Florida Senate - 2023                          SENATOR AMENDMENT
       Bill No. CS for CS for SB 154
       
       
       
       
       
       
                                Ì6336260Î633626                         
       
                              LEGISLATIVE ACTION                        
                    Senate             .             House              
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                  Floor: WD            .                                
             04/10/2023 02:06 PM       .                                
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       Senator Bradley moved the following:
       
    1         Senate Amendment (with title amendment)
    2  
    3         Delete lines 1197 - 1313
    4  and insert:
    5  determine, by a majority vote of the total voting interests of
    6  the association at a duly called meeting of the association, for
    7  a fiscal year to provide no reserves or reserves less adequate
    8  than required by this subsection. Before turnover of control of
    9  an association by a developer to unit owners other than a
   10  developer under s. 719.301, the developer-controlled association
   11  may not vote to waive the reserves or reduce funding of the
   12  reserves. For a budget adopted on or after Effective December
   13  31, 2024, a unit-owner-controlled association that must obtain a
   14  structural integrity reserve study may not determine to provide
   15  no reserves or reserves less adequate than required by this
   16  paragraph for items listed in paragraph (k). If a meeting of the
   17  unit owners has been called to determine to provide no reserves,
   18  or reserves less adequate than required, and such result is not
   19  attained or a quorum is not attained, the reserves as included
   20  in the budget shall go into effect.
   21         3. Reserve funds and any interest accruing thereon shall
   22  remain in the reserve account or accounts, and shall be used
   23  only for authorized reserve expenditures unless their use for
   24  other purposes is approved in advance by a vote of the majority
   25  of the total voting interests, voting in person or by limited
   26  proxy at a duly called meeting of the association. Before
   27  turnover of control of an association by a developer to unit
   28  owners other than the developer under s. 719.301, the developer
   29  may not vote to use reserves for purposes other than that for
   30  which they were intended. For a budget adopted on or after
   31  Effective December 31, 2024, members of a unit-owner-controlled
   32  association that must obtain a structural integrity reserve
   33  study may not vote to use reserve funds, or any interest
   34  accruing thereon, that are reserved for items listed in
   35  paragraph (k) for purposes other than the replacement or
   36  deferred maintenance costs of the components listed in paragraph
   37  (k) their intended purpose.
   38         (k) Structural integrity reserve study.—
   39         1. A residential cooperative An association must have a
   40  structural integrity reserve study completed at least every 10
   41  years for each building on the cooperative property that is
   42  three stories or higher in height as determined by the Florida
   43  Building Code that includes, at a minimum, a study of the
   44  following items as related to the structural integrity and
   45  safety of the building:
   46         a. Roof.
   47         b. Load-bearing walls or other primary structural members.
   48         c. Floor.
   49         d. Foundation.
   50         d.e. Fireproofing and fire protection systems.
   51         e.f. Plumbing.
   52         f.g. Electrical systems.
   53         g.h. Waterproofing and exterior painting.
   54         h.i. Windows and exterior doors.
   55         i.j. Any other item that has a deferred maintenance expense
   56  or replacement cost that exceeds $10,000 and the failure to
   57  replace or maintain such item negatively affects the items
   58  listed in sub-subparagraphs a.-h. sub-subparagraphs a.-i., as
   59  determined by the licensed engineer or architect performing the
   60  visual inspection portion of the structural integrity reserve
   61  study.
   62         2. A structural integrity reserve study is based on a
   63  visual inspection of the cooperative property. A structural
   64  integrity reserve study may be performed by any person qualified
   65  to perform such study. However, the visual inspection portion of
   66  the structural integrity reserve study must be performed or
   67  verified by an engineer licensed under chapter 471, an architect
   68  licensed under chapter 481, or a person who is certified as a
   69  reserve specialist or professional reserve analyst by the
   70  Community Associations Institute or the Association of
   71  Professional Reserve Analysts.
   72         3.At a minimum, a structural integrity reserve study must
   73  identify each item of the cooperative property being visually
   74  inspected, state the estimated remaining useful life and the
   75  estimated replacement cost or deferred maintenance expense of
   76  each item of the cooperative property being visually inspected,
   77  and provide a reserve funding schedule with a recommended annual
   78  reserve amount that achieves the estimated replacement cost or
   79  deferred maintenance expense of each item of cooperative
   80  property being visually inspected by the end of the estimated
   81  remaining useful life of the item. The structural integrity
   82  reserve study may recommend that reserves do not need to be
   83  maintained for any item for which an estimate of useful life and
   84  an estimate of replacement cost or deferred maintenance expense
   85  cannot be determined, or the study may recommend a deferred
   86  maintenance expense amount for such item.
   87         4.This paragraph does not apply to buildings less than
   88  three stories in height; single-family, two-family, or three
   89  family dwellings with three or fewer habitable stories above
   90  ground; any portion or component of a building that has not been
   91  submitted to the cooperative form of ownership; or any portion
   92  or component of a building that is maintained by a party other
   93  than the association.
   94         5. Before a developer turns over control of an association
   95  to unit owners other than the developer, the developer must have
   96  a structural integrity reserve study completed for each building
   97  on the cooperative property that is three stories or higher in
   98  height.
   99         6.3. Associations existing on or before July 1, 2022, which
  100  are controlled by unit owners other than the developer, must
  101  have a structural integrity reserve study completed by December
  102  31, 2024, for each building on the cooperative property that is
  103  three stories or higher in height. An association that is
  104  required to complete a milestone inspection on or before
  105  December 31, 2026, in accordance with s. 553.899 may complete
  106  the structural integrity reserve study simultaneously with the
  107  milestone inspection. In no event may the structural integrity
  108  reserve study be completed after December 31, 2026.
  109         7. If the milestone inspection required by s. 553.899, or
  110  an inspection completed for a similar local requirement, was
  111  performed within the past 5 years and meets the requirements of
  112  this paragraph, such inspection may be used in place of the
  113  visual inspection portion of the structural integrity reserve
  114  study.
  115         8.4. If an association fails to complete a structural
  116  integrity reserve study pursuant to this paragraph, such failure
  117  is a breach of an officer’s and director’s fiduciary
  118  relationship to the unit owners under s. 719.104(9) s.
  119  719.104(8).
  120         (l) Mandatory milestone inspections.—If an association is
  121  required to have a milestone inspection performed pursuant to s.
  122  553.899, the association must arrange for the milestone
  123  inspection to be performed and is responsible for ensuring
  124  compliance with the requirements of s. 553.899. The association
  125  is responsible for all costs associated with the milestone
  126  inspection attributable to the portions of the building which
  127  the association is responsible for maintaining under the
  128  governing documents of the association. If the officers or
  129  directors of an association willfully and knowingly fail to have
  130  a milestone inspection performed pursuant to s. 553.899, such
  131  failure is a breach of the officers’ and directors’ fiduciary
  132  relationship to the unit owners under s. 719.104(9)(a) s.
  133  719.104(8)(a). Within 14 days after receipt of a written notice
  134  from the local enforcement agency that a milestone inspection is
  135  required, the association must notify the unit owners of the
  136  required milestone inspection and provide the date by which the
  137  milestone inspection must be completed. Such notice may be given
  138  by electronic submission to unit owners who consent to receive
  139  notice by electronic submission or by posting on the
  140  association’s website. Within 45 days after receiving Upon
  141  completion of a phase one or phase
  142  
  143  ================= T I T L E  A M E N D M E N T ================
  144  And the title is amended as follows:
  145         Delete line 77
  146  and insert:
  147         structural integrity reserve studies and mandatory
  148         milestone inspections; providing