202+ 3. Bylaws and rules of the association. 805
1203+ 4. Financial information required by s. 718.111. 806
1204+ 5. A copy of the inspector -prepared summary of the 807
1205+milestone inspection report as described in ss. 553.899 and 808
1206+718.112(2)(h) ss. 553.899 and 718.301(4)(p) , if applicable. 809
1207+ 6. The association's most recent structural integrity 810
1208+reserve study or a statement that the association has not 811
1209+completed a structural integrity reserve study. 812
1210+ 7. The document entitled "Frequently Asked Questions and 813
1211+Answers" required by s. 718.504. 814
1212+ (e)1. If the association is required to have a milestone 815
1213+inspection as described in ss. 553.899 and 718.112(2)(h) or a 816
1214+structural integrity reserve study as described in s. 817
1215+718.112(2)(g), and the association has not completed the 818
1216+milestone inspection or structural integrity reserve study, each 819
1217+contract entered into on or after January 1, 2025, for the sale 820
1218+of a residential unit must contain in conspicuous type a 821
1219+statement indicating that the association is required to have a 822
1220+milestone inspection or a structural integrity reserve study and 823
1221+the association has failed to complete such inspection or study, 824
1222+as applicable. 825
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12311231 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
12321232
12331233
12341234
1235-provide the date by which the milestone inspection must be 826
1236-completed. Such notice may be given by electronic submission to 827
1237-unit owners who consent to receive notice by electronic 828
1238-submission or by posting the notice on the association's 829
1239-website. Within 45 days after receiving Upon completion of a 830
1240-phase one or phase two milestone in spection and receipt of the 831
1241-inspector-prepared summary of the inspection report from the 832
1242-licensed architect or engineer who performed the inspection, the 833
1243-association must distribute a copy of the inspector -prepared 834
1244-summary of the inspection report to each unit owner, regardless 835
1245-of the findings or recommendations in the report, by United 836
1246-States mail or personal delivery at the mailing address, 837
1247-property address, or any other address of the unit owner which 838
1248-is provided to fulfill the association's notice requi rements 839
1249-under this chapter and by electronic transmission to unit owners 840
1250-who previously consented to receive notice by electronic 841
1251-transmission using the e-mail address or facsimile number of the 842
1252-unit owner which is provided to fulfill the association's not ice 843
1253-requirements under this chapter ; must post a copy of the 844
1254-inspector-prepared summary in a conspicuous place on the 845
1255-condominium property; and must publish the full report and 846
1256-inspector-prepared summary on the association's website, if the 847
1257-association is required to have a website. 848
1258- Section 7. Effective July 1, 2027, subsection (5) of 849
1259-section 718.1255, Florida Statutes, is amended, and paragraph 850
1235+ 2. If the association is required to have a milestone 826
1236+inspection as described in ss. 553.899 and 718.112(2)(h) or a 827
1237+structural integrity reserve study as described in s. 828
1238+718.112(2)(g), and the association has completed such inspection 829
1239+or study, each contract entered into on or after January 1, 830
1240+2025, for the sale of a residential unit must contain a copy of 831
1241+the most recent milest one inspection report or structural 832
1242+integrity reserve study, as applicable. 833
1243+ 3. If the association is not required to have a milestone 834
1244+inspection as described in ss. 553.899 and 718.112(2)(h) or a 835
1245+structural integrity reserve study as described in s. 836
1246+718.112(2)(g), each contract entered into on or after January 1, 837
1247+2025, for the sale of a residential unit must contain in 838
1248+conspicuous type a statement indicating that the association is 839
1249+not required to have a milestone inspection or a structural 840
1250+integrity reserve study, as applicable. 841
1251+ Section 10. Subsection (24) of section 719.103, Florida 842
1252+Statutes, is amended to read: 843
1253+ 719.103 Definitions. —As used in this chapter: 844
1254+ (24) "Structural integrity reserve study" means a study of 845
1255+the reserve funds required for future major repairs and 846
1256+replacement of the common areas based on a visual inspection of 847
1257+the common areas. A structural integrity reserve study may be 848
1258+performed by any person qualified to perform such study. 849
1259+However, the visual inspection portion of the st ructural 850
12601260
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1261+CS/HB 1395 2023
12621262
12631263
12641264
12651265 CODING: Words stricken are deletions; words underlined are additions.
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12681268 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
12691269
12701270
12711271
1272-(d) is added to subsection (1) of that section, to read: 851
1273- 718.1255 Alternative dispute resolution; mediation; 852
1274-nonbinding arbitration; applicability. — 853
1275- (1) DEFINITIONS.—As used in this section, the term 854
1276-"dispute" means any disagreement between two or more parties 855
1277-that involves: 856
1278- (d) The failure of a board of administration, when 857
1279-required by this chapte r or an association document, to: 858
1280- 1. Obtain the milestone inspection required under s. 859
1281-553.899. 860
1282- 2. Obtain a structural integrity reserve study required 861
1283-under s. 718.112(2)(g). 862
1284- 3. Fund reserves as required for an item identified in s. 863
1285-718.112(2)(g). 864
1286- 4. Make or provide necessary maintenance or repairs to 865
1287-condominium property as recommended by a milestone inspection or 866
1288-a structural integrity reserve study. 867
1289- 868
1290-"Dispute" does not include any disagreement that primarily 869
1291-involves: title to any unit or common element; the 870
1292-interpretation or enforcement of any warranty; the levy of a fee 871
1293-or assessment, or the collection of an assessment levied against 872
1294-a party; the eviction or other removal of a tenant from a unit; 873
1295-alleged breaches of fiduciary duty by one or mor e directors; or 874
1296-claims for damages to a unit based upon the alleged failure of 875
1272+integrity reserve study must be performed by an engineer 851
1273+licensed under chapter 471 , a general contractor licensed under 852
1274+chapter 489 with at least 5 years' experience building or 853
1275+constructing threshold buildings as defined in s. 553.71; a 854
1276+building code administrator or building code inspector licensed 855
1277+under part XII of chapter 468 with at least 5 years' experience 856
1278+inspecting threshold buildings as defined in s. 553.71; or an 857
1279+architect licensed under chapter 481. At a minimum, a structural 858
1280+integrity reserve study must identify the common areas being 859
1281+visually inspected, state the estimated remaining useful life 860
1282+and the estimated replacement cost or deferred maintenance 861
1283+expense of the common areas being visually inspected, and 862
1284+provide a recommended ann ual reserve amount that achieves the 863
1285+estimated replacement cost or deferred maintenance expense of 864
1286+each common area being visually inspected by the end of the 865
1287+estimated remaining useful life of each common area. 866
1288+ Section 11. Paragraphs (j), (k), and (l) of subsection (1) 867
1289+of section 719.106, Florida Statutes, are amended to read: 868
1290+ 719.106 Bylaws; cooperative ownership. — 869
1291+ (1) MANDATORY PROVISIONS. —The bylaws or other cooperative 870
1292+documents shall provide for the following, and if they do not, 871
1293+they shall be deemed to include the following: 872
1294+ (j) Annual budget.— 873
1295+ 1. The proposed annual budget of common expenses must be 874
1296+detailed and must show the amounts budgeted by accounts and 875
12971297
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13001300
13011301
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13051305 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
13061306
13071307
13081308
1309-the association to maintain the common elements or condominium 876
1310-property. 877
1311- (5) PRESUIT MEDIATION. —In lieu of the initiation of 878
1312-nonbinding arbitration as provided in subsections (1)-(4), a 879
1313-party may submit a dispute to presuit mediation in accordance 880
1314-with s. 720.311; however, election and recall disputes are not 881
1315-eligible for mediation and such disputes must be arbitrated by 882
1316-the division or filed in a court of competent jurisdictio n. 883
1317-Disputes identified in paragraph (1)(d) are not subject to 884
1318-nonbinding arbitration under subsection (4) and must be 885
1319-submitted to presuit mediation in accordance with s. 720.311. 886
1320- Section 8. Subsection (1) of section 718.113, Florida 887
1321-Statutes, is amended to read: 888
1322- 718.113 Maintenance; limitation upon improvement; display 889
1323-of flag; hurricane shutters and protection; display of religious 890
1324-decorations.— 891
1325- (1) Maintenance of the common elements is the 892
1326-responsibility of the association , except when responsibi lity 893
1327-for the maintenance of limited common elements is assigned to 894
1328-the unit owners by the declaration. The association shall 895
1329-provide for the maintenance, repair, and replacement of the 896
1330-condominium property for which it bears responsibility pursuant 897
1331-to the declaration of condominium. After turnover of control of 898
1332-the association to the unit owners, the association must perform 899
1333-any required maintenance identified by the developer pursuant to 900
1309+expense classifications, including, if applicable, but not 876
1310+limited to, those expe nses listed in s. 719.504(20). The board 877
1311+of administration shall adopt the annual budget at least 14 days 878
1312+before the start of the association's fiscal year. In the event 879
1313+that the board fails to timely adopt the annual budget a second 880
1314+time, it is deemed a m inor violation and the prior year's budget 881
1315+shall continue in effect until a new budget is adopted. 882
1316+ 2. In addition to annual operating expenses, the budget 883
1317+must include reserve accounts for capital expenditures and 884
1318+deferred maintenance. These accounts mus t include, but are not 885
1319+be limited to, roof replacement, building painting, and pavement 886
1320+resurfacing, regardless of the amount of deferred maintenance 887
1321+expense or replacement cost, and for any other items for which 888
1322+the deferred maintenance expense or replace ment cost exceeds 889
1323+$10,000, and those items listed in paragraph (k) that will 890
1324+require maintenance, repair, or replacement within the next 25 891
1325+years. The amount to be reserved for an item is determined by 892
1326+the association's most recent structural integrity res erve study 893
1327+that must be completed as provided in paragraph (k) by December 894
1328+31, 2024. If the amount to be reserved for an item is not in the 895
1329+association's initial or most recent structural integrity 896
1330+reserve study or the association has not completed a struc tural 897
1331+integrity reserve study, the amount must be computed by means of 898
1332+a formula which is based upon estimated remaining useful life 899
1333+and estimated replacement cost or deferred maintenance expense 900
13341334
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13371337
13381338
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13421342 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
13431343
13441344
13451345
1346-s. 718.301(4)(p) and (q) until the association obtains new 901
1347-maintenance protocols from a licensed engineer or architect or a 902
1348-person certified as a reserve specialist or professional reserve 903
1349-analyst by the Community Associations Institute or the 904
1350-Association of Professional Reserve Analysts . The declaration 905
1351-may provide that certain limited common elements shall be 906
1352-maintained by those entitled to use the limited common elements 907
1353-or that the association shall provide the maintenance, either as 908
1354-a common expense or with the cost shared only by those entitled 909
1355-to use the limited commo n elements. If the maintenance is to be 910
1356-by the association at the expense of only those entitled to use 911
1357-the limited common elements, the declaration shall describe in 912
1358-detail the method of apportioning such costs among those 913
1359-entitled to use the limited comm on elements, and the association 914
1360-may use the provisions of s. 718.116 to enforce payment of the 915
1361-shares of such costs by the unit owners entitled to use the 916
1362-limited common elements. 917
1363- Section 9. Present paragraphs (q) and (r) of subsection 918
1364-(4) of section 718.301, Florida Statutes, are redesignated as 919
1365-paragraphs (r) and (s), respectively, paragraph (p) of that 920
1366-subsection is amended, and a new paragraph (q) is added to that 921
1367-subsection, to read: 922
1368- 718.301 Transfer of association control; claims of defect 923
1369-by association.— 924
1370- (4) At the time that unit owners other than the developer 925
1346+of the reserve item. However, any item with a remaining usef ul 901
1347+life greater than 25 years is not required to be included in the 902
1348+study. If an association is required to complete a structural 903
1349+integrity reserve study, the association's budget must maintain 904
1350+reserves, in the amount recommended in the association's most 905
1351+recent structural integrity reserve study, for the items listed 906
1352+in paragraph (k). The association may adjust replacement reserve 907
1353+assessments annually to take into account any changes in 908
1354+estimates or extension of the useful life of a reserve item 909
1355+caused by deferred maintenance. The members of a unit -owner-910
1356+controlled association may determine, at a duly called meeting 911
1357+of the association, for a fiscal year to provide no reserves or 912
1358+reserves less adequate than required by this subsection. Before 913
1359+turnover of control of an association by a developer to unit 914
1360+owners other than a developer under s. 719.301, the developer -915
1361+controlled association may not vote to waive the reserves or 916
1362+reduce funding of the reserves. Effective December 31, 2024, a 917
1363+unit-owner-controlled association that is required to complete a 918
1364+structural integrity reserve study may not determine to provide 919
1365+no reserves or reserves less adequate than required by this 920
1366+paragraph for items listed in paragraph (k). If a meeting of the 921
1367+unit owners has been calle d to determine to provide no reserves, 922
1368+or reserves less adequate than required, and such result is not 923
1369+attained or a quorum is not attained, the reserves as included 924
1370+in the budget shall go into effect. 925
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13791379 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
13801380
13811381
13821382
1383-elect a majority of the members of the board of administration 926
1384-of an association, the developer shall relinquish control of the 927
1385-association, and the unit owners shall accept control. 928
1386-Simultaneously, or for the purposes of paragraph (c) not more 929
1387-than 90 days thereafter, the developer shall deliver to the 930
1388-association, at the developer's expense, all property of the 931
1389-unit owners and of the association which is held or controlled 932
1390-by the developer, including, but not limited to, the following 933
1391-items, if applicable, as to each condominium operated by the 934
1392-association: 935
1393- (p) Notwithstanding when the certificate of occupancy was 936
1394-issued or the height of the building, a structural integrity 937
1395-reserve study a milestone inspection report in compliance with 938
1396-s. 718.112(2)(g) s. 553.899 included in the official records, 939
1397-under seal of a licensed an architect or engineer authorized to 940
1398-practice in this state or a person certified as a reserve 941
1399-specialist or professional reserve analyst by the Community 942
1400-Associations Institute or the Association of Professional 943
1401-Reserve Analysts, and attesting to required maintenance, 944
1402-condition, useful life, and replacement costs of the following 945
1403-applicable condominium property com prising a turnover inspection 946
1404-report: 947
1405- 1. Roof. 948
1406- 2. Structure, including load -bearing walls and primary 949
1407-structural members and primary structural systems as those terms 950
1383+ 3. Reserve funds and any interest accruing thereon s hall 926
1384+remain in the reserve account or accounts, and shall be used 927
1385+only for authorized reserve expenditures unless their use for 928
1386+other purposes is approved in advance by a vote of the majority 929
1387+of the voting interests, voting in person or by limited proxy at 930
1388+a duly called meeting of the association. Before turnover of 931
1389+control of an association by a developer to unit owners other 932
1390+than the developer under s. 719.301, the developer may not vote 933
1391+to use reserves for purposes other than that for which they were 934
1392+intended. Effective December 31, 2024, members of a unit -owner-935
1393+controlled association that is required to complete a structural 936
1394+integrity reserve study may not vote to use reserve funds, or 937
1395+any interest accruing thereon, that are reserved for items 938
1396+listed in paragraph (k) for purposes other than their intended 939
1397+purpose. 940
1398+ (k) Structural integrity reserve study. — 941
1399+ 1. An association must have a structural integrity reserve 942
1400+study completed at least every 10 years for each building on the 943
1401+cooperative property that is three stories or higher in height 944
1402+that includes, at a minimum, a study of the following items as 945
1403+related to the structural integrity and safety of the building: 946
1404+ a. Roof. 947
1405+ b. Load-bearing walls or other primary structural members. 948
1406+ c. Floor. 949
1407+ d. Foundation. 950
14081408
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14161416 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
14171417
14181418
14191419
1420-are defined in s. 627.706 s. 627.706. 951
1421- 3. Fireproofing and fire protection systems. 952
1422- 4. Plumbing Elevators. 953
1423- 5. Electrical systems Heating and cooling systems . 954
1424- 6. Waterproofing and exterior painting Plumbing. 955
1425- 7. Windows and exterior doors Electrical systems. 956
1426- 8. Swimming pool or spa and equipment. 957
1427- 9. Seawalls. 958
1428- 10. Pavement and parking areas. 959
1429- 11. Drainage systems. 960
1430- 12. Painting. 961
1431- 13. Irrigation systems. 962
1432- 14. Waterproofing. 963
1433- (q) Notwithstanding when the certificate of occupancy was 964
1434-issued or the height of the building, a turnover inspection 965
1435-report included in the official records, under seal of a 966
1436-licensed architect or engineer authorized to practice in this 967
1437-state or a person certified as a reserve specialist or 968
1438-professional reserve analyst by the Community Associations 969
1439-Institute or the Association of Professional Reserve An alysts, 970
1440-and attesting to required maintenance, condition, useful life, 971
1441-and replacement costs of the following applicable condominium 972
1442-property comprising a turnover inspection report: 973
1443- 1. Elevators. 974
1444- 2. Heating and cooling systems. 975
1420+ e. Fireproofing and fire protection systems. 951
1421+ f. Plumbing. 952
1422+ g. Electrical systems. 953
1423+ h. Waterproofing and exterior painting. 954
1424+ i. Windows and exterior doors. 955
1425+ j. Any other item that has a deferred maintenance expense 956
1426+or replacement cost that exceeds $10,000 and the failure to 957
1427+replace or maintain such item negatively affects the items 958
1428+listed in sub-subparagraphs a.-i., as determined by the licensed 959
1429+engineer, general contractor, building code administrator, 960
1430+building code inspector, or architect performing the visual 961
1431+inspection portion of the structural integrity reserve study. 962
1432+ 2. Before a developer turns over control of an association 963
1433+to unit owners other than the developer, the developer must have 964
1434+a structural integrity reserve study complete d for each building 965
1435+on the cooperative property that is three stories or higher in 966
1436+height. 967
1437+ 3. Associations that existing on or before July 1, 2022, 968
1438+which are controlled by unit owners other than the developer, 969
1439+must have a structural integrity reserve stu dy completed by 970
1440+December 31, 2024, for each building on the cooperative property 971
1441+that is three stories or higher in height. An association that 972
1442+is required to complete a milestone inspection on or before 973
1443+December 31, 2026, in accordance with s. 553.899, ma y complete 974
1444+the structural integrity reserve study simultaneously with the 975
14451445
1446-CS/CS/HB 1395 2023
1446+CS/HB 1395 2023
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14481448
14491449
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14541454
14551455
14561456
1457- 3. Swimming pool or spa and equipment. 976
1458- 4. Seawalls. 977
1459- 5. Pavement and parking areas. 978
1460- 6. Drainage systems. 979
1461- 7. Irrigation systems. 980
1462- Section 10. Paragraph (b) of subsection (1) and paragraph 981
1463-(a) of subsection (2) of section 718.503, Florida Statutes, are 982
1464-amended, and paragraph (d) is added to subsection (1) and 983
1465-paragraph (e) is added to subsection (2) of that section, to 984
1466-read: 985
1467- 718.503 Developer disclosure prior to sale; nondeveloper 986
1468-unit owner disclosure prior to sale; voidability. — 987
1469- (1) DEVELOPER DISCLOSURE. — 988
1470- (b) Copies of documents to be furnished to prospective 989
1471-buyer or lessee.—Until such time as the developer has furnished 990
1472-the documents listed below to a person who has entered into a 991
1473-contract to purchase a residential unit or lease it for more 992
1474-than 5 years, the contract may be voided by that person, 993
1475-entitling the person to a refund of any deposit together with 994
1476-interest thereon as provided in s. 718.202. The contract may be 995
1477-terminated by written notice from the proposed buyer or lessee 996
1478-delivered to the developer wi thin 15 days after the buyer or 997
1479-lessee receives all of the documents required by this section. 998
1480-The developer may not close for 15 days after the execution of 999
1481-the agreement and delivery of the documents to the buyer as 1000
1457+milestone inspection. In no event may the structural integrity 976
1458+reserve study be completed after December 31, 2026. 977
1459+ 4. If an association fails to complete a structural 978
1460+integrity reserve study pursuant to this paragraph, such failure 979
1461+is a breach of an officer's and director's fiduciary 980
1462+relationship to the unit owners under s. 719.104(8). 981
1463+ 5. If the milestone inspection required by s. 553.899, or 982
1464+an inspection completed for a similar local requirement, was 983
1465+performed within the past 5 years and meets the requirements of 984
1466+this paragraph, such inspection may be used in place of the 985
1467+visual inspection portion of the structural integrity reserve 986
1468+study. 987
1469+ (l) Mandatory milestone inspections. —If an association is 988
1470+required to have a milestone inspection performed pursuant to s. 989
1471+553.899, the association must arrange for the milestone 990
1472+inspection to be performed and is responsible for ensuring 991
1473+compliance with the requirements of s. 553.899. The asso ciation 992
1474+is responsible for all costs associated with the inspection. If 993
1475+the officers or directors of an association willfully and 994
1476+knowingly fail to have a milestone inspection performed pursuant 995
1477+to s. 553.899, such failure is a breach of the officers' and 996
1478+directors' fiduciary relationship to the unit owners under s. 997
1479+719.104(8)(a). Within 60 days after Upon completion of a phase 998
1480+one or phase two milestone inspection and receipt of the 999
1481+inspector-prepared summary of the milestone inspection report 1000
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14921492
14931493
1494-evidenced by a signed receipt for docu ments unless the buyer is 1001
1495-informed in the 15-day voidability period and agrees to close 1002
1496-before the expiration of the 15 days. The developer shall retain 1003
1497-in his or her records a separate agreement signed by the buyer 1004
1498-as proof of the buyer's agreement to clo se before the expiration 1005
1499-of the voidability period. The developer must retain such proof 1006
1500-for a period of 5 years after the date of the closing of the 1007
1501-transaction. The documents to be delivered to the prospective 1008
1502-buyer are the prospectus or disclosure state ment with all 1009
1503-exhibits, if the development is subject to s. 718.504, or, if 1010
1504-not, then copies of the following which are applicable: 1011
1505- 1. The question and answer sheet described in s. 718.504, 1012
1506-and declaration of condominium, or the proposed declaration if 1013
1507-the declaration has not been recorded, which shall include the 1014
1508-certificate of a surveyor approximately representing the 1015
1509-locations required by s. 718.104. 1016
1510- 2. The documents creating the association. 1017
1511- 3. The bylaws. 1018
1512- 4. The ground lease or other underlying lease of the 1019
1513-condominium. 1020
1514- 5. The management contract, maintenance contract, and 1021
1515-other contracts for management of the association and operation 1022
1516-of the condominium and facilities used by the unit owners having 1023
1517-a service term in excess of 1 year, and any management contracts 1024
1518-that are renewable. 1025
1494+from any phase one or phase two milestone inspection the 1001
1495+architect or engineer who performed the inspection , the 1002
1496+association must distribute a copy of the inspector -prepared 1003
1497+summary of the inspection report to each unit owner, regardless 1004
1498+of the findings or recommendat ions in the report, by United 1005
1499+States mail or personal delivery and by electronic transmission 1006
1500+to unit owners who previously consented to receive notice by 1007
1501+electronic transmission; must post a copy of the inspector -1008
1502+prepared summary in a conspicuous place on the cooperative 1009
1503+property; and must publish the full report and inspector -1010
1504+prepared summary on the association's website, if the 1011
1505+association is required to have a website. If the visual 1012
1506+inspection portion of the structural integrity reserve study 1013
1507+required under paragraph (k) was performed within the past 5 1014
1508+years and meets the requirements for a milestone inspection in 1015
1509+s. 553.899, such inspection may be used in place of the phase 1016
1510+one milestone inspection. 1017
1511+ Section 12. Section 719.132, Florida Statutes, is created 1018
1512+to read: 1019
1513+ 719.132 Injunctive relief. — 1020
1514+ (1) A unit owner may institute an action in a court of 1021
1515+competent jurisdiction in which the cooperative is located to 1022
1516+seek injunctive relief against the association to: 1023
1517+ (a) Enforce compliance with mileston e inspection 1024
1518+requirements under s. 553.899 and structural integrity reserve 1025
15191519
1520-CS/CS/HB 1395 2023
1520+CS/HB 1395 2023
15211521
15221522
15231523
15241524 CODING: Words stricken are deletions; words underlined are additions.
1525-hb1395-02-c2
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15271527 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
15281528
15291529
15301530
1531- 6. The estimated operating budget for the condominium and 1026
1532-a schedule of expenses for each type of unit, including fees 1027
1533-assessed pursuant to s. 718.113(1) for the maintenance of 1028
1534-limited common elements where such c osts are shared only by 1029
1535-those entitled to use the limited common elements. 1030
1536- 7. The lease of recreational and other facilities that 1031
1537-will be used only by unit owners of the subject condominium. 1032
1538- 8. The lease of recreational and other common facilities 1033
1539-that will be used by unit owners in common with unit owners of 1034
1540-other condominiums. 1035
1541- 9. The form of unit lease if the offer is of a leasehold. 1036
1542- 10. Any declaration of servitude of properties serving the 1037
1543-condominium but not owned by unit owners or leased to th em or 1038
1544-the association. 1039
1545- 11. If the development is to be built in phases or if the 1040
1546-association is to manage more than one condominium, a 1041
1547-description of the plan of phase development or the arrangements 1042
1548-for the association to manage two or more condominiums . 1043
1549- 12. If the condominium is a conversion of existing 1044
1550-improvements, the statements and disclosure required by s. 1045
1551-718.616. 1046
1552- 13. The form of agreement for sale or lease of units. 1047
1553- 14. A copy of the floor plan of the unit and the plot plan 1048
1554-showing the location of the residential buildings and the 1049
1555-recreation and other common areas. 1050
1531+requirements under s. 719.106(1)(k). 1026
1532+ (b) Prevent irreparable injury to unit owners and the 1027
1533+association and to protect human health, safety, and welfare 1028
1534+caused or threatened by an y violation of the milestone 1029
1535+inspection requirements under s. 553.899 and structural 1030
1536+integrity reserve requirements under s. 719.106(1)(k). 1031
1537+ (2) The division may, in the name of the state, seek 1032
1538+injunctive relief in any court of competent jurisdiction in 1033
1539+which the cooperative is located to obtain relief against the 1034
1540+association to enforce compliance with milestone inspection 1035
1541+requirements under s. 553.899. A proceeding commenced under this 1036
1542+subsection is in addition to, and not in lieu of, any other 1037
1543+penalty or remedy under this chapter. 1038
1544+ (3) Any local authority having jurisdiction to enforce 1039
1545+milestone inspection requirements may seek injunctive relief 1040
1546+from any court of competent jurisdiction in which the 1041
1547+cooperative is located against the association to enforce 1042
1548+compliance with milestone inspection requirements under s. 1043
1549+553.899, upon an affidavit of the local authority having 1044
1550+jurisdiction specifying the manner in which the cooperative does 1045
1551+not conform to the requirements of s. 553.899. 1046
1552+ Section 13. Paragraph (p) of subsection (4) of section 1047
1553+719.301, Florida Statutes, is amended to read: 1048
1554+ 719.301 Transfer of association control. — 1049
1555+ (4) When unit owners other than the developer elect a 1050
15561556
1557-CS/CS/HB 1395 2023
1557+CS/HB 1395 2023
15581558
15591559
15601560
15611561 CODING: Words stricken are deletions; words underlined are additions.
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15641564 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
15651565
15661566
15671567
1568- 15. A copy of all covenants and restrictions that will 1051
1569-affect the use of the property and are not contained in the 1052
1570-foregoing. 1053
1571- 16. If the developer is required by state or local 1054
1572-authorities to obtain acceptance or approval of any dock or 1055
1573-marina facilities intended to serve the condominium, a copy of 1056
1574-any such acceptance or approval acquired by the time of filing 1057
1575-with the division under s. 718.502(1), or a statement that such 1058
1576-acceptance or approval has not been acquired or received. 1059
1577- 17. Evidence demonstrating that the developer has an 1060
1578-ownership, leasehold, or contractual interest in the land upon 1061
1579-which the condominium is to be developed. 1062
1580- 18. A copy of the inspector -prepared summary of the 1063
1581-milestone inspection report as described in ss. 553.899 and 1064
1582-718.112(2)(h) or a statement in conspicuous type indicating that 1065
1583-the required milestone inspection described in s. 553.899 has 1066
1584-not been completed or that a milestone inspection is not 1067
1585-required, as applicable ss. 553.899 and 718.301(4)(p) . 1068
1586- 19. A copy of the association's most recent structural 1069
1587-integrity reserve study , or a statement in conspicuous type 1070
1588-indicating that the association has not completed a required 1071
1589-structural integrity reserve study has not been completed or 1072
1590-that a structural integrity reserve study is not required, as 1073
1591-applicable. 1074
1592- 20. A copy of the turnover inspection report described in 1075
1568+majority of the members of the board of administration of an 1051
1569+association, the developer shall relinquish control of the 1052
1570+association, and the unit owners shall accept control. 1053
1571+Simultaneously, or for the purpose of paragraph (c) not more 1054
1572+than 90 days thereafter, the developer shall deliver to the 1055
1573+association, at the developer' s expense, all property of the 1056
1574+unit owners and of the association held or controlled by the 1057
1575+developer, including, but not limited to, the following items, 1058
1576+if applicable, as to each cooperative operated by the 1059
1577+association: 1060
1578+ (p) Notwithstanding when the cer tificate of occupancy was 1061
1579+issued or the height of the building, a milestone inspection 1062
1580+report in compliance with s. 553.899 included in the official 1063
1581+records, under seal of an architect or engineer or under 1064
1582+attestation of a general contractor, building code 1065
1583+administrator, or building code inspector authorized to practice 1066
1584+in this state indicating that such report complies with the 1067
1585+statutory requirements for the inspection , attesting to required 1068
1586+maintenance, condition, useful life, and replacement costs of 1069
1587+the following applicable cooperative property comprising a 1070
1588+turnover inspection report: 1071
1589+ 1. Roof. 1072
1590+ 2. Structure, including load -bearing walls and primary 1073
1591+structural members and primary structural systems as those terms 1074
1592+are defined in s. 627.706. 1075
15931593
1594-CS/CS/HB 1395 2023
1594+CS/HB 1395 2023
15951595
15961596
15971597
15981598 CODING: Words stricken are deletions; words underlined are additions.
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16011601 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
16021602
16031603
16041604
1605-s. 718.301(4)(p) and (q) or a statement in conspicuous type 1076
1606-indicating that a tu rnover inspection report has not been 1077
1607-completed, as applicable. 1078
1608- (d) Milestone inspection, turnover inspection report, or 1079
1609-structural integrity reserve study. —If the association is 1080
1610-required to have completed a milestone inspection as described 1081
1611-in s. 553.899, a turnover inspection report for a turnover 1082
1612-inspection performed on or after July 1, 2023, or a structural 1083
1613-integrity reserve study, and the association has not completed 1084
1614-the milestone inspection, the turnover inspection report, or the 1085
1615-structural integrity reserve study, each contract entered into 1086
1616-after December 31, 2024, for the sale of a residential unit must 1087
1617-contain in conspicuous type a statement indicating that the 1088
1618-association is required to have a milestone inspection, a 1089
1619-turnover inspection report, or a structural integrity reserve 1090
1620-study and has not completed such inspection, report, or study, 1091
1621-as applicable. If the association is not required to have a 1092
1622-milestone inspection as described in s. 553.899 or a structural 1093
1623-integrity reserve study, each contr act entered into after 1094
1624-December 31, 2024, for the sale of a residential unit must 1095
1625-contain in conspicuous type a statement indicating that the 1096
1626-association is not required to have a milestone inspection or a 1097
1627-structural integrity reserve study, as applicable. If the 1098
1628-association has completed a milestone inspection as described in 1099
1629-s. 553.899, a turnover inspection report for a turnover 1100
1605+ 3. Fireproofing and fire protection systems. 1076
1606+ 4. Elevators. 1077
1607+ 5. Heating and cooling systems. 1078
1608+ 6. Plumbing. 1079
1609+ 7. Electrical systems. 1080
1610+ 8. Swimming pool or spa and equipment. 1081
1611+ 9. Seawalls. 1082
1612+ 10. Pavement and parking areas. 1083
1613+ 11. Drainage systems. 1084
1614+ 12. Painting. 1085
1615+ 13. Irrigation systems. 1086
1616+ 14. Waterproofing. 1087
1617+ Section 14. Paragraph (b) of subsection (1) and paragraph 1088
1618+(a) of subsection (2) of section 719.503, Florida Statutes, are 1089
1619+amended, and paragraph (d) is added to subsection (1) and 1090
1620+paragraph (d) is added to subsection (2) of that section, to 1091
1621+read: 1092
1622+ 719.503 Disclosure prior to sale. — 1093
1623+ (1) DEVELOPER DISCLOSURE. — 1094
1624+ (b) Copies of documents to be furnished to prospective 1095
1625+buyer or lessee.—Until such time as the developer has furnished 1096
1626+the documents listed below t o a person who has entered into a 1097
1627+contract to purchase a unit or lease it for more than 5 years, 1098
1628+the contract may be voided by that person, entitling the person 1099
1629+to a refund of any deposit together with interest thereon as 1100
16301630
1631-CS/CS/HB 1395 2023
1631+CS/HB 1395 2023
16321632
16331633
16341634
16351635 CODING: Words stricken are deletions; words underlined are additions.
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16381638 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
16391639
16401640
16411641
1642-inspection performed on or after July 1, 2023, or a structural 1101
1643-integrity reserve study, each contract entered into after 1102
1644-December 31, 2024, for the sale of a residential unit must 1103
1645-contain in conspicuous type: 1104
1646- 1105
1647-THE BUYER HEREBY ACKNOWLEDGES THAT THE BUYER HAS BEEN 1106
1648-PROVIDED A CURRENT COPY OF THE INSPECTOR -PREPARED 1107
1649-SUMMARY OF THE MILESTONE INSPECTION REPORT AS 1108
1650-DESCRIBED IN SECTION 55 3.899, FLORIDA STATUTES, IF 1109
1651-APPLICABLE; A COPY OF THE TURNOVER INSPECTION REPORT 1110
1652-DESCRIBED IN SECTION 718.301(4)(p) AND (q), FLORIDA 1111
1653-STATUTES, IF APPLICABLE; AND A COPY OF THE 1112
1654-ASSOCIATION'S MOST RECENT STRUCTURAL INTEGRITY RESERVE 1113
1655-STUDY DESCRIBED IN SECTIO NS 718.103(26) AND 1114
1656-718.112(2)(g), FLORIDA STATUTES, IF APPLICABLE, MORE 1115
1657-THAN 15 DAYS, EXCLUDING SATURDAYS, SUNDAYS, AND LEGAL 1116
1658-HOLIDAYS, BEFORE THE EXECUTION OF THIS CONTRACT. 1117
1659- 1118
1660-THIS AGREEMENT IS VOIDABLE BY THE BUYER BY DELIVERING 1119
1661-WRITTEN NOTICE OF THE BUYE R'S INTENTION TO CANCEL 1120
1662-WITHIN 15 DAYS, EXCLUDING SATURDAYS, SUNDAYS, AND 1121
1663-LEGAL HOLIDAYS, AFTER THE DATE OF EXECUTION OF THIS 1122
1664-AGREEMENT BY THE BUYER AND THE BUYER'S RECEIPT OF A 1123
1665-CURRENT COPY OF THE INSPECTOR -PREPARED SUMMARY OF THE 1124
1666-MILESTONE INSPECTION REP ORT AS DESCRIBED IN SECTION 1125
1642+provided in s. 719.202. The contra ct may be terminated by 1101
1643+written notice from the proposed buyer or lessee delivered to 1102
1644+the developer within 15 days after the buyer or lessee receives 1103
1645+all of the documents required by this section. The developer may 1104
1646+not close for 15 days after the execution of the agreement and 1105
1647+delivery of the documents to the buyer as evidenced by a receipt 1106
1648+for documents signed by the buyer unless the buyer is informed 1107
1649+in the 15-day voidability period and agrees to close before the 1108
1650+expiration of the 15 days. The developer s hall retain in his or 1109
1651+her records a separate signed agreement as proof of the buyer's 1110
1652+agreement to close before the expiration of the voidability 1111
1653+period. The developer must retain such proof for a period of 5 1112
1654+years after the date of the closing transaction . The documents 1113
1655+to be delivered to the prospective buyer are the prospectus or 1114
1656+disclosure statement with all exhibits, if the development is 1115
1657+subject to s. 719.504, or, if not, then copies of the following 1116
1658+which are applicable: 1117
1659+ 1. The question and answer sheet described in s. 719.504, 1118
1660+and cooperative documents, or the proposed cooperative documents 1119
1661+if the documents have not been recorded, which shall include the 1120
1662+certificate of a surveyor approximately representing the 1121
1663+locations required by s. 719.104. 1122
1664+ 2. The documents creating the association. 1123
1665+ 3. The bylaws. 1124
1666+ 4. The ground lease or other underlying lease of the 1125
16671667
1668-CS/CS/HB 1395 2023
1668+CS/HB 1395 2023
16691669
16701670
16711671
16721672 CODING: Words stricken are deletions; words underlined are additions.
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16751675 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
16761676
16771677
16781678
1679-553.899, FLORIDA STATUTES, IF APPLICABLE; A COPY OF 1126
1680-THE TURNOVER INSPECTION REPORT DESCRIBED IN SECTION 1127
1681-718.301(4)(p) AND (q), FLORIDA STATUTES, IF 1128
1682-APPLICABLE; AND A COPY OF THE ASSOCIATION'S MOST 1129
1683-RECENT STRUCTURAL INTEGRITY RES ERVE STUDY DESCRIBED IN 1130
1684-SECTIONS 718.103(26) AND 718.112(2)(g), FLORIDA 1131
1685-STATUTES, IF APPLICABLE. ANY PURPORTED WAIVER OF THESE 1132
1686-VOIDABILITY RIGHTS SHALL BE OF NO EFFECT. THE BUYER 1133
1687-MAY EXTEND THE TIME FOR CLOSING FOR UP TO 15 DAYS, 1134
1688-EXCLUDING SATURDAYS, SUNDA YS, AND LEGAL HOLIDAYS, 1135
1689-AFTER THE BUYER RECEIVES A CURRENT COPY OF THE 1136
1690-INSPECTOR-PREPARED SUMMARY OF THE MILESTONE INSPECTION 1137
1691-REPORT AS DESCRIBED IN SECTION 553.899, FLORIDA 1138
1692-STATUTES; A COPY OF THE TURNOVER INSPECTION REPORT 1139
1693-DESCRIBED IN SECTION 718.301(4) (p) AND (q), FLORIDA 1140
1694-STATUTES; OR A COPY OF THE ASSOCIATION'S MOST RECENT 1141
1695-STRUCTURAL INTEGRITY RESERVE STUDY DESCRIBED IN 1142
1696-SECTIONS 718.103(26) AND 718.112(2)(g), FLORIDA 1143
1697-STATUTES, IF REQUESTED IN WRITING. THE BUYER'S RIGHT 1144
1698-TO VOID THIS AGREEMENT TERMINATES AT CLOSING. 1145
1699- 1146
1700-A contract that does not conform to the requirements of this 1147
1701-paragraph is voidable at the option of the purchaser before 1148
1702-closing. 1149
1703- (2) NONDEVELOPER DISCLOSURE. — 1150
1679+cooperative. 1126
1680+ 5. The management contract, maintenance contract, and 1127
1681+other contracts for management of the association and operation 1128
1682+of the cooperative and facilities used by the unit owners having 1129
1683+a service term in excess of 1 year, and any management contracts 1130
1684+that are renewable. 1131
1685+ 6. The estimated operating budget for the cooperative and 1132
1686+a schedule of expenses for each type of unit, including fees 1133
1687+assessed to a shareholder who has exclusive use of limited 1134
1688+common areas, where such costs are shared only by those entitled 1135
1689+to use such limited common areas. 1136
1690+ 7. The lease of recreational and other facilities that 1137
1691+will be used only by unit owners of the subject cooperative. 1138
1692+ 8. The lease of recreational and other common areas that 1139
1693+will be used by unit owners in common with unit owners of other 1140
1694+cooperatives. 1141
1695+ 9. The form of unit lease if the offer is of a leasehold. 1142
1696+ 10. Any declaration of servitude of properties serving the 1143
1697+cooperative but not owned by unit owners or leased to them or 1144
1698+the association. 1145
1699+ 11. If the development is to be built in phases or if the 1146
1700+association is to manage more than one cooperative, a 1147
1701+description of the plan of phase dev elopment or the arrangements 1148
1702+for the association to manage two or more cooperatives. 1149
1703+ 12. If the cooperative is a conversion of existing 1150
17041704
1705-CS/CS/HB 1395 2023
1705+CS/HB 1395 2023
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17071707
17081708
17091709 CODING: Words stricken are deletions; words underlined are additions.
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17121712 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
17131713
17141714
17151715
1716- (a) Each unit owner who is not a developer as defined by 1151
1717-this chapter must com ply with this subsection before the sale of 1152
1718-his or her unit. Each prospective purchaser who has entered into 1153
1719-a contract for the purchase of a condominium unit is entitled, 1154
1720-at the seller's expense, to a current copy of all of the 1155
1721-following: 1156
1722- 1. The declaration of condominium. 1157
1723- 2. Articles of incorporation of the association. 1158
1724- 3. Bylaws and rules of the association. 1159
1725- 4. Financial information required by s. 718.111. 1160
1726- 5. A copy of the inspector -prepared summary of the 1161
1727-milestone inspection report as describ ed in s. 553.899 ss. 1162
1728-553.899 and 718.301(4)(p) , if applicable. 1163
1729- 6. The association's most recent structural integrity 1164
1730-reserve study or a statement that the association has not 1165
1731-completed a structural integrity reserve study. 1166
1732- 7. A copy of the inspection r eport described in s. 1167
1733-718.301(4)(p) and (q) for a turnover inspection performed on or 1168
1734-after July 1, 2023. 1169
1735- 8. The document entitled "Frequently Asked Questions and 1170
1736-Answers" required by s. 718.504. 1171
1737- (e) If the association is required to have completed a 1172
1738-milestone inspection as described in s. 553.899, a turnover 1173
1739-inspection report for a turnover inspection performed on or 1174
1740-after July 1, 2023, or a structural integrity reserve study, and 1175
1716+improvements, the statements and disclosure required by s. 1151
1717+719.616. 1152
1718+ 13. The form of agreement for sale or lease of u nits. 1153
1719+ 14. A copy of the floor plan of the unit and the plot plan 1154
1720+showing the location of the residential buildings and the 1155
1721+recreation and other common areas. 1156
1722+ 15. A copy of all covenants and restrictions that will 1157
1723+affect the use of the property and are not contained in the 1158
1724+foregoing. 1159
1725+ 16. If the developer is required by state or local 1160
1726+authorities to obtain acceptance or approval of any dock or 1161
1727+marina facilities intended to serve the cooperative, a copy of 1162
1728+any such acceptance or approval acquired by the time of filing 1163
1729+with the division pursuant to s. 719.502(1) or a statement that 1164
1730+such acceptance or approval has not been acquired or received. 1165
1731+ 17. Evidence demonstrating that the developer has an 1166
1732+ownership, leasehold, or contractual interest in the land u pon 1167
1733+which the cooperative is to be developed. 1168
1734+ 18. A copy of the inspector -prepared summary of the 1169
1735+milestone inspection report as described in ss. 553.899 and 1170
1736+719.106(1)(l) ss. 553.899 and 719.301(4)(p) , if applicable. 1171
1737+ 19. A copy of the association's mo st recent structural 1172
1738+integrity reserve study or a statement that the association has 1173
1739+not completed a structural integrity reserve study. 1174
1740+ (d) Milestone inspection or structural integrity reserve 1175
17411741
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1742+CS/HB 1395 2023
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17441744
17451745
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17491749 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
17501750
17511751
17521752
1753-the association has not completed the milestone inspection, the 1176
1754-turnover inspection report, or the structural integrity reserve 1177
1755-study, each contract entered into after December 31, 2024, for 1178
1756-the sale of a residential unit must contain in conspicuous type 1179
1757-a statement indicating that the association is required to have 1180
1758-a milestone inspection, a turnover inspection report, or a 1181
1759-structural integrity reserve study and has not completed such 1182
1760-inspection, report, or study, as applicable. If the association 1183
1761-is not required to have a milestone inspection as described in 1184
1762-s. 553.899 or a structural integrity reserve study, each 1185
1763-contract entered into after December 31, 2024, for the sale of a 1186
1764-residential unit must contain in conspicuous type a statement 1187
1765-indicating that the association is not required to have a 1188
1766-milestone inspection or a struc tural integrity reserve study, as 1189
1767-applicable. If the association has completed a milestone 1190
1768-inspection as described in s. 553.899, a turnover inspection 1191
1769-report for a turnover inspection performed on or after July 1, 1192
1770-2023, or a structural integrity reserve s tudy, each contract 1193
1771-entered into after December 31, 2024, for the resale of a 1194
1772-residential unit must contain in conspicuous type: 1195
1773- 1196
1774-THE BUYER HEREBY ACKNOWLEDGES THAT THE BUYER HAS BEEN 1197
1775-PROVIDED A CURRENT COPY OF THE INSPECTOR -PREPARED 1198
1776-SUMMARY OF THE MILESTO NE INSPECTION REPORT AS 1199
1777-DESCRIBED IN SECTION 553.899, FLORIDA STATUTES, IF 1200
1753+study.— 1176
1754+ 1. If the association is required to have a milest one 1177
1755+inspection as described in ss. 553.899 and 719.106(1)(l) or a 1178
1756+structural integrity reserve study as described in s. 1179
1757+719.106(1)(k), and the association has not completed the 1180
1758+milestone inspection or structural integrity reserve study, each 1181
1759+contract entered into on or after January 1, 2025, for the sale 1182
1760+of a residential unit must contain in conspicuous type a 1183
1761+statement indicating that the association is required to have a 1184
1762+milestone inspection or a structural integrity reserve study and 1185
1763+the association has failed to complete such inspection or study, 1186
1764+as applicable. 1187
1765+ 2. If the association is required to have a milestone 1188
1766+inspection as described in ss. 553.899 and 719.106(1)(l) or a 1189
1767+structural integrity reserve study as described in s. 1190
1768+719.106(1)(k), and the a ssociation has completed such inspection 1191
1769+or study, each contract entered into on or after January 1, 1192
1770+2025, for the sale of a residential unit must contain a copy of 1193
1771+the most recent milestone inspection report or structural 1194
1772+integrity reserve study, as appli cable. 1195
1773+ 3. If the association is not required to have a milestone 1196
1774+inspection as described in ss. 553.899 and 719.106(1)(l) or a 1197
1775+structural integrity reserve study as described in s. 1198
1776+719.106(1)(k), each contract entered into on or after January 1, 1199
1777+2025, for the sale of a residential unit must contain in 1200
17781778
1779-CS/CS/HB 1395 2023
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17861786 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
17871787
17881788
17891789
1790-APPLICABLE; A COPY OF THE TURNOVER INSPECTION REPORT 1201
1791-DESCRIBED IN SECTION 718.301(4)(p) AND (q), FLORIDA 1202
1792-STATUTES, IF APPLICABLE; AND A COPY OF THE 1203
1793-ASSOCIATION'S MOST RECENT STRUCTU RAL INTEGRITY RESERVE 1204
1794-STUDY DESCRIBED IN SECTIONS 718.103(26) AND 1205
1795-718.112(2)(g), FLORIDA STATUTES, IF APPLICABLE, MORE 1206
1796-THAN 3 DAYS, EXCLUDING SATURDAYS, SUNDAYS, AND LEGAL 1207
1797-HOLIDAYS, BEFORE EXECUTION OF THIS CONTRACT. 1208
1798- 1209
1799-THIS AGREEMENT IS VOIDABLE BY THE BUYE R BY DELIVERING 1210
1800-WRITTEN NOTICE OF THE BUYER'S INTENTION TO CANCEL 1211
1801-WITHIN 3 DAYS, EXCLUDING SATURDAYS, SUNDAYS, AND LEGAL 1212
1802-HOLIDAYS, AFTER THE DATE OF EXECUTION OF THIS 1213
1803-AGREEMENT BY THE BUYER AND THE BUYER'S RECEIPT OF A 1214
1804-CURRENT COPY OF THE INSPECTOR -PREPARED SUMMARY OF THE 1215
1805-MILESTONE INSPECTION REPORT AS DESCRIBED IN SECTION 1216
1806-553.899, FLORIDA STATUTES, IF APPLICABLE; A COPY OF 1217
1807-THE TURNOVER INSPECTION REPORT DESCRIBED IN SECTION 1218
1808-718.301(4)(p) AND (q), FLORIDA STATUTES, IF 1219
1809-APPLICABLE; AND A COPY OF THE ASSOCIATI ON'S MOST 1220
1810-RECENT STRUCTURAL INTEGRITY RESERVE STUDY DESCRIBED IN 1221
1811-SECTIONS 718.103(26) AND 718.112(2)(g), FLORIDA 1222
1812-STATUTES, IF APPLICABLE. ANY PURPORTED WAIVER OF THESE 1223
1813-VOIDABILITY RIGHTS SHALL BE OF NO EFFECT. THE BUYER 1224
1814-MAY EXTEND THE TIME FOR CLOSING FOR UP TO 3 DAYS, 1225
1790+conspicuous type a statement indicating that the association is 1201
1791+not required to have a milestone inspection or a structural 1202
1792+integrity reserve study, as applicable. 1203
1793+ (2) NONDEVELOPER DISCLOSURE. — 1204
1794+ (a) Each unit owner who is not a developer as defined by 1205
1795+this chapter must comply with this subsection before the sale of 1206
1796+his or her interest in the association. Each prospective 1207
1797+purchaser who has entered into a contract for the purchase of an 1208
1798+interest in a coopera tive is entitled, at the seller's expense, 1209
1799+to a current copy of all of the following: 1210
1800+ 1. The articles of incorporation of the association. 1211
1801+ 2. The bylaws and rules of the association. 1212
1802+ 3. A copy of the question and answer sheet as provided in 1213
1803+s. 719.504. 1214
1804+ 4. A copy of the inspector -prepared summary of the 1215
1805+milestone inspection report as described in ss. 553.899 and 1216
1806+719.106(1)(l) ss. 553.899 and 719.301(4)(p) , if applicable. 1217
1807+ 5. A copy of the association's most recent structural 1218
1808+integrity reserve study or a statement that the association has 1219
1809+not completed a structural integrity reserve study. 1220
1810+ (d)1. If the association is required to have a milestone 1221
1811+inspection as described in ss. 553.899 and 719.106(1)(l) or a 1222
1812+structural integrity reserve study as descr ibed in s. 1223
1813+719.106(1)(k), and the association has not completed the 1224
1814+milestone inspection or structural integrity reserve study, each 1225
18151815
1816-CS/CS/HB 1395 2023
1816+CS/HB 1395 2023
18171817
18181818
18191819
18201820 CODING: Words stricken are deletions; words underlined are additions.
1821-hb1395-02-c2
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18231823 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
18241824
18251825
18261826
1827-EXCLUDING SATURDAYS, SUNDAYS, AND LEGAL HOLIDAYS, 1226
1828-AFTER THE BUYER RECEIVES A CURRENT COPY OF THE 1227
1829-INSPECTOR-PREPARED SUMMARY OF THE MILESTONE INSPECTION 1228
1830-REPORT AS DESCRIBED IN SECTION 553.899, FLORIDA 1229
1831-STATUTES; A COPY OF THE TURNOVER INSPECTIO N REPORT 1230
1832-DESCRIBED IN SECTION 718.301(4)(p) AND (q), FLORIDA 1231
1833-STATUTES; OR A COPY OF THE ASSOCIATION'S MOST RECENT 1232
1834-STRUCTURAL INTEGRITY RESERVE STUDY DESCRIBED IN 1233
1835-SECTIONS 718.103(26) AND 718.112(2)(g), FLORIDA 1234
1836-STATUTES, IF REQUESTED IN WRITING. THE BUYER'S RIGHT 1235
1837-TO VOID THIS AGREEMENT TERMINATES AT CLOSING. 1236
1838- 1237
1839-A contract that does not conform to the requirements of this 1238
1840-paragraph is voidable at the option of the purchaser before 1239
1841-closing. 1240
1842- Section 11. Paragraph (a) of subsection (7) and paragraph 1241
1843-(c) of subsection (21) of section 718.504, Florida Statutes, are 1242
1844-amended to read: 1243
1845- 718.504 Prospectus or offering circular. —Every developer 1244
1846-of a residential condominium which contains more than 20 1245
1847-residential units, or which is part of a group of residential 1246
1848-condominiums which will be served by property to be used in 1247
1849-common by unit owners of more than 20 residential units, shall 1248
1850-prepare a prospectus or offering circular and file it with the 1249
1851-Division of Florida Condominiums, Timeshares, and Mobile Homes 1250
1852-
1853-CS/CS/HB 1395 2023
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1855-
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1857-CODING: Words stricken are deletions; words underlined are additions.
1858-hb1395-02-c2
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1860-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
1861-
1862-
1863-
1864-prior to entering into an enforceable contract of purchase and 1251
1865-sale of any unit or lease of a unit for more than 5 years and 1252
1866-shall furnish a copy of the prospectus or offering circular to 1253
1867-each buyer. In addition to the prospectus or offering circular, 1254
1868-each buyer shall be furnished a separate page entitled 1255
1869-"Frequently Asked Questions and Answers," which shall be in 1256
1870-accordance with a format approved by the division and a copy of 1257
1871-the financial information required by s. 718.111. This page 1258
1872-shall, in readable language, in form prospective purchasers 1259
1873-regarding their voting rights and unit use restrictions, 1260
1874-including restrictions on the leasing of a unit; shall indicate 1261
1875-whether and in what amount the unit owners or the association is 1262
1876-obligated to pay rent or land use fees for recreational or other 1263
1877-commonly used facilities; shall contain a statement identifying 1264
1878-that amount of assessment which, pursuant to the budget, would 1265
1879-be levied upon each unit type, exclusive of any special 1266
1880-assessments, and which shall further identify the basis upon 1267
1881-which assessments are levied, whether monthly, quarterly, or 1268
1882-otherwise; shall state and identify any court cases in which the 1269
1883-association is currently a party of record in which the 1270
1884-association may face liability in excess of $100,000; and which 1271
1885-shall further state whether membership in a recreational 1272
1886-facilities association is mandatory, and if so, shall identify 1273
1887-the fees currently charged per unit type. The division shall by 1274
1888-rule require such other disclosure as in its judgment will 1275
1889-
1890-CS/CS/HB 1395 2023
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1894-CODING: Words stricken are deletions; words underlined are additions.
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1897-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
1898-
1899-
1900-
1901-assist prospective purchasers. The prospectus or offering 1276
1902-circular may include more than one condominium, although not all 1277
1903-such units are being offered for sale as of the date of the 1278
1904-prospectus or offering circular. The prospectus or offering 1279
1905-circular must contain the following information: 1280
1906- (7) A description of the recreational and other facilities 1281
1907-that will be used in common with other condominiums, community 1282
1908-associations, or planned developments which require the payment 1283
1909-of the maintenance and expenses of such faci lities, directly or 1284
1910-indirectly, by the unit owners. The description shall include, 1285
1911-but not be limited to, the following: 1286
1912- (a) Each building and facility committed to be built and a 1287
1913-summary description of the structural integrity of each building 1288
1914-for which reserves are required pursuant to s. 718.112(2)(g) . 1289
1915- 1290
1916-Descriptions shall include location, areas, capacities, numbers, 1291
1917-volumes, or sizes and may be stated as approximations or 1292
1918-minimums. 1293
1919- (21) An estimated operating budget for the condominium and 1294
1920-the association, and a schedule of the unit owner's expenses 1295
1921-shall be attached as an exhibit and shall contain the following 1296
1922-information: 1297
1923- (c) The estimated items of expenses of the condominium and 1298
1924-the association, except as excluded under paragraph (b), 1299
1925-including, but not limited to, the following items, which shall 1300
1926-
1927-CS/CS/HB 1395 2023
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1929-
1930-
1931-CODING: Words stricken are deletions; words underlined are additions.
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1934-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
1935-
1936-
1937-
1938-be stated as an association expense collectible by assessments 1301
1939-or as unit owners' expenses payable to persons other than the 1302
1940-association: 1303
1941- 1. Expenses for the association and condominium: 1304
1942- a. Administration of the association. 1305
1943- b. Management fees. 1306
1944- c. Maintenance. 1307
1945- d. Rent for recreational and other commonly used 1308
1946-facilities. 1309
1947- e. Taxes upon association property. 1310
1948- f. Taxes upon leased areas. 1311
1949- g. Insurance. 1312
1950- h. Security provisions. 1313
1951- i. Other expenses. 1314
1952- j. Operating capital. 1315
1953- k. Reserves for all applicable items referenced in s. 1316
1954-718.112(2)(g). 1317
1955- l. Fees payable to the division. 1318
1956- 2. Expenses for a unit owner: 1319
1957- a. Rent for the unit, if subject to a lease. 1320
1958- b. Rent payable by the unit owner direc tly to the lessor 1321
1959-or agent under any recreational lease or lease for the use of 1322
1960-commonly used facilities, which use and payment is a mandatory 1323
1961-condition of ownership and is not included in the common expense 1324
1962-or assessments for common maintenance paid by th e unit owners to 1325
1963-
1964-CS/CS/HB 1395 2023
1965-
1966-
1967-
1968-CODING: Words stricken are deletions; words underlined are additions.
1969-hb1395-02-c2
1970-Page 54 of 90
1971-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
1972-
1973-
1974-
1975-the association. 1326
1976- Section 12. Subsection (24) of section 719.103, Florida 1327
1977-Statutes, is amended to read: 1328
1978- 719.103 Definitions. —As used in this chapter: 1329
1979- (24) "Structural integrity reserve study" means a study of 1330
1980-the reserve funds requi red for future major repairs and 1331
1981-replacement of the cooperative property performed as required 1332
1982-under s. 719.106(1)(k) common areas based on a visual inspection 1333
1983-of the common areas. A structural integrity reserve study may be 1334
1984-performed by any person qualifi ed to perform such study. 1335
1985-However, the visual inspection portion of the structural 1336
1986-integrity reserve study must be performed by an engineer 1337
1987-licensed under chapter 471 or an architect licensed under 1338
1988-chapter 481. At a minimum, a structural integrity reserve study 1339
1989-must identify the common areas being visually inspected, state 1340
1990-the estimated remaining useful life and the estimated 1341
1991-replacement cost or deferred maintenance expense of the common 1342
1992-areas being visually inspected, and provide a recommended annual 1343
1993-reserve amount that achieves the estimated replacement cost or 1344
1994-deferred maintenance expense of each common area being visually 1345
1995-inspected by the end of the estimated remaining useful life of 1346
1996-each common area. 1347
1997- Section 13. Subsections (5) through (11) of secti on 1348
1998-719.104, Florida Statutes, are renumbered as subsections (6) 1349
1999-through (12), respectively, paragraph (c) of subsection (2) of 1350
2000-
2001-CS/CS/HB 1395 2023
2002-
2003-
2004-
2005-CODING: Words stricken are deletions; words underlined are additions.
2006-hb1395-02-c2
2007-Page 55 of 90
2008-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
2009-
2010-
2011-
2012-that section is amended, and a new subsection (5) is added to 1351
2013-that section, to read: 1352
2014- 719.104 Cooperatives; access to units; records; financial 1353
2015-reports; assessments; purchase of leases. — 1354
2016- (2) OFFICIAL RECORDS. — 1355
2017- (c) The official records of the association are open to 1356
2018-inspection by any association member and any person authorized 1357
2019-by an association member as a or the authorized representative 1358
2020-of such member at all reasonable times. The right to inspect the 1359
2021-records includes the right to make or obtain copies, at the 1360
2022-reasonable expense, if any, of the association member and of the 1361
2023-person authorized by the association member as a re presentative 1362
2024-of such member. A renter of a unit has a right to inspect and 1363
2025-copy only the association's bylaws and rules and the inspection 1364
2026-reports described in ss. 553.899 and 719.301(4)(p). The 1365
2027-association may adopt reasonable rules regarding the frequenc y, 1366
2028-time, location, notice, and manner of record inspections and 1367
2029-copying, but may not require a member to demonstrate any purpose 1368
2030-or state any reason for the inspection. The failure of an 1369
2031-association to provide the records within 10 working days after 1370
2032-receipt of a written request creates a rebuttable presumption 1371
2033-that the association willfully failed to comply with this 1372
2034-paragraph. A member who is denied access to official records is 1373
2035-entitled to the actual damages or minimum damages for the 1374
2036-association's willful failure to comply. The minimum damages are 1375
2037-
2038-CS/CS/HB 1395 2023
2039-
2040-
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2042-CODING: Words stricken are deletions; words underlined are additions.
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2045-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
2046-
2047-
2048-
2049-$50 per calendar day for up to 10 days, beginning on the 11th 1376
2050-working day after receipt of the written request. The failure to 1377
2051-permit inspection entitles any person prevailing in an 1378
2052-enforcement action to recove r reasonable attorney fees from the 1379
2053-person in control of the records who, directly or indirectly, 1380
2054-knowingly denied access to the records. Any person who knowingly 1381
2055-or intentionally defaces or destroys accounting records that are 1382
2056-required by this chapter to be maintained during the period for 1383
2057-which such records are required to be maintained, or who 1384
2058-knowingly or intentionally fails to create or maintain 1385
2059-accounting records that are required to be created or 1386
2060-maintained, with the intent of causing harm to the ass ociation 1387
2061-or one or more of its members, is personally subject to a civil 1388
2062-penalty under s. 719.501(1)(d). The association shall maintain 1389
2063-an adequate number of copies of the declaration, articles of 1390
2064-incorporation, bylaws, and rules, and all amendments to eac h of 1391
2065-the foregoing, as well as the question and answer sheet as 1392
2066-described in s. 719.504 and year -end financial information 1393
2067-required by the department, on the cooperative property to 1394
2068-ensure their availability to members and prospective purchasers, 1395
2069-and may charge its actual costs for preparing and furnishing 1396
2070-these documents to those requesting the same. An association 1397
2071-shall allow a member or his or her authorized representative to 1398
2072-use a portable device, including a smartphone, tablet, portable 1399
2073-scanner, or any other technology capable of scanning or taking 1400
2074-
2075-CS/CS/HB 1395 2023
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2077-
2078-
2079-CODING: Words stricken are deletions; words underlined are additions.
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2082-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
2083-
2084-
2085-
2086-photographs, to make an electronic copy of the official records 1401
2087-in lieu of the association providing the member or his or her 1402
2088-authorized representative with a copy of such records. The 1403
2089-association may not cha rge a member or his or her authorized 1404
2090-representative for the use of a portable device. Notwithstanding 1405
2091-this paragraph, the following records shall not be accessible to 1406
2092-members: 1407
2093- 1. Any record protected by the lawyer -client privilege as 1408
2094-described in s. 90.502 and any record protected by the work -1409
2095-product privilege, including any record prepared by an 1410
2096-association attorney or prepared at the attorney's express 1411
2097-direction which reflects a mental impression, conclusion, 1412
2098-litigation strategy, or legal theory of the attorney or the 1413
2099-association, and which was prepared exclusively for civil or 1414
2100-criminal litigation or for adversarial administrative 1415
2101-proceedings, or which was prepared in anticipation of such 1416
2102-litigation or proceedings until the conclusion of the litigation 1417
2103-or proceedings. 1418
2104- 2. Information obtained by an association in connection 1419
2105-with the approval of the lease, sale, or other transfer of a 1420
2106-unit. 1421
2107- 3. Personnel records of association or management company 1422
2108-employees, including, but not limited to, disciplinary, payroll, 1423
2109-health, and insurance records. For purposes of this 1424
2110-subparagraph, the term "personnel records" does not include 1425
2111-
2112-CS/CS/HB 1395 2023
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2114-
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2116-CODING: Words stricken are deletions; words underlined are additions.
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2119-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
2120-
2121-
2122-
2123-written employment agreements with an association employee or 1426
2124-management company, or budgetary or financial records that 1427
2125-indicate the compensation paid to an association employee. 1428
2126- 4. Medical records of unit owners. 1429
2127- 5. Social security numbers, driver license numbers, credit 1430
2128-card numbers, e-mail addresses, telephone numbers, facsimile 1431
2129-numbers, emergency contact information, addresses o f a unit 1432
2130-owner other than as provided to fulfill the association's notice 1433
2131-requirements, and other personal identifying information of any 1434
2132-person, excluding the person's name, unit designation, mailing 1435
2133-address, property address, and any address, e -mail address, or 1436
2134-facsimile number provided to the association to fulfill the 1437
2135-association's notice requirements. Notwithstanding the 1438
2136-restrictions in this subparagraph, an association may print and 1439
2137-distribute to unit owners a directory containing the name, unit 1440
2138-address, and all telephone numbers of each unit owner. However, 1441
2139-an owner may exclude his or her telephone numbers from the 1442
2140-directory by so requesting in writing to the association. An 1443
2141-owner may consent in writing to the disclosure of other contact 1444
2142-information described in this subparagraph. The association is 1445
2143-not liable for the inadvertent disclosure of information that is 1446
2144-protected under this subparagraph if the information is included 1447
2145-in an official record of the association and is voluntarily 1448
2146-provided by an owner and not requested by the association. 1449
2147- 6. Electronic security measures that are used by the 1450
2148-
2149-CS/CS/HB 1395 2023
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2153-CODING: Words stricken are deletions; words underlined are additions.
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2156-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
2157-
2158-
2159-
2160-association to safeguard data, including passwords. 1451
2161- 7. The software and operating system used by the 1452
2162-association which allow the manipulation of data, even if the 1453
2163-owner owns a copy of the same software used by the association. 1454
2164-The data is part of the official records of the association. 1455
2165- 8. All affirmative acknowledgments made pursuant to s. 1456
2166-719.108(3)(b)3. 1457
2167- (5) MAINTENANCE.—Maintenance of the common elemen ts is the 1458
2168-responsibility of the association, except for any maintenance 1459
2169-responsibility for limited common elements assigned to the unit 1460
2170-owners by the declaration. The association shall provide for the 1461
2171-maintenance, repair, and replacement of the cooperative property 1462
2172-for which it bears responsibility pursuant to the declaration of 1463
2173-cooperative. After turnover of control of the association to the 1464
2174-unit owners, the association must perform any required 1465
2175-maintenance identified by the developer pursuant to s. 1466
2176-719.301(4)(p) and (q) until the association obtains new 1467
2177-maintenance protocols from a licensed engineer or architect or a 1468
2178-person certified as a reserve specialist or professional reserve 1469
2179-analyst by the Community Associations Institute or the 1470
2180-Association of Profes sional Reserve Analysts. The declaration 1471
2181-may provide that certain limited common elements shall be 1472
2182-maintained by those entitled to use the limited common elements 1473
2183-or that the association shall provide the maintenance, either as 1474
2184-a common expense or with the cost shared only by those entitled 1475
2185-
2186-CS/CS/HB 1395 2023
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2193-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
2194-
2195-
2196-
2197-to use the limited common elements. If the maintenance is to be 1476
2198-provided by the association at the expense of only those 1477
2199-entitled to use the limited common elements, the declaration 1478
2200-shall describe in detail the method of apportioning such costs 1479
2201-among those entitled to use the limited common elements and the 1480
2202-association may use s. 719.108 to enforce payment of the shares 1481
2203-of such costs by the unit owners entitled to use the limited 1482
2204-common elements. 1483
2205- Section 14. Paragraphs (e), (j), (k), and (l) of 1484
2206-subsection (1) of section 719.106, Florida Statutes, are amended 1485
2207-to read: 1486
2208- 719.106 Bylaws; cooperative ownership. — 1487
2209- (1) MANDATORY PROVISIONS. —The bylaws or other cooperative 1488
2210-documents shall provide for the following, and if they do not, 1489
2211-they shall be deemed to include the following: 1490
2212- (e) Budget procedures.— 1491
2213- 1. The board of administration shall mail, hand deliver, 1492
2214-or electronically transmit to each unit owner at the address 1493
2215-last furnished to the association, a meetin g notice and copies 1494
2216-of the proposed annual budget of common expenses to the unit 1495
2217-owners not less than 14 days prior to the meeting at which the 1496
2218-budget will be considered. Evidence of compliance with this 14 -1497
2219-day notice must be made by an affidavit executed by an officer 1498
2220-of the association or the manager or other person providing 1499
2221-notice of the meeting and filed among the official records of 1500
2222-
2223-CS/CS/HB 1395 2023
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2230-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
2231-
2232-
2233-
2234-the association. The meeting must be open to the unit owners. 1501
2235- 2. If an adopted budget requires assessment against the 1502
2236-unit owners in any fiscal or calendar year which exceeds 115 1503
2237-percent of the assessments for the preceding year, the board 1504
2238-upon written application of 10 percent of the voting interests 1505
2239-to the board, shall call a special meeting of the unit owners 1506
2240-within 30 days, upon not less than 10 days' written notice to 1507
2241-each unit owner. At the special meeting, unit owners shall 1508
2242-consider and enact a budget. Unless the bylaws require a larger 1509
2243-vote, the adoption of the budget requires a vote of not less 1510
2244-than a majority of all the voting interests. 1511
2245- 3. The board of administration may, in any event, propose 1512
2246-a budget to the unit owners at a meeting of members or by 1513
2247-writing, and if the budget or proposed budget is approved by the 1514
2248-unit owners at the meeting or by a majority of all voting 1515
2249-interests in writing, the budget is adopted. If a meeting of the 1516
2250-unit owners has been called and a quorum is not attained or a 1517
2251-substitute budget is not adopted by the unit owners, the budget 1518
2252-adopted by the board of directors goes into effect as scheduled. 1519
2253- 4. In determining whether assessments exceed 115 percent 1520
2254-of similar assessments for prior years, any authorized 1521
2255-provisions for reasonable reserves for repair or replacement of 1522
2256-cooperative property, anticipated expenses by the association 1523
2257-which are not anticipated to be incurred on a regular or annual 1524
2258-basis, insurance premiums, or assessments for betterments to the 1525
2259-
2260-CS/CS/HB 1395 2023
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2267-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
2268-
2269-
2270-
2271-cooperative property must be excluded from computation. However, 1526
2272-as long as the developer is in control of the board of 1527
2273-administration, the board may not impose an assessment for any 1528
2274-year greater than 115 percent of the prior fiscal or calendar 1529
2275-year's assessment without approval of a majority of all voting 1530
2276-interests. 1531
2277- (j) Annual budget.— 1532
2278- 1. The proposed annual budget of common expen ses must be 1533
2279-detailed and must show the amounts budgeted by accounts and 1534
2280-expense classifications, including, if applicable, but not 1535
2281-limited to, those expenses listed in s. 719.504(20). The board 1536
2282-of administration shall adopt the annual budget at least 14 da ys 1537
2283-before the start of the association's fiscal year. In the event 1538
2284-that the board fails to timely adopt the annual budget a second 1539
2285-time, it is deemed a minor violation and the prior year's budget 1540
2286-shall continue in effect until a new budget is adopted. 1541
2287- 2. In addition to annual operating expenses, the budget 1542
2288-must include reserve accounts for capital expenditures and 1543
2289-deferred maintenance. These accounts must include, but are not 1544
2290-be limited to, roof replacement, building painting, and pavement 1545
2291-resurfacing, regardless of the amount of deferred maintenance 1546
2292-expense or replacement cost, and for any other items for which 1547
2293-the deferred maintenance expense or replacement cost exceeds 1548
2294-$10,000. The amount to be reserved for an item is determined by 1549
2295-the association's mos t recent structural integrity reserve study 1550
2296-
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2304-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
2305-
2306-
2307-
2308-that must be completed by December 31, 2024. If the amount to be 1551
2309-reserved for an item is not in the association's initial or most 1552
2310-recent structural integrity reserve study or the association has 1553
2311-not completed a structural integrity reserve study, the amount 1554
2312-must be computed by means of a formula which is based upon 1555
2313-estimated remaining useful life and estimated replacement cost 1556
2314-or deferred maintenance expense of the reserve item. In a budget 1557
2315-adopted by an associati on that is required to obtain a 1558
2316-structural integrity reserve study, reserves must be maintained 1559
2317-for the items identified in paragraph (k), and the reserve 1560
2318-amount for such items must be based on the findings and 1561
2319-recommendations of the association's most rec ent structural 1562
2320-integrity reserve study. With respect to items for which an 1563
2321-estimated remaining useful life is not readily ascertainable or 1564
2322-which have an estimated remaining useful life of greater than 25 1565
2323-years, an association is not required to reserve rep lacement 1566
2324-costs for such items, but an association must reserve the amount 1567
2325-of deferred maintenance expense, if any, which is recommended by 1568
2326-the structural integrity reserve study for such items. The 1569
2327-association may adjust replacement reserve assessments ann ually 1570
2328-to take into account an inflation adjustment and any changes in 1571
2329-estimates or extension of the useful life of a reserve item 1572
2330-caused by deferred maintenance. The members of a unit -owner-1573
2331-controlled association may determine, at a duly called meeting 1574
2332-of the association, for a fiscal year to provide no reserves or 1575
2333-
2334-CS/CS/HB 1395 2023
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2341-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
2342-
2343-
2344-
2345-reserves less adequate than required by this subsection. Before 1576
2346-turnover of control of an association by a developer to unit 1577
2347-owners other than a developer under s. 719.301, the developer -1578
2348-controlled association may not vote to waive the reserves or 1579
2349-reduce funding of the reserves. Effective December 31, 2024, a 1580
2350-unit-owner-controlled association that must obtain a structural 1581
2351-integrity reserve study may not determine to provide no reserves 1582
2352-or reserves less adequate than required by this paragraph for 1583
2353-items listed in paragraph (k). If a meeting of the unit owners 1584
2354-has been called to determine to provide no reserves, or reserves 1585
2355-less adequate than required, and such result is not attained or 1586
2356-a quorum is not attained, the reserves as included in the budget 1587
2357-shall go into effect. 1588
2358- 3. Reserve funds and any interest accruing thereon shall 1589
2359-remain in the reserve account or accounts, and shall be used 1590
2360-only for authorized reserve expenditures unless their use for 1591
2361-other purposes is approved in advance by a vote of the majority 1592
2362-of the voting interests, voting in person or by limited proxy at 1593
2363-a duly called meeting of the association. Before turnover of 1594
2364-control of an association by a developer to unit owners other 1595
2365-than the developer under s. 719.301, the developer may not vote 1596
2366-to use reserves for purposes other than that for which they were 1597
2367-intended. Effective December 31, 2024, members of a unit -owner-1598
2368-controlled association that must obtain a structural integrity 1599
2369-reserve study may not vote to use reserve funds, or any interest 1600
2370-
2371-CS/CS/HB 1395 2023
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2378-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
2379-
2380-
2381-
2382-accruing thereon, that are reserved for items listed in 1601
2383-paragraph (k) for purposes other than the replacement or 1602
2384-deferred maintenance costs of the components listed in paragraph 1603
2385-(k) their intended purpose. 1604
2386- (k) Structural integrity reserve study. — 1605
2387- 1. A residential cooperative An association must have a 1606
2388-structural integrity reserve study completed at least every 10 1607
2389-years for each building on the cooperative property that is 1608
2390-three stories or highe r in height as determined by the Florida 1609
2391-Building Code which that includes, at a minimum, a study of the 1610
2392-following items as related to the structural integrity and 1611
2393-safety of the building: 1612
2394- a. Roof. 1613
2395- b. Structure, including load-bearing walls and or other 1614
2396-primary structural members and primary structural systems as 1615
2397-those terms are defined in s. 627.706 . 1616
2398- c. Floor. 1617
2399- d. Foundation. 1618
2400- e. Fireproofing and fire protection systems. 1619
2401- d.f. Plumbing. 1620
2402- e.g. Electrical systems. 1621
2403- f.h. Waterproofing and exterior painting. 1622
2404- g.i. Windows and exterior doors. 1623
2405- h.j. Any other item that has a deferred maintenance 1624
2406-expense or replacement cost that exceeds $10,000 and the failure 1625
2407-
2408-CS/CS/HB 1395 2023
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2415-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
2416-
2417-
2418-
2419-to replace or maintain such item negatively affects the items 1626
2420-listed in sub-subparagraphs a.-g. sub-subparagraphs a.-i., as 1627
2421-determined by the licensed engineer or architect performing the 1628
2422-visual inspection portion of the structural integrity reserve 1629
2423-study. 1630
2424- 2. A structural integrity reserve study is based on a 1631
2425-visual inspection of the cooperative property. A structural 1632
2426-integrity reserve study may be performed by any person qualified 1633
2427-to perform such study. However, the visual inspection portion of 1634
2428-the structural integrity reserve study must be performed or 1635
2429-verified by an engineer licensed under chapter 471 or an 1636
2430-architect licensed under chapter 481, or performed by a person 1637
2431-certified as a reserve specialist or professional reserve 1638
2432-analyst by the Community Associations Institute or the 1639
2433-Association of Professional Reserve Analysts. 1640
2434- 3. At a minimum, a structural integrity reserve study must 1641
2435-identify each item of the cooperative property being visually 1642
2436-inspected, state the estimated remaining useful life and the 1643
2437-estimated replacement cost or deferred maintenance expense of 1644
2438-each item of the cooperative property being visually inspected, 1645
2439-and provide a reserve funding schedule with a recommended annual 1646
2440-reserve amount that achieves the estimated replacement cost or 1647
2441-deferred maintenance expense of each item of cooperative 1648
2442-property being visually inspected by the end of the estimated 1649
2443-remaining useful life of the item. The structural integrity 1650
2444-
2445-CS/CS/HB 1395 2023
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2452-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
2453-
2454-
2455-
2456-reserve study may recommend that reserves do not need to be 1651
2457-maintained for any item for which an estimated remaining useful 1652
2458-life and an estimate of replacement cost cannot be determined, 1653
2459-or the study may recommend a deferred maintenance expense amount 1654
2460-for such item. The structural integrity reserve study may 1655
2461-recommend that reserves for replacement costs do not need to be 1656
2462-maintained for any ite m with an estimated remaining useful life 1657
2463-of greater than 25 years, but the study may recommend a deferred 1658
2464-maintenance expense amount for such item. 1659
2465- 4. This paragraph does not apply to buildings less than 1660
2466-three stories in height and to single -family, two-family, or 1661
2467-three-family dwellings with three or fewer habitable stories 1662
2468-above ground. 1663
2469- 5. Before a developer turns over control of an association 1664
2470-to unit owners other than the developer, the developer must have 1665
2471-a structural integrity reserve study comple ted for each building 1666
2472-on the cooperative property that is three stories or higher in 1667
2473-height. 1668
2474- 6.3. Associations existing on or before July 1, 2022, 1669
2475-which are controlled by unit owners other than the developer, 1670
2476-must have a structural integrity reserve stud y completed by 1671
2477-December 31, 2024, for each building on the cooperative property 1672
2478-that is three stories or higher in height. An association that 1673
2479-is required to complete a milestone inspection in accordance 1674
2480-with s. 553.899 on or before December 31, 2026, may complete the 1675
2481-
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2489-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
2490-
2491-
2492-
2493-structural integrity reserve study simultaneously with the 1676
2494-milestone inspection. In no event may the structura l integrity 1677
2495-reserve study be completed after December 31, 2026. 1678
2496- 7. If the milestone inspection required by s. 553.899, or 1679
2497-an inspection completed for a similar local requirement, was 1680
2498-performed within the previous 5 years and meets the requirements 1681
2499-of this paragraph, such inspection may be used in place of the 1682
2500-visual inspection portion of the structural integrity reserve 1683
2501-study. 1684
2502- 8.4. If the officers or directors of an association fail 1685
2503-fails to complete a structural integrity reserve study pursuant 1686
2504-to this paragraph, such failure is a breach of an officer's and 1687
2505-director's fiduciary relationship to the unit owners under s. 1688
2506-719.104(9) s. 719.104(8). 1689
2507- (l) Mandatory milestone inspections. —If an association is 1690
2508-required to have a milestone inspection performed p ursuant to s. 1691
2509-553.899, the association must arrange for the milestone 1692
2510-inspection to be performed and is responsible for ensuring 1693
2511-compliance with the requirements of s. 553.899. The association 1694
2512-is responsible for all costs associated with the milestone 1695
2513-inspection for the portions of the building which the 1696
2514-association is responsible for maintaining under the governing 1697
2515-documents of the association . If the officers or directors of an 1698
2516-association willfully and knowingly fail to have a milestone 1699
2517-inspection performed pursuant to s. 553.899, such failure is a 1700
2518-
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2526-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
2527-
2528-
2529-
2530-breach of the officers' and directors' fiduciary relationship to 1701
2531-the unit owners under s. 719.104(9)(a). Within 14 days after 1702
2532-receipt of a written notice from the local enforcement agency 1703
2533-that a milestone inspe ction is required, the association must 1704
2534-notify the unit owners of the required milestone inspection and 1705
2535-provide the date by which the milestone inspection must be 1706
2536-completed. Such notice may be given by electronic submission to 1707
2537-unit owners who consent to re ceive notice by electronic 1708
2538-submission or by posting the notice on the association's 1709
2539-website. Within 45 days after receiving s. 719.104(8)(a). Upon 1710
2540-completion of a phase one or phase two milestone inspection and 1711
2541-receipt of the inspector -prepared summary of the inspection 1712
2542-report from the licensed architect or engineer who performed the 1713
2543-inspection, the association must distribute a copy of the 1714
2544-inspector-prepared summary of the inspection report to each unit 1715
2545-owner, regardless of the findings or recommendations in the 1716
2546-report, by United States mail or personal delivery at the 1717
2547-mailing address, property address, or any other address of the 1718
2548-unit owner which is provided to fulfill the association's notice 1719
2549-requirements under this chapter and by electronic transmission 1720
2550-to unit owners who previously consented to receive notice by 1721
2551-electronic transmission using the e-mail address or facsimile 1722
2552-number of the unit owner which is provided to fulfill the 1723
2553-association's notice requirements under this chapter ; must post 1724
2554-a copy of the inspector-prepared summary in a conspicuous place 1725
2555-
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2563-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
2564-
2565-
2566-
2567-on the cooperative property; and must publish the full report 1726
2568-and inspector-prepared summary on the association's website, if 1727
2569-the association is required to have a website. 1728
2570- Section 15. Paragraph (q) of subsection (4) of section 1729
2571-719.301, Florida Statutes, is redesignated as paragraph (r), 1730
2572-paragraph (p) of that subsection is amended, and a new paragraph 1731
2573-(q) is added to that subsection, to read: 1732
2574- 719.301 Transfer of association control. — 1733
2575- (4) When unit owners other than the developer elect a 1734
2576-majority of the members of the board of administration of an 1735
2577-association, the developer shall relinquish control of the 1736
2578-association, and the unit owners shall accept control. 1737
2579-Simultaneously, or for the purpose of pa ragraph (c) not more 1738
2580-than 90 days thereafter, the developer shall deliver to the 1739
2581-association, at the developer's expense, all property of the 1740
2582-unit owners and of the association held or controlled by the 1741
2583-developer, including, but not limited to, the followi ng items, 1742
2584-if applicable, as to each cooperative operated by the 1743
2585-association: 1744
2586- (p) Notwithstanding when the certificate of occupancy was 1745
2587-issued or the height of the building, a structural integrity 1746
2588-reserve study milestone inspection report in compliance with s. 1747
2589-719.106(1)(k) s. 553.899 included in the official records, under 1748
2590-seal of a licensed an architect or engineer authorized to 1749
2591-practice in this state or a person certified as a reserve 1750
2592-
2593-CS/CS/HB 1395 2023
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2600-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
2601-
2602-
2603-
2604-specialist or professional reserve analyst by the Community 1751
2605-Associations Institute or the Association of Professional 1752
2606-Reserve Analysts, attesting to required maintenance, condition, 1753
2607-useful life, and replacement costs of the following applicable 1754
2608-cooperative property comprising a turnover inspection report: 1755
2609- 1. Roof. 1756
2610- 2. Structure, including load -bearing walls and primary 1757
2611-structural members and primary structural systems as those terms 1758
2612-are defined in s. 627.706 s. 627.706. 1759
2613- 3. Fireproofing and fire protection systems. 1760
2614- 4. Plumbing Elevators. 1761
2615- 5. Electrical systems Heating and cooling systems. 1762
2616- 6. Waterproofing and exterior painting Plumbing. 1763
2617- 7. Windows and exterior doors Electrical systems. 1764
2618- 8. Swimming pool or spa and equipment. 1765
2619- 9. Seawalls. 1766
2620- 10. Pavement and parking areas. 1767
2621- 11. Drainage systems. 1768
2622- 12. Painting. 1769
2623- 13. Irrigation systems. 1770
2624- 14. Waterproofing. 1771
2625- (q) Notwithstanding when the certificate of occupancy was 1772
2626-issued or the height of the building, a turnover inspection 1773
2627-report included in the official records, under seal of a 1774
2628-licensed architect or engineer au thorized to practice in this 1775
2629-
2630-CS/CS/HB 1395 2023
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2637-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
2638-
2639-
2640-
2641-state or a person certified as a reserve specialist or 1776
2642-professional reserve analyst by the Community Associations 1777
2643-Institute or the Association of Professional Reserve Analysts, 1778
2644-and attesting to required maintenance, condition, useful life, 1779
2645-and replacement costs of the following applicable cooperative 1780
2646-property comprising a turnover inspection report: 1781
2647- 1. Elevators. 1782
2648- 2. Heating and cooling systems. 1783
2649- 3. Swimming pool or spa and equipment. 1784
2650- 4. Seawalls. 1785
2651- 5. Pavement and parking areas. 1786
2652- 6. Drainage systems. 1787
2653- 7. Irrigation systems. 1788
2654- Section 16. Paragraph (b) of subsection (1) and paragraph 1789
2655-(a) of subsection (2) of section 719.503, Florida Statutes, are 1790
2656-amended, and paragraph (d) is added to subsection (1) and 1791
2657-paragraph (d) is added to subsection (2) of that section, to 1792
2658-read: 1793
2659- 719.503 Disclosure prior to sale. — 1794
2660- (1) DEVELOPER DISCLOSURE. — 1795
2661- (b) Copies of documents to be furnished to prospective 1796
2662-buyer or lessee.—Until such time as the developer has furnished 1797
2663-the documents listed below to a person who has entered into a 1798
2664-contract to purchase a unit or lease it for more than 5 years, 1799
2665-the contract may be voided by that person, entitling the person 1800
2666-
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2674-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
2675-
2676-
2677-
2678-to a refund of any deposit together with interest thereon as 1801
2679-provided in s. 719.202. The contract may be terminated by 1802
2680-written notice from the proposed buyer or lessee delivered to 1803
2681-the developer within 15 days after the buyer or lessee receives 1804
2682-all of the documents required by this section. The developer may 1805
2683-not close for 15 days after the execution of the agreement and 1806
2684-delivery of the documents to the buyer as evidenced by a receipt 1807
2685-for documents signed by the buyer unless the buyer is informed 1808
2686-in the 15-day voidability period and agrees to close before the 1809
2687-expiration of the 15 days. The d eveloper shall retain in his or 1810
2688-her records a separate signed agreement as proof of the buyer's 1811
2689-agreement to close before the expiration of the voidability 1812
2690-period. The developer must retain such proof for a period of 5 1813
2691-years after the date of the closing t ransaction. The documents 1814
2692-to be delivered to the prospective buyer are the prospectus or 1815
2693-disclosure statement with all exhibits, if the development is 1816
2694-subject to s. 719.504, or, if not, then copies of the following 1817
2695-which are applicable: 1818
2696- 1. The question and answer sheet described in s. 719.504, 1819
2697-and cooperative documents, or the proposed cooperative documents 1820
2698-if the documents have not been recorded, which shall include the 1821
2699-certificate of a surveyor approximately representing the 1822
2700-locations required by s. 719 .104. 1823
2701- 2. The documents creating the association. 1824
2702- 3. The bylaws. 1825
2703-
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2711-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
2712-
2713-
2714-
2715- 4. The ground lease or other underlying lease of the 1826
2716-cooperative. 1827
2717- 5. The management contract, maintenance contract, and 1828
2718-other contracts for management of the association and operation 1829
2719-of the cooperative and facilities used by the unit owners having 1830
2720-a service term in excess of 1 year, and any management contracts 1831
2721-that are renewable. 1832
2722- 6. The estimated operating budget for the cooperative and 1833
2723-a schedule of expenses for each type of unit, including fees 1834
2724-assessed to a shareholder who has exclusive use of limited 1835
2725-common areas, where such costs are shared only by those entitled 1836
2726-to use such limited common areas. 1837
2727- 7. The lease of recreational and other facilities that 1838
2728-will be used only by unit owners of the subject cooperative. 1839
2729- 8. The lease of recreational and other common areas that 1840
2730-will be used by unit owners in common with unit owners of other 1841
2731-cooperatives. 1842
2732- 9. The form of unit lease if the offer is of a leasehold. 1843
2733- 10. Any declaration of servitude of properties serving the 1844
2734-cooperative but not owned by unit owners or leased to them or 1845
2735-the association. 1846
2736- 11. If the development is to be built in phases or if the 1847
2737-association is to manage more than one cooperative, a 1848
2738-description of the plan of phase development or the arrangements 1849
2739-for the association to manage two or more cooperatives. 1850
2740-
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2748-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
2749-
2750-
2751-
2752- 12. If the cooperative is a conversion of existing 1851
2753-improvements, the statements and disclosure required by s. 1852
2754-719.616. 1853
2755- 13. The form of agreement for sale or lease of units. 1854
2756- 14. A copy of the floor plan of the unit and the plot plan 1855
2757-showing the location of the residential buildings and the 1856
2758-recreation and other common areas. 1857
2759- 15. A copy of all covenants and restrictions that will 1858
2760-affect the use of the property and are not contained in the 1859
2761-foregoing. 1860
2762- 16. If the developer is required by state or local 1861
2763-authorities to obtain acceptance or approval of any dock or 1862
2764-marina facilities intended to serve the cooperative, a copy of 1863
2765-any such acceptance or approval acquired by the time of filing 1864
2766-with the division pursuant to s. 719.502(1) or a statement that 1865
2767-such acceptance or approval has not been acquired or received. 1866
2768- 17. Evidence demonstrating that the developer has an 1867
2769-ownership, leasehold, or contractual inter est in the land upon 1868
2770-which the cooperative is to be developed. 1869
2771- 18. A copy of the inspector -prepared summary of the 1870
2772-milestone inspection report as described in s. 553.899 ss. 1871
2773-553.899 and 719.301(4)(p) , or a statement in conspicuous type 1872
2774-indicating that the required milestone inspection described in 1873
2775-s. 553.899 has not been completed or that a milestone inspection 1874
2776-is not required, as if applicable. 1875
2777-
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2785-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
2786-
2787-
2788-
2789- 19. A copy of the association's most recent structural 1876
2790-integrity reserve study or a statement in conspicuous type 1877
2791-indicating that the association has not completed a required 1878
2792-structural integrity reserve study has not been completed or 1879
2793-that a structural integrity reserve study is not required, as 1880
2794-applicable. 1881
2795- 20. A copy of the turnover inspection report describe d in 1882
2796-s. 719.301(4)(p) and (q) or a statement in conspicuous type 1883
2797-indicating that a turnover inspection report has not been 1884
2798-completed, as applicable. 1885
2799- (d) Milestone inspection, turnover inspection report, or 1886
2800-structural integrity reserve study. —If the association is 1887
2801-required to have completed a milestone inspection as described 1888
2802-in s. 553.899, a turnover inspection report for a turnover 1889
2803-inspection performed on or after July 1, 2023, or a structural 1890
2804-integrity reserve study, and the association has not complete d 1891
2805-the milestone inspection, the turnover inspection report, or the 1892
2806-structural integrity reserve study, each contract entered into 1893
2807-after December 31, 2024, for the sale of a residential unit must 1894
2808-contain in conspicuous type a statement indicating that the 1895
2809-association is required to have a milestone inspection, a 1896
2810-turnover inspection report, or a structural integrity reserve 1897
2811-study and has not completed such inspection, report, or study, 1898
2812-as applicable. If the association is not required to have a 1899
2813-milestone inspection as described in s. 553.899 or a structural 1900
2814-
2815-CS/CS/HB 1395 2023
2816-
2817-
2818-
2819-CODING: Words stricken are deletions; words underlined are additions.
2820-hb1395-02-c2
2821-Page 77 of 90
2822-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
2823-
2824-
2825-
2826-integrity reserve study, each contract entered into after 1901
2827-December 31, 2024, for the sale of a residential unit must 1902
2828-contain in conspicuous type a statement indicating that the 1903
2829-association is not required t o have a milestone inspection or a 1904
2830-structural integrity reserve study, as applicable. If the 1905
2831-association has completed a milestone inspection as described in 1906
2832-s. 553.899, a turnover inspection report for a turnover 1907
2833-inspection performed on or after July 1, 2 023, or a structural 1908
2834-integrity reserve study, each contract entered into after 1909
2835-December 31, 2024, for the sale of a residential unit must 1910
2836-contain in conspicuous type: 1911
2837- 1912
2838-THE BUYER HEREBY ACKNOWLEDGES THAT THE BUYER HAS BEEN 1913
2839-PROVIDED A CURRENT COPY OF THE INS PECTOR-PREPARED 1914
2840-SUMMARY OF THE MILESTONE INSPECTION REPORT AS 1915
2841-DESCRIBED IN SECTION 553.899, FLORIDA STATUTES, IF 1916
2842-APPLICABLE; A COPY OF THE TURNOVER INSPECTION REPORT 1917
2843-DESCRIBED IN SECTION 719.301(4)(p) AND (q), FLORIDA 1918
2844-STATUTES, IF APPLICABLE; AND A COPY OF THE 1919
2845-ASSOCIATION'S MOST RECENT STRUCTURAL INTEGRITY RESERVE 1920
2846-STUDY DESCRIBED IN SECTIONS 719.103(24) AND 1921
2847-719.106(1)(k), FLORIDA STATUTES, IF APPLICABLE, MORE 1922
2848-THAN 15 DAYS, EXCLUDING SATURDAYS, SUNDAYS, AND LEGAL 1923
2849-HOLIDAYS, BEFORE EXECUTION OF THIS CONTRACT. 1924
2850- 1925
2851-
2852-CS/CS/HB 1395 2023
2853-
2854-
2855-
2856-CODING: Words stricken are deletions; words underlined are additions.
2857-hb1395-02-c2
2858-Page 78 of 90
2859-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
2860-
2861-
2862-
2863-THIS AGREEMENT IS VOIDABLE BY THE BUYER BY DELIVERING 1926
2864-WRITTEN NOTICE OF THE BUYER'S INTENTION TO CANCEL 1927
2865-WITHIN 15 DAYS, EXCLUDING SATURDAYS, SUNDAYS, AND 1928
2866-LEGAL HOLIDAYS, AFTER THE DATE OF EXECUTION OF THIS 1929
2867-AGREEMENT BY THE BUYER AND THE BUYER'S RECEIPT OF A 1930
2868-CURRENT COPY OF THE INSPECTOR -PREPARED SUMMARY OF THE 1931
2869-MILESTONE INSPECTION REPORT AS DESCRIBED IN SECTION 1932
2870-553.899, FLORIDA STATUTES, IF APPLICABLE; A COPY OF 1933
2871-THE TURNOVER INSPECTION REPORT DESCRIBED IN SECTION 1934
2872-719.301(4)(p) AND (q), FLORIDA STATUTES, IF 1935
2873-APPLICABLE; AND A COPY OF THE ASSOCIATION'S MOST 1936
2874-RECENT STRUCTURAL INTEGRITY RESERVE STUDY DESCRIBED IN 1937
2875-SECTIONS 719.103(24) AND 719.106(1)(k), FLORIDA 1938
2876-STATUTES, IF APPLICABLE. ANY PURPORTED WAIVER OF THESE 1939
2877-VOIDABILITY RIGHTS SHALL BE OF NO EFFECT. THE BU YER 1940
2878-MAY EXTEND THE TIME FOR CLOSING FOR UP TO 15 DAYS, 1941
2879-EXCLUDING SATURDAYS, SUNDAYS, AND LEGAL HOLIDAYS, 1942
2880-AFTER THE BUYER RECEIVES A CURRENT COPY OF THE 1943
2881-INSPECTOR-PREPARED SUMMARY OF THE MILESTONE INSPECTION 1944
2882-REPORT AS DESCRIBED IN SECTION 553.899, FLORIDA 1945
2883-STATUTES; A COPY OF THE TURNOVER INSPECTION REPORT 1946
2884-DESCRIBED IN SECTION 719.301(4)(p) AND (q), FLORIDA 1947
2885-STATUTES; OR A COPY OF THE ASSOCIATION'S MOST RECENT 1948
2886-STRUCTURAL INTEGRITY RESERVE STUDY DESCRIBED IN 1949
2887-SECTIONS 719.103(24) AND 719.106(1)(k), FLORIDA 1950
2888-
2889-CS/CS/HB 1395 2023
2890-
2891-
2892-
2893-CODING: Words stricken are deletions; words underlined are additions.
2894-hb1395-02-c2
2895-Page 79 of 90
2896-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
2897-
2898-
2899-
2900-STATUTES, IF REQUESTED IN WRITING. BUYER'S RIGHT TO 1951
2901-VOID THIS AGREEMENT TERMINATES AT CLOSING. 1952
2902- 1953
2903-A contract that does not conform to the requirements of this 1954
2904-paragraph is voidable at the option of the purchaser before 1955
2905-closing. 1956
2906- (2) NONDEVELOPER DISCLOSURE. — 1957
2907- (a) Each unit owner who is not a developer as defined by 1958
2908-this chapter must comply with this subsection before the sale of 1959
2909-his or her interest in the association. Each prospective 1960
2910-purchaser who has entered into a contract for the purchase of an 1961
2911-interest in a cooperative is entitled, at the seller's expense, 1962
2912-to a current copy of all of the following: 1963
2913- 1. The articles of incorporation of the association. 1964
2914- 2. The bylaws and rules of the association. 1965
2915- 3. A copy of the question and answer sheet as provided in 1966
2916-s. 719.504. 1967
2917- 4. A copy of the inspector -prepared summary of the 1968
2918-milestone inspection report as described in s. 553.899 ss. 1969
2919-553.899 and 719.301(4)(p) , if applicable. 1970
2920- 5. A copy of the association's most recent structural 1971
2921-integrity reserve study or a statem ent that the association has 1972
2922-not completed a structural integrity reserve study. 1973
2923- 6. A copy of the inspection report described in s. 1974
2924-719.301(4)(p) and (q) for a turnover inspection performed on or 1975
2925-
2926-CS/CS/HB 1395 2023
2927-
2928-
2929-
2930-CODING: Words stricken are deletions; words underlined are additions.
2931-hb1395-02-c2
2932-Page 80 of 90
2933-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
2934-
2935-
2936-
2937-after July 1, 2023. 1976
2938- (d) If the association is required t o have completed a 1977
2939-milestone inspection as described in s. 553.899, a turnover 1978
2940-inspection report for a turnover inspection performed on or 1979
2941-after July 1, 2023, or a structural integrity reserve study, and 1980
2942-the association has not completed the milestone insp ection, the 1981
2943-turnover inspection report, or the structural integrity reserve 1982
2944-study, each contract entered into after December 31, 2024, for 1983
2945-the sale of a residential unit must contain in conspicuous type 1984
2946-a statement indicating that the association is requir ed to have 1985
2947-a milestone inspection, a turnover inspection report, or a 1986
2948-structural integrity reserve study and has not completed such 1987
2949-inspection, report, or study, as applicable. If the association 1988
2950-is not required to have a milestone inspection as described in 1989
2951-s. 553.899 or a structural integrity reserve study, each 1990
2952-contract entered into after December 31, 2024, for the sale of a 1991
2953-residential unit must contain in conspicuous type a statement 1992
2954-indicating that the association is not required to have a 1993
2955-milestone inspection or a structural integrity reserve study, as 1994
2956-applicable. If the association has completed a milestone 1995
2957-inspection as described in s. 553.899, a turnover inspection 1996
2958-report for a turnover inspection performed on or after July 1, 1997
2959-2023, or a structural integrity reserve study, each contract 1998
2960-entered into after December 31, 2024, for the resale of a 1999
2961-residential unit must contain in conspicuous type: 2000
2962-
2963-CS/CS/HB 1395 2023
2964-
2965-
2966-
2967-CODING: Words stricken are deletions; words underlined are additions.
2968-hb1395-02-c2
2969-Page 81 of 90
2970-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
2971-
2972-
2973-
2974- 2001
2975-THE BUYER HEREBY ACKNOWLEDGES THAT THE BUYER HAS BEEN 2002
2976-PROVIDED A CURRENT COPY OF THE INSPECTOR -PREPARED 2003
2977-SUMMARY OF THE MILESTONE INSPECTION REPORT AS 2004
2978-DESCRIBED IN SECTION 553.899, FLORIDA STATUTES, IF 2005
2979-APPLICABLE; A COPY OF THE TURNOVER INSPECTION REPORT 2006
2980-DESCRIBED IN SECTION 719.301(4)(p) AND (q), FLORIDA 2007
2981-STATUTES, IF APPLICABLE; AND A COPY OF THE 2008
2982-ASSOCIATION'S MOST RECENT STRUCTURAL INTEGRITY RESERVE 2009
2983-STUDY DESCRIBED IN SECTIONS 719.103(24) AND 2010
2984-719.106(1)(k), FLORIDA STATUTES, IF APPLICABLE, MORE 2011
2985-THAN 3 DAYS, EXCLUDING SATURDAYS, SUNDAYS, AND LEGAL 2012
2986-HOLIDAYS, BEFORE THE EXECUTION OF THIS CONTRACT. 2013
2987- 2014
2988-THIS AGREEMENT IS VOIDABLE BY THE BUYER BY DELIVERING 2015
2989-WRITTEN NOTICE OF THE BUYER'S INTENTION TO CANCEL 2016
2990-WITHIN 3 DAYS, EXCLUDING SATURDAYS, SUNDAYS, AND LEGAL 2017
2991-HOLIDAYS, AFTER THE DATE OF EXECUTION OF THIS 2018
2992-AGREEMENT BY THE BUYER AND THE BUYER'S RECEIPT OF A 2019
2993-CURRENT COPY OF THE INSPECTOR-PREPARED SUMMARY OF THE 2020
2994-MILESTONE INSPECTION REPORT AS DESCRIBED IN SECTION 2021
2995-553.899, FLORIDA STATUTES, IF APPLICABLE; A COPY OF 2022
2996-THE TURNOVER INSPECTION REPORT DESCRIBED IN SECTION 2023
2997-719.301(4)(p) AND (q), FLORIDA STATUTES, IF 2024
2998-APPLICABLE; AND A COPY OF THE ASSOCIATION'S MOST 2025
2999-
3000-CS/CS/HB 1395 2023
3001-
3002-
3003-
3004-CODING: Words stricken are deletions; words underlined are additions.
3005-hb1395-02-c2
3006-Page 82 of 90
3007-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
3008-
3009-
3010-
3011-RECENT STRUCTURAL INTEGRITY RESERVE STUDY DESCRIBED IN 2026
3012-SECTIONS 719.103(24) AND 719.106(1)(k), FLORIDA 2027
3013-STATUTES, IF APPLICABLE. ANY PURPORTED WAIVER OF THESE 2028
3014-VOIDABILITY RIGHTS SHALL BE OF NO EFFECT. THE BUYER 2029
3015-MAY EXTEND THE TIME FOR CLOSING FOR UP TO 3 DAYS, 2030
3016-EXCLUDING SATURDAYS, SUNDAYS, AND LEGAL HOLIDAYS, 2031
3017-AFTER THE BUYER RECEIVES A CURRENT COPY OF THE 2032
3018-INSPECTOR-PREPARED SUMMARY OF THE MILESTONE INSPECTION 2033
3019-REPORT AS DESCRIBED IN SECTION 553.899, FLORIDA 2034
3020-STATUTES; A COPY OF THE TURNOVER INSPECTION REPORT 2035
3021-DESCRIBED IN SECTION 719.301(4)(p) AND (q), FLORIDA 2036
3022-STATUTES; OR A COPY OF THE ASSOCIATION'S MOST RECENT 2037
3023-STRUCTURAL INTEGRITY RESERVE STUDY DESCRIBED IN 2038
3024-SECTIONS 719.103(24) AND 719.106(1)(k), FLORIDA 2039
3025-STATUTES, IF REQUESTED IN WRITING. THE BUYER'S RIGHT 2040
3026-TO VOID THIS AGREEMENT TERMINATES AT CLOSING. 2041
3027- 2042
3028-A contract that does not conform to the requirements of this 2043
3029-paragraph is voidable at the option of the purchaser before 2044
3030-closing. 2045
3031- Section 17. Paragraph (a) of subsection (7) and paragraph 2046
3032-(c) of subsection (20) of section 719.504, Florida Statutes, are 2047
3033-amended to read: 2048
3034- 719.504 Prospectus or offering circular. —Every developer 2049
3035-of a residential cooperative which contains more than 20 2050
3036-
3037-CS/CS/HB 1395 2023
3038-
3039-
3040-
3041-CODING: Words stricken are deletions; words underlined are additions.
3042-hb1395-02-c2
3043-Page 83 of 90
3044-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
3045-
3046-
3047-
3048-residential units, or which is part of a gro up of residential 2051
3049-cooperatives which will be served by property to be used in 2052
3050-common by unit owners of more than 20 residential units, shall 2053
3051-prepare a prospectus or offering circular and file it with the 2054
3052-Division of Florida Condominiums, Timeshares, and Mo bile Homes 2055
3053-prior to entering into an enforceable contract of purchase and 2056
3054-sale of any unit or lease of a unit for more than 5 years and 2057
3055-shall furnish a copy of the prospectus or offering circular to 2058
3056-each buyer. In addition to the prospectus or offering cir cular, 2059
3057-each buyer shall be furnished a separate page entitled 2060
3058-"Frequently Asked Questions and Answers," which must be in 2061
3059-accordance with a format approved by the division. This page 2062
3060-must, in readable language: inform prospective purchasers 2063
3061-regarding their voting rights and unit use restrictions, 2064
3062-including restrictions on the leasing of a unit; indicate 2065
3063-whether and in what amount the unit owners or the association is 2066
3064-obligated to pay rent or land use fees for recreational or other 2067
3065-commonly used facilities; c ontain a statement identifying that 2068
3066-amount of assessment which, pursuant to the budget, would be 2069
3067-levied upon each unit type, exclusive of any special 2070
3068-assessments, and which identifies the basis upon which 2071
3069-assessments are levied, whether monthly, quarterly, or 2072
3070-otherwise; state and identify any court cases in which the 2073
3071-association is currently a party of record in which the 2074
3072-association may face liability in excess of $100,000; and state 2075
3073-
3074-CS/CS/HB 1395 2023
3075-
3076-
3077-
3078-CODING: Words stricken are deletions; words underlined are additions.
3079-hb1395-02-c2
3080-Page 84 of 90
3081-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
3082-
3083-
3084-
3085-whether membership in a recreational facilities association is 2076
3086-mandatory and, if so, identify the fees currently charged per 2077
3087-unit type. The division shall by rule require such other 2078
3088-disclosure as in its judgment will assist prospective 2079
3089-purchasers. The prospectus or offering circular may include more 2080
3090-than one cooperative, althou gh not all such units are being 2081
3091-offered for sale as of the date of the prospectus or offering 2082
3092-circular. The prospectus or offering circular must contain the 2083
3093-following information: 2084
3094- (7) A description of the recreational and other facilities 2085
3095-that will be used in common with other cooperatives, community 2086
3096-associations, or planned developments which require the payment 2087
3097-of the maintenance and expenses of such facilities, directly or 2088
3098-indirectly, by the unit owners. The description shall include, 2089
3099-but not be limited to, the following: 2090
3100- (a) Each building and facility committed to be built and a 2091
3101-summary description of the structural integrity of each building 2092
3102-for which reserves are required pursuant to s. 719.106(1)(k) . 2093
3103- 2094
3104-Descriptions shall include location, areas, ca pacities, numbers, 2095
3105-volumes, or sizes and may be stated as approximations or 2096
3106-minimums. 2097
3107- (20) An estimated operating budget for the cooperative and 2098
3108-the association, and a schedule of the unit owner's expenses 2099
3109-shall be attached as an exhibit and shall contai n the following 2100
3110-
3111-CS/CS/HB 1395 2023
3112-
3113-
3114-
3115-CODING: Words stricken are deletions; words underlined are additions.
3116-hb1395-02-c2
3117-Page 85 of 90
3118-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
3119-
3120-
3121-
3122-information: 2101
3123- (c) The estimated items of expenses of the cooperative and 2102
3124-the association, except as excluded under paragraph (b), 2103
3125-including, but not limited to, the following items, which shall 2104
3126-be stated as an association expense collectib le by assessments 2105
3127-or as unit owners' expenses payable to persons other than the 2106
3128-association: 2107
3129- 1. Expenses for the association and cooperative: 2108
3130- a. Administration of the association. 2109
3131- b. Management fees. 2110
3132- c. Maintenance. 2111
3133- d. Rent for recreational and o ther commonly used areas. 2112
3134- e. Taxes upon association property. 2113
3135- f. Taxes upon leased areas. 2114
3136- g. Insurance. 2115
3137- h. Security provisions. 2116
3138- i. Other expenses. 2117
3139- j. Operating capital. 2118
3140- k. Reserves for all applicable items referenced in s. 2119
3141-719.106(1)(k). 2120
3142- l. Fee payable to the division. 2121
3143- 2. Expenses for a unit owner: 2122
3144- a. Rent for the unit, if subject to a lease. 2123
3145- b. Rent payable by the unit owner directly to the lessor 2124
3146-or agent under any recreational lease or lease for the use of 2125
3147-
3148-CS/CS/HB 1395 2023
3149-
3150-
3151-
3152-CODING: Words stricken are deletions; words underlined are additions.
3153-hb1395-02-c2
3154-Page 86 of 90
3155-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
3156-
3157-
3158-
3159-commonly used areas, which use and payment are a mandatory 2126
3160-condition of ownership and are not included in the common 2127
3161-expense or assessments for common maintenance paid by the unit 2128
3162-owners to the association. 2129
3163- Section 18. Subsection (2) of section 558.002, Florida 2130
3164-Statutes, is amended to read: 2131
3165- 558.002 Definitions. —As used in this chapter, the term: 2132
3166- (2) "Association" has the same meaning as in s. 718.103, 2133
3167-s. 719.103 s. 718.103(2), s. 719.103(2) , s. 720.301(9), or s. 2134
3168-723.075. 2135
3169- Section 19. Paragraph (b) of subsection (1) of sec tion 2136
3170-718.116, Florida Statutes, is amended to read: 2137
3171- 718.116 Assessments; liability; lien and priority; 2138
3172-interest; collection. — 2139
3173- (1) 2140
3174- (b)1. The liability of a first mortgagee or its successor 2141
3175-or assignees who acquire title to a unit by foreclosure or by 2142
3176-deed in lieu of foreclosure for the unpaid assessments that 2143
3177-became due before the mortgagee's acquisition of title is 2144
3178-limited to the lesser of: 2145
3179- a. The unit's unpaid common expenses and regular periodic 2146
3180-assessments which accrued or came due during the 12 months 2147
3181-immediately preceding the acquisition of title and for which 2148
3182-payment in full has not been received by the association; or 2149
3183- b. One percent of the original mortgage debt. The 2150
3184-
3185-CS/CS/HB 1395 2023
3186-
3187-
3188-
3189-CODING: Words stricken are deletions; words underlined are additions.
3190-hb1395-02-c2
3191-Page 87 of 90
3192-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
3193-
3194-
3195-
3196-provisions of this paragraph apply only if the first mortgagee 2151
3197-joined the association as a defendant in the foreclosure action. 2152
3198-Joinder of the association is not required if, on the date the 2153
3199-complaint is filed, the association was dissolved or did not 2154
3200-maintain an office or agent for service of process at a location 2155
3201-which was known to or reasonably discoverable by the mortgagee. 2156
3202- 2. An association, or its successor or assignee, that 2157
3203-acquires title to a unit through the foreclosure of its lien for 2158
3204-assessments is not liable for any unpaid assessments, late fees, 2159
3205-interest, or reasona ble attorney's fees and costs that came due 2160
3206-before the association's acquisition of title in favor of any 2161
3207-other association, as defined in s. 718.103 s. 718.103(2) or s. 2162
3208-720.301(9), which holds a superior lien interest on the unit. 2163
3209-This subparagraph is int ended to clarify existing law. 2164
3210- Section 20. Paragraph (d) of subsection (2) of section 2165
3211-720.3085, Florida Statutes, is amended to read: 2166
3212- 720.3085 Payment for assessments; lien claims. — 2167
3213- (2) 2168
3214- (d) An association, or its successor or assignee, that 2169
3215-acquires title to a parcel through the foreclosure of its lien 2170
3216-for assessments is not liable for any unpaid assessments, late 2171
3217-fees, interest, or reasonable attorney's fees and costs that 2172
3218-came due before the association's acquisition of title in favor 2173
3219-of any other association, as defined in s. 718.103 s. 718.103(2) 2174
3220-or s. 720.301(9), which holds a superior lien interest on the 2175
3221-
3222-CS/CS/HB 1395 2023
3223-
3224-
3225-
3226-CODING: Words stricken are deletions; words underlined are additions.
3227-hb1395-02-c2
3228-Page 88 of 90
3229-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
3230-
3231-
3232-
3233-parcel. This paragraph is intended to clarify existing law. 2176
3234- Section 21. Effective July 1, 2027, for the purpose of 2177
3235-incorporating the amendments made by this act to section 2178
3236-718.1255, Florida Statutes, in a reference thereto, section 2179
3237-719.1255, Florida Statutes, is reenacted to read: 2180
3238- 719.1255 Alternative resolution of disputes. —The Division 2181
3239-of Florida Condominiums, Timeshares, and Mobile Homes of the 2182
3240-Department of Business and Professional Regulation shall provide 2183
3241-for alternative dispute resolution in accordance with s. 2184
3242-718.1255. 2185
3243- Section 22. Paragraph (f) of subsection (1) of section 2186
3244-718.501, Florida Statutes, is reenacted to read: 2187
3245- 718.501 Authority, responsibility, and duties of Division 2188
3246-of Florida Condominiums, Timeshares, and Mobile Homes. — 2189
3247- (1) The division may enforce and ensure compliance with 2190
3248-this chapter and rules relating to the development, 2191
3249-construction, sale, lease, owner ship, operation, and management 2192
3250-of residential condominium units and complaints related to the 2193
3251-procedural completion of milestone inspections under s. 553.899. 2194
3252-In performing its duties, the division has complete jurisdiction 2195
3253-to investigate complaints and e nforce compliance with respect to 2196
3254-associations that are still under developer control or the 2197
3255-control of a bulk assignee or bulk buyer pursuant to part VII of 2198
3256-this chapter and complaints against developers, bulk assignees, 2199
3257-or bulk buyers involving improper turnover or failure to 2200
3258-
3259-CS/CS/HB 1395 2023
3260-
3261-
3262-
3263-CODING: Words stricken are deletions; words underlined are additions.
3264-hb1395-02-c2
3265-Page 89 of 90
3266-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
3267-
3268-
3269-
3270-turnover, pursuant to s. 718.301. However, after turnover has 2201
3271-occurred, the division has jurisdiction to investigate 2202
3272-complaints related only to financial issues, elections, and the 2203
3273-maintenance of and unit owner access to association records 2204
3274-under s. 718.111(12), and the procedural completion of 2205
3275-structural integrity reserve studies under s. 718.112(2)(g). 2206
3276- (f) The division may adopt rules to administer and enforce 2207
3277-this chapter. 2208
3278- Section 23. Paragraph (f) of subsection (1) of sectio n 2209
3279-719.501, Florida Statutes, is reenacted to read: 2210
3280- 719.501 Powers and duties of Division of Florida 2211
3281-Condominiums, Timeshares, and Mobile Homes. — 2212
3282- (1) The Division of Florida Condominiums, Timeshares, and 2213
3283-Mobile Homes of the Department of Business and Pr ofessional 2214
3284-Regulation, referred to as the "division" in this part, in 2215
3285-addition to other powers and duties prescribed by chapter 718, 2216
3286-has the power to enforce and ensure compliance with this chapter 2217
3287-and adopted rules relating to the development, constructio n, 2218
3288-sale, lease, ownership, operation, and management of residential 2219
3289-cooperative units; complaints related to the procedural 2220
3290-completion of the structural integrity reserve studies under s. 2221
3291-719.106(1)(k); and complaints related to the procedural 2222
3292-completion of milestone inspections under s. 553.899. In 2223
3293-performing its duties, the division shall have the following 2224
3294-powers and duties: 2225
3295-
3296-CS/CS/HB 1395 2023
3297-
3298-
3299-
3300-CODING: Words stricken are deletions; words underlined are additions.
3301-hb1395-02-c2
3302-Page 90 of 90
3303-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
3304-
3305-
3306-
3307- (f) The division has authority to adopt rules pursuant to 2226
3308-ss. 120.536(1) and 120.54 to implement and enforce the 2227
3309-provisions of this chapter. 2228
3310- Section 24. For the 2023-2024 fiscal year, the sums of 2229
3311-$1,301,928 in recurring funds and $67,193 in nonrecurring funds 2230
3312-from the Division of Florida Condominiums, Timeshares, and 2231
3313-Mobile Homes Trust Fund are appropriated to the Department of 2232
3314-Business and Professional Regulation, and 10 full -time 2233
3315-equivalent positions with associated salary rate of 487,264 are 2234
3316-authorized for the purpose of implementing this act. 2235
3317- Section 25. Except as otherwise expressly provided in this 2236
3318-act, this act shall t ake effect upon becoming a law. 2237
1827+contract entered into on or after January 1, 2025, for the sale 1226
1828+of a residential unit must contain in conspicuous type a 1227
1829+statement indicating that the association is required to have a 1228
1830+milestone inspection or a structural integrity reserve study and 1229
1831+the association has failed to complete such inspection or study, 1230
1832+as applicable. 1231
1833+ 2. If the association is required to have a mil estone 1232
1834+inspection as described in ss. 553.899 and 719.106(1)(l) or a 1233
1835+structural integrity reserve study as described in s. 1234
1836+719.106(1)(k), and the association has completed such inspection 1235
1837+or study, each contract entered into on or after January 1, 1236
1838+2025, for the sale of a residential unit must contain a copy of 1237
1839+the most recent milestone inspection report or structural 1238
1840+integrity reserve study, as applicable. 1239
1841+ 3. If the association is not required to have a milestone 1240
1842+inspection as described in ss. 553.899 and 719.106(1)(l) or a 1241
1843+structural integrity reserve study as described in s. 1242
1844+719.106(1)(k), each contract entered into on or after January 1, 1243
1845+2025, for the sale of a residential unit must contain in 1244
1846+conspicuous type a statement indicating that the association is 1245
1847+not required to have a milestone inspection or a structural 1246
1848+integrity reserve study, as applicable. 1247
1849+ Section 15. Except as otherwise expressly provided in this 1248
1850+act, this act shall take effect July 1, 2023. 1249