Florida Senate - 2021                        COMMITTEE AMENDMENT
       Bill No. CS for SB 1966
       
       
       
       
       
       
                                Ì4252488Î425248                         
       
                              LEGISLATIVE ACTION                        
                    Senate             .             House              
                  Comm: RCS            .                                
                  04/15/2021           .                                
                                       .                                
                                       .                                
                                       .                                
       —————————————————————————————————————————————————————————————————




       —————————————————————————————————————————————————————————————————
       The Committee on Appropriations (Diaz) recommended the
       following:
       
    1         Senate Amendment (with title amendment)
    2  
    3         Delete lines 1394 - 1520
    4  and insert:
    5  any applicable expenses listed in s. 718.504(21). The board
    6  shall adopt the annual budget at least 14 days prior to the
    7  start of the association’s fiscal year. In the event that the
    8  board fails to timely adopt the annual budget a second time, it
    9  shall be deemed a minor violation and the prior year’s budget
   10  shall continue in effect until a new budget is adopted. A
   11  multicondominium association shall adopt a separate budget of
   12  common expenses for each condominium the association operates
   13  and shall adopt a separate budget of common expenses for the
   14  association. In addition, if the association maintains limited
   15  common elements with the cost to be shared only by those
   16  entitled to use the limited common elements as provided for in
   17  s. 718.113(1), the budget or a schedule attached to it must show
   18  the amount budgeted for this maintenance. If, after turnover of
   19  control of the association to the unit owners, any of the
   20  expenses listed in s. 718.504(21) are not applicable, they need
   21  not be listed.
   22         2.a. In addition to annual operating expenses, the budget
   23  must include reserve accounts for capital expenditures and
   24  deferred maintenance. These accounts must include, but are not
   25  limited to, roof replacement, building painting, and pavement
   26  resurfacing, regardless of the amount of deferred maintenance
   27  expense or replacement cost, and any other item that has a
   28  deferred maintenance expense or replacement cost that exceeds
   29  $10,000. The amount to be reserved must be computed using a
   30  formula based upon estimated remaining useful life and estimated
   31  replacement cost or deferred maintenance expense of each reserve
   32  item. The association may adjust replacement reserve assessments
   33  annually to take into account any changes in estimates or
   34  extension of the useful life of a reserve item caused by
   35  deferred maintenance. This subsection does not apply to an
   36  adopted budget in which the members of an association have
   37  determined, by a majority vote at a duly called meeting of the
   38  association, to provide no reserves or less reserves than
   39  required by this subsection.
   40         b. Before turnover of control of an association by a
   41  developer to unit owners other than a developer pursuant to s.
   42  718.301, the developer may vote the voting interests allocated
   43  to its units to waive the reserves or reduce the funding of
   44  reserves through the period expiring at the end of the second
   45  fiscal year after the fiscal year in which the certificate of a
   46  surveyor and mapper is recorded pursuant to s. 718.104(4)(e) or
   47  an instrument that transfers title to a unit in the condominium
   48  which is not accompanied by a recorded assignment of developer
   49  rights in favor of the grantee of such unit is recorded,
   50  whichever occurs first, after which time reserves may be waived
   51  or reduced only upon the vote of a majority of all nondeveloper
   52  voting interests voting in person or by limited proxy at a duly
   53  called meeting of the association. If a meeting of the unit
   54  owners has been called to determine whether to waive or reduce
   55  the funding of reserves and no such result is achieved or a
   56  quorum is not attained, the reserves included in the budget
   57  shall go into effect. After the turnover, the developer may vote
   58  its voting interest to waive or reduce the funding of reserves.
   59         3. Reserve funds and any interest accruing thereon shall
   60  remain in the reserve account or accounts, and may be used only
   61  for authorized reserve expenditures unless their use for other
   62  purposes is approved in advance by a majority vote at a duly
   63  called meeting of the association. Before turnover of control of
   64  an association by a developer to unit owners other than the
   65  developer pursuant to s. 718.301, the developer-controlled
   66  association may not vote to use reserves for purposes other than
   67  those for which they were intended without the approval of a
   68  majority of all nondeveloper voting interests, voting in person
   69  or by limited proxy at a duly called meeting of the association.
   70         4. The only voting interests that are eligible to vote on
   71  questions that involve waiving or reducing the funding of
   72  reserves, or using existing reserve funds for purposes other
   73  than purposes for which the reserves were intended, are the
   74  voting interests of the units subject to assessment to fund the
   75  reserves in question. Proxy questions relating to waiving or
   76  reducing the funding of reserves or using existing reserve funds
   77  for purposes other than purposes for which the reserves were
   78  intended must contain the following statement in capitalized,
   79  bold letters in a font size larger than any other used on the
   80  face of the proxy ballot: WAIVING OF RESERVES, IN WHOLE OR IN
   81  PART, OR ALLOWING ALTERNATIVE USES OF EXISTING RESERVES MAY
   82  RESULT IN UNIT OWNER LIABILITY FOR PAYMENT OF UNANTICIPATED
   83  SPECIAL ASSESSMENTS REGARDING THOSE ITEMS.
   84         Section 23. Paragraph (m) of subsection (1) of section
   85  718.501, Florida Statutes, is amended to read:
   86         718.501 Authority, responsibility, and duties of Division
   87  of Florida Condominiums, Timeshares, and Mobile Homes.—
   88         (1) The division may enforce and ensure compliance with the
   89  provisions of this chapter and rules relating to the
   90  development, construction, sale, lease, ownership, operation,
   91  and management of residential condominium units. In performing
   92  its duties, the division has complete jurisdiction to
   93  investigate complaints and enforce compliance with respect to
   94  associations that are still under developer control or the
   95  control of a bulk assignee or bulk buyer pursuant to part VII of
   96  this chapter and complaints against developers, bulk assignees,
   97  or bulk buyers involving improper turnover or failure to
   98  turnover, pursuant to s. 718.301. However, after turnover has
   99  occurred, the division has jurisdiction to investigate
  100  complaints related only to financial issues, elections, and unit
  101  owner access to association records pursuant to s. 718.111(12).
  102         (m) If a complaint is made, the division must conduct its
  103  inquiry with due regard for the interests of the affected
  104  parties. Within 30 days after receipt of a complaint, the
  105  division shall acknowledge the complaint in writing and notify
  106  the complainant whether the complaint is within the jurisdiction
  107  of the division and whether additional information is needed by
  108  the division from the complainant. The division shall conduct
  109  its investigation and, within 90 days after receipt of the
  110  original complaint or of timely requested additional
  111  information, take action upon the complaint. However, the
  112  failure to complete the investigation within 90 days does not
  113  prevent the division from continuing the investigation,
  114  accepting or considering evidence obtained or received after 90
  115  days, or taking administrative action if reasonable cause exists
  116  to believe that a violation of this chapter or a rule has
  117  occurred. If an investigation is not completed within the time
  118  limits established in this paragraph, the division shall, on a
  119  monthly basis, notify the complainant in writing of the status
  120  of the investigation. When reporting its action to the
  121  complainant, the division shall inform the complainant of any
  122  right to a hearing pursuant to ss. 120.569 and 120.57. The
  123  division may adopt rules regarding the submission of a complaint
  124  against an association.
  125         Section 24. Section 718.5014, Florida Statutes, is amended
  126  to read:
  127         718.5014 Ombudsman location.—The ombudsman shall maintain
  128  his or her principal office at a in Leon County on the premises
  129  of the division or, if suitable space cannot be provided there,
  130  at another place convenient to the offices of the division which
  131  will enable the ombudsman to expeditiously carry out the duties
  132  and functions of his or her office. The ombudsman may establish
  133  branch offices elsewhere in the state upon the concurrence of
  134  the Governor.
  135         Section 25. Paragraph (j) of subsection (1) of section
  136  719.106, Florida Statutes, is amended to read:
  137         719.106 Bylaws; cooperative ownership.—
  138         (1) MANDATORY PROVISIONS.—The bylaws or other cooperative
  139  documents shall provide for the following, and if they do not,
  140  they shall be deemed to include the following:
  141         (j) Annual budget.—
  142         1. The proposed annual budget of common expenses shall be
  143  detailed and shall show the amounts budgeted by accounts and
  144  expense classifications, including, if applicable, but not
  145  limited to, those expenses listed in s. 719.504(20). The board
  146  of administration shall adopt the annual budget at least 14 days
  147  prior to the start of the association’s fiscal year. In the
  148  event that the board fails to timely adopt the annual budget a
  149  second time, it shall be deemed a minor violation and the prior
  150  year’s budget shall continue in effect until a new budget is
  151  adopted.
  152         2. In addition to annual operating expenses, the budget
  153  shall include reserve accounts for capital expenditures and
  154  deferred maintenance. These accounts shall include, but not be
  155  limited to, roof replacement, building painting, and pavement
  156  resurfacing, regardless of the amount of deferred maintenance
  157  expense or replacement cost, and for any other items for which
  158  the deferred maintenance expense or replacement cost exceeds
  159  $10,000. The amount to be reserved shall be computed by means of
  160  a formula which is based upon estimated remaining useful life
  161  and estimated replacement cost or deferred maintenance expense
  162  of each reserve item. The association may adjust replacement
  163  reserve assessments annually to take into account any changes in
  164  estimates or extension of the useful life of a reserve item
  165  caused by deferred maintenance. This paragraph shall not apply
  166  to any budget in which the members of an association have, at a
  167  duly called meeting of the association, determined for a fiscal
  168  year to provide no reserves or reserves less adequate than
  169  required by this subsection. However, prior to turnover of
  170  control of an association by a developer to unit owners other
  171  than a developer pursuant to s. 719.301, the developer may vote
  172  to waive the reserves or reduce the funding of reserves for the
  173  first 2 years of the operation of the association after which
  174  time reserves may only be waived or reduced upon the vote of a
  175  majority of all nondeveloper voting interests voting in person
  176  or by limited proxy at a duly called meeting of the association.
  177  If a meeting of the unit owners has been called to determine to
  178  provide no reserves, or reserves less adequate than required,
  179  and such result is not attained or a quorum is not attained, the
  180  reserves as included in the budget shall go into effect.
  181         3. Reserve funds and any interest accruing thereon shall
  182  remain in the reserve account or accounts, and shall be used
  183  only for authorized reserve expenditures unless their use for
  184  other purposes is approved in advance by a vote of the majority
  185  of the voting interests, voting in person or by limited proxy at
  186  a duly called meeting of the association. Prior to turnover of
  187  control of an association by a developer to unit owners other
  188  than the developer under s. 719.301, the developer may not vote
  189  to use reserves for purposes other than that for which they were
  190  intended without the approval of a majority of all nondeveloper
  191  voting interests, voting in person or by limited proxy at a duly
  192  called meeting of the association.
  193  
  194  ================= T I T L E  A M E N D M E N T ================
  195  And the title is amended as follows:
  196         Delete lines 98 - 105
  197  and insert:
  198         boards to adopt annual budgets within a specified
  199         timeframe; specifying that the failure to adopt a
  200         timely budget a second time is a minor violation and
  201         that the previous year’s budget continues in effect
  202         until a new budget is adopted; amending s. 718.501,
  203         F.S.; authorizing the Division of Florida
  204         Condominiums, Timeshares, and Mobile Homes to adopt
  205         rules regarding the submission of complaints against a
  206         condominium association; amending s. 718.5014, F.S.;
  207         revising the location requirements for the principal
  208         office of the condominium ombudsman; amending s.
  209         719.106, F.S.; requiring boards of administration to
  210         adopt annual budgets within a specified timeframe;
  211         specifying that the failure to adopt a timely budget a
  212         second time is a minor violation and that the previous
  213         year’s budget continues in effect until a new budget
  214         is adopted; amending ss.