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Florida Senate - 2025 CS for CS for SB 1742 By the Appropriations Committee on Agriculture, Environment, and General Government; the Committee on Regulated Industries; and Senators Bradley and Pizzo 601-03618-25 20251742c2 1 A bill to be entitled 2 An act relating to condominium and cooperative 3 associations; amending s. 468.432, F.S.; prohibiting a 4 person whose community association manager license is 5 revoked from having an indirect or direct ownership 6 interest in, or being an employee, a partner, an 7 officer, a director, or a trustee of, a community 8 association management firm for a specified timeframe; 9 requiring a licensee to create and maintain an online 10 licensure account with the Department of Business and 11 Professional Regulation; requiring a community 12 association manager to identify on his or her online 13 licensure account certain information; requiring a 14 licensee to provide specific information on his or her 15 online licensure account; requiring that such 16 information be updated within a specified timeframe; 17 requiring a community association management firm to 18 identify on its online licensure account the community 19 association managers that it employs to provide 20 community association management services; requiring 21 the department to give written notice to the community 22 association management firm and the community 23 association if the community association manager has 24 his or her license suspended or revoked; amending s. 25 468.4334, F.S.; prohibiting a community association 26 manager or a community association management firm 27 from knowingly performing any act directed by the 28 community association if such act violates any state 29 or federal law; revising the contractual obligations a 30 community association manager or a community 31 association management firm has with the association 32 board; requiring that such contract include a certain 33 statement, if applicable to the type of management 34 services provided in the contract; prohibiting such 35 contracts from waiving or limiting certain 36 professional practice standards; requiring a community 37 association to include specified information on its 38 website or mobile application, if such association is 39 required to maintain official records on a website or 40 an application; conforming provisions to changes made 41 by the act; amending s. 553.899, F.S.; requiring the 42 local enforcement agency responsible for milestone 43 inspections to provide to the Department of Business 44 and Professional Regulation certain information in an 45 electronic format; specifying the information to be 46 provided to the department; requiring the department 47 to contract with the University of Florida for the 48 creation of a report that provides certain information 49 on milestone inspections during a specified timeframe; 50 requiring a local enforcement agency to provide the 51 university with certain information; authorizing the 52 university to request any additional information from 53 a local enforcement agency required to complete the 54 report; requiring the university to compile the report 55 and the department to transmit the report to the 56 Governor and the Legislature; requiring, rather than 57 authorizing, the board of county commissioners or a 58 municipal governing body to adopt a specified 59 ordinance; requiring specified professionals who bid 60 to perform a structural integrity reserve study to 61 disclose to the association in writing their intent to 62 bid on services related to any maintenance, repair, or 63 replacement that may be recommended by the structural 64 integrity reserve study; prohibiting such 65 professionals from having any interest in or being 66 related to any person having any interest in the firm 67 or entity providing the associations structural 68 integrity reserve study unless such relationship is 69 disclosed in writing; defining the term relative; 70 providing that a contract for services is voidable and 71 terminates upon the association filing a written 72 notice terminating such a contract if such 73 professionals fail to provide a written disclosure of 74 such relationship with the firm conducting the 75 structural integrity reserve study; providing that 76 such professionals may be subject to discipline for 77 failure to provide such written disclosure; amending 78 s. 718.103, F.S.; revising the definition of the term 79 alternative funding method; defining the term video 80 conference; amending s. 718.111, F.S.; requiring a 81 community association manager or a community 82 association management firm that contracts with a 83 community association to possess specific licenses; 84 providing that all board members or officers of a 85 community association that contracts with a community 86 association manager or a community association 87 management firm have a duty to ensure that the 88 community association manager or community association 89 management firm is properly licensed before entering 90 into a contract; authorizing a community association 91 to terminate a contract with a community association 92 manager or a community association management firm if 93 the managers or management firms license is 94 suspended or revoked during the term of the contract; 95 providing that a community association has no further 96 contractual obligations to a community association 97 management firm if such firm has its license suspended 98 or revoked, effective upon the date of the license 99 suspension or revocation; revising which items 100 constitute the official records of the association; 101 requiring that certain documents be posted on certain 102 associations websites or made available for download 103 through an application on a mobile device within a 104 specified timeframe; revising which documents must be 105 posted in digital format on the associations website 106 or application; revising the timeframe in which the 107 association must deliver a copy of the most recent 108 financial report or a notice that a copy of the most 109 recent financial report; revising the methods of 110 delivery for a copy of the most recent association 111 financial report to include electronic delivery via 112 the Internet; requiring that an officer or a director 113 execute an affidavit as evidence of compliance with 114 the delivery requirement; revising how financial 115 reports are prepared; requiring an association board 116 to use best efforts to make prudent investment 117 decisions in fulfilling its duty to manage operating 118 and reserve funds of the association; authorizing an 119 association, including a multicondominium association, 120 to invest reserve funds in specified financial 121 institutions; authorizing such associations to place 122 reserve funds in other investments upon a majority 123 vote of the voting interests of the association; 124 providing restrictions; prohibiting any funds not 125 identified as reserve funds from being used for 126 investments; requiring a board to create an investment 127 committee composed of a specified minimum number of 128 board members; requiring the board to adopt rules; 129 requiring that all meetings of the investment 130 committee be recorded and made part of the official 131 records of the association; requiring that the 132 investment policy statement developed pursuant to 133 certain provisions address specified issues; requiring 134 the investment committee to recommend investment 135 advisers to the board; requiring the board to select 136 one of the recommended investment advisers to provide 137 services to the association; requiring that such 138 advisers be registered; prohibiting an investment 139 adviser from being related to any board member, 140 community management company, reserve study provider, 141 or co-owner of a unit with a board member or 142 investment committee member; requiring investment 143 advisers to comply with the prudent investor rule; 144 requiring an adviser to act as a fiduciary to the 145 association; providing that the investment and 146 fiduciary standards required by the act take 147 precedence over any conflicting law; requiring the 148 investment committee to recommend a replacement 149 adviser if the committee determines that an investment 150 adviser is not meeting requirements; requiring the 151 association to provide the investment adviser with 152 specified financial information at least once each 153 calendar year, or sooner if a substantial financial 154 obligation of the association becomes known to the 155 board; requiring the investment adviser to annually 156 review such financial information and provide the 157 association with a portfolio allocation model that is 158 suitably structured and prudently designed to match 159 projected annual reserve fund requirements and 160 liability, assets, and liquidity requirements; 161 requiring the investment adviser to prepare a funding 162 projection for each reserve component, including any 163 of the components redundancies; requiring that a 164 specified minimum timeframe of projected reserves in 165 cash or cash equivalents be available to the 166 association; authorizing a portfolio managed by an 167 investment adviser to contain any type of investment 168 necessary to meet the objectives in the investment 169 policy statement; providing exceptions; requiring that 170 any funds invested by the investment adviser be held 171 in third-party custodial accounts that are subject to 172 insurance coverage by the Securities Investor 173 Protection Corporation in an amount equal to or 174 greater than the invested amount; authorizing the 175 investment adviser to withdraw investment fees, 176 expenses, and commissions from invested funds; 177 requiring the investment adviser to annually provide 178 the association with a written certification of 179 compliance with certain provisions and provide the 180 association with a list of certain stocks, securities, 181 and other obligations; requiring the investment 182 adviser to submit monthly, quarterly, and annual 183 reports to the association, prepared in accordance 184 with established financial industry standards; 185 requiring that any principal, earnings, or interest 186 managed be available to the association at no cost 187 within a specified timeframe after the associations 188 written or electronic request; requiring that 189 unallocated income earned on reserve fund investments 190 be spent only on specified expenditures; amending s. 191 718.112, F.S.; authorizing an association board 192 meeting to be conducted in person or by video 193 conference; requiring the Division of Florida 194 Condominiums, Timeshares, and Mobile Homes to adopt 195 rules; requiring that notice for board meetings 196 conducted via video conference contain specific 197 information; requiring that such meetings be recorded 198 and maintained as an official record of the 199 association; revising how notice may be sent to unit 200 owners; revising the distance from the condominium 201 property within which a unit owner meeting must be 202 held; authorizing a unit owner to vote electronically 203 if the unit owner meeting is conducted via video 204 conference; authorizing unit owner meetings to be 205 conducted in person or via video conference; 206 specifying what constitutes a quorum for meetings held 207 via video conference; requiring that the location of 208 the meeting be provided in the association bylaws or 209 within a specified distance from the condominium 210 property if the bylaws are silent; requiring that 211 meetings held via video conference be recorded and be 212 maintained as an official record of the association; 213 requiring the division to adopt rules; revising the 214 method of serving notices of unit owner meetings; 215 authorizing budget meetings to be conducted via video 216 conference; requiring the division to adopt rules; 217 requiring that a sound transmitting device be used at 218 such meetings for a specified purpose; revising a 219 provision that a board proposing a budget that 220 requires a certain special assessment against unit 221 owners to simultaneously propose a substitute budget 222 that meets certain requirements, rather than conduct a 223 special meeting of the unit owners to consider a 224 substitute budget after the adoption of the annual 225 budget; requiring unit owners, rather than authorizing 226 them, to consider a substitute budget; authorizing the 227 annual budget initially proposed to be adopted by the 228 board; revising the criteria used in determining 229 whether assessments exceed the specified percentage of 230 assessments of the previous fiscal year; revising the 231 threshold for deferred maintenance expenses or 232 replacements in reserve accounts; authorizing the 233 members to vote to waive the maintenance of reserves 234 recommended in the most recent structural integrity 235 reserve study under certain circumstances; revising 236 the provision that any association, rather than an 237 association operating a multicondominium, may 238 determine to provide no reserves or less reserves than 239 required if an alternative funding method is used by 240 the association; deleting the requirement that the 241 division approve the funding method; providing that 242 specified reserves may be funded by regular 243 assessments, special assessments, lines of credit, or 244 loans under certain circumstances; authorizing a unit 245 owner-controlled association that is required to have 246 a structural reserve study to obtain a line of credit 247 or a loan to fund capital expenses required by a 248 milestone inspection or a structural integrity reserve 249 study; requiring that such line of credit or loan be 250 approved by a majority of the total voting interests 251 of the association; requiring that such line of credit 252 or loan be sufficient to fund the cumulative amount of 253 any previously waived or unfunded portions of the 254 reserve funding amount and the most recent structural 255 integrity reserve study; requiring that funding from 256 the line of credit or loan be immediately available 257 for access by the board for a specified purpose; 258 requiring that such lines of credit or loans be 259 included in the associations financial report; 260 deleting a requirement that the majority of the 261 members must approve of the board pausing 262 contributions to the associations reserves for a 263 specified purpose; authorizing the board to 264 temporarily pause reserve fund contributions or reduce 265 the amount of reserve funding for a specified purpose 266 for a budget adopted on or before a specified date if 267 the association has completed a milestone inspection 268 within a specified timeframe and such inspection 269 recommended certain repairs; requiring that such 270 temporary pause or reduction be approved by a majority 271 of the total voting interests of the association; 272 providing applicability; requiring associations that 273 have paused or reduced their reserve funding to have a 274 structural integrity reserve study performed before 275 the continuation of reserve contributions for 276 specified purposes; providing that a vote of the 277 members is not required for the board to change the 278 accounting method for reserves to specified accounting 279 methods; revising the items to be included in a 280 structural integrity reserve study; requiring 281 specified design professionals or contractors who bid 282 to perform a structural integrity reserve study to 283 disclose in writing to the association their intent to 284 bid on any services related to the maintenance, 285 repair, or replacement that may be recommended by the 286 structural integrity reserve study; prohibiting such 287 professionals or contractors from having any interest 288 in or being related to any person having any interest 289 in the firm or entity providing the associations 290 structural integrity reserve study unless such 291 relationship is disclosed in writing; defining the 292 term relative; providing that a contract for 293 services is voidable and terminates upon the 294 association filing a written notice terminating such a 295 contract if such professional or contractor fails to 296 provide a written disclosure of such relationship with 297 the firm conducting the structural integrity reserve 298 study; providing that such professional or contractor 299 may be subject to discipline for his or her failure to 300 provide such written disclosure; requiring that a 301 structural integrity reserve study include a 302 recommendation for a reserve funding schedule based on 303 specified criteria; authorizing the study to recommend 304 other types of reserve funding schedules, provided 305 each recommended schedule is sufficient to meet the 306 associations maintenance obligations; requiring that 307 reserves not required for certain items be separately 308 identified as such in the structural integrity reserve 309 study; requiring the structural integrity reserve 310 study to take into consideration the funding method or 311 methods used by the association to fund its 312 maintenance and reserve funding obligations through 313 regular assessments, special assessments, loans, or 314 lines of credit; requiring a structural integrity 315 reserve study that has been performed before the 316 approval of a special assessment or the securing of a 317 line of credit or a loan to be updated to reflect 318 certain information regarding the reserve funding 319 schedule; authorizing a structural integrity reserve 320 study to be updated to reflect changes in the useful 321 life of the reserve items after such items are 322 repaired or replaced, and the effect of such repair or 323 replacement will have on the reserve funding schedule; 324 requiring an association to obtain an updated 325 structural integrity reserve study before adopting any 326 budget in which the reserve funding from regular 327 assessments, special assessments, loans, or lines of 328 credit do not align with the funding plan of the most 329 recent version of the structural integrity reserve 330 study; authorizing an association to delay a required 331 structural integrity reserve study for a specified 332 timeframe if it has completed a milestone inspection 333 or similar inspection, for a specified purpose; 334 requiring an officer or director of an association to 335 sign an affidavit acknowledging receipt of the 336 completed structural integrity reserve study; 337 requiring the division to adopt rules for the form for 338 the structural integrity reserve study in coordination 339 with the Florida Building Commission; making technical 340 changes; amending s. 718.501, F.S.; revising the 341 duties of the Division of Florida Condominiums, 342 Timeshares, and Mobile Homes regarding investigation 343 of complaints; requiring condominium associations to 344 create and maintain an online account with the 345 division; requiring board members to maintain accurate 346 contact information on file with the division; 347 requiring the division to adopt rules; requiring all 348 condominium associations to create and maintain an 349 online account with the division; requiring all 350 condominium associations to provide specified 351 information to the division by a specified date; 352 requiring that such information be updated within a 353 specified timeframe; requiring the division to adopt 354 rules; authorizing the division to require condominium 355 associations to provide information to the division; 356 specifying the information to be provided to the 357 division; amending s. 718.503, F.S.; revising the 358 disclosures that must be included in a contract for 359 the sale and resale of a residential unit; amending s. 360 8 of chapter 2024-244, Laws of Florida, as amended; 361 revising the documents required to be posted on 362 certain associations websites or be made available 363 through download using an application on a mobile 364 device; amending s. 31 of chapter 2024-244, Laws of 365 Florida; revising applicability; amending s. 719.104, 366 F.S.; requiring a board to use best efforts to make 367 prudent investment decisions in fulfilling its duty to 368 manage operating and reserve funds of the cooperative 369 association; authorizing an association to invest 370 reserve funds in specified financial institutions; 371 authorizing such associations to place reserve funds 372 in other investments upon a majority vote of the 373 voting interests of the association; providing 374 restrictions; prohibiting any funds not identified as 375 reserve funds from being used for investments; 376 providing applicability; requiring a board to create 377 an investment committee composed of a specified 378 minimum number of board members; requiring the board 379 to adopt rules; requiring that all meetings of the 380 investment committee be recorded and made part of the 381 official records of the association; requiring that 382 the investment policy statement developed pursuant to 383 certain provisions address specified issues; requiring 384 the investment committee to recommend investment 385 advisers to the board; requiring the board to select 386 one of the recommended investment advisers to provide 387 services to the association; requiring such advisers 388 to be registered; prohibiting an investment adviser 389 from being related to any board member, community 390 management company, reserve study provider, or co 391 owner of a unit with a board member or investment 392 committee member; requiring investment advisers to 393 comply with the prudent investor rule; requiring an 394 adviser to act as a fiduciary to the association; 395 providing that the investment and fiduciary standards 396 required by the act take precedence over any 397 conflicting law; requiring the investment committee to 398 recommend a replacement adviser if the committee 399 determines that an investment adviser is not meeting 400 requirements; requiring the association to provide the 401 investment adviser with specified financial 402 information at least once each calendar year, or 403 sooner if a substantial financial obligation of the 404 association becomes known to the board; requiring the 405 investment adviser to annually review such financial 406 information and provide the association with a 407 portfolio allocation model that is suitably structured 408 and prudently designed to match projected annual 409 reserve fund requirements and liability, assets, and 410 liquidity requirements; requiring the investment 411 adviser to prepare a funding projection for each 412 reserve component, including any of the components 413 redundancies; requiring that a specified minimum 414 timeframe of projected reserves in cash or cash 415 equivalents be available to the association; 416 authorizing a portfolio managed by an investment 417 adviser to contain any type of investment necessary to 418 meet the objectives in the investment policy 419 statement; providing exceptions; requiring that any 420 funds invested by the investment adviser be held in 421 third-party custodial accounts that are subject to 422 insurance coverage by the Securities Investor 423 Protection Corporation in an amount equal to or 424 greater than the invested amount; authorizing the 425 investment adviser to withdraw investment fees, 426 expenses, and commissions from invested funds; 427 requiring the investment adviser to annually provide 428 the association with a written certification of 429 compliance with certain provisions and provide the 430 association with a list of certain stocks, securities, 431 and other obligations; requiring the investment 432 adviser to submit monthly, quarterly, and annual 433 reports to the association, prepared in accordance 434 with established financial industry standards; 435 requiring that any principal, earnings, or interest 436 managed be available to the association at no cost 437 within a specified timeframe after the associations 438 written or electronic request; requiring that 439 unallocated income earned on reserve fund investments 440 be spent only on specified expenditures; amending s. 441 719.106, F.S.; revising the deferred maintenance 442 expense or replacement costs threshold that must be in 443 reserve accounts; authorizing the board to pause 444 contributions to its reserves or reduce reserve 445 funding if a local building official determines the 446 entire cooperative building is uninhabitable due to a 447 natural emergency; authorizing any reserve account 448 fund held by the association to be expended to make 449 the cooperative building and its structures habitable, 450 pursuant to the boards determination; requiring the 451 association to immediately resume contributing funds 452 to its reserves once the local building official 453 determines that the cooperative building is habitable; 454 authorizing certain reserves be funded by regular 455 assessments, special assessments, lines of credit, or 456 loans under certain circumstances; authorizing a unit 457 owner-controlled association to obtain a line of 458 credit or a loan to fund capital expenses required by 459 a milestone inspection or a structural integrity 460 reserve study; requiring that such lines of credit or 461 loans be approved by a majority vote of the total 462 voting interests of the association; requiring that 463 such lines of credit or loans be sufficient to fund 464 the cumulative amount of any previously waived or 465 unfunded portion of the reserve funding amount and 466 most recent structural integrity reserve study; 467 requiring that funding from such lines of credit or 468 loans be immediately available for access by the board 469 for a specified purpose; authorizing the board to 470 temporarily pause reserve fund contributions or reduce 471 the amount of reserve funding for a specified purpose 472 for a budget adopted on or before a specified date if 473 the association has completed a milestone inspection 474 within a specified timeframe; requiring that such 475 temporary pause or reduction be approved by a majority 476 of the total voting interests of the association; 477 providing applicability; requiring associations that 478 have paused or reduced their reserve funding 479 contributions to have a structural integrity reserve 480 study performed before the continuation of reserve 481 contributions for specified purposes; providing that a 482 vote of the members is not required for the board to 483 change the accounting method for reserves to specified 484 accounting methods; requiring specified design 485 professionals or contractors who bid to perform a 486 structural integrity reserve study to disclose in 487 writing to the association their intent to bid on any 488 services related to the maintenance, repair, or 489 replacement that may be recommended by the structural 490 integrity reserve study; prohibiting such 491 professionals or contractors from having any interest 492 in or being related to any person having any interest 493 in the firm or entity providing the associations 494 structural integrity reserve study unless such 495 relationship is disclosed in writing; defining the 496 term relative; providing that a contract for 497 services is voidable and terminates upon the 498 association filing a written notice terminating such a 499 contract if such professional or contractor fails to 500 provide a written disclosure of such relationship with 501 the firm conducting the structural integrity reserve 502 study; providing that such professional or contractor 503 may be subject to discipline for his or her failure to 504 provide such written disclosure; requiring that a 505 structural integrity reserve study include a 506 recommendation for a reserve funding schedule based on 507 specified criteria; authorizing the study to recommend 508 other types of reserve funding schedules, provided 509 each recommended schedule is sufficient to meet the 510 associations maintenance obligation; requiring that 511 reserves not required for certain items be separately 512 identified as such in the structural integrity reserve 513 study; requiring the structural integrity reserve 514 study to take into consideration the funding method or 515 methods used by the association to fund its 516 maintenance and reserve funding obligations through 517 regular assessments, special assessments, lines of 518 credit, or loans; requiring a structural integrity 519 reserve study that has been performed before the 520 approval of a special assessment or the securing of a 521 line of credit or a loan to be updated to reflect 522 certain information regarding the reserve funding 523 schedule; authorizing a structural integrity reserve 524 study to be updated to reflect changes in the useful 525 life of the reserve items after such items are 526 repaired or replaced, and the effect of such repair or 527 replacement will have on the reserve funding schedule; 528 requiring an association to obtain an updated 529 structural integrity reserve study before adopting any 530 budget in which the reserve funding from regular 531 assessments, special assessments, lines of credit, or 532 loans do not align with the funding plan of the most 533 recent version of the structural integrity reserve 534 study; authorizing an association to delay a required 535 structural integrity reserve study for a specified 536 timeframe if it has completed a milestone inspection 537 or similar inspection, for a specified purpose; 538 requiring an officer or a director of the association 539 to sign an affidavit acknowledging receipt of the 540 completed structural integrity reserve study; 541 requiring the division to adopt by rule the form for 542 the structural integrity reserve study in coordination 543 with the Florida Building Commission; amending s. 544 719.501, F.S.; requiring a cooperative association to 545 create and maintain an online account with the 546 division; requiring board members to maintain accurate 547 contact information on file with the division; 548 requiring the division to adopt rules; authorizing the 549 division to require cooperative associations to 550 provide information to the division no more than once 551 per year; providing an exception; requiring the 552 division to provide associations a specified timeframe 553 to provide any required information; specifying the 554 information the division may request; amending s. 555 719.503, F.S.; revising the disclosures that must be 556 included in a contract for the sale and resale of an 557 interest in a cooperative; amending s. 914.21, F.S.; 558 revising the definition of the term official 559 investigation; providing appropriations; reenacting 560 s. 721.13(3)(e), F.S., relating to management, to 561 incorporate the amendment made to s. 718.111, F.S., in 562 a reference thereto; reenacting ss. 718.504(7)(a) and 563 (21)(c) and 718.618(1)(d), F.S., relating to 564 prospectus or offering circulars and converter reserve 565 accounts and warranties, respectively, to incorporate 566 the amendment made to s. 718.112, F.S., in references 567 thereto; reenacting s. 718.706(1) and (3), F.S., 568 relating to specific provisions pertaining to offering 569 of units by bulk assignees or bulk buyers, to 570 incorporate the amendments made to ss. 718.111, 571 718.112, and 718.503, F.S., in references thereto; 572 reenacting ss. 719.103(24) and 719.504(7)(a) and 573 (20)(c), F.S., relating to definitions and prospectus 574 or offering circulars, respectively, to incorporate 575 the amendment made to s. 719.106, F.S., in references 576 thereto; providing effective dates. 577 578 Be It Enacted by the Legislature of the State of Florida: 579 580 Section 1.Paragraph (h) is added to subsection (2) of 581 section 468.432, Florida Statutes, and subsection (3) is added 582 to that section, to read: 583 468.432Licensure of community association managers and 584 community association management firms; exceptions. 585 (2)A community association management firm or other 586 similar organization responsible for the management of more than 587 10 units or a budget of $100,000 or greater shall not engage or 588 hold itself out to the public as being able to engage in the 589 business of community association management in this state 590 unless it is licensed by the department as a community 591 association management firm in accordance with the provisions of 592 this part. 593 (h)A person who has had his or her community association 594 manager license revoked may not have an indirect or direct 595 ownership interest in, or be an employee, a partner, an officer, 596 a director, or a trustee of, a community association management 597 firm during the 10-year period after the effective date of the 598 revocation. Such person is ineligible to reapply for 599 certification or registration under this part for a period of 10 600 years after the effective date of a revocation. 601 (3) A licensee must create and maintain an online licensure 602 account with the department. Each community association manager 603 must identify on his or her online licensure account the 604 community association management firm for which he or she 605 provides management services and identify each community 606 association for which he or she is the designated on-site 607 community association manager. A licensee must update his or her 608 online licensure account with this information within 30 days 609 after any change to the required information. A community 610 association management firm must identify on its online 611 licensure account the community association managers that it 612 employs to provide community association management services. If 613 a community association manager has his or her license suspended 614 or revoked, the department must give written notice of such 615 suspension or revocation to the community association management 616 firm and the community association for which the manager 617 performs community management services. 618 Section 2.Subsections (1) and (3) of section 468.4334, 619 Florida Statutes, are amended to read: 620 468.4334Professional practice standards; liability; 621 community association manager requirements; return of records 622 after termination of contract. 623 (1)(a)A community association manager or a community 624 association management firm is deemed to act as agent on behalf 625 of a community association as principal within the scope of 626 authority authorized by a written contract or under this 627 chapter. A community association manager or a community 628 association management firm may not knowingly perform any act 629 directed by the community association if such an act violates 630 any state or federal law. A community association manager and a 631 community association management firm shall discharge duties 632 performed on behalf of the association as authorized by this 633 chapter loyally, skillfully, and diligently; dealing honestly 634 and fairly; in good faith; with care and full disclosure to the 635 community association; accounting for all funds; and not 636 charging unreasonable or excessive fees. 637 (b)If a community association manager or a community 638 association management firm has a contract with a community 639 association that is subject to the milestone inspection 640 requirements in s. 553.899, or the structural integrity reserve 641 study requirements in s. 718.112(2)(g) and 719.106(1)(k), the 642 community association manager or the community association 643 management firm must comply with those sections that section as 644 directed by the board. 645 (c) Each contract between a community association and a 646 community association manager or community association 647 management firm for community association management services 648 must include the following written statement in at least 12 649 point type, if applicable to the type of management services 650 provided in the contract: 651 652 The community association manager shall abide by all 653 professional standards and record keeping requirements 654 imposed pursuant to part VIII of chapter 468, Florida 655 Statutes. 656 657 (d)A contract between a community association manager or 658 community association management firm and a community 659 association may not waive or limit the professional practice 660 standards required pursuant to this part. 661 (3)A community association manager or community 662 association management firm that is authorized by contract to 663 provide community association management services to a community 664 homeowners association shall do all of the following: 665 (a)Attend in person at least one member meeting or board 666 meeting of the community homeowners association annually. 667 (b)Provide to the members of the community homeowners 668 association the name and contact information for each community 669 association manager or representative of a community association 670 management firm assigned to the community homeowners 671 association, the managers or representatives hours of 672 availability, and a summary of the duties for which the manager 673 or representative is responsible. The community homeowners 674 association shall also post this information on the 675 associations website or mobile application, if the association 676 is required to maintain official records on a website or 677 application required under s. 720.303(4)(b). The community 678 association manager or community association management firm 679 shall update the community homeowners association and its 680 members within 14 business days after any change to such 681 information. 682 (c)Provide to any member upon request a copy of the 683 contract between the community association manager or community 684 association management firm and the community homeowners 685 association and include such contract with associations 686 official records. 687 Section 3.Subsection (11) and present subsections (12) and 688 (13) of section 553.899, Florida Statutes, are amended, 689 paragraphs (e) and (f) are added to subsection (3) and a new 690 subsection (12) is added to that section, to read: 691 553.899Mandatory structural inspections for condominium 692 and cooperative buildings. 693 (3) 694 (e)On or before October 1, 2025, and on or before each 695 December 31 thereafter, the local enforcement agency responsible 696 for milestone inspections must provide the department, in an 697 electronic format determined by the department, information that 698 may include, but is not limited to: 699 1. The number of buildings required to have a milestone 700 inspection within the agencys jurisdiction. 701 2. The number of buildings for which a phase one milestone 702 inspection has been completed. 703 3. The number of buildings granted an extension under 704 paragraph (3)(c). 705 4. The number of buildings required to have a phase two 706 milestone inspection. 707 5. The number of buildings for which a phase two milestone 708 inspection has been completed. 709 6. The number, type, and value of permits applied for to 710 complete repairs pursuant to a phase two milestone inspection. 711 7. A list of buildings deemed to be unsafe or uninhabitable 712 due to a milestone inspection. 713 8. The license number of the building code administrator 714 responsible for milestone inspections for the local enforcement 715 agency. 716 (f) Subject to appropriation, the department shall contract 717 with the University of Florida for the purpose of creating a 718 report that provides comprehensive data, evaluation, and 719 analysis on the milestone inspections performed throughout this 720 state during each calendar year or other time period approved by 721 the department. Every local enforcement agency responsible for 722 milestone inspections must provide the university with a copy of 723 any phase one or phase two milestone inspection report by the 724 date specified by the department in a manner prescribed by the 725 university. The university may request any additional 726 information from a local enforcement agency which the university 727 requires to complete this report. The university shall compile 728 the report, and the department shall transmit the report to the 729 Governor, the President of the Senate, and the Speaker of the 730 House of Representatives. 731 (11)A board of county commissioners or municipal governing 732 body shall may adopt an ordinance requiring that a condominium 733 or cooperative association and any other owner that is subject 734 to this section schedule or commence repairs for substantial 735 structural deterioration within a specified timeframe after the 736 local enforcement agency receives a phase two inspection report; 737 however, such repairs must be commenced within 365 days after 738 receiving such report. If an owner of the building fails to 739 submit proof to the local enforcement agency that repairs have 740 been scheduled or have commenced for substantial structural 741 deterioration identified in a phase two inspection report within 742 the required timeframe, the local enforcement agency must review 743 and determine if the building is unsafe for human occupancy. 744 (12) A licensed architect or engineer who bids to perform a 745 milestone inspection must disclose in writing to the association 746 his or her intent to bid on any services related to any 747 maintenance, repair, or replacement which may be recommended by 748 the milestone inspection. Any design professional as defined in 749 s. 558.002(7) or contractor licensed under chapter 489 who 750 submits a bid to the association for performing any services 751 recommended by the milestone inspection may not have an 752 interest, directly or indirectly, in the firm or entity 753 providing the milestone inspection or be a relative of any 754 person having a direct or indirect interest in such firm, unless 755 such relationship is disclosed to the association in writing. As 756 used in this section, the term relative means a relative 757 within the third degree of consanguinity by blood or marriage. A 758 contract for services is voidable and terminates upon the 759 association filing a written notice terminating the contract if 760 the design professional or licensed contractor failed to provide 761 the written disclosure of the relationship required under this 762 subsection. A design professional or licensed contractor may be 763 subject to discipline under the applicable practice act for his 764 or her profession for failure to provide the written disclosure 765 of the relationship required under this subsection. 766 (13)(12)By December 31, 2024, the Florida Building 767 Commission shall adopt rules pursuant to ss. 120.536(1) and 768 120.54 to establish a building safety program for the 769 implementation of this section within the Florida Building Code: 770 Existing Building. The building inspection program must, at 771 minimum, include inspection criteria, testing protocols, 772 standardized inspection and reporting forms that are adaptable 773 to an electronic format, and record maintenance requirements for 774 the local authority. 775 (14)(13)The Florida Building Commission shall consult with 776 the State Fire Marshal to provide recommendations to the 777 Legislature for the adoption of comprehensive structural and 778 life safety standards for maintaining and inspecting all types 779 of buildings and structures in this state that are three stories 780 or more in height. The commission shall provide a written report 781 of its recommendations to the Governor, the President of the 782 Senate, and the Speaker of the House of Representatives by 783 December 31, 2023. 784 Section 4.Present subsections (33) and (34) of section 785 718.103, Florida Statutes, are redesignated as subsections (34) 786 and (35), respectively, a new subsection (33) is added to that 787 section, and subsection (1) of that section is amended, to read: 788 718.103Definitions.As used in this chapter, the term: 789 (1)Alternative funding method means a method approved by 790 the division for funding the capital expenditures and deferred 791 maintenance obligations of the association for a 792 multicondominium association operating at least 25 condominiums 793 which may reasonably be expected to fully satisfy the 794 associations reserve funding obligations by the, including: 795 (a) The allocation of funds in the annual operating budget 796 of a multicondominium; or 797 (b) Any other method defined by rule of the division which 798 may reasonably be expected to fully satisfy the associations 799 reserve funding obligations or fund its capital expenditure and 800 deferred maintenance obligations. 801 (33) Video conference means a real-time audio and video 802 based meeting between two or more people in different locations 803 using video-enabled and audio-enabled devices. The notice for 804 any meeting that will be conducted by video conference must have 805 a hyperlink and call-in conference telephone number for unit 806 owners to attend the meeting and must have a physical location 807 where unit owners can also attend the meeting in person. All 808 meetings conducted by video conference must be recorded and such 809 recording must be maintained as an official record of the 810 association. 811 Section 5.Paragraphs (a) and (g) of subsection (12) and 812 subsection (13) of section 718.111, Florida Statutes, are 813 amended, paragraphs (g), (h), and (i) are added to subsection 814 (3) of that section, and subsection (16) is added to that 815 section, to read: 816 718.111The association. 817 (3)POWER TO MANAGE CONDOMINIUM PROPERTY AND TO CONTRACT, 818 SUE, AND BE SUED; CONFLICT OF INTEREST. 819 (g) If an association contracts with a community 820 association manager or a community association management firm, 821 the community association manager or community association 822 management firm must possess all applicable licenses required by 823 part VIII of chapter 468. All board members or officers of an 824 association that contracts with a community association manager 825 or a community association management firm have a duty to ensure 826 that the community association manager or community association 827 management firm is properly licensed before entering into a 828 contract. 829 (h) If a community association manager has his or her 830 license suspended or revoked during the term of a contract with 831 the association, the association may terminate the contract upon 832 delivery of a written notice to the community association 833 manager whose license has been revoked or suspended, effective 834 on the date the community association manager became unlicensed. 835 (i) If a community association management firm has its 836 license suspended or revoked during the term of a contract with 837 the association, the association has the right to terminate the 838 contract upon delivery of a written notice to the community 839 association management firm whose license has been revoked or 840 suspended, effective on the date the community association 841 management firm became unlicensed. 842 (12)OFFICIAL RECORDS. 843 (a)From the inception of the association, the association 844 shall maintain each of the following items, if applicable, which 845 constitutes the official records of the association: 846 1.A copy of the plans, permits, warranties, and other 847 items provided by the developer under s. 718.301(4). 848 2.A copy photocopy of the recorded declaration of 849 condominium of each condominium operated by the association and 850 each amendment to each declaration. 851 3.A copy photocopy of the recorded bylaws of the 852 association and each amendment to the bylaws. 853 4.A certified copy of the articles of incorporation of the 854 association, or other documents creating the association, and 855 each amendment thereto. 856 5.A copy of the current rules of the association. 857 6.A book or books or electronic records that contain the 858 minutes of all meetings of the association, the board of 859 administration, any committee, and the unit owners, and a 860 recording of all such meetings that are conducted by video 861 conference. If there are approved minutes for a meeting held by 862 video conference, recordings of meetings that are conducted by 863 video conference must be maintained for at least 1 year after 864 the date the video recording is posted as required under 865 paragraph (g). 866 7.A current roster of all unit owners and their mailing 867 addresses, unit identifications, voting certifications, and, if 868 known, telephone numbers. The association shall also maintain 869 the e-mail addresses and facsimile numbers of unit owners 870 consenting to receive notice by electronic transmission. In 871 accordance with sub-subparagraph (c)5.e., the e-mail addresses 872 and facsimile numbers are only accessible to unit owners if 873 consent to receive notice by electronic transmission is 874 provided, or if the unit owner has expressly indicated that such 875 personal information can be shared with other unit owners and 876 the unit owner has not provided the association with a request 877 to opt out of such dissemination with other unit owners. An 878 association must ensure that the e-mail addresses and facsimile 879 numbers are only used for the business operation of the 880 association and may not be sold or shared with outside third 881 parties. If such personal information is included in documents 882 that are released to third parties, other than unit owners, the 883 association must redact such personal information before the 884 document is disseminated. However, the association is not liable 885 for an inadvertent disclosure of the e-mail address or facsimile 886 number for receiving electronic transmission of notices unless 887 such disclosure was made with a knowing or intentional disregard 888 of the protected nature of such information. 889 8.All current insurance policies of the association and 890 condominiums operated by the association. 891 9.A current copy of any management agreement, lease, or 892 other contract to which the association is a party or under 893 which the association or the unit owners have an obligation or 894 responsibility. 895 10.Bills of sale or transfer for all property owned by the 896 association. 897 11.Accounting records for the association and separate 898 accounting records for each condominium that the association 899 operates. Any person who knowingly or intentionally defaces or 900 destroys such records, or who knowingly or intentionally fails 901 to create or maintain such records, with the intent of causing 902 harm to the association or one or more of its members, is 903 personally subject to a civil penalty pursuant to s. 904 718.501(1)(e). The accounting records must include, but are not 905 limited to: 906 a.Accurate, itemized, and detailed records of all receipts 907 and expenditures, including all bank statements and ledgers. 908 b.All invoices, transaction receipts, or deposit slips 909 that substantiate any receipt or expenditure of funds by the 910 association. 911 c.A current account and a monthly, bimonthly, or quarterly 912 statement of the account for each unit designating the name of 913 the unit owner, the due date and amount of each assessment, the 914 amount paid on the account, and the balance due. 915 d.All audits, reviews, accounting statements, structural 916 integrity reserve studies, and financial reports of the 917 association or condominium. Structural integrity reserve studies 918 must be maintained for at least 15 years after the study is 919 completed. 920 e.All contracts for work to be performed. Bids for work to 921 be performed are also considered official records and must be 922 maintained by the association for at least 1 year after receipt 923 of the bid. 924 12.Ballots, sign-in sheets, voting proxies, and all other 925 papers and electronic records relating to voting by unit owners, 926 which must be maintained for 1 year from the date of the 927 election, vote, or meeting to which the document relates, 928 notwithstanding paragraph (b). 929 13.All rental records if the association is acting as 930 agent for the rental of condominium units. 931 14.A copy of the current question and answer sheet as 932 described in s. 718.504. 933 15.A copy of the inspection reports described in ss. 934 553.899 and 718.301(4)(p) and any other inspection report 935 relating to a structural or life safety inspection of 936 condominium property. Such record must be maintained by the 937 association for 15 years after receipt of the report. 938 16.Bids for materials, equipment, or services. 939 17.All affirmative acknowledgments made pursuant to s. 940 718.121(4)(c). 941 18.A copy of all building permits. 942 19.A copy of all satisfactorily completed board member 943 educational certificates. 944 20.A copy of all affidavits required by this chapter. 945 21. A copy of all investment policy statements adopted 946 pursuant to paragraph (16)(c), and all financial statements 947 related to the associations investment of funds under 948 subsection (16). 949 22.20.All other written records of the association not 950 specifically included in the foregoing which are related to the 951 operation of the association. 952 (g)1.By January 1, 2019, an association managing a 953 condominium with 150 or more units which does not contain 954 timeshare units shall post digital copies of the documents 955 specified in subparagraph 2. on its website or make such 956 documents available through an application that can be 957 downloaded on a mobile device. Unless a shorter period is 958 otherwise required, a document must be made available on the 959 associations website or made available for download through an 960 application on a mobile device within 30 days after the 961 association receives or creates an official record specified in 962 subparagraph 2. 963 a.The associations website or application must be: 964 (I)An independent website, application, or web portal 965 wholly owned and operated by the association; or 966 (II)A website, application, or web portal operated by a 967 third-party provider with whom the association owns, leases, 968 rents, or otherwise obtains the right to operate a web page, 969 subpage, web portal, collection of subpages or web portals, or 970 an application which is dedicated to the associations 971 activities and on which required notices, records, and documents 972 may be posted or made available by the association. 973 b.The associations website or application must be 974 accessible through the Internet and must contain a subpage, web 975 portal, or other protected electronic location that is 976 inaccessible to the general public and accessible only to unit 977 owners and employees of the association. 978 c.Upon a unit owners written request, the association 979 must provide the unit owner with a username and password and 980 access to the protected sections of the associations website or 981 application which contain any notices, records, or documents 982 that must be electronically provided. 983 2.A current copy of the following documents must be posted 984 in digital format on the associations website or application: 985 a.The recorded declaration of condominium of each 986 condominium operated by the association and each amendment to 987 each declaration. 988 b.The recorded bylaws of the association and each 989 amendment to the bylaws. 990 c.The articles of incorporation of the association, or 991 other documents creating the association, and each amendment to 992 the articles of incorporation or other documents. The copy 993 posted pursuant to this sub-subparagraph must be a copy of the 994 articles of incorporation filed with the Department of State. 995 d.The rules of the association. 996 e.The approved minutes of all board of administration 997 meetings over the preceding 12 months. 998 f.The video recording or a hyperlink to the video 999 recording for all meetings of the association, the board of 1000 administration, any committee, and the unit owners which are 1001 conducted by video conference over the preceding 12 months. 1002 g.e.A list of all executory contracts or documents to 1003 which the association is a party or under which the association 1004 or the unit owners have an obligation or responsibility and, 1005 after bidding for the related materials, equipment, or services 1006 has closed, a list of bids received by the association within 1007 the past year. Summaries of bids for materials, equipment, or 1008 services which exceed $500 must be maintained on the website or 1009 application for 1 year. In lieu of summaries, complete copies of 1010 the bids may be posted. 1011 h.f.The annual budget required by s. 718.112(2)(f) and any 1012 proposed budget to be considered at the annual meeting. 1013 i.g.The financial report required by subsection (13) and 1014 any monthly income or expense statement to be considered at a 1015 meeting. 1016 j.h.The certification of each director required by s. 1017 718.112(2)(d)4.b. 1018 k.i.All contracts or transactions between the association 1019 and any director, officer, corporation, firm, or association 1020 that is not an affiliated condominium association or any other 1021 entity in which an association director is also a director or 1022 officer and financially interested. 1023 l.j.Any contract or document regarding a conflict of 1024 interest or possible conflict of interest as provided in ss. 1025 468.4335, 468.436(2)(b)6., and 718.3027(3). 1026 m.k.The notice of any unit owner meeting and the agenda 1027 for the meeting, as required by s. 718.112(2)(d)3., no later 1028 than 14 days before the meeting. The notice must be posted in 1029 plain view on the front page of the website or application, or 1030 on a separate subpage of the website or application labeled 1031 Notices which is conspicuously visible and linked from the 1032 front page. The association must also post on its website or 1033 application any document to be considered and voted on by the 1034 owners during the meeting or any document listed on the agenda 1035 at least 7 days before the meeting at which the document or the 1036 information within the document will be considered. 1037 n.l.Notice of any board meeting, the agenda, and any other 1038 document required for the meeting as required by s. 1039 718.112(2)(c), which must be posted no later than the date 1040 required for notice under s. 718.112(2)(c). 1041 o.m.The inspection reports described in ss. 553.899 and 1042 718.301(4)(p) and any other inspection report relating to a 1043 structural or life safety inspection of condominium property. 1044 p.n.The associations most recent structural integrity 1045 reserve study, if applicable. 1046 q.o.Copies of all building permits issued for ongoing or 1047 planned construction. 1048 r. A copy of all affidavits required by this chapter. 1049 s. A copy of all investment policy statements adopted 1050 pursuant to paragraph (16)(c), and all financial statements 1051 related to the associations investment of funds under 1052 subsection (16). 1053 3.The association shall ensure that the information and 1054 records described in paragraph (c), which are not allowed to be 1055 accessible to unit owners, are not posted on the associations 1056 website or application. If protected information or information 1057 restricted from being accessible to unit owners is included in 1058 documents that are required to be posted on the associations 1059 website or application, the association shall ensure the 1060 information is redacted before posting the documents. 1061 Notwithstanding the foregoing, the association or its agent is 1062 not liable for disclosing information that is protected or 1063 restricted under this paragraph unless such disclosure was made 1064 with a knowing or intentional disregard of the protected or 1065 restricted nature of such information. 1066 4.The failure of the association to post information 1067 required under subparagraph 2. is not in and of itself 1068 sufficient to invalidate any action or decision of the 1069 associations board or its committees. 1070 (13)FINANCIAL REPORTING.Within 90 days after the end of 1071 the fiscal year, or annually on a date provided in the bylaws, 1072 the association shall prepare and complete, or contract for the 1073 preparation and completion of, a financial report for the 1074 preceding fiscal year. Within 21 days after the final financial 1075 report is completed by the association or received from the 1076 third party, but not later than 180 120 days after the end of 1077 the fiscal year or other date as provided in the bylaws, the 1078 association shall deliver to each unit owner by United States 1079 mail or personal delivery at the mailing address, property 1080 address, e-mail address, or facsimile number provided to fulfill 1081 the associations notice requirements, a copy of the most recent 1082 financial report, or and a notice that a copy of the most recent 1083 financial report will be, as requested by the owner, mailed, or 1084 hand delivered, or electronically delivered via the Internet to 1085 the unit owner, without charge, within 5 business days after 1086 receipt of a written request from the unit owner. Evidence of 1087 compliance with this delivery requirement must be made by an 1088 affidavit executed by an officer or director of the association. 1089 The division shall adopt rules setting forth uniform accounting 1090 principles and standards to be used by all associations and 1091 addressing the financial reporting requirements for 1092 multicondominium associations. The rules must include, but not 1093 be limited to, standards for presenting a summary of association 1094 reserves, including a good faith estimate disclosing the annual 1095 amount of reserve funds that would be necessary for the 1096 association to fully fund reserves for each reserve item based 1097 on the straight-line accounting method. This disclosure is not 1098 applicable to reserves funded via the pooling method. In 1099 adopting such rules, the division shall consider the number of 1100 members and annual revenues of an association. Financial reports 1101 shall be prepared as follows: 1102 (a)An association that meets the criteria of this 1103 paragraph shall prepare a complete set of financial statements 1104 in accordance with generally accepted accounting principles. The 1105 financial statements must be based upon the associations total 1106 annual revenues, as follows: 1107 1.An association with total annual revenues of $150,000 or 1108 more, but less than $300,000, shall prepare compiled financial 1109 statements. 1110 2.An association with total annual revenues of at least 1111 $300,000, but less than $500,000, shall prepare reviewed 1112 financial statements. 1113 3.An association with total annual revenues of $500,000 or 1114 more shall prepare audited financial statements. 1115 (b)1.An association with total annual revenues of less 1116 than $150,000 shall prepare a report of cash receipts and 1117 expenditures. 1118 2.A report of cash receipts and disbursements must 1119 disclose the amount of receipts by accounts and receipt 1120 classifications and the amount of expenses by accounts and 1121 expense classifications, including, but not limited to, the 1122 following, as applicable: costs for security, professional and 1123 management fees and expenses, taxes, costs for recreation 1124 facilities, expenses for refuse collection and utility services, 1125 expenses for lawn care, costs for building maintenance and 1126 repair, insurance costs, administration and salary expenses, and 1127 reserves accumulated and expended for capital expenditures, 1128 deferred maintenance, and any other category for which the 1129 association maintains reserves. 1130 (c)An association may prepare, without a meeting of or 1131 approval by the unit owners: 1132 1.Compiled, reviewed, or audited financial statements, if 1133 the association is required to prepare a report of cash receipts 1134 and expenditures; 1135 2.Reviewed or audited financial statements, if the 1136 association is required to prepare compiled financial 1137 statements; or 1138 3.Audited financial statements if the association is 1139 required to prepare reviewed financial statements. 1140 (d)If approved by a majority vote of all the voting 1141 interests present at a properly called meeting of the 1142 association, an association may prepare: 1143 1.A report of cash receipts and expenditures in lieu of a 1144 compiled, reviewed, or audited financial statement; 1145 2.A report of cash receipts and expenditures or a compiled 1146 financial statement in lieu of a reviewed or audited financial 1147 statement; or 1148 3.A report of cash receipts and expenditures, a compiled 1149 financial statement, or a reviewed financial statement in lieu 1150 of an audited financial statement. 1151 1152 Such meeting and approval must occur before the end of the 1153 fiscal year and is effective only for the fiscal year in which 1154 the vote is taken. An association may not prepare a financial 1155 report pursuant to this paragraph for consecutive fiscal years. 1156 If the developer has not turned over control of the association, 1157 all unit owners, including the developer, may vote on issues 1158 related to the preparation of the associations financial 1159 reports, from the date of incorporation of the association 1160 through the end of the second fiscal year after the fiscal year 1161 in which the certificate of a surveyor and mapper is recorded 1162 pursuant to s. 718.104(4)(e) or an instrument that transfers 1163 title to a unit in the condominium which is not accompanied by a 1164 recorded assignment of developer rights in favor of the grantee 1165 of such unit is recorded, whichever occurs first. Thereafter, 1166 all unit owners except the developer may vote on such issues 1167 until control is turned over to the association by the 1168 developer. Any audit or review prepared under this section shall 1169 be paid for by the developer if done before turnover of control 1170 of the association. 1171 (e)A unit owner may provide written notice to the division 1172 of the associations failure to mail or hand deliver him or her 1173 a copy of the most recent financial report within 5 business 1174 days after he or she submitted a written request to the 1175 association for a copy of such report. If the division 1176 determines that the association failed to mail or hand deliver a 1177 copy of the most recent financial report to the unit owner, the 1178 division shall provide written notice to the association that 1179 the association must mail or hand deliver a copy of the most 1180 recent financial report to the unit owner and the division 1181 within 5 business days after it receives such notice from the 1182 division. An association that fails to comply with the 1183 divisions request may not waive the financial reporting 1184 requirement provided in paragraph (d) for the fiscal year in 1185 which the unit owners request was made and the following fiscal 1186 year. A financial report received by the division pursuant to 1187 this paragraph shall be maintained, and the division shall 1188 provide a copy of such report to an association member upon his 1189 or her request. 1190 (16)INVESTMENT OF ASSOCIATION FUNDS. 1191 (a)A board shall, in fulfilling its duty to manage 1192 operating and reserve funds of its association, use best efforts 1193 to make prudent investment decisions that carefully consider 1194 risk and return in an effort to maximize returns on invested 1195 funds. 1196 (b)An association, including a multicondominium 1197 association, may invest reserve funds in one or any combination 1198 of certificates of deposit or in depository accounts at a 1199 community bank, savings bank, commercial bank, savings and loan 1200 association, or credit union. Upon a majority vote of the voting 1201 interests, an association may invest reserve funds in 1202 investments other than certificates of deposit or depository 1203 accounts at a community bank, savings bank, commercial bank, 1204 savings and loan association, or credit union, provided the 1205 association complies with paragraphs (c)-(g). Notwithstanding 1206 any declaration, only funds identified as reserve funds may be 1207 invested pursuant to paragraphs (c)-(g). Paragraphs (c)-(g) do 1208 not apply to funds invested in one or any combination of 1209 certificates of deposit or depository accounts at a community 1210 bank, savings bank, commercial bank, savings and loan 1211 association, or credit union. 1212 (c)The board shall create an investment committee composed 1213 of at least two board members and two-unit unit owners who are 1214 not board members. The board shall also adopt rules for invested 1215 funds, including, but not limited to, rules requiring periodic 1216 reviews of any investment managers performance, the development 1217 of an investment policy statement, and that all meetings of the 1218 investment committee be recorded and made part of the official 1219 records of the association. The investment policy statement 1220 developed pursuant to this paragraph must, at a minimum, address 1221 risk, liquidity, and benchmark measurements; authorized classes 1222 of investments; authorized investment mixes; limitations on 1223 authority relating to investment transactions; requirements for 1224 projected reserve expenditures within, at minimum, the next 24 1225 months to be held in cash or cash equivalents; projected 1226 expenditures relating to a mandatory structural inspection 1227 performed pursuant to s. 553.899; and protocols for proxy 1228 response. 1229 (d)The investment committee shall recommend investment 1230 advisers to the board, and the board shall select one of the 1231 recommended investment advisers to provide services to the 1232 association. Such investment advisers must be registered or have 1233 notice filed under s. 517.12. The selected investment adviser 1234 and any representative or association of the investment adviser 1235 may not be related by affinity or consanguinity to, or under 1236 common ownership with, any board member, community management 1237 company, reserve study provider, or co-owner of a unit with a 1238 board member or investment committee member. The investment 1239 adviser shall comply with the prudent investor rule in s. 1240 518.11. The investment adviser shall act as a fiduciary to the 1241 association in compliance with the standards set forth in the 1242 Employee Retirement Income Security Act of 1974 at 29 U.S.C. s. 1243 1104(a)(1)(A)-(C). In case of conflict with other laws 1244 authorizing investments, the investment and fiduciary standards 1245 set forth in this subsection must prevail. If at any time the 1246 investment committee determines that an investment adviser does 1247 not meet the requirements of this section, the investment 1248 committee must recommend a replacement investment adviser to the 1249 board. 1250 (e)At least once each calendar year, or sooner if a 1251 substantial financial obligation of the association becomes 1252 known to the board, the association must provide the investment 1253 adviser with the associations investment policy statement, the 1254 most recent reserve study report, the associations structural 1255 integrity report, and the financial reports prepared pursuant to 1256 subsection (13). If there is no recent reserve study report, the 1257 association must provide the investment adviser with a good 1258 faith estimate disclosing the annual amount of reserve funds 1259 necessary for the association to fund reserves fully for the 1260 life of each reserve component and each components 1261 redundancies. The investment adviser shall annually review these 1262 documents and provide the association with a portfolio 1263 allocation model that is suitably structured and prudently 1264 designed to match projected annual reserve fund requirements and 1265 liability, assets, and liquidity requirements. The investment 1266 adviser shall prepare a funding projection for each reserve 1267 component, including any of the components redundancies. The 1268 association must have available at all times a minimum of 24 1269 months of projected reserves in cash or cash equivalents. 1270 (f)Portfolios managed by the investment adviser may 1271 contain any type of investment necessary to meet the objectives 1272 in the investment policy statement; however, portfolios may not 1273 contain stocks, securities, or other obligations that the State 1274 Board of Administration is prohibited from investing in under s. 1275 215.471, s. 215.4725, or s. 215.473 or that state agencies are 1276 prohibited from investing in under s. 215.472, as determined by 1277 the investment adviser. Any funds invested by the investment 1278 adviser must be held in third-party custodial accounts that are 1279 subject to insurance coverage by the Securities Investor 1280 Protection Corporation in an amount equal to or greater than the 1281 invested amount. The investment adviser may withdraw investment 1282 fees, expenses, and commissions from invested funds. 1283 (g)The investment adviser shall: 1284 1.Annually provide the association with a written 1285 certification of compliance with this section and a list of 1286 stocks, securities, and other obligations that are prohibited 1287 from being in association portfolios under paragraph (f); and 1288 2.Submit monthly, quarterly, and annual reports to the 1289 association which are prepared in accordance with established 1290 financial industry standards and in accordance with chapter 517. 1291 (h)Any principal, earnings, or interest managed under this 1292 subsection must be available at no cost or charge to the 1293 association within 15 business days after delivery of the 1294 associations written or electronic request. 1295 (i)Unallocated income earned on reserve fund investments 1296 must be spent only on capital expenditures, planned maintenance, 1297 structural repairs, or other items for which the reserve 1298 accounts have been established. Any surplus of funds that 1299 exceeds the amount required to maintain reasonably funded 1300 reserves must be managed pursuant to s. 718.115. 1301 Section 6.Paragraphs (b) through (g) of subsection (2) of 1302 section 718.112, Florida Statutes, are amended to read: 1303 718.112Bylaws. 1304 (2)REQUIRED PROVISIONS.The bylaws shall provide for the 1305 following and, if they do not do so, shall be deemed to include 1306 the following: 1307 (b)Quorum; voting requirements; proxies. 1308 1.Unless a lower number is provided in the bylaws, the 1309 percentage of voting interests required to constitute a quorum 1310 at a meeting of the members is a majority of the voting 1311 interests. Unless otherwise provided in this chapter or in the 1312 declaration, articles of incorporation, or bylaws, and except as 1313 provided in subparagraph (d)4., decisions shall be made by a 1314 majority of the voting interests represented at a meeting at 1315 which a quorum is present. 1316 2.Except as specifically otherwise provided herein, unit 1317 owners in a residential condominium may not vote by general 1318 proxy, but may vote by limited proxies substantially conforming 1319 to a limited proxy form adopted by the division. A voting 1320 interest or consent right allocated to a unit owned by the 1321 association may not be exercised or considered for any purpose, 1322 whether for a quorum, an election, or otherwise. Limited proxies 1323 and general proxies may be used to establish a quorum. Limited 1324 proxies shall be used for votes taken to waive or reduce 1325 reserves in accordance with subparagraph (f)2.; for votes taken 1326 to waive the financial reporting requirements of s. 718.111(13); 1327 for votes taken to amend the declaration pursuant to s. 718.110; 1328 for votes taken to amend the articles of incorporation or bylaws 1329 pursuant to this section; and for any other matter for which 1330 this chapter requires or permits a vote of the unit owners. 1331 Except as provided in paragraph (d), a proxy, limited or 1332 general, may not be used in the election of board members in a 1333 residential condominium. General proxies may be used for other 1334 matters for which limited proxies are not required, and may be 1335 used in voting for nonsubstantive changes to items for which a 1336 limited proxy is required and given. Notwithstanding this 1337 subparagraph, unit owners may vote in person at unit owner 1338 meetings. This subparagraph does not limit the use of general 1339 proxies or require the use of limited proxies for any agenda 1340 item or election at any meeting of a timeshare condominium 1341 association or a nonresidential condominium association. 1342 3.A proxy given is effective only for the specific meeting 1343 for which originally given and any lawfully adjourned meetings 1344 thereof. A proxy is not valid longer than 90 days after the date 1345 of the first meeting for which it was given. Each proxy is 1346 revocable at any time at the pleasure of the unit owner 1347 executing it. 1348 4.A member of the board of administration or a committee 1349 may submit in writing his or her agreement or disagreement with 1350 any action taken at a meeting that the member did not attend. 1351 This agreement or disagreement may not be used as a vote for or 1352 against the action taken or to create a quorum. 1353 5.A board meeting may be conducted in person or by video 1354 conference. A board or committee members participation in a 1355 meeting via telephone, real-time videoconferencing, or similar 1356 real-time electronic or video communication counts toward a 1357 quorum, and such member may vote as if physically present. A 1358 speaker must be used so that the conversation of such members 1359 may be heard by the board or committee members attending in 1360 person as well as by any unit owners present at a meeting. The 1361 division shall adopt rules pursuant to ss. 120.536 and 120.54 1362 governing the requirements for meetings. 1363 (c)Board of administration meetings.In a residential 1364 condominium association of more than 10 units, the board of 1365 administration shall meet at least once each quarter. At least 1366 four times each year, the meeting agenda must include an 1367 opportunity for members to ask questions of the board. Meetings 1368 of the board of administration at which a quorum of the members 1369 is present are open to all unit owners. Members of the board of 1370 administration may use e-mail as a means of communication but 1371 may not cast a vote on an association matter via e-mail. A unit 1372 owner may tape record or videotape the meetings. The right to 1373 attend such meetings includes the right to speak at such 1374 meetings with reference to all designated agenda items and the 1375 right to ask questions relating to reports on the status of 1376 construction or repair projects, the status of revenues and 1377 expenditures during the current fiscal year, and other issues 1378 affecting the condominium. The division shall adopt reasonable 1379 rules governing the tape recording and videotaping of the 1380 meeting. The association may adopt written reasonable rules 1381 governing the frequency, duration, and manner of unit owner 1382 statements. 1383 1.Adequate notice of all board meetings, which must 1384 specifically identify all agenda items, must be posted 1385 conspicuously on the condominium property at least 48 continuous 1386 hours before the meeting except in an emergency. If the board 1387 meeting is to be conducted via video conference, the notice must 1388 state that such meeting will be via video conference and must 1389 include a hyperlink and a conference telephone number for unit 1390 owners to attend the meeting via video conference, as well as 1391 the address of the physical location where the unit owners can 1392 attend the meeting in person. If the meeting is conducted via 1393 video conference, it must be recorded and such recording must be 1394 maintained as an official record of the association. If 20 1395 percent of the voting interests petition the board to address an 1396 item of business, the board, within 60 days after receipt of the 1397 petition, shall place the item on the agenda at its next regular 1398 board meeting or at a special meeting called for that purpose. 1399 An item not included on the notice may be taken up on an 1400 emergency basis by a vote of at least a majority plus one of the 1401 board members. Such emergency action must be noticed and 1402 ratified at the next regular board meeting. Written notice of a 1403 meeting at which a nonemergency special assessment or an 1404 amendment to rules regarding unit use will be considered must be 1405 mailed, delivered, or electronically transmitted to the unit 1406 owners and posted conspicuously on the condominium property at 1407 least 14 days before the meeting. Evidence of compliance with 1408 this 14-day notice requirement must be made by an affidavit 1409 executed by the person providing the notice and filed with the 1410 official records of the association. 1411 2.Upon notice to the unit owners, the board shall, by duly 1412 adopted rule, designate a specific location on the condominium 1413 property at which all notices of board meetings must be posted. 1414 If there is no condominium property at which notices can be 1415 posted, Notices shall be mailed, delivered, or electronically 1416 transmitted to each unit owner who has consented to receive 1417 electronic notifications at least 14 days before the meeting. In 1418 lieu of or in addition to the physical posting of the notice on 1419 the condominium property and mailing, delivering, or 1420 electronically transmitting the notice, the association may, by 1421 reasonable rule, adopt a procedure for conspicuously posting and 1422 repeatedly broadcasting the notice and the agenda on a closed 1423 circuit cable television system serving the condominium 1424 association. However, if broadcast notice is used in lieu of a 1425 notice physically posted on condominium property, the notice and 1426 agenda must be broadcast at least four times every broadcast 1427 hour of each day that a posted notice is otherwise required 1428 under this section. If broadcast notice is provided, the notice 1429 and agenda must be broadcast in a manner and for a sufficient 1430 continuous length of time so as to allow an average reader to 1431 observe the notice and read and comprehend the entire content of 1432 the notice and the agenda. In addition to any of the authorized 1433 means of providing notice of a meeting of the board, the 1434 association may, by rule, adopt a procedure for conspicuously 1435 posting the meeting notice and the agenda on a website serving 1436 the condominium association for at least the minimum period of 1437 time for which a notice of a meeting is also required to be 1438 physically posted on the condominium property. Any rule adopted 1439 shall, in addition to other matters, include a requirement that 1440 the association send an electronic notice in the same manner as 1441 a notice for a meeting of the members, which must include a 1442 hyperlink to the website at which the notice is posted, to unit 1443 owners whose e-mail addresses are included in the associations 1444 official records. 1445 3.Notice of any meeting in which regular or special 1446 assessments against unit owners are to be considered must 1447 specifically state that assessments will be considered and 1448 provide the estimated cost and description of the purposes for 1449 such assessments. If an agenda item relates to the approval of a 1450 contract for goods or services, a copy of the contract must be 1451 provided with the notice and be made available for inspection 1452 and copying upon a written request from a unit owner or made 1453 available on the associations website or through an application 1454 that can be downloaded on a mobile device. 1455 4.Meetings of a committee to take final action on behalf 1456 of the board or make recommendations to the board regarding the 1457 association budget are subject to this paragraph. Meetings of a 1458 committee that does not take final action on behalf of the board 1459 or make recommendations to the board regarding the association 1460 budget are subject to this section, unless those meetings are 1461 exempted from this section by the bylaws of the association. 1462 5.Notwithstanding any other law, the requirement that 1463 board meetings and committee meetings be open to the unit owners 1464 does not apply to: 1465 a.Meetings between the board or a committee and the 1466 associations attorney, with respect to proposed or pending 1467 litigation, if the meeting is held for the purpose of seeking or 1468 rendering legal advice; or 1469 b.Board meetings held for the purpose of discussing 1470 personnel matters. 1471 (d)Unit owner meetings. 1472 1.An annual meeting of the unit owners must be held at the 1473 location provided in the association bylaws and, if the bylaws 1474 are silent as to the location, the meeting must be held within 1475 15 miles 45 miles of the condominium property or within the same 1476 county as the condominium property. However, such distance 1477 requirement does not apply to an association governing a 1478 timeshare condominium. If a unit owner meeting is conducted via 1479 video conference, a unit owner may vote electronically in the 1480 manner provided in s. 718.128. 1481 2. Unit owner meetings, including the annual meeting of the 1482 unit owners, may be conducted in person or via video conference. 1483 If the annual meeting of the unit owners is conducted via video 1484 conference, a quorum of the members of the board of 1485 administration must be physically present at the physical 1486 location where unit owners can attend the meeting. The location 1487 must be provided in the association bylaws and, if the bylaws 1488 are silent as to the location, the meeting must be held within 1489 10 miles of the condominium property. If the unit owner meeting 1490 is conducted via video conference, the video conference must be 1491 recorded and such recording must be maintained as an official 1492 record of the association. The division shall adopt rules 1493 pursuant to ss. 120.536 and 120.54 governing the requirements 1494 for meetings. 1495 3.2.Unless the bylaws provide otherwise, a vacancy on the 1496 board caused by the expiration of a directors term must be 1497 filled by electing a new board member, and the election must be 1498 by secret ballot. An election is not required if the number of 1499 vacancies equals or exceeds the number of candidates. For 1500 purposes of this paragraph, the term candidate means an 1501 eligible person who has timely submitted the written notice, as 1502 described in sub-subparagraph 4.a., of his or her intention to 1503 become a candidate. Except in a timeshare or nonresidential 1504 condominium, or if the staggered term of a board member does not 1505 expire until a later annual meeting, or if all members terms 1506 would otherwise expire but there are no candidates, the terms of 1507 all board members expire at the annual meeting, and such members 1508 may stand for reelection unless prohibited by the bylaws. Board 1509 members may serve terms longer than 1 year if permitted by the 1510 bylaws or articles of incorporation. A board member may not 1511 serve more than 8 consecutive years unless approved by an 1512 affirmative vote of unit owners representing two-thirds of all 1513 votes cast in the election or unless there are not enough 1514 eligible candidates to fill the vacancies on the board at the 1515 time of the vacancy. Only board service that occurs on or after 1516 July 1, 2018, may be used when calculating a board members term 1517 limit. If the number of board members whose terms expire at the 1518 annual meeting equals or exceeds the number of candidates, the 1519 candidates become members of the board effective upon the 1520 adjournment of the annual meeting. Unless the bylaws provide 1521 otherwise, any remaining vacancies shall be filled by the 1522 affirmative vote of the majority of the directors making up the 1523 newly constituted board even if the directors constitute less 1524 than a quorum or there is only one director. In a residential 1525 condominium association of more than 10 units or in a 1526 residential condominium association that does not include 1527 timeshare units or timeshare interests, co-owners of a unit may 1528 not serve as members of the board of directors at the same time 1529 unless they own more than one unit or unless there are not 1530 enough eligible candidates to fill the vacancies on the board at 1531 the time of the vacancy. A unit owner in a residential 1532 condominium desiring to be a candidate for board membership must 1533 comply with sub-subparagraph 4.a. and must be eligible to be a 1534 candidate to serve on the board of directors at the time of the 1535 deadline for submitting a notice of intent to run in order to 1536 have his or her name listed as a proper candidate on the ballot 1537 or to serve on the board. A person who has been suspended or 1538 removed by the division under this chapter, or who is delinquent 1539 in the payment of any assessment due to the association, is not 1540 eligible to be a candidate for board membership and may not be 1541 listed on the ballot. For purposes of this paragraph, a person 1542 is delinquent if a payment is not made by the due date as 1543 specifically identified in the declaration of condominium, 1544 bylaws, or articles of incorporation. If a due date is not 1545 specifically identified in the declaration of condominium, 1546 bylaws, or articles of incorporation, the due date is the first 1547 day of the assessment period. A person who has been convicted of 1548 any felony in this state or in a United States District or 1549 Territorial Court, or who has been convicted of any offense in 1550 another jurisdiction which would be considered a felony if 1551 committed in this state, is not eligible for board membership 1552 unless such felons civil rights have been restored for at least 1553 5 years as of the date such person seeks election to the board. 1554 The validity of an action by the board is not affected if it is 1555 later determined that a board member is ineligible for board 1556 membership due to having been convicted of a felony. This 1557 subparagraph does not limit the term of a member of the board of 1558 a nonresidential or timeshare condominium. 1559 4.3.The bylaws must provide the method of calling meetings 1560 of unit owners, including annual meetings. Written notice of an 1561 annual meeting must include an agenda; be mailed, hand 1562 delivered, or electronically transmitted to each unit owner at 1563 least 14 days before the annual meeting; and be posted in a 1564 conspicuous place on the condominium property or association 1565 property at least 14 continuous days before the annual meeting. 1566 Written notice of a meeting other than an annual meeting must 1567 include an agenda; be mailed, hand delivered, or electronically 1568 transmitted to each unit owner; and be posted in a conspicuous 1569 place on the condominium property or association property within 1570 the timeframe specified in the bylaws. If the bylaws do not 1571 specify a timeframe for written notice of a meeting other than 1572 an annual meeting, notice must be provided at least 14 1573 continuous days before the meeting. Upon notice to the unit 1574 owners, the board shall, by duly adopted rule, designate a 1575 specific location on the condominium property or association 1576 property at which all notices of unit owner meetings must be 1577 posted. This requirement does not apply if there is no 1578 condominium property for posting notices. In lieu of, or in In 1579 addition to, the physical posting of meeting notices, the 1580 association may, by reasonable rule, adopt a procedure for 1581 conspicuously posting and repeatedly broadcasting the notice and 1582 the agenda on a closed-circuit cable television system serving 1583 the condominium association. However, if broadcast notice is 1584 used in lieu of a notice posted physically on the condominium 1585 property, the notice and agenda must be broadcast at least four 1586 times every broadcast hour of each day that a posted notice is 1587 otherwise required under this section. If broadcast notice is 1588 provided, the notice and agenda must be broadcast in a manner 1589 and for a sufficient continuous length of time so as to allow an 1590 average reader to observe the notice and read and comprehend the 1591 entire content of the notice and the agenda. In addition to any 1592 of the authorized means of providing notice of a meeting of the 1593 board, the association may, by rule, adopt a procedure for 1594 conspicuously posting the meeting notice and the agenda on a 1595 website serving the condominium association for at least the 1596 minimum period of time for which a notice of a meeting is also 1597 required to be physically posted on the condominium property. 1598 Any rule adopted shall, in addition to other matters, include a 1599 requirement that the association send an electronic notice in 1600 the same manner as a notice for a meeting of the members, which 1601 must include a hyperlink to the website at which the notice is 1602 posted, to unit owners whose e-mail addresses are included in 1603 the associations official records. Unless a unit owner waives 1604 in writing the right to receive notice of the annual meeting, 1605 such notice must be hand delivered, mailed, or electronically 1606 transmitted to each unit owner. Notice for meetings and notice 1607 for all other purposes must be mailed to each unit owner at the 1608 address last furnished to the association by the unit owner, or 1609 hand delivered to each unit owner. However, if a unit is owned 1610 by more than one person, the association must provide notice to 1611 the address that the developer identifies for that purpose and 1612 thereafter as one or more of the owners of the unit advise the 1613 association in writing, or if no address is given or the owners 1614 of the unit do not agree, to the address provided on the deed of 1615 record. An officer of the association, or the manager or other 1616 person providing notice of the association meeting, must provide 1617 an affidavit or United States Postal Service certificate of 1618 mailing, to be included in the official records of the 1619 association affirming that the notice was mailed or hand 1620 delivered in accordance with this provision. 1621 5.4.The members of the board of a residential condominium 1622 shall be elected by written ballot or voting machine. Proxies 1623 may not be used in electing the board in general elections or 1624 elections to fill vacancies caused by recall, resignation, or 1625 otherwise, unless otherwise provided in this chapter. This 1626 subparagraph does not apply to an association governing a 1627 timeshare condominium. 1628 a.At least 60 days before a scheduled election, the 1629 association shall mail, deliver, or electronically transmit, by 1630 separate association mailing or included in another association 1631 mailing, delivery, or transmission, including regularly 1632 published newsletters, to each unit owner entitled to a vote, a 1633 first notice of the date of the election. A unit owner or other 1634 eligible person desiring to be a candidate for the board must 1635 give written notice of his or her intent to be a candidate to 1636 the association at least 40 days before a scheduled election. 1637 Together with the written notice and agenda as set forth in 1638 subparagraph 3., the association shall mail, deliver, or 1639 electronically transmit a second notice of the election to all 1640 unit owners entitled to vote, together with a ballot that lists 1641 all candidates not less than 14 days or more than 34 days before 1642 the date of the election. Upon request of a candidate, an 1643 information sheet, no larger than 8 1/2 inches by 11 inches, 1644 which must be furnished by the candidate at least 35 days before 1645 the election, must be included with the mailing, delivery, or 1646 transmission of the ballot, with the costs of mailing, delivery, 1647 or electronic transmission and copying to be borne by the 1648 association. The association is not liable for the contents of 1649 the information sheets prepared by the candidates. In order to 1650 reduce costs, the association may print or duplicate the 1651 information sheets on both sides of the paper. The division 1652 shall by rule establish voting procedures consistent with this 1653 sub-subparagraph, including rules establishing procedures for 1654 giving notice by electronic transmission and rules providing for 1655 the secrecy of ballots. Elections shall be decided by a 1656 plurality of ballots cast. There is no quorum requirement; 1657 however, at least 20 percent of the eligible voters must cast a 1658 ballot in order to have a valid election. A unit owner may not 1659 authorize any other person to vote his or her ballot, and any 1660 ballots improperly cast are invalid. A unit owner who violates 1661 this provision may be fined by the association in accordance 1662 with s. 718.303. A unit owner who needs assistance in casting 1663 the ballot for the reasons stated in s. 101.051 may obtain such 1664 assistance. The regular election must occur on the date of the 1665 annual meeting. Notwithstanding this sub-subparagraph, an 1666 election is not required unless more candidates file notices of 1667 intent to run or are nominated than board vacancies exist. 1668 b.A director of a board of an association of a residential 1669 condominium shall: 1670 (I)Certify in writing to the secretary of the association 1671 that he or she has read the associations declaration of 1672 condominium, articles of incorporation, bylaws, and current 1673 written policies; that he or she will work to uphold such 1674 documents and policies to the best of his or her ability; and 1675 that he or she will faithfully discharge his or her fiduciary 1676 responsibility to the associations members. 1677 (II)Submit to the secretary of the association a 1678 certificate of having satisfactorily completed the educational 1679 curriculum administered by the division or a division-approved 1680 condominium education provider. The educational curriculum must 1681 be at least 4 hours long and include instruction on milestone 1682 inspections, structural integrity reserve studies, elections, 1683 recordkeeping, financial literacy and transparency, levying of 1684 fines, and notice and meeting requirements. 1685 1686 Each newly elected or appointed director must submit to the 1687 secretary of the association the written certification and 1688 educational certificate within 1 year before being elected or 1689 appointed or 90 days after the date of election or appointment. 1690 A director of an association of a residential condominium who 1691 was elected or appointed before July 1, 2024, must comply with 1692 the written certification and educational certificate 1693 requirements in this sub-subparagraph by June 30, 2025. The 1694 written certification and educational certificate is valid for 7 1695 years after the date of issuance and does not have to be 1696 resubmitted as long as the director serves on the board without 1697 interruption during the 7-year period. A director who is 1698 appointed by the developer may satisfy the educational 1699 certificate requirement in sub-sub-subparagraph (II) for any 1700 subsequent appointment to a board by a developer within 7 years 1701 after the date of issuance of the most recent educational 1702 certificate, including any interruption of service on a board or 1703 appointment to a board in another association within that 7-year 1704 period. One year after submission of the most recent written 1705 certification and educational certificate, and annually 1706 thereafter, a director of an association of a residential 1707 condominium must submit to the secretary of the association a 1708 certificate of having satisfactorily completed at least 1 hour 1709 of continuing education administered by the division, or a 1710 division-approved condominium education provider, relating to 1711 any recent changes to this chapter and the related 1712 administrative rules during the past year. A director of an 1713 association of a residential condominium who fails to timely 1714 file the written certification and educational certificate is 1715 suspended from service on the board until he or she complies 1716 with this sub-subparagraph. The board may temporarily fill the 1717 vacancy during the period of suspension. The secretary shall 1718 cause the association to retain a directors written 1719 certification and educational certificate for inspection by the 1720 members for 7 years after a directors election or the duration 1721 of the directors uninterrupted tenure, whichever is longer. 1722 Failure to have such written certification and educational 1723 certificate on file does not affect the validity of any board 1724 action. 1725 c.Any challenge to the election process must be commenced 1726 within 60 days after the election results are announced. 1727 6.5.Any approval by unit owners called for by this chapter 1728 or the applicable declaration or bylaws, including, but not 1729 limited to, the approval requirement in s. 718.111(8), must be 1730 made at a duly noticed meeting of unit owners and is subject to 1731 all requirements of this chapter or the applicable condominium 1732 documents relating to unit owner decisionmaking, except that 1733 unit owners may take action by written agreement, without 1734 meetings, on matters for which action by written agreement 1735 without meetings is expressly allowed by the applicable bylaws 1736 or declaration or any law that provides for such action. 1737 7.6.Unit owners may waive notice of specific meetings if 1738 allowed by the applicable bylaws or declaration or any law. 1739 Notice of meetings of the board of administration; unit owner 1740 meetings, except unit owner meetings called to recall board 1741 members under paragraph (l); and committee meetings may be given 1742 by electronic transmission to unit owners who consent to receive 1743 notice by electronic transmission. A unit owner who consents to 1744 receiving notices by electronic transmission is solely 1745 responsible for removing or bypassing filters that block receipt 1746 of mass e-mails sent to members on behalf of the association in 1747 the course of giving electronic notices. 1748 8.7.Unit owners have the right to participate in meetings 1749 of unit owners with reference to all designated agenda items. 1750 However, the association may adopt reasonable rules governing 1751 the frequency, duration, and manner of unit owner participation. 1752 9.8.A unit owner may tape record or videotape a meeting of 1753 the unit owners subject to reasonable rules adopted by the 1754 division. 1755 10.9.Unless otherwise provided in the bylaws, any vacancy 1756 occurring on the board before the expiration of a term may be 1757 filled by the affirmative vote of the majority of the remaining 1758 directors, even if the remaining directors constitute less than 1759 a quorum, or by the sole remaining director. In the alternative, 1760 a board may hold an election to fill the vacancy, in which case 1761 the election procedures must conform to sub-subparagraph 4.a. 1762 unless the association governs 10 units or fewer and has opted 1763 out of the statutory election process, in which case the bylaws 1764 of the association control. Unless otherwise provided in the 1765 bylaws, a board member appointed or elected under this section 1766 shall fill the vacancy for the unexpired term of the seat being 1767 filled. Filling vacancies created by recall is governed by 1768 paragraph (l) and rules adopted by the division. 1769 11.10.This chapter does not limit the use of general or 1770 limited proxies, require the use of general or limited proxies, 1771 or require the use of a written ballot or voting machine for any 1772 agenda item or election at any meeting of a timeshare 1773 condominium association or nonresidential condominium 1774 association. 1775 1776 Notwithstanding subparagraph (b)2. and sub-subparagraph 4.a., an 1777 association of 10 or fewer units may, by affirmative vote of a 1778 majority of the total voting interests, provide for different 1779 voting and election procedures in its bylaws, which may be by a 1780 proxy specifically delineating the different voting and election 1781 procedures. The different voting and election procedures may 1782 provide for elections to be conducted by limited or general 1783 proxy. 1784 (e)Budget meeting. 1785 1.Any meeting at which a proposed annual budget of an 1786 association will be considered by the board or unit owners shall 1787 be open to all unit owners. A meeting of the board or unit 1788 owners at which a proposed annual association budget will be 1789 considered may be conducted by video conference. The division 1790 shall adopt rules pursuant to ss. 120.536 and 120.54 governing 1791 the requirements for such meetings. A sound transmitting device 1792 must be used so that the conversation of such members may be 1793 heard by the board or committee members attending in person, as 1794 well as any unit owners present at the meeting. At least 14 days 1795 before prior to such a meeting, the board shall hand deliver to 1796 each unit owner, mail to each unit owner at the address last 1797 furnished to the association by the unit owner, or 1798 electronically transmit to the location furnished by the unit 1799 owner for that purpose a notice of such meeting and a copy of 1800 the proposed annual budget. An officer or manager of the 1801 association, or other person providing notice of such meeting, 1802 shall execute an affidavit evidencing compliance with such 1803 notice requirement, and such affidavit shall be filed among the 1804 official records of the association. 1805 2.a.If a board proposes adopts in any fiscal year an 1806 annual budget which requires assessments against unit owners 1807 which exceed 115 percent of assessments for the preceding fiscal 1808 year, the board shall simultaneously propose a substitute budget 1809 that does not include any discretionary expenditures that are 1810 not required to be in the budget. The substitute budget must be 1811 proposed at the budget meeting before the adoption of the annual 1812 budget conduct a special meeting of the unit owners to consider 1813 a substitute budget if the board receives, within 21 days after 1814 adoption of the annual budget, a written request for a special 1815 meeting from at least 10 percent of all voting interests. The 1816 special meeting shall be conducted within 60 days after adoption 1817 of the annual budget. At least 14 days before such budget 1818 meeting in which a substitute budget will be proposed prior to 1819 such special meeting, the board shall hand deliver to each unit 1820 owner, or mail to each unit owner at the address last furnished 1821 to the association, a notice of the meeting. An officer or 1822 manager of the association, or other person providing notice of 1823 such meeting shall execute an affidavit evidencing compliance 1824 with this notice requirement, and such affidavit shall be filed 1825 among the official records of the association. Unit owners must 1826 may consider and may adopt a substitute budget at the special 1827 meeting. A substitute budget is adopted if approved by a 1828 majority of all voting interests unless the bylaws require 1829 adoption by a greater percentage of voting interests. If there 1830 is not a quorum at the special meeting or a substitute budget is 1831 not adopted, the annual budget previously initially proposed 1832 adopted by the board may be adopted shall take effect as 1833 scheduled. 1834 b.Any determination of whether assessments exceed 115 1835 percent of assessments for the prior fiscal year shall exclude 1836 any authorized provision for required reasonable reserves for 1837 repair or replacement of the condominium property, anticipated 1838 expenses of the association which the board does not expect to 1839 be incurred on a regular or annual basis for the repair, 1840 maintenance, or replacement of the items listed in paragraph 1841 (g), and insurance premiums, or assessments for betterments to 1842 the condominium property. 1843 c.If the developer controls the board, assessments may 1844 shall not exceed 115 percent of assessments for the prior fiscal 1845 year unless approved by a majority of all voting interests. 1846 (f)Annual budget. 1847 1.The proposed annual budget of estimated revenues and 1848 expenses must be detailed and must show the amounts budgeted by 1849 accounts and expense classifications, including, at a minimum, 1850 any applicable expenses listed in s. 718.504(21). The board 1851 shall adopt the annual budget at least 14 days before the start 1852 of the associations fiscal year. In the event that the board 1853 fails to timely adopt the annual budget a second time, it is 1854 deemed a minor violation and the prior years budget shall 1855 continue in effect until a new budget is adopted. A 1856 multicondominium association must adopt a separate budget of 1857 common expenses for each condominium the association operates 1858 and must adopt a separate budget of common expenses for the 1859 association. In addition, if the association maintains limited 1860 common elements with the cost to be shared only by those 1861 entitled to use the limited common elements as provided for in 1862 s. 718.113(1), the budget or a schedule attached to it must show 1863 the amount budgeted for this maintenance. If, after turnover of 1864 control of the association to the unit owners, any of the 1865 expenses listed in s. 718.504(21) are not applicable, they do 1866 not need to be listed. 1867 2.a.In addition to annual operating expenses, the budget 1868 must include reserve accounts for capital expenditures and 1869 deferred maintenance. These accounts must include, but are not 1870 limited to, roof replacement, building painting, and pavement 1871 resurfacing, regardless of the amount of deferred maintenance 1872 expense or replacement cost, and any other item that has a 1873 deferred maintenance expense or replacement cost that exceeds 1874 $25,000 $10,000. The amount to be reserved must be computed 1875 using a formula based upon estimated remaining useful life and 1876 estimated replacement cost or deferred maintenance expense of 1877 the reserve item. In a budget adopted by an association that is 1878 required to obtain a structural integrity reserve study, 1879 reserves must be maintained for the items identified in 1880 paragraph (g) for which the association is responsible pursuant 1881 to the declaration of condominium, and the reserve amount for 1882 such items must be based on the findings and recommendations of 1883 the associations most recent structural integrity reserve 1884 study. If an association votes to terminate the condominium in 1885 accordance with s. 718.117, the members may vote to waive the 1886 maintenance of reserves recommended by the associations most 1887 recent structural integrity reserve study. With respect to items 1888 for which an estimate of useful life is not readily 1889 ascertainable or with an estimated remaining useful life of 1890 greater than 25 years, an association is not required to reserve 1891 replacement costs for such items, but an association must 1892 reserve the amount of deferred maintenance expense, if any, 1893 which is recommended by the structural integrity reserve study 1894 for such items. The association may adjust replacement reserve 1895 assessments annually to take into account an inflation 1896 adjustment and any changes in estimates or extension of the 1897 useful life of a reserve item caused by deferred maintenance. 1898 b. The members of a unit-owner-controlled association may 1899 determine, by a majority vote of the total voting interests of 1900 the association, to provide no reserves or less reserves than 1901 required by this subsection. For a budget adopted on or after 1902 December 31, 2024, the members of a unit-owner-controlled 1903 association that must obtain a structural integrity reserve 1904 study may not determine to provide no reserves or less reserves 1905 than required by this subsection for items listed in paragraph 1906 (g), except that members of an association operating a 1907 multicondominium may determine to provide no reserves or less 1908 reserves than required by this subsection if an alternative 1909 funding method is used by the association has been approved by 1910 the division. 1911 c.(I) Reserves for the items listed in paragraph (g) may be 1912 funded by regular assessments, special assessments, lines of 1913 credit, or loans. 1914 (II) A unit-owner-controlled association that must have a 1915 structural reserve study may secure a line of credit or a loan 1916 to fund capital expenses required by a milestone inspection 1917 under s. 553.899 or a structural integrity reserve study. A line 1918 of credit or a loan under this subparagraph requires the 1919 approval of a majority vote of the total voting interests of the 1920 association. The line of credit or loan must be sufficient to 1921 fund the cumulative amount of any previously waived or unfunded 1922 portions of the reserve funding amount required by this 1923 paragraph and the most recent structural integrity reserve 1924 study. Funding from the line of credit or loan must be 1925 immediately available for access by the board to fund required 1926 repair, maintenance, or replacement expenses without further 1927 approval by the members of the association. A line of credit or 1928 a loan secured under this sub-subparagraph must be included in 1929 the financial report required under s. 718.111(13). 1930 d. If the local building official, as defined in s. 1931 468.603, determines that the entire condominium building is 1932 uninhabitable due to a natural emergency, as defined in s. 1933 252.34, the board, upon the approval of a majority of its 1934 members, may pause the contribution to its reserves or reduce 1935 reserve funding until the local building official determines 1936 that the condominium building is habitable. Any reserve account 1937 funds held by the association may be expended, pursuant to the 1938 boards determination, to make the condominium building and its 1939 structures habitable. Upon the determination by the local 1940 building official that the condominium building is habitable, 1941 the association must immediately resume contributing funds to 1942 its reserves. 1943 e. For a budget adopted on or before December 31, 2028, if 1944 the association has completed a milestone inspection pursuant to 1945 s. 553.899 within the previous 2 calendar years, the board, upon 1946 the approval of a majority of the total voting interests of the 1947 association, may temporarily pause, for a period of no more than 1948 2 consecutive annual budgets, reserve fund contributions or 1949 reduce the amount of reserve funding for the purpose of funding 1950 repairs recommended by the milestone inspection. This sub 1951 subparagraph does not apply to a developer-controlled 1952 association and an association in which the non-developer unit 1953 owners have been in control for less than 1 year. An association 1954 that has paused reserve contributions under this subparagraph 1955 must have a structural integrity reserve study performed before 1956 the continuation of reserve contributions in order to determine 1957 the associations reserve funding needs and to recommend a 1958 reserve funding plan. 1959 f.b.Before turnover of control of an association by a 1960 developer to unit owners other than a developer under s. 1961 718.301, the developer-controlled association may not vote to 1962 waive the reserves or reduce funding of the reserves. If a 1963 meeting of the unit owners has been called to determine whether 1964 to waive or reduce the funding of reserves and no such result is 1965 achieved or a quorum is not attained, the reserves included in 1966 the budget shall go into effect. After the turnover, the 1967 developer may vote its voting interest to waive or reduce the 1968 funding of reserves. 1969 3.Reserve funds and any interest accruing thereon shall 1970 remain in the reserve account or accounts, and may be used only 1971 for authorized reserve expenditures unless their use for other 1972 purposes is approved in advance by a majority vote of all the 1973 total voting interests of the association. Before turnover of 1974 control of an association by a developer to unit owners other 1975 than the developer pursuant to s. 718.301, the developer 1976 controlled association may not vote to use reserves for purposes 1977 other than those for which they were intended. For a budget 1978 adopted on or after December 31, 2024, members of a unit-owner 1979 controlled association that must obtain a structural integrity 1980 reserve study may not vote to use reserve funds, or any interest 1981 accruing thereon, for any other purpose other than the 1982 replacement or deferred maintenance costs of the components 1983 listed in paragraph (g). A vote of the members is not required 1984 for the board to change the accounting method for reserves to a 1985 pooling accounting method or a straight-line accounting method. 1986 4.The only voting interests that are eligible to vote on 1987 questions that involve waiving or reducing the funding of 1988 reserves, or using existing reserve funds for purposes other 1989 than purposes for which the reserves were intended, are the 1990 voting interests of the units subject to assessment to fund the 1991 reserves in question. Proxy questions relating to waiving or 1992 reducing the funding of reserves or using existing reserve funds 1993 for purposes other than purposes for which the reserves were 1994 intended must contain the following statement in capitalized, 1995 bold letters in a font size larger than any other used on the 1996 face of the proxy ballot: 1997 1998 WAIVING OF RESERVES, IN WHOLE OR IN PART, OR ALLOWING 1999 ALTERNATIVE USES OF EXISTING RESERVES MAY RESULT IN 2000 UNIT OWNER LIABILITY FOR PAYMENT OF UNANTICIPATED 2001 SPECIAL ASSESSMENTS REGARDING THOSE ITEMS. 2002 2003 (g)Structural integrity reserve study. 2004 1.A residential condominium association must have a 2005 structural integrity reserve study completed at least every 10 2006 years after the condominiums creation for each building on the 2007 condominium property that is three stories or higher in height, 2008 as determined by the Florida Building Code, which includes, at a 2009 minimum, a study of the following items as related to the 2010 structural integrity and safety of the building: 2011 a.Roof. 2012 b.Structure, including load-bearing walls and other 2013 primary structural members and primary structural systems as 2014 those terms are defined in s. 627.706. 2015 c.Fireproofing and fire protection systems. 2016 d.Plumbing. 2017 e.Electrical systems. 2018 f.Waterproofing and exterior painting. 2019 g.Windows and exterior doors. 2020 h.Any other item that has a deferred maintenance expense 2021 or replacement cost that exceeds $25,000 $10,000 and the failure 2022 to replace or maintain such item negatively affects the items 2023 listed in sub-subparagraphs a.-g., as determined by the visual 2024 inspection portion of the structural integrity reserve study. 2025 2.A structural integrity reserve study is based on a 2026 visual inspection of the condominium property. 2027 3.a.A structural integrity reserve study may be performed 2028 by any person qualified to perform such study. However, the 2029 visual inspection portion of the structural integrity reserve 2030 study must be performed or verified by an engineer licensed 2031 under chapter 471, an architect licensed under chapter 481, or a 2032 person certified as a reserve specialist or professional reserve 2033 analyst by the Community Associations Institute or the 2034 Association of Professional Reserve Analysts. 2035 b. Any design professional as defined in s. 558.002 or any 2036 contractor licensed under chapter 489 who bids to perform a 2037 structural integrity reserve study must disclose in writing to 2038 the association his or her intent to bid on any services related 2039 to any maintenance, repair, or replacement that may be 2040 recommended by the structural integrity reserve study. Any 2041 design professional as defined in s. 558.002 or contractor 2042 licensed under chapter 489 who submits a bid to the association 2043 for performing any services recommended by the structural 2044 integrity reserve study may not have an interest, directly or 2045 indirectly, in the firm or entity providing the associations 2046 structural integrity reserve study or be a relative of any 2047 person having a direct or indirect interest in such firm, unless 2048 such relationship is disclosed to the association in writing. As 2049 used in this section, the term relative means a relative 2050 within the third degree of consanguinity by blood or marriage. A 2051 contract for services is voidable and terminates upon the 2052 association filing a written notice terminating the contract if 2053 the design professional or licensed contractor failed to provide 2054 the written disclosure of the interests or relationships 2055 required under this paragraph. A design professional or licensed 2056 contractor may be subject to discipline under the applicable 2057 practice act for his or her profession for failure to provide 2058 the written disclosure of the interests or relationships 2059 required under this paragraph. 2060 4.a.3.At a minimum, a structural integrity reserve study 2061 must identify each item of the condominium property being 2062 visually inspected, state the estimated remaining useful life 2063 and the estimated replacement cost or deferred maintenance 2064 expense of each item of the condominium property being visually 2065 inspected, and provide a reserve funding plan or schedule with a 2066 recommended annual reserve amount that achieves the estimated 2067 replacement cost or deferred maintenance expense of each item of 2068 condominium property being visually inspected by the end of the 2069 estimated remaining useful life of the item. At a minimum, the 2070 structural integrity reserve study must include a recommendation 2071 for a reserve funding schedule based on a baseline funding plan 2072 that provides a reserve funding goal in which the reserve 2073 funding for each budget year is sufficient to maintain the 2074 reserve cash balance above zero. The study may recommend other 2075 types of reserve funding schedules, provided that each 2076 recommended schedule is sufficient to meet the associations 2077 maintenance obligation. 2078 b.The structural integrity reserve study may recommend 2079 that reserves do not need to be maintained for any item for 2080 which an estimate of useful life and an estimate of replacement 2081 cost cannot be determined, or the study may recommend a deferred 2082 maintenance expense amount for such item. The structural 2083 integrity reserve study may recommend that reserves for 2084 replacement costs do not need to be maintained for any item with 2085 an estimated remaining useful life of greater than 25 years, but 2086 the study may recommend a deferred maintenance expense amount 2087 for such item. If the structural integrity reserve study 2088 recommends reserves for any item for which reserves are not 2089 required under this paragraph, the amount of the recommended 2090 reserves for such item must be separately identified in the 2091 structural integrity reserve study as an item for which reserves 2092 are not required under this paragraph. 2093 c. The structural integrity reserve study must take into 2094 consideration the funding method or methods used by the 2095 association to fund its maintenance and reserve funding 2096 obligations through regular assessments, special assessments, 2097 lines of credit, or loans. If the structural integrity reserve 2098 study is performed before the association has approved a special 2099 assessment or secured a line of credit or a loan, the structural 2100 integrity reserve study must be updated to reflect the funding 2101 method selected by the association and its effect on the reserve 2102 funding schedule, including any anticipated change in the amount 2103 of regular assessments. The structural integrity reserve study 2104 may be updated to reflect any changes to the useful life of the 2105 reserve items after such items are repaired or replaced, and the 2106 effect such repair or replacement will have on the reserve 2107 funding schedule. The association must obtain an updated 2108 structural integrity reserve study before adopting any budget in 2109 which the reserve funding from regular assessments, special 2110 assessments, lines of credit, or loans do not align with the 2111 funding plan from the most recent version of the structural 2112 integrity reserve study. 2113 5.4.This paragraph does not apply to buildings less than 2114 three stories in height; single-family, two-family, or three 2115 family dwellings with three or fewer habitable stories above 2116 ground; any portion or component of a building that has not been 2117 submitted to the condominium form of ownership; or any portion 2118 or component of a building that is maintained by a party other 2119 than the association. 2120 6.5.Before a developer turns over control of an 2121 association to unit owners other than the developer, the 2122 developer must have a turnover inspection report in compliance 2123 with s. 718.301(4)(p) and (q) for each building on the 2124 condominium property that is three stories or higher in height. 2125 7.6.Associations existing on or before July 1, 2022, which 2126 are controlled by unit owners other than the developer, must 2127 have a structural integrity reserve study completed by December 2128 31, 2025 2024, for each building on the condominium property 2129 that is three stories or higher in height. An association that 2130 is required to complete a milestone inspection in accordance 2131 with s. 553.899 on or before December 31, 2026, may complete the 2132 structural integrity reserve study simultaneously with the 2133 milestone inspection. In no event may the structural integrity 2134 reserve study be completed after December 31, 2026. 2135 8.7.If the milestone inspection required by s. 553.899, or 2136 an inspection completed for a similar local requirement, was 2137 performed within the past 5 years and meets the requirements of 2138 this paragraph, such inspection may be used in place of the 2139 visual inspection portion of the structural integrity reserve 2140 study. 2141 9.If the association completes a milestone inspection 2142 required by s. 553.899, or an inspection completed for a similar 2143 local requirement, the association may delay performance of a 2144 required structural integrity reserve study for no more than the 2145 2 consecutive budget years immediately following the milestone 2146 inspection in order to allow the association to focus its 2147 financial resources on completing the repair and maintenance 2148 recommendations of the milestone inspection. 2149 10.8.If the officers or directors of an association 2150 willfully and knowingly fail to complete a structural integrity 2151 reserve study pursuant to this paragraph, such failure is a 2152 breach of an officers or a and directors fiduciary 2153 relationship to the unit owners under s. 718.111(1). An officer 2154 or a director of an association must sign an affidavit 2155 acknowledging receipt of the completed structural integrity 2156 reserve study. 2157 11.9.Within 45 days after receiving the structural 2158 integrity reserve study, the association must distribute a copy 2159 of the study to each unit owner or deliver to each unit owner a 2160 notice that the completed study is available for inspection and 2161 copying upon a written request. Distribution of a copy of the 2162 study or notice must be made by United States mail or personal 2163 delivery to the mailing address, property address, or any other 2164 address of the owner provided to fulfill the associations 2165 notice requirements under this chapter, or by electronic 2166 transmission to the e-mail address or facsimile number provided 2167 to fulfill the associations notice requirements to unit owners 2168 who previously consented to receive notice by electronic 2169 transmission. 2170 12.10.Within 45 days after receiving the structural 2171 integrity reserve study, the association must provide the 2172 division with a statement indicating that the study was 2173 completed and that the association provided or made available 2174 such study to each unit owner in accordance with this section. 2175 The statement must be provided to the division in the manner 2176 established by the division using a form posted on the 2177 divisions website. 2178 13.The division shall adopt by rule the form for the 2179 structural integrity reserve study in coordination with the 2180 Florida Building Commission. 2181 Section 7.Subsections (1) and (3) of section 718.501, 2182 Florida Statutes, are amended, and paragraph (d) is added to 2183 subsection (2) of that section, to read: 2184 718.501Authority, responsibility, and duties of Division 2185 of Florida Condominiums, Timeshares, and Mobile Homes. 2186 (1)The division may enforce and ensure compliance with 2187 this chapter and rules relating to the development, 2188 construction, sale, lease, ownership, operation, and management 2189 of residential condominium units and complaints related to the 2190 procedural completion of milestone inspections under s. 553.899. 2191 In performing its duties, the division has complete jurisdiction 2192 to investigate complaints and enforce compliance with respect to 2193 associations that are still under developer control or the 2194 control of a bulk assignee or bulk buyer pursuant to part VII of 2195 this chapter and complaints against developers, bulk assignees, 2196 or bulk buyers involving improper turnover or failure to 2197 turnover, pursuant to s. 718.301. However, after turnover has 2198 occurred, the division has jurisdiction to review records and 2199 investigate complaints related only to: 2200 (a)1.Procedural aspects and records relating to financial 2201 issues, including annual financial reporting under s. 2202 718.111(13); assessments for common expenses, fines, and 2203 commingling of reserve and operating funds under s. 718.111(14); 2204 use of debit cards for unintended purposes under s. 718.111(15); 2205 the annual operating budget and the allocation of reserve funds 2206 under s. 718.112(2)(f); financial records under s. 2207 718.111(12)(a)11.; and any other record necessary to determine 2208 the revenues and expenses of the association. 2209 2.Elections, including election and voting requirements 2210 under s. 718.112(2)(b) and (d), recall of board members under s. 2211 718.112(2)(l), electronic voting under s. 718.128, and elections 2212 that occur during an emergency under s. 718.1265(1)(a). 2213 3.The maintenance of and unit owner access to association 2214 records under s. 718.111(12). 2215 4.The procedural aspects of meetings, including unit owner 2216 meetings, quorums, voting requirements, proxies, board of 2217 administration meetings, and budget meetings under s. 2218 718.112(2). 2219 5.The disclosure of conflicts of interest under ss. 2220 718.111(1)(a) and 718.3027, including limitations contained in 2221 s. 718.111(3)(f). 2222 6.The removal of a board director or officer under ss. 2223 718.111(1)(a) and (15) and 718.112(2)(p) and (q). 2224 7.The procedural completion of structural integrity 2225 reserve studies under s. 718.112(2)(g) and the milestone 2226 inspections under s. 553.899. 2227 8.Completion of repairs required by a milestone inspection 2228 under s. 553.899. 2229 9.8.Any written inquiries by unit owners to the 2230 association relating to such matters, including written 2231 inquiries under s. 718.112(2)(a)2. 2232 10.The requirement for associations to maintain an 2233 insurance policy or fidelity bonding for all persons who control 2234 or disperse funds of the association under s. 718.111(11)(h). 2235 11.Board member education requirements under s. 2236 718.112(2)(d)5.b. 2237 12.Reporting requirements for structural integrity reserve 2238 studies under subsection (3) and under s. 718.112(2)(g)12. 2239 (b)1.The division may make necessary public or private 2240 investigations within or outside this state to determine whether 2241 any person has violated this chapter or any rule or order 2242 hereunder, to aid in the enforcement of this chapter, or to aid 2243 in the adoption of rules or forms. 2244 2.The division may submit any official written report, 2245 worksheet, or other related paper, or a duly certified copy 2246 thereof, compiled, prepared, drafted, or otherwise made by and 2247 duly authenticated by a financial examiner or analyst to be 2248 admitted as competent evidence in any hearing in which the 2249 financial examiner or analyst is available for cross-examination 2250 and attests under oath that such documents were prepared as a 2251 result of an examination or inspection conducted pursuant to 2252 this chapter. 2253 (c)The division may require or permit any person to file a 2254 statement in writing, under oath or otherwise, as the division 2255 determines, as to the facts and circumstances concerning a 2256 matter to be investigated. 2257 (d)For the purpose of any investigation under this 2258 chapter, the division director or any officer or employee 2259 designated by the division director may administer oaths or 2260 affirmations, subpoena witnesses and compel their attendance, 2261 take evidence, and require the production of any matter which is 2262 relevant to the investigation, including the existence, 2263 description, nature, custody, condition, and location of any 2264 books, documents, or other tangible things and the identity and 2265 location of persons having knowledge of relevant facts or any 2266 other matter reasonably calculated to lead to the discovery of 2267 material evidence. Upon the failure by a person to obey a 2268 subpoena or to answer questions propounded by the investigating 2269 officer and upon reasonable notice to all affected persons, the 2270 division may apply to the circuit court for an order compelling 2271 compliance. 2272 (e)Notwithstanding any remedies available to unit owners 2273 and associations, if the division has reasonable cause to 2274 believe that a violation of any provision of this chapter or 2275 related rule has occurred, the division may institute 2276 enforcement proceedings in its own name against any developer, 2277 bulk assignee, bulk buyer, association, officer, or member of 2278 the board of administration, or its assignees or agents, as 2279 follows: 2280 1.The division may permit a person whose conduct or 2281 actions may be under investigation to waive formal proceedings 2282 and enter into a consent proceeding whereby orders, rules, or 2283 letters of censure or warning, whether formal or informal, may 2284 be entered against the person. 2285 2.The division may issue an order requiring the developer, 2286 bulk assignee, bulk buyer, association, developer-designated 2287 officer, or developer-designated member of the board of 2288 administration, developer-designated assignees or agents, bulk 2289 assignee-designated assignees or agents, bulk buyer-designated 2290 assignees or agents, community association manager, or community 2291 association management firm to cease and desist from the 2292 unlawful practice and take such affirmative action as in the 2293 judgment of the division carry out the purposes of this chapter. 2294 If the division finds that a developer, bulk assignee, bulk 2295 buyer, association, officer, or member of the board of 2296 administration, or its assignees or agents, is violating or is 2297 about to violate any provision of this chapter, any rule adopted 2298 or order issued by the division, or any written agreement 2299 entered into with the division, and presents an immediate danger 2300 to the public requiring an immediate final order, it may issue 2301 an emergency cease and desist order reciting with particularity 2302 the facts underlying such findings. The emergency cease and 2303 desist order is effective for 90 days. If the division begins 2304 nonemergency cease and desist proceedings, the emergency cease 2305 and desist order remains effective until the conclusion of the 2306 proceedings under ss. 120.569 and 120.57. 2307 3.If a developer, bulk assignee, or bulk buyer fails to 2308 pay any restitution determined by the division to be owed, plus 2309 any accrued interest at the highest rate permitted by law, 2310 within 30 days after expiration of any appellate time period of 2311 a final order requiring payment of restitution or the conclusion 2312 of any appeal thereof, whichever is later, the division must 2313 bring an action in circuit or county court on behalf of any 2314 association, class of unit owners, lessees, or purchasers for 2315 restitution, declaratory relief, injunctive relief, or any other 2316 available remedy. The division may also temporarily revoke its 2317 acceptance of the filing for the developer to which the 2318 restitution relates until payment of restitution is made. 2319 4.The division may petition the court for appointment of a 2320 receiver or conservator. If appointed, the receiver or 2321 conservator may take action to implement the court order to 2322 ensure the performance of the order and to remedy any breach 2323 thereof. In addition to all other means provided by law for the 2324 enforcement of an injunction or temporary restraining order, the 2325 circuit court may impound or sequester the property of a party 2326 defendant, including books, papers, documents, and related 2327 records, and allow the examination and use of the property by 2328 the division and a court-appointed receiver or conservator. 2329 5.The division may apply to the circuit court for an order 2330 of restitution whereby the defendant in an action brought under 2331 subparagraph 4. is ordered to make restitution of those sums 2332 shown by the division to have been obtained by the defendant in 2333 violation of this chapter. At the option of the court, such 2334 restitution is payable to the conservator or receiver appointed 2335 under subparagraph 4. or directly to the persons whose funds or 2336 assets were obtained in violation of this chapter. 2337 6.The division may impose a civil penalty against a 2338 developer, bulk assignee, or bulk buyer, or association, or its 2339 assignee or agent, for any violation of this chapter or related 2340 rule. The division may impose a civil penalty individually 2341 against an officer or board member who willfully and knowingly 2342 violates this chapter, an adopted rule, or a final order of the 2343 division; may order the removal of such individual as an officer 2344 or from the board of administration or as an officer of the 2345 association; and may prohibit such individual from serving as an 2346 officer or on the board of a community association for a period 2347 of time. The term willfully and knowingly means that the 2348 division informed the officer or board member that his or her 2349 action or intended action violates this chapter, a rule adopted 2350 under this chapter, or a final order of the division and that 2351 the officer or board member refused to comply with the 2352 requirements of this chapter, a rule adopted under this chapter, 2353 or a final order of the division. The division, before 2354 initiating formal agency action under chapter 120, must afford 2355 the officer or board member an opportunity to voluntarily 2356 comply, and an officer or board member who complies within 10 2357 days is not subject to a civil penalty. A penalty may be imposed 2358 on the basis of each day of continuing violation, but the 2359 penalty for any offense may not exceed $5,000. The division 2360 shall adopt, by rule, penalty guidelines applicable to possible 2361 violations or to categories of violations of this chapter or 2362 rules adopted by the division. The guidelines must specify a 2363 meaningful range of civil penalties for each such violation of 2364 the statute and rules and must be based upon the harm caused by 2365 the violation, upon the repetition of the violation, and upon 2366 such other factors deemed relevant by the division. For example, 2367 the division may consider whether the violations were committed 2368 by a developer, bulk assignee, or bulk buyer, or owner 2369 controlled association, the size of the association, and other 2370 factors. The guidelines must designate the possible mitigating 2371 or aggravating circumstances that justify a departure from the 2372 range of penalties provided by the rules. It is the legislative 2373 intent that minor violations be distinguished from those which 2374 endanger the health, safety, or welfare of the condominium 2375 residents or other persons and that such guidelines provide 2376 reasonable and meaningful notice to the public of likely 2377 penalties that may be imposed for proscribed conduct. This 2378 subsection does not limit the ability of the division to 2379 informally dispose of administrative actions or complaints by 2380 stipulation, agreed settlement, or consent order. All amounts 2381 collected shall be deposited with the Chief Financial Officer to 2382 the credit of the Division of Florida Condominiums, Timeshares, 2383 and Mobile Homes Trust Fund. If a developer, bulk assignee, or 2384 bulk buyer fails to pay the civil penalty and the amount deemed 2385 to be owed to the association, the division shall issue an order 2386 directing that such developer, bulk assignee, or bulk buyer 2387 cease and desist from further operation until such time as the 2388 civil penalty is paid or may pursue enforcement of the penalty 2389 in a court of competent jurisdiction. If an association fails to 2390 pay the civil penalty, the division shall pursue enforcement in 2391 a court of competent jurisdiction, and the order imposing the 2392 civil penalty or the cease and desist order is not effective 2393 until 20 days after the date of such order. Any action commenced 2394 by the division shall be brought in the county in which the 2395 division has its executive offices or in the county in which the 2396 violation occurred. 2397 7.If a unit owner presents the division with proof that 2398 the unit owner has requested access to official records in 2399 writing by certified mail, and that after 10 days the unit owner 2400 again made the same request for access to official records in 2401 writing by certified mail, and that more than 10 days has 2402 elapsed since the second request and the association has still 2403 failed or refused to provide access to official records as 2404 required by this chapter, the division shall issue a subpoena 2405 requiring production of the requested records at the location in 2406 which the records are kept pursuant to s. 718.112. Upon receipt 2407 of the records, the division must provide to the unit owner who 2408 was denied access to such records the produced official records 2409 without charge. 2410 8.In addition to subparagraph 6., the division may seek 2411 the imposition of a civil penalty through the circuit court for 2412 any violation for which the division may issue a notice to show 2413 cause under paragraph (t). The civil penalty shall be at least 2414 $500 but no more than $5,000 for each violation. The court may 2415 also award to the prevailing party court costs and reasonable 2416 attorney fees and, if the division prevails, may also award 2417 reasonable costs of investigation. 2418 9.The division may issue citations and promulgate rules to 2419 provide for citation bases and citation procedures in accordance 2420 with this paragraph. 2421 (f)The division may prepare and disseminate a prospectus 2422 and other information to assist prospective owners, purchasers, 2423 lessees, and developers of residential condominiums in assessing 2424 the rights, privileges, and duties pertaining thereto. 2425 (g)The division may adopt rules to administer and enforce 2426 this chapter. 2427 (h)The division shall establish procedures for providing 2428 notice to an association and the developer, bulk assignee, or 2429 bulk buyer during the period in which the developer, bulk 2430 assignee, or bulk buyer controls the association if the division 2431 is considering the issuance of a declaratory statement with 2432 respect to the declaration of condominium or any related 2433 document governing such condominium community. 2434 (i)The division shall furnish each association that pays 2435 the fees required by paragraph (2)(a) a copy of this chapter, as 2436 amended, and the rules adopted thereto on an annual basis. 2437 (j)The division shall annually provide each association 2438 with a summary of declaratory statements and formal legal 2439 opinions relating to the operations of condominiums which were 2440 rendered by the division during the previous year. 2441 (k)The division shall provide training and educational 2442 programs for condominium association board members and unit 2443 owners. The training may, in the divisions discretion, include 2444 web-based electronic media and live training and seminars in 2445 various locations throughout the state. The division may review 2446 and approve education and training programs for board members 2447 and unit owners offered by providers and shall maintain a 2448 current list of approved programs and providers and make such 2449 list available to board members and unit owners in a reasonable 2450 and cost-effective manner. The division shall provide the 2451 division-approved provider with the template certificate for 2452 issuance directly to the associations board of directors who 2453 have satisfactorily completed the requirements under s. 2454 718.112(2)(d). The division shall adopt rules to implement this 2455 section. 2456 (l)The division shall maintain a toll-free telephone 2457 number accessible to condominium unit owners. 2458 (m)The division shall develop a program to certify both 2459 volunteer and paid mediators to provide mediation of condominium 2460 disputes. The division shall provide, upon request, a list of 2461 such mediators to any association, unit owner, or other 2462 participant in alternative dispute resolution proceedings under 2463 s. 718.1255 requesting a copy of the list. The division shall 2464 include on the list of volunteer mediators only the names of 2465 persons who have received at least 20 hours of training in 2466 mediation techniques or who have mediated at least 20 disputes. 2467 In order to become initially certified by the division, paid 2468 mediators must be certified by the Supreme Court to mediate 2469 court cases in county or circuit courts. However, the division 2470 may adopt, by rule, additional factors for the certification of 2471 paid mediators, which must be related to experience, education, 2472 or background. Any person initially certified as a paid mediator 2473 by the division must, in order to continue to be certified, 2474 comply with the factors or requirements adopted by rule. 2475 (n)If a complaint is made, the division must conduct its 2476 inquiry with due regard for the interests of the affected 2477 parties. Within 30 days after receipt of a complaint, the 2478 division shall acknowledge the complaint in writing and notify 2479 the complainant whether the complaint is within the jurisdiction 2480 of the division and whether additional information is needed by 2481 the division from the complainant. The division shall conduct 2482 its investigation and, within 90 days after receipt of the 2483 original complaint or of timely requested additional 2484 information, take action upon the complaint. However, the 2485 failure to complete the investigation within 90 days does not 2486 prevent the division from continuing the investigation, 2487 accepting or considering evidence obtained or received after 90 2488 days, or taking administrative action if reasonable cause exists 2489 to believe that a violation of this chapter or a rule has 2490 occurred. If an investigation is not completed within the time 2491 limits established in this paragraph, the division shall, on a 2492 monthly basis, notify the complainant in writing of the status 2493 of the investigation. When reporting its action to the 2494 complainant, the division shall inform the complainant of any 2495 right to a hearing under ss. 120.569 and 120.57. The division 2496 may adopt rules regarding the submission of a complaint against 2497 an association. 2498 (o)Condominium association directors, officers, and 2499 employees; condominium developers; bulk assignees, bulk buyers, 2500 and community association managers; and community association 2501 management firms have an ongoing duty to reasonably cooperate 2502 with the division in any investigation under this section. The 2503 division shall refer to local law enforcement authorities any 2504 person whom the division believes has altered, destroyed, 2505 concealed, or removed any record, document, or thing required to 2506 be kept or maintained by this chapter with the purpose to impair 2507 its verity or availability in the departments investigation. 2508 The division shall refer to local law enforcement authorities 2509 any person whom the division believes has engaged in fraud, 2510 theft, embezzlement, or other criminal activity or when the 2511 division has cause to believe that fraud, theft, embezzlement, 2512 or other criminal activity has occurred. 2513 (p)The division director or any officer or employee of the 2514 division and the condominium ombudsman or any employee of the 2515 Office of the Condominium Ombudsman may attend and observe any 2516 meeting of the board of administration or any unit owner 2517 meeting, including any meeting of a subcommittee or special 2518 committee, which is open to members of the association for the 2519 purpose of performing the duties of the division or the Office 2520 of the Condominium Ombudsman under this chapter. 2521 (q)The division may: 2522 1.Contract with agencies in this state or other 2523 jurisdictions to perform investigative functions; or 2524 2.Accept grants-in-aid from any source. 2525 (r)The division shall cooperate with similar agencies in 2526 other jurisdictions to establish uniform filing procedures and 2527 forms, public offering statements, advertising standards, and 2528 rules and common administrative practices. 2529 (s)The division shall consider notice to a developer, bulk 2530 assignee, or bulk buyer to be complete when it is delivered to 2531 the address of the developer, bulk assignee, or bulk buyer 2532 currently on file with the division. 2533 (t)In addition to its enforcement authority, the division 2534 may issue a notice to show cause, which must provide for a 2535 hearing, upon written request, in accordance with chapter 120. 2536 (u)If the division receives a complaint regarding access 2537 to official records on the associations website or through an 2538 application that can be downloaded on a mobile device under s. 2539 718.111(12)(g), the division may request access to the 2540 associations website or application and investigate. The 2541 division may adopt rules to carry out this paragraph. 2542 (v)The division shall submit to the Governor, the 2543 President of the Senate, the Speaker of the House of 2544 Representatives, and the chairs of the legislative 2545 appropriations committees an annual report that includes, but 2546 need not be limited to, the number of training programs provided 2547 for condominium association board members and unit owners, the 2548 number of complaints received by type, the number and percent of 2549 complaints acknowledged in writing within 30 days and the number 2550 and percent of investigations acted upon within 90 days in 2551 accordance with paragraph (n), and the number of investigations 2552 exceeding the 90-day requirement. The annual report must also 2553 include an evaluation of the divisions core business processes 2554 and make recommendations for improvements, including statutory 2555 changes. After December 31, 2024, the division must include a 2556 list of the associations that have completed the structural 2557 integrity reserve study required under s. 718.112(2)(g). The 2558 report shall be submitted by September 30 following the end of 2559 the fiscal year. 2560 (2) 2561 (d)Each condominium association must create and maintain 2562 an online account with the division, as required in subsection 2563 (3). 2564 (3) On or before October 1, 2025, all condominium 2565 associations must create and maintain an online account with the 2566 division and provide information requested by the division in an 2567 electronic format determined by the division. The division shall 2568 adopt rules to implement this subsection. The division may 2569 require condominium associations to provide such information no 2570 more than once per year, except that the division may require 2571 condominium associations to update the contact information in 2572 paragraph (a) within 30 days after any change. The division 2573 shall provide a condominium association at least a 45-day notice 2574 of any requirement to provide any information after the 2575 condominium association initially creates an online account. The 2576 information that the division may require from condominium 2577 associations is limited to: 2578 (a)Contact information for the association that includes: 2579 1.Name of the association. 2580 2. The physical address of the condominium property. 2581 3.Mailing address and county of the association. 2582 4.E-mail address and telephone number for the association. 2583 5.Name and board title for each member of the 2584 associations board. 2585 6.Name and contact information of the associations 2586 community association manager or community association 2587 management firm, if applicable. 2588 7.The hyperlink or website address of the associations 2589 website, if applicable. 2590 (b)Total number of buildings and for each building in the 2591 association: 2592 1.Total number of stories, including both habitable and 2593 uninhabitable stories. 2594 2.Total number of units. 2595 3.Age of each building based on the certificate of 2596 occupancy. 2597 4.Any construction commenced within the common elements 2598 within the calendar year. 2599 (c)The associations assessments, including the: 2600 1.Amount of assessment or special assessment by unit type, 2601 including reserves. 2602 2.Purpose of the assessment or special assessment. 2603 3.Name of the financial institution or institutions with 2604 which the association maintains accounts. 2605 (d)A copy of any structural integrity reserve study and 2606 any associated materials requested by the department within 5 2607 business days after such request, in a manner prescribed by the 2608 department. 2609 (a)On or before January 1, 2023, condominium associations 2610 existing on or before July 1, 2022, must provide the following 2611 information to the division in writing, by e-mail, United States 2612 Postal Service, commercial delivery service, or hand delivery, 2613 at a physical address or e-mail address provided by the division 2614 and on a form posted on the divisions website: 2615 1.The number of buildings on the condominium property that 2616 are three stories or higher in height. 2617 2.The total number of units in all such buildings. 2618 3.The addresses of all such buildings. 2619 4.The counties in which all such buildings are located. 2620 (b)The division must compile a list of the number of 2621 buildings on condominium property that are three stories or 2622 higher in height, which is searchable by county, and must post 2623 the list on the divisions website. This list must include all 2624 of the following information: 2625 1.The name of each association with buildings on the 2626 condominium property that are three stories or higher in height. 2627 2.The number of such buildings on each associations 2628 property. 2629 3.The addresses of all such buildings. 2630 4.The counties in which all such buildings are located. 2631 (c)An association must provide an update in writing to the 2632 division if there are any changes to the information in the list 2633 under paragraph (b) within 6 months after the change. 2634 Section 8.Paragraph (d) of subsection (1) and paragraphs 2635 (d) and (e) of subsection (2) of section 718.503, Florida 2636 Statutes, are amended, to read: 2637 718.503Developer disclosure prior to sale; nondeveloper 2638 unit owner disclosure prior to sale; voidability. 2639 (1)DEVELOPER DISCLOSURE. 2640 (d)Milestone inspection, turnover inspection report, or 2641 structural integrity reserve study.If the association is 2642 required to have completed a milestone inspection as described 2643 in s. 553.899, a turnover inspection report for a turnover 2644 inspection performed on or after July 1, 2023, or a structural 2645 integrity reserve study, and the association has not completed 2646 the milestone inspection, the turnover inspection report, or the 2647 structural integrity reserve study, each contract entered into 2648 after December 31, 2024, for the sale of a residential unit 2649 shall contain in conspicuous type a statement indicating that 2650 the association is required to have a milestone inspection, a 2651 turnover inspection report, or a structural integrity reserve 2652 study and has not completed such inspection, report, or study, 2653 as appropriate. If the association is not required to have a 2654 milestone inspection as described in s. 553.899 or a structural 2655 integrity reserve study, each contract entered into after 2656 December 31, 2024, for the sale of a residential unit shall 2657 contain in conspicuous type a statement indicating that the 2658 association is not required to have a milestone inspection or a 2659 structural integrity reserve study, as appropriate. If the 2660 association has completed a milestone inspection as described in 2661 s. 553.899, a turnover inspection report for a turnover 2662 inspection performed on or after July 1, 2023, or a structural 2663 integrity reserve study, each contract entered into after 2664 December 31, 2024, for the sale of a residential unit shall 2665 contain in conspicuous type: 2666 1.A clause which states: THE BUYER HEREBY ACKNOWLEDGES 2667 THAT BUYER HAS BEEN PROVIDED A CURRENT COPY OF THE INSPECTOR 2668 PREPARED SUMMARY OF THE MILESTONE INSPECTION REPORT AS DESCRIBED 2669 IN SECTION 553.899, FLORIDA STATUTES, IF APPLICABLE; A COPY OF 2670 THE TURNOVER INSPECTION REPORT DESCRIBED IN SECTION 2671 718.301(4)(p) AND (q), FLORIDA STATUTES, IF APPLICABLE; AND A 2672 COPY OF THE ASSOCIATIONS MOST RECENT STRUCTURAL INTEGRITY 2673 RESERVE STUDY DESCRIBED IN SECTIONS 718.103(26) AND 2674 718.112(2)(g), FLORIDA STATUTES, IF APPLICABLE, MORE THAN 15 2675 DAYS, EXCLUDING SATURDAYS, SUNDAYS, AND LEGAL HOLIDAYS, BEFORE 2676 PRIOR TO EXECUTION OF THIS CONTRACT; and 2677 2.A clause which states: THIS AGREEMENT IS VOIDABLE BY 2678 BUYER BY DELIVERING WRITTEN NOTICE OF THE BUYERS INTENTION TO 2679 CANCEL WITHIN 15 DAYS, EXCLUDING SATURDAYS, SUNDAYS, AND LEGAL 2680 HOLIDAYS, AFTER THE DATE OF EXECUTION OF THIS AGREEMENT BY THE 2681 BUYER AND RECEIPT BY BUYER OF A CURRENT COPY OF THE INSPECTOR 2682 PREPARED SUMMARY OF THE MILESTONE INSPECTION REPORT AS DESCRIBED 2683 IN SECTION 553.899, FLORIDA STATUTES, IF APPLICABLE; A COPY OF 2684 THE TURNOVER INSPECTION REPORT DESCRIBED IN SECTION 2685 718.301(4)(p) AND (q), FLORIDA STATUTES, IF APPLICABLE; AND A 2686 COPY OF THE ASSOCIATIONS MOST RECENT STRUCTURAL INTEGRITY 2687 RESERVE STUDY DESCRIBED IN SECTIONS 718.103(26) AND 2688 718.112(2)(g), FLORIDA STATUTES, IF APPLICABLE. ANY PURPORTED 2689 WAIVER OF THESE VOIDABILITY RIGHTS SHALL BE OF NO EFFECT. BUYER 2690 MAY EXTEND THE TIME FOR CLOSING FOR A PERIOD OF NOT MORE THAN 15 2691 DAYS, EXCLUDING SATURDAYS, SUNDAYS, AND LEGAL HOLIDAYS, AFTER 2692 THE BUYER RECEIVES A CURRENT COPY OF THE INSPECTOR-PREPARED 2693 SUMMARY OF THE MILESTONE INSPECTION REPORT AS DESCRIBED IN 2694 SECTION 553.899, FLORIDA STATUTES; A COPY OF THE TURNOVER 2695 INSPECTION REPORT DESCRIBED IN SECTION 718.301(4)(p) AND (q), 2696 FLORIDA STATUTES; OR A COPY OF THE ASSOCIATIONS MOST RECENT 2697 STRUCTURAL INTEGRITY RESERVE STUDY DESCRIBED IN SECTIONS 2698 718.103(26) AND 718.112(2)(g), FLORIDA STATUTES, IF REQUESTED IN 2699 WRITING. BUYERS RIGHT TO VOID THIS AGREEMENT SHALL TERMINATE AT 2700 CLOSING. 2701 2702 A contract that does not conform to the requirements of this 2703 paragraph is voidable at the option of the purchaser before 2704 prior to closing. 2705 (2)NONDEVELOPER DISCLOSURE. 2706 (d)Each contract entered into after July 1, 1992, for the 2707 resale of a residential unit must shall contain in conspicuous 2708 type either: 2709 1.A clause which states: THE BUYER HEREBY ACKNOWLEDGES 2710 THAT BUYER HAS BEEN PROVIDED A CURRENT COPY OF THE DECLARATION 2711 OF CONDOMINIUM, ARTICLES OF INCORPORATION OF THE ASSOCIATION, 2712 BYLAWS AND RULES OF THE ASSOCIATION, A COPY OF THE MOST RECENT 2713 ANNUAL FINANCIAL STATEMENT AND ANNUAL BUDGET, AND FREQUENTLY 2714 ASKED QUESTIONS AND ANSWERS DOCUMENT MORE THAN 7 3 DAYS, 2715 EXCLUDING SATURDAYS, SUNDAYS, AND LEGAL HOLIDAYS, BEFORE PRIOR 2716 TO EXECUTION OF THIS CONTRACT; or 2717 2.A clause which states: THIS AGREEMENT IS VOIDABLE BY 2718 BUYER BY DELIVERING WRITTEN NOTICE OF THE BUYERS INTENTION TO 2719 CANCEL WITHIN 7 3 DAYS, EXCLUDING SATURDAYS, SUNDAYS, AND LEGAL 2720 HOLIDAYS, AFTER THE DATE OF EXECUTION OF THIS AGREEMENT BY THE 2721 BUYER AND RECEIPT BY BUYER OF A CURRENT COPY OF THE DECLARATION 2722 OF CONDOMINIUM, ARTICLES OF INCORPORATION, BYLAWS AND RULES OF 2723 THE ASSOCIATION, A COPY OF THE MOST RECENT ANNUAL FINANCIAL 2724 STATEMENT AND ANNUAL BUDGET, AND FREQUENTLY ASKED QUESTIONS AND 2725 ANSWERS DOCUMENT IF SO REQUESTED IN WRITING. ANY PURPORTED 2726 WAIVER OF THESE VOIDABILITY RIGHTS SHALL BE OF NO EFFECT. BUYER 2727 MAY EXTEND THE TIME FOR CLOSING FOR A PERIOD OF NOT MORE THAN 7 2728 3 DAYS, EXCLUDING SATURDAYS, SUNDAYS, AND LEGAL HOLIDAYS, AFTER 2729 THE BUYER RECEIVES THE DECLARATION, ARTICLES OF INCORPORATION, 2730 BYLAWS AND RULES OF THE ASSOCIATION, AND A COPY OF THE MOST 2731 RECENT YEAR-END FINANCIAL STATEMENT AND ANNUAL BUDGET 2732 INFORMATION AND FREQUENTLY ASKED QUESTIONS AND ANSWERS DOCUMENT 2733 IF REQUESTED IN WRITING. BUYERS RIGHT TO VOID THIS AGREEMENT 2734 SHALL TERMINATE AT CLOSING. 2735 2736 A contract that does not conform to the requirements of this 2737 paragraph is voidable at the option of the purchaser before 2738 prior to closing. 2739 (e)If the association is required to have completed a 2740 milestone inspection as described in s. 553.899, a turnover 2741 inspection report for a turnover inspection performed on or 2742 after July 1, 2023, or a structural integrity reserve study, and 2743 the association has not completed the milestone inspection, the 2744 turnover inspection report, or the structural integrity reserve 2745 study, each contract entered into after December 31, 2024, for 2746 the sale of a residential unit shall contain in conspicuous type 2747 a statement indicating that the association is required to have 2748 a milestone inspection, a turnover inspection report, or a 2749 structural integrity reserve study and has not completed such 2750 inspection, report, or study, as appropriate. If the association 2751 is not required to have a milestone inspection as described in 2752 s. 553.899 or a structural integrity reserve study, each 2753 contract entered into after December 31, 2024, for the sale of a 2754 residential unit shall contain in conspicuous type a statement 2755 indicating that the association is not required to have a 2756 milestone inspection or a structural integrity reserve study, as 2757 appropriate. If the association has completed a milestone 2758 inspection as described in s. 553.899, a turnover inspection 2759 report for a turnover inspection performed on or after July 1, 2760 2023, or a structural integrity reserve study, each contract 2761 entered into after December 31, 2024, for the resale of a 2762 residential unit shall contain in conspicuous type: 2763 1.A clause which states: THE BUYER HEREBY ACKNOWLEDGES 2764 THAT BUYER HAS BEEN PROVIDED A CURRENT COPY OF THE INSPECTOR 2765 PREPARED SUMMARY OF THE MILESTONE INSPECTION REPORT AS DESCRIBED 2766 IN SECTION 553.899, FLORIDA STATUTES, IF APPLICABLE; A COPY OF 2767 THE TURNOVER INSPECTION REPORT DESCRIBED IN SECTION 2768 718.301(4)(p) AND (q), FLORIDA STATUTES, IF APPLICABLE; AND A 2769 COPY OF THE ASSOCIATIONS MOST RECENT STRUCTURAL INTEGRITY 2770 RESERVE STUDY DESCRIBED IN SECTIONS 718.103(26) AND 2771 718.112(2)(g), FLORIDA STATUTES, IF APPLICABLE, MORE THAN 7 3 2772 DAYS, EXCLUDING SATURDAYS, SUNDAYS, AND LEGAL HOLIDAYS, BEFORE 2773 PRIOR TO EXECUTION OF THIS CONTRACT; and 2774 2.A clause which states: THIS AGREEMENT IS VOIDABLE BY 2775 BUYER BY DELIVERING WRITTEN NOTICE OF THE BUYERS INTENTION TO 2776 CANCEL WITHIN 7 3 DAYS, EXCLUDING SATURDAYS, SUNDAYS, AND LEGAL 2777 HOLIDAYS, AFTER THE DATE OF EXECUTION OF THIS AGREEMENT BY THE 2778 BUYER AND RECEIPT BY BUYER OF A CURRENT COPY OF THE INSPECTOR 2779 PREPARED SUMMARY OF THE MILESTONE INSPECTION REPORT AS DESCRIBED 2780 IN SECTION 553.899, FLORIDA STATUTES, IF APPLICABLE; A COPY OF 2781 THE TURNOVER INSPECTION REPORT DESCRIBED IN SECTION 2782 718.301(4)(p) AND (q), FLORIDA STATUTES, IF APPLICABLE; AND A 2783 COPY OF THE ASSOCIATIONS MOST RECENT STRUCTURAL INTEGRITY 2784 RESERVE STUDY DESCRIBED IN SECTIONS 718.103(26) AND 2785 718.112(2)(g), FLORIDA STATUTES, IF APPLICABLE. ANY PURPORTED 2786 WAIVER OF THESE VOIDABILITY RIGHTS SHALL BE OF NO EFFECT. BUYER 2787 MAY EXTEND THE TIME FOR CLOSING FOR A PERIOD OF NOT MORE THAN 7 2788 3 DAYS, EXCLUDING SATURDAYS, SUNDAYS, AND LEGAL HOLIDAYS, AFTER 2789 THE BUYER RECEIVES A CURRENT COPY OF THE INSPECTOR-PREPARED 2790 SUMMARY OF THE MILESTONE INSPECTION REPORT AS DESCRIBED IN 2791 SECTION 553.899, FLORIDA STATUTES; A COPY OF THE TURNOVER 2792 INSPECTION REPORT DESCRIBED IN SECTION 718.301(4)(p) AND (q), 2793 FLORIDA STATUTES; OR A COPY OF THE ASSOCIATIONS MOST RECENT 2794 STRUCTURAL INTEGRITY RESERVE STUDY DESCRIBED IN SECTIONS 2795 718.103(26) AND 718.112(2)(g), FLORIDA STATUTES, IF REQUESTED IN 2796 WRITING. BUYERS RIGHT TO VOID THIS AGREEMENT SHALL TERMINATE AT 2797 CLOSING. 2798 2799 A contract that does not conform to the requirements of this 2800 paragraph is voidable at the option of the purchaser before 2801 prior to closing. 2802 Section 9.Section 8 of chapter 2024-244, Laws of Florida, 2803 is amended to read: 2804 Section 8.Effective January 1, 2026, paragraph (g) of 2805 subsection (12) of section 718.111, Florida Statutes, as amended 2806 by this act, is amended to read: 2807 718.111The association. 2808 (12)OFFICIAL RECORDS. 2809 (g)1.An association managing a condominium with 25 or more 2810 units which does not contain timeshare units shall post digital 2811 copies of the documents specified in subparagraph 2. on its 2812 website or make such documents available through an application 2813 that can be downloaded on a mobile device. Unless a shorter 2814 period is otherwise required, a document must be made available 2815 on the associations website or made available for download 2816 through an application on a mobile device within 30 days after 2817 the association receives or creates an official record specified 2818 in subparagraph 2. 2819 a.The associations website or application must be: 2820 (I)An independent website, application, or web portal 2821 wholly owned and operated by the association; or 2822 (II)A website, application, or web portal operated by a 2823 third-party provider with whom the association owns, leases, 2824 rents, or otherwise obtains the right to operate a web page, 2825 subpage, web portal, collection of subpages or web portals, or 2826 an application which is dedicated to the associations 2827 activities and on which required notices, records, and documents 2828 may be posted or made available by the association. 2829 b.The associations website or application must be 2830 accessible through the Internet and must contain a subpage, web 2831 portal, or other protected electronic location that is 2832 inaccessible to the general public and accessible only to unit 2833 owners and employees of the association. 2834 c.Upon a unit owners written request, the association 2835 must provide the unit owner with a username and password and 2836 access to the protected sections of the associations website or 2837 application which contain any notices, records, or documents 2838 that must be electronically provided. 2839 2.A current copy of the following documents must be posted 2840 in digital format on the associations website or application: 2841 a.The recorded declaration of condominium of each 2842 condominium operated by the association and each amendment to 2843 each declaration. 2844 b.The recorded bylaws of the association and each 2845 amendment to the bylaws. 2846 c.The articles of incorporation of the association, or 2847 other documents creating the association, and each amendment to 2848 the articles of incorporation or other documents. The copy 2849 posted pursuant to this sub-subparagraph must be a copy of the 2850 articles of incorporation filed with the Department of State. 2851 d.The rules of the association. 2852 e.The approved minutes of all board of administration 2853 meetings over the preceding 12 months. 2854 f.The video recording or a hyperlink to the video 2855 recording for all meetings of the association, the board of 2856 administration, any committee, and the unit owners which are 2857 conducted by video conference over the preceding 12 months. 2858 g.A list of all executory contracts or documents to which 2859 the association is a party or under which the association or the 2860 unit owners have an obligation or responsibility and, after 2861 bidding for the related materials, equipment, or services has 2862 closed, a list of bids received by the association within the 2863 past year. Summaries of bids for materials, equipment, or 2864 services which exceed $500 must be maintained on the website or 2865 application for 1 year. In lieu of summaries, complete copies of 2866 the bids may be posted. 2867 h.f.The annual budget required by s. 718.112(2)(f) and any 2868 proposed budget to be considered at the annual meeting. 2869 i.g.The financial report required by subsection (13) and 2870 any monthly income or expense statement to be considered at a 2871 meeting. 2872 j.h.The certification of each director required by s. 2873 718.112(2)(d)4.b. 2874 k.i.All contracts or transactions between the association 2875 and any director, officer, corporation, firm, or association 2876 that is not an affiliated condominium association or any other 2877 entity in which an association director is also a director or 2878 officer and financially interested. 2879 l.j.Any contract or document regarding a conflict of 2880 interest or possible conflict of interest as provided in ss. 2881 468.4335, 468.436(2)(b)6., and 718.3027(3). 2882 m.k.The notice of any unit owner meeting and the agenda 2883 for the meeting, as required by s. 718.112(2)(d)3., no later 2884 than 14 days before the meeting. The notice must be posted in 2885 plain view on the front page of the website or application, or 2886 on a separate subpage of the website or application labeled 2887 Notices which is conspicuously visible and linked from the 2888 front page. The association must also post on its website or 2889 application any document to be considered and voted on by the 2890 owners during the meeting or any document listed on the agenda 2891 at least 7 days before the meeting at which the document or the 2892 information within the document will be considered. 2893 n.l.Notice of any board meeting, the agenda, and any other 2894 document required for the meeting as required by s. 2895 718.112(2)(c), which must be posted no later than the date 2896 required for notice under s. 718.112(2)(c). 2897 o.m.The inspection reports described in ss. 553.899 and 2898 718.301(4)(p) and any other inspection report relating to a 2899 structural or life safety inspection of condominium property. 2900 p.n.The associations most recent structural integrity 2901 reserve study, if applicable. 2902 q.o.Copies of all building permits issued for ongoing or 2903 planned construction. 2904 r.A copy of all affidavits required by this chapter. 2905 s.A copy of all investment policy statements adopted 2906 pursuant to paragraph (16)(c), and all financial statements 2907 related to the associations investment of funds under 2908 subsection (16). 2909 3.The association shall ensure that the information and 2910 records described in paragraph (c), which are not allowed to be 2911 accessible to unit owners, are not posted on the associations 2912 website or application. If protected information or information 2913 restricted from being accessible to unit owners is included in 2914 documents that are required to be posted on the associations 2915 website or application, the association shall ensure the 2916 information is redacted before posting the documents. 2917 Notwithstanding the foregoing, the association or its agent is 2918 not liable for disclosing information that is protected or 2919 restricted under this paragraph unless such disclosure was made 2920 with a knowing or intentional disregard of the protected or 2921 restricted nature of such information. 2922 4.The failure of the association to post information 2923 required under subparagraph 2. is not in and of itself 2924 sufficient to invalidate any action or decision of the 2925 associations board or its committees. 2926 Section 10.Section 31 of chapter 2024-244, Laws of 2927 Florida, is amended to read: 2928 Section 31.The amendments made to ss. 718.103(14) and 2929 718.202(3) and 718.407(1), (2), and (6), Florida Statutes, as 2930 created by this act, may not are intended to clarify existing 2931 law and shall apply retroactively and shall only apply to 2932 condominiums for which declarations were initially recorded on 2933 or after October 1, 2024. However, such amendments do not revive 2934 or reinstate any right or interest that has been fully and 2935 finally adjudicated as invalid before October 1, 2024. 2936 Section 11.Subsection (13) is added to section 719.104, 2937 Florida Statutes, to read: 2938 719.104Cooperatives; access to units; records; financial 2939 reports; assessments; purchase of leases. 2940 (13)INVESTMENT OF ASSOCIATION FUNDS. 2941 (a)A board shall, in fulfilling its duty to manage 2942 operating and reserve funds of its association, use best efforts 2943 to make prudent investment decisions that carefully consider 2944 risk and return in an effort to maximize returns on invested 2945 funds. 2946 (b)An association may invest reserve funds in one or any 2947 combination of certificates of deposit or in depository accounts 2948 at a community bank, savings bank, commercial bank, savings and 2949 loan association, or credit union. Upon a majority vote of the 2950 voting interests, an association may invest reserve funds in 2951 investments other than certificates of deposit or depository 2952 accounts at a community bank, savings bank, commercial bank, 2953 savings and loan association, or credit union, provided the 2954 association complies with paragraphs (c)-(g). Notwithstanding 2955 any declaration, only funds identified as reserve funds may be 2956 invested pursuant to paragraphs (c)-(g). Paragraphs (c)-(g) do 2957 not apply to funds invested in one or any combination of 2958 certificates of deposit or depository accounts at a community 2959 bank, savings bank, commercial bank, savings and loan 2960 association, or credit union. 2961 (c)The board shall create an investment committee composed 2962 of at least two board members and two-unit unit members who are 2963 unit owners but not board members. The board shall also adopt 2964 rules for invested funds, including, but not limited to, rules 2965 requiring periodic reviews of any investment managers 2966 performance, the development of an investment policy statement, 2967 and that all meetings of the investment committee be recorded 2968 and made part of the official records of the association. The 2969 investment policy statement developed pursuant to this paragraph 2970 must, at a minimum, address risk, liquidity, and benchmark 2971 measurements; authorized classes of investments; authorized 2972 investment mixes; limitations on authority relating to 2973 investment transactions; requirements for projected reserve 2974 expenditures within, at minimum, the next 24 months to be held 2975 in cash or cash equivalents; projected expenditures relating to 2976 an inspection performed pursuant to s. 553.899; and protocols 2977 for proxy response. 2978 (d)The investment committee shall recommend investment 2979 advisers to the board, and the board shall select one of the 2980 recommended investment advisers to provide services to the 2981 association. Such investment advisers must be registered or have 2982 notice filed under s. 517.12. The selected investment adviser 2983 and any representative or association of the investment adviser 2984 may not be related by affinity or consanguinity to, or under 2985 common ownership with, any board member, community management 2986 company, reserve study provider, or a co-owner of a unit with a 2987 board member or investment committee member. The investment 2988 adviser shall comply with the prudent investor rule in s. 2989 518.11. The investment adviser shall act as a fiduciary to the 2990 association in compliance with the standards set forth in the 2991 Employee Retirement Income Security Act of 1974 at 29 U.S.C. s. 2992 1104(a)(1)(A)-(C). In case of conflict with other laws 2993 authorizing investments, the investment and fiduciary standards 2994 set forth in this subsection must prevail. If at any time the 2995 investment committee determines that an investment adviser does 2996 not meet the requirements of this section, the investment 2997 committee must recommend a replacement investment adviser to the 2998 board. 2999 (e)At least once each calendar year, or sooner if a 3000 substantial financial obligation of the association becomes 3001 known to the board, the association must provide the investment 3002 adviser with the associations investment policy statement, the 3003 most recent reserve study report, the associations structural 3004 integrity report, and the financial reports prepared pursuant to 3005 subsection (13). If there is no recent reserve study report, the 3006 association must provide the investment adviser with a good 3007 faith estimate disclosing the annual amount of reserve funds 3008 necessary for the association to fund reserves fully for the 3009 life of each reserve component and each components 3010 redundancies. The investment adviser shall annually review these 3011 documents and provide the association with a portfolio 3012 allocation model that is suitably structured and prudently 3013 designed to match projected annual reserve fund requirements and 3014 liability, assets, and liquidity requirements. The investment 3015 adviser shall prepare a funding projection for each reserve 3016 component, including any of the components redundancies. The 3017 association shall have available at all times a minimum of 24 3018 months of projected reserves in cash or cash equivalents. 3019 (f)Portfolios managed by the investment adviser may 3020 contain any type of investment necessary to meet the objectives 3021 in the investment policy statement; however, portfolios may not 3022 contain stocks, securities, or other obligations that the State 3023 Board of Administration is prohibited from investing in under s. 3024 215.471, s. 215.4725, or s. 215.473 or that state agencies are 3025 prohibited from investing in under s. 215.472, as determined by 3026 the investment adviser. Any funds invested by the investment 3027 adviser must be held in third-party custodial accounts that are 3028 subject to insurance coverage by the Securities Investor 3029 Protection Corporation in an amount equal to or greater than the 3030 invested amount. The investment adviser may withdraw investment 3031 fees, expenses, and commissions from invested funds. 3032 (g)The investment adviser shall: 3033 1.Annually provide the association with a written 3034 certification of compliance with this section and a list of 3035 stocks, securities, and other obligations that are prohibited 3036 from being in association portfolios under paragraph (f); and 3037 2.Submit monthly, quarterly, and annual reports to the 3038 association which are prepared in accordance with established 3039 financial industry standards and in accordance with chapter 517. 3040 (h)Any principal, earnings, or interest managed under this 3041 subsection must be available at no cost or charge to the 3042 association within 15 business days after delivery of the 3043 associations written or electronic request. 3044 (i)Unallocated income earned on reserve fund investments 3045 may be spent only on capital expenditures, planned maintenance, 3046 structural repairs, or other items for which the reserve 3047 accounts have been established. Any surplus of funds that 3048 exceeds the amount required to maintain reasonably funded 3049 reserves must be managed pursuant to s. 718.115. 3050 Section 12.Paragraphs (j) and (k) of subsection (1) of 3051 section 719.106, Florida Statutes, are amended to read: 3052 719.106Bylaws; cooperative ownership. 3053 (1)MANDATORY PROVISIONS.The bylaws or other cooperative 3054 documents shall provide for the following, and if they do not, 3055 they shall be deemed to include the following: 3056 (j)Annual budget. 3057 1.The proposed annual budget of common expenses must be 3058 detailed and must show the amounts budgeted by accounts and 3059 expense classifications, including, if applicable, but not 3060 limited to, those expenses listed in s. 719.504(20). The board 3061 of administration shall adopt the annual budget at least 14 days 3062 before the start of the associations fiscal year. In the event 3063 that the board fails to timely adopt the annual budget a second 3064 time, it is deemed a minor violation and the prior years budget 3065 shall continue in effect until a new budget is adopted. 3066 2.a.In addition to annual operating expenses, the budget 3067 must include reserve accounts for capital expenditures and 3068 deferred maintenance. These accounts must include, but not be 3069 limited to, roof replacement, building painting, and pavement 3070 resurfacing, regardless of the amount of deferred maintenance 3071 expense or replacement cost, and for any other items for which 3072 the deferred maintenance expense or replacement cost exceeds 3073 $25,000 $10,000. The amount to be reserved must be computed by 3074 means of a formula which is based upon estimated remaining 3075 useful life and estimated replacement cost or deferred 3076 maintenance expense of the reserve item. In a budget adopted by 3077 an association that is required to obtain a structural integrity 3078 reserve study, reserves must be maintained for the items 3079 identified in paragraph (k) for which the association is 3080 responsible pursuant to the declaration, and the reserve amount 3081 for such items must be based on the findings and recommendations 3082 of the associations most recent structural integrity reserve 3083 study. With respect to items for which an estimate of useful 3084 life is not readily ascertainable or with an estimated remaining 3085 useful life of greater than 25 years, an association is not 3086 required to reserve replacement costs for such items, but an 3087 association must reserve the amount of deferred maintenance 3088 expense, if any, which is recommended by the structural 3089 integrity reserve study for such items. The association may 3090 adjust replacement reserve assessments annually to take into 3091 account an inflation adjustment and any changes in estimates or 3092 extension of the useful life of a reserve item caused by 3093 deferred maintenance. 3094 b. The members of a unit-owner-controlled association may 3095 determine, by a majority vote of the total voting interests of 3096 the association, for a fiscal year to provide no reserves or 3097 reserves less adequate than required by this subsection. Before 3098 turnover of control of an association by a developer to unit 3099 owners other than a developer under s. 719.301, the developer 3100 controlled association may not vote to waive the reserves or 3101 reduce funding of the reserves. 3102 c. For a budget adopted on or after December 31, 2024, a 3103 unit-owner-controlled association that must obtain a structural 3104 integrity reserve study may not determine to provide no reserves 3105 or reserves less adequate than required by this paragraph for 3106 items listed in paragraph (k). If a meeting of the unit owners 3107 has been called to determine to provide no reserves, or reserves 3108 less adequate than required, and such result is not attained or 3109 a quorum is not attained, the reserves as included in the budget 3110 shall go into effect. 3111 d. If the local building official as defined in s. 468.603, 3112 determines that the entire cooperative building is uninhabitable 3113 due to a natural emergency as defined in s. 252.34, the board 3114 may pause the contribution to its reserves or reduce reserve 3115 funding until the local building official determines that the 3116 cooperative building is habitable. Any reserve account funds 3117 held by the association may be expended, pursuant to the boards 3118 determination, to make the cooperative building and its 3119 structures habitable. Upon the determination by the local 3120 building official that the cooperative building is habitable, 3121 the association must immediately resume contributing funds to 3122 its reserves. 3123 e.1. Reserves for the items listed in paragraph (g) may be 3124 funded by regular assessments, special assessments, lines of 3125 credit, or loans. 3126 2. A unit-owner-controlled association that must have a 3127 structural reserve study may secure a line of credit or a loan 3128 to fund capital expenses required by a milestone inspection 3129 under s. 553.899 or a structural integrity reserve study. Any 3130 line of credit or loan under this subparagraph requires the 3131 approval of a majority vote of the total voting interests of the 3132 association. The lines of credit or loans must be sufficient to 3133 fund the cumulative amount of any previously waived or unfunded 3134 portion of the reserve funding amount required by this paragraph 3135 and the most recent structural integrity reserve study. Funding 3136 from the lines of credit or loans must be immediately available 3137 for access by the board to fund required repair, maintenance, or 3138 replacement expenses without further approval by the members of 3139 the association. Any lines of credit or loans secured under this 3140 paragraph must be included in the financial report required 3141 under s. 719.104(4). 3142 a. For a budget adopted on or before December 31, 2028, if 3143 the association has completed a milestone inspection pursuant to 3144 s. 553.899 within the previous 2 calendar years, the board, upon 3145 the approval of a majority of the total voting interests of the 3146 association, may temporarily pause, for a period of no more than 3147 2 consecutive annual budgets, reserve fund contributions or 3148 reduce the amount of reserve funding for the purpose of funding 3149 repairs recommended by the milestone inspection. This sub 3150 subparagraph does not apply to a developer-controlled 3151 association and an association in which the non-developer unit 3152 owners have been in control for less than 1 year. 3153 b.An association that has paused reserve contributions 3154 under this sub-subparagraph a. must have a structural integrity 3155 reserve study performed before the continuation of reserve 3156 contributions in order to determine the associations reserve 3157 funding needs and to recommend a reserve funding plan. 3158 3.Reserve funds and any interest accruing thereon shall 3159 remain in the reserve account or accounts, and shall be used 3160 only for authorized reserve expenditures unless their use for 3161 other purposes is approved in advance by a vote of the majority 3162 of the total voting interests of the association. Before 3163 turnover of control of an association by a developer to unit 3164 owners other than the developer under s. 719.301, the developer 3165 may not vote to use reserves for purposes other than that for 3166 which they were intended. For a budget adopted on or after 3167 December 31, 2024, members of a unit-owner-controlled 3168 association that must obtain a structural integrity reserve 3169 study may not vote to use reserve funds, or any interest 3170 accruing thereon, for purposes other than the replacement or 3171 deferred maintenance costs of the components listed in paragraph 3172 (k). A vote of the members is not required for the board to 3173 change the accounting method for reserves to a pooling 3174 accounting method or a straight-line accounting method. 3175 (k)Structural integrity reserve study. 3176 1.A residential cooperative association must have a 3177 structural integrity reserve study completed at least every 10 3178 years for each building on the cooperative property that is 3179 three stories or higher in height, as determined by the Florida 3180 Building Code, that includes, at a minimum, a study of the 3181 following items as related to the structural integrity and 3182 safety of the building: 3183 a.Roof. 3184 b.Structure, including load-bearing walls and other 3185 primary structural members and primary structural systems as 3186 those terms are defined in s. 627.706. 3187 c.Fireproofing and fire protection systems. 3188 d.Plumbing. 3189 e.Electrical systems. 3190 f.Waterproofing and exterior painting. 3191 g.Windows and exterior doors. 3192 h.Any other item that has a deferred maintenance expense 3193 or replacement cost that exceeds $25,000 $10,000 and the failure 3194 to replace or maintain such item negatively affects the items 3195 listed in sub-subparagraphs a.-g., as determined by the visual 3196 inspection portion of the structural integrity reserve study. 3197 2.A structural integrity reserve study is based on a 3198 visual inspection of the cooperative property. 3199 3.a. A structural integrity reserve study may be performed 3200 by any person qualified to perform such study. However, the 3201 visual inspection portion of the structural integrity reserve 3202 study must be performed or verified by an engineer licensed 3203 under chapter 471, an architect licensed under chapter 481, or a 3204 person certified as a reserve specialist or professional reserve 3205 analyst by the Community Associations Institute or the 3206 Association of Professional Reserve Analysts. 3207 b. Any design professional as defined in s. 558.002(7) or 3208 contractor licensed under chapter 489 who bids to perform a 3209 structural integrity reserve study must disclose in writing to 3210 the association his or her intent to bid on any services related 3211 to any maintenance, repair, or replacement that may be 3212 recommended by the structural integrity reserve study. Any 3213 design professional as defined in s. 558.002 or contractor 3214 licensed under chapter 489 who submits a bid to the association 3215 for performing any services recommended by the structural 3216 integrity reserve study may not have an interest, directly or 3217 indirectly, in the firm or entity providing the associations 3218 structural integrity reserve study or be a relative of any 3219 person having a direct or indirect interest in such firm, unless 3220 such relationship is disclosed to the association in writing. As 3221 used in this section, the term relative means a relative 3222 within the third degree of consanguinity by blood or marriage. A 3223 contract for services is voidable and terminates upon the 3224 association filing a written notice terminating the contract if 3225 the design professional or licensed contractor failed to provide 3226 the written disclosure of the relationship required under this 3227 paragraph. A design professional or licensed contractor may be 3228 subject to discipline under the applicable practice act for his 3229 or her profession for failure to provide the written disclosure 3230 of the relationship required under this subparagraph. 3231 4.a.3.At a minimum, a structural integrity reserve study 3232 must identify each item of the cooperative property being 3233 visually inspected, state the estimated remaining useful life 3234 and the estimated replacement cost or deferred maintenance 3235 expense of each item of the cooperative property being visually 3236 inspected, and provide a reserve funding schedule with a 3237 recommended annual reserve amount that achieves the estimated 3238 replacement cost or deferred maintenance expense of each item of 3239 cooperative property being visually inspected by the end of the 3240 estimated remaining useful life of the item. The structural 3241 integrity reserve study may recommend that reserves do not need 3242 to be maintained for any item for which an estimate of useful 3243 life and an estimate of replacement cost cannot be determined, 3244 or the study may recommend a deferred maintenance expense amount 3245 for such item. At a minimum, the structural integrity reserve 3246 study must include a recommendation for a reserve funding 3247 schedule based on a baseline funding plan that provides a 3248 reserve funding goal in which the reserve funding for each 3249 budget year is sufficient to maintain the reserve cash balance 3250 above zero. The study may recommend other types of reserve 3251 funding schedules, provided that each recommended schedule is 3252 sufficient to meet the associations maintenance obligation. 3253 b. The structural integrity reserve study may recommend 3254 that reserves for replacement costs do not need to be maintained 3255 for any item with an estimated remaining useful life of greater 3256 than 25 years, but the study may recommend a deferred 3257 maintenance expense amount for such item. If the structural 3258 integrity reserve study recommends reserves for any item for 3259 which reserves are not required under this paragraph, the amount 3260 of the recommended reserves for such item must be separately 3261 identified in the structural integrity reserve study as an item 3262 for which reserves are not required under this paragraph. 3263 c. The structural integrity reserve study must take into 3264 consideration the funding method or methods used by the 3265 association to fund its maintenance and reserve funding 3266 obligations through regular assessments, special assessments, 3267 lines of credit, or loans. If the structural integrity reserve 3268 study is performed before the association has approved a special 3269 assessment or secured a line of credit or a loan, the structural 3270 integrity reserve study must be updated to reflect the funding 3271 method selected by the association and its effect on the reserve 3272 funding schedule, including any anticipated change in the amount 3273 of regular assessments. The structural integrity reserve study 3274 may be updated to reflect any changes to the useful life of the 3275 reserve items after such items are repaired or replaced, and the 3276 effect such repair or replacement will have on the reserve 3277 funding schedule. The association must obtain an updated 3278 structural integrity reserve study before adopting any budget in 3279 which the reserve funding from regular assessments, special 3280 assessments, lines of credit, or loans do not align with the 3281 funding plan from the most recent version of the structural 3282 integrity reserve study. 3283 5.4.This paragraph does not apply to buildings less than 3284 three stories in height; single-family, two-family, or three 3285 family dwellings with three or fewer habitable stories above 3286 ground; any portion or component of a building that has not been 3287 submitted to the cooperative form of ownership; or any portion 3288 or component of a building that is maintained by a party other 3289 than the association. 3290 6.5.Before a developer turns over control of an 3291 association to unit owners other than the developer, the 3292 developer must have a turnover inspection report in compliance 3293 with s. 719.301(4)(p) and (q) for each building on the 3294 cooperative property that is three stories or higher in height. 3295 7.6.Associations existing on or before July 1, 2022, which 3296 are controlled by unit owners other than the developer, must 3297 have a structural integrity reserve study completed by December 3298 31, 2024, for each building on the cooperative property that is 3299 three stories or higher in height. An association that is 3300 required to complete a milestone inspection on or before 3301 December 31, 2026, in accordance with s. 553.899 may complete 3302 the structural integrity reserve study simultaneously with the 3303 milestone inspection. In no event may the structural integrity 3304 reserve study be completed after December 31, 2026. 3305 8.7.If the milestone inspection required by s. 553.899, or 3306 an inspection completed for a similar local requirement, was 3307 performed within the past 5 years and meets the requirements of 3308 this paragraph, such inspection may be used in place of the 3309 visual inspection portion of the structural integrity reserve 3310 study. 3311 9. If the association completes a milestone inspection 3312 required by s. 553.899, or an inspection completed for a similar 3313 local requirement, the association may delay performance of a 3314 required structural integrity reserve study for no more than the 3315 2 consecutive budget years immediately following the milestone 3316 inspection in order to allow the association to focus its 3317 financial resources on completing the repair and maintenance 3318 recommendations of the milestone inspection. 3319 10.8.If the officers or directors of an association 3320 willfully and knowingly fail to complete a structural integrity 3321 reserve study pursuant to this paragraph, such failure is a 3322 breach of an officers and directors fiduciary relationship to 3323 the unit owners under s. 719.104(9). An officer or a director of 3324 the association must sign an affidavit acknowledging receipt of 3325 the completed structural integrity reserve study. 3326 11.9.Within 45 days after receiving the structural 3327 integrity reserve study, the association must distribute a copy 3328 of the study to each unit owner or deliver to each unit owner a 3329 notice that the completed study is available for inspection and 3330 copying upon a written request. Distribution of a copy of the 3331 study or notice must be made by United States mail or personal 3332 delivery at the mailing address, property address, or any other 3333 address of the owner provided to fulfill the associations 3334 notice requirements under this chapter, or by electronic 3335 transmission to the e-mail address or facsimile number provided 3336 to fulfill the associations notice requirements to unit owners 3337 who previously consented to receive notice by electronic 3338 transmission. 3339 12.10.Within 45 days after receiving the structural 3340 integrity reserve study, the association must provide the 3341 division with a statement indicating that the study was 3342 completed and that the association provided or made available 3343 such study to each unit owner in accordance with this section. 3344 Such statement must be provided to the division in the manner 3345 established by the division using a form posted on the 3346 divisions website. 3347 13. The division shall adopt by rule the form for the 3348 structural integrity reserve study in coordination with the 3349 Florida Building Commission. 3350 Section 13.Subsection (3) of section 719.501, Florida 3351 Statutes, is amended, paragraph (c) is added to subsection (2) 3352 of that section, and subsection (1) of that section is 3353 reenacted, to read: 3354 719.501Powers and duties of Division of Florida 3355 Condominiums, Timeshares, and Mobile Homes. 3356 (1)The Division of Florida Condominiums, Timeshares, and 3357 Mobile Homes of the Department of Business and Professional 3358 Regulation, referred to as the division in this part, in 3359 addition to other powers and duties prescribed by chapter 718, 3360 has the power to enforce and ensure compliance with this chapter 3361 and adopted rules relating to the development, construction, 3362 sale, lease, ownership, operation, and management of residential 3363 cooperative units; complaints related to the procedural 3364 completion of the structural integrity reserve studies under s. 3365 719.106(1)(k); and complaints related to the procedural 3366 completion of milestone inspections under s. 553.899. In 3367 performing its duties, the division shall have the following 3368 powers and duties: 3369 (a)The division may make necessary public or private 3370 investigations within or outside this state to determine whether 3371 any person has violated this chapter or any rule or order 3372 hereunder, to aid in the enforcement of this chapter, or to aid 3373 in the adoption of rules or forms hereunder. 3374 (b)The division may require or permit any person to file a 3375 statement in writing, under oath or otherwise, as the division 3376 determines, as to the facts and circumstances concerning a 3377 matter to be investigated. 3378 (c)For the purpose of any investigation under this 3379 chapter, the division director or any officer or employee 3380 designated by the division director may administer oaths or 3381 affirmations, subpoena witnesses and compel their attendance, 3382 take evidence, and require the production of any matter which is 3383 relevant to the investigation, including the existence, 3384 description, nature, custody, condition, and location of any 3385 books, documents, or other tangible things and the identity and 3386 location of persons having knowledge of relevant facts or any 3387 other matter reasonably calculated to lead to the discovery of 3388 material evidence. Upon failure by a person to obey a subpoena 3389 or to answer questions propounded by the investigating officer 3390 and upon reasonable notice to all persons affected thereby, the 3391 division may apply to the circuit court for an order compelling 3392 compliance. 3393 (d)Notwithstanding any remedies available to unit owners 3394 and associations, if the division has reasonable cause to 3395 believe that a violation of any provision of this chapter or 3396 related rule has occurred, the division may institute 3397 enforcement proceedings in its own name against a developer, 3398 association, officer, or member of the board, or its assignees 3399 or agents, as follows: 3400 1.The division may permit a person whose conduct or 3401 actions may be under investigation to waive formal proceedings 3402 and enter into a consent proceeding whereby orders, rules, or 3403 letters of censure or warning, whether formal or informal, may 3404 be entered against the person. 3405 2.The division may issue an order requiring the developer, 3406 association, officer, or member of the board, or its assignees 3407 or agents, to cease and desist from the unlawful practice and 3408 take such affirmative action as in the judgment of the division 3409 will carry out the purposes of this chapter. Such affirmative 3410 action may include, but is not limited to, an order requiring a 3411 developer to pay moneys determined to be owed to a condominium 3412 association. 3413 3.The division may bring an action in circuit court on 3414 behalf of a class of unit owners, lessees, or purchasers for 3415 declaratory relief, injunctive relief, or restitution. 3416 4.The division may impose a civil penalty against a 3417 developer or association, or its assignees or agents, for any 3418 violation of this chapter or related rule. The division may 3419 impose a civil penalty individually against any officer or board 3420 member who willfully and knowingly violates a provision of this 3421 chapter, a rule adopted pursuant to this chapter, or a final 3422 order of the division. The term willfully and knowingly means 3423 that the division informed the officer or board member that his 3424 or her action or intended action violates this chapter, a rule 3425 adopted under this chapter, or a final order of the division, 3426 and that the officer or board member refused to comply with the 3427 requirements of this chapter, a rule adopted under this chapter, 3428 or a final order of the division. The division, prior to 3429 initiating formal agency action under chapter 120, shall afford 3430 the officer or board member an opportunity to voluntarily comply 3431 with this chapter, a rule adopted under this chapter, or a final 3432 order of the division. An officer or board member who complies 3433 within 10 days is not subject to a civil penalty. A penalty may 3434 be imposed on the basis of each day of continuing violation, but 3435 in no event shall the penalty for any offense exceed $5,000. The 3436 division shall adopt, by rule, penalty guidelines applicable to 3437 possible violations or to categories of violations of this 3438 chapter or rules adopted by the division. The guidelines must 3439 specify a meaningful range of civil penalties for each such 3440 violation of the statute and rules and must be based upon the 3441 harm caused by the violation, upon the repetition of the 3442 violation, and upon such other factors deemed relevant by the 3443 division. For example, the division may consider whether the 3444 violations were committed by a developer or owner-controlled 3445 association, the size of the association, and other factors. The 3446 guidelines must designate the possible mitigating or aggravating 3447 circumstances that justify a departure from the range of 3448 penalties provided by the rules. It is the legislative intent 3449 that minor violations be distinguished from those which endanger 3450 the health, safety, or welfare of the cooperative residents or 3451 other persons and that such guidelines provide reasonable and 3452 meaningful notice to the public of likely penalties that may be 3453 imposed for proscribed conduct. This subsection does not limit 3454 the ability of the division to informally dispose of 3455 administrative actions or complaints by stipulation, agreed 3456 settlement, or consent order. All amounts collected shall be 3457 deposited with the Chief Financial Officer to the credit of the 3458 Division of Florida Condominiums, Timeshares, and Mobile Homes 3459 Trust Fund. If a developer fails to pay the civil penalty, the 3460 division shall thereupon issue an order directing that such 3461 developer cease and desist from further operation until such 3462 time as the civil penalty is paid or may pursue enforcement of 3463 the penalty in a court of competent jurisdiction. If an 3464 association fails to pay the civil penalty, the division shall 3465 thereupon pursue enforcement in a court of competent 3466 jurisdiction, and the order imposing the civil penalty or the 3467 cease and desist order shall not become effective until 20 days 3468 after the date of such order. Any action commenced by the 3469 division shall be brought in the county in which the division 3470 has its executive offices or in the county where the violation 3471 occurred. 3472 (e)The division may prepare and disseminate a prospectus 3473 and other information to assist prospective owners, purchasers, 3474 lessees, and developers of residential cooperatives in assessing 3475 the rights, privileges, and duties pertaining thereto. 3476 (f)The division has authority to adopt rules pursuant to 3477 ss. 120.536(1) and 120.54 to implement and enforce the 3478 provisions of this chapter. 3479 (g)The division shall establish procedures for providing 3480 notice to an association when the division is considering the 3481 issuance of a declaratory statement with respect to the 3482 cooperative documents governing such cooperative community. 3483 (h)The division shall furnish each association which pays 3484 the fees required by paragraph (2)(a) a copy of this act, 3485 subsequent changes to this act on an annual basis, an amended 3486 version of this act as it becomes available from the Secretary 3487 of States office on a biennial basis, and the rules adopted 3488 thereto on an annual basis. 3489 (i)The division shall annually provide each association 3490 with a summary of declaratory statements and formal legal 3491 opinions relating to the operations of cooperatives which were 3492 rendered by the division during the previous year. 3493 (j)The division shall adopt uniform accounting principles, 3494 policies, and standards to be used by all associations in the 3495 preparation and presentation of all financial statements 3496 required by this chapter. The principles, policies, and 3497 standards shall take into consideration the size of the 3498 association and the total revenue collected by the association. 3499 (k)The division shall provide training and educational 3500 programs for cooperative association board members and unit 3501 owners. The training may, in the divisions discretion, include 3502 web-based electronic media and live training and seminars in 3503 various locations throughout the state. The division may review 3504 and approve education and training programs for board members 3505 and unit owners offered by providers and shall maintain a 3506 current list of approved programs and providers and make such 3507 list available to board members and unit owners in a reasonable 3508 and cost-effective manner. 3509 (l)The division shall maintain a toll-free telephone 3510 number accessible to cooperative unit owners. 3511 (m)When a complaint is made to the division, the division 3512 shall conduct its inquiry with reasonable dispatch and with due 3513 regard to the interests of the affected parties. Within 30 days 3514 after receipt of a complaint, the division shall acknowledge the 3515 complaint in writing and notify the complainant whether the 3516 complaint is within the jurisdiction of the division and whether 3517 additional information is needed by the division from the 3518 complainant. The division shall conduct its investigation and 3519 shall, within 90 days after receipt of the original complaint or 3520 timely requested additional information, take action upon the 3521 complaint. However, the failure to complete the investigation 3522 within 90 days does not prevent the division from continuing the 3523 investigation, accepting or considering evidence obtained or 3524 received after 90 days, or taking administrative action if 3525 reasonable cause exists to believe that a violation of this 3526 chapter or a rule of the division has occurred. If an 3527 investigation is not completed within the time limits 3528 established in this paragraph, the division shall, on a monthly 3529 basis, notify the complainant in writing of the status of the 3530 investigation. When reporting its action to the complainant, the 3531 division shall inform the complainant of any right to a hearing 3532 pursuant to ss. 120.569 and 120.57. 3533 (n)The division shall develop a program to certify both 3534 volunteer and paid mediators to provide mediation of cooperative 3535 disputes. The division shall provide, upon request, a list of 3536 such mediators to any association, unit owner, or other 3537 participant in arbitration proceedings under s. 718.1255 3538 requesting a copy of the list. The division shall include on the 3539 list of voluntary mediators only persons who have received at 3540 least 20 hours of training in mediation techniques or have 3541 mediated at least 20 disputes. In order to become initially 3542 certified by the division, paid mediators must be certified by 3543 the Supreme Court to mediate court cases in county or circuit 3544 courts. However, the division may adopt, by rule, additional 3545 factors for the certification of paid mediators, which factors 3546 must be related to experience, education, or background. Any 3547 person initially certified as a paid mediator by the division 3548 must, in order to continue to be certified, comply with the 3549 factors or requirements imposed by rules adopted by the 3550 division. 3551 (2) 3552 (c)A cooperative association shall create and maintain an 3553 online account with the division, as required in subsection (3). 3554 (3)On or before October 1, 2025, all cooperative 3555 associations shall create and maintain an online account with 3556 the division and provide information requested by the division 3557 in an electronic format determined by the division. The division 3558 shall adopt rules to implement this subsection. The division may 3559 require cooperative associations to provide such information no 3560 more than once per year, except that the division may require 3561 cooperative associations to update their contact information in 3562 paragraph (a) within 30 days after any change. The division 3563 shall provide a cooperative association at least a 45-day notice 3564 of any requirement to provide any required information after the 3565 cooperative association creates an online account. The 3566 information that the division may require associations to 3567 provide is limited to: 3568 (a)The contact information for the association that 3569 includes all of the following: 3570 1.The name of the association. 3571 2. The physical address of the cooperative property. 3572 3.The mailing address and county of the association. 3573 4.The e-mail address and telephone number for the 3574 association. 3575 5.The name and board title for each member of the 3576 associations board. 3577 6.The name and contact information of the associations 3578 community association manager or community association 3579 management firm, if applicable. 3580 7.The hyperlink or website address of the associations 3581 website, if applicable. 3582 (b)The total number of buildings and for each building in 3583 the association: 3584 1.The total number of stories of each building, including 3585 both habitable and uninhabitable stories. 3586 2.The total number of units. 3587 3.The age of each building based on the certificate of 3588 occupancy. 3589 4.Any construction commenced on the common elements within 3590 the previous calendar year. 3591 (c)The associations assessments, including the: 3592 1.Amount of assessment or special assessment by unit type, 3593 including reserves. 3594 2.Purpose of the assessment or special assessment. 3595 3.Name of the financial institution or institutions with 3596 which the association maintains accounts. 3597 (d)A copy of any structural integrity reserve study and 3598 any associated materials requested by the department. The 3599 association must provide such materials within 5 business days 3600 after such request, in a manner prescribed by the department. 3601 (a)On or before January 1, 2023, cooperative associations 3602 existing on or before July 1, 2022, must provide the following 3603 information to the division in writing, by e-mail, United States 3604 Postal Service, commercial delivery service, or hand delivery, 3605 at a physical address or e-mail address provided by the division 3606 and on a form posted on the divisions website: 3607 1.The number of buildings on the cooperative property that 3608 are three stories or higher in height. 3609 2.The total number of units in all such buildings. 3610 3.The addresses of all such buildings. 3611 4.The counties in which all such buildings are located. 3612 (b)The division must compile a list of the number of 3613 buildings on cooperative property that are three stories or 3614 higher in height, which is searchable by county, and must post 3615 the list on the divisions website. This list must include all 3616 of the following information: 3617 1.The name of each association with buildings on the 3618 cooperative property that are three stories or higher in height. 3619 2.The number of such buildings on each associations 3620 property. 3621 3.The addresses of all such buildings. 3622 4.The counties in which all such buildings are located. 3623 (c)An association must provide an update in writing to the 3624 division if there are any changes to the information in the list 3625 under paragraph (b) within 6 months after the change. 3626 Section 14.Paragraph (d) of subsection (1) and paragraphs 3627 (c) and (d) of subsection (2) of section 719.503, Florida 3628 Statutes, are amended, to read: 3629 719.503Disclosure prior to sale. 3630 (1)DEVELOPER DISCLOSURE. 3631 (d)Milestone inspection, turnover inspection report, or 3632 structural integrity reserve study.If the association is 3633 required to have completed a milestone inspection as described 3634 in s. 553.899, a turnover inspection report for a turnover 3635 inspection performed on or after July 1, 2023, or a structural 3636 integrity reserve study, and the association has not completed 3637 the milestone inspection, the turnover inspection report, or the 3638 structural integrity reserve study, each contract entered into 3639 after December 31, 2024, for the sale of a residential unit 3640 shall contain in conspicuous type a statement indicating that 3641 the association is required to have a milestone inspection, a 3642 turnover inspection report, or a structural integrity reserve 3643 study and has not completed such inspection, report, or study, 3644 as appropriate. If the association is not required to have a 3645 milestone inspection as described in s. 553.899 or a structural 3646 integrity reserve study, each contract entered into after 3647 December 31, 2024, for the sale of a residential unit shall 3648 contain in conspicuous type a statement indicating that the 3649 association is not required to have a milestone inspection or a 3650 structural integrity reserve study, as appropriate. If the 3651 association has completed a milestone inspection as described in 3652 s. 553.899, a turnover inspection report for a turnover 3653 inspection performed on or after July 1, 2023, or a structural 3654 integrity reserve study, each contract entered into after 3655 December 31, 2024, for the sale of a residential unit shall 3656 contain in conspicuous type: 3657 1.A clause which states: THE BUYER HEREBY ACKNOWLEDGES 3658 THAT BUYER HAS BEEN PROVIDED A CURRENT COPY OF THE INSPECTOR 3659 PREPARED SUMMARY OF THE MILESTONE INSPECTION REPORT AS DESCRIBED 3660 IN SECTION 553.899, FLORIDA STATUTES, IF APPLICABLE; A COPY OF 3661 THE TURNOVER INSPECTION REPORT DESCRIBED IN SECTION 3662 719.301(4)(p) AND (q), FLORIDA STATUTES, IF APPLICABLE; AND A 3663 COPY OF THE ASSOCIATIONS MOST RECENT STRUCTURAL INTEGRITY 3664 RESERVE STUDY DESCRIBED IN SECTIONS 719.103(24) AND 3665 719.106(1)(k), FLORIDA STATUTES, IF APPLICABLE, MORE THAN 15 3666 DAYS, EXCLUDING SATURDAYS, SUNDAYS, AND LEGAL HOLIDAYS, BEFORE 3667 PRIOR TO EXECUTION OF THIS CONTRACT; and 3668 2.A clause which states: THIS AGREEMENT IS VOIDABLE BY 3669 BUYER BY DELIVERING WRITTEN NOTICE OF THE BUYERS INTENTION TO 3670 CANCEL WITHIN 15 DAYS, EXCLUDING SATURDAYS, SUNDAYS, AND LEGAL 3671 HOLIDAYS, AFTER THE DATE OF EXECUTION OF THIS AGREEMENT BY THE 3672 BUYER AND RECEIPT BY BUYER OF A CURRENT COPY OF THE INSPECTOR 3673 PREPARED SUMMARY OF THE MILESTONE INSPECTION REPORT AS DESCRIBED 3674 IN SECTION 553.899, FLORIDA STATUTES, IF APPLICABLE; A COPY OF 3675 THE TURNOVER INSPECTION REPORT DESCRIBED IN SECTION 3676 719.301(4)(p) AND (q), FLORIDA STATUTES, IF APPLICABLE; AND A 3677 COPY OF THE ASSOCIATIONS MOST RECENT STRUCTURAL INTEGRITY 3678 RESERVE STUDY DESCRIBED IN SECTIONS 719.103(24) AND 3679 719.106(1)(k), FLORIDA STATUTES, IF APPLICABLE. ANY PURPORTED 3680 WAIVER OF THESE VOIDABILITY RIGHTS SHALL BE OF NO EFFECT. BUYER 3681 MAY EXTEND THE TIME FOR CLOSING FOR A PERIOD OF NOT MORE THAN 15 3682 DAYS, EXCLUDING SATURDAYS, SUNDAYS, AND LEGAL HOLIDAYS, AFTER 3683 THE BUYER RECEIVES A CURRENT COPY OF THE INSPECTOR-PREPARED 3684 SUMMARY OF THE MILESTONE INSPECTION REPORT AS DESCRIBED IN 3685 SECTION 553.899, FLORIDA STATUTES; A COPY OF THE TURNOVER 3686 INSPECTION REPORT DESCRIBED IN SECTION 719.301(4)(p) AND (q), 3687 FLORIDA STATUTES; OR A COPY OF THE ASSOCIATIONS MOST RECENT 3688 STRUCTURAL INTEGRITY RESERVE STUDY DESCRIBED IN SECTIONS 3689 719.103(24) AND 719.106(1)(k), FLORIDA STATUTES, IF REQUESTED IN 3690 WRITING. BUYERS RIGHT TO VOID THIS AGREEMENT SHALL TERMINATE AT 3691 CLOSING. 3692 3693 A contract that does not conform to the requirements of this 3694 paragraph is voidable at the option of the purchaser before 3695 prior to closing. 3696 (2)NONDEVELOPER DISCLOSURE. 3697 (c)Each contract entered into after July 1, 1992, for the 3698 resale of an interest in a cooperative shall contain in 3699 conspicuous type either: 3700 1.A clause which states: THE BUYER HEREBY ACKNOWLEDGES 3701 THAT BUYER HAS BEEN PROVIDED A CURRENT COPY OF THE ARTICLES OF 3702 INCORPORATION OF THE ASSOCIATION, BYLAWS, RULES OF THE 3703 ASSOCIATION, AND THE QUESTION AND ANSWER SHEET MORE THAN 7 3 3704 DAYS, EXCLUDING SATURDAYS, SUNDAYS, AND LEGAL HOLIDAYS, BEFORE 3705 PRIOR TO EXECUTION OF THIS CONTRACT; or 3706 2.A clause which states: THIS AGREEMENT IS VOIDABLE BY 3707 BUYER BY DELIVERING WRITTEN NOTICE OF THE BUYERS INTENTION TO 3708 CANCEL WITHIN 7 3 DAYS, EXCLUDING SATURDAYS, SUNDAYS, AND LEGAL 3709 HOLIDAYS, AFTER THE DATE OF EXECUTION OF THIS AGREEMENT BY THE 3710 BUYER AND RECEIPT BY BUYER OF A CURRENT COPY OF THE ARTICLES OF 3711 INCORPORATION, BYLAWS, AND RULES OF THE ASSOCIATION, AND 3712 QUESTION AND ANSWER SHEET, IF SO REQUESTED IN WRITING. ANY 3713 PURPORTED WAIVER OF THESE VOIDABILITY RIGHTS SHALL BE OF NO 3714 EFFECT. BUYER MAY EXTEND THE TIME FOR CLOSING FOR A PERIOD OF 3715 NOT MORE THAN 7 3 DAYS, EXCLUDING SATURDAYS, SUNDAYS, AND LEGAL 3716 HOLIDAYS, AFTER THE BUYER RECEIVES THE ARTICLES OF 3717 INCORPORATION, BYLAWS, RULES, AND QUESTION AND ANSWER SHEET, IF 3718 REQUESTED IN WRITING. BUYERS RIGHT TO VOID THIS AGREEMENT SHALL 3719 TERMINATE AT CLOSING. 3720 3721 A contract that does not conform to the requirements of this 3722 paragraph is voidable at the option of the purchaser before 3723 prior to closing. 3724 (d)If the association is required to have completed a 3725 milestone inspection as described in s. 553.899, a turnover 3726 inspection report for a turnover inspection performed on or 3727 after July 1, 2023, or a structural integrity reserve study, and 3728 the association has not completed the milestone inspection, the 3729 turnover inspection report, or the structural integrity reserve 3730 study, each contract entered into after December 31, 2024, for 3731 the sale of a residential unit shall contain in conspicuous type 3732 a statement indicating that the association is required to have 3733 a milestone inspection, a turnover inspection report, or a 3734 structural integrity reserve study and has not completed such 3735 inspection, report, or study, as appropriate. If the association 3736 is not required to have a milestone inspection as described in 3737 s. 553.899 or a structural integrity reserve study, each 3738 contract entered into after December 31, 2024, for the sale of a 3739 residential unit shall contain in conspicuous type a statement 3740 indicating that the association is not required to have a 3741 milestone inspection or a structural integrity reserve study, as 3742 appropriate. If the association has completed a milestone 3743 inspection as described in s. 553.899, a turnover inspection 3744 report for a turnover inspection performed on or after July 1, 3745 2023, or a structural integrity reserve study, each contract 3746 entered into after December 31, 2024, for the resale of a 3747 residential unit shall contain in conspicuous type: 3748 1.A clause which states: THE BUYER HEREBY ACKNOWLEDGES 3749 THAT BUYER HAS BEEN PROVIDED A CURRENT COPY OF THE INSPECTOR 3750 PREPARED SUMMARY OF THE MILESTONE INSPECTION REPORT AS DESCRIBED 3751 IN SECTION 553.899, FLORIDA STATUTES, IF APPLICABLE; A COPY OF 3752 THE TURNOVER INSPECTION REPORT DESCRIBED IN SECTION 3753 719.301(4)(p) AND (q), FLORIDA STATUTES, IF APPLICABLE; AND A 3754 COPY OF THE ASSOCIATIONS MOST RECENT STRUCTURAL INTEGRITY 3755 RESERVE STUDY DESCRIBED IN SECTIONS 719.103(24) AND 3756 719.106(1)(k), FLORIDA STATUTES, IF APPLICABLE, MORE THAN 7 3 3757 DAYS, EXCLUDING SATURDAYS, SUNDAYS, AND LEGAL HOLIDAYS, BEFORE 3758 PRIOR TO EXECUTION OF THIS CONTRACT; and 3759 2.A clause which states: THIS AGREEMENT IS VOIDABLE BY 3760 BUYER BY DELIVERING WRITTEN NOTICE OF THE BUYERS INTENTION TO 3761 CANCEL WITHIN 7 3 DAYS, EXCLUDING SATURDAYS, SUNDAYS, AND LEGAL 3762 HOLIDAYS, AFTER THE DATE OF EXECUTION OF THIS AGREEMENT BY THE 3763 BUYER AND RECEIPT BY BUYER OF A CURRENT COPY OF THE INSPECTOR 3764 PREPARED SUMMARY OF THE MILESTONE INSPECTION REPORT AS DESCRIBED 3765 IN SECTION 553.899, FLORIDA STATUTES, IF APPLICABLE; A COPY OF 3766 THE TURNOVER INSPECTION REPORT DESCRIBED IN SECTION 3767 719.301(4)(p) AND (q), FLORIDA STATUTES, IF APPLICABLE; AND A 3768 COPY OF THE ASSOCIATIONS MOST RECENT STRUCTURAL INTEGRITY 3769 RESERVE STUDY DESCRIBED IN SECTIONS 719.103(24) AND 3770 719.106(1)(k), FLORIDA STATUTES, IF APPLICABLE. ANY PURPORTED 3771 WAIVER OF THESE VOIDABILITY RIGHTS SHALL BE OF NO EFFECT. BUYER 3772 MAY EXTEND THE TIME FOR CLOSING FOR A PERIOD OF NOT MORE THAN 7 3773 3 DAYS, EXCLUDING SATURDAYS, SUNDAYS, AND LEGAL HOLIDAYS, AFTER 3774 THE BUYER RECEIVES A CURRENT COPY OF THE INSPECTOR-PREPARED 3775 SUMMARY OF THE MILESTONE INSPECTION REPORT AS DESCRIBED IN 3776 SECTION 553.899, FLORIDA STATUTES; A COPY OF THE TURNOVER 3777 INSPECTION REPORT DESCRIBED IN SECTION 719.301(4)(p) AND (q), 3778 FLORIDA STATUTES; OR A COPY OF THE ASSOCIATIONS MOST RECENT 3779 STRUCTURAL INTEGRITY RESERVE STUDY DESCRIBED IN SECTIONS 3780 719.103(24) AND 719.106(1)(k), FLORIDA STATUTES, IF REQUESTED IN 3781 WRITING. BUYERS RIGHT TO VOID THIS AGREEMENT SHALL TERMINATE AT 3782 CLOSING. 3783 3784 A contract that does not conform to the requirements of this 3785 paragraph is voidable at the option of the purchaser before 3786 prior to closing. 3787 Section 15.Subsection (3) of section 914.21, Florida 3788 Statutes, is amended to read: 3789 914.21Definitions.As used in ss. 914.22-914.24, the term: 3790 (3)Official investigation means any investigation 3791 instituted by a law enforcement agency or prosecuting officer of 3792 the state or a political subdivision of the state or the 3793 Commission on Ethics or the Division of Florida Condominiums, 3794 Timeshares, and Mobile Homes of the Department of Business and 3795 Professional Regulation. 3796 Section 16.For the 2025-2026 fiscal year, the recurring 3797 sum of $150,000 and nonrecurring sum of $100,000 are 3798 appropriated from the Professional Regulation Trust Fund to the 3799 Department of Business and Professional Regulation to contract 3800 with the University of Florida to implement s. 553.899(3)(f), 3801 Florida Statutes, as amended by this act. The unexpended balance 3802 of nonrecurring funds provided by this section shall revert and 3803 is appropriated for the same purpose for the 2026-2027 fiscal 3804 year. 3805 Section 17.For the purpose of incorporating the amendment 3806 made by this act to section 718.111, Florida Statutes, in a 3807 reference thereto, paragraph (e) of subsection (3) of section 3808 721.13, Florida Statutes, is reenacted to read: 3809 721.13Management. 3810 (3)The duties of the managing entity include, but are not 3811 limited to: 3812 (e)Arranging for an annual audit of the financial 3813 statements of the timeshare plan by a certified public 3814 accountant licensed by the Board of Accountancy of the 3815 Department of Business and Professional Regulation, in 3816 accordance with generally accepted auditing standards as defined 3817 by the rules of the Board of Accountancy of the Department of 3818 Business and Professional Regulation. The financial statements 3819 required by this section must be prepared on an accrual basis 3820 using fund accounting, and must be presented in accordance with 3821 generally accepted accounting principles. A copy of the audited 3822 financial statements must be filed with the division for review 3823 and forwarded to the board of directors and officers of the 3824 owners association, if one exists, no later than 5 calendar 3825 months after the end of the timeshare plans fiscal year. If no 3826 owners association exists, each purchaser must be notified, no 3827 later than 5 months after the end of the timeshare plans fiscal 3828 year, that a copy of the audited financial statements is 3829 available upon request to the managing entity. Notwithstanding 3830 any requirement of s. 718.111(13) or s. 719.104(4), the audited 3831 financial statements required by this section are the only 3832 annual financial reporting requirements for timeshare 3833 condominiums or timeshare cooperatives. 3834 Section 18.For the purpose of incorporating the amendment 3835 made by this act to section 718.112, Florida Statutes, in 3836 references thereto, paragraph (a) of subsection (7) and 3837 paragraph (c) of subsection (21) of section 718.504, Florida 3838 Statutes, are reenacted to read: 3839 718.504Prospectus or offering circular.Every developer of 3840 a residential condominium which contains more than 20 3841 residential units, or which is part of a group of residential 3842 condominiums which will be served by property to be used in 3843 common by unit owners of more than 20 residential units, shall 3844 prepare a prospectus or offering circular and file it with the 3845 Division of Florida Condominiums, Timeshares, and Mobile Homes 3846 prior to entering into an enforceable contract of purchase and 3847 sale of any unit or lease of a unit for more than 5 years and 3848 shall furnish a copy of the prospectus or offering circular to 3849 each buyer. In addition to the prospectus or offering circular, 3850 each buyer shall be furnished a separate page entitled 3851 Frequently Asked Questions and Answers, which shall be in 3852 accordance with a format approved by the division and a copy of 3853 the financial information required by s. 718.111. This page 3854 shall, in readable language, inform prospective purchasers 3855 regarding their voting rights and unit use restrictions, 3856 including restrictions on the leasing of a unit; shall indicate 3857 whether and in what amount the unit owners or the association is 3858 obligated to pay rent or land use fees for recreational or other 3859 commonly used facilities; shall contain a statement identifying 3860 that amount of assessment which, pursuant to the budget, would 3861 be levied upon each unit type, exclusive of any special 3862 assessments, and which shall further identify the basis upon 3863 which assessments are levied, whether monthly, quarterly, or 3864 otherwise; shall state and identify any court cases in which the 3865 association is currently a party of record in which the 3866 association may face liability in excess of $100,000; shall 3867 state whether the condominium is created within a portion of a 3868 building or within a multiple parcel building; and which shall 3869 further state whether membership in a recreational facilities 3870 association is mandatory, and if so, shall identify the fees 3871 currently charged per unit type. The division shall by rule 3872 require such other disclosure as in its judgment will assist 3873 prospective purchasers. The prospectus or offering circular may 3874 include more than one condominium, although not all such units 3875 are being offered for sale as of the date of the prospectus or 3876 offering circular. The prospectus or offering circular must 3877 contain the following information: 3878 (7)A description of the recreational and other facilities 3879 that will be used in common with other condominiums, community 3880 associations, or planned developments which require the payment 3881 of the maintenance and expenses of such facilities, directly or 3882 indirectly, by the unit owners. The description shall include, 3883 but not be limited to, the following: 3884 (a)Each building and facility committed to be built and a 3885 summary description of the structural integrity of each building 3886 for which reserves are required pursuant to s. 718.112(2)(g). 3887 3888 Descriptions shall include location, areas, capacities, numbers, 3889 volumes, or sizes and may be stated as approximations or 3890 minimums. 3891 (21)An estimated operating budget for the condominium and 3892 the association, and a schedule of the unit owners expenses 3893 shall be attached as an exhibit and shall contain the following 3894 information: 3895 (c)The estimated items of expenses of the condominium and 3896 the association, except as excluded under paragraph (b), 3897 including, but not limited to, the following items, which shall 3898 be stated as an association expense collectible by assessments 3899 or as unit owners expenses payable to persons other than the 3900 association: 3901 1.Expenses for the association and condominium: 3902 a.Administration of the association. 3903 b.Management fees. 3904 c.Maintenance. 3905 d.Rent for recreational and other commonly used 3906 facilities. 3907 e.Taxes upon association property. 3908 f.Taxes upon leased areas. 3909 g.Insurance. 3910 h.Security provisions. 3911 i.Other expenses. 3912 j.Operating capital. 3913 k.Reserves for all applicable items referenced in s. 3914 718.112(2)(g). 3915 l.Fees payable to the division. 3916 2.Expenses for a unit owner: 3917 a.Rent for the unit, if subject to a lease. 3918 b.Rent payable by the unit owner directly to the lessor or 3919 agent under any recreational lease or lease for the use of 3920 commonly used facilities, which use and payment is a mandatory 3921 condition of ownership and is not included in the common expense 3922 or assessments for common maintenance paid by the unit owners to 3923 the association. 3924 Section 19.For the purpose of incorporating the amendment 3925 made by this act to section 718.112, Florida Statutes, in 3926 references thereto, paragraph (d) of subsection (1) of section 3927 718.618, Florida Statutes, is reenacted to read: 3928 718.618Converter reserve accounts; warranties. 3929 (1)When existing improvements are converted to ownership 3930 as a residential condominium, the developer shall establish 3931 converter reserve accounts for capital expenditures and deferred 3932 maintenance, or give warranties as provided by subsection (6), 3933 or post a surety bond as provided by subsection (7). The 3934 developer shall fund the converter reserve accounts in amounts 3935 calculated as follows: 3936 (d)In addition to establishing the reserve accounts 3937 specified above, the developer shall establish those other 3938 reserve accounts required by s. 718.112(2)(f), and shall fund 3939 those accounts in accordance with the formula provided therein. 3940 The vote to waive or reduce the funding or reserves required by 3941 s. 718.112(2)(f) does not affect or negate the obligations 3942 arising under this section. 3943 Section 20.For the purpose of incorporating the amendment 3944 made by this act to sections 718.111, 718.112, and 718.503, 3945 Florida Statutes, in references thereto, subsections (1) and (3) 3946 of section 718.706, Florida Statutes, are reenacted to read: 3947 718.706Specific provisions pertaining to offering of units 3948 by a bulk assignee or bulk buyer. 3949 (1)Before offering more than seven units in a single 3950 condominium for sale or for lease for a term exceeding 5 years, 3951 a bulk assignee or a bulk buyer must file the following 3952 documents with the division and provide such documents to a 3953 prospective purchaser or tenant: 3954 (a)An updated prospectus or offering circular, or a 3955 supplement to the prospectus or offering circular, filed by the 3956 original developer prepared in accordance with s. 718.504, which 3957 must include the form of contract for sale and for lease in 3958 compliance with s. 718.503(2); 3959 (b)An updated Frequently Asked Questions and Answers 3960 sheet; 3961 (c)The executed escrow agreement if required under s. 3962 718.202; and 3963 (d)The financial information required by s. 718.111(13). 3964 However, if a financial information report did not exist before 3965 the acquisition of title by the bulk assignee or bulk buyer, and 3966 if accounting records that permit preparation of the required 3967 financial information report for that period cannot be obtained 3968 despite good faith efforts by the bulk assignee or the bulk 3969 buyer, the bulk assignee or bulk buyer is excused from the 3970 requirement of this paragraph. However, the bulk assignee or 3971 bulk buyer must include in the purchase contract the following 3972 statement in conspicuous type: 3973 3974 ALL OR A PORTION OF THE FINANCIAL INFORMATION REPORT 3975 REQUIRED UNDER S. 718.111(13) FOR THE TIME PERIOD 3976 BEFORE THE SELLERS ACQUISITION OF THE UNIT IS NOT 3977 AVAILABLE OR CANNOT BE OBTAINED DESPITE THE GOOD FAITH 3978 EFFORTS OF THE SELLER. 3979 3980 (3)A bulk assignee, while in control of the board of 3981 administration of the association, may not authorize, on behalf 3982 of the association: 3983 (a)The waiver of reserves or the reduction of funding of 3984 the reserves pursuant to s. 718.112(2)(f)2., unless approved by 3985 a majority of the voting interests not controlled by the 3986 developer, bulk assignee, and bulk buyer; or 3987 (b)The use of reserve expenditures for other purposes 3988 pursuant to s. 718.112(2)(f)3., unless approved by a majority of 3989 the voting interests not controlled by the developer, bulk 3990 assignee, and bulk buyer. 3991 Section 21.For the purpose of incorporating the amendment 3992 made by this act to section 719.106, Florida Statutes, in a 3993 reference thereto, subsection (24) of section 719.103, Florida 3994 Statutes, is reenacted to read: 3995 719.103Definitions.As used in this chapter: 3996 (24)Structural integrity reserve study means a study of 3997 the reserve funds required for future major repairs and 3998 replacement of the cooperative property performed as required 3999 under s. 719.106(1)(k). 4000 Section 22.For the purpose of incorporating the amendment 4001 made by this act to section 719.106, Florida Statutes, in 4002 references thereto, paragraph (a) of subsection (7) and 4003 paragraph (c) of subsection (20) of section 719.504, Florida 4004 Statutes, are reenacted to read: 4005 719.504Prospectus or offering circular.Every developer of 4006 a residential cooperative which contains more than 20 4007 residential units, or which is part of a group of residential 4008 cooperatives which will be served by property to be used in 4009 common by unit owners of more than 20 residential units, shall 4010 prepare a prospectus or offering circular and file it with the 4011 Division of Florida Condominiums, Timeshares, and Mobile Homes 4012 prior to entering into an enforceable contract of purchase and 4013 sale of any unit or lease of a unit for more than 5 years and 4014 shall furnish a copy of the prospectus or offering circular to 4015 each buyer. In addition to the prospectus or offering circular, 4016 each buyer shall be furnished a separate page entitled 4017 Frequently Asked Questions and Answers, which must be in 4018 accordance with a format approved by the division. This page 4019 must, in readable language: inform prospective purchasers 4020 regarding their voting rights and unit use restrictions, 4021 including restrictions on the leasing of a unit; indicate 4022 whether and in what amount the unit owners or the association is 4023 obligated to pay rent or land use fees for recreational or other 4024 commonly used facilities; contain a statement identifying that 4025 amount of assessment which, pursuant to the budget, would be 4026 levied upon each unit type, exclusive of any special 4027 assessments, and which identifies the basis upon which 4028 assessments are levied, whether monthly, quarterly, or 4029 otherwise; state and identify any court cases in which the 4030 association is currently a party of record in which the 4031 association may face liability in excess of $100,000; and state 4032 whether membership in a recreational facilities association is 4033 mandatory and, if so, identify the fees currently charged per 4034 unit type. The division shall by rule require such other 4035 disclosure as in its judgment will assist prospective 4036 purchasers. The prospectus or offering circular may include more 4037 than one cooperative, although not all such units are being 4038 offered for sale as of the date of the prospectus or offering 4039 circular. The prospectus or offering circular must contain the 4040 following information: 4041 (7)A description of the recreational and other facilities 4042 that will be used in common with other cooperatives, community 4043 associations, or planned developments which require the payment 4044 of the maintenance and expenses of such facilities, directly or 4045 indirectly, by the unit owners. The description shall include, 4046 but not be limited to, the following: 4047 (a)Each building and facility committed to be built and a 4048 summary description of the structural integrity of each building 4049 for which reserves are required pursuant to s. 719.106(1)(k). 4050 4051 Descriptions shall include location, areas, capacities, numbers, 4052 volumes, or sizes and may be stated as approximations or 4053 minimums. 4054 (20)An estimated operating budget for the cooperative and 4055 the association, and a schedule of the unit owners expenses 4056 shall be attached as an exhibit and shall contain the following 4057 information: 4058 (c)The estimated items of expenses of the cooperative and 4059 the association, except as excluded under paragraph (b), 4060 including, but not limited to, the following items, which shall 4061 be stated as an association expense collectible by assessments 4062 or as unit owners expenses payable to persons other than the 4063 association: 4064 1.Expenses for the association and cooperative: 4065 a.Administration of the association. 4066 b.Management fees. 4067 c.Maintenance. 4068 d.Rent for recreational and other commonly used areas. 4069 e.Taxes upon association property. 4070 f.Taxes upon leased areas. 4071 g.Insurance. 4072 h.Security provisions. 4073 i.Other expenses. 4074 j.Operating capital. 4075 k.Reserves for all applicable items referenced in s. 4076 719.106(1)(k). 4077 l.Fee payable to the division. 4078 2.Expenses for a unit owner: 4079 a.Rent for the unit, if subject to a lease. 4080 b.Rent payable by the unit owner directly to the lessor or 4081 agent under any recreational lease or lease for the use of 4082 commonly used areas, which use and payment are a mandatory 4083 condition of ownership and are not included in the common 4084 expense or assessments for common maintenance paid by the unit 4085 owners to the association. 4086 Section 23.Except as otherwise provided in this act, this 4087 act shall take effect July 1, 2025.
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