Florida Senate - 2023                          SENATOR AMENDMENT
       Bill No. CS for CS for SB 154
       
       
       
       
       
       
                                Ì372434#Î372434                         
       
                              LEGISLATIVE ACTION                        
                    Senate             .             House              
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                Floor: 3/AD/2R         .                                
             04/11/2023 05:13 PM       .                                
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       Senator Bradley moved the following:
       
    1         Senate Amendment (with directory and title amendments)
    2  
    3         Delete lines 524 - 996
    4  and insert:
    5         (e) Budget meeting.—
    6         1. Any meeting at which a proposed annual budget of an
    7  association will be considered by the board or unit owners shall
    8  be open to all unit owners. At least 14 days prior to such a
    9  meeting, the board shall hand deliver to each unit owner, mail
   10  to each unit owner at the address last furnished to the
   11  association by the unit owner, or electronically transmit to the
   12  location furnished by the unit owner for that purpose a notice
   13  of such meeting and a copy of the proposed annual budget. An
   14  officer or manager of the association, or other person providing
   15  notice of such meeting, shall execute an affidavit evidencing
   16  compliance with such notice requirement, and such affidavit
   17  shall be filed among the official records of the association.
   18         2.a. If a board adopts in any fiscal year an annual budget
   19  which requires assessments against unit owners which exceed 115
   20  percent of assessments for the preceding fiscal year, the board
   21  shall conduct a special meeting of the unit owners to consider a
   22  substitute budget if the board receives, within 21 days after
   23  adoption of the annual budget, a written request for a special
   24  meeting from at least 10 percent of all voting interests. The
   25  special meeting shall be conducted within 60 days after adoption
   26  of the annual budget. At least 14 days prior to such special
   27  meeting, the board shall hand deliver to each unit owner, or
   28  mail to each unit owner at the address last furnished to the
   29  association, a notice of the meeting. An officer or manager of
   30  the association, or other person providing notice of such
   31  meeting shall execute an affidavit evidencing compliance with
   32  this notice requirement, and such affidavit shall be filed among
   33  the official records of the association. Unit owners may
   34  consider and adopt a substitute budget at the special meeting. A
   35  substitute budget is adopted if approved by a majority of all
   36  voting interests unless the bylaws require adoption by a greater
   37  percentage of voting interests. If there is not a quorum at the
   38  special meeting or a substitute budget is not adopted, the
   39  annual budget previously adopted by the board shall take effect
   40  as scheduled.
   41         b. Any determination of whether assessments exceed 115
   42  percent of assessments for the prior fiscal year shall exclude
   43  any authorized provision for reasonable reserves for repair or
   44  replacement of the condominium property, anticipated expenses of
   45  the association which the board does not expect to be incurred
   46  on a regular or annual basis, insurance premiums, or assessments
   47  for betterments to the condominium property.
   48         c. If the developer controls the board, assessments shall
   49  not exceed 115 percent of assessments for the prior fiscal year
   50  unless approved by a majority of all voting interests.
   51         (f) Annual budget.—
   52         1. The proposed annual budget of estimated revenues and
   53  expenses must be detailed and must show the amounts budgeted by
   54  accounts and expense classifications, including, at a minimum,
   55  any applicable expenses listed in s. 718.504(21). The board
   56  shall adopt the annual budget at least 14 days before the start
   57  of the association’s fiscal year. In the event that the board
   58  fails to timely adopt the annual budget a second time, it is
   59  deemed a minor violation and the prior year’s budget shall
   60  continue in effect until a new budget is adopted. A
   61  multicondominium association must adopt a separate budget of
   62  common expenses for each condominium the association operates
   63  and must adopt a separate budget of common expenses for the
   64  association. In addition, if the association maintains limited
   65  common elements with the cost to be shared only by those
   66  entitled to use the limited common elements as provided for in
   67  s. 718.113(1), the budget or a schedule attached to it must show
   68  the amount budgeted for this maintenance. If, after turnover of
   69  control of the association to the unit owners, any of the
   70  expenses listed in s. 718.504(21) are not applicable, they do
   71  not need to be listed.
   72         2.a. In addition to annual operating expenses, the budget
   73  must include reserve accounts for capital expenditures and
   74  deferred maintenance. These accounts must include, but are not
   75  limited to, roof replacement, building painting, and pavement
   76  resurfacing, regardless of the amount of deferred maintenance
   77  expense or replacement cost, and any other item that has a
   78  deferred maintenance expense or replacement cost that exceeds
   79  $10,000. The amount to be reserved for an item is determined by
   80  the association’s most recent structural integrity reserve study
   81  that must be completed by December 31, 2024. If the amount to be
   82  reserved for an item is not in the association’s initial or most
   83  recent structural integrity reserve study or the association has
   84  not completed a structural integrity reserve study, the amount
   85  must be computed using a formula based upon estimated remaining
   86  useful life and estimated replacement cost or deferred
   87  maintenance expense of the reserve item. In a budget adopted by
   88  an association that is required to obtain a structural integrity
   89  reserve study, reserves must be maintained for the items
   90  identified in paragraph (g) for which the association is
   91  responsible pursuant to the declaration of condominium, and the
   92  reserve amount for such items must be based on the findings and
   93  recommendations of the association’s most recent structural
   94  integrity reserve study. With respect to items for which an
   95  estimate of useful life is not readily ascertainable or with an
   96  estimated remaining useful life of greater than 25 years, an
   97  association is not required to reserve replacement costs for
   98  such items, but an association must reserve the amount of
   99  deferred maintenance expense, if any, which is recommended by
  100  the structural integrity reserve study for such items. The
  101  association may adjust replacement reserve assessments annually
  102  to take into account an inflation adjustment and any changes in
  103  estimates or extension of the useful life of a reserve item
  104  caused by deferred maintenance. The members of a unit-owner
  105  controlled association may determine, by a majority vote of the
  106  total voting interests at a duly called meeting of the
  107  association, to provide no reserves or less reserves than
  108  required by this subsection. For a budget adopted on or after
  109  Effective December 31, 2024, the members of a unit-owner
  110  controlled association that must obtain a structural integrity
  111  reserve study may not determine to provide no reserves or less
  112  reserves than required by this subsection for items listed in
  113  paragraph (g), except that members of an association operating a
  114  multicondominium may determine to provide no reserves or less
  115  reserves than required by this subsection if an alternative
  116  funding method has been approved by the division.
  117         b. Before turnover of control of an association by a
  118  developer to unit owners other than a developer under s.
  119  718.301, the developer-controlled association may not vote to
  120  waive the reserves or reduce funding of the reserves. If a
  121  meeting of the unit owners has been called to determine whether
  122  to waive or reduce the funding of reserves and no such result is
  123  achieved or a quorum is not attained, the reserves included in
  124  the budget shall go into effect. After the turnover, the
  125  developer may vote its voting interest to waive or reduce the
  126  funding of reserves.
  127         3. Reserve funds and any interest accruing thereon shall
  128  remain in the reserve account or accounts, and may be used only
  129  for authorized reserve expenditures unless their use for other
  130  purposes is approved in advance by a majority vote of all the
  131  total voting interests at a duly called meeting of the
  132  association. Before turnover of control of an association by a
  133  developer to unit owners other than the developer pursuant to s.
  134  718.301, the developer-controlled association may not vote to
  135  use reserves for purposes other than those for which they were
  136  intended. For a budget adopted on or after Effective December
  137  31, 2024, members of a unit-owner-controlled association that
  138  must obtain a structural integrity reserve study may not vote to
  139  use reserve funds, or any interest accruing thereon, that are
  140  reserved for items listed in paragraph (g) for any other purpose
  141  other than the replacement or deferred maintenance costs of the
  142  components listed in paragraph (g) their intended purpose.
  143         4. The only voting interests that are eligible to vote on
  144  questions that involve waiving or reducing the funding of
  145  reserves, or using existing reserve funds for purposes other
  146  than purposes for which the reserves were intended, are the
  147  voting interests of the units subject to assessment to fund the
  148  reserves in question. Proxy questions relating to waiving or
  149  reducing the funding of reserves or using existing reserve funds
  150  for purposes other than purposes for which the reserves were
  151  intended must contain the following statement in capitalized,
  152  bold letters in a font size larger than any other used on the
  153  face of the proxy ballot: WAIVING OF RESERVES, IN WHOLE OR IN
  154  PART, OR ALLOWING ALTERNATIVE USES OF EXISTING RESERVES MAY
  155  RESULT IN UNIT OWNER LIABILITY FOR PAYMENT OF UNANTICIPATED
  156  SPECIAL ASSESSMENTS REGARDING THOSE ITEMS.
  157         (g) Structural integrity reserve study.—
  158         1. A residential condominium An association must have a
  159  structural integrity reserve study completed at least every 10
  160  years after the condominium’s creation for each building on the
  161  condominium property that is three stories or higher in height
  162  as determined by the Florida Building Code which includes, at a
  163  minimum, a study of the following items as related to the
  164  structural integrity and safety of the building:
  165         a. Roof.
  166         b. Structure, including load-bearing walls and or other
  167  primary structural members and primary structural systems as
  168  those terms are defined in s. 627.706.
  169         c. Floor.
  170         d. Foundation.
  171         e. Fireproofing and fire protection systems.
  172         d.f. Plumbing.
  173         e.g. Electrical systems.
  174         f.h. Waterproofing and exterior painting.
  175         g.i. Windows and exterior doors.
  176         h.j. Any other item that has a deferred maintenance expense
  177  or replacement cost that exceeds $10,000 and the failure to
  178  replace or maintain such item negatively affects the items
  179  listed in sub-subparagraphs a.-g. sub-subparagraphs a.-i., as
  180  determined by the licensed engineer or architect performing the
  181  visual inspection portion of the structural integrity reserve
  182  study.
  183         2. A structural integrity reserve study is based on a
  184  visual inspection of the condominium property. A structural
  185  integrity reserve study may be performed by any person qualified
  186  to perform such study. However, the visual inspection portion of
  187  the structural integrity reserve study must be performed or
  188  verified by an engineer licensed under chapter 471, an architect
  189  licensed under chapter 481, or a person certified as a reserve
  190  specialist or professional reserve analyst by the Community
  191  Associations Institute or the Association of Professional
  192  Reserve Analysts.
  193         3.At a minimum, a structural integrity reserve study must
  194  identify each item of the condominium property being visually
  195  inspected, state the estimated remaining useful life and the
  196  estimated replacement cost or deferred maintenance expense of
  197  each item of the condominium property being visually inspected,
  198  and provide a reserve funding schedule with a recommended annual
  199  reserve amount that achieves the estimated replacement cost or
  200  deferred maintenance expense of each item of condominium
  201  property being visually inspected by the end of the estimated
  202  remaining useful life of the item. The structural integrity
  203  reserve study may recommend that reserves do not need to be
  204  maintained for any item for which an estimate of useful life and
  205  an estimate of replacement cost cannot be determined, or the
  206  study may recommend a deferred maintenance expense amount for
  207  such item. The structural integrity reserve study may recommend
  208  that reserves for replacement costs do not need to be maintained
  209  for any item with an estimated remaining useful life of greater
  210  than 25 years, but the study may recommend a deferred
  211  maintenance expense amount for such item.
  212         4.This paragraph does not apply to buildings less than
  213  three stories in height; single-family, two-family, or three
  214  family dwellings with three or fewer habitable stories above
  215  ground; any portion or component of a building that has not been
  216  submitted to the condominium form of ownership; or any portion
  217  or component of a building that is maintained by a party other
  218  than the association.
  219         5. Before a developer turns over control of an association
  220  to unit owners other than the developer, the developer must have
  221  a structural integrity reserve study completed for each building
  222  on the condominium property that is three stories or higher in
  223  height.
  224         6.3. Associations existing on or before July 1, 2022, which
  225  are controlled by unit owners other than the developer, must
  226  have a structural integrity reserve study completed by December
  227  31, 2024, for each building on the condominium property that is
  228  three stories or higher in height. An association that is
  229  required to complete a milestone inspection in accordance with
  230  s. 553.899 on or before December 31, 2026, may complete the
  231  structural integrity reserve study simultaneously with the
  232  milestone inspection. In no event may the structural integrity
  233  reserve study be completed after December 31, 2026.
  234         7. If the milestone inspection required by s. 553.899, or
  235  an inspection completed for a similar local requirement, was
  236  performed within the past 5 years and meets the requirements of
  237  this paragraph, such inspection may be used in place of the
  238  visual inspection portion of the structural integrity reserve
  239  study.
  240         8.4. If the officers or directors of an association
  241  willfully and knowingly fail fails to complete a structural
  242  integrity reserve study pursuant to this paragraph, such failure
  243  is a breach of an officer’s and director’s fiduciary
  244  relationship to the unit owners under s. 718.111(1).
  245         (h) Mandatory milestone inspections.—If an association is
  246  required to have a milestone inspection performed pursuant to s.
  247  553.899, the association must arrange for the milestone
  248  inspection to be performed and is responsible for ensuring
  249  compliance with the requirements of s. 553.899. The association
  250  is responsible for all costs associated with the milestone
  251  inspection attributable to the portions of the building which
  252  the association is responsible for maintaining under the
  253  governing documents of the association. If the officers or
  254  directors of an association willfully and knowingly fail to have
  255  a milestone inspection performed pursuant to s. 553.899, such
  256  failure is a breach of the officers’ and directors’ fiduciary
  257  relationship to the unit owners under s. 718.111(1)(a). Within
  258  14 days after receipt of a written notice from the local
  259  enforcement agency that a milestone inspection is required, the
  260  association must notify the unit owners of the required
  261  milestone inspection and provide the date by which the milestone
  262  inspection must be completed. Such notice may be given by
  263  electronic submission to unit owners who consent to receive
  264  notice by electronic submission or by posting on the
  265  association’s website. Within 45 days after receiving Upon
  266  completion of a phase one or phase two milestone inspection and
  267  receipt of the inspector-prepared summary of the inspection
  268  report from the architect or engineer who performed the
  269  inspection, the association must distribute a copy of the
  270  inspector-prepared summary of the inspection report to each unit
  271  owner, regardless of the findings or recommendations in the
  272  report, by United States mail or personal delivery at the
  273  mailing address, property address, or any other address of the
  274  owner provided to fulfill the association’s notice requirements
  275  under this chapter and by electronic transmission to the e-mail
  276  address or facsimile number provided to fulfill the
  277  association’s notice requirements to unit owners who previously
  278  consented to receive notice by electronic transmission; must
  279  post a copy of the inspector-prepared summary in a conspicuous
  280  place on the condominium property; and must publish the full
  281  report and inspector-prepared summary on the association’s
  282  website, if the association is required to have a website.
  283         Section 7. Effective July 1, 2027, subsection (5) of
  284  section 718.1255, Florida Statutes, is amended, and paragraph
  285  (d) is added to subsection (1) of that section, to read:
  286         718.1255 Alternative dispute resolution; mediation;
  287  nonbinding arbitration; applicability.—
  288         (1) DEFINITIONS.—As used in this section, the term
  289  “dispute” means any disagreement between two or more parties
  290  that involves:
  291         (d)The failure of a board of administration, when required
  292  by this chapter or an association document, to:
  293         1. Obtain the milestone inspection required under s.
  294  553.899.
  295         2. Obtain a structural integrity reserve study required
  296  under s. 718.112(2)(g).
  297         3. Fund reserves as required for an item identified in s.
  298  718.112(2)(g).
  299         4. Make or provide necessary maintenance or repairs of
  300  condominium property recommended by a milestone inspection or a
  301  structural integrity reserve study.
  302  
  303  “Dispute” does not include any disagreement that primarily
  304  involves: title to any unit or common element; the
  305  interpretation or enforcement of any warranty; the levy of a fee
  306  or assessment, or the collection of an assessment levied against
  307  a party; the eviction or other removal of a tenant from a unit;
  308  alleged breaches of fiduciary duty by one or more directors; or
  309  claims for damages to a unit based upon the alleged failure of
  310  the association to maintain the common elements or condominium
  311  property.
  312         (5) PRESUIT MEDIATION.—In lieu of the initiation of
  313  nonbinding arbitration as provided in subsections (1)-(4), a
  314  party may submit a dispute to presuit mediation in accordance
  315  with s. 720.311; however, election and recall disputes are not
  316  eligible for mediation and such disputes must be arbitrated by
  317  the division or filed in a court of competent jurisdiction.
  318  Disputes identified in paragraph (1)(d) are not subject to
  319  nonbinding arbitration under subsection (4) and must be
  320  submitted to presuit mediation in accordance with s. 720.311.
  321         Section 8. Subsection (1) of section 718.113, Florida
  322  Statutes, is amended to read:
  323         718.113 Maintenance; limitation upon improvement; display
  324  of flag; hurricane shutters and protection; display of religious
  325  decorations.—
  326         (1) Maintenance of the common elements is the
  327  responsibility of the association, except for any maintenance
  328  responsibility for limited common elements assigned to the unit
  329  owner by the declaration. The association shall provide for the
  330  maintenance, repair, and replacement of the condominium property
  331  for which it bears responsibility pursuant to the declaration of
  332  condominium. After turnover of control of the association to the
  333  unit owners, the association must perform any required
  334  maintenance identified by the developer pursuant to s.
  335  718.301(4)(p) and (q) until the association obtains new
  336  maintenance protocols from a licensed professional engineer or
  337  architect or a person certified as a reserve specialist or
  338  professional reserve analyst by the Community Associations
  339  Institute or the Association of Professional Reserve Analysts.
  340  The declaration may provide that certain limited common elements
  341  shall be maintained by those entitled to use the limited common
  342  elements or that the association shall provide the maintenance,
  343  either as a common expense or with the cost shared only by those
  344  entitled to use the limited common elements. If the maintenance
  345  is to be by the association at the expense of only those
  346  entitled to use the limited common elements, the declaration
  347  shall describe in detail the method of apportioning such costs
  348  among those entitled to use the limited common elements, and the
  349  association may use the provisions of s. 718.116 to enforce
  350  payment of the shares of such costs by the unit owners entitled
  351  to use the limited common elements.
  352         Section 9. Present paragraphs (q) and (r) of subsection (4)
  353  of section 718.301, Florida Statutes, are redesignated as
  354  paragraphs (r) and (s), respectively, a new paragraph (q) is
  355  added to that subsection, and paragraph (p) of that subsection
  356  is amended, to read:
  357         718.301 Transfer of association control; claims of defect
  358  by association.—
  359         (4) At the time that unit owners other than the developer
  360  elect a majority of the members of the board of administration
  361  of an association, the developer shall relinquish control of the
  362  association, and the unit owners shall accept control.
  363  Simultaneously, or for the purposes of paragraph (c) not more
  364  than 90 days thereafter, the developer shall deliver to the
  365  association, at the developer’s expense, all property of the
  366  unit owners and of the association which is held or controlled
  367  by the developer, including, but not limited to, the following
  368  items, if applicable, as to each condominium operated by the
  369  association:
  370         (p) Notwithstanding when the certificate of occupancy was
  371  issued or the height of the building, a structural integrity
  372  reserve study a milestone inspection report in compliance with
  373  s. 718.112(2)(g) s. 553.899 included in the official records,
  374  under seal of an architect or engineer authorized to practice in
  375  this state or a person certified as a reserve specialist or
  376  professional reserve analyst by the Community Associations
  377  Institute or the Association of Professional Reserve Analysts,
  378  and attesting to required maintenance, condition, useful life,
  379  and replacement costs of the following applicable condominium
  380  property comprising a turnover inspection report:
  381         1. Roof.
  382         2. Structure, including load-bearing walls and primary
  383  structural members and primary structural systems as those terms
  384  are defined in s. 627.706.
  385         3. Fireproofing and fire protection systems.
  386         4. Plumbing Elevators.
  387         5. Electrical systems Heating and cooling systems.
  388         6. Waterproofing and exterior painting Plumbing.
  389         7. Windows and exterior doors Electrical systems.
  390         8. Swimming pool or spa and equipment.
  391         9. Seawalls.
  392         10. Pavement and parking areas.
  393         11. Drainage systems.
  394         12. Painting.
  395         13. Irrigation systems.
  396         14. Waterproofing.
  397         (q) Notwithstanding when the certificate of occupancy was
  398  issued or the height of the building, a turnover inspection
  399  report included in the official records, under seal of an
  400  architect or engineer authorized to practice in this state or a
  401  person certified as a reserve specialist or professional reserve
  402  analyst by the Community Associations Institute or the
  403  Association of Professional Reserve Analysts, and attesting to
  404  required maintenance, condition, useful life, and replacement
  405  costs of the following applicable condominium property
  406  comprising a turnover inspection report:
  407         1. Elevators.
  408         2. Heating and cooling systems.
  409         3. Swimming pool or spa and equipment.
  410         4. Seawalls.
  411         5. Pavement and parking areas.
  412         6. Drainage systems.
  413         7. Irrigation systems.
  414         Section 10. Paragraph (b) of subsection (1) and paragraph
  415  (a) of subsection (2) of section 718.503, Florida Statutes, are
  416  amended, and paragraph (d) is added to subsection (1) and
  417  paragraph (e) is added to subsection (2) of that section, to
  418  read:
  419         718.503 Developer disclosure prior to sale; nondeveloper
  420  unit owner disclosure prior to sale; voidability.—
  421         (1) DEVELOPER DISCLOSURE.—
  422         (b) Copies of documents to be furnished to prospective
  423  buyer or lessee.—Until such time as the developer has furnished
  424  the documents listed below to a person who has entered into a
  425  contract to purchase a residential unit or lease it for more
  426  than 5 years, the contract may be voided by that person,
  427  entitling the person to a refund of any deposit together with
  428  interest thereon as provided in s. 718.202. The contract may be
  429  terminated by written notice from the proposed buyer or lessee
  430  delivered to the developer within 15 days after the buyer or
  431  lessee receives all of the documents required by this section.
  432  The developer may not close for 15 days after the execution of
  433  the agreement and delivery of the documents to the buyer as
  434  evidenced by a signed receipt for documents unless the buyer is
  435  informed in the 15-day voidability period and agrees to close
  436  before the expiration of the 15 days. The developer shall retain
  437  in his or her records a separate agreement signed by the buyer
  438  as proof of the buyer’s agreement to close before the expiration
  439  of the voidability period. The developer must retain such proof
  440  for a period of 5 years after the date of the closing of the
  441  transaction. The documents to be delivered to the prospective
  442  buyer are the prospectus or disclosure statement with all
  443  exhibits, if the development is subject to s. 718.504, or, if
  444  not, then copies of the following which are applicable:
  445         1. The question and answer sheet described in s. 718.504,
  446  and declaration of condominium, or the proposed declaration if
  447  the declaration has not been recorded, which shall include the
  448  certificate of a surveyor approximately representing the
  449  locations required by s. 718.104.
  450         2. The documents creating the association.
  451         3. The bylaws.
  452         4. The ground lease or other underlying lease of the
  453  condominium.
  454         5. The management contract, maintenance contract, and other
  455  contracts for management of the association and operation of the
  456  condominium and facilities used by the unit owners having a
  457  service term in excess of 1 year, and any management contracts
  458  that are renewable.
  459         6. The estimated operating budget for the condominium and a
  460  schedule of expenses for each type of unit, including fees
  461  assessed pursuant to s. 718.113(1) for the maintenance of
  462  limited common elements where such costs are shared only by
  463  those entitled to use the limited common elements.
  464         7. The lease of recreational and other facilities that will
  465  be used only by unit owners of the subject condominium.
  466         8. The lease of recreational and other common facilities
  467  that will be used by unit owners in common with unit owners of
  468  other condominiums.
  469         9. The form of unit lease if the offer is of a leasehold.
  470         10. Any declaration of servitude of properties serving the
  471  condominium but not owned by unit owners or leased to them or
  472  the association.
  473         11. If the development is to be built in phases or if the
  474  association is to manage more than one condominium, a
  475  description of the plan of phase development or the arrangements
  476  for the association to manage two or more condominiums.
  477         12. If the condominium is a conversion of existing
  478  improvements, the statements and disclosure required by s.
  479  718.616.
  480         13. The form of agreement for sale or lease of units.
  481         14. A copy of the floor plan of the unit and the plot plan
  482  showing the location of the residential buildings and the
  483  recreation and other common areas.
  484         15. A copy of all covenants and restrictions that will
  485  affect the use of the property and are not contained in the
  486  foregoing.
  487         16. If the developer is required by state or local
  488  authorities to obtain acceptance or approval of any dock or
  489  marina facilities intended to serve the condominium, a copy of
  490  any such acceptance or approval acquired by the time of filing
  491  with the division under s. 718.502(1), or a statement that such
  492  acceptance or approval has not been acquired or received.
  493         17. Evidence demonstrating that the developer has an
  494  ownership, leasehold, or contractual interest in the land upon
  495  which the condominium is to be developed.
  496         18. A copy of the inspector-prepared summary of the
  497  milestone inspection report as described in s. 553.899, or a
  498  statement in conspicuous type indicating that the required
  499  milestone inspection described in s. 553.899 has not been
  500  completed or that a milestone inspection is not required, as
  501  applicable ss. 553.899 and 718.301(4)(p).
  502         19. A copy of the association’s most recent structural
  503  integrity reserve study, or a statement in conspicuous type
  504  indicating that the association has not completed a required
  505  structural integrity reserve study has not been completed or
  506  that a structural integrity reserve study is not required, as
  507  applicable.
  508         20.A copy of the turnover inspection report described in
  509  s. 718.301(4)(p) and (q) or a statement in conspicuous type
  510  indicating that a turnover inspection report has not been
  511  completed, as applicable.
  512         (d)Milestone inspection, turnover inspection report, or
  513  structural integrity reserve study.If the association is
  514  required to have completed a milestone inspection as described
  515  in s. 553.899, a turnover inspection report for a turnover
  516  inspection performed on or after July 1, 2023, or a structural
  517  integrity reserve study, and the association has not completed
  518  the milestone inspection, the turnover inspection report, or the
  519  structural integrity reserve study, each contract entered into
  520  after December 31, 2024, for the sale of a residential unit
  521  shall contain in conspicuous type a statement indicating that
  522  the association is required to have a milestone inspection, a
  523  turnover inspection report, or a structural integrity reserve
  524  study and has not completed such inspection, report, or study,
  525  as appropriate. If the association is not required to have a
  526  milestone inspection as described in s. 553.899 or a structural
  527  integrity reserve study, each contract entered into after
  528  December 31, 2024, for the sale of a residential unit shall
  529  contain in conspicuous type a statement indicating that the
  530  association is not required to have a milestone inspection or a
  531  structural integrity reserve study, as appropriate. If the
  532  association has completed a milestone inspection as described in
  533  s. 553.899, a turnover inspection report for a turnover
  534  inspection performed on or after July 1, 2023, or a structural
  535  integrity reserve study, each contract entered into after
  536  December 31, 2024, for the sale of a residential unit shall
  537  contain in conspicuous type:
  538         1. A clause which states: THE BUYER HEREBY ACKNOWLEDGES
  539  THAT BUYER HAS BEEN PROVIDED A CURRENT COPY OF THE INSPECTOR
  540  PREPARED SUMMARY OF THE MILESTONE INSPECTION REPORT AS DESCRIBED
  541  IN SECTION 553.899, FLORIDA STATUTES, IF APPLICABLE; A COPY OF
  542  THE TURNOVER INSPECTION REPORT DESCRIBED IN SECTION
  543  718.301(4)(p) AND (q), FLORIDA STATUTES, IF APPLICABLE; AND A
  544  COPY OF THE ASSOCIATION’S MOST RECENT STRUCTURAL INTEGRITY
  545  RESERVE STUDY DESCRIBED IN SECTIONS 718.103(26) AND
  546  718.112(2)(g), FLORIDA STATUTES, IF APPLICABLE, MORE THAN 15
  547  DAYS, EXCLUDING SATURDAYS, SUNDAYS, AND LEGAL HOLIDAYS, PRIOR TO
  548  EXECUTION OF THIS CONTRACT; and
  549         2. A clause which states: THIS AGREEMENT IS VOIDABLE BY
  550  BUYER BY DELIVERING WRITTEN NOTICE OF THE BUYER’S INTENTION TO
  551  CANCEL WITHIN 15 DAYS, EXCLUDING SATURDAYS, SUNDAYS, AND LEGAL
  552  HOLIDAYS, AFTER THE DATE OF EXECUTION OF THIS AGREEMENT BY THE
  553  BUYER AND RECEIPT BY BUYER OF A CURRENT COPY OF THE INSPECTOR
  554  PREPARED SUMMARY OF THE MILESTONE INSPECTION REPORT AS DESCRIBED
  555  IN SECTION 553.899, FLORIDA STATUTES, IF APPLICABLE; A COPY OF
  556  THE TURNOVER INSPECTION REPORT DESCRIBED IN SECTION
  557  718.301(4)(p) AND (q), FLORIDA STATUTES, IF APPLICABLE; AND A
  558  COPY OF THE ASSOCIATION’S MOST RECENT STRUCTURAL INTEGRITY
  559  RESERVE STUDY DESCRIBED IN SECTIONS 718.103(26) AND
  560  718.112(2)(g), FLORIDA STATUTES, IF APPLICABLE. ANY PURPORTED
  561  WAIVER OF THESE VOIDABILITY RIGHTS SHALL BE OF NO EFFECT. BUYER
  562  MAY EXTEND THE TIME FOR CLOSING FOR A PERIOD OF NOT MORE THAN 15
  563  DAYS, EXCLUDING SATURDAYS, SUNDAYS, AND LEGAL HOLIDAYS, AFTER
  564  THE BUYER RECEIVES A CURRENT COPY OF THE INSPECTOR-PREPARED
  565  SUMMARY OF THE MILESTONE INSPECTION REPORT AS DESCRIBED IN
  566  SECTION 553.899, FLORIDA STATUTES; A COPY OF THE TURNOVER
  567  INSPECTION REPORT DESCRIBED IN SECTION 718.301(4)(p) AND (q),
  568  FLORIDA STATUTES; OR A COPY OF THE ASSOCIATION’S MOST RECENT
  569  STRUCTURAL INTEGRITY RESERVE STUDY DESCRIBED IN SECTIONS
  570  718.103(26) AND 718.112(2)(g), FLORIDA STATUTES, IF REQUESTED IN
  571  WRITING. BUYER’S RIGHT TO VOID THIS AGREEMENT SHALL TERMINATE AT
  572  CLOSING.
  573  
  574  A contract that does not conform to the requirements of this
  575  paragraph is voidable at the option of the purchaser prior to
  576  closing.
  577         (2) NONDEVELOPER DISCLOSURE.—
  578         (a) Each unit owner who is not a developer as defined by
  579  this chapter must comply with this subsection before the sale of
  580  his or her unit. Each prospective purchaser who has entered into
  581  a contract for the purchase of a condominium unit is entitled,
  582  at the seller’s expense, to a current copy of all of the
  583  following:
  584         1. The declaration of condominium.
  585         2. Articles of incorporation of the association.
  586         3. Bylaws and rules of the association.
  587         4. Financial information required by s. 718.111.
  588         5. A copy of the inspector-prepared summary of the
  589  milestone inspection report as described in s. 553.899 ss.
  590  553.899 and 718.301(4)(p), if applicable.
  591         6. The association’s most recent structural integrity
  592  reserve study or a statement that the association has not
  593  completed a structural integrity reserve study.
  594         7. A copy of the inspection report described in s.
  595  718.301(4)(p) and (q) for a turnover inspection performed on or
  596  after July 1, 2023.
  597         8. The document entitled “Frequently Asked Questions and
  598  Answers” required by s. 718.504.
  599         (e) If the association is required to have completed a
  600  milestone inspection as described in s. 553.899, a turnover
  601  inspection report for a turnover inspection performed on or
  602  after July 1, 2023, or a structural integrity reserve study, and
  603  the association has not completed the milestone inspection, the
  604  turnover inspection report, or the structural integrity reserve
  605  study, each contract entered into after December 31, 2024, for
  606  the sale of a residential unit shall contain in conspicuous type
  607  a statement indicating that the association is required to have
  608  a milestone inspection, a turnover inspection report, or a
  609  structural integrity reserve study and has not completed such
  610  inspection, report, or study, as appropriate. If the association
  611  is not required to have a milestone inspection as described in
  612  s. 553.899 or a structural integrity reserve study, each
  613  contract entered into after December 31, 2024, for the sale of a
  614  residential unit shall contain in conspicuous type a statement
  615  indicating that the association is not required to have a
  616  milestone inspection or a structural integrity reserve study, as
  617  appropriate. If the association has completed a milestone
  618  inspection as described in s. 553.899, a turnover inspection
  619  report for a turnover inspection performed on or after July 1,
  620  2023, or a structural integrity reserve study, each contract
  621  entered into after December 31, 2024, for the resale of a
  622  residential unit shall contain in conspicuous type:
  623         1. A clause which states: THE BUYER HEREBY ACKNOWLEDGES
  624  THAT BUYER HAS BEEN PROVIDED A CURRENT COPY OF THE INSPECTOR
  625  PREPARED SUMMARY OF THE MILESTONE INSPECTION REPORT AS DESCRIBED
  626  IN SECTION 553.899, FLORIDA STATUTES, IF APPLICABLE; A COPY OF
  627  THE TURNOVER INSPECTION REPORT DESCRIBED IN SECTION
  628  718.301(4)(p) AND (q), FLORIDA STATUTES, IF APPLICABLE; AND A
  629  COPY OF THE ASSOCIATION’S MOST RECENT STRUCTURAL INTEGRITY
  630  RESERVE STUDY DESCRIBED IN SECTIONS 718.103(26) AND
  631  718.112(2)(g), FLORIDA STATUTES, IF APPLICABLE, MORE THAN 3
  632  DAYS, EXCLUDING SATURDAYS, SUNDAYS, AND LEGAL HOLIDAYS, PRIOR TO
  633  EXECUTION OF THIS CONTRACT; and
  634         2. A clause which states: THIS AGREEMENT IS VOIDABLE BY
  635  BUYER BY DELIVERING WRITTEN NOTICE OF THE BUYER’S INTENTION TO
  636  CANCEL WITHIN 3 DAYS, EXCLUDING SATURDAYS, SUNDAYS, AND LEGAL
  637  HOLIDAYS, AFTER THE DATE OF EXECUTION OF THIS AGREEMENT BY THE
  638  BUYER AND RECEIPT BY BUYER OF A CURRENT COPY OF THE INSPECTOR
  639  PREPARED SUMMARY OF THE MILESTONE INSPECTION REPORT AS DESCRIBED
  640  IN SECTION 553.899, FLORIDA STATUTES, IF APPLICABLE; A COPY OF
  641  THE TURNOVER INSPECTION REPORT DESCRIBED IN SECTION
  642  718.301(4)(p) AND (q), FLORIDA STATUTES, IF APPLICABLE; AND A
  643  COPY OF THE ASSOCIATION’S MOST RECENT STRUCTURAL INTEGRITY
  644  RESERVE STUDY DESCRIBED IN SECTIONS 718.103(26) AND
  645  718.112(2)(g), FLORIDA STATUTES, IF APPLICABLE. ANY PURPORTED
  646  WAIVER OF THESE VOIDABILITY RIGHTS SHALL BE OF NO EFFECT. BUYER
  647  MAY EXTEND THE TIME FOR CLOSING FOR A PERIOD OF NOT MORE THAN 3
  648  DAYS, EXCLUDING SATURDAYS, SUNDAYS, AND LEGAL HOLIDAYS, AFTER
  649  THE BUYER RECEIVES A CURRENT COPY OF THE INSPECTOR-PREPARED
  650  SUMMARY OF THE MILESTONE INSPECTION REPORT AS DESCRIBED IN
  651  SECTION 553.899, FLORIDA STATUTES; A COPY OF THE TURNOVER
  652  INSPECTION REPORT DESCRIBED IN SECTION 718.301(4)(p) AND (q),
  653  FLORIDA STATUTES; OR A COPY OF THE ASSOCIATION’S MOST RECENT
  654  STRUCTURAL INTEGRITY RESERVE STUDY DESCRIBED IN SECTIONS
  655  718.103(26) AND 718.112(2)(g) FLORIDA STATUTES, IF REQUESTED IN
  656  WRITING. BUYER’S RIGHT TO VOID THIS AGREEMENT SHALL TERMINATE AT
  657  CLOSING.
  658  
  659  A contract that does not conform to the requirements of this
  660  paragraph is voidable at the option of the purchaser prior to
  661  closing.
  662         Section 11. Paragraph (a) of subsection (7) and paragraph
  663  (c) of subsection (21) of section 718.504, Florida Statutes, are
  664  amended to read:
  665         718.504 Prospectus or offering circular.—Every developer of
  666  a residential condominium which contains more than 20
  667  residential units, or which is part of a group of residential
  668  condominiums which will be served by property to be used in
  669  common by unit owners of more than 20 residential units, shall
  670  prepare a prospectus or offering circular and file it with the
  671  Division of Florida Condominiums, Timeshares, and Mobile Homes
  672  prior to entering into an enforceable contract of purchase and
  673  sale of any unit or lease of a unit for more than 5 years and
  674  shall furnish a copy of the prospectus or offering circular to
  675  each buyer. In addition to the prospectus or offering circular,
  676  each buyer shall be furnished a separate page entitled
  677  “Frequently Asked Questions and Answers,” which shall be in
  678  accordance with a format approved by the division and a copy of
  679  the financial information required by s. 718.111. This page
  680  shall, in readable language, inform prospective purchasers
  681  regarding their voting rights and unit use restrictions,
  682  including restrictions on the leasing of a unit; shall indicate
  683  whether and in what amount the unit owners or the association is
  684  obligated to pay rent or land use fees for recreational or other
  685  commonly used facilities; shall contain a statement identifying
  686  that amount of assessment which, pursuant to the budget, would
  687  be levied upon each unit type, exclusive of any special
  688  assessments, and which shall further identify the basis upon
  689  which assessments are levied, whether monthly, quarterly, or
  690  otherwise; shall state and identify any court cases in which the
  691  association is currently a party of record in which the
  692  association may face liability in excess of $100,000; and which
  693  shall further state whether membership in a recreational
  694  facilities association is mandatory, and if so, shall identify
  695  the fees currently charged per unit type. The division shall by
  696  rule require such other disclosure as in its judgment will
  697  assist prospective purchasers. The prospectus or offering
  698  circular may include more than one condominium, although not all
  699  such units are being offered for sale as of the date of the
  700  prospectus or offering circular. The prospectus or offering
  701  circular must contain the following information:
  702         (7) A description of the recreational and other facilities
  703  that will be used in common with other condominiums, community
  704  associations, or planned developments which require the payment
  705  of the maintenance and expenses of such facilities, directly or
  706  indirectly, by the unit owners. The description shall include,
  707  but not be limited to, the following:
  708         (a) Each building and facility committed to be built and a
  709  summary description of the structural integrity of each building
  710  for which reserves are required pursuant to s. 718.112(2)(g).
  711  
  712  Descriptions shall include location, areas, capacities, numbers,
  713  volumes, or sizes and may be stated as approximations or
  714  minimums.
  715         (21) An estimated operating budget for the condominium and
  716  the association, and a schedule of the unit owner’s expenses
  717  shall be attached as an exhibit and shall contain the following
  718  information:
  719         (c) The estimated items of expenses of the condominium and
  720  the association, except as excluded under paragraph (b),
  721  including, but not limited to, the following items, which shall
  722  be stated as an association expense collectible by assessments
  723  or as unit owners’ expenses payable to persons other than the
  724  association:
  725         1. Expenses for the association and condominium:
  726         a. Administration of the association.
  727         b. Management fees.
  728         c. Maintenance.
  729         d. Rent for recreational and other commonly used
  730  facilities.
  731         e. Taxes upon association property.
  732         f. Taxes upon leased areas.
  733         g. Insurance.
  734         h. Security provisions.
  735         i. Other expenses.
  736         j. Operating capital.
  737         k. Reserves for all applicable items referenced in s.
  738  718.112(2)(g).
  739         l. Fees payable to the division.
  740         2. Expenses for a unit owner:
  741         a. Rent for the unit, if subject to a lease.
  742         b. Rent payable by the unit owner directly to the lessor or
  743  agent under any recreational lease or lease for the use of
  744  commonly used facilities, which use and payment is a mandatory
  745  condition of ownership and is not included in the common expense
  746  or assessments for common maintenance paid by the unit owners to
  747  the association.
  748  
  749  ====== D I R E C T O R Y  C L A U S E  A M E N D M E N T ======
  750  And the directory clause is amended as follows:
  751         Delete line 518
  752  and insert:
  753         Section 12. Paragraphs (e), (f), (g), and (h) of subsection
  754  (2)
  755  
  756  ================= T I T L E  A M E N D M E N T ================
  757  And the title is amended as follows:
  758         Delete lines 45 - 65
  759  and insert:
  760         requirements relating to budget meetings; revising
  761         condominium association reserve account requirements;
  762         revising requirements relating to waiving reserve
  763         requirements or providing less reserves than required
  764         by law; revising requirements relating to using
  765         reserve funds or interest accrued on reserve funds for
  766         certain purposes; revising requirements for structural
  767         integrity reserve studies and mandatory milestone
  768         inspections; providing applicability; conforming
  769         provisions to changes made by the act; amending s.
  770         718.1255, F.S.; revising the definition of the term
  771         “dispute”; specifying that certain disputes are not
  772         subject to nonbinding arbitration and must be
  773         submitted to presuit mediation; amending s. 718.113,
  774         F.S.; revising requirements relating to maintenance,
  775         repair, and replacement of common elements and
  776         condominium property; amending s. 718.301, F.S.;
  777         revising items that developers are required to deliver
  778         to an association upon relinquishing control of the
  779         association; amending s. 718.503, F.S.; revising the
  780         documents developers are required to provide to
  781         prospective buyers or lessees; revising the documents
  782         that prospective purchasers are entitled to when
  783         purchasing a condominium unit from a unit owner;
  784         requiring specified disclosures relating to milestone
  785         inspections, turnover inspection reports, and
  786         structural integrity reserve studies for certain
  787         contracts entered into after a specified date;
  788         amending s. 718.504, F.S.; revising requirements for
  789         prospectuses and offering circulars; amending s.
  790         719.103, F.S.; revising the