Bill Text: FL S0154 | 2023 | Regular Session | Comm Sub

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Condominium and Cooperative Associations

Spectrum: Bipartisan Bill

Status: (Passed) 2023-06-13 - Chapter No. 2023-203, companion bill(s) passed, see CS/CS/CS/HB 799 (Ch. 2023-175) [S0154 Detail]

Download: Florida-2023-S0154-Comm_Sub.html

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       Florida Senate - 2023                              CS for SB 154
       
       
        
       By the Committee on Regulated Industries; and Senator Bradley
       
       
       
       
       
       580-02150-23                                           2023154c1
    1                        A bill to be entitled                      
    2         An act relating to condominium and cooperative
    3         associations; amending s. 468.4334, F.S.; revising the
    4         circumstances under which community association
    5         managers or management firms must comply with a
    6         specified provision; amending s. 553.899, F.S.;
    7         revising legislative findings; revising the definition
    8         of the terms “milestone inspection” and “substantial
    9         structural deterioration”; revising who must have
   10         milestone inspections performed for buildings;
   11         authorizing local enforcement agencies to make certain
   12         determinations relating to milestone inspections after
   13         a building reaches a specified age; revising costs
   14         that condominium and cooperative associations are
   15         responsible for; requiring certain parties to obtain
   16         milestone inspection reports; authorizing local
   17         enforcement agencies to extend deadlines for milestone
   18         inspections under certain circumstances; revising
   19         requirements relating to written notice of required
   20         inspections; requiring architects or engineers
   21         performing milestone inspections to submit a specified
   22         progress report to a local enforcement agency within a
   23         specified timeframe under certain circumstances;
   24         specifying that associations must distribute copies of
   25         certain inspection reports within a specified
   26         timeframe and in a specified manner; authorizing
   27         municipal governing bodies to adopt certain ordinances
   28         relating to association repairs; requiring the Florida
   29         Building Commission to adopt rules by a specified
   30         date; providing requirements for such rules;
   31         conforming provisions; amending s. 627.351, F.S.;
   32         revising the types of policyholders not required to
   33         purchase flood insurance as a condition for
   34         maintaining certain policies issued by the Citizens
   35         Property Insurance Corporation; amending s. 718.103,
   36         F.S.; defining the term “alternative funding method”;
   37         revising the definition of the term “structural
   38         integrity reserve study”; amending s. 718.111, F.S.;
   39         making a technical change; amending s. 718.112, F.S.;
   40         revising condominium association reserve account
   41         requirements; revising requirements relating to
   42         waiving reserve requirements or providing less
   43         reserves than required by law; revising requirements
   44         relating to using reserve funds or interest accrued on
   45         reserve funds for certain purposes; revising
   46         requirements for structural integrity reserve studies;
   47         providing applicability; conforming provisions to
   48         changes made by the act; amending s. 718.1255, F.S.;
   49         revising the definition of the term “dispute”;
   50         specifying that certain disputes are not subject to
   51         nonbinding arbitration and must be submitted to
   52         presuit mediation; amending s. 718.113, F.S.; revising
   53         requirements relating to maintenance, repair, and
   54         replacement of common elements and condominium
   55         property; amending s. 718.503, F.S.; revising the
   56         documents developers are required to provide to
   57         prospective buyers or lessees; requiring specified
   58         disclosures relating to milestone inspections and
   59         structural integrity reserve studies for certain
   60         contracts entered into after a specified date;
   61         amending s. 719.103, F.S.; revising the definition of
   62         the term “structural integrity reserve study”;
   63         amending s. 719.104, F.S.; revising rights relating to
   64         the official records of a cooperative association;
   65         providing maintenance requirements for cooperative
   66         associations; amending s. 719.106, F.S.; revising
   67         cooperative association reserve account requirements;
   68         revising requirements relating to waiving reserve
   69         requirements or providing less reserves than required
   70         by law; revising a prohibition on using reserve funds
   71         or interest accrued on reserve funds for certain
   72         purposes; revising requirements for structural
   73         integrity reserve studies; providing applicability;
   74         conforming provisions to changes made by the act;
   75         amending s. 719.503, F.S.; revising the types of
   76         documents developers are required to provide to
   77         prospective buyers and lessees; requiring specified
   78         disclosures relating to milestone inspections and
   79         structural integrity reserve studies for certain
   80         contracts entered into after a specified date;
   81         amending ss. 558.002, 718.116, and 720.3085, F.S.;
   82         conforming cross-references; reenacting s. 719.1255,
   83         F.S., relating to alternative resolution of disputes,
   84         to incorporate amendments made to s. 718.1255, F.S.,
   85         in a reference thereto; reenacting ss. 718.501(1)(f)
   86         and 719.501(1)(f), F.S., relating to the rulemaking
   87         authority of the Division of Florida Condominiums,
   88         Timeshares, and Mobile Homes of the Department of
   89         Business and Professional Regulation; providing
   90         effective dates.
   91          
   92  Be It Enacted by the Legislature of the State of Florida:
   93  
   94         Section 1. Paragraph (b) of subsection (1) of section
   95  468.4334, Florida Statutes, is amended to read:
   96         468.4334 Professional practice standards; liability.—
   97         (1)
   98         (b) If a community association manager or a community
   99  association management firm has a contract with a community
  100  association that has a building on the association’s property
  101  that is subject to s. 553.899, the community association manager
  102  or the community association management firm must comply with
  103  that section as directed by the board.
  104         Section 2. Subsections (1) through (6), paragraph (b) of
  105  subsection (7), and subsections (8), (9), (11), and (12) of
  106  section 553.899, Florida Statutes, are amended to read:
  107         553.899 Mandatory structural inspections for condominium
  108  and cooperative buildings.—
  109         (1) The Legislature finds that maintaining the structural
  110  integrity of a building throughout the life of the building its
  111  service life is of paramount importance in order to ensure that
  112  buildings are structurally sound so as to not pose a threat to
  113  the public health, safety, or welfare. As such, the Legislature
  114  finds that the imposition of a statewide structural inspection
  115  program for aging condominium and cooperative buildings in this
  116  state is necessary to ensure that such buildings are safe for
  117  continued use.
  118         (2) As used in this section, the terms:
  119         (a) “Milestone inspection” means a structural inspection of
  120  a building, including an inspection of load-bearing elements
  121  walls and the primary structural members and primary structural
  122  systems as those terms are defined in s. 627.706, by an a
  123  licensed architect licensed under chapter 481 or engineer
  124  licensed under chapter 471 authorized to practice in this state
  125  for the purposes of attesting to the life safety and adequacy of
  126  the structural components of the building and, to the extent
  127  reasonably possible, determining the general structural
  128  condition of the building as it affects the safety of such
  129  building, including a determination of any necessary
  130  maintenance, repair, or replacement of any structural component
  131  of the building. The purpose of such inspection is not to
  132  determine if the condition of an existing building is in
  133  compliance with the Florida Building Code or the firesafety
  134  code. The milestone inspection services may be provided by a
  135  team of professionals with an architect or engineer acting as a
  136  registered design professional in responsible charge with all
  137  work and reports signed and sealed by the appropriate qualified
  138  team member.
  139         (b) “Substantial structural deterioration” means
  140  substantial structural distress or substantial structural
  141  weakness that negatively affects a building’s general structural
  142  condition and integrity. The term does not include surface
  143  imperfections such as cracks, distortion, sagging, deflections,
  144  misalignment, signs of leakage, or peeling of finishes unless
  145  the licensed engineer or architect performing the phase one or
  146  phase two inspection determines that such surface imperfections
  147  are a sign of substantial structural deterioration.
  148         (3) An owner or owners of a building that is three stories
  149  or more in height that is subject, in whole or in part, to the
  150  condominium or cooperative form of ownership as a residential
  151  condominium association under chapter 718 or and a residential
  152  cooperative association under chapter 719 must have a milestone
  153  inspection performed for each building that is three stories or
  154  more in height by December 31 of the year in which the building
  155  reaches 30 years of age, based on the date the certificate of
  156  occupancy for the building was issued, and every 10 years
  157  thereafter. The local enforcement agency may determine that
  158  local circumstances, including environmental conditions such as
  159  proximity to salt water as defined in s. 379.101, require that
  160  If the building is located within 3 miles of a coastline as
  161  defined in s. 376.031, the condominium association or
  162  cooperative association must have a milestone inspection must be
  163  performed by December 31 of the year in which the building
  164  reaches 25 years of age, based on the date the certificate of
  165  occupancy for the building was issued, and every 10 years
  166  thereafter. The milestone inspection report must be arranged by
  167  a condominium or cooperative association and any owner of any
  168  portion of the building which is not subject to the condominium
  169  or cooperative form of ownership. The owner or owners of the
  170  building, including the condominium association or cooperative
  171  association, are each must arrange for the milestone inspection
  172  to be performed and is responsible for ensuring compliance with
  173  the requirements of this section. The condominium association or
  174  cooperative association is responsible for all costs associated
  175  with the milestone inspection attributable to the portions of a
  176  building which the association is responsible to maintain under
  177  the governing documents of the association. This subsection does
  178  not apply to a single-family, two-family, or three-family
  179  dwelling with three or fewer habitable stories above ground.
  180         (4) If a milestone inspection is required under this
  181  section and the building’s certificate of occupancy was issued
  182  on or before July 1, 1992, the building’s initial milestone
  183  inspection must be performed before December 31, 2024. The local
  184  enforcement agency may extend the deadline for a building’s
  185  initial milestone inspection upon a showing of good cause by the
  186  owner or owners of the building that the inspection cannot be
  187  timely completed if the owner or owners have entered into a
  188  contract with an architect or engineer to perform the milestone
  189  inspection and the inspection cannot reasonably be completed
  190  before the deadline or other circumstance to justify an
  191  extension. If the date of issuance for the certificate of
  192  occupancy is not available, the date of issuance of the
  193  building’s certificate of occupancy shall be the date of
  194  occupancy evidenced in any record of the local building
  195  official.
  196         (5) Upon determining that a building must have a milestone
  197  inspection, the local enforcement agency must provide written
  198  notice of such required inspection to the condominium
  199  association or cooperative association and to any other owner of
  200  the building by certified mail, return receipt requested.
  201         (6) Phase one of the milestone inspection must be completed
  202  within 180 days after the owner or owners of the building
  203  receive receiving the written notice under subsection (5), the
  204  condominium association or cooperative association must complete
  205  phase one of the milestone inspection. For purposes of this
  206  section, completion of phase one of the milestone inspection
  207  means the licensed engineer or architect who performed the phase
  208  one inspection submitted the inspection report by e-mail, United
  209  States Postal Service, or commercial delivery service to the
  210  local enforcement agency.
  211         (7) A milestone inspection consists of two phases:
  212         (b) A phase two of the milestone inspection must be
  213  performed if any substantial structural deterioration is
  214  identified during phase one. A phase two inspection may involve
  215  destructive or nondestructive testing at the inspector’s
  216  direction. The inspection may be as extensive or as limited as
  217  necessary to fully assess areas of structural distress in order
  218  to confirm that the building is structurally sound and safe for
  219  its intended use and to recommend a program for fully assessing
  220  and repairing distressed and damaged portions of the building.
  221  When determining testing locations, the inspector must give
  222  preference to locations that are the least disruptive and most
  223  easily repairable while still being representative of the
  224  structure. If a phase two inspection is required, within 180
  225  days after submitting a phase one inspection report the
  226  architect or engineer performing the phase two inspection must
  227  submit a phase two progress report to the local enforcement
  228  agency with a timeline for completion of the phase two
  229  inspection. An inspector who completes a phase two milestone
  230  inspection shall prepare and submit an inspection report
  231  pursuant to subsection (8).
  232         (8) Upon completion of a phase one or phase two milestone
  233  inspection, the architect or engineer who performed the
  234  inspection must submit a sealed copy of the inspection report
  235  with a separate summary of, at minimum, the material findings
  236  and recommendations in the inspection report to the condominium
  237  association or cooperative association, to any other owner of
  238  the building, and to the building official of the local
  239  government which has jurisdiction. The inspection report must,
  240  at a minimum, meet all of the following criteria:
  241         (a) Bear the seal and signature, or the electronic
  242  signature, of the licensed engineer or architect who performed
  243  the inspection.
  244         (b) Indicate the manner and type of inspection forming the
  245  basis for the inspection report.
  246         (c) Identify any substantial structural deterioration,
  247  within a reasonable professional probability based on the scope
  248  of the inspection, describe the extent of such deterioration,
  249  and identify any recommended repairs for such deterioration.
  250         (d) State whether unsafe or dangerous conditions, as those
  251  terms are defined in the Florida Building Code, were observed.
  252         (e) Recommend any remedial or preventive repair for any
  253  items that are damaged but are not substantial structural
  254  deterioration.
  255         (f) Identify and describe any items requiring further
  256  inspection.
  257         (9) Within 30 days after receiving the applicable
  258  inspection report, the condominium or cooperative association
  259  must distribute a copy of the inspector-prepared summary of the
  260  inspection report to each condominium unit owner or cooperative
  261  unit owner, regardless of the findings or recommendations in the
  262  report, by United States mail or personal delivery at the
  263  mailing address, property address, or any other address of the
  264  owner provided to fulfill the association’s notice requirements
  265  under chapter 718 or chapter 719, as applicable, and by
  266  electronic transmission to the e-mail address or facsimile
  267  number provided to fulfill the association’s notice requirements
  268  to unit owners who previously consented to receive notice by
  269  electronic transmission; must post a copy of the inspector
  270  prepared summary in a conspicuous place on the condominium or
  271  cooperative property; and must publish the full report and
  272  inspector-prepared summary on the association’s website, if the
  273  association is required to have a website.
  274         (11) A board of county commissioners or municipal governing
  275  body may adopt an ordinance requiring that a condominium or
  276  cooperative association and any other owner that is subject to
  277  this section schedule or commence repairs for substantial
  278  structural deterioration within a specified timeframe after the
  279  local enforcement agency receives a phase two inspection report;
  280  however, such repairs must be commenced within 365 days after
  281  receiving such report. If an owner of the building association
  282  fails to submit proof to the local enforcement agency that
  283  repairs have been scheduled or have commenced for substantial
  284  structural deterioration identified in a phase two inspection
  285  report within the required timeframe, the local enforcement
  286  agency must review and determine if the building is unsafe for
  287  human occupancy.
  288         (12) By December 31, 2024, the Florida Building Commission
  289  shall adopt rules pursuant to ss. 120.536(1) and 120.54 to
  290  establish a building safety program for the implementation of
  291  this section within the Florida Building Code: Existing
  292  Building. The building inspection program must, at minimum,
  293  include inspection criteria, testing protocols, standardized
  294  inspection and reporting forms that are adaptable to an
  295  electronic format, and record maintenance requirements for the
  296  local authority review the milestone inspection requirements
  297  under this section and make recommendations, if any, to the
  298  Legislature to ensure inspections are sufficient to determine
  299  the structural integrity of a building. The commission must
  300  provide a written report of any recommendations to the Governor,
  301  the President of the Senate, and the Speaker of the House of
  302  Representatives by December 31, 2022.
  303         Section 3. Paragraph (aa) of subsection (6) of section
  304  627.351, Florida Statutes, is amended to read:
  305         627.351 Insurance risk apportionment plans.—
  306         (6) CITIZENS PROPERTY INSURANCE CORPORATION.—
  307         (aa) Except as otherwise provided in this paragraph, the
  308  corporation shall require the securing and maintaining of flood
  309  insurance as a condition of coverage of a personal lines
  310  residential risk. The insured or applicant must execute a form
  311  approved by the office affirming that flood insurance is not
  312  provided by the corporation and that if flood insurance is not
  313  secured by the applicant or insured from an insurer other than
  314  the corporation and in addition to coverage by the corporation,
  315  the risk will not be eligible for coverage by the corporation.
  316  The corporation may deny coverage of a personal lines
  317  residential risk to an applicant or insured who refuses to
  318  secure and maintain flood insurance. The requirement to purchase
  319  flood insurance shall be implemented as follows:
  320         1. Except as provided in subparagraphs 2. and 3., all
  321  personal lines residential policyholders must have flood
  322  coverage in place for policies effective on or after:
  323         a. January 1, 2024, for property valued at $600,000 or
  324  more.
  325         b. January 1, 2025, for property valued at $500,000 or
  326  more.
  327         c. January 1, 2026, for property valued at $400,000 or
  328  more.
  329         d. January 1, 2027, for all other personal lines
  330  residential property insured by the corporation.
  331         2. All personal lines residential policyholders whose
  332  property insured by the corporation is located within the
  333  special flood hazard area defined by the Federal Emergency
  334  Management Agency must have flood coverage in place:
  335         a. At the time of initial policy issuance for all new
  336  personal lines residential policies issued by the corporation on
  337  or after April 1, 2023.
  338         b. By the time of the policy renewal for all personal lines
  339  residential policies renewing on or after July 1, 2023.
  340         3. Policyholders whose policies issued by the corporation
  341  do not provide coverage for the peril of wind are not required
  342  to purchase flood insurance as a condition for maintaining the
  343  following their policies issued by with the corporation:
  344         a. Policies that do not provide coverage for the peril of
  345  wind.
  346         b. Policies that provide coverage under a condominium unit
  347  owners form if the risk insured by the policy is:
  348         (I) Insured under a master policy that provides flood
  349  coverage for personal property within the unit; or
  350         (II) Located within an area designated by the Federal
  351  Emergency Management Agency:
  352         (A) As a V-zone special flood hazard area, and the risk is
  353  on the fifth floor or above;
  354         (B) As an A-zone special flood hazard area, and the risk is
  355  on the third floor or above; or
  356         (C) As being outside of a special flood hazard area, and
  357  the risk is on the second floor or above.
  358  
  359  The flood insurance required under this paragraph must meet, at
  360  a minimum, the coverage available from the National Flood
  361  Insurance Program or the requirements of subparagraphs s.
  362  627.715(1)(a)1., 2., and 3.
  363         Section 4. Present subsections (1) through (31) of section
  364  718.103, Florida Statutes, are redesignated as subsections (2)
  365  through (32), respectively, a new subsection (1) is added to
  366  that section, and present subsection (25) of that section is
  367  amended, to read:
  368         718.103 Definitions.—As used in this chapter, the term:
  369         (1) “Alternative funding method” means a method approved by
  370  the division for funding the capital expenditures and deferred
  371  maintenance obligations for a multicondominium association which
  372  may reasonably be expected to fully satisfy the association’s
  373  reserve funding obligations, including, but not limited to, the
  374  allocation of funds in the annual operating budget.
  375         (26)(25) “Structural integrity reserve study” means a study
  376  of the reserve funds required for future major repairs and
  377  replacement of the condominium property performed as required
  378  under s. 718.112(2)(g) common areas based on a visual inspection
  379  of the common areas. A structural integrity reserve study may be
  380  performed by any person qualified to perform such study.
  381  However, the visual inspection portion of the structural
  382  integrity reserve study must be performed by an engineer
  383  licensed under chapter 471 or an architect licensed under
  384  chapter 481. At a minimum, a structural integrity reserve study
  385  must identify the common areas being visually inspected, state
  386  the estimated remaining useful life and the estimated
  387  replacement cost or deferred maintenance expense of the common
  388  areas being visually inspected, and provide a recommended annual
  389  reserve amount that achieves the estimated replacement cost or
  390  deferred maintenance expense of each common area being visually
  391  inspected by the end of the estimated remaining useful life of
  392  each common area.
  393         Section 5. Paragraph (c) of subsection (12) of section
  394  718.111, Florida Statutes, is amended to read:
  395         718.111 The association.—
  396         (12) OFFICIAL RECORDS.—
  397         (c)1. The official records of the association are open to
  398  inspection by any association member and any person authorized
  399  by an association member as a or the authorized representative
  400  of such member at all reasonable times. The right to inspect the
  401  records includes the right to make or obtain copies, at the
  402  reasonable expense, if any, of the member and of the person
  403  authorized by the association member as a or authorized
  404  representative of such member. A renter of a unit has a right to
  405  inspect and copy only the declaration of condominium, the
  406  association’s bylaws and rules, and the inspection reports
  407  described in ss. 553.899 and 718.301(4)(p). The association may
  408  adopt reasonable rules regarding the frequency, time, location,
  409  notice, and manner of record inspections and copying but may not
  410  require a member to demonstrate any purpose or state any reason
  411  for the inspection. The failure of an association to provide the
  412  records within 10 working days after receipt of a written
  413  request creates a rebuttable presumption that the association
  414  willfully failed to comply with this paragraph. A unit owner who
  415  is denied access to official records is entitled to the actual
  416  damages or minimum damages for the association’s willful failure
  417  to comply. Minimum damages are $50 per calendar day for up to 10
  418  days, beginning on the 11th working day after receipt of the
  419  written request. The failure to permit inspection entitles any
  420  person prevailing in an enforcement action to recover reasonable
  421  attorney fees from the person in control of the records who,
  422  directly or indirectly, knowingly denied access to the records.
  423         2. Any person who knowingly or intentionally defaces or
  424  destroys accounting records that are required by this chapter to
  425  be maintained during the period for which such records are
  426  required to be maintained, or who knowingly or intentionally
  427  fails to create or maintain accounting records that are required
  428  to be created or maintained, with the intent of causing harm to
  429  the association or one or more of its members, is personally
  430  subject to a civil penalty pursuant to s. 718.501(1)(d).
  431         3. The association shall maintain an adequate number of
  432  copies of the declaration, articles of incorporation, bylaws,
  433  and rules, and all amendments to each of the foregoing, as well
  434  as the question and answer sheet as described in s. 718.504 and
  435  year-end financial information required under this section, on
  436  the condominium property to ensure their availability to unit
  437  owners and prospective purchasers, and may charge its actual
  438  costs for preparing and furnishing these documents to those
  439  requesting the documents. An association shall allow a member or
  440  his or her authorized representative to use a portable device,
  441  including a smartphone, tablet, portable scanner, or any other
  442  technology capable of scanning or taking photographs, to make an
  443  electronic copy of the official records in lieu of the
  444  association’s providing the member or his or her authorized
  445  representative with a copy of such records. The association may
  446  not charge a member or his or her authorized representative for
  447  the use of a portable device. Notwithstanding this paragraph,
  448  the following records are not accessible to unit owners:
  449         a. Any record protected by the lawyer-client privilege as
  450  described in s. 90.502 and any record protected by the work
  451  product privilege, including a record prepared by an association
  452  attorney or prepared at the attorney’s express direction, which
  453  reflects a mental impression, conclusion, litigation strategy,
  454  or legal theory of the attorney or the association, and which
  455  was prepared exclusively for civil or criminal litigation or for
  456  adversarial administrative proceedings, or which was prepared in
  457  anticipation of such litigation or proceedings until the
  458  conclusion of the litigation or proceedings.
  459         b. Information obtained by an association in connection
  460  with the approval of the lease, sale, or other transfer of a
  461  unit.
  462         c. Personnel records of association or management company
  463  employees, including, but not limited to, disciplinary, payroll,
  464  health, and insurance records. For purposes of this sub
  465  subparagraph, the term “personnel records” does not include
  466  written employment agreements with an association employee or
  467  management company, or budgetary or financial records that
  468  indicate the compensation paid to an association employee.
  469         d. Medical records of unit owners.
  470         e. Social security numbers, driver license numbers, credit
  471  card numbers, e-mail addresses, telephone numbers, facsimile
  472  numbers, emergency contact information, addresses of a unit
  473  owner other than as provided to fulfill the association’s notice
  474  requirements, and other personal identifying information of any
  475  person, excluding the person’s name, unit designation, mailing
  476  address, property address, and any address, e-mail address, or
  477  facsimile number provided to the association to fulfill the
  478  association’s notice requirements. Notwithstanding the
  479  restrictions in this sub-subparagraph, an association may print
  480  and distribute to unit owners a directory containing the name,
  481  unit address, and all telephone numbers of each unit owner.
  482  However, an owner may exclude his or her telephone numbers from
  483  the directory by so requesting in writing to the association. An
  484  owner may consent in writing to the disclosure of other contact
  485  information described in this sub-subparagraph. The association
  486  is not liable for the inadvertent disclosure of information that
  487  is protected under this sub-subparagraph if the information is
  488  included in an official record of the association and is
  489  voluntarily provided by an owner and not requested by the
  490  association.
  491         f. Electronic security measures that are used by the
  492  association to safeguard data, including passwords.
  493         g. The software and operating system used by the
  494  association which allow the manipulation of data, even if the
  495  owner owns a copy of the same software used by the association.
  496  The data is part of the official records of the association.
  497         h. All affirmative acknowledgments made pursuant to s.
  498  718.121(4)(c).
  499         Section 6. Paragraphs (f), (g), and (h) of subsection (2)
  500  of section 718.112, Florida Statutes, are amended to read:
  501         718.112 Bylaws.—
  502         (2) REQUIRED PROVISIONS.—The bylaws shall provide for the
  503  following and, if they do not do so, shall be deemed to include
  504  the following:
  505         (f) Annual budget.—
  506         1. The proposed annual budget of estimated revenues and
  507  expenses must be detailed and must show the amounts budgeted by
  508  accounts and expense classifications, including, at a minimum,
  509  any applicable expenses listed in s. 718.504(21). The board
  510  shall adopt the annual budget at least 14 days before the start
  511  of the association’s fiscal year. In the event that the board
  512  fails to timely adopt the annual budget a second time, it is
  513  deemed a minor violation and the prior year’s budget shall
  514  continue in effect until a new budget is adopted. A
  515  multicondominium association must adopt a separate budget of
  516  common expenses for each condominium the association operates
  517  and must adopt a separate budget of common expenses for the
  518  association. In addition, if the association maintains limited
  519  common elements with the cost to be shared only by those
  520  entitled to use the limited common elements as provided for in
  521  s. 718.113(1), the budget or a schedule attached to it must show
  522  the amount budgeted for this maintenance. If, after turnover of
  523  control of the association to the unit owners, any of the
  524  expenses listed in s. 718.504(21) are not applicable, they do
  525  not need to be listed.
  526         2.a. In addition to annual operating expenses, the budget
  527  must include reserve accounts for capital expenditures and
  528  deferred maintenance. These accounts must include, but are not
  529  limited to, roof replacement, building painting, and pavement
  530  resurfacing, regardless of the amount of deferred maintenance
  531  expense or replacement cost, and any other item that has a
  532  deferred maintenance expense or replacement cost that exceeds
  533  $10,000. The amount to be reserved for an item is determined by
  534  the association’s most recent structural integrity reserve study
  535  that must be completed by December 31, 2024. If the amount to be
  536  reserved for an item is not in the association’s initial or most
  537  recent structural integrity reserve study or the association has
  538  not completed a structural integrity reserve study, the amount
  539  must be computed using a formula based upon estimated remaining
  540  useful life and estimated replacement cost or deferred
  541  maintenance expense of the reserve item. In a budget adopted by
  542  an association that is required to obtain a structural integrity
  543  reserve study, reserves must be maintained for the items
  544  identified in paragraph (g) and the reserve amount for such
  545  items must be based on the findings and recommendations of the
  546  association’s most recent structural integrity reserve study.
  547  With respect to items for which an estimate of useful life is
  548  not readily ascertainable, an association must reserve the
  549  amount of deferred maintenance expense, if any, which is
  550  recommended by the structural integrity reserve study for such
  551  items. The association may adjust replacement reserve
  552  assessments annually to take into account an inflation
  553  adjustment and any changes in estimates or extension of the
  554  useful life of a reserve item caused by deferred maintenance.
  555  The members of a unit-owner-controlled association may
  556  determine, by a majority vote of all the voting interests of the
  557  association, voting in person or by proxy at a duly called
  558  meeting of the association, to provide no reserves or less
  559  reserves than required by this subsection. For a budget adopted
  560  on or after Effective December 31, 2024, the members of a unit
  561  owner-controlled association that must obtain a structural
  562  integrity reserve study may not determine to provide no reserves
  563  or less reserves than required by this subsection for items
  564  listed in paragraph (g), except that members of an association
  565  operating a multicondominium may determine to provide no
  566  reserves or less reserves than required by this subsection if an
  567  alternative funding method has been approved by the division.
  568         b. Before turnover of control of an association by a
  569  developer to unit owners other than a developer under s.
  570  718.301, the developer-controlled association may not vote to
  571  waive the reserves or reduce funding of the reserves. If a
  572  meeting of the unit owners has been called to determine whether
  573  to waive or reduce the funding of reserves and no such result is
  574  achieved or a quorum is not attained, the reserves included in
  575  the budget shall go into effect. After the turnover, the
  576  developer may vote its voting interest to waive or reduce the
  577  funding of reserves.
  578         3. Reserve funds and any interest accruing thereon shall
  579  remain in the reserve account or accounts, and may be used only
  580  for authorized reserve expenditures unless their use for other
  581  purposes is approved in advance by a majority vote of all the
  582  voting interests of the association, voting in person or by
  583  proxy at a duly called meeting of the association. Before
  584  turnover of control of an association by a developer to unit
  585  owners other than the developer pursuant to s. 718.301, the
  586  developer-controlled association may not vote to use reserves
  587  for purposes other than those for which they were intended. For
  588  a budget adopted on or after Effective December 31, 2024,
  589  members of a unit-owner-controlled association that must obtain
  590  a structural integrity reserve study may not vote to use reserve
  591  funds, or any interest accruing thereon, that are reserved for
  592  items listed in paragraph (g) for any other purpose other than
  593  the replacement or deferred maintenance costs of the components
  594  listed in paragraph (g) their intended purpose.
  595         4. The only voting interests that are eligible to vote on
  596  questions that involve waiving or reducing the funding of
  597  reserves, or using existing reserve funds for purposes other
  598  than purposes for which the reserves were intended, are the
  599  voting interests of the units subject to assessment to fund the
  600  reserves in question. Proxy questions relating to waiving or
  601  reducing the funding of reserves or using existing reserve funds
  602  for purposes other than purposes for which the reserves were
  603  intended must contain the following statement in capitalized,
  604  bold letters in a font size larger than any other used on the
  605  face of the proxy ballot: WAIVING OF RESERVES, IN WHOLE OR IN
  606  PART, OR ALLOWING ALTERNATIVE USES OF EXISTING RESERVES MAY
  607  RESULT IN UNIT OWNER LIABILITY FOR PAYMENT OF UNANTICIPATED
  608  SPECIAL ASSESSMENTS REGARDING THOSE ITEMS.
  609         (g) Structural integrity reserve study.—
  610         1. A residential condominium An association must have a
  611  structural integrity reserve study completed at least every 10
  612  years after the condominium’s creation for each building on the
  613  condominium property that is three stories or higher in height
  614  which includes, at a minimum, a study of the following items as
  615  related to the structural integrity and safety of the building:
  616         a. Roof.
  617         b. Load-bearing walls or other primary structural members.
  618         c. Floor.
  619         d. Foundation.
  620         d.e. Fireproofing and fire protection systems.
  621         e.f. Plumbing.
  622         f.g. Electrical systems.
  623         g.h. Waterproofing and exterior painting.
  624         h.i. Windows.
  625         i.j. Any other item that has a deferred maintenance expense
  626  or replacement cost that exceeds $10,000 and the failure to
  627  replace or maintain such item negatively affects the items
  628  listed in sub-subparagraphs a.-h. sub-subparagraphs a.-i., as
  629  determined by the licensed engineer or architect performing the
  630  visual inspection portion of the structural integrity reserve
  631  study.
  632         2. A structural integrity reserve study is based on a
  633  visual inspection of the condominium property. A structural
  634  integrity reserve study may be performed by any person qualified
  635  to perform such study. However, the visual inspection portion of
  636  the structural integrity reserve study must be performed or
  637  verified by an engineer licensed under chapter 471, an architect
  638  licensed under chapter 481, or a person who is certified as a
  639  reserve specialist or professional reserve analyst by the
  640  Community Associations Institute or the Association of
  641  Professional Reserve Analysts. At a minimum, a structural
  642  integrity reserve study must identify each item of the
  643  condominium property being visually inspected, state the
  644  estimated remaining useful life and the estimated replacement
  645  cost or deferred maintenance expense of each item of the
  646  condominium property being visually inspected, and provide a
  647  reserve funding schedule with a recommended annual reserve
  648  amount that achieves the estimated replacement cost or deferred
  649  maintenance expense of each item of condominium property being
  650  visually inspected by the end of the estimated remaining useful
  651  life of the item. The structural integrity reserve study may
  652  recommend that reserves do not need to be maintained for any
  653  item for which an estimate of useful life and an estimate of
  654  replacement cost or deferred maintenance expense cannot be
  655  determined, or the study may recommend a deferred maintenance
  656  expense amount for such item. This paragraph does not apply to
  657  buildings less than three stories in height; single-family, two
  658  family, or three-family dwellings with three or fewer habitable
  659  stories above ground; any portion or component of a building
  660  that has not been submitted to the condominium form of
  661  ownership; or any portion or component of a building that is
  662  maintained by a party other than the association.
  663         3. Before a developer turns over control of an association
  664  to unit owners other than the developer, the developer must have
  665  a structural integrity reserve study completed for each building
  666  on the condominium property that is three stories or higher in
  667  height.
  668         4.3. Associations existing on or before July 1, 2022, which
  669  are controlled by unit owners other than the developer, must
  670  have a structural integrity reserve study completed by December
  671  31, 2024, for each building on the condominium property that is
  672  three stories or higher in height.
  673         5.4. If an association fails to complete a structural
  674  integrity reserve study pursuant to this paragraph, such failure
  675  is a breach of an officer’s and director’s fiduciary
  676  relationship to the unit owners under s. 718.111(1).
  677         (h) Mandatory milestone inspections.—If an association is
  678  required to have a milestone inspection performed pursuant to s.
  679  553.899, the association must arrange for the milestone
  680  inspection to be performed and is responsible for ensuring
  681  compliance with the requirements of s. 553.899. The association
  682  is responsible for all costs associated with the milestone
  683  inspection attributable to the portions of the building which
  684  the association is responsible for maintaining under the
  685  governing documents of the association. If the officers or
  686  directors of an association willfully and knowingly fail to have
  687  a milestone inspection performed pursuant to s. 553.899, such
  688  failure is a breach of the officers’ and directors’ fiduciary
  689  relationship to the unit owners under s. 718.111(1)(a). Within
  690  30 days after receiving Upon completion of a phase one or phase
  691  two milestone inspection and receipt of the inspector-prepared
  692  summary of the inspection report from the architect or engineer
  693  who performed the inspection, the association must distribute a
  694  copy of the inspector-prepared summary of the inspection report
  695  to each unit owner, regardless of the findings or
  696  recommendations in the report, by United States mail or personal
  697  delivery at the mailing address, property address, or any other
  698  address of the owner provided to fulfill the association’s
  699  notice requirements under this chapter and by electronic
  700  transmission to the e-mail address or facsimile number provided
  701  to fulfill the association’s notice requirements to unit owners
  702  who previously consented to receive notice by electronic
  703  transmission; must post a copy of the inspector-prepared summary
  704  in a conspicuous place on the condominium property; and must
  705  publish the full report and inspector-prepared summary on the
  706  association’s website, if the association is required to have a
  707  website.
  708         Section 7. Effective July 1, 2027, subsection (5) of
  709  section 718.1255, Florida Statutes, is amended, and paragraph
  710  (d) is added to subsection (1) of that section, to read:
  711         718.1255 Alternative dispute resolution; mediation;
  712  nonbinding arbitration; applicability.—
  713         (1) DEFINITIONS.—As used in this section, the term
  714  “dispute” means any disagreement between two or more parties
  715  that involves:
  716         (d) The failure of a governing body, when required by this
  717  chapter or an association document, to:
  718         1. Obtain the milestone inspection required under s.
  719  553.899.
  720         2. Obtain a structural integrity reserve study required
  721  under s. 718.112(2)(g).
  722         3. Fund reserves as required for an item identified in s.
  723  718.112(2)(g).
  724         4. Make or provide necessary maintenance or repairs of
  725  condominium property recommended by a milestone inspection or a
  726  structural integrity reserve study.
  727  
  728  “Dispute” does not include any disagreement that primarily
  729  involves: title to any unit or common element; the
  730  interpretation or enforcement of any warranty; the levy of a fee
  731  or assessment, or the collection of an assessment levied against
  732  a party; the eviction or other removal of a tenant from a unit;
  733  alleged breaches of fiduciary duty by one or more directors; or
  734  claims for damages to a unit based upon the alleged failure of
  735  the association to maintain the common elements or condominium
  736  property.
  737         (5) PRESUIT MEDIATION.—In lieu of the initiation of
  738  nonbinding arbitration as provided in subsections (1)-(4), a
  739  party may submit a dispute to presuit mediation in accordance
  740  with s. 720.311; however, election and recall disputes are not
  741  eligible for mediation and such disputes must be arbitrated by
  742  the division or filed in a court of competent jurisdiction.
  743  Disputes identified in paragraph (1)(d) are not subject to
  744  nonbinding arbitration under subsection (4) and must be
  745  submitted to presuit mediation in accordance with s. 720.311.
  746         Section 8. Subsection (1) of section 718.113, Florida
  747  Statutes, is amended to read:
  748         718.113 Maintenance; limitation upon improvement; display
  749  of flag; hurricane shutters and protection; display of religious
  750  decorations.—
  751         (1) Maintenance of the common elements is the
  752  responsibility of the association, except for any maintenance
  753  responsibility for limited common elements assigned to the unit
  754  owner by the declaration. The association shall provide for the
  755  maintenance, repair, and replacement of the condominium property
  756  for which it bears responsibility pursuant to the declaration of
  757  condominium. After turnover of control of the association to the
  758  unit owners, the association must perform any required
  759  maintenance identified by the developer pursuant to s.
  760  718.301(4)(p) until the association obtains new maintenance
  761  protocols from a licensed professional engineer or architect.
  762  The declaration may provide that certain limited common elements
  763  shall be maintained by those entitled to use the limited common
  764  elements or that the association shall provide the maintenance,
  765  either as a common expense or with the cost shared only by those
  766  entitled to use the limited common elements. If the maintenance
  767  is to be by the association at the expense of only those
  768  entitled to use the limited common elements, the declaration
  769  shall describe in detail the method of apportioning such costs
  770  among those entitled to use the limited common elements, and the
  771  association may use the provisions of s. 718.116 to enforce
  772  payment of the shares of such costs by the unit owners entitled
  773  to use the limited common elements.
  774         Section 9. Paragraph (b) of subsection (1) of section
  775  718.503, Florida Statutes, is amended, and paragraph (d) is
  776  added to that subsection and paragraph (e) is added to
  777  subsection (2) of that section, to read:
  778         718.503 Developer disclosure prior to sale; nondeveloper
  779  unit owner disclosure prior to sale; voidability.—
  780         (1) DEVELOPER DISCLOSURE.—
  781         (b) Copies of documents to be furnished to prospective
  782  buyer or lessee.—Until such time as the developer has furnished
  783  the documents listed below to a person who has entered into a
  784  contract to purchase a residential unit or lease it for more
  785  than 5 years, the contract may be voided by that person,
  786  entitling the person to a refund of any deposit together with
  787  interest thereon as provided in s. 718.202. The contract may be
  788  terminated by written notice from the proposed buyer or lessee
  789  delivered to the developer within 15 days after the buyer or
  790  lessee receives all of the documents required by this section.
  791  The developer may not close for 15 days after the execution of
  792  the agreement and delivery of the documents to the buyer as
  793  evidenced by a signed receipt for documents unless the buyer is
  794  informed in the 15-day voidability period and agrees to close
  795  before the expiration of the 15 days. The developer shall retain
  796  in his or her records a separate agreement signed by the buyer
  797  as proof of the buyer’s agreement to close before the expiration
  798  of the voidability period. The developer must retain such proof
  799  for a period of 5 years after the date of the closing of the
  800  transaction. The documents to be delivered to the prospective
  801  buyer are the prospectus or disclosure statement with all
  802  exhibits, if the development is subject to s. 718.504, or, if
  803  not, then copies of the following which are applicable:
  804         1. The question and answer sheet described in s. 718.504,
  805  and declaration of condominium, or the proposed declaration if
  806  the declaration has not been recorded, which shall include the
  807  certificate of a surveyor approximately representing the
  808  locations required by s. 718.104.
  809         2. The documents creating the association.
  810         3. The bylaws.
  811         4. The ground lease or other underlying lease of the
  812  condominium.
  813         5. The management contract, maintenance contract, and other
  814  contracts for management of the association and operation of the
  815  condominium and facilities used by the unit owners having a
  816  service term in excess of 1 year, and any management contracts
  817  that are renewable.
  818         6. The estimated operating budget for the condominium and a
  819  schedule of expenses for each type of unit, including fees
  820  assessed pursuant to s. 718.113(1) for the maintenance of
  821  limited common elements where such costs are shared only by
  822  those entitled to use the limited common elements.
  823         7. The lease of recreational and other facilities that will
  824  be used only by unit owners of the subject condominium.
  825         8. The lease of recreational and other common facilities
  826  that will be used by unit owners in common with unit owners of
  827  other condominiums.
  828         9. The form of unit lease if the offer is of a leasehold.
  829         10. Any declaration of servitude of properties serving the
  830  condominium but not owned by unit owners or leased to them or
  831  the association.
  832         11. If the development is to be built in phases or if the
  833  association is to manage more than one condominium, a
  834  description of the plan of phase development or the arrangements
  835  for the association to manage two or more condominiums.
  836         12. If the condominium is a conversion of existing
  837  improvements, the statements and disclosure required by s.
  838  718.616.
  839         13. The form of agreement for sale or lease of units.
  840         14. A copy of the floor plan of the unit and the plot plan
  841  showing the location of the residential buildings and the
  842  recreation and other common areas.
  843         15. A copy of all covenants and restrictions that will
  844  affect the use of the property and are not contained in the
  845  foregoing.
  846         16. If the developer is required by state or local
  847  authorities to obtain acceptance or approval of any dock or
  848  marina facilities intended to serve the condominium, a copy of
  849  any such acceptance or approval acquired by the time of filing
  850  with the division under s. 718.502(1), or a statement that such
  851  acceptance or approval has not been acquired or received.
  852         17. Evidence demonstrating that the developer has an
  853  ownership, leasehold, or contractual interest in the land upon
  854  which the condominium is to be developed.
  855         18. A copy of the inspector-prepared summary of the
  856  milestone inspection report as described in ss. 553.899 and
  857  718.301(4)(p) or a statement in conspicuous type indicating that
  858  the association has not completed the milestone inspection
  859  described in ss. 553.899 and 718.301(4)(p) or that the
  860  association is not required to perform a milestone inspection,
  861  as applicable.
  862         19. A copy of the association’s most recent structural
  863  integrity reserve study or a statement in conspicuous type
  864  indicating that the association has not completed a structural
  865  integrity reserve study or that the association is not required
  866  to perform a structural integrity reserve study, as applicable.
  867         (d) Milestone inspection or structural integrity reserve
  868  study.—If the association is required to have completed a
  869  milestone inspection as described in ss. 553.899 and
  870  718.301(4)(p) or a structural integrity reserve study, and the
  871  association has failed to complete the milestone inspection or
  872  the structural integrity reserve study, each contract entered
  873  into after December 31, 2024, for the sale of a residential unit
  874  shall contain in conspicuous type a statement indicating that
  875  the association is required to have a milestone inspection or a
  876  structural integrity reserve study and has failed to complete
  877  such inspection or study, as appropriate. If the association is
  878  not required to have a milestone inspection as described in ss.
  879  553.899 and 718.301(4)(p) or a structural integrity reserve
  880  study, each contract entered into after December 31, 2024, for
  881  the sale of a residential unit shall contain in conspicuous type
  882  a statement indicating that the association is not required to
  883  have a milestone inspection or a structural integrity reserve
  884  study, as appropriate. If the association is required to have
  885  completed a milestone inspection as described in ss. 553.899 and
  886  718.301(4)(p) or a structural integrity reserve study, each
  887  contract entered into after December 31, 2024, for the sale of a
  888  residential unit shall contain in conspicuous type:
  889         1. A clause which states: THE BUYER HEREBY ACKNOWLEDGES
  890  THAT BUYER HAS BEEN PROVIDED A CURRENT COPY OF THE INSPECTOR
  891  PREPARED SUMMARY OF THE MILESTONE INSPECTION REPORT AS DESCRIBED
  892  IN SECTIONS 553.899 AND 718.301(4)(p), FLORIDA STATUTES; AND A
  893  COPY OF THE ASSOCIATION’S MOST RECENT STRUCTURAL INTEGRITY
  894  RESERVE STUDY DESCRIBED IN SECTIONS 718.103(26) AND
  895  718.112(2)(g), FLORIDA STATUTES, MORE THAN 15 DAYS, EXCLUDING
  896  SATURDAYS, SUNDAYS, AND LEGAL HOLIDAYS, PRIOR TO EXECUTION OF
  897  THIS CONTRACT; and
  898         2. A clause which states: THIS AGREEMENT IS VOIDABLE BY
  899  BUYER BY DELIVERING WRITTEN NOTICE OF THE BUYER’S INTENTION TO
  900  CANCEL WITHIN 15 DAYS, EXCLUDING SATURDAYS, SUNDAYS, AND LEGAL
  901  HOLIDAYS, AFTER THE DATE OF EXECUTION OF THIS AGREEMENT BY THE
  902  BUYER AND RECEIPT BY BUYER OF A CURRENT COPY OF THE INSPECTOR
  903  PREPARED SUMMARY OF THE MILESTONE INSPECTION REPORT AS DESCRIBED
  904  IN SECTIONS 553.899 AND 718.301(4)(p), FLORIDA STATUTES; AND A
  905  COPY OF THE ASSOCIATION’S MOST RECENT STRUCTURAL INTEGRITY
  906  RESERVE STUDY DESCRIBED IN SECTIONS 718.103(26) AND
  907  718.112(2)(g), FLORIDA STATUTES. ANY PURPORTED WAIVER OF THESE
  908  VOIDABILITY RIGHTS SHALL BE OF NO EFFECT. BUYER MAY EXTEND THE
  909  TIME FOR CLOSING FOR A PERIOD OF NOT MORE THAN 15 DAYS,
  910  EXCLUDING SATURDAYS, SUNDAYS, AND LEGAL HOLIDAYS, AFTER THE
  911  BUYER RECEIVES A CURRENT COPY OF THE INSPECTOR-PREPARED SUMMARY
  912  OF THE MILESTONE INSPECTION REPORT AS DESCRIBED IN SECTIONS
  913  553.899 AND 718.301(4)(p), FLORIDA STATUTES; AND A COPY OF THE
  914  ASSOCIATION’S MOST RECENT STRUCTURAL INTEGRITY RESERVE STUDY
  915  DESCRIBED IN SECTIONS 718.103(26) AND 718.112(2)(g), FLORIDA
  916  STATUTES, IF REQUESTED IN WRITING. BUYER’S RIGHT TO VOID THIS
  917  AGREEMENT SHALL TERMINATE AT CLOSING.
  918  
  919  A contract that does not conform to the requirements of this
  920  paragraph is voidable at the option of the purchaser prior to
  921  closing.
  922         (2) NONDEVELOPER DISCLOSURE.—
  923         (e) If the association is required to have completed a
  924  milestone inspection as described in ss. 553.899 and
  925  718.301(4)(p) or a structural integrity reserve study, and the
  926  association has failed to complete the milestone inspection or
  927  the structural integrity reserve study, each contract entered
  928  into after December 31, 2024, for the sale of a residential unit
  929  shall contain in conspicuous type a statement indicating that
  930  the association is required to have a milestone inspection or a
  931  structural integrity reserve study and has failed to complete
  932  such inspection or study, as appropriate. If the association is
  933  not required to have a milestone inspection as described in ss.
  934  553.899 and 718.301(4)(p) or a structural integrity reserve
  935  study, each contract entered into after December 31, 2024, for
  936  the sale of a residential unit shall contain in conspicuous type
  937  a statement indicating that the association is not required to
  938  have a milestone inspection or a structural integrity reserve
  939  study, as appropriate. If the association is required to have
  940  completed a milestone inspection as described in ss. 553.899 and
  941  718.301(4)(p) or a structural integrity reserve study, each
  942  contract entered into after December 31, 2024, for the resale of
  943  a residential unit shall contain in conspicuous type:
  944         1. A clause which states: THE BUYER HEREBY ACKNOWLEDGES
  945  THAT BUYER HAS BEEN PROVIDED A CURRENT COPY OF THE INSPECTOR
  946  PREPARED SUMMARY OF THE MILESTONE INSPECTION REPORT AS DESCRIBED
  947  IN SECTIONS 553.899 AND 718.301(4)(p), FLORIDA STATUTES; AND A
  948  COPY OF THE ASSOCIATION’S MOST RECENT STRUCTURAL INTEGRITY
  949  RESERVE STUDY DESCRIBED IN SECTIONS 718.103(26) AND
  950  718.112(2)(g), FLORIDA STATUTES, MORE THAN 3 DAYS, EXCLUDING
  951  SATURDAYS, SUNDAYS, AND LEGAL HOLIDAYS, PRIOR TO EXECUTION OF
  952  THIS CONTRACT; and
  953         2. A clause which states: THIS AGREEMENT IS VOIDABLE BY
  954  BUYER BY DELIVERING WRITTEN NOTICE OF THE BUYER’S INTENTION TO
  955  CANCEL WITHIN 3 DAYS, EXCLUDING SATURDAYS, SUNDAYS, AND LEGAL
  956  HOLIDAYS, AFTER THE DATE OF EXECUTION OF THIS AGREEMENT BY THE
  957  BUYER AND RECEIPT BY BUYER OF A CURRENT COPY OF THE INSPECTOR
  958  PREPARED SUMMARY OF THE MILESTONE INSPECTION REPORT AS DESCRIBED
  959  IN SECTIONS 553.899 AND 718.301(4)(p), FLORIDA STATUTES; AND A
  960  COPY OF THE ASSOCIATION’S MOST RECENT STRUCTURAL INTEGRITY
  961  RESERVE STUDY DESCRIBED IN SECTIONS 718.103(26) AND
  962  718.112(2)(g), FLORIDA STATUTES. ANY PURPORTED WAIVER OF THESE
  963  VOIDABILITY RIGHTS SHALL BE OF NO EFFECT. BUYER MAY EXTEND THE
  964  TIME FOR CLOSING FOR A PERIOD OF NOT MORE THAN 3 DAYS, EXCLUDING
  965  SATURDAYS, SUNDAYS, AND LEGAL HOLIDAYS, AFTER THE BUYER RECEIVES
  966  A CURRENT COPY OF THE INSPECTOR-PREPARED SUMMARY OF THE
  967  MILESTONE INSPECTION REPORT AS DESCRIBED IN SECTIONS 553.899 AND
  968  718.301(4)(p), FLORIDA STATUTES; AND A COPY OF THE ASSOCIATION’S
  969  MOST RECENT STRUCTURAL INTEGRITY RESERVE STUDY DESCRIBED IN
  970  SECTIONS 718.103(26) AND 718.112(2)(g) FLORIDA STATUTES, IF
  971  REQUESTED IN WRITING. BUYER’S RIGHT TO VOID THIS AGREEMENT SHALL
  972  TERMINATE AT CLOSING.
  973  
  974  A contract that does not conform to the requirements of this
  975  paragraph is voidable at the option of the purchaser prior to
  976  closing.
  977         Section 10. Subsection (24) of section 719.103, Florida
  978  Statutes, is amended to read:
  979         719.103 Definitions.—As used in this chapter:
  980         (24) “Structural integrity reserve study” means a study of
  981  the reserve funds required for future major repairs and
  982  replacement of the cooperative property performed as required
  983  under s. 719.106(1)(k) common areas based on a visual inspection
  984  of the common areas. A structural integrity reserve study may be
  985  performed by any person qualified to perform such study.
  986  However, the visual inspection portion of the structural
  987  integrity reserve study must be performed by an engineer
  988  licensed under chapter 471 or an architect licensed under
  989  chapter 481. At a minimum, a structural integrity reserve study
  990  must identify the common areas being visually inspected, state
  991  the estimated remaining useful life and the estimated
  992  replacement cost or deferred maintenance expense of the common
  993  areas being visually inspected, and provide a recommended annual
  994  reserve amount that achieves the estimated replacement cost or
  995  deferred maintenance expense of each common area being visually
  996  inspected by the end of the estimated remaining useful life of
  997  each common area.
  998         Section 11. Present subsections (5) through (11) of section
  999  719.104, Florida Statutes, are redesignated as subsections (6)
 1000  through (12), respectively, a new subsection (5) is added to
 1001  that section, and paragraph (c) of subsection (2) of that
 1002  section is amended, to read:
 1003         719.104 Cooperatives; access to units; records; financial
 1004  reports; assessments; purchase of leases.—
 1005         (2) OFFICIAL RECORDS.—
 1006         (c) The official records of the association are open to
 1007  inspection by any association member and any person authorized
 1008  by an association member as a or the authorized representative
 1009  of such member at all reasonable times. The right to inspect the
 1010  records includes the right to make or obtain copies, at the
 1011  reasonable expense, if any, of the association member and of the
 1012  person authorized by the association member as a representative
 1013  of such member. A renter of a unit has a right to inspect and
 1014  copy only the association’s bylaws and rules and the inspection
 1015  reports described in ss. 553.899 and 719.301(4)(p). The
 1016  association may adopt reasonable rules regarding the frequency,
 1017  time, location, notice, and manner of record inspections and
 1018  copying, but may not require a member to demonstrate any purpose
 1019  or state any reason for the inspection. The failure of an
 1020  association to provide the records within 10 working days after
 1021  receipt of a written request creates a rebuttable presumption
 1022  that the association willfully failed to comply with this
 1023  paragraph. A member who is denied access to official records is
 1024  entitled to the actual damages or minimum damages for the
 1025  association’s willful failure to comply. The minimum damages are
 1026  $50 per calendar day for up to 10 days, beginning on the 11th
 1027  working day after receipt of the written request. The failure to
 1028  permit inspection entitles any person prevailing in an
 1029  enforcement action to recover reasonable attorney fees from the
 1030  person in control of the records who, directly or indirectly,
 1031  knowingly denied access to the records. Any person who knowingly
 1032  or intentionally defaces or destroys accounting records that are
 1033  required by this chapter to be maintained during the period for
 1034  which such records are required to be maintained, or who
 1035  knowingly or intentionally fails to create or maintain
 1036  accounting records that are required to be created or
 1037  maintained, with the intent of causing harm to the association
 1038  or one or more of its members, is personally subject to a civil
 1039  penalty under s. 719.501(1)(d). The association shall maintain
 1040  an adequate number of copies of the declaration, articles of
 1041  incorporation, bylaws, and rules, and all amendments to each of
 1042  the foregoing, as well as the question and answer sheet as
 1043  described in s. 719.504 and year-end financial information
 1044  required by the department, on the cooperative property to
 1045  ensure their availability to members and prospective purchasers,
 1046  and may charge its actual costs for preparing and furnishing
 1047  these documents to those requesting the same. An association
 1048  shall allow a member or his or her authorized representative to
 1049  use a portable device, including a smartphone, tablet, portable
 1050  scanner, or any other technology capable of scanning or taking
 1051  photographs, to make an electronic copy of the official records
 1052  in lieu of the association providing the member or his or her
 1053  authorized representative with a copy of such records. The
 1054  association may not charge a member or his or her authorized
 1055  representative for the use of a portable device. Notwithstanding
 1056  this paragraph, the following records shall not be accessible to
 1057  members:
 1058         1. Any record protected by the lawyer-client privilege as
 1059  described in s. 90.502 and any record protected by the work
 1060  product privilege, including any record prepared by an
 1061  association attorney or prepared at the attorney’s express
 1062  direction which reflects a mental impression, conclusion,
 1063  litigation strategy, or legal theory of the attorney or the
 1064  association, and which was prepared exclusively for civil or
 1065  criminal litigation or for adversarial administrative
 1066  proceedings, or which was prepared in anticipation of such
 1067  litigation or proceedings until the conclusion of the litigation
 1068  or proceedings.
 1069         2. Information obtained by an association in connection
 1070  with the approval of the lease, sale, or other transfer of a
 1071  unit.
 1072         3. Personnel records of association or management company
 1073  employees, including, but not limited to, disciplinary, payroll,
 1074  health, and insurance records. For purposes of this
 1075  subparagraph, the term “personnel records” does not include
 1076  written employment agreements with an association employee or
 1077  management company, or budgetary or financial records that
 1078  indicate the compensation paid to an association employee.
 1079         4. Medical records of unit owners.
 1080         5. Social security numbers, driver license numbers, credit
 1081  card numbers, e-mail addresses, telephone numbers, facsimile
 1082  numbers, emergency contact information, addresses of a unit
 1083  owner other than as provided to fulfill the association’s notice
 1084  requirements, and other personal identifying information of any
 1085  person, excluding the person’s name, unit designation, mailing
 1086  address, property address, and any address, e-mail address, or
 1087  facsimile number provided to the association to fulfill the
 1088  association’s notice requirements. Notwithstanding the
 1089  restrictions in this subparagraph, an association may print and
 1090  distribute to unit owners a directory containing the name, unit
 1091  address, and all telephone numbers of each unit owner. However,
 1092  an owner may exclude his or her telephone numbers from the
 1093  directory by so requesting in writing to the association. An
 1094  owner may consent in writing to the disclosure of other contact
 1095  information described in this subparagraph. The association is
 1096  not liable for the inadvertent disclosure of information that is
 1097  protected under this subparagraph if the information is included
 1098  in an official record of the association and is voluntarily
 1099  provided by an owner and not requested by the association.
 1100         6. Electronic security measures that are used by the
 1101  association to safeguard data, including passwords.
 1102         7. The software and operating system used by the
 1103  association which allow the manipulation of data, even if the
 1104  owner owns a copy of the same software used by the association.
 1105  The data is part of the official records of the association.
 1106         8. All affirmative acknowledgments made pursuant to s.
 1107  719.108(3)(b)3.
 1108         (5) MAINTENANCE.—Maintenance of the common elements is the
 1109  responsibility of the association, except for any maintenance
 1110  responsibility for limited common elements assigned to the unit
 1111  owner by the declaration. The association shall provide for the
 1112  maintenance, repair, and replacement of the cooperative property
 1113  for which it bears responsibility pursuant to the declaration of
 1114  cooperative. After turnover of control of the association to the
 1115  unit owners, the association must perform any required
 1116  maintenance identified by the developer pursuant to s.
 1117  719.301(4)(p) until the association obtains new maintenance
 1118  protocols from a licensed professional engineer or architect.
 1119  The declaration may provide that certain limited common elements
 1120  shall be maintained by those entitled to use the limited common
 1121  elements or that the association shall provide the maintenance,
 1122  either as a common expense or with the cost shared only by those
 1123  entitled to use the limited common elements. If the maintenance
 1124  is to be by the association at the expense of only those
 1125  entitled to use the limited common elements, the declaration
 1126  shall describe in detail the method of apportioning such costs
 1127  among those entitled to use the limited common elements, and the
 1128  association may use the provisions of s. 719.108 to enforce
 1129  payment of the shares of such costs by the unit owners entitled
 1130  to use the limited common elements.
 1131         Section 12. Paragraphs (j), (k), and (l) of subsection (1)
 1132  of section 719.106, Florida Statutes, are amended to read:
 1133         719.106 Bylaws; cooperative ownership.—
 1134         (1) MANDATORY PROVISIONS.—The bylaws or other cooperative
 1135  documents shall provide for the following, and if they do not,
 1136  they shall be deemed to include the following:
 1137         (j) Annual budget.—
 1138         1. The proposed annual budget of common expenses must be
 1139  detailed and must show the amounts budgeted by accounts and
 1140  expense classifications, including, if applicable, but not
 1141  limited to, those expenses listed in s. 719.504(20). The board
 1142  of administration shall adopt the annual budget at least 14 days
 1143  before the start of the association’s fiscal year. In the event
 1144  that the board fails to timely adopt the annual budget a second
 1145  time, it is deemed a minor violation and the prior year’s budget
 1146  shall continue in effect until a new budget is adopted.
 1147         2. In addition to annual operating expenses, the budget
 1148  must include reserve accounts for capital expenditures and
 1149  deferred maintenance. These accounts must include, but not be
 1150  limited to, roof replacement, building painting, and pavement
 1151  resurfacing, regardless of the amount of deferred maintenance
 1152  expense or replacement cost, and for any other items for which
 1153  the deferred maintenance expense or replacement cost exceeds
 1154  $10,000. The amount to be reserved for an item is determined by
 1155  the association’s most recent structural integrity reserve study
 1156  that must be completed by December 31, 2024. If the amount to be
 1157  reserved for an item is not in the association’s initial or most
 1158  recent structural integrity reserve study or the association has
 1159  not completed a structural integrity reserve study, the amount
 1160  must be computed by means of a formula which is based upon
 1161  estimated remaining useful life and estimated replacement cost
 1162  or deferred maintenance expense of the reserve item. In a budget
 1163  adopted by an association that is required to obtain a
 1164  structural integrity reserve study, reserves must be maintained
 1165  for the items identified in paragraph (k) and the reserve amount
 1166  for such items must be based on the findings and recommendations
 1167  of the association’s most recent structural integrity reserve
 1168  study. With respect to items for which an estimate of useful
 1169  life is not readily ascertainable, an association must reserve
 1170  the amount of deferred maintenance expense, if any, which is
 1171  recommended by the structural integrity reserve study for such
 1172  items. The association may adjust replacement reserve
 1173  assessments annually to take into account an inflation
 1174  adjustment and any changes in estimates or extension of the
 1175  useful life of a reserve item caused by deferred maintenance.
 1176  The members of a unit-owner-controlled association may
 1177  determine, by a majority vote of all the voting interests of the
 1178  association, voting in person or by proxy at a duly called
 1179  meeting of the association, for a fiscal year to provide no
 1180  reserves or reserves less adequate than required by this
 1181  subsection. Before turnover of control of an association by a
 1182  developer to unit owners other than a developer under s.
 1183  719.301, the developer-controlled association may not vote to
 1184  waive the reserves or reduce funding of the reserves. For a
 1185  budget adopted on or after Effective December 31, 2024, a unit
 1186  owner-controlled association that must obtain a structural
 1187  integrity reserve study may not determine to provide no reserves
 1188  or reserves less adequate than required by this paragraph for
 1189  items listed in paragraph (k). If a meeting of the unit owners
 1190  has been called to determine to provide no reserves, or reserves
 1191  less adequate than required, and such result is not attained or
 1192  a quorum is not attained, the reserves as included in the budget
 1193  shall go into effect.
 1194         3. Reserve funds and any interest accruing thereon shall
 1195  remain in the reserve account or accounts, and shall be used
 1196  only for authorized reserve expenditures unless their use for
 1197  other purposes is approved in advance by a vote of the majority
 1198  of the voting interests, voting in person or by limited proxy at
 1199  a duly called meeting of the association. Before turnover of
 1200  control of an association by a developer to unit owners other
 1201  than the developer under s. 719.301, the developer may not vote
 1202  to use reserves for purposes other than that for which they were
 1203  intended. For a budget adopted on or after Effective December
 1204  31, 2024, members of a unit-owner-controlled association that
 1205  must obtain a structural integrity reserve study may not vote to
 1206  use reserve funds, or any interest accruing thereon, that are
 1207  reserved for items listed in paragraph (k) for purposes other
 1208  than the replacement or deferred maintenance costs of the
 1209  components listed in paragraph (k) their intended purpose.
 1210         (k) Structural integrity reserve study.—
 1211         1. A residential cooperative An association must have a
 1212  structural integrity reserve study completed at least every 10
 1213  years for each building on the cooperative property that is
 1214  three stories or higher in height that includes, at a minimum, a
 1215  study of the following items as related to the structural
 1216  integrity and safety of the building:
 1217         a. Roof.
 1218         b. Load-bearing walls or other primary structural members.
 1219         c. Floor.
 1220         d. Foundation.
 1221         d.e. Fireproofing and fire protection systems.
 1222         e.f. Plumbing.
 1223         f.g. Electrical systems.
 1224         g.h. Waterproofing and exterior painting.
 1225         h.i. Windows.
 1226         i.j. Any other item that has a deferred maintenance expense
 1227  or replacement cost that exceeds $10,000 and the failure to
 1228  replace or maintain such item negatively affects the items
 1229  listed in sub-subparagraphs a.-h. sub-subparagraphs a.-i., as
 1230  determined by the licensed engineer or architect performing the
 1231  visual inspection portion of the structural integrity reserve
 1232  study.
 1233         2. A structural integrity reserve study is based on a
 1234  visual inspection of the cooperative property. A structural
 1235  integrity reserve study may be performed by any person qualified
 1236  to perform such study. However, the visual inspection portion of
 1237  the structural integrity reserve study must be performed or
 1238  verified by an engineer licensed under chapter 471, an architect
 1239  licensed under chapter 481, or a person who is certified as a
 1240  reserve specialist or professional reserve analyst by the
 1241  Community Associations Institute or the Association of
 1242  Professional Reserve Analysts. At a minimum, a structural
 1243  integrity reserve study must identify each item of the
 1244  cooperative property being visually inspected, state the
 1245  estimated remaining useful life and the estimated replacement
 1246  cost or deferred maintenance expense of each item of the
 1247  cooperative property being visually inspected, and provide a
 1248  reserve funding schedule with a recommended annual reserve
 1249  amount that achieves the estimated replacement cost or deferred
 1250  maintenance expense of each item of cooperative property being
 1251  visually inspected by the end of the estimated remaining useful
 1252  life of the item. The structural integrity reserve study may
 1253  recommend that reserves do not need to be maintained for any
 1254  item for which an estimate of useful life and an estimate of
 1255  replacement cost or deferred maintenance expense cannot be
 1256  determined, or the study may recommend a deferred maintenance
 1257  expense amount for such item. This paragraph does not apply to
 1258  buildings less than three stories in height; single-family, two
 1259  family, or three-family dwellings with three or fewer habitable
 1260  stories above ground; any portion or component of a building
 1261  that has not been submitted to the cooperative form of
 1262  ownership; or any portion or component of a building that is
 1263  maintained by a party other than the association.
 1264         3. Before a developer turns over control of an association
 1265  to unit owners other than the developer, the developer must have
 1266  a structural integrity reserve study completed for each building
 1267  on the cooperative property that is three stories or higher in
 1268  height.
 1269         4.3. Associations existing on or before July 1, 2022, which
 1270  are controlled by unit owners other than the developer, must
 1271  have a structural integrity reserve study completed by December
 1272  31, 2024, for each building on the cooperative property that is
 1273  three stories or higher in height.
 1274         5.4. If an association fails to complete a structural
 1275  integrity reserve study pursuant to this paragraph, such failure
 1276  is a breach of an officer’s and director’s fiduciary
 1277  relationship to the unit owners under s. 719.104(9) s.
 1278  719.104(8).
 1279         (l) Mandatory milestone inspections.—If an association is
 1280  required to have a milestone inspection performed pursuant to s.
 1281  553.899, the association must arrange for the milestone
 1282  inspection to be performed and is responsible for ensuring
 1283  compliance with the requirements of s. 553.899. The association
 1284  is responsible for all costs associated with the milestone
 1285  inspection attributable to the portions of the building which
 1286  the association is responsible to maintain under the governing
 1287  documents of the association. If the officers or directors of an
 1288  association willfully and knowingly fail to have a milestone
 1289  inspection performed pursuant to s. 553.899, such failure is a
 1290  breach of the officers’ and directors’ fiduciary relationship to
 1291  the unit owners under s. 719.104(9)(a) s. 719.104(8)(a). Within
 1292  30 days after receiving Upon completion of a phase one or phase
 1293  two milestone inspection and receipt of the inspector-prepared
 1294  summary of the inspection report from the architect or engineer
 1295  who performed the inspection, the association must distribute a
 1296  copy of the inspector-prepared summary of the inspection report
 1297  to each unit owner, regardless of the findings or
 1298  recommendations in the report, by United States mail or personal
 1299  delivery at the mailing address, property address, or any other
 1300  address of the owner provided to fulfill the association’s
 1301  notice requirements under this chapter and by electronic
 1302  transmission to the e-mail address or facsimile number provided
 1303  to fulfill the association’s notice requirements to unit owners
 1304  who previously consented to receive notice by electronic
 1305  transmission; must post a copy of the inspector-prepared summary
 1306  in a conspicuous place on the cooperative property; and must
 1307  publish the full report and inspector-prepared summary on the
 1308  association’s website, if the association is required to have a
 1309  website.
 1310         Section 13. Paragraph (b) of subsection (1) of section
 1311  719.503, Florida Statutes, is amended, paragraph (d) is added to
 1312  that subsection, and paragraph (d) is added to subsection (2) of
 1313  that section, to read:
 1314         719.503 Disclosure prior to sale.—
 1315         (1) DEVELOPER DISCLOSURE.—
 1316         (b) Copies of documents to be furnished to prospective
 1317  buyer or lessee.—Until such time as the developer has furnished
 1318  the documents listed below to a person who has entered into a
 1319  contract to purchase a unit or lease it for more than 5 years,
 1320  the contract may be voided by that person, entitling the person
 1321  to a refund of any deposit together with interest thereon as
 1322  provided in s. 719.202. The contract may be terminated by
 1323  written notice from the proposed buyer or lessee delivered to
 1324  the developer within 15 days after the buyer or lessee receives
 1325  all of the documents required by this section. The developer may
 1326  not close for 15 days after the execution of the agreement and
 1327  delivery of the documents to the buyer as evidenced by a receipt
 1328  for documents signed by the buyer unless the buyer is informed
 1329  in the 15-day voidability period and agrees to close before the
 1330  expiration of the 15 days. The developer shall retain in his or
 1331  her records a separate signed agreement as proof of the buyer’s
 1332  agreement to close before the expiration of the voidability
 1333  period. The developer must retain such proof for a period of 5
 1334  years after the date of the closing transaction. The documents
 1335  to be delivered to the prospective buyer are the prospectus or
 1336  disclosure statement with all exhibits, if the development is
 1337  subject to s. 719.504, or, if not, then copies of the following
 1338  which are applicable:
 1339         1. The question and answer sheet described in s. 719.504,
 1340  and cooperative documents, or the proposed cooperative documents
 1341  if the documents have not been recorded, which shall include the
 1342  certificate of a surveyor approximately representing the
 1343  locations required by s. 719.104.
 1344         2. The documents creating the association.
 1345         3. The bylaws.
 1346         4. The ground lease or other underlying lease of the
 1347  cooperative.
 1348         5. The management contract, maintenance contract, and other
 1349  contracts for management of the association and operation of the
 1350  cooperative and facilities used by the unit owners having a
 1351  service term in excess of 1 year, and any management contracts
 1352  that are renewable.
 1353         6. The estimated operating budget for the cooperative and a
 1354  schedule of expenses for each type of unit, including fees
 1355  assessed to a shareholder who has exclusive use of limited
 1356  common areas, where such costs are shared only by those entitled
 1357  to use such limited common areas.
 1358         7. The lease of recreational and other facilities that will
 1359  be used only by unit owners of the subject cooperative.
 1360         8. The lease of recreational and other common areas that
 1361  will be used by unit owners in common with unit owners of other
 1362  cooperatives.
 1363         9. The form of unit lease if the offer is of a leasehold.
 1364         10. Any declaration of servitude of properties serving the
 1365  cooperative but not owned by unit owners or leased to them or
 1366  the association.
 1367         11. If the development is to be built in phases or if the
 1368  association is to manage more than one cooperative, a
 1369  description of the plan of phase development or the arrangements
 1370  for the association to manage two or more cooperatives.
 1371         12. If the cooperative is a conversion of existing
 1372  improvements, the statements and disclosure required by s.
 1373  719.616.
 1374         13. The form of agreement for sale or lease of units.
 1375         14. A copy of the floor plan of the unit and the plot plan
 1376  showing the location of the residential buildings and the
 1377  recreation and other common areas.
 1378         15. A copy of all covenants and restrictions that will
 1379  affect the use of the property and are not contained in the
 1380  foregoing.
 1381         16. If the developer is required by state or local
 1382  authorities to obtain acceptance or approval of any dock or
 1383  marina facilities intended to serve the cooperative, a copy of
 1384  any such acceptance or approval acquired by the time of filing
 1385  with the division pursuant to s. 719.502(1) or a statement that
 1386  such acceptance or approval has not been acquired or received.
 1387         17. Evidence demonstrating that the developer has an
 1388  ownership, leasehold, or contractual interest in the land upon
 1389  which the cooperative is to be developed.
 1390         18. A copy of the inspector-prepared summary of the
 1391  milestone inspection report as described in ss. 553.899 and
 1392  719.301(4)(p), or a statement in conspicuous type indicating
 1393  that the association has not completed the milestone inspection
 1394  described in ss. 553.899 and 719.301(4)(p) or that the
 1395  association is not required to perform a milestone inspection,
 1396  as if applicable.
 1397         19. A copy of the association’s most recent structural
 1398  integrity reserve study or a statement in conspicuous type
 1399  indicating that the association has not completed a structural
 1400  integrity reserve study or that the association is not required
 1401  to perform a structural integrity reserve study, as applicable.
 1402         (d) Milestone inspection or structural integrity reserve
 1403  study.—If the association is required to have completed a
 1404  milestone inspection as described in ss. 553.899 and
 1405  719.301(4)(p) or a structural integrity reserve study, and the
 1406  association has failed to complete the milestone inspection or
 1407  the structural integrity reserve study, each contract entered
 1408  into after December 31, 2024, for the sale of a residential unit
 1409  shall contain in conspicuous type a statement indicating that
 1410  the association is required to have a milestone inspection or a
 1411  structural integrity reserve study and has failed to complete
 1412  such inspection or study, as appropriate. If the association is
 1413  not required to have a milestone inspection as described in ss.
 1414  553.899 and 719.301(4)(p) or a structural integrity reserve
 1415  study, each contract entered into after December 31, 2024, for
 1416  the sale of a residential unit shall contain in conspicuous type
 1417  a statement indicating that the association is not required to
 1418  have a milestone inspection or a structural integrity reserve
 1419  study, as appropriate. If the association is required to have
 1420  completed a milestone inspection as described in ss. 553.899 and
 1421  719.301(4)(p) or a structural integrity reserve study, each
 1422  contract entered into after December 31, 2024, for the sale of a
 1423  residential unit shall contain in conspicuous type:
 1424         1. A clause which states: THE BUYER HEREBY ACKNOWLEDGES
 1425  THAT BUYER HAS BEEN PROVIDED A CURRENT COPY OF THE INSPECTOR
 1426  PREPARED SUMMARY OF THE MILESTONE INSPECTION REPORT AS DESCRIBED
 1427  IN SECTIONS 553.899 AND 719.301(4)(p), FLORIDA STATUTES; AND A
 1428  COPY OF THE ASSOCIATION’S MOST RECENT STRUCTURAL INTEGRITY
 1429  RESERVE STUDY DESCRIBED IN SECTIONS 719.103(24) AND
 1430  719.106(1)(k), FLORIDA STATUTES, MORE THAN 15 DAYS, EXCLUDING
 1431  SATURDAYS, SUNDAYS, AND LEGAL HOLIDAYS, PRIOR TO EXECUTION OF
 1432  THIS CONTRACT; and
 1433         2. A clause which states: THIS AGREEMENT IS VOIDABLE BY
 1434  BUYER BY DELIVERING WRITTEN NOTICE OF THE BUYER’S INTENTION TO
 1435  CANCEL WITHIN 15 DAYS, EXCLUDING SATURDAYS, SUNDAYS, AND LEGAL
 1436  HOLIDAYS, AFTER THE DATE OF EXECUTION OF THIS AGREEMENT BY THE
 1437  BUYER AND RECEIPT BY BUYER OF A CURRENT COPY OF THE INSPECTOR
 1438  PREPARED SUMMARY OF THE MILESTONE INSPECTION REPORT AS DESCRIBED
 1439  IN SECTIONS 553.899 AND 719.301(4)(p), FLORIDA STATUTES; AND A
 1440  COPY OF THE ASSOCIATION’S MOST RECENT STRUCTURAL INTEGRITY
 1441  RESERVE STUDY DESCRIBED IN SECTIONS 719.103(24) AND
 1442  719.106(1)(k), FLORIDA STATUTES. ANY PURPORTED WAIVER OF THESE
 1443  VOIDABILITY RIGHTS SHALL BE OF NO EFFECT. BUYER MAY EXTEND THE
 1444  TIME FOR CLOSING FOR A PERIOD OF NOT MORE THAN 15 DAYS,
 1445  EXCLUDING SATURDAYS, SUNDAYS, AND LEGAL HOLIDAYS, AFTER THE
 1446  BUYER RECEIVES A CURRENT COPY OF THE INSPECTOR-PREPARED SUMMARY
 1447  OF THE MILESTONE INSPECTION REPORT AS DESCRIBED IN SECTIONS
 1448  553.899 AND 719.301(4)(p), FLORIDA STATUTES; AND A COPY OF THE
 1449  ASSOCIATION’S MOST RECENT STRUCTURAL INTEGRITY RESERVE STUDY
 1450  DESCRIBED IN SECTIONS 719.103(24) AND 719.106(1)(k), FLORIDA
 1451  STATUTES, IF REQUESTED IN WRITING. BUYER’S RIGHT TO VOID THIS
 1452  AGREEMENT SHALL TERMINATE AT CLOSING.
 1453  
 1454  A contract that does not conform to the requirements of this
 1455  paragraph is voidable at the option of the purchaser prior to
 1456  closing.
 1457         (2) NONDEVELOPER DISCLOSURE.—
 1458         (d) If the association is required to have completed a
 1459  milestone inspection as described in ss. 553.899 and
 1460  719.301(4)(p) or a structural integrity reserve study, and the
 1461  association has failed to complete the milestone inspection or
 1462  the structural integrity reserve study, each contract entered
 1463  into after December 31, 2024, for the sale of a residential unit
 1464  shall contain in conspicuous type a statement indicating that
 1465  the association is required to have a milestone inspection or a
 1466  structural integrity reserve study and has failed to complete
 1467  such inspection or study, as appropriate. If the association is
 1468  not required to have a milestone inspection as described in ss.
 1469  553.899 and 719.301(4)(p) or a structural integrity reserve
 1470  study, each contract entered into after December 31, 2024, for
 1471  the sale of a residential unit shall contain in conspicuous type
 1472  a statement indicating that the association is not required to
 1473  have a milestone inspection or a structural integrity reserve
 1474  study, as appropriate. If the association is required to have
 1475  completed a milestone inspection as described in ss. 553.899 and
 1476  719.301(4)(p) or a structural integrity reserve study, each
 1477  contract entered into after December 31, 2024, for the resale of
 1478  a residential unit shall contain in conspicuous type:
 1479         1. A clause which states: THE BUYER HEREBY ACKNOWLEDGES
 1480  THAT BUYER HAS BEEN PROVIDED A CURRENT COPY OF THE INSPECTOR
 1481  PREPARED SUMMARY OF THE MILESTONE INSPECTION REPORT AS DESCRIBED
 1482  IN SECTIONS 553.899 AND 719.301(4)(p), FLORIDA STATUTES; AND A
 1483  COPY OF THE ASSOCIATION’S MOST RECENT STRUCTURAL INTEGRITY
 1484  RESERVE STUDY DESCRIBED IN SECTIONS 719.103(24) AND
 1485  719.106(1)(k), FLORIDA STATUTES, MORE THAN 3 DAYS, EXCLUDING
 1486  SATURDAYS, SUNDAYS, AND LEGAL HOLIDAYS, PRIOR TO EXECUTION OF
 1487  THIS CONTRACT; and
 1488         2. A clause which states: THIS AGREEMENT IS VOIDABLE BY
 1489  BUYER BY DELIVERING WRITTEN NOTICE OF THE BUYER’S INTENTION TO
 1490  CANCEL WITHIN 3 DAYS, EXCLUDING SATURDAYS, SUNDAYS, AND LEGAL
 1491  HOLIDAYS, AFTER THE DATE OF EXECUTION OF THIS AGREEMENT BY THE
 1492  BUYER AND RECEIPT BY BUYER OF A CURRENT COPY OF THE INSPECTOR
 1493  PREPARED SUMMARY OF THE MILESTONE INSPECTION REPORT AS DESCRIBED
 1494  IN SECTIONS 553.899 AND 719.301(4)(p), FLORIDA STATUTES; AND A
 1495  COPY OF THE ASSOCIATION’S MOST RECENT STRUCTURAL INTEGRITY
 1496  RESERVE STUDY DESCRIBED IN SECTIONS 719.103(24) AND
 1497  719.106(1)(k), FLORIDA STATUTES. ANY PURPORTED WAIVER OF THESE
 1498  VOIDABILITY RIGHTS SHALL BE OF NO EFFECT. BUYER MAY EXTEND THE
 1499  TIME FOR CLOSING FOR A PERIOD OF NOT MORE THAN 3 DAYS, EXCLUDING
 1500  SATURDAYS, SUNDAYS, AND LEGAL HOLIDAYS, AFTER THE BUYER RECEIVES
 1501  A CURRENT COPY OF THE INSPECTOR-PREPARED SUMMARY OF THE
 1502  MILESTONE INSPECTION REPORT AS DESCRIBED IN SECTIONS 553.899 AND
 1503  719.301(4)(p), FLORIDA STATUTES; AND A COPY OF THE ASSOCIATION’S
 1504  MOST RECENT STRUCTURAL INTEGRITY RESERVE STUDY DESCRIBED IN
 1505  SECTIONS 719.103(24) AND 719.106(1)(k), FLORIDA STATUTES, IF
 1506  REQUESTED IN WRITING. BUYER’S RIGHT TO VOID THIS AGREEMENT SHALL
 1507  TERMINATE AT CLOSING.
 1508  
 1509  A contract that does not conform to the requirements of this
 1510  paragraph is voidable at the option of the purchaser prior to
 1511  closing.
 1512         Section 14. Subsection (2) of section 558.002, Florida
 1513  Statutes, is amended to read:
 1514         558.002 Definitions.—As used in this chapter, the term:
 1515         (2) “Association” has the same meaning as in s. 718.103 s.
 1516  718.103(2), s. 719.103(2), s. 720.301(9), or s. 723.075.
 1517         Section 15. Paragraph (b) of subsection (1) of section
 1518  718.116, Florida Statutes, is amended to read:
 1519         718.116 Assessments; liability; lien and priority;
 1520  interest; collection.—
 1521         (1)
 1522         (b)1. The liability of a first mortgagee or its successor
 1523  or assignees who acquire title to a unit by foreclosure or by
 1524  deed in lieu of foreclosure for the unpaid assessments that
 1525  became due before the mortgagee’s acquisition of title is
 1526  limited to the lesser of:
 1527         a. The unit’s unpaid common expenses and regular periodic
 1528  assessments which accrued or came due during the 12 months
 1529  immediately preceding the acquisition of title and for which
 1530  payment in full has not been received by the association; or
 1531         b. One percent of the original mortgage debt. The
 1532  provisions of this paragraph apply only if the first mortgagee
 1533  joined the association as a defendant in the foreclosure action.
 1534  Joinder of the association is not required if, on the date the
 1535  complaint is filed, the association was dissolved or did not
 1536  maintain an office or agent for service of process at a location
 1537  which was known to or reasonably discoverable by the mortgagee.
 1538         2. An association, or its successor or assignee, that
 1539  acquires title to a unit through the foreclosure of its lien for
 1540  assessments is not liable for any unpaid assessments, late fees,
 1541  interest, or reasonable attorney’s fees and costs that came due
 1542  before the association’s acquisition of title in favor of any
 1543  other association, as defined in s. 718.103 s. 718.103(2) or s.
 1544  720.301(9), which holds a superior lien interest on the unit.
 1545  This subparagraph is intended to clarify existing law.
 1546         Section 16. Paragraph (d) of subsection (2) of section
 1547  720.3085, Florida Statutes, is amended to read:
 1548         720.3085 Payment for assessments; lien claims.—
 1549         (2)
 1550         (d) An association, or its successor or assignee, that
 1551  acquires title to a parcel through the foreclosure of its lien
 1552  for assessments is not liable for any unpaid assessments, late
 1553  fees, interest, or reasonable attorney’s fees and costs that
 1554  came due before the association’s acquisition of title in favor
 1555  of any other association, as defined in s. 718.103 s. 718.103(2)
 1556  or s. 720.301(9), which holds a superior lien interest on the
 1557  parcel. This paragraph is intended to clarify existing law.
 1558         Section 17. Effective July 1, 2027, for the purpose of
 1559  incorporating the amendments made by this act to section
 1560  718.1255, Florida Statutes, in a reference thereto, section
 1561  719.1255, Florida Statutes, is reenacted to read:
 1562         719.1255 Alternative resolution of disputes.—The Division
 1563  of Florida Condominiums, Timeshares, and Mobile Homes of the
 1564  Department of Business and Professional Regulation shall provide
 1565  for alternative dispute resolution in accordance with s.
 1566  718.1255.
 1567         Section 18. Paragraph (f) of subsection (1) of section
 1568  718.501, Florida Statutes, is reenacted to read:
 1569         718.501 Authority, responsibility, and duties of Division
 1570  of Florida Condominiums, Timeshares, and Mobile Homes.—
 1571         (1) The division may enforce and ensure compliance with
 1572  this chapter and rules relating to the development,
 1573  construction, sale, lease, ownership, operation, and management
 1574  of residential condominium units and complaints related to the
 1575  procedural completion of milestone inspections under s. 553.899.
 1576  In performing its duties, the division has complete jurisdiction
 1577  to investigate complaints and enforce compliance with respect to
 1578  associations that are still under developer control or the
 1579  control of a bulk assignee or bulk buyer pursuant to part VII of
 1580  this chapter and complaints against developers, bulk assignees,
 1581  or bulk buyers involving improper turnover or failure to
 1582  turnover, pursuant to s. 718.301. However, after turnover has
 1583  occurred, the division has jurisdiction to investigate
 1584  complaints related only to financial issues, elections, and the
 1585  maintenance of and unit owner access to association records
 1586  under s. 718.111(12), and the procedural completion of
 1587  structural integrity reserve studies under s. 718.112(2)(g).
 1588         (f) The division may adopt rules to administer and enforce
 1589  this chapter.
 1590         Section 19. Paragraph (f) of subsection (1) of section
 1591  719.501, Florida Statutes, is reenacted to read:
 1592         719.501 Powers and duties of Division of Florida
 1593  Condominiums, Timeshares, and Mobile Homes.—
 1594         (1) The Division of Florida Condominiums, Timeshares, and
 1595  Mobile Homes of the Department of Business and Professional
 1596  Regulation, referred to as the “division” in this part, in
 1597  addition to other powers and duties prescribed by chapter 718,
 1598  has the power to enforce and ensure compliance with this chapter
 1599  and adopted rules relating to the development, construction,
 1600  sale, lease, ownership, operation, and management of residential
 1601  cooperative units; complaints related to the procedural
 1602  completion of the structural integrity reserve studies under s.
 1603  719.106(1)(k); and complaints related to the procedural
 1604  completion of milestone inspections under s. 553.899. In
 1605  performing its duties, the division shall have the following
 1606  powers and duties:
 1607         (f) The division has authority to adopt rules pursuant to
 1608  ss. 120.536(1) and 120.54 to implement and enforce the
 1609  provisions of this chapter.
 1610         Section 20. Except as otherwise expressly provided in this
 1611  act, this act shall take effect upon becoming a law.