Florida Senate - 2023                          SENATOR AMENDMENT
       Bill No. CS for CS for SB 154
       
       
       
       
       
       
                                Ì315026~Î315026                         
       
                              LEGISLATIVE ACTION                        
                    Senate             .             House              
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                  Floor: WD            .                                
             04/10/2023 02:06 PM       .                                
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       Senator Bradley moved the following:
       
       
    1         Senate Amendment 
    2  
    3  
    4         Delete lines 575 - 710
    5  and insert:
    6  determine, by a majority vote of the total voting interests of
    7  the association at a duly called meeting of the association, to
    8  provide no reserves or less reserves than required by this
    9  subsection. For a budget adopted on or after Effective December
   10  31, 2024, the members of a unit-owner-controlled association
   11  that must obtain a structural integrity reserve study may not
   12  determine to provide no reserves or less reserves than required
   13  by this subsection for items listed in paragraph (g), except
   14  that members of an association operating a multicondominium may
   15  determine to provide no reserves or less reserves than required
   16  by this subsection if an alternative funding method has been
   17  approved by the division.
   18         b. Before turnover of control of an association by a
   19  developer to unit owners other than a developer under s.
   20  718.301, the developer-controlled association may not vote to
   21  waive the reserves or reduce funding of the reserves. If a
   22  meeting of the unit owners has been called to determine whether
   23  to waive or reduce the funding of reserves and no such result is
   24  achieved or a quorum is not attained, the reserves included in
   25  the budget shall go into effect. After the turnover, the
   26  developer may vote its voting interest to waive or reduce the
   27  funding of reserves.
   28         3. Reserve funds and any interest accruing thereon shall
   29  remain in the reserve account or accounts, and may be used only
   30  for authorized reserve expenditures unless their use for other
   31  purposes is approved in advance by a majority vote of all the
   32  total voting interests at a duly called meeting of the
   33  association. Before turnover of control of an association by a
   34  developer to unit owners other than the developer pursuant to s.
   35  718.301, the developer-controlled association may not vote to
   36  use reserves for purposes other than those for which they were
   37  intended. For a budget adopted on or after Effective December
   38  31, 2024, members of a unit-owner-controlled association that
   39  must obtain a structural integrity reserve study may not vote to
   40  use reserve funds, or any interest accruing thereon, that are
   41  reserved for items listed in paragraph (g) for any other purpose
   42  other than the replacement or deferred maintenance costs of the
   43  components listed in paragraph (g) their intended purpose.
   44         4. The only voting interests that are eligible to vote on
   45  questions that involve waiving or reducing the funding of
   46  reserves, or using existing reserve funds for purposes other
   47  than purposes for which the reserves were intended, are the
   48  voting interests of the units subject to assessment to fund the
   49  reserves in question. Proxy questions relating to waiving or
   50  reducing the funding of reserves or using existing reserve funds
   51  for purposes other than purposes for which the reserves were
   52  intended must contain the following statement in capitalized,
   53  bold letters in a font size larger than any other used on the
   54  face of the proxy ballot: WAIVING OF RESERVES, IN WHOLE OR IN
   55  PART, OR ALLOWING ALTERNATIVE USES OF EXISTING RESERVES MAY
   56  RESULT IN UNIT OWNER LIABILITY FOR PAYMENT OF UNANTICIPATED
   57  SPECIAL ASSESSMENTS REGARDING THOSE ITEMS.
   58         (g) Structural integrity reserve study.—
   59         1. A residential condominium An association must have a
   60  structural integrity reserve study completed at least every 10
   61  years after the condominium’s creation for each building on the
   62  condominium property that is three stories or higher in height
   63  as determined by the Florida Building Code which includes, at a
   64  minimum, a study of the following items as related to the
   65  structural integrity and safety of the building:
   66         a. Roof.
   67         b. Load-bearing walls or other primary structural members.
   68         c. Floor.
   69         d. Foundation.
   70         d.e. Fireproofing and fire protection systems.
   71         e.f. Plumbing.
   72         f.g. Electrical systems.
   73         g.h. Waterproofing and exterior painting.
   74         h.i. Windows and exterior doors.
   75         i.j. Any other item that has a deferred maintenance expense
   76  or replacement cost that exceeds $10,000 and the failure to
   77  replace or maintain such item negatively affects the items
   78  listed in sub-subparagraphs a.-h. sub-subparagraphs a.-i., as
   79  determined by the licensed engineer or architect performing the
   80  visual inspection portion of the structural integrity reserve
   81  study.
   82         2. A structural integrity reserve study is based on a
   83  visual inspection of the condominium property. A structural
   84  integrity reserve study may be performed by any person qualified
   85  to perform such study. However, the visual inspection portion of
   86  the structural integrity reserve study must be performed or
   87  verified by an engineer licensed under chapter 471, an architect
   88  licensed under chapter 481, or a person who is certified as a
   89  reserve specialist or professional reserve analyst by the
   90  Community Associations Institute or the Association of
   91  Professional Reserve Analysts.
   92         3.At a minimum, a structural integrity reserve study must
   93  identify each item of the condominium property being visually
   94  inspected, state the estimated remaining useful life and the
   95  estimated replacement cost or deferred maintenance expense of
   96  each item of the condominium property being visually inspected,
   97  and provide a reserve funding schedule with a recommended annual
   98  reserve amount that achieves the estimated replacement cost or
   99  deferred maintenance expense of each item of condominium
  100  property being visually inspected by the end of the estimated
  101  remaining useful life of the item. The structural integrity
  102  reserve study may recommend that reserves do not need to be
  103  maintained for any item for which an estimate of useful life and
  104  an estimate of replacement cost or deferred maintenance expense
  105  cannot be determined, or the study may recommend a deferred
  106  maintenance expense amount for such item.
  107         4.This paragraph does not apply to buildings less than
  108  three stories in height; single-family, two-family, or three
  109  family dwellings with three or fewer habitable stories above
  110  ground; any portion or component of a building that has not been
  111  submitted to the condominium form of ownership; or any portion
  112  or component of a building that is maintained by a party other
  113  than the association.
  114         5. Before a developer turns over control of an association
  115  to unit owners other than the developer, the developer must have
  116  a structural integrity reserve study completed for each building
  117  on the condominium property that is three stories or higher in
  118  height.
  119         6.3. Associations existing on or before July 1, 2022, which
  120  are controlled by unit owners other than the developer, must
  121  have a structural integrity reserve study completed by December
  122  31, 2024, for each building on the condominium property that is
  123  three stories or higher in height. An association that is
  124  required to complete a milestone inspection in accordance with
  125  s. 553.899 on or before December 31, 2026, may complete the
  126  structural integrity reserve study simultaneously with the
  127  milestone inspection. In no event may the structural integrity
  128  reserve study be completed after December 31, 2026.
  129         7. If the milestone inspection required by s. 553.899, or
  130  an inspection completed for a similar local requirement, was
  131  performed within the past 5 years and meets the requirements of
  132  this paragraph, such inspection may be used in place of the
  133  visual inspection portion of the structural integrity reserve
  134  study.
  135         8.4. If an association fails to complete a structural
  136  integrity reserve study pursuant to this paragraph, such failure
  137  is a breach of an officer’s and director’s fiduciary
  138  relationship to the unit owners under s. 718.111(1).
  139         (h) Mandatory milestone inspections.—If an association is
  140  required to have a milestone inspection performed pursuant to s.
  141  553.899, the association must arrange for the milestone
  142  inspection to be performed and is responsible for ensuring
  143  compliance with the requirements of s. 553.899. The association
  144  is responsible for all costs associated with the milestone
  145  inspection attributable to the portions of the building which
  146  the association is responsible for maintaining under the
  147  governing documents of the association. If the officers or
  148  directors of an association willfully and knowingly fail to have
  149  a milestone inspection performed pursuant to s. 553.899, such
  150  failure is a breach of the officers’ and directors’ fiduciary
  151  relationship to the unit owners under s. 718.111(1)(a). Within
  152  14 days after receipt of a written notice from the local
  153  enforcement agency that a milestone inspection is required, the
  154  association must notify the unit owners of the required
  155  milestone inspection and provide the date by which the milestone
  156  inspection must be completed. Such notice may be given by
  157  electronic submission to unit owners who consent to receive
  158  notice by electronic submission or by posting on the
  159  association’s website. Within 45 days after receiving Upon
  160  completion of a phase one or phase