Florida Senate - 2023                          SENATOR AMENDMENT
       Bill No. CS for CS for SB 154
       
       
       
       
       
       
                                Ì403744*Î403744                         
       
                              LEGISLATIVE ACTION                        
                    Senate             .             House              
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                Floor: 4/AD/2R         .                                
             04/11/2023 05:13 PM       .                                
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       Senator Bradley moved the following:
       
    1         Senate Amendment (with title amendment)
    2  
    3         Delete lines 1137 - 1532
    4  and insert:
    5  719.301(4)(p) and (q) until the association obtains new
    6  maintenance protocols from a licensed professional engineer or
    7  architect or a person certified as a reserve specialist or
    8  professional reserve analyst by the Community Associations
    9  Institute or the Association of Professional Reserve Analysts.
   10  The declaration may provide that certain limited common elements
   11  shall be maintained by those entitled to use the limited common
   12  elements or that the association shall provide the maintenance,
   13  either as a common expense or with the cost shared only by those
   14  entitled to use the limited common elements. If the maintenance
   15  is to be by the association at the expense of only those
   16  entitled to use the limited common elements, the declaration
   17  shall describe in detail the method of apportioning such costs
   18  among those entitled to use the limited common elements, and the
   19  association may use the provisions of s. 719.108 to enforce
   20  payment of the shares of such costs by the unit owners entitled
   21  to use the limited common elements.
   22         Section 12. Paragraphs (e), (j), (k), and (l) of subsection
   23  (1) of section 719.106, Florida Statutes, are amended to read:
   24         719.106 Bylaws; cooperative ownership.—
   25         (1) MANDATORY PROVISIONS.—The bylaws or other cooperative
   26  documents shall provide for the following, and if they do not,
   27  they shall be deemed to include the following:
   28         (e) Budget procedures.—
   29         1. The board of administration shall mail, hand deliver, or
   30  electronically transmit to each unit owner at the address last
   31  furnished to the association, a meeting notice and copies of the
   32  proposed annual budget of common expenses to the unit owners not
   33  less than 14 days prior to the meeting at which the budget will
   34  be considered. Evidence of compliance with this 14-day notice
   35  must be made by an affidavit executed by an officer of the
   36  association or the manager or other person providing notice of
   37  the meeting and filed among the official records of the
   38  association. The meeting must be open to the unit owners.
   39         2. If an adopted budget requires assessment against the
   40  unit owners in any fiscal or calendar year which exceeds 115
   41  percent of the assessments for the preceding year, the board
   42  upon written application of 10 percent of the voting interests
   43  to the board, shall call a special meeting of the unit owners
   44  within 30 days, upon not less than 10 days’ written notice to
   45  each unit owner. At the special meeting, unit owners shall
   46  consider and enact a budget. Unless the bylaws require a larger
   47  vote, the adoption of the budget requires a vote of not less
   48  than a majority of all the voting interests.
   49         3. The board of administration may, in any event, propose a
   50  budget to the unit owners at a meeting of members or by writing,
   51  and if the budget or proposed budget is approved by the unit
   52  owners at the meeting or by a majority of all voting interests
   53  in writing, the budget is adopted. If a meeting of the unit
   54  owners has been called and a quorum is not attained or a
   55  substitute budget is not adopted by the unit owners, the budget
   56  adopted by the board of directors goes into effect as scheduled.
   57         4. In determining whether assessments exceed 115 percent of
   58  similar assessments for prior years, any authorized provisions
   59  for reasonable reserves for repair or replacement of cooperative
   60  property, anticipated expenses by the association which are not
   61  anticipated to be incurred on a regular or annual basis,
   62  insurance premiums, or assessments for betterments to the
   63  cooperative property must be excluded from computation. However,
   64  as long as the developer is in control of the board of
   65  administration, the board may not impose an assessment for any
   66  year greater than 115 percent of the prior fiscal or calendar
   67  year’s assessment without approval of a majority of all voting
   68  interests.
   69         (j) Annual budget.—
   70         1. The proposed annual budget of common expenses must be
   71  detailed and must show the amounts budgeted by accounts and
   72  expense classifications, including, if applicable, but not
   73  limited to, those expenses listed in s. 719.504(20). The board
   74  of administration shall adopt the annual budget at least 14 days
   75  before the start of the association’s fiscal year. In the event
   76  that the board fails to timely adopt the annual budget a second
   77  time, it is deemed a minor violation and the prior year’s budget
   78  shall continue in effect until a new budget is adopted.
   79         2. In addition to annual operating expenses, the budget
   80  must include reserve accounts for capital expenditures and
   81  deferred maintenance. These accounts must include, but not be
   82  limited to, roof replacement, building painting, and pavement
   83  resurfacing, regardless of the amount of deferred maintenance
   84  expense or replacement cost, and for any other items for which
   85  the deferred maintenance expense or replacement cost exceeds
   86  $10,000. The amount to be reserved for an item is determined by
   87  the association’s most recent structural integrity reserve study
   88  that must be completed by December 31, 2024. If the amount to be
   89  reserved for an item is not in the association’s initial or most
   90  recent structural integrity reserve study or the association has
   91  not completed a structural integrity reserve study, the amount
   92  must be computed by means of a formula which is based upon
   93  estimated remaining useful life and estimated replacement cost
   94  or deferred maintenance expense of the reserve item. In a budget
   95  adopted by an association that is required to obtain a
   96  structural integrity reserve study, reserves must be maintained
   97  for the items identified in paragraph (k) for which the
   98  association is responsible pursuant to the declaration, and the
   99  reserve amount for such items must be based on the findings and
  100  recommendations of the association’s most recent structural
  101  integrity reserve study. With respect to items for which an
  102  estimate of useful life is not readily ascertainable or with an
  103  estimated remaining useful life of greater than 25 years, an
  104  association is not required to reserve replacement costs for
  105  such items, but an association must reserve the amount of
  106  deferred maintenance expense, if any, which is recommended by
  107  the structural integrity reserve study for such items. The
  108  association may adjust replacement reserve assessments annually
  109  to take into account an inflation adjustment and any changes in
  110  estimates or extension of the useful life of a reserve item
  111  caused by deferred maintenance. The members of a unit-owner
  112  controlled association may determine, by a majority vote of the
  113  total voting interests at a duly called meeting of the
  114  association, for a fiscal year to provide no reserves or
  115  reserves less adequate than required by this subsection. Before
  116  turnover of control of an association by a developer to unit
  117  owners other than a developer under s. 719.301, the developer
  118  controlled association may not vote to waive the reserves or
  119  reduce funding of the reserves. For a budget adopted on or after
  120  Effective December 31, 2024, a unit-owner-controlled association
  121  that must obtain a structural integrity reserve study may not
  122  determine to provide no reserves or reserves less adequate than
  123  required by this paragraph for items listed in paragraph (k). If
  124  a meeting of the unit owners has been called to determine to
  125  provide no reserves, or reserves less adequate than required,
  126  and such result is not attained or a quorum is not attained, the
  127  reserves as included in the budget shall go into effect.
  128         3. Reserve funds and any interest accruing thereon shall
  129  remain in the reserve account or accounts, and shall be used
  130  only for authorized reserve expenditures unless their use for
  131  other purposes is approved in advance by a vote of the majority
  132  of the total voting interests, voting in person or by limited
  133  proxy at a duly called meeting of the association. Before
  134  turnover of control of an association by a developer to unit
  135  owners other than the developer under s. 719.301, the developer
  136  may not vote to use reserves for purposes other than that for
  137  which they were intended. For a budget adopted on or after
  138  Effective December 31, 2024, members of a unit-owner-controlled
  139  association that must obtain a structural integrity reserve
  140  study may not vote to use reserve funds, or any interest
  141  accruing thereon, that are reserved for items listed in
  142  paragraph (k) for purposes other than the replacement or
  143  deferred maintenance costs of the components listed in paragraph
  144  (k) their intended purpose.
  145         (k) Structural integrity reserve study.—
  146         1. A residential cooperative An association must have a
  147  structural integrity reserve study completed at least every 10
  148  years for each building on the cooperative property that is
  149  three stories or higher in height as determined by the Florida
  150  Building Code that includes, at a minimum, a study of the
  151  following items as related to the structural integrity and
  152  safety of the building:
  153         a. Roof.
  154         b. Structure, including load-bearing walls and or other
  155  primary structural members and primary structural systems as
  156  those terms are defined in s. 627.706.
  157         c. Floor.
  158         d. Foundation.
  159         e. Fireproofing and fire protection systems.
  160         d.f. Plumbing.
  161         e.g. Electrical systems.
  162         f.h. Waterproofing and exterior painting.
  163         g.i. Windows and exterior doors.
  164         h.j. Any other item that has a deferred maintenance expense
  165  or replacement cost that exceeds $10,000 and the failure to
  166  replace or maintain such item negatively affects the items
  167  listed in sub-subparagraphs a.-g. sub-subparagraphs a.-i., as
  168  determined by the licensed engineer or architect performing the
  169  visual inspection portion of the structural integrity reserve
  170  study.
  171         2. A structural integrity reserve study is based on a
  172  visual inspection of the cooperative property. A structural
  173  integrity reserve study may be performed by any person qualified
  174  to perform such study. However, the visual inspection portion of
  175  the structural integrity reserve study must be performed or
  176  verified by an engineer licensed under chapter 471, an architect
  177  licensed under chapter 481, or a person certified as a reserve
  178  specialist or professional reserve analyst by the Community
  179  Associations Institute or the Association of Professional
  180  Reserve Analysts.
  181         3.At a minimum, a structural integrity reserve study must
  182  identify each item of the cooperative property being visually
  183  inspected, state the estimated remaining useful life and the
  184  estimated replacement cost or deferred maintenance expense of
  185  each item of the cooperative property being visually inspected,
  186  and provide a reserve funding schedule with a recommended annual
  187  reserve amount that achieves the estimated replacement cost or
  188  deferred maintenance expense of each item of cooperative
  189  property being visually inspected by the end of the estimated
  190  remaining useful life of the item. The structural integrity
  191  reserve study may recommend that reserves do not need to be
  192  maintained for any item for which an estimate of useful life and
  193  an estimate of replacement cost cannot be determined, or the
  194  study may recommend a deferred maintenance expense amount for
  195  such item. The structural integrity reserve study may recommend
  196  that reserves for replacement costs do not need to be maintained
  197  for any item with an estimated remaining useful life of greater
  198  than 25 years, but the study may recommend a deferred
  199  maintenance expense amount for such item.
  200         4.This paragraph does not apply to buildings less than
  201  three stories in height; single-family, two-family, or three
  202  family dwellings with three or fewer habitable stories above
  203  ground; any portion or component of a building that has not been
  204  submitted to the cooperative form of ownership; or any portion
  205  or component of a building that is maintained by a party other
  206  than the association.
  207         5. Before a developer turns over control of an association
  208  to unit owners other than the developer, the developer must have
  209  a structural integrity reserve study completed for each building
  210  on the cooperative property that is three stories or higher in
  211  height.
  212         6.3. Associations existing on or before July 1, 2022, which
  213  are controlled by unit owners other than the developer, must
  214  have a structural integrity reserve study completed by December
  215  31, 2024, for each building on the cooperative property that is
  216  three stories or higher in height. An association that is
  217  required to complete a milestone inspection on or before
  218  December 31, 2026, in accordance with s. 553.899 may complete
  219  the structural integrity reserve study simultaneously with the
  220  milestone inspection. In no event may the structural integrity
  221  reserve study be completed after December 31, 2026.
  222         7. If the milestone inspection required by s. 553.899, or
  223  an inspection completed for a similar local requirement, was
  224  performed within the past 5 years and meets the requirements of
  225  this paragraph, such inspection may be used in place of the
  226  visual inspection portion of the structural integrity reserve
  227  study.
  228         8.4. If the officers or directors of an association
  229  willfully and knowingly fail fails to complete a structural
  230  integrity reserve study pursuant to this paragraph, such failure
  231  is a breach of an officer’s and director’s fiduciary
  232  relationship to the unit owners under s. 719.104(9) s.
  233  719.104(8).
  234         (l) Mandatory milestone inspections.—If an association is
  235  required to have a milestone inspection performed pursuant to s.
  236  553.899, the association must arrange for the milestone
  237  inspection to be performed and is responsible for ensuring
  238  compliance with the requirements of s. 553.899. The association
  239  is responsible for all costs associated with the milestone
  240  inspection attributable to the portions of the building which
  241  the association is responsible for maintaining under the
  242  governing documents of the association. If the officers or
  243  directors of an association willfully and knowingly fail to have
  244  a milestone inspection performed pursuant to s. 553.899, such
  245  failure is a breach of the officers’ and directors’ fiduciary
  246  relationship to the unit owners under s. 719.104(9)(a) s.
  247  719.104(8)(a). Within 14 days after receipt of a written notice
  248  from the local enforcement agency that a milestone inspection is
  249  required, the association must notify the unit owners of the
  250  required milestone inspection and provide the date by which the
  251  milestone inspection must be completed. Such notice may be given
  252  by electronic submission to unit owners who consent to receive
  253  notice by electronic submission or by posting on the
  254  association’s website. Within 45 days after receiving Upon
  255  completion of a phase one or phase two milestone inspection and
  256  receipt of the inspector-prepared summary of the inspection
  257  report from the architect or engineer who performed the
  258  inspection, the association must distribute a copy of the
  259  inspector-prepared summary of the inspection report to each unit
  260  owner, regardless of the findings or recommendations in the
  261  report, by United States mail or personal delivery at the
  262  mailing address, property address, or any other address of the
  263  owner provided to fulfill the association’s notice requirements
  264  under this chapter and by electronic transmission to the e-mail
  265  address or facsimile number provided to fulfill the
  266  association’s notice requirements to unit owners who previously
  267  consented to receive notice by electronic transmission; must
  268  post a copy of the inspector-prepared summary in a conspicuous
  269  place on the cooperative property; and must publish the full
  270  report and inspector-prepared summary on the association’s
  271  website, if the association is required to have a website.
  272         Section 13. Present paragraph (q) of subsection (4) of
  273  section 719.301, Florida Statutes, is redesignated as paragraph
  274  (r), a new paragraph (q) is added to that subsection, and
  275  paragraph (p) that subsection is amended, to read:
  276         719.301 Transfer of association control.—
  277         (4) When unit owners other than the developer elect a
  278  majority of the members of the board of administration of an
  279  association, the developer shall relinquish control of the
  280  association, and the unit owners shall accept control.
  281  Simultaneously, or for the purpose of paragraph (c) not more
  282  than 90 days thereafter, the developer shall deliver to the
  283  association, at the developer’s expense, all property of the
  284  unit owners and of the association held or controlled by the
  285  developer, including, but not limited to, the following items,
  286  if applicable, as to each cooperative operated by the
  287  association:
  288         (p) Notwithstanding when the certificate of occupancy was
  289  issued or the height of the building, a structural integrity
  290  reserve study milestone inspection report in compliance with s.
  291  719.106(1)(k) s. 553.899 included in the official records, under
  292  seal of an architect or engineer authorized to practice in this
  293  state or a person certified as a reserve specialist or
  294  professional reserve analyst by the Community Associations
  295  Institute or the Association of Professional Reserve Analysts,
  296  attesting to required maintenance, condition, useful life, and
  297  replacement costs of the following applicable cooperative
  298  property comprising a turnover inspection report:
  299         1. Roof.
  300         2. Structure, including load-bearing walls and primary
  301  structural members and primary structural systems as those terms
  302  are defined in s. 627.706.
  303         3. Fireproofing and fire protection systems.
  304         4. Plumbing Elevators.
  305         5. Electrical systems Heating and cooling systems.
  306         6. Waterproofing and exterior painting Plumbing.
  307         7. Windows and exterior doors Electrical systems.
  308         8. Swimming pool or spa and equipment.
  309         9. Seawalls.
  310         10. Pavement and parking areas.
  311         11. Drainage systems.
  312         12. Painting.
  313         13. Irrigation systems.
  314         14. Waterproofing.
  315         (q) Notwithstanding when the certificate of occupancy was
  316  issued or the height of the building, a turnover inspection
  317  report included in the official records, under seal of an
  318  architect or engineer authorized to practice in this state or a
  319  person certified as a reserve specialist or professional reserve
  320  analyst by the Community Associations Institute or the
  321  Association of Professional Reserve Analysts, and attesting to
  322  required maintenance, condition, useful life, and replacement
  323  costs of the following applicable cooperative property
  324  comprising a turnover inspection report:
  325         1. Elevators.
  326         2. Heating and cooling systems.
  327         3. Swimming pool or spa and equipment.
  328         4. Seawalls.
  329         5. Pavement and parking areas.
  330         6. Drainage systems.
  331         7. Irrigation systems.
  332         Section 14. Paragraph (b) of subsection (1) and paragraph
  333  (a) of subsection (2) of section 719.503, Florida Statutes, are
  334  amended, and paragraph (d) is added to subsection (1) and
  335  paragraph (d) is added to subsection (2) of that section, to
  336  read:
  337         719.503 Disclosure prior to sale.—
  338         (1) DEVELOPER DISCLOSURE.—
  339         (b) Copies of documents to be furnished to prospective
  340  buyer or lessee.—Until such time as the developer has furnished
  341  the documents listed below to a person who has entered into a
  342  contract to purchase a unit or lease it for more than 5 years,
  343  the contract may be voided by that person, entitling the person
  344  to a refund of any deposit together with interest thereon as
  345  provided in s. 719.202. The contract may be terminated by
  346  written notice from the proposed buyer or lessee delivered to
  347  the developer within 15 days after the buyer or lessee receives
  348  all of the documents required by this section. The developer may
  349  not close for 15 days after the execution of the agreement and
  350  delivery of the documents to the buyer as evidenced by a receipt
  351  for documents signed by the buyer unless the buyer is informed
  352  in the 15-day voidability period and agrees to close before the
  353  expiration of the 15 days. The developer shall retain in his or
  354  her records a separate signed agreement as proof of the buyer’s
  355  agreement to close before the expiration of the voidability
  356  period. The developer must retain such proof for a period of 5
  357  years after the date of the closing transaction. The documents
  358  to be delivered to the prospective buyer are the prospectus or
  359  disclosure statement with all exhibits, if the development is
  360  subject to s. 719.504, or, if not, then copies of the following
  361  which are applicable:
  362         1. The question and answer sheet described in s. 719.504,
  363  and cooperative documents, or the proposed cooperative documents
  364  if the documents have not been recorded, which shall include the
  365  certificate of a surveyor approximately representing the
  366  locations required by s. 719.104.
  367         2. The documents creating the association.
  368         3. The bylaws.
  369         4. The ground lease or other underlying lease of the
  370  cooperative.
  371         5. The management contract, maintenance contract, and other
  372  contracts for management of the association and operation of the
  373  cooperative and facilities used by the unit owners having a
  374  service term in excess of 1 year, and any management contracts
  375  that are renewable.
  376         6. The estimated operating budget for the cooperative and a
  377  schedule of expenses for each type of unit, including fees
  378  assessed to a shareholder who has exclusive use of limited
  379  common areas, where such costs are shared only by those entitled
  380  to use such limited common areas.
  381         7. The lease of recreational and other facilities that will
  382  be used only by unit owners of the subject cooperative.
  383         8. The lease of recreational and other common areas that
  384  will be used by unit owners in common with unit owners of other
  385  cooperatives.
  386         9. The form of unit lease if the offer is of a leasehold.
  387         10. Any declaration of servitude of properties serving the
  388  cooperative but not owned by unit owners or leased to them or
  389  the association.
  390         11. If the development is to be built in phases or if the
  391  association is to manage more than one cooperative, a
  392  description of the plan of phase development or the arrangements
  393  for the association to manage two or more cooperatives.
  394         12. If the cooperative is a conversion of existing
  395  improvements, the statements and disclosure required by s.
  396  719.616.
  397         13. The form of agreement for sale or lease of units.
  398         14. A copy of the floor plan of the unit and the plot plan
  399  showing the location of the residential buildings and the
  400  recreation and other common areas.
  401         15. A copy of all covenants and restrictions that will
  402  affect the use of the property and are not contained in the
  403  foregoing.
  404         16. If the developer is required by state or local
  405  authorities to obtain acceptance or approval of any dock or
  406  marina facilities intended to serve the cooperative, a copy of
  407  any such acceptance or approval acquired by the time of filing
  408  with the division pursuant to s. 719.502(1) or a statement that
  409  such acceptance or approval has not been acquired or received.
  410         17. Evidence demonstrating that the developer has an
  411  ownership, leasehold, or contractual interest in the land upon
  412  which the cooperative is to be developed.
  413         18. A copy of the inspector-prepared summary of the
  414  milestone inspection report as described in s. 553.899 ss.
  415  553.899 and 719.301(4)(p), or a statement in conspicuous type
  416  indicating that the required milestone inspection described in
  417  s. 553.899 has not been completed or that a milestone inspection
  418  is not required, as if applicable.
  419         19. A copy of the association’s most recent structural
  420  integrity reserve study or a statement in conspicuous type
  421  indicating that the association has not completed a required
  422  structural integrity reserve study has not been completed or
  423  that a structural integrity reserve study is not required, as
  424  applicable.
  425         20.A copy of the turnover inspection report described in
  426  s. 719.301(4)(p) and (q) or a statement in conspicuous type
  427  indicating that a turnover inspection report has not been
  428  completed, as applicable.
  429         (d)Milestone inspection, turnover inspection report, or
  430  structural integrity reserve study.—If the association is
  431  required to have completed a milestone inspection as described
  432  in s. 553.899, a turnover inspection report for a turnover
  433  inspection performed on or after July 1, 2023, or a structural
  434  integrity reserve study, and the association has not completed
  435  the milestone inspection, the turnover inspection report, or the
  436  structural integrity reserve study, each contract entered into
  437  after December 31, 2024, for the sale of a residential unit
  438  shall contain in conspicuous type a statement indicating that
  439  the association is required to have a milestone inspection, a
  440  turnover inspection report, or a structural integrity reserve
  441  study and has not completed such inspection, report, or study,
  442  as appropriate. If the association is not required to have a
  443  milestone inspection as described in s. 553.899 or a structural
  444  integrity reserve study, each contract entered into after
  445  December 31, 2024, for the sale of a residential unit shall
  446  contain in conspicuous type a statement indicating that the
  447  association is not required to have a milestone inspection or a
  448  structural integrity reserve study, as appropriate. If the
  449  association has completed a milestone inspection as described in
  450  s. 553.899, a turnover inspection report for a turnover
  451  inspection performed on or after July 1, 2023, or a structural
  452  integrity reserve study, each contract entered into after
  453  December 31, 2024, for the sale of a residential unit shall
  454  contain in conspicuous type:
  455         1. A clause which states: THE BUYER HEREBY ACKNOWLEDGES
  456  THAT BUYER HAS BEEN PROVIDED A CURRENT COPY OF THE INSPECTOR
  457  PREPARED SUMMARY OF THE MILESTONE INSPECTION REPORT AS DESCRIBED
  458  IN SECTION 553.899, FLORIDA STATUTES, IF APPLICABLE; A COPY OF
  459  THE TURNOVER INSPECTION REPORT DESCRIBED IN SECTION
  460  719.301(4)(p) AND (q), FLORIDA STATUTES, IF APPLICABLE; AND A
  461  COPY OF THE ASSOCIATION’S MOST RECENT STRUCTURAL INTEGRITY
  462  RESERVE STUDY DESCRIBED IN SECTIONS 719.103(24) AND
  463  719.106(1)(k), FLORIDA STATUTES, IF APPLICABLE, MORE THAN 15
  464  DAYS, EXCLUDING SATURDAYS, SUNDAYS, AND LEGAL HOLIDAYS, PRIOR TO
  465  EXECUTION OF THIS CONTRACT; and
  466         2. A clause which states: THIS AGREEMENT IS VOIDABLE BY
  467  BUYER BY DELIVERING WRITTEN NOTICE OF THE BUYER’S INTENTION TO
  468  CANCEL WITHIN 15 DAYS, EXCLUDING SATURDAYS, SUNDAYS, AND LEGAL
  469  HOLIDAYS, AFTER THE DATE OF EXECUTION OF THIS AGREEMENT BY THE
  470  BUYER AND RECEIPT BY BUYER OF A CURRENT COPY OF THE INSPECTOR
  471  PREPARED SUMMARY OF THE MILESTONE INSPECTION REPORT AS DESCRIBED
  472  IN SECTION 553.899, FLORIDA STATUTES, IF APPLICABLE; A COPY OF
  473  THE TURNOVER INSPECTION REPORT DESCRIBED IN SECTION
  474  719.301(4)(p) AND (q), FLORIDA STATUTES, IF APPLICABLE; AND A
  475  COPY OF THE ASSOCIATION’S MOST RECENT STRUCTURAL INTEGRITY
  476  RESERVE STUDY DESCRIBED IN SECTIONS 719.103(24) AND
  477  719.106(1)(k), FLORIDA STATUTES, IF APPLICABLE. ANY PURPORTED
  478  WAIVER OF THESE VOIDABILITY RIGHTS SHALL BE OF NO EFFECT. BUYER
  479  MAY EXTEND THE TIME FOR CLOSING FOR A PERIOD OF NOT MORE THAN 15
  480  DAYS, EXCLUDING SATURDAYS, SUNDAYS, AND LEGAL HOLIDAYS, AFTER
  481  THE BUYER RECEIVES A CURRENT COPY OF THE INSPECTOR-PREPARED
  482  SUMMARY OF THE MILESTONE INSPECTION REPORT AS DESCRIBED IN
  483  SECTION 553.899, FLORIDA STATUTES; A COPY OF THE TURNOVER
  484  INSPECTION REPORT DESCRIBED IN SECTION 719.301(4)(p) AND (q),
  485  FLORIDA STATUTES; OR A COPY OF THE ASSOCIATION’S MOST RECENT
  486  STRUCTURAL INTEGRITY RESERVE STUDY DESCRIBED IN SECTIONS
  487  719.103(24) AND 719.106(1)(k), FLORIDA STATUTES, IF REQUESTED IN
  488  WRITING. BUYER’S RIGHT TO VOID THIS AGREEMENT SHALL TERMINATE AT
  489  CLOSING.
  490  
  491  A contract that does not conform to the requirements of this
  492  paragraph is voidable at the option of the purchaser prior to
  493  closing.
  494         (2) NONDEVELOPER DISCLOSURE.—
  495         (a) Each unit owner who is not a developer as defined by
  496  this chapter must comply with this subsection before the sale of
  497  his or her interest in the association. Each prospective
  498  purchaser who has entered into a contract for the purchase of an
  499  interest in a cooperative is entitled, at the seller’s expense,
  500  to a current copy of all of the following:
  501         1. The articles of incorporation of the association.
  502         2. The bylaws and rules of the association.
  503         3. A copy of the question and answer sheet as provided in
  504  s. 719.504.
  505         4. A copy of the inspector-prepared summary of the
  506  milestone inspection report as described in s. 553.899 ss.
  507  553.899 and 719.301(4)(p), if applicable.
  508         5. A copy of the association’s most recent structural
  509  integrity reserve study or a statement that the association has
  510  not completed a structural integrity reserve study.
  511         6.A copy of the inspection report described in s.
  512  719.301(4)(p) and (q) for a turnover inspection performed on or
  513  after July 1, 2023.
  514         (d)If the association is required to have completed a
  515  milestone inspection as described in s. 553.899, a turnover
  516  inspection report for a turnover inspection performed on or
  517  after July 1, 2023, or a structural integrity reserve study, and
  518  the association has not completed the milestone inspection, the
  519  turnover inspection report, or the structural integrity reserve
  520  study, each contract entered into after December 31, 2024, for
  521  the sale of a residential unit shall contain in conspicuous type
  522  a statement indicating that the association is required to have
  523  a milestone inspection, a turnover inspection report, or a
  524  structural integrity reserve study and has not completed such
  525  inspection, report, or study, as appropriate. If the association
  526  is not required to have a milestone inspection as described in
  527  s. 553.899 or a structural integrity reserve study, each
  528  contract entered into after December 31, 2024, for the sale of a
  529  residential unit shall contain in conspicuous type a statement
  530  indicating that the association is not required to have a
  531  milestone inspection or a structural integrity reserve study, as
  532  appropriate. If the association has completed a milestone
  533  inspection as described in s. 553.899, a turnover inspection
  534  report for a turnover inspection performed on or after July 1,
  535  2023, or a structural integrity reserve study, each contract
  536  entered into after December 31, 2024, for the resale of a
  537  residential unit shall 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  719.301(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 719.103(24) AND
  546  719.106(1)(k), FLORIDA STATUTES, IF APPLICABLE, MORE THAN 3
  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 3 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  719.301(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 719.103(24) AND
  560  719.106(1)(k), 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 3
  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 719.301(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  719.103(24) AND 719.106(1)(k), 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         Section 15. Paragraph (a) of subsection (7) and paragraph
  578  (c) of subsection (20) of section 719.504, Florida Statutes, are
  579  amended to read:
  580         719.504 Prospectus or offering circular.—Every developer of
  581  a residential cooperative which contains more than 20
  582  residential units, or which is part of a group of residential
  583  cooperatives which will be served by property to be used in
  584  common by unit owners of more than 20 residential units, shall
  585  prepare a prospectus or offering circular and file it with the
  586  Division of Florida Condominiums, Timeshares, and Mobile Homes
  587  prior to entering into an enforceable contract of purchase and
  588  sale of any unit or lease of a unit for more than 5 years and
  589  shall furnish a copy of the prospectus or offering circular to
  590  each buyer. In addition to the prospectus or offering circular,
  591  each buyer shall be furnished a separate page entitled
  592  “Frequently Asked Questions and Answers,” which must be in
  593  accordance with a format approved by the division. This page
  594  must, in readable language: inform prospective purchasers
  595  regarding their voting rights and unit use restrictions,
  596  including restrictions on the leasing of a unit; indicate
  597  whether and in what amount the unit owners or the association is
  598  obligated to pay rent or land use fees for recreational or other
  599  commonly used facilities; contain a statement identifying that
  600  amount of assessment which, pursuant to the budget, would be
  601  levied upon each unit type, exclusive of any special
  602  assessments, and which identifies the basis upon which
  603  assessments are levied, whether monthly, quarterly, or
  604  otherwise; state and identify any court cases in which the
  605  association is currently a party of record in which the
  606  association may face liability in excess of $100,000; and state
  607  whether membership in a recreational facilities association is
  608  mandatory and, if so, identify the fees currently charged per
  609  unit type. The division shall by rule require such other
  610  disclosure as in its judgment will assist prospective
  611  purchasers. The prospectus or offering circular may include more
  612  than one cooperative, although not all such units are being
  613  offered for sale as of the date of the prospectus or offering
  614  circular. The prospectus or offering circular must contain the
  615  following information:
  616         (7) A description of the recreational and other facilities
  617  that will be used in common with other cooperatives, community
  618  associations, or planned developments which require the payment
  619  of the maintenance and expenses of such facilities, directly or
  620  indirectly, by the unit owners. The description shall include,
  621  but not be limited to, the following:
  622         (a) Each building and facility committed to be built and a
  623  summary description of the structural integrity of each building
  624  for which reserves are required pursuant to s. 719.106(1)(k).
  625  
  626  Descriptions shall include location, areas, capacities, numbers,
  627  volumes, or sizes and may be stated as approximations or
  628  minimums.
  629         (20) An estimated operating budget for the cooperative and
  630  the association, and a schedule of the unit owner’s expenses
  631  shall be attached as an exhibit and shall contain the following
  632  information:
  633         (c) The estimated items of expenses of the cooperative and
  634  the association, except as excluded under paragraph (b),
  635  including, but not limited to, the following items, which shall
  636  be stated as an association expense collectible by assessments
  637  or as unit owners’ expenses payable to persons other than the
  638  association:
  639         1. Expenses for the association and cooperative:
  640         a. Administration of the association.
  641         b. Management fees.
  642         c. Maintenance.
  643         d. Rent for recreational and other commonly used areas.
  644         e. Taxes upon association property.
  645         f. Taxes upon leased areas.
  646         g. Insurance.
  647         h. Security provisions.
  648         i. Other expenses.
  649         j. Operating capital.
  650         k. Reserves for all applicable items referenced in s.
  651  719.106(1)(k).
  652         l. Fee payable to the division.
  653         2. Expenses for a unit owner:
  654         a. Rent for the unit, if subject to a lease.
  655         b. Rent payable by the unit owner directly to the lessor or
  656  agent under any recreational lease or lease for the use of
  657  commonly used areas, which use and payment are a mandatory
  658  condition of ownership and are not included in the common
  659  expense or assessments for common maintenance paid by the unit
  660  owners to the association.
  661  
  662  ================= T I T L E  A M E N D M E N T ================
  663  And the title is amended as follows:
  664         Delete lines 71 - 84
  665  and insert:
  666         revising requirements relating to budget procedures;
  667         revising cooperative association reserve account
  668         requirements; revising requirements relating to
  669         waiving reserve requirements or providing less
  670         reserves than required by law; revising a prohibition
  671         on using reserve funds or interest accrued on reserve
  672         funds for certain purposes; revising requirements for
  673         structural integrity reserve studies and mandatory
  674         milestone inspections; providing applicability;
  675         conforming provisions to changes made by the act;
  676         amending s. 719.301, F.S.; revising items that
  677         developers are required to deliver to an association
  678         upon relinquishing control of the association;
  679         amending s. 719.503, F.S.; revising the types of
  680         documents developers are required to provide to
  681         prospective buyers and lessees; revising the documents
  682         that a prospective purchaser is entitled to when
  683         purchasing an interest in cooperative from a unit
  684         owner; requiring specified disclosures relating to
  685         milestone inspections, turnover inspection reports,
  686         and structural integrity reserve studies for certain
  687         contracts entered into after a specified date;
  688         amending s. 719.504, F.S.; revising requirements for
  689         prospectuses and offering circulars;