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F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
A bill to be entitled 1
An act relating to the management and safety of 2
condominium and cooperative buildings; amending s. 3
468.4334, F.S.; revising the circumstances under which 4
community association managers or management firms 5
must comply with a specified provision; amending s. 6
553.899, F.S.; revising legislative findings; revising 7
the definition of the terms "milestone inspection" and 8
"substantial structural deterioration"; revising which 9
buildings must have milestone inspections performed; 10
revising the deadline for milestone i nspections of 11
certain buildings; authorizing local enforcement 12
agencies to extend deadlines for milestone inspections 13
under certain circumstances; authorizing local 14
enforcement agencies to accept certain inspection 15
reports in lieu of a milestone inspection report under 16
certain circumstances; specifying when certain 17
buildings must have a subsequent milestone inspection; 18
revising who has responsibility for arranging and 19
completing milestone inspections; specifying that 20
certain expenses may be recovered from c ertain owners; 21
revising requirements relating to written notice of 22
required inspections; requiring licensed architects or 23
engineers who perform milestone inspections to submit 24
a specified progress report to a local enforcement 25
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agency within a specified tim eframe under certain 26
circumstances; specifying that associations must 27
distribute copies of certain summaries of an 28
inspection report within a specified timeframe and in 29
a specified manner; authorizing municipal governing 30
bodies to adopt certain ordinances relating to 31
association repairs; requiring the Florida Building 32
Commission to adopt rules to establish a certain 33
program by a specified date; providing requirements 34
for such program; conforming provisions to changes 35
made by the act; amending s. 627.351, F. S.; revising 36
requirements relating to the purchase of flood 37
insurance as a condition for maintaining certain 38
policies issued by the Citizens Property Insurance 39
Corporation; amending s. 718.103, F.S.; defining the 40
term "alternative funding method"; revising the 41
definition of the term "structural integrity reserve 42
study"; amending s. 718.111, F.S.; revising rights 43
relating to the official records of a condominium 44
association;; amending s. 718.112, F.S.; revising 45
requirements relating to budget meetings; revis ing 46
condominium association reserve account requirements; 47
revising requirements relating to waiving reserve 48
requirements or providing less reserves than required 49
by law; revising requirements relating to using 50
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reserve funds or interest accrued on reserve f unds for 51
certain purposes; revising requirements for structural 52
integrity reserve studies and mandatory milestone 53
inspections; providing applicability; conforming 54
provisions to changes made by the act; amending s. 55
718.1255, F.S.; revising the definition of the term 56
"dispute"; specifying that certain disputes are not 57
subject to nonbinding arbitration and must be 58
submitted to presuit mediation; amending s. 718.113, 59
F.S.; revising requirements relating to the 60
maintenance, repair, and replacement of common 61
elements and condominium property; amending s. 62
718.301, F.S.; revising items that developers are 63
required to deliver to an association upon 64
relinquishing control of the association; amending s. 65
718.503, F.S.; revising the documents developers are 66
required to provide to prospective buyers or lessees; 67
revising the documents that prospective purchasers are 68
entitled to when purchasing a condominium unit from a 69
unit owner; requiring specified disclosures relating 70
to milestone inspections, turnover inspection reports , 71
and structural integrity reserve studies for certain 72
contracts entered into after a specified date; 73
amending s. 718.504, F.S.; revising requirements for 74
prospectuses and offering circulars; amending s. 75
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719.103, F.S.; revising the definition of the term 76
"structural integrity reserve study"; amending s. 77
719.104, F.S.; revising rights relating to the 78
official records of a cooperative association; 79
providing maintenance requirements for cooperative 80
associations; providing requirements relating to the 81
maintenance, repair, and replacement of common 82
elements and cooperative property; amending s. 83
719.106, F.S.; revising requirements relating to 84
budget procedures; revising cooperative association 85
reserve account requirements; revising requirements 86
relating to waiving reserve requirements or providing 87
less reserves than required by law; revising a 88
prohibition on using reserve funds or interest accrued 89
on reserve funds for certain purposes; revising 90
requirements for structural integrity reserve studies 91
and mandatory milestone inspections; providing 92
applicability; conforming provisions to changes made 93
by the act; amending s. 719.301, F.S.; revising items 94
that developers are required to deliver to an 95
association upon relinquishing control of the 96
association; amending s. 7 19.503, F.S.; revising the 97
types of documents developers are required to provide 98
to prospective buyers and lessees; revising the 99
documents that a prospective purchaser is entitled to 100
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when purchasing an interest in a cooperative from a 101
unit owner; requiring specified disclosures relating 102
to milestone inspections, turnover inspection reports, 103
and structural integrity reserve studies for certain 104
contracts entered into after a specified date; 105
amending s. 719.504, F.S.; revising requirements for 106
prospectuses and offering circulars; amending ss. 107
558.002, 718.116, and 720.3085, F.S.; conforming 108
cross-references; reenacting s. 719.1255, F.S., 109
relating to alternative resolution of disputes, to 110
incorporate amendments made to s. 718.1255, F.S., in a 111
reference thereto; reenacting ss. 718.501(1)(f) and 112
719.501(1)(f), F.S., relating to the rulemaking 113
authority of the Division of Florida Condominiums, 114
Timeshares, and Mobile Homes of the Department of 115
Business and Professional Regulation; providing 116
appropriations and positio ns; providing effective 117
dates. 118
119
Be It Enacted by the Legislature of the State of Florida: 120
121
Section 1. Paragraph (b) of subsection (1) of section 122
468.4334, Florida Statutes, is amended to read: 123
468.4334 Professional practice standards; liability. — 124
(1) 125
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(b) If a community association manager or a community 126
association management firm has a contract with a community 127
association that has a building on the association's property 128
that is subject to s. 553.899, the community association manager 129
or the community association management firm must comply with 130
that section as directed by the board. 131
Section 2. Subsections (1) through (6), paragraph (b) of 132
subsection (7), and subsections (8), (9), (11), and (12) of 133
section 553.899, Florida Statutes, are am ended to read: 134
553.899 Mandatory structural inspections for condominium 135
and cooperative buildings. — 136
(1) The Legislature finds that maintaining the structural 137
integrity of a building throughout the its service life of the 138
building is of paramount import ance in order to ensure that 139
buildings are structurally sound so as to not pose a threat to 140
the public health, safety, or welfare. As such, the Legislature 141
finds that the imposition of a statewide structural inspection 142
program for aging condominium and coo perative buildings in this 143
state is necessary to ensure that such buildings are safe for 144
continued use. 145
(2) As used in this section, the terms: 146
(a) "Milestone inspection" means a structural inspection 147
of a building, including an inspection of load -bearing elements 148
walls and the primary structural members and primary structural 149
systems as those terms are defined in s. 627.706, by an a 150
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licensed architect licensed under chapter 481 or an engineer 151
licensed under chapter 471 and authorized to practice in thi s 152
state for the purposes of attesting to the life safety and 153
adequacy of the structural components of the building and, to 154
the extent reasonably possible, determining the general 155
structural condition of the building as it affects the safety of 156
such building, including a determination of any necessary 157
maintenance, repair, or replacement of any structural component 158
of the building. The purpose of such inspection is not to 159
determine if the condition of an existing building is in 160
compliance with the Florida Bui lding Code or the firesafety 161
code. Milestone inspection services may be provided by a team of 162
professionals with a licensed architect or engineer acting as a 163
registered design professional who is responsible for all work 164
and reports signed and sealed by th e appropriate qualified team 165
member. 166
(b) "Substantial structural deterioration" means 167
substantial structural distress or substantial structural 168
weakness that negatively affects a building's general structural 169
condition and integrity. The term does not in clude surface 170
imperfections such as cracks, distortion, sagging, deflections, 171
misalignment, signs of leakage, or peeling of finishes unless 172
the licensed engineer or architect performing the phase one or 173
phase two inspection determines that such surface imp erfections 174
are a sign of substantial structural deterioration. 175
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(3)(a) A building with one residential unit or more which 176
is three stories or more in height as determined by the Florida 177
Building Code and subject, in whole or in part, to the 178
condominium or cooperative form of ownership as a residential or 179
mixed-use a condominium association under chapter 718 or and a 180
residential cooperative association under chapter 719 must have 181
a milestone inspection performed for each building that is three 182
stories or more in height by December 31 of the year in which 183
the building reaches 25 30 years of age, based on the date the 184
certificate of occupancy for the building was issued, and every 185
10 years thereafter. If a building reaches 25 years of age 186
before July 1, 2022, the building's initial milestone inspection 187
must be performed before December 31, 2024. If a building 188
reaches 25 years of age on or after July 1, 2022, but before 189
December 31, 2024, the building's initial milestone inspection 190
must be performed before Decem ber 31, 2025. If the date of 191
issuance of a building's certificate of occupancy is not 192
available, the date of issuance shall be the date of occupancy 193
evidenced in any record of the local building official. 194
(b) The local enforcement agency may extend the d eadline 195
for a building's initial milestone inspection upon a showing of 196
good cause by the association or owner of the building that the 197
association or owner has entered into a contract with a licensed 198
architect or engineer to perform the milestone inspecti on but 199
the inspection cannot reasonably be completed before the 200
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deadline or that other circumstances exist which justify an 201
extension. 202
(c) The local enforcement agency may accept an inspection 203
report prepared by a licensed engineer or architect for a 204
structural integrity and condition inspection of a building 205
performed before July 1, 2022, if the inspection and inspection 206
report substantially comply with the requirements of this 207
section. Notwithstanding when such inspection was completed, the 208
condominium or cooperative association must comply with the unit 209
owner notice requirements in subsection (9). The inspection for 210
which an inspection report is accepted by the local enforcement 211
agency under this paragraph is deemed a milestone inspection for 212
the applicable requirements in chapters 718 and 719. If a 213
previous inspection and inspection report is accepted by the 214
local enforcement agency under this paragraph, the deadline for 215
the building's subsequent 10 -year milestone inspection is based 216
on the date of the previously accepted inspection report. 217
(4) The milestone inspection must be arranged and 218
completed by a condominium or cooperative association. If the 219
building is located within 3 miles of a coastline as defined in 220
s. 376.031, the condominium association or cooperative 221
association must have a milestone inspection performed by 222
December 31 of the year in which the building reaches 25 years 223
of age, based on the date the certificate of occupancy for the 224
building was issued, and every 10 years thereafter. The 225
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condominium association or cooperative association and the owner 226
of any portion of the building which is not subject to the 227
condominium or cooperative form of ownership are each must 228
arrange for the milestone inspection to be performed and is 229
responsible for ensuring compliance with the requirements of 230
this section. The condominium association or cooperative 231
association is responsible for all costs associated with the 232
milestone inspection. However, expenses may be recovered for 233
such inspection from unit own ers or other owners in accordance 234
with the general expense allocations of the documents governing 235
the property. This section subsection does not apply to a 236
single-family, two-family, or three-family dwelling with three 237
or fewer habitable stories above grou nd. 238
(4) If a milestone inspection is required under this 239
section and the building's certificate of occupancy was issued 240
on or before July 1, 1992, the building's initial milestone 241
inspection must be performed before December 31, 2024. If the 242
date of issuance for the certificate of occupancy is not 243
available, the date of issuance of the building's certificate of 244
occupancy shall be the date of occupancy evidenced in any record 245
of the local building official. 246
(5) Upon determining that a building must have a milestone 247
inspection, the local enforcement agency must provide written 248
notice of such required inspection to the condominium 249
association or cooperative association and the owner of any 250
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portion of the building which is not subject to the condominium 251
or cooperative form of ownership, as applicable, by certified 252
mail, return receipt requested. The condominium or cooperative 253
association must notify the unit owners of the required 254
milestone inspection and the date that the milestone inspection 255
must be completed within 14 days after receipt of the written 256
notice from the local enforcement agency. Such notice may be 257
provided by electronic submission to unit owners who consent to 258
receive notice by electronic submission or by posting the notice 259
on the association's website. 260
(6) Phase one of the milestone inspection must be 261
completed within 180 days after the condominium association, 262
cooperative association, or owner of the building receives 263
receiving the written notice under subsection (5) , the 264
condominium association or cooperative association must complete 265
phase one of the milestone inspection . For purposes of this 266
section, completion of phase one of the milestone inspection 267
means the licensed engineer or architect who performed the phase 268
one inspection submitted the inspection report by e -mail, United 269
States Postal Service, or commercial delivery service to the 270
local enforcement agency. 271
(7) A milestone inspection consists of two phases: 272
(b) A phase two of the milestone inspection must be 273
performed if any substantial structural deterioration is 274
identified during phase one. A phase two inspection may involve 275
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destructive or nondestructive testing at the inspector's 276
direction. The inspection may be as extensive or as limited as 277
necessary to fully assess are as of structural distress in order 278
to confirm that the building is structurally sound and safe for 279
its intended use and to recommend a program for fully assessing 280
and repairing distressed and damaged portions of the building. 281
When determining testing locat ions, the inspector must give 282
preference to locations that are the least disruptive and most 283
easily repairable while still being representative of the 284
structure. If a phase two inspection is required, the licensed 285
architect or engineer performing the phase two inspection must, 286
within 180 days after submitting the phase one inspection 287
report, submit to the local enforcement agency a phase two 288
progress report that includes a timeline for completion of the 289
phase two inspection. An inspector who completes a pha se two 290
milestone inspection shall prepare and submit an inspection 291
report pursuant to subsection (8). 292
(8) Upon completion of a phase one or phase two milestone 293
inspection, the licensed architect or engineer who performed the 294
inspection must submit a seal ed copy of the inspection report 295
with a separate summary of, at minimum, the material findings 296
and recommendations in the inspection report to the condominium 297
association or cooperative association , the owner of any portion 298
of the building which is not sub ject to the condominium or 299
cooperative form of ownership , and to the building official of 300
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the local government which has jurisdiction. The inspection 301
report must, at a minimum, meet all of the following criteria: 302
(a) Bear the seal and signature, or the e lectronic 303
signature, of the licensed engineer or architect who performed 304
the inspection. 305
(b) Indicate the manner and type of inspection forming the 306
basis for the inspection report. 307
(c) Identify any substantial structural deterioration, 308
within a reasonable professional probability based on the scope 309
of the inspection, describe the extent of such deterioration, 310
and identify any recommended repairs for such deterioration. 311
(d) State whether unsafe or dangerous conditions, as those 312
terms are defined in the Florida Building Code, were observed. 313
(e) Recommend any remedial or preventive repair for any 314
items that are damaged but are not substantial structural 315
deterioration. 316
(f) Identify and describe any items requiring further 317
inspection. 318
(9) Within 45 days after receiving the applicable 319
inspection report, the condominium or cooperative association 320
must distribute a copy of the inspector -prepared summary of the 321
inspection report to each condominium unit owner or cooperative 322
unit owner, regardless of the fi ndings or recommendations in the 323
report, by United States mail or personal delivery at the 324
mailing address, property address, or any other address of the 325
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unit owner which is provided to fulfill the association's notice 326
requirements under chapter 718 or cha pter 719, as applicable, 327
and by electronic transmission to unit owners who previously 328
consented to receive notice by electronic transmission using the 329
e-mail address or facsimile number of the unit owner which is 330
provided to fulfill the association's notic e requirements; must 331
post a copy of the inspector -prepared summary in a conspicuous 332
place on the condominium or cooperative property; and must 333
publish the full report and inspector -prepared summary on the 334
association's website, if the association is requir ed to have a 335
website. 336
(11) A board of county commissioners or municipal 337
governing body may adopt an ordinance requiring that a 338
condominium or cooperative association and any other owner who 339
is subject to this section schedule or commence repairs for 340
substantial structural deterioration within a specified 341
timeframe after the local enforcement agency receives a phase 342
two inspection report; however, such repairs must be commenced 343
within 365 days after receiving such report. If an association 344
fails to submit proof to the local enforcement agency that 345
repairs have been scheduled or have commenced for substantial 346
structural deterioration identified in a phase two inspection 347
report within the required timeframe, the local enforcement 348
agency must review and determ ine if the building is unsafe for 349
human occupancy. 350
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(12) By December 31, 2024, the Florida Building Commission 351
shall adopt rules pursuant to ss. 120.536(1) and 120.54 to 352
establish a building safety and inspection program for the 353
implementation of this sec tion within the Florida Building Code: 354
Existing Building. The building safety and inspection program 355
must, at minimum, include inspection criteria, testing 356
protocols, standardized inspection and reporting forms that are 357
adaptable to an electronic format, a nd record maintenance 358
requirements for the local enforcement agency review the 359
milestone inspection requirements under this section and make 360
recommendations, if any, to the Legislature to ensure 361
inspections are sufficient to determine the structural integr ity 362
of a building. The commission must provide a written report of 363
any recommendations to the Governor, the President of the 364
Senate, and the Speaker of the House of Representatives by 365
December 31, 2022. 366
Section 3. Paragraph (aa) of subsection (6) of se ction 367
627.351, Florida Statutes, is amended to read: 368
627.351 Insurance risk apportionment plans. — 369
(6) CITIZENS PROPERTY INSURANCE CORPORATION. — 370
(aa) Except as otherwise provided in this paragraph, the 371
corporation shall require the securing and mainta ining of flood 372
insurance as a condition of coverage of a personal lines 373
residential risk. The insured or applicant must execute a form 374
approved by the office affirming that flood insurance is not 375
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provided by the corporation and that if flood insurance is n ot 376
secured by the applicant or insured from an insurer other than 377
the corporation and in addition to coverage by the corporation, 378
the risk will not be eligible for coverage by the corporation. 379
The corporation may deny coverage of a personal lines 380
residential risk to an applicant or insured who refuses to 381
secure and maintain flood insurance. The requirement to purchase 382
flood insurance shall be implemented as follows: 383
1. Except as provided in subparagraphs 2. , and 3., and 4., 384
all personal lines residential policyholders must have flood 385
coverage in place for policies effective on or after: 386
a. January 1, 2024, for property valued at $600,000 or 387
more. 388
b. January 1, 2025, for property valued at $500,000 or 389
more. 390
c. January 1, 2026, for property valued at $ 400,000 or 391
more. 392
d. January 1, 2027, for all other personal lines 393
residential property insured by the corporation. 394
2. All personal lines residential policyholders whose 395
property insured by the corporation is located within the 396
special flood hazard area defined by the Federal Emergency 397
Management Agency must have flood coverage in place: 398
a. At the time of initial policy issuance for all new 399
personal lines residential policies issued by the corporation on 400
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or after April 1, 2023. 401
b. By the time of the policy renewal for all personal 402
lines residential policies renewing on or after July 1, 2023. 403
3. Policyholders whose policies issued by the corporation 404
do not provide coverage for the peril of wind are not required 405
to purchase flood insurance as a condit ion for maintaining their 406
policies with the corporation. 407
4. Effective on or after January 1, 2027, policyholders 408
whose policies issued by the corporation provide coverage under 409
a condominium unit owners or condominium tenant form must 410
purchase flood insurance upon issuance or renewal of their 411
policies by the corporation, unless: 412
a. The policyholder's unit is covered under a master flood 413
policy issued to someone other than the policyholder. 414
b. The policyholder resides in a condominium unit with 415
occupiable space that is not less than 40 feet above the grade 416
plane, as defined in the Florida Building Code. A unit located 417
on the fifth floor above the grade plane or higher is deemed to 418
be not less than 40 feet above the grade plane, as defined in 419
the Florida Building Code. A unit owner or a condominium 420
association may submit a certification from an engineer licensed 421
under chapter 471, a surveyor and mapper licensed under chapter 422
472, or an architect licensed under chapter 481, detailing which 423
units in the condominium association are not less than 40 feet 424
above the grade plane, as defined in the Florida Building Code, 425
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and the corporation may rely on such certification. 426
427
The flood insurance required under this paragraph must meet, at 428
a minimum, the coverage available from the National Flood 429
Insurance Program or the requirements of subparagraphs s. 430
627.715(1)(a)1., 2., and 3. 431
Section 4. Subsections (1) through (31) of section 432
718.103, Florida Statutes, are renumbered as subsections (2) 433
through (32), respec tively, present subsection (25) of that 434
section is amended, and a new subsection (1) is added to that 435
section, to read: 436
718.103 Definitions. —As used in this chapter, the term: 437
(1) "Alternative funding method" means a method approved 438
by the division for funding the capital expenditures and 439
deferred maintenance obligations for a multicondominium 440
association operating at least 25 condominiums which may 441
reasonably be expected to fully satisfy the association's 442
reserve funding obligations by the allocation o f funds in the 443
annual operating budget. 444
(26)(25) "Structural integrity reserve study" means a 445
study of the reserve funds required for future major repairs and 446
replacement of the condominium property as required under s. 447
718.112(2)(g) common areas based o n a visual inspection of the 448
common areas. A structural integrity reserve study may be 449
performed by any person qualified to perform such study. 450
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However, the visual inspection portion of the structural 451
integrity reserve study must be performed by an enginee r 452
licensed under chapter 471 or an architect licensed under 453
chapter 481. At a minimum, a structural integrity reserve study 454
must identify the common areas being visually inspected, state 455
the estimated remaining useful life and the estimated 456
replacement cost or deferred maintenance expense of the common 457
areas being visually inspected, and provide a recommended annual 458
reserve amount that achieves the estimated replacement cost or 459
deferred maintenance expense of each common area being visually 460
inspected by the end of the estimated remaining useful life of 461
each common area. 462
Section 5. Paragraph (c) of subsection (12) of section 463
718.111, Florida Statutes, is amended to read: 464
718.111 The association. — 465
(12) OFFICIAL RECORDS. — 466
(c)1. The official records of the association are open to 467
inspection by any association member and any person authorized 468
by an association member as a or the authorized representative 469
of such member at all reasonable times. The right to inspect the 470
records includes the right to make o r obtain copies, at the 471
reasonable expense, if any, of the member and the person 472
authorized by the association member as a or authorized 473
representative of such member. A renter of a unit has a right to 474
inspect and copy only the declaration of condominium, the 475
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association's bylaws and rules, and the inspection reports 476
described in ss. 553.899 and 718.301(4)(p). The association may 477
adopt reasonable rules regarding the frequency, time, location, 478
notice, and manner of record inspections and copying but may not 479
require a member to demonstrate any purpose or state any reason 480
for the inspection. The failure of an association to provide the 481
records within 10 working days after receipt of a written 482
request creates a rebuttable presumption that the association 483
willfully failed to comply with this paragraph. A unit owner who 484
is denied access to official records is entitled to the actual 485
damages or minimum damages for the association's willful failure 486
to comply. Minimum damages are $50 per calendar day for up to 10 487
days, beginning on the 11th working day after receipt of the 488
written request. The failure to permit inspection entitles any 489
person prevailing in an enforcement action to recover reasonable 490
attorney fees from the person in control of the records who, 491
directly or indirectly, knowingly denied access to the records. 492
2. Any person who knowingly or intentionally defaces or 493
destroys accounting records that are required by this chapter to 494
be maintained during the period for which such records are 495
required to be mainta ined, or who knowingly or intentionally 496
fails to create or maintain accounting records that are required 497
to be created or maintained, with the intent of causing harm to 498
the association or one or more of its members, is personally 499
subject to a civil penalty pursuant to s. 718.501(1)(d). 500
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3. The association shall maintain an adequate number of 501
copies of the declaration, articles of incorporation, bylaws, 502
and rules, and all amendments to each of the foregoing, as well 503
as the question and answer sheet as descr ibed in s. 718.504 and 504
year-end financial information required under this section, on 505
the condominium property to ensure their availability to unit 506
owners and prospective purchasers, and may charge its actual 507
costs for preparing and furnishing these docume nts to those 508
requesting the documents. An association shall allow a member or 509
his or her authorized representative to use a portable device, 510
including a smartphone, tablet, portable scanner, or any other 511
technology capable of scanning or taking photographs , to make an 512
electronic copy of the official records in lieu of the 513
association's providing the member or his or her authorized 514
representative with a copy of such records. The association may 515
not charge a member or his or her authorized representative for 516
the use of a portable device. Notwithstanding this paragraph, 517
the following records are not accessible to unit owners: 518
a. Any record protected by the lawyer -client privilege as 519
described in s. 90.502 and any record protected by the work -520
product privilege, including a record prepared by an association 521
attorney or prepared at the attorney's express direction, which 522
reflects a mental impression, conclusion, litigation strategy, 523
or legal theory of the attorney or the association, and which 524
was prepared exclusively for civil or criminal litigation or for 525
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adversarial administrative proceedings, or which was prepared in 526
anticipation of such litigation or proceedings until the 527
conclusion of the litigation or proceedings. 528
b. Information obtained by an association in connection 529
with the approval of the lease, sale, or other transfer of a 530
unit. 531
c. Personnel records of association or management company 532
employees, including, but not limited to, disciplinary, payroll, 533
health, and insurance records. For purposes of th is sub-534
subparagraph, the term "personnel records" does not include 535
written employment agreements with an association employee or 536
management company, or budgetary or financial records that 537
indicate the compensation paid to an association employee. 538
d. Medical records of unit owners. 539
e. Social security numbers, driver license numbers, credit 540
card numbers, e-mail addresses, telephone numbers, facsimile 541
numbers, emergency contact information, addresses of a unit 542
owner other than as provided to fulfill the as sociation's notice 543
requirements, and other personal identifying information of any 544
person, excluding the person's name, unit designation, mailing 545
address, property address, and any address, e -mail address, or 546
facsimile number provided to the association to fulfill the 547
association's notice requirements. Notwithstanding the 548
restrictions in this sub -subparagraph, an association may print 549
and distribute to unit owners a directory containing the name, 550
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unit address, and all telephone numbers of each unit owner. 551
However, an owner may exclude his or her telephone numbers from 552
the directory by so requesting in writing to the association. An 553
owner may consent in writing to the disclosure of other contact 554
information described in this sub -subparagraph. The association 555
is not liable for the inadvertent disclosure of information that 556
is protected under this sub -subparagraph if the information is 557
included in an official record of the association and is 558
voluntarily provided by an owner and not requested by the 559
association. 560
f. Electronic security measures that are used by the 561
association to safeguard data, including passwords. 562
g. The software and operating system used by the 563
association which allow the manipulation of data, even if the 564
owner owns a copy of the same softwa re used by the association. 565
The data is part of the official records of the association. 566
h. All affirmative acknowledgments made pursuant to s. 567
718.121(4)(c). 568
Section 6. Paragraphs (e), (f), (g), and (h) of subsection 569
(2) of section 718.112, Florida Statutes, are amended to read: 570
718.112 Bylaws.— 571
(2) REQUIRED PROVISIONS. —The bylaws shall provide for the 572
following and, if they do not do so, shall be deemed to include 573
the following: 574
(e) Budget meeting.— 575
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1. Any meeting at which a proposed annual budget of an 576
association will be considered by the board or unit owners shall 577
be open to all unit owners. At least 14 days before prior to 578
such a meeting, the board shall hand deliver to each unit owner, 579
mail to each unit owner at the address last furnishe d to the 580
association by the unit owner, or electronically transmit to the 581
location furnished by the unit owner for that purpose a notice 582
of such meeting and a copy of the proposed annual budget. An 583
officer or manager of the association, or other person pro viding 584
notice of such meeting, shall execute an affidavit evidencing 585
compliance with such notice requirement, and such affidavit 586
shall be filed among the official records of the association. 587
2.a. If a board adopts in any fiscal year an annual budget 588
that which requires assessments against unit owners which exceed 589
115 percent of assessments for the preceding fiscal year, the 590
board shall conduct a special meeting of the unit owners to 591
consider a substitute budget if the board receives, within 21 592
days after adoption of the annual budget, a written request for 593
a special meeting from at least 10 percent of all voting 594
interests. The special meeting shall be conducted within 60 days 595
after adoption of the annual budget. At least 14 days before 596
prior to such special meeting, the board shall hand deliver to 597
each unit owner, or mail to each unit owner at the address last 598
furnished to the association, a notice of the meeting. An 599
officer or manager of the association, or other person providing 600
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notice of such meeting sha ll execute an affidavit evidencing 601
compliance with this notice requirement, and such affidavit 602
shall be filed among the official records of the association. 603
Unit owners may consider and adopt a substitute budget at the 604
special meeting. A substitute budget is adopted if approved by a 605
majority of all voting interests unless the bylaws require 606
adoption by a greater percentage of voting interests. If there 607
is not a quorum at the special meeting or a substitute budget is 608
not adopted, the annual budget previously adopted by the board 609
shall take effect as scheduled. 610
b. Any determination of whether assessments exceed 115 611
percent of assessments for the prior fiscal year shall exclude 612
any authorized provision for reasonable reserves for repair or 613
replacement of the condominium property, anticipated expenses of 614
the association which the board does not expect to be incurred 615
on a regular or annual basis, insurance premiums, or assessments 616
for betterments to the condominium property. 617
c. If the developer controls the board, assessments shall 618
not exceed 115 percent of assess ments for the prior fiscal year 619
unless approved by a majority of all voting interests. 620
(f) Annual budget.— 621
1. The proposed annual budget of estimated revenues and 622
expenses must be detailed and must show the amounts budgeted by 623
accounts and expense clas sifications, including, at a minimum, 624
any applicable expenses listed in s. 718.504(21). The board 625
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shall adopt the annual budget at least 14 days before the start 626
of the association's fiscal year. In the event that the board 627
fails to timely adopt the annual budget a second time, it is 628
deemed a minor violation and the prior year's budget shall 629
continue in effect until a new budget is adopted. A 630
multicondominium association must adopt a separate budget of 631
common expenses for each condominium the association op erates 632
and must adopt a separate budget of common expenses for the 633
association. In addition, if the association maintains limited 634
common elements with the cost to be shared only by those 635
entitled to use the limited common elements as provided for in 636
s. 718.113(1), the budget or a schedule attached to it must show 637
the amount budgeted for this maintenance. If, after turnover of 638
control of the association to the unit owners, any of the 639
expenses listed in s. 718.504(21) are not applicable, they do 640
not need to be listed. 641
2.a. In addition to annual operating expenses, the budget 642
must include reserve accounts for capital expenditures and 643
deferred maintenance. These accounts must include, but are not 644
limited to, roof replacement, building painting, and pavement 645
resurfacing, regardless of the amount of deferred maintenance 646
expense or replacement cost, and any other item that has a 647
deferred maintenance expense or replacement cost that exceeds 648
$10,000. The amount to be reserved for an item is determined by 649
the association's most recent structural integrity reserve study 650
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that must be completed by December 31, 2024. If the amount to be 651
reserved for an item is not in the association's initial or most 652
recent structural integrity reserve study or the association has 653
not completed a structural integrity reserve study, the amount 654
must be computed using a formula based upon estimated remaining 655
useful life and estimated replacement cost or deferred 656
maintenance expense of the reserve item. In a budget adopted by 657
an association that is required to obtain a structural integrity 658
reserve study, reserves must be maintained for the items 659
identified in paragraph (g), and the reserve amount for such 660
items must be based on the findings and recommendations of the 661
association's most recent structural integrity reserve study. 662
With respect to items for which an estimated remaining useful 663
life is not readily ascertainable or which have an estimated 664
remaining useful life of greater than 25 years, an association 665
is not required to reserve replac ement costs for such items, but 666
an association must reserve the amount of deferred maintenance 667
expense, if any, which is recommended by the structural 668
integrity reserve study for such items. The association may 669
adjust replacement reserve assessments annual ly to take into 670
account an inflation adjustment and any changes in estimates or 671
extension of the useful life of a reserve item caused by 672
deferred maintenance. The members of a unit -owner-controlled 673
association may determine, by a majority vote at a duly ca lled 674
meeting of the association, to provide no reserves or less 675
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reserves than required by this subsection. Effective December 676
31, 2024, the members of a unit -owner-controlled association 677
that must obtain a structural integrity reserve study may not 678
determine to provide no reserves or less reserves than required 679
by this subsection for items listed in paragraph (g) , except 680
that members of an association operating a multicondominium may 681
determine to provide no reserves or less reserves than required 682
by this paragraph if such multicondominium uses an alternative 683
funding method approved by the division . 684
b. Before turnover of control of an association by a 685
developer to unit owners other than a developer under s. 686
718.301, the developer -controlled association may not vote to 687
waive the reserves or reduce funding of the reserves. If a 688
meeting of the unit owners has been called to determine whether 689
to waive or reduce the funding of reserves and no such result is 690
achieved or a quorum is not attained, the reserves inclu ded in 691
the budget shall go into effect. After the turnover, the 692
developer may vote its voting interest to waive or reduce the 693
funding of reserves. 694
3. Reserve funds and any interest accruing thereon shall 695
remain in the reserve account or accounts, and may be used only 696
for authorized reserve expenditures unless their use for other 697
purposes is approved in advance by a majority vote at a duly 698
called meeting of the association. Before turnover of control of 699
an association by a developer to unit owners other th an the 700
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developer pursuant to s. 718.301, the developer -controlled 701
association may not vote to use reserves for purposes other than 702
those for which they were intended. Effective December 31, 2024, 703
members of a unit-owner-controlled association that must obtain 704
a structural integrity reserve study may not vote to use reserve 705
funds, or any interest accruing thereon, that are reserved for 706
items listed in paragraph (g) for any other purpose other than 707
the replacement or deferred maintenance costs of the items 708
listed in paragraph (g) their intended purpose . 709
4. The only voting interests that are eligible to vote on 710
questions that involve waiving or reducing the funding of 711
reserves, or using existing reserve funds for purposes other 712
than purposes for which the res erves were intended, are the 713
voting interests of the units subject to assessment to fund the 714
reserves in question. Proxy questions relating to waiving or 715
reducing the funding of reserves or using existing reserve funds 716
for purposes other than purposes for which the reserves were 717
intended must contain the following statement in capitalized, 718
bold letters in a font size larger than any other used on the 719
face of the proxy ballot: WAIVING OF RESERVES, IN WHOLE OR IN 720
PART, OR ALLOWING ALTERNATIVE USES OF EXISTING RESERVES MAY 721
RESULT IN UNIT OWNER LIABILITY FOR PAYMENT OF UNANTICIPATED 722
SPECIAL ASSESSMENTS REGARDING THOSE ITEMS. 723
(g) Structural integrity reserve study. — 724
1. A residential or mixed -use condominium An association 725
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must have a structural integrity rese rve study completed at 726
least every 10 years after the condominium's creation for each 727
building with at least one residential unit on the condominium 728
property that is three stories or higher in height as determined 729
by the Florida Building Code which includes, at a minimum, a 730
study of the following items as related to the structural 731
integrity and safety of the building: 732
a. Roof. 733
b. Structure, including load-bearing walls and or other 734
primary structural members and primary structural systems as 735
those terms are defined in s. 627.706 . 736
c. Floor. 737
d. Foundation. 738
e. Fireproofing and fire protection systems. 739
d.f. Plumbing. 740
e.g. Electrical systems. 741
f.h. Waterproofing and exterior painting. 742
g.i. Windows and exterior doors. 743
h.j. Any other item that ha s a deferred maintenance 744
expense or replacement cost that exceeds $10,000 and the failure 745
to replace or maintain such item negatively affects the items 746
listed in sub-subparagraphs a.-g. sub-subparagraphs a.-i., as 747
determined by the licensed engineer or arc hitect performing the 748
visual inspection portion of the structural integrity reserve 749
study. 750
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2. A structural integrity reserve study is based on a 751
visual inspection of the condominium property. A structural 752
integrity reserve study may be performed by any p erson qualified 753
to perform such study. However, the visual inspection portion of 754
the structural integrity reserve study must be performed or 755
verified by an engineer licensed under chapter 471 or an 756
architect licensed under chapter 481, or performed by a pe rson 757
certified as a reserve specialist or professional reserve 758
analyst by the Community Associations Institute or the 759
Association of Professional Reserve Analysts. 760
3. At a minimum, a structural integrity reserve study must 761
identify each item of the condo minium property being visually 762
inspected, state the estimated remaining useful life and the 763
estimated replacement cost or deferred maintenance expense of 764
each item of the condominium property being visually inspected, 765
and provide a reserve funding schedule with a recommended annual 766
reserve amount that achieves the estimated replacement cost or 767
deferred maintenance expense of each item of condominium 768
property being visually inspected by the end of the estimated 769
remaining useful life of the item. The structur al integrity 770
reserve study may recommend that reserves do not need to be 771
maintained for any item for which an estimated remaining useful 772
life and estimated replacement cost cannot be determined, or the 773
study may recommend a deferred maintenance expense amo unt for 774
such item. The structural integrity reserve study may recommend 775
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that reserves for replacement costs do not need to be maintained 776
for any item with an estimated remaining useful life of greater 777
than 25 years, or the study may recommend a deferred ma intenance 778
expense amount for such item. 779
4. This paragraph does not apply to buildings less than 780
three stories in height and to single -family, two-family, or 781
three-family dwellings with three or fewer habitable stories 782
above ground. 783
5. Before a developer turns over control of an association 784
to unit owners other than the developer, the developer must have 785
a structural integrity reserve study completed for each building 786
on the condominium property that is three stories or higher in 787
height. 788
6.3. Associations existing on or before July 1, 2022, 789
which are controlled by unit owners other than the developer, 790
must have a structural integrity reserve study completed by 791
December 31, 2024, for each building on the condominium property 792
that is three stories or high er in height. An association that 793
is required to complete a milestone inspection in accordance 794
with s. 553.899 on or before December 31, 2026, may complete the 795
structural integrity reserve study simultaneously with the 796
milestone inspection. In no event may the structural integrity 797
reserve study be completed after December 31, 2026. 798
7. If the milestone inspection required by s. 553.899, or 799
an inspection completed for a similar local requirement, was 800
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performed within the previous 5 years and meets the requi rements 801
of this paragraph, such inspection may be used in place of the 802
visual inspection portion of the structural integrity reserve 803
study. 804
8.4. If the officers or directors of an association fail 805
fails to complete a structural integrity reserve study pu rsuant 806
to this paragraph, such failure is a breach of an officer's and 807
director's fiduciary relationship to the unit owners under s. 808
718.111(1). 809
(h) Mandatory milestone inspections. —If an association is 810
required to have a milestone inspection performed pursuant to s. 811
553.899, the association must arrange for the milestone 812
inspection to be performed and is responsible for ensuring 813
compliance with the requirements of s. 553.899. The as sociation 814
is responsible for all costs associated with the milestone 815
inspection for to the portions of the building which the 816
association is responsible for maintaining under the governing 817
documents of the association . If the officers or directors of an 818
association willfully and knowingly fail to have a milestone 819
inspection performed pursuant to s. 553.899, such failure is a 820
breach of the officers' and directors' fiduciary relationship to 821
the unit owners under s. 718.111(1)(a). Within 14 days after 822
receipt of a written notice from the local enforcement agency 823
that a milestone inspection is required, the association must 824
notify the unit owners of the required milestone inspection and 825
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provide the date by which the milestone inspection must be 826
completed. Such notice may be given by electronic submission to 827
unit owners who consent to receive notice by electronic 828
submission or by posting the notice on the association's 829
website. Within 45 days after receiving Upon completion of a 830
phase one or phase two milestone in spection and receipt of the 831
inspector-prepared summary of the inspection report from the 832
licensed architect or engineer who performed the inspection, the 833
association must distribute a copy of the inspector -prepared 834
summary of the inspection report to each unit owner, regardless 835
of the findings or recommendations in the report, by United 836
States mail or personal delivery at the mailing address, 837
property address, or any other address of the unit owner which 838
is provided to fulfill the association's notice requi rements 839
under this chapter and by electronic transmission to unit owners 840
who previously consented to receive notice by electronic 841
transmission using the e-mail address or facsimile number of the 842
unit owner which is provided to fulfill the association's not ice 843
requirements under this chapter ; must post a copy of the 844
inspector-prepared summary in a conspicuous place on the 845
condominium property; and must publish the full report and 846
inspector-prepared summary on the association's website, if the 847
association is required to have a website. 848
Section 7. Effective July 1, 2027, subsection (5) of 849
section 718.1255, Florida Statutes, is amended, and paragraph 850
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(d) is added to subsection (1) of that section, to read: 851
718.1255 Alternative dispute resolution; mediation; 852
nonbinding arbitration; applicability. — 853
(1) DEFINITIONS.—As used in this section, the term 854
"dispute" means any disagreement between two or more parties 855
that involves: 856
(d) The failure of a board of administration, when 857
required by this chapte r or an association document, to: 858
1. Obtain the milestone inspection required under s. 859
553.899. 860
2. Obtain a structural integrity reserve study required 861
under s. 718.112(2)(g). 862
3. Fund reserves as required for an item identified in s. 863
718.112(2)(g). 864
4. Make or provide necessary maintenance or repairs to 865
condominium property as recommended by a milestone inspection or 866
a structural integrity reserve study. 867
868
"Dispute" does not include any disagreement that primarily 869
involves: title to any unit or common element; the 870
interpretation or enforcement of any warranty; the levy of a fee 871
or assessment, or the collection of an assessment levied against 872
a party; the eviction or other removal of a tenant from a unit; 873
alleged breaches of fiduciary duty by one or mor e directors; or 874
claims for damages to a unit based upon the alleged failure of 875
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the association to maintain the common elements or condominium 876
property. 877
(5) PRESUIT MEDIATION. —In lieu of the initiation of 878
nonbinding arbitration as provided in subsections (1)-(4), a 879
party may submit a dispute to presuit mediation in accordance 880
with s. 720.311; however, election and recall disputes are not 881
eligible for mediation and such disputes must be arbitrated by 882
the division or filed in a court of competent jurisdictio n. 883
Disputes identified in paragraph (1)(d) are not subject to 884
nonbinding arbitration under subsection (4) and must be 885
submitted to presuit mediation in accordance with s. 720.311. 886
Section 8. Subsection (1) of section 718.113, Florida 887
Statutes, is amended to read: 888
718.113 Maintenance; limitation upon improvement; display 889
of flag; hurricane shutters and protection; display of religious 890
decorations.— 891
(1) Maintenance of the common elements is the 892
responsibility of the association , except when responsibi lity 893
for the maintenance of limited common elements is assigned to 894
the unit owners by the declaration. The association shall 895
provide for the maintenance, repair, and replacement of the 896
condominium property for which it bears responsibility pursuant 897
to the declaration of condominium. After turnover of control of 898
the association to the unit owners, the association must perform 899
any required maintenance identified by the developer pursuant to 900
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s. 718.301(4)(p) and (q) until the association obtains new 901
maintenance protocols from a licensed engineer or architect or a 902
person certified as a reserve specialist or professional reserve 903
analyst by the Community Associations Institute or the 904
Association of Professional Reserve Analysts . The declaration 905
may provide that certain limited common elements shall be 906
maintained by those entitled to use the limited common elements 907
or that the association shall provide the maintenance, either as 908
a common expense or with the cost shared only by those entitled 909
to use the limited commo n elements. If the maintenance is to be 910
by the association at the expense of only those entitled to use 911
the limited common elements, the declaration shall describe in 912
detail the method of apportioning such costs among those 913
entitled to use the limited comm on elements, and the association 914
may use the provisions of s. 718.116 to enforce payment of the 915
shares of such costs by the unit owners entitled to use the 916
limited common elements. 917
Section 9. Present paragraphs (q) and (r) of subsection 918
(4) of section 718.301, Florida Statutes, are redesignated as 919
paragraphs (r) and (s), respectively, paragraph (p) of that 920
subsection is amended, and a new paragraph (q) is added to that 921
subsection, to read: 922
718.301 Transfer of association control; claims of defect 923
by association.— 924
(4) At the time that unit owners other than the developer 925
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elect a majority of the members of the board of administration 926
of an association, the developer shall relinquish control of the 927
association, and the unit owners shall accept control. 928
Simultaneously, or for the purposes of paragraph (c) not more 929
than 90 days thereafter, the developer shall deliver to the 930
association, at the developer's expense, all property of the 931
unit owners and of the association which is held or controlled 932
by the developer, including, but not limited to, the following 933
items, if applicable, as to each condominium operated by the 934
association: 935
(p) Notwithstanding when the certificate of occupancy was 936
issued or the height of the building, a structural integrity 937
reserve study a milestone inspection report in compliance with 938
s. 718.112(2)(g) s. 553.899 included in the official records, 939
under seal of a licensed an architect or engineer authorized to 940
practice in this state or a person certified as a reserve 941
specialist or professional reserve analyst by the Community 942
Associations Institute or the Association of Professional 943
Reserve Analysts, and attesting to required maintenance, 944
condition, useful life, and replacement costs of the following 945
applicable condominium property com prising a turnover inspection 946
report: 947
1. Roof. 948
2. Structure, including load -bearing walls and primary 949
structural members and primary structural systems as those terms 950
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are defined in s. 627.706 s. 627.706. 951
3. Fireproofing and fire protection systems. 952
4. Plumbing Elevators. 953
5. Electrical systems Heating and cooling systems . 954
6. Waterproofing and exterior painting Plumbing. 955
7. Windows and exterior doors Electrical systems. 956
8. Swimming pool or spa and equipment. 957
9. Seawalls. 958
10. Pavement and parking areas. 959
11. Drainage systems. 960
12. Painting. 961
13. Irrigation systems. 962
14. Waterproofing. 963
(q) Notwithstanding when the certificate of occupancy was 964
issued or the height of the building, a turnover inspection 965
report included in the official records, under seal of a 966
licensed architect or engineer authorized to practice in this 967
state or a person certified as a reserve specialist or 968
professional reserve analyst by the Community Associations 969
Institute or the Association of Professional Reserve An alysts, 970
and attesting to required maintenance, condition, useful life, 971
and replacement costs of the following applicable condominium 972
property comprising a turnover inspection report: 973
1. Elevators. 974
2. Heating and cooling systems. 975
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3. Swimming pool or spa and equipment. 976
4. Seawalls. 977
5. Pavement and parking areas. 978
6. Drainage systems. 979
7. Irrigation systems. 980
Section 10. Paragraph (b) of subsection (1) and paragraph 981
(a) of subsection (2) of section 718.503, Florida Statutes, are 982
amended, and paragraph (d) is added to subsection (1) and 983
paragraph (e) is added to subsection (2) of that section, to 984
read: 985
718.503 Developer disclosure prior to sale; nondeveloper 986
unit owner disclosure prior to sale; voidability. — 987
(1) DEVELOPER DISCLOSURE. — 988
(b) Copies of documents to be furnished to prospective 989
buyer or lessee.—Until such time as the developer has furnished 990
the documents listed below to a person who has entered into a 991
contract to purchase a residential unit or lease it for more 992
than 5 years, the contract may be voided by that person, 993
entitling the person to a refund of any deposit together with 994
interest thereon as provided in s. 718.202. The contract may be 995
terminated by written notice from the proposed buyer or lessee 996
delivered to the developer wi thin 15 days after the buyer or 997
lessee receives all of the documents required by this section. 998
The developer may not close for 15 days after the execution of 999
the agreement and delivery of the documents to the buyer as 1000
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evidenced by a signed receipt for docu ments unless the buyer is 1001
informed in the 15-day voidability period and agrees to close 1002
before the expiration of the 15 days. The developer shall retain 1003
in his or her records a separate agreement signed by the buyer 1004
as proof of the buyer's agreement to clo se before the expiration 1005
of the voidability period. The developer must retain such proof 1006
for a period of 5 years after the date of the closing of the 1007
transaction. The documents to be delivered to the prospective 1008
buyer are the prospectus or disclosure state ment with all 1009
exhibits, if the development is subject to s. 718.504, or, if 1010
not, then copies of the following which are applicable: 1011
1. The question and answer sheet described in s. 718.504, 1012
and declaration of condominium, or the proposed declaration if 1013
the declaration has not been recorded, which shall include the 1014
certificate of a surveyor approximately representing the 1015
locations required by s. 718.104. 1016
2. The documents creating the association. 1017
3. The bylaws. 1018
4. The ground lease or other underlying lease of the 1019
condominium. 1020
5. The management contract, maintenance contract, and 1021
other contracts for management of the association and operation 1022
of the condominium and facilities used by the unit owners having 1023
a service term in excess of 1 year, and any management contracts 1024
that are renewable. 1025
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6. The estimated operating budget for the condominium and 1026
a schedule of expenses for each type of unit, including fees 1027
assessed pursuant to s. 718.113(1) for the maintenance of 1028
limited common elements where such c osts are shared only by 1029
those entitled to use the limited common elements. 1030
7. The lease of recreational and other facilities that 1031
will be used only by unit owners of the subject condominium. 1032
8. The lease of recreational and other common facilities 1033
that will be used by unit owners in common with unit owners of 1034
other condominiums. 1035
9. The form of unit lease if the offer is of a leasehold. 1036
10. Any declaration of servitude of properties serving the 1037
condominium but not owned by unit owners or leased to th em or 1038
the association. 1039
11. If the development is to be built in phases or if the 1040
association is to manage more than one condominium, a 1041
description of the plan of phase development or the arrangements 1042
for the association to manage two or more condominiums . 1043
12. If the condominium is a conversion of existing 1044
improvements, the statements and disclosure required by s. 1045
718.616. 1046
13. The form of agreement for sale or lease of units. 1047
14. A copy of the floor plan of the unit and the plot plan 1048
showing the location of the residential buildings and the 1049
recreation and other common areas. 1050
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15. A copy of all covenants and restrictions that will 1051
affect the use of the property and are not contained in the 1052
foregoing. 1053
16. If the developer is required by state or local 1054
authorities to obtain acceptance or approval of any dock or 1055
marina facilities intended to serve the condominium, a copy of 1056
any such acceptance or approval acquired by the time of filing 1057
with the division under s. 718.502(1), or a statement that such 1058
acceptance or approval has not been acquired or received. 1059
17. Evidence demonstrating that the developer has an 1060
ownership, leasehold, or contractual interest in the land upon 1061
which the condominium is to be developed. 1062
18. A copy of the inspector -prepared summary of the 1063
milestone inspection report as described in ss. 553.899 and 1064
718.112(2)(h) or a statement in conspicuous type indicating that 1065
the required milestone inspection described in s. 553.899 has 1066
not been completed or that a milestone inspection is not 1067
required, as applicable ss. 553.899 and 718.301(4)(p) . 1068
19. A copy of the association's most recent structural 1069
integrity reserve study , or a statement in conspicuous type 1070
indicating that the association has not completed a required 1071
structural integrity reserve study has not been completed or 1072
that a structural integrity reserve study is not required, as 1073
applicable. 1074
20. A copy of the turnover inspection report described in 1075
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s. 718.301(4)(p) and (q) or a statement in conspicuous type 1076
indicating that a tu rnover inspection report has not been 1077
completed, as applicable. 1078
(d) Milestone inspection, turnover inspection report, or 1079
structural integrity reserve study. —If the association is 1080
required to have completed a milestone inspection as described 1081
in s. 553.899, a turnover inspection report for a turnover 1082
inspection performed on or after July 1, 2023, or a structural 1083
integrity reserve study, and the association has not completed 1084
the milestone inspection, the turnover inspection report, or the 1085
structural integrity reserve study, each contract entered into 1086
after December 31, 2024, for the sale of a residential unit must 1087
contain in conspicuous type a statement indicating that the 1088
association is required to have a milestone inspection, a 1089
turnover inspection report, or a structural integrity reserve 1090
study and has not completed such inspection, report, or study, 1091
as applicable. If the association is not required to have a 1092
milestone inspection as described in s. 553.899 or a structural 1093
integrity reserve study, each contr act entered into after 1094
December 31, 2024, for the sale of a residential unit must 1095
contain in conspicuous type a statement indicating that the 1096
association is not required to have a milestone inspection or a 1097
structural integrity reserve study, as applicable. If the 1098
association has completed a milestone inspection as described in 1099
s. 553.899, a turnover inspection report for a turnover 1100
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inspection performed on or after July 1, 2023, or a structural 1101
integrity reserve study, each contract entered into after 1102
December 31, 2024, for the sale of a residential unit must 1103
contain in conspicuous type: 1104
1105
THE BUYER HEREBY ACKNOWLEDGES THAT THE BUYER HAS BEEN 1106
PROVIDED A CURRENT COPY OF THE INSPECTOR -PREPARED 1107
SUMMARY OF THE MILESTONE INSPECTION REPORT AS 1108
DESCRIBED IN SECTION 55 3.899, FLORIDA STATUTES, IF 1109
APPLICABLE; A COPY OF THE TURNOVER INSPECTION REPORT 1110
DESCRIBED IN SECTION 718.301(4)(p) AND (q), FLORIDA 1111
STATUTES, IF APPLICABLE; AND A COPY OF THE 1112
ASSOCIATION'S MOST RECENT STRUCTURAL INTEGRITY RESERVE 1113
STUDY DESCRIBED IN SECTIO NS 718.103(26) AND 1114
718.112(2)(g), FLORIDA STATUTES, IF APPLICABLE, MORE 1115
THAN 15 DAYS, EXCLUDING SATURDAYS, SUNDAYS, AND LEGAL 1116
HOLIDAYS, BEFORE THE EXECUTION OF THIS CONTRACT. 1117
1118
THIS AGREEMENT IS VOIDABLE BY THE BUYER BY DELIVERING 1119
WRITTEN NOTICE OF THE BUYE R'S INTENTION TO CANCEL 1120
WITHIN 15 DAYS, EXCLUDING SATURDAYS, SUNDAYS, AND 1121
LEGAL HOLIDAYS, AFTER THE DATE OF EXECUTION OF THIS 1122
AGREEMENT BY THE BUYER AND THE BUYER'S RECEIPT OF A 1123
CURRENT COPY OF THE INSPECTOR -PREPARED SUMMARY OF THE 1124
MILESTONE INSPECTION REP ORT AS DESCRIBED IN SECTION 1125
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553.899, FLORIDA STATUTES, IF APPLICABLE; A COPY OF 1126
THE TURNOVER INSPECTION REPORT DESCRIBED IN SECTION 1127
718.301(4)(p) AND (q), FLORIDA STATUTES, IF 1128
APPLICABLE; AND A COPY OF THE ASSOCIATION'S MOST 1129
RECENT STRUCTURAL INTEGRITY RES ERVE STUDY DESCRIBED IN 1130
SECTIONS 718.103(26) AND 718.112(2)(g), FLORIDA 1131
STATUTES, IF APPLICABLE. ANY PURPORTED WAIVER OF THESE 1132
VOIDABILITY RIGHTS SHALL BE OF NO EFFECT. THE BUYER 1133
MAY EXTEND THE TIME FOR CLOSING FOR UP TO 15 DAYS, 1134
EXCLUDING SATURDAYS, SUNDA YS, AND LEGAL HOLIDAYS, 1135
AFTER THE BUYER RECEIVES A CURRENT COPY OF THE 1136
INSPECTOR-PREPARED SUMMARY OF THE MILESTONE INSPECTION 1137
REPORT AS DESCRIBED IN SECTION 553.899, FLORIDA 1138
STATUTES; A COPY OF THE TURNOVER INSPECTION REPORT 1139
DESCRIBED IN SECTION 718.301(4) (p) AND (q), FLORIDA 1140
STATUTES; OR A COPY OF THE ASSOCIATION'S MOST RECENT 1141
STRUCTURAL INTEGRITY RESERVE STUDY DESCRIBED IN 1142
SECTIONS 718.103(26) AND 718.112(2)(g), FLORIDA 1143
STATUTES, IF REQUESTED IN WRITING. THE BUYER'S RIGHT 1144
TO VOID THIS AGREEMENT TERMINATES AT CLOSING. 1145
1146
A contract that does not conform to the requirements of this 1147
paragraph is voidable at the option of the purchaser before 1148
closing. 1149
(2) NONDEVELOPER DISCLOSURE. — 1150
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(a) Each unit owner who is not a developer as defined by 1151
this chapter must com ply with this subsection before the sale of 1152
his or her unit. Each prospective purchaser who has entered into 1153
a contract for the purchase of a condominium unit is entitled, 1154
at the seller's expense, to a current copy of all of the 1155
following: 1156
1. The declaration of condominium. 1157
2. Articles of incorporation of the association. 1158
3. Bylaws and rules of the association. 1159
4. Financial information required by s. 718.111. 1160
5. A copy of the inspector -prepared summary of the 1161
milestone inspection report as describ ed in s. 553.899 ss. 1162
553.899 and 718.301(4)(p) , if applicable. 1163
6. The association's most recent structural integrity 1164
reserve study or a statement that the association has not 1165
completed a structural integrity reserve study. 1166
7. A copy of the inspection r eport described in s. 1167
718.301(4)(p) and (q) for a turnover inspection performed on or 1168
after July 1, 2023. 1169
8. The document entitled "Frequently Asked Questions and 1170
Answers" required by s. 718.504. 1171
(e) If the association is required to have completed a 1172
milestone inspection as described in s. 553.899, a turnover 1173
inspection report for a turnover inspection performed on or 1174
after July 1, 2023, or a structural integrity reserve study, and 1175
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the association has not completed the milestone inspection, the 1176
turnover inspection report, or the structural integrity reserve 1177
study, each contract entered into after December 31, 2024, for 1178
the sale of a residential unit must contain in conspicuous type 1179
a statement indicating that the association is required to have 1180
a milestone inspection, a turnover inspection report, or a 1181
structural integrity reserve study and has not completed such 1182
inspection, report, or study, as applicable. If the association 1183
is not required to have a milestone inspection as described in 1184
s. 553.899 or a structural integrity reserve study, each 1185
contract entered into after December 31, 2024, for the sale of a 1186
residential unit must contain in conspicuous type a statement 1187
indicating that the association is not required to have a 1188
milestone inspection or a struc tural integrity reserve study, as 1189
applicable. If the association has completed a milestone 1190
inspection as described in s. 553.899, a turnover inspection 1191
report for a turnover inspection performed on or after July 1, 1192
2023, or a structural integrity reserve s tudy, each contract 1193
entered into after December 31, 2024, for the resale of a 1194
residential unit must contain in conspicuous type: 1195
1196
THE BUYER HEREBY ACKNOWLEDGES THAT THE BUYER HAS BEEN 1197
PROVIDED A CURRENT COPY OF THE INSPECTOR -PREPARED 1198
SUMMARY OF THE MILESTO NE INSPECTION REPORT AS 1199
DESCRIBED IN SECTION 553.899, FLORIDA STATUTES, IF 1200
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APPLICABLE; A COPY OF THE TURNOVER INSPECTION REPORT 1201
DESCRIBED IN SECTION 718.301(4)(p) AND (q), FLORIDA 1202
STATUTES, IF APPLICABLE; AND A COPY OF THE 1203
ASSOCIATION'S MOST RECENT STRUCTU RAL INTEGRITY RESERVE 1204
STUDY DESCRIBED IN SECTIONS 718.103(26) AND 1205
718.112(2)(g), FLORIDA STATUTES, IF APPLICABLE, MORE 1206
THAN 3 DAYS, EXCLUDING SATURDAYS, SUNDAYS, AND LEGAL 1207
HOLIDAYS, BEFORE EXECUTION OF THIS CONTRACT. 1208
1209
THIS AGREEMENT IS VOIDABLE BY THE BUYE R BY DELIVERING 1210
WRITTEN NOTICE OF THE BUYER'S INTENTION TO CANCEL 1211
WITHIN 3 DAYS, EXCLUDING SATURDAYS, SUNDAYS, AND LEGAL 1212
HOLIDAYS, AFTER THE DATE OF EXECUTION OF THIS 1213
AGREEMENT BY THE BUYER AND THE BUYER'S RECEIPT OF A 1214
CURRENT COPY OF THE INSPECTOR -PREPARED SUMMARY OF THE 1215
MILESTONE INSPECTION REPORT AS DESCRIBED IN SECTION 1216
553.899, FLORIDA STATUTES, IF APPLICABLE; A COPY OF 1217
THE TURNOVER INSPECTION REPORT DESCRIBED IN SECTION 1218
718.301(4)(p) AND (q), FLORIDA STATUTES, IF 1219
APPLICABLE; AND A COPY OF THE ASSOCIATI ON'S MOST 1220
RECENT STRUCTURAL INTEGRITY RESERVE STUDY DESCRIBED IN 1221
SECTIONS 718.103(26) AND 718.112(2)(g), FLORIDA 1222
STATUTES, IF APPLICABLE. ANY PURPORTED WAIVER OF THESE 1223
VOIDABILITY RIGHTS SHALL BE OF NO EFFECT. THE BUYER 1224
MAY EXTEND THE TIME FOR CLOSING FOR UP TO 3 DAYS, 1225
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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
EXCLUDING SATURDAYS, SUNDAYS, AND LEGAL HOLIDAYS, 1226
AFTER THE BUYER RECEIVES A CURRENT COPY OF THE 1227
INSPECTOR-PREPARED SUMMARY OF THE MILESTONE INSPECTION 1228
REPORT AS DESCRIBED IN SECTION 553.899, FLORIDA 1229
STATUTES; A COPY OF THE TURNOVER INSPECTIO N REPORT 1230
DESCRIBED IN SECTION 718.301(4)(p) AND (q), FLORIDA 1231
STATUTES; OR A COPY OF THE ASSOCIATION'S MOST RECENT 1232
STRUCTURAL INTEGRITY RESERVE STUDY DESCRIBED IN 1233
SECTIONS 718.103(26) AND 718.112(2)(g), FLORIDA 1234
STATUTES, IF REQUESTED IN WRITING. THE BUYER'S RIGHT 1235
TO VOID THIS AGREEMENT TERMINATES AT CLOSING. 1236
1237
A contract that does not conform to the requirements of this 1238
paragraph is voidable at the option of the purchaser before 1239
closing. 1240
Section 11. Paragraph (a) of subsection (7) and paragraph 1241
(c) of subsection (21) of section 718.504, Florida Statutes, are 1242
amended to read: 1243
718.504 Prospectus or offering circular. —Every developer 1244
of a residential condominium which contains more than 20 1245
residential units, or which is part of a group of residential 1246
condominiums which will be served by property to be used in 1247
common by unit owners of more than 20 residential units, shall 1248
prepare a prospectus or offering circular and file it with the 1249
Division of Florida Condominiums, Timeshares, and Mobile Homes 1250
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prior to entering into an enforceable contract of purchase and 1251
sale of any unit or lease of a unit for more than 5 years and 1252
shall furnish a copy of the prospectus or offering circular to 1253
each buyer. In addition to the prospectus or offering circular, 1254
each buyer shall be furnished a separate page entitled 1255
"Frequently Asked Questions and Answers," which shall be in 1256
accordance with a format approved by the division and a copy of 1257
the financial information required by s. 718.111. This page 1258
shall, in readable language, in form prospective purchasers 1259
regarding their voting rights and unit use restrictions, 1260
including restrictions on the leasing of a unit; shall indicate 1261
whether and in what amount the unit owners or the association is 1262
obligated to pay rent or land use fees for recreational or other 1263
commonly used facilities; shall contain a statement identifying 1264
that amount of assessment which, pursuant to the budget, would 1265
be levied upon each unit type, exclusive of any special 1266
assessments, and which shall further identify the basis upon 1267
which assessments are levied, whether monthly, quarterly, or 1268
otherwise; shall state and identify any court cases in which the 1269
association is currently a party of record in which the 1270
association may face liability in excess of $100,000; and which 1271
shall further state whether membership in a recreational 1272
facilities association is mandatory, and if so, shall identify 1273
the fees currently charged per unit type. The division shall by 1274
rule require such other disclosure as in its judgment will 1275
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assist prospective purchasers. The prospectus or offering 1276
circular may include more than one condominium, although not all 1277
such units are being offered for sale as of the date of the 1278
prospectus or offering circular. The prospectus or offering 1279
circular must contain the following information: 1280
(7) A description of the recreational and other facilities 1281
that will be used in common with other condominiums, community 1282
associations, or planned developments which require the payment 1283
of the maintenance and expenses of such faci lities, directly or 1284
indirectly, by the unit owners. The description shall include, 1285
but not be limited to, the following: 1286
(a) Each building and facility committed to be built and a 1287
summary description of the structural integrity of each building 1288
for which reserves are required pursuant to s. 718.112(2)(g) . 1289
1290
Descriptions shall include location, areas, capacities, numbers, 1291
volumes, or sizes and may be stated as approximations or 1292
minimums. 1293
(21) An estimated operating budget for the condominium and 1294
the association, and a schedule of the unit owner's expenses 1295
shall be attached as an exhibit and shall contain the following 1296
information: 1297
(c) The estimated items of expenses of the condominium and 1298
the association, except as excluded under paragraph (b), 1299
including, but not limited to, the following items, which shall 1300
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be stated as an association expense collectible by assessments 1301
or as unit owners' expenses payable to persons other than the 1302
association: 1303
1. Expenses for the association and condominium: 1304
a. Administration of the association. 1305
b. Management fees. 1306
c. Maintenance. 1307
d. Rent for recreational and other commonly used 1308
facilities. 1309
e. Taxes upon association property. 1310
f. Taxes upon leased areas. 1311
g. Insurance. 1312
h. Security provisions. 1313
i. Other expenses. 1314
j. Operating capital. 1315
k. Reserves for all applicable items referenced in s. 1316
718.112(2)(g). 1317
l. Fees payable to the division. 1318
2. Expenses for a unit owner: 1319
a. Rent for the unit, if subject to a lease. 1320
b. Rent payable by the unit owner direc tly to the lessor 1321
or agent under any recreational lease or lease for the use of 1322
commonly used facilities, which use and payment is a mandatory 1323
condition of ownership and is not included in the common expense 1324
or assessments for common maintenance paid by th e unit owners to 1325
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the association. 1326
Section 12. Subsection (24) of section 719.103, Florida 1327
Statutes, is amended to read: 1328
719.103 Definitions. —As used in this chapter: 1329
(24) "Structural integrity reserve study" means a study of 1330
the reserve funds requi red for future major repairs and 1331
replacement of the cooperative property performed as required 1332
under s. 719.106(1)(k) common areas based on a visual inspection 1333
of the common areas. A structural integrity reserve study may be 1334
performed by any person qualifi ed to perform such study. 1335
However, the visual inspection portion of the structural 1336
integrity reserve study must be performed by an engineer 1337
licensed under chapter 471 or an architect licensed under 1338
chapter 481. At a minimum, a structural integrity reserve study 1339
must identify the common areas being visually inspected, state 1340
the estimated remaining useful life and the estimated 1341
replacement cost or deferred maintenance expense of the common 1342
areas being visually inspected, and provide a recommended annual 1343
reserve amount that achieves the estimated replacement cost or 1344
deferred maintenance expense of each common area being visually 1345
inspected by the end of the estimated remaining useful life of 1346
each common area. 1347
Section 13. Subsections (5) through (11) of secti on 1348
719.104, Florida Statutes, are renumbered as subsections (6) 1349
through (12), respectively, paragraph (c) of subsection (2) of 1350
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that section is amended, and a new subsection (5) is added to 1351
that section, to read: 1352
719.104 Cooperatives; access to units; records; financial 1353
reports; assessments; purchase of leases. — 1354
(2) OFFICIAL RECORDS. — 1355
(c) The official records of the association are open to 1356
inspection by any association member and any person authorized 1357
by an association member as a or the authorized representative 1358
of such member at all reasonable times. The right to inspect the 1359
records includes the right to make or obtain copies, at the 1360
reasonable expense, if any, of the association member and of the 1361
person authorized by the association member as a re presentative 1362
of such member. A renter of a unit has a right to inspect and 1363
copy only the association's bylaws and rules and the inspection 1364
reports described in ss. 553.899 and 719.301(4)(p). The 1365
association may adopt reasonable rules regarding the frequenc y, 1366
time, location, notice, and manner of record inspections and 1367
copying, but may not require a member to demonstrate any purpose 1368
or state any reason for the inspection. The failure of an 1369
association to provide the records within 10 working days after 1370
receipt of a written request creates a rebuttable presumption 1371
that the association willfully failed to comply with this 1372
paragraph. A member who is denied access to official records is 1373
entitled to the actual damages or minimum damages for the 1374
association's willful failure to comply. The minimum damages are 1375
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$50 per calendar day for up to 10 days, beginning on the 11th 1376
working day after receipt of the written request. The failure to 1377
permit inspection entitles any person prevailing in an 1378
enforcement action to recove r reasonable attorney fees from the 1379
person in control of the records who, directly or indirectly, 1380
knowingly denied access to the records. Any person who knowingly 1381
or intentionally defaces or destroys accounting records that are 1382
required by this chapter to be maintained during the period for 1383
which such records are required to be maintained, or who 1384
knowingly or intentionally fails to create or maintain 1385
accounting records that are required to be created or 1386
maintained, with the intent of causing harm to the ass ociation 1387
or one or more of its members, is personally subject to a civil 1388
penalty under s. 719.501(1)(d). The association shall maintain 1389
an adequate number of copies of the declaration, articles of 1390
incorporation, bylaws, and rules, and all amendments to eac h of 1391
the foregoing, as well as the question and answer sheet as 1392
described in s. 719.504 and year -end financial information 1393
required by the department, on the cooperative property to 1394
ensure their availability to members and prospective purchasers, 1395
and may charge its actual costs for preparing and furnishing 1396
these documents to those requesting the same. An association 1397
shall allow a member or his or her authorized representative to 1398
use a portable device, including a smartphone, tablet, portable 1399
scanner, or any other technology capable of scanning or taking 1400
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photographs, to make an electronic copy of the official records 1401
in lieu of the association providing the member or his or her 1402
authorized representative with a copy of such records. The 1403
association may not cha rge a member or his or her authorized 1404
representative for the use of a portable device. Notwithstanding 1405
this paragraph, the following records shall not be accessible to 1406
members: 1407
1. Any record protected by the lawyer -client privilege as 1408
described in s. 90.502 and any record protected by the work -1409
product privilege, including any record prepared by an 1410
association attorney or prepared at the attorney's express 1411
direction which reflects a mental impression, conclusion, 1412
litigation strategy, or legal theory of the attorney or the 1413
association, and which was prepared exclusively for civil or 1414
criminal litigation or for adversarial administrative 1415
proceedings, or which was prepared in anticipation of such 1416
litigation or proceedings until the conclusion of the litigation 1417
or proceedings. 1418
2. Information obtained by an association in connection 1419
with the approval of the lease, sale, or other transfer of a 1420
unit. 1421
3. Personnel records of association or management company 1422
employees, including, but not limited to, disciplinary, payroll, 1423
health, and insurance records. For purposes of this 1424
subparagraph, the term "personnel records" does not include 1425
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written employment agreements with an association employee or 1426
management company, or budgetary or financial records that 1427
indicate the compensation paid to an association employee. 1428
4. Medical records of unit owners. 1429
5. Social security numbers, driver license numbers, credit 1430
card numbers, e-mail addresses, telephone numbers, facsimile 1431
numbers, emergency contact information, addresses o f a unit 1432
owner other than as provided to fulfill the association's notice 1433
requirements, and other personal identifying information of any 1434
person, excluding the person's name, unit designation, mailing 1435
address, property address, and any address, e -mail address, or 1436
facsimile number provided to the association to fulfill the 1437
association's notice requirements. Notwithstanding the 1438
restrictions in this subparagraph, an association may print and 1439
distribute to unit owners a directory containing the name, unit 1440
address, and all telephone numbers of each unit owner. However, 1441
an owner may exclude his or her telephone numbers from the 1442
directory by so requesting in writing to the association. An 1443
owner may consent in writing to the disclosure of other contact 1444
information described in this subparagraph. The association is 1445
not liable for the inadvertent disclosure of information that is 1446
protected under this subparagraph if the information is included 1447
in an official record of the association and is voluntarily 1448
provided by an owner and not requested by the association. 1449
6. Electronic security measures that are used by the 1450
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association to safeguard data, including passwords. 1451
7. The software and operating system used by the 1452
association which allow the manipulation of data, even if the 1453
owner owns a copy of the same software used by the association. 1454
The data is part of the official records of the association. 1455
8. All affirmative acknowledgments made pursuant to s. 1456
719.108(3)(b)3. 1457
(5) MAINTENANCE.—Maintenance of the common elemen ts is the 1458
responsibility of the association, except for any maintenance 1459
responsibility for limited common elements assigned to the unit 1460
owners by the declaration. The association shall provide for the 1461
maintenance, repair, and replacement of the cooperative property 1462
for which it bears responsibility pursuant to the declaration of 1463
cooperative. After turnover of control of the association to the 1464
unit owners, the association must perform any required 1465
maintenance identified by the developer pursuant to s. 1466
719.301(4)(p) and (q) until the association obtains new 1467
maintenance protocols from a licensed engineer or architect or a 1468
person certified as a reserve specialist or professional reserve 1469
analyst by the Community Associations Institute or the 1470
Association of Profes sional Reserve Analysts. The declaration 1471
may provide that certain limited common elements shall be 1472
maintained by those entitled to use the limited common elements 1473
or that the association shall provide the maintenance, either as 1474
a common expense or with the cost shared only by those entitled 1475
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to use the limited common elements. If the maintenance is to be 1476
provided by the association at the expense of only those 1477
entitled to use the limited common elements, the declaration 1478
shall describe in detail the method of apportioning such costs 1479
among those entitled to use the limited common elements and the 1480
association may use s. 719.108 to enforce payment of the shares 1481
of such costs by the unit owners entitled to use the limited 1482
common elements. 1483
Section 14. Paragraphs (e), (j), (k), and (l) of 1484
subsection (1) of section 719.106, Florida Statutes, are amended 1485
to read: 1486
719.106 Bylaws; cooperative ownership. — 1487
(1) MANDATORY PROVISIONS. —The bylaws or other cooperative 1488
documents shall provide for the following, and if they do not, 1489
they shall be deemed to include the following: 1490
(e) Budget procedures.— 1491
1. The board of administration shall mail, hand deliver, 1492
or electronically transmit to each unit owner at the address 1493
last furnished to the association, a meetin g notice and copies 1494
of the proposed annual budget of common expenses to the unit 1495
owners not less than 14 days prior to the meeting at which the 1496
budget will be considered. Evidence of compliance with this 14 -1497
day notice must be made by an affidavit executed by an officer 1498
of the association or the manager or other person providing 1499
notice of the meeting and filed among the official records of 1500
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the association. The meeting must be open to the unit owners. 1501
2. If an adopted budget requires assessment against the 1502
unit owners in any fiscal or calendar year which exceeds 115 1503
percent of the assessments for the preceding year, the board 1504
upon written application of 10 percent of the voting interests 1505
to the board, shall call a special meeting of the unit owners 1506
within 30 days, upon not less than 10 days' written notice to 1507
each unit owner. At the special meeting, unit owners shall 1508
consider and enact a budget. Unless the bylaws require a larger 1509
vote, the adoption of the budget requires a vote of not less 1510
than a majority of all the voting interests. 1511
3. The board of administration may, in any event, propose 1512
a budget to the unit owners at a meeting of members or by 1513
writing, and if the budget or proposed budget is approved by the 1514
unit owners at the meeting or by a majority of all voting 1515
interests in writing, the budget is adopted. If a meeting of the 1516
unit owners has been called and a quorum is not attained or a 1517
substitute budget is not adopted by the unit owners, the budget 1518
adopted by the board of directors goes into effect as scheduled. 1519
4. In determining whether assessments exceed 115 percent 1520
of similar assessments for prior years, any authorized 1521
provisions for reasonable reserves for repair or replacement of 1522
cooperative property, anticipated expenses by the association 1523
which are not anticipated to be incurred on a regular or annual 1524
basis, insurance premiums, or assessments for betterments to the 1525
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cooperative property must be excluded from computation. However, 1526
as long as the developer is in control of the board of 1527
administration, the board may not impose an assessment for any 1528
year greater than 115 percent of the prior fiscal or calendar 1529
year's assessment without approval of a majority of all voting 1530
interests. 1531
(j) Annual budget.— 1532
1. The proposed annual budget of common expen ses must be 1533
detailed and must show the amounts budgeted by accounts and 1534
expense classifications, including, if applicable, but not 1535
limited to, those expenses listed in s. 719.504(20). The board 1536
of administration shall adopt the annual budget at least 14 da ys 1537
before the start of the association's fiscal year. In the event 1538
that the board fails to timely adopt the annual budget a second 1539
time, it is deemed a minor violation and the prior year's budget 1540
shall continue in effect until a new budget is adopted. 1541
2. In addition to annual operating expenses, the budget 1542
must include reserve accounts for capital expenditures and 1543
deferred maintenance. These accounts must include, but are not 1544
be limited to, roof replacement, building painting, and pavement 1545
resurfacing, regardless of the amount of deferred maintenance 1546
expense or replacement cost, and for any other items for which 1547
the deferred maintenance expense or replacement cost exceeds 1548
$10,000. The amount to be reserved for an item is determined by 1549
the association's mos t recent structural integrity reserve study 1550
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that must be completed by December 31, 2024. If the amount to be 1551
reserved for an item is not in the association's initial or most 1552
recent structural integrity reserve study or the association has 1553
not completed a structural integrity reserve study, the amount 1554
must be computed by means of a formula which is based upon 1555
estimated remaining useful life and estimated replacement cost 1556
or deferred maintenance expense of the reserve item. In a budget 1557
adopted by an associati on that is required to obtain a 1558
structural integrity reserve study, reserves must be maintained 1559
for the items identified in paragraph (k), and the reserve 1560
amount for such items must be based on the findings and 1561
recommendations of the association's most rec ent structural 1562
integrity reserve study. With respect to items for which an 1563
estimated remaining useful life is not readily ascertainable or 1564
which have an estimated remaining useful life of greater than 25 1565
years, an association is not required to reserve rep lacement 1566
costs for such items, but an association must reserve the amount 1567
of deferred maintenance expense, if any, which is recommended by 1568
the structural integrity reserve study for such items. The 1569
association may adjust replacement reserve assessments ann ually 1570
to take into account an inflation adjustment and any changes in 1571
estimates or extension of the useful life of a reserve item 1572
caused by deferred maintenance. The members of a unit -owner-1573
controlled association may determine, at a duly called meeting 1574
of the association, for a fiscal year to provide no reserves or 1575
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reserves less adequate than required by this subsection. Before 1576
turnover of control of an association by a developer to unit 1577
owners other than a developer under s. 719.301, the developer -1578
controlled association may not vote to waive the reserves or 1579
reduce funding of the reserves. Effective December 31, 2024, a 1580
unit-owner-controlled association that must obtain a structural 1581
integrity reserve study may not determine to provide no reserves 1582
or reserves less adequate than required by this paragraph for 1583
items listed in paragraph (k). If a meeting of the unit owners 1584
has been called to determine to provide no reserves, or reserves 1585
less adequate than required, and such result is not attained or 1586
a quorum is not attained, the reserves as included in the budget 1587
shall go into effect. 1588
3. Reserve funds and any interest accruing thereon shall 1589
remain in the reserve account or accounts, and shall be used 1590
only for authorized reserve expenditures unless their use for 1591
other purposes is approved in advance by a vote of the majority 1592
of the voting interests, voting in person or by limited proxy at 1593
a duly called meeting of the association. Before turnover of 1594
control of an association by a developer to unit owners other 1595
than the developer under s. 719.301, the developer may not vote 1596
to use reserves for purposes other than that for which they were 1597
intended. Effective December 31, 2024, members of a unit -owner-1598
controlled association that must obtain a structural integrity 1599
reserve study may not vote to use reserve funds, or any interest 1600
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accruing thereon, that are reserved for items listed in 1601
paragraph (k) for purposes other than the replacement or 1602
deferred maintenance costs of the components listed in paragraph 1603
(k) their intended purpose. 1604
(k) Structural integrity reserve study. — 1605
1. A residential cooperative An association must have a 1606
structural integrity reserve study completed at least every 10 1607
years for each building on the cooperative property that is 1608
three stories or highe r in height as determined by the Florida 1609
Building Code which that includes, at a minimum, a study of the 1610
following items as related to the structural integrity and 1611
safety of the building: 1612
a. Roof. 1613
b. Structure, including load-bearing walls and or other 1614
primary structural members and primary structural systems as 1615
those terms are defined in s. 627.706 . 1616
c. Floor. 1617
d. Foundation. 1618
e. Fireproofing and fire protection systems. 1619
d.f. Plumbing. 1620
e.g. Electrical systems. 1621
f.h. Waterproofing and exterior painting. 1622
g.i. Windows and exterior doors. 1623
h.j. Any other item that has a deferred maintenance 1624
expense or replacement cost that exceeds $10,000 and the failure 1625
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to replace or maintain such item negatively affects the items 1626
listed in sub-subparagraphs a.-g. sub-subparagraphs a.-i., as 1627
determined by the licensed engineer or architect performing the 1628
visual inspection portion of the structural integrity reserve 1629
study. 1630
2. A structural integrity reserve study is based on a 1631
visual inspection of the cooperative property. A structural 1632
integrity reserve study may be performed by any person qualified 1633
to perform such study. However, the visual inspection portion of 1634
the structural integrity reserve study must be performed or 1635
verified by an engineer licensed under chapter 471 or an 1636
architect licensed under chapter 481, or performed by a person 1637
certified as a reserve specialist or professional reserve 1638
analyst by the Community Associations Institute or the 1639
Association of Professional Reserve Analysts. 1640
3. At a minimum, a structural integrity reserve study must 1641
identify each item of the cooperative property being visually 1642
inspected, state the estimated remaining useful life and the 1643
estimated replacement cost or deferred maintenance expense of 1644
each item of the cooperative property being visually inspected, 1645
and provide a reserve funding schedule with a recommended annual 1646
reserve amount that achieves the estimated replacement cost or 1647
deferred maintenance expense of each item of cooperative 1648
property being visually inspected by the end of the estimated 1649
remaining useful life of the item. The structural integrity 1650
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reserve study may recommend that reserves do not need to be 1651
maintained for any item for which an estimated remaining useful 1652
life and an estimate of replacement cost cannot be determined, 1653
or the study may recommend a deferred maintenance expense amount 1654
for such item. The structural integrity reserve study may 1655
recommend that reserves for replacement costs do not need to be 1656
maintained for any ite m with an estimated remaining useful life 1657
of greater than 25 years, but the study may recommend a deferred 1658
maintenance expense amount for such item. 1659
4. This paragraph does not apply to buildings less than 1660
three stories in height and to single -family, two-family, or 1661
three-family dwellings with three or fewer habitable stories 1662
above ground. 1663
5. Before a developer turns over control of an association 1664
to unit owners other than the developer, the developer must have 1665
a structural integrity reserve study comple ted for each building 1666
on the cooperative property that is three stories or higher in 1667
height. 1668
6.3. Associations existing on or before July 1, 2022, 1669
which are controlled by unit owners other than the developer, 1670
must have a structural integrity reserve stud y completed by 1671
December 31, 2024, for each building on the cooperative property 1672
that is three stories or higher in height. An association that 1673
is required to complete a milestone inspection in accordance 1674
with s. 553.899 on or before December 31, 2026, may complete the 1675
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structural integrity reserve study simultaneously with the 1676
milestone inspection. In no event may the structura l integrity 1677
reserve study be completed after December 31, 2026. 1678
7. If the milestone inspection required by s. 553.899, or 1679
an inspection completed for a similar local requirement, was 1680
performed within the previous 5 years and meets the requirements 1681
of this paragraph, such inspection may be used in place of the 1682
visual inspection portion of the structural integrity reserve 1683
study. 1684
8.4. If the officers or directors of an association fail 1685
fails to complete a structural integrity reserve study pursuant 1686
to this paragraph, such failure is a breach of an officer's and 1687
director's fiduciary relationship to the unit owners under s. 1688
719.104(9) s. 719.104(8). 1689
(l) Mandatory milestone inspections. —If an association is 1690
required to have a milestone inspection performed p ursuant to s. 1691
553.899, the association must arrange for the milestone 1692
inspection to be performed and is responsible for ensuring 1693
compliance with the requirements of s. 553.899. The association 1694
is responsible for all costs associated with the milestone 1695
inspection for the portions of the building which the 1696
association is responsible for maintaining under the governing 1697
documents of the association . If the officers or directors of an 1698
association willfully and knowingly fail to have a milestone 1699
inspection performed pursuant to s. 553.899, such failure is a 1700
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breach of the officers' and directors' fiduciary relationship to 1701
the unit owners under s. 719.104(9)(a). Within 14 days after 1702
receipt of a written notice from the local enforcement agency 1703
that a milestone inspe ction is required, the association must 1704
notify the unit owners of the required milestone inspection and 1705
provide the date by which the milestone inspection must be 1706
completed. Such notice may be given by electronic submission to 1707
unit owners who consent to re ceive notice by electronic 1708
submission or by posting the notice on the association's 1709
website. Within 45 days after receiving s. 719.104(8)(a). Upon 1710
completion of a phase one or phase two milestone inspection and 1711
receipt of the inspector -prepared summary of the inspection 1712
report from the licensed architect or engineer who performed the 1713
inspection, the association must distribute a copy of the 1714
inspector-prepared summary of the inspection report to each unit 1715
owner, regardless of the findings or recommendations in the 1716
report, by United States mail or personal delivery at the 1717
mailing address, property address, or any other address of the 1718
unit owner which is provided to fulfill the association's notice 1719
requirements under this chapter and by electronic transmission 1720
to unit owners who previously consented to receive notice by 1721
electronic transmission using the e-mail address or facsimile 1722
number of the unit owner which is provided to fulfill the 1723
association's notice requirements under this chapter ; must post 1724
a copy of the inspector-prepared summary in a conspicuous place 1725
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on the cooperative property; and must publish the full report 1726
and inspector-prepared summary on the association's website, if 1727
the association is required to have a website. 1728
Section 15. Paragraph (q) of subsection (4) of section 1729
719.301, Florida Statutes, is redesignated as paragraph (r), 1730
paragraph (p) of that subsection is amended, and a new paragraph 1731
(q) is added to that subsection, to read: 1732
719.301 Transfer of association control. — 1733
(4) When unit owners other than the developer elect a 1734
majority of the members of the board of administration of an 1735
association, the developer shall relinquish control of the 1736
association, and the unit owners shall accept control. 1737
Simultaneously, or for the purpose of pa ragraph (c) not more 1738
than 90 days thereafter, the developer shall deliver to the 1739
association, at the developer's expense, all property of the 1740
unit owners and of the association held or controlled by the 1741
developer, including, but not limited to, the followi ng items, 1742
if applicable, as to each cooperative operated by the 1743
association: 1744
(p) Notwithstanding when the certificate of occupancy was 1745
issued or the height of the building, a structural integrity 1746
reserve study milestone inspection report in compliance with s. 1747
719.106(1)(k) s. 553.899 included in the official records, under 1748
seal of a licensed an architect or engineer authorized to 1749
practice in this state or a person certified as a reserve 1750
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specialist or professional reserve analyst by the Community 1751
Associations Institute or the Association of Professional 1752
Reserve Analysts, attesting to required maintenance, condition, 1753
useful life, and replacement costs of the following applicable 1754
cooperative property comprising a turnover inspection report: 1755
1. Roof. 1756
2. Structure, including load -bearing walls and primary 1757
structural members and primary structural systems as those terms 1758
are defined in s. 627.706 s. 627.706. 1759
3. Fireproofing and fire protection systems. 1760
4. Plumbing Elevators. 1761
5. Electrical systems Heating and cooling systems. 1762
6. Waterproofing and exterior painting Plumbing. 1763
7. Windows and exterior doors Electrical systems. 1764
8. Swimming pool or spa and equipment. 1765
9. Seawalls. 1766
10. Pavement and parking areas. 1767
11. Drainage systems. 1768
12. Painting. 1769
13. Irrigation systems. 1770
14. Waterproofing. 1771
(q) Notwithstanding when the certificate of occupancy was 1772
issued or the height of the building, a turnover inspection 1773
report included in the official records, under seal of a 1774
licensed architect or engineer au thorized to practice in this 1775
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state or a person certified as a reserve specialist or 1776
professional reserve analyst by the Community Associations 1777
Institute or the Association of Professional Reserve Analysts, 1778
and attesting to required maintenance, condition, useful life, 1779
and replacement costs of the following applicable cooperative 1780
property comprising a turnover inspection report: 1781
1. Elevators. 1782
2. Heating and cooling systems. 1783
3. Swimming pool or spa and equipment. 1784
4. Seawalls. 1785
5. Pavement and parking areas. 1786
6. Drainage systems. 1787
7. Irrigation systems. 1788
Section 16. Paragraph (b) of subsection (1) and paragraph 1789
(a) of subsection (2) of section 719.503, Florida Statutes, are 1790
amended, and paragraph (d) is added to subsection (1) and 1791
paragraph (d) is added to subsection (2) of that section, to 1792
read: 1793
719.503 Disclosure prior to sale. — 1794
(1) DEVELOPER DISCLOSURE. — 1795
(b) Copies of documents to be furnished to prospective 1796
buyer or lessee.—Until such time as the developer has furnished 1797
the documents listed below to a person who has entered into a 1798
contract to purchase a unit or lease it for more than 5 years, 1799
the contract may be voided by that person, entitling the person 1800
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to a refund of any deposit together with interest thereon as 1801
provided in s. 719.202. The contract may be terminated by 1802
written notice from the proposed buyer or lessee delivered to 1803
the developer within 15 days after the buyer or lessee receives 1804
all of the documents required by this section. The developer may 1805
not close for 15 days after the execution of the agreement and 1806
delivery of the documents to the buyer as evidenced by a receipt 1807
for documents signed by the buyer unless the buyer is informed 1808
in the 15-day voidability period and agrees to close before the 1809
expiration of the 15 days. The d eveloper shall retain in his or 1810
her records a separate signed agreement as proof of the buyer's 1811
agreement to close before the expiration of the voidability 1812
period. The developer must retain such proof for a period of 5 1813
years after the date of the closing t ransaction. The documents 1814
to be delivered to the prospective buyer are the prospectus or 1815
disclosure statement with all exhibits, if the development is 1816
subject to s. 719.504, or, if not, then copies of the following 1817
which are applicable: 1818
1. The question and answer sheet described in s. 719.504, 1819
and cooperative documents, or the proposed cooperative documents 1820
if the documents have not been recorded, which shall include the 1821
certificate of a surveyor approximately representing the 1822
locations required by s. 719 .104. 1823
2. The documents creating the association. 1824
3. The bylaws. 1825
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4. The ground lease or other underlying lease of the 1826
cooperative. 1827
5. The management contract, maintenance contract, and 1828
other contracts for management of the association and operation 1829
of the cooperative and facilities used by the unit owners having 1830
a service term in excess of 1 year, and any management contracts 1831
that are renewable. 1832
6. The estimated operating budget for the cooperative and 1833
a schedule of expenses for each type of unit, including fees 1834
assessed to a shareholder who has exclusive use of limited 1835
common areas, where such costs are shared only by those entitled 1836
to use such limited common areas. 1837
7. The lease of recreational and other facilities that 1838
will be used only by unit owners of the subject cooperative. 1839
8. The lease of recreational and other common areas that 1840
will be used by unit owners in common with unit owners of other 1841
cooperatives. 1842
9. The form of unit lease if the offer is of a leasehold. 1843
10. Any declaration of servitude of properties serving the 1844
cooperative but not owned by unit owners or leased to them or 1845
the association. 1846
11. If the development is to be built in phases or if the 1847
association is to manage more than one cooperative, a 1848
description of the plan of phase development or the arrangements 1849
for the association to manage two or more cooperatives. 1850
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12. If the cooperative is a conversion of existing 1851
improvements, the statements and disclosure required by s. 1852
719.616. 1853
13. The form of agreement for sale or lease of units. 1854
14. A copy of the floor plan of the unit and the plot plan 1855
showing the location of the residential buildings and the 1856
recreation and other common areas. 1857
15. A copy of all covenants and restrictions that will 1858
affect the use of the property and are not contained in the 1859
foregoing. 1860
16. If the developer is required by state or local 1861
authorities to obtain acceptance or approval of any dock or 1862
marina facilities intended to serve the cooperative, a copy of 1863
any such acceptance or approval acquired by the time of filing 1864
with the division pursuant to s. 719.502(1) or a statement that 1865
such acceptance or approval has not been acquired or received. 1866
17. Evidence demonstrating that the developer has an 1867
ownership, leasehold, or contractual inter est in the land upon 1868
which the cooperative is to be developed. 1869
18. A copy of the inspector -prepared summary of the 1870
milestone inspection report as described in s. 553.899 ss. 1871
553.899 and 719.301(4)(p) , or a statement in conspicuous type 1872
indicating that the required milestone inspection described in 1873
s. 553.899 has not been completed or that a milestone inspection 1874
is not required, as if applicable. 1875
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19. A copy of the association's most recent structural 1876
integrity reserve study or a statement in conspicuous type 1877
indicating that the association has not completed a required 1878
structural integrity reserve study has not been completed or 1879
that a structural integrity reserve study is not required, as 1880
applicable. 1881
20. A copy of the turnover inspection report describe d in 1882
s. 719.301(4)(p) and (q) or a statement in conspicuous type 1883
indicating that a turnover inspection report has not been 1884
completed, as applicable. 1885
(d) Milestone inspection, turnover inspection report, or 1886
structural integrity reserve study. —If the association is 1887
required to have completed a milestone inspection as described 1888
in s. 553.899, a turnover inspection report for a turnover 1889
inspection performed on or after July 1, 2023, or a structural 1890
integrity reserve study, and the association has not complete d 1891
the milestone inspection, the turnover inspection report, or the 1892
structural integrity reserve study, each contract entered into 1893
after December 31, 2024, for the sale of a residential unit must 1894
contain in conspicuous type a statement indicating that the 1895
association is required to have a milestone inspection, a 1896
turnover inspection report, or a structural integrity reserve 1897
study and has not completed such inspection, report, or study, 1898
as applicable. If the association is not required to have a 1899
milestone inspection as described in s. 553.899 or a structural 1900
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integrity reserve study, each contract entered into after 1901
December 31, 2024, for the sale of a residential unit must 1902
contain in conspicuous type a statement indicating that the 1903
association is not required t o have a milestone inspection or a 1904
structural integrity reserve study, as applicable. If the 1905
association has completed a milestone inspection as described in 1906
s. 553.899, a turnover inspection report for a turnover 1907
inspection performed on or after July 1, 2 023, or a structural 1908
integrity reserve study, each contract entered into after 1909
December 31, 2024, for the sale of a residential unit must 1910
contain in conspicuous type: 1911
1912
THE BUYER HEREBY ACKNOWLEDGES THAT THE BUYER HAS BEEN 1913
PROVIDED A CURRENT COPY OF THE INS PECTOR-PREPARED 1914
SUMMARY OF THE MILESTONE INSPECTION REPORT AS 1915
DESCRIBED IN SECTION 553.899, FLORIDA STATUTES, IF 1916
APPLICABLE; A COPY OF THE TURNOVER INSPECTION REPORT 1917
DESCRIBED IN SECTION 719.301(4)(p) AND (q), FLORIDA 1918
STATUTES, IF APPLICABLE; AND A COPY OF THE 1919
ASSOCIATION'S MOST RECENT STRUCTURAL INTEGRITY RESERVE 1920
STUDY DESCRIBED IN SECTIONS 719.103(24) AND 1921
719.106(1)(k), FLORIDA STATUTES, IF APPLICABLE, MORE 1922
THAN 15 DAYS, EXCLUDING SATURDAYS, SUNDAYS, AND LEGAL 1923
HOLIDAYS, BEFORE EXECUTION OF THIS CONTRACT. 1924
1925
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THIS AGREEMENT IS VOIDABLE BY THE BUYER BY DELIVERING 1926
WRITTEN NOTICE OF THE BUYER'S INTENTION TO CANCEL 1927
WITHIN 15 DAYS, EXCLUDING SATURDAYS, SUNDAYS, AND 1928
LEGAL HOLIDAYS, AFTER THE DATE OF EXECUTION OF THIS 1929
AGREEMENT BY THE BUYER AND THE BUYER'S RECEIPT OF A 1930
CURRENT COPY OF THE INSPECTOR -PREPARED SUMMARY OF THE 1931
MILESTONE INSPECTION REPORT AS DESCRIBED IN SECTION 1932
553.899, FLORIDA STATUTES, IF APPLICABLE; A COPY OF 1933
THE TURNOVER INSPECTION REPORT DESCRIBED IN SECTION 1934
719.301(4)(p) AND (q), FLORIDA STATUTES, IF 1935
APPLICABLE; AND A COPY OF THE ASSOCIATION'S MOST 1936
RECENT STRUCTURAL INTEGRITY RESERVE STUDY DESCRIBED IN 1937
SECTIONS 719.103(24) AND 719.106(1)(k), FLORIDA 1938
STATUTES, IF APPLICABLE. ANY PURPORTED WAIVER OF THESE 1939
VOIDABILITY RIGHTS SHALL BE OF NO EFFECT. THE BU YER 1940
MAY EXTEND THE TIME FOR CLOSING FOR UP TO 15 DAYS, 1941
EXCLUDING SATURDAYS, SUNDAYS, AND LEGAL HOLIDAYS, 1942
AFTER THE BUYER RECEIVES A CURRENT COPY OF THE 1943
INSPECTOR-PREPARED SUMMARY OF THE MILESTONE INSPECTION 1944
REPORT AS DESCRIBED IN SECTION 553.899, FLORIDA 1945
STATUTES; A COPY OF THE TURNOVER INSPECTION REPORT 1946
DESCRIBED IN SECTION 719.301(4)(p) AND (q), FLORIDA 1947
STATUTES; OR A COPY OF THE ASSOCIATION'S MOST RECENT 1948
STRUCTURAL INTEGRITY RESERVE STUDY DESCRIBED IN 1949
SECTIONS 719.103(24) AND 719.106(1)(k), FLORIDA 1950
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STATUTES, IF REQUESTED IN WRITING. BUYER'S RIGHT TO 1951
VOID THIS AGREEMENT TERMINATES AT CLOSING. 1952
1953
A contract that does not conform to the requirements of this 1954
paragraph is voidable at the option of the purchaser before 1955
closing. 1956
(2) NONDEVELOPER DISCLOSURE. — 1957
(a) Each unit owner who is not a developer as defined by 1958
this chapter must comply with this subsection before the sale of 1959
his or her interest in the association. Each prospective 1960
purchaser who has entered into a contract for the purchase of an 1961
interest in a cooperative is entitled, at the seller's expense, 1962
to a current copy of all of the following: 1963
1. The articles of incorporation of the association. 1964
2. The bylaws and rules of the association. 1965
3. A copy of the question and answer sheet as provided in 1966
s. 719.504. 1967
4. A copy of the inspector -prepared summary of the 1968
milestone inspection report as described in s. 553.899 ss. 1969
553.899 and 719.301(4)(p) , if applicable. 1970
5. A copy of the association's most recent structural 1971
integrity reserve study or a statem ent that the association has 1972
not completed a structural integrity reserve study. 1973
6. A copy of the inspection report described in s. 1974
719.301(4)(p) and (q) for a turnover inspection performed on or 1975
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after July 1, 2023. 1976
(d) If the association is required t o have completed a 1977
milestone inspection as described in s. 553.899, a turnover 1978
inspection report for a turnover inspection performed on or 1979
after July 1, 2023, or a structural integrity reserve study, and 1980
the association has not completed the milestone insp ection, the 1981
turnover inspection report, or the structural integrity reserve 1982
study, each contract entered into after December 31, 2024, for 1983
the sale of a residential unit must contain in conspicuous type 1984
a statement indicating that the association is requir ed to have 1985
a milestone inspection, a turnover inspection report, or a 1986
structural integrity reserve study and has not completed such 1987
inspection, report, or study, as applicable. If the association 1988
is not required to have a milestone inspection as described in 1989
s. 553.899 or a structural integrity reserve study, each 1990
contract entered into after December 31, 2024, for the sale of a 1991
residential unit must contain in conspicuous type a statement 1992
indicating that the association is not required to have a 1993
milestone inspection or a structural integrity reserve study, as 1994
applicable. If the association has completed a milestone 1995
inspection as described in s. 553.899, a turnover inspection 1996
report for a turnover inspection performed on or after July 1, 1997
2023, or a structural integrity reserve study, each contract 1998
entered into after December 31, 2024, for the resale of a 1999
residential unit must contain in conspicuous type: 2000
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2001
THE BUYER HEREBY ACKNOWLEDGES THAT THE BUYER HAS BEEN 2002
PROVIDED A CURRENT COPY OF THE INSPECTOR -PREPARED 2003
SUMMARY OF THE MILESTONE INSPECTION REPORT AS 2004
DESCRIBED IN SECTION 553.899, FLORIDA STATUTES, IF 2005
APPLICABLE; A COPY OF THE TURNOVER INSPECTION REPORT 2006
DESCRIBED IN SECTION 719.301(4)(p) AND (q), FLORIDA 2007
STATUTES, IF APPLICABLE; AND A COPY OF THE 2008
ASSOCIATION'S MOST RECENT STRUCTURAL INTEGRITY RESERVE 2009
STUDY DESCRIBED IN SECTIONS 719.103(24) AND 2010
719.106(1)(k), FLORIDA STATUTES, IF APPLICABLE, MORE 2011
THAN 3 DAYS, EXCLUDING SATURDAYS, SUNDAYS, AND LEGAL 2012
HOLIDAYS, BEFORE THE EXECUTION OF THIS CONTRACT. 2013
2014
THIS AGREEMENT IS VOIDABLE BY THE BUYER BY DELIVERING 2015
WRITTEN NOTICE OF THE BUYER'S INTENTION TO CANCEL 2016
WITHIN 3 DAYS, EXCLUDING SATURDAYS, SUNDAYS, AND LEGAL 2017
HOLIDAYS, AFTER THE DATE OF EXECUTION OF THIS 2018
AGREEMENT BY THE BUYER AND THE BUYER'S RECEIPT OF A 2019
CURRENT COPY OF THE INSPECTOR-PREPARED SUMMARY OF THE 2020
MILESTONE INSPECTION REPORT AS DESCRIBED IN SECTION 2021
553.899, FLORIDA STATUTES, IF APPLICABLE; A COPY OF 2022
THE TURNOVER INSPECTION REPORT DESCRIBED IN SECTION 2023
719.301(4)(p) AND (q), FLORIDA STATUTES, IF 2024
APPLICABLE; AND A COPY OF THE ASSOCIATION'S MOST 2025
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RECENT STRUCTURAL INTEGRITY RESERVE STUDY DESCRIBED IN 2026
SECTIONS 719.103(24) AND 719.106(1)(k), FLORIDA 2027
STATUTES, IF APPLICABLE. ANY PURPORTED WAIVER OF THESE 2028
VOIDABILITY RIGHTS SHALL BE OF NO EFFECT. THE BUYER 2029
MAY EXTEND THE TIME FOR CLOSING FOR UP TO 3 DAYS, 2030
EXCLUDING SATURDAYS, SUNDAYS, AND LEGAL HOLIDAYS, 2031
AFTER THE BUYER RECEIVES A CURRENT COPY OF THE 2032
INSPECTOR-PREPARED SUMMARY OF THE MILESTONE INSPECTION 2033
REPORT AS DESCRIBED IN SECTION 553.899, FLORIDA 2034
STATUTES; A COPY OF THE TURNOVER INSPECTION REPORT 2035
DESCRIBED IN SECTION 719.301(4)(p) AND (q), FLORIDA 2036
STATUTES; OR A COPY OF THE ASSOCIATION'S MOST RECENT 2037
STRUCTURAL INTEGRITY RESERVE STUDY DESCRIBED IN 2038
SECTIONS 719.103(24) AND 719.106(1)(k), FLORIDA 2039
STATUTES, IF REQUESTED IN WRITING. THE BUYER'S RIGHT 2040
TO VOID THIS AGREEMENT TERMINATES AT CLOSING. 2041
2042
A contract that does not conform to the requirements of this 2043
paragraph is voidable at the option of the purchaser before 2044
closing. 2045
Section 17. Paragraph (a) of subsection (7) and paragraph 2046
(c) of subsection (20) of section 719.504, Florida Statutes, are 2047
amended to read: 2048
719.504 Prospectus or offering circular. —Every developer 2049
of a residential cooperative which contains more than 20 2050
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residential units, or which is part of a gro up of residential 2051
cooperatives which will be served by property to be used in 2052
common by unit owners of more than 20 residential units, shall 2053
prepare a prospectus or offering circular and file it with the 2054
Division of Florida Condominiums, Timeshares, and Mo bile Homes 2055
prior to entering into an enforceable contract of purchase and 2056
sale of any unit or lease of a unit for more than 5 years and 2057
shall furnish a copy of the prospectus or offering circular to 2058
each buyer. In addition to the prospectus or offering cir cular, 2059
each buyer shall be furnished a separate page entitled 2060
"Frequently Asked Questions and Answers," which must be in 2061
accordance with a format approved by the division. This page 2062
must, in readable language: inform prospective purchasers 2063
regarding their voting rights and unit use restrictions, 2064
including restrictions on the leasing of a unit; indicate 2065
whether and in what amount the unit owners or the association is 2066
obligated to pay rent or land use fees for recreational or other 2067
commonly used facilities; c ontain a statement identifying that 2068
amount of assessment which, pursuant to the budget, would be 2069
levied upon each unit type, exclusive of any special 2070
assessments, and which identifies the basis upon which 2071
assessments are levied, whether monthly, quarterly, or 2072
otherwise; state and identify any court cases in which the 2073
association is currently a party of record in which the 2074
association may face liability in excess of $100,000; and state 2075
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whether membership in a recreational facilities association is 2076
mandatory and, if so, identify the fees currently charged per 2077
unit type. The division shall by rule require such other 2078
disclosure as in its judgment will assist prospective 2079
purchasers. The prospectus or offering circular may include more 2080
than one cooperative, althou gh not all such units are being 2081
offered for sale as of the date of the prospectus or offering 2082
circular. The prospectus or offering circular must contain the 2083
following information: 2084
(7) A description of the recreational and other facilities 2085
that will be used in common with other cooperatives, community 2086
associations, or planned developments which require the payment 2087
of the maintenance and expenses of such facilities, directly or 2088
indirectly, by the unit owners. The description shall include, 2089
but not be limited to, the following: 2090
(a) Each building and facility committed to be built and a 2091
summary description of the structural integrity of each building 2092
for which reserves are required pursuant to s. 719.106(1)(k) . 2093
2094
Descriptions shall include location, areas, ca pacities, numbers, 2095
volumes, or sizes and may be stated as approximations or 2096
minimums. 2097
(20) An estimated operating budget for the cooperative and 2098
the association, and a schedule of the unit owner's expenses 2099
shall be attached as an exhibit and shall contai n the following 2100
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information: 2101
(c) The estimated items of expenses of the cooperative and 2102
the association, except as excluded under paragraph (b), 2103
including, but not limited to, the following items, which shall 2104
be stated as an association expense collectib le by assessments 2105
or as unit owners' expenses payable to persons other than the 2106
association: 2107
1. Expenses for the association and cooperative: 2108
a. Administration of the association. 2109
b. Management fees. 2110
c. Maintenance. 2111
d. Rent for recreational and o ther commonly used areas. 2112
e. Taxes upon association property. 2113
f. Taxes upon leased areas. 2114
g. Insurance. 2115
h. Security provisions. 2116
i. Other expenses. 2117
j. Operating capital. 2118
k. Reserves for all applicable items referenced in s. 2119
719.106(1)(k). 2120
l. Fee payable to the division. 2121
2. Expenses for a unit owner: 2122
a. Rent for the unit, if subject to a lease. 2123
b. Rent payable by the unit owner directly to the lessor 2124
or agent under any recreational lease or lease for the use of 2125
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commonly used areas, which use and payment are a mandatory 2126
condition of ownership and are not included in the common 2127
expense or assessments for common maintenance paid by the unit 2128
owners to the association. 2129
Section 18. Subsection (2) of section 558.002, Florida 2130
Statutes, is amended to read: 2131
558.002 Definitions. —As used in this chapter, the term: 2132
(2) "Association" has the same meaning as in s. 718.103, 2133
s. 719.103 s. 718.103(2), s. 719.103(2) , s. 720.301(9), or s. 2134
723.075. 2135
Section 19. Paragraph (b) of subsection (1) of sec tion 2136
718.116, Florida Statutes, is amended to read: 2137
718.116 Assessments; liability; lien and priority; 2138
interest; collection. — 2139
(1) 2140
(b)1. The liability of a first mortgagee or its successor 2141
or assignees who acquire title to a unit by foreclosure or by 2142
deed in lieu of foreclosure for the unpaid assessments that 2143
became due before the mortgagee's acquisition of title is 2144
limited to the lesser of: 2145
a. The unit's unpaid common expenses and regular periodic 2146
assessments which accrued or came due during the 12 months 2147
immediately preceding the acquisition of title and for which 2148
payment in full has not been received by the association; or 2149
b. One percent of the original mortgage debt. The 2150
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provisions of this paragraph apply only if the first mortgagee 2151
joined the association as a defendant in the foreclosure action. 2152
Joinder of the association is not required if, on the date the 2153
complaint is filed, the association was dissolved or did not 2154
maintain an office or agent for service of process at a location 2155
which was known to or reasonably discoverable by the mortgagee. 2156
2. An association, or its successor or assignee, that 2157
acquires title to a unit through the foreclosure of its lien for 2158
assessments is not liable for any unpaid assessments, late fees, 2159
interest, or reasona ble attorney's fees and costs that came due 2160
before the association's acquisition of title in favor of any 2161
other association, as defined in s. 718.103 s. 718.103(2) or s. 2162
720.301(9), which holds a superior lien interest on the unit. 2163
This subparagraph is int ended to clarify existing law. 2164
Section 20. Paragraph (d) of subsection (2) of section 2165
720.3085, Florida Statutes, is amended to read: 2166
720.3085 Payment for assessments; lien claims. — 2167
(2) 2168
(d) An association, or its successor or assignee, that 2169
acquires title to a parcel through the foreclosure of its lien 2170
for assessments is not liable for any unpaid assessments, late 2171
fees, interest, or reasonable attorney's fees and costs that 2172
came due before the association's acquisition of title in favor 2173
of any other association, as defined in s. 718.103 s. 718.103(2) 2174
or s. 720.301(9), which holds a superior lien interest on the 2175
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parcel. This paragraph is intended to clarify existing law. 2176
Section 21. Effective July 1, 2027, for the purpose of 2177
incorporating the amendments made by this act to section 2178
718.1255, Florida Statutes, in a reference thereto, section 2179
719.1255, Florida Statutes, is reenacted to read: 2180
719.1255 Alternative resolution of disputes. —The Division 2181
of Florida Condominiums, Timeshares, and Mobile Homes of the 2182
Department of Business and Professional Regulation shall provide 2183
for alternative dispute resolution in accordance with s. 2184
718.1255. 2185
Section 22. Paragraph (f) of subsection (1) of section 2186
718.501, Florida Statutes, is reenacted to read: 2187
718.501 Authority, responsibility, and duties of Division 2188
of Florida Condominiums, Timeshares, and Mobile Homes. — 2189
(1) The division may enforce and ensure compliance with 2190
this chapter and rules relating to the development, 2191
construction, sale, lease, owner ship, operation, and management 2192
of residential condominium units and complaints related to the 2193
procedural completion of milestone inspections under s. 553.899. 2194
In performing its duties, the division has complete jurisdiction 2195
to investigate complaints and e nforce compliance with respect to 2196
associations that are still under developer control or the 2197
control of a bulk assignee or bulk buyer pursuant to part VII of 2198
this chapter and complaints against developers, bulk assignees, 2199
or bulk buyers involving improper turnover or failure to 2200
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turnover, pursuant to s. 718.301. However, after turnover has 2201
occurred, the division has jurisdiction to investigate 2202
complaints related only to financial issues, elections, and the 2203
maintenance of and unit owner access to association records 2204
under s. 718.111(12), and the procedural completion of 2205
structural integrity reserve studies under s. 718.112(2)(g). 2206
(f) The division may adopt rules to administer and enforce 2207
this chapter. 2208
Section 23. Paragraph (f) of subsection (1) of sectio n 2209
719.501, Florida Statutes, is reenacted to read: 2210
719.501 Powers and duties of Division of Florida 2211
Condominiums, Timeshares, and Mobile Homes. — 2212
(1) The Division of Florida Condominiums, Timeshares, and 2213
Mobile Homes of the Department of Business and Pr ofessional 2214
Regulation, referred to as the "division" in this part, in 2215
addition to other powers and duties prescribed by chapter 718, 2216
has the power to enforce and ensure compliance with this chapter 2217
and adopted rules relating to the development, constructio n, 2218
sale, lease, ownership, operation, and management of residential 2219
cooperative units; complaints related to the procedural 2220
completion of the structural integrity reserve studies under s. 2221
719.106(1)(k); and complaints related to the procedural 2222
completion of milestone inspections under s. 553.899. In 2223
performing its duties, the division shall have the following 2224
powers and duties: 2225
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(f) The division has authority to adopt rules pursuant to 2226
ss. 120.536(1) and 120.54 to implement and enforce the 2227
provisions of this chapter. 2228
Section 24. For the 2023-2024 fiscal year, the sums of 2229
$1,301,928 in recurring funds and $67,193 in nonrecurring funds 2230
from the Division of Florida Condominiums, Timeshares, and 2231
Mobile Homes Trust Fund are appropriated to the Department of 2232
Business and Professional Regulation, and 10 full -time 2233
equivalent positions with associated salary rate of 487,264 are 2234
authorized for the purpose of implementing this act. 2235
Section 25. Except as otherwise expressly provided in this 2236
act, this act shall t ake effect upon becoming a law. 2237