Florida Senate - 2022                             CS for SB 1702
       
       
        
       By the Committee on Regulated Industries; and Senator Bradley
       
       
       
       
       
       580-02611-22                                          20221702c1
    1                        A bill to be entitled                      
    2         An act relating to mandatory building inspections;
    3         creating s. 553.899, F.S.; providing legislative
    4         findings; defining the term “milestone inspection”;
    5         specifying that the purpose of a milestone inspection
    6         is not to determine compliance with the Florida
    7         Building Code; requiring owners of certain multifamily
    8         residential buildings to have milestone inspections
    9         performed at specified times; requiring the boards of
   10         administration for condominium and cooperative
   11         associations to arrange for milestone inspections of
   12         condominium buildings and cooperative buildings,
   13         respectively; specifying that such associations are
   14         responsible for costs relating to milestone
   15         inspections; providing applicability; requiring that
   16         initial milestone inspections for certain buildings be
   17         performed before a specified date; specifying that
   18         milestone inspections consist of two phases; providing
   19         requirements for each phase of a milestone inspection;
   20         requiring architects and engineers performing a
   21         milestone inspection to submit a sealed copy of the
   22         inspection report to certain entities; requiring
   23         boards of administrations of condominium associations
   24         and cooperative associations to distribute a copy of
   25         each inspection report for a condominium building or
   26         cooperative building to unit owners and publish the
   27         report on the association’s website under certain
   28         circumstances; authorizing local enforcement agencies
   29         to prescribe timelines and penalties relating to
   30         milestone inspections; requiring the Florida Building
   31         Commission to develop certain standards by a specified
   32         date and make such standards available to local
   33         governments for adoption; amending s. 718.111, F.S.;
   34         revising the types of records that constitute the
   35         official records of a condominium association;
   36         amending s. 718.503, F.S.; revising nondeveloper
   37         disclosure requirements relating to resales of
   38         residential condominium units; amending s. 719.104,
   39         F.S.; revising the types of records that constitute
   40         the official records of a cooperative association;
   41         amending s. 719.503, F.S.; entitling prospective
   42         purchasers of an interest in a cooperative to a copy
   43         of milestone inspection reports; providing an
   44         effective date.
   45          
   46  Be It Enacted by the Legislature of the State of Florida:
   47  
   48         Section 1. Section 553.899, Florida Statutes, is created to
   49  read:
   50         553.899 Mandatory structural inspections for multifamily
   51  residential buildings.—
   52         (1)The Legislature finds that maintaining the structural
   53  integrity of a building throughout its service life is of
   54  paramount importance in order to ensure that buildings are
   55  structurally sound so as to not pose a threat to the public
   56  health, safety, or welfare. As such, the Legislature finds that
   57  the imposition of a statewide structural inspection program for
   58  aging multifamily residential buildings in this state is
   59  necessary to ensure that such buildings are safe for continued
   60  use.
   61         (2)As used in this section, the term “milestone
   62  inspection” means a structural inspection of a building by a
   63  licensed architect or engineer authorized to practice in this
   64  state for the purposes of attesting to the life safety and
   65  adequacy of the structural components of the building and, to
   66  the extent reasonably possible, determining the general
   67  structural condition of the building as it affects the safety of
   68  such building. The purpose of such inspection is not to
   69  determine if the condition of an existing building is in
   70  compliance with the Florida Building Code.
   71         (3)The owner of a multifamily residential building that is
   72  greater than three stories in height must have a milestone
   73  inspection performed by December 31 of the year in which the
   74  building reaches 30 years of age, based on the date the
   75  certificate of occupancy was issued, and every 10 years
   76  thereafter. The owner of a multifamily residential building that
   77  is greater than three stories in height and is located within 3
   78  miles of a coastline as defined in s. 376.031 must have a
   79  milestone inspection performed by December 31 of the year in
   80  which the building reaches 20 years of age, based on the date
   81  the certificate of occupancy was issued, and every 7 years
   82  thereafter. If a condominium building or cooperative building is
   83  required to have a milestone inspection performed pursuant to
   84  this section, the board of administration of the condominium
   85  association or cooperative association must arrange for the
   86  milestone inspection to be performed and is responsible for
   87  ensuring compliance with the requirements of this section. The
   88  building owner or board of administration of a condominium
   89  association or cooperative association responsible for the
   90  milestone inspection is responsible for all costs associated
   91  with the inspection. This subsection does not apply to two
   92  family dwellings or to buildings less than 3,500 square feet.
   93         (4)If a milestone inspection is required under this
   94  section and the building’s certificate of occupancy was issued
   95  on or before July 1, 1992, the building’s initial milestone
   96  inspection must be performed before December 31, 2024.
   97         (5)A milestone inspection consists of two phases:
   98         (a)For phase one of the milestone inspection, a licensed
   99  architect or engineer authorized to practice in this state shall
  100  perform a visual examination of all habitable and nonhabitable
  101  areas of a building and provide a qualitative assessment of the
  102  structural conditions of the building. Surface imperfections
  103  such as cracks, distortion, sagging, excessive deflections,
  104  significant misalignment, signs of leakage, or peeling of
  105  finishes constitute signs of structural distress. If the
  106  architect or engineer finds no signs of structural distress to
  107  any building components under visual examination, phase two of
  108  the inspection, as provided in paragraph (b), is not required.
  109  An architect or engineer who completes the first phase of a
  110  milestone inspection shall prepare and submit an inspection
  111  report pursuant to subsection (6).
  112         (b)Phase two of the milestone inspection must be performed
  113  if any structural distress is identified during phase one. The
  114  inspector in charge of a phase two inspection must be a licensed
  115  engineer or licensed architect who has a minimum of 5 years of
  116  experience designing the primary structural components of
  117  buildings and a minimum of 5 years of experience inspecting
  118  structural components of existing buildings of a similar size,
  119  scope, and type of construction. A phase two inspection may
  120  involve destructive or nondestructive testing at the inspector’s
  121  direction. The inspection may be as extensive or as limited as
  122  necessary to fully assess damaged areas of the building in order
  123  to confirm that the building is safe for its intended use or to
  124  recommend a program for fully assessing and repairing damaged
  125  portions of the building. When determining testing locations,
  126  the inspector must give preference to locations that are the
  127  least disruptive and most easily repairable while still being
  128  representative of the structure. An inspector who completes the
  129  second phase of a milestone inspection shall prepare and submit
  130  an inspection report pursuant to subsection (6).
  131         (6)Upon completion of a phase one or phase two milestone
  132  inspection, the architect or engineer who performed the
  133  inspection must submit a sealed copy of the inspection report to
  134  the building owner or, if the building is a condominium or
  135  cooperative, to the board of administration of the condominium
  136  or cooperative, and to the building official of the local
  137  government which has jurisdiction. For a milestone inspection of
  138  a condominium or cooperative, the board of administration must
  139  distribute a copy of each inspection report to each condominium
  140  unit owner or cooperative unit owner, regardless of whether
  141  there are deficiencies reported, and, if the association is
  142  required by law to have a website, must publish the report on
  143  the association’s website.
  144         (7)A local enforcement agency may prescribe timelines and
  145  penalties with respect to compliance with this section.
  146         (8)The commission shall develop comprehensive structural
  147  and life safety standards for maintaining and inspecting all
  148  building types and structures in this state by December 31,
  149  2022. The standards are in addition to those provided in this
  150  section and must be made available for local governments to
  151  adopt at their discretion.
  152         Section 2. Paragraph (a) of subsection (12) of section
  153  718.111, Florida Statutes, is amended to read:
  154         718.111 The association.—
  155         (12) OFFICIAL RECORDS.—
  156         (a) From the inception of the association, the association
  157  shall maintain each of the following items, if applicable, which
  158  constitutes the official records of the association:
  159         1. A copy of the plans, permits, warranties, and other
  160  items provided by the developer under s. 718.301(4).
  161         2. A photocopy of the recorded declaration of condominium
  162  of each condominium operated by the association and each
  163  amendment to each declaration.
  164         3. A photocopy of the recorded bylaws of the association
  165  and each amendment to the bylaws.
  166         4. A certified copy of the articles of incorporation of the
  167  association, or other documents creating the association, and
  168  each amendment thereto.
  169         5. A copy of the current rules of the association.
  170         6. A book or books that contain the minutes of all meetings
  171  of the association, the board of administration, and the unit
  172  owners.
  173         7. A current roster of all unit owners and their mailing
  174  addresses, unit identifications, voting certifications, and, if
  175  known, telephone numbers. The association shall also maintain
  176  the e-mail addresses and facsimile numbers of unit owners
  177  consenting to receive notice by electronic transmission. The e
  178  mail addresses and facsimile numbers are not accessible to unit
  179  owners if consent to receive notice by electronic transmission
  180  is not provided in accordance with sub-subparagraph (c)3.e.
  181  However, the association is not liable for an inadvertent
  182  disclosure of the e-mail address or facsimile number for
  183  receiving electronic transmission of notices.
  184         8. All current insurance policies of the association and
  185  condominiums operated by the association.
  186         9. A current copy of any management agreement, lease, or
  187  other contract to which the association is a party or under
  188  which the association or the unit owners have an obligation or
  189  responsibility.
  190         10. Bills of sale or transfer for all property owned by the
  191  association.
  192         11. Accounting records for the association and separate
  193  accounting records for each condominium that the association
  194  operates. Any person who knowingly or intentionally defaces or
  195  destroys such records, or who knowingly or intentionally fails
  196  to create or maintain such records, with the intent of causing
  197  harm to the association or one or more of its members, is
  198  personally subject to a civil penalty pursuant to s.
  199  718.501(1)(d). The accounting records must include, but are not
  200  limited to:
  201         a. Accurate, itemized, and detailed records of all receipts
  202  and expenditures.
  203         b. A current account and a monthly, bimonthly, or quarterly
  204  statement of the account for each unit designating the name of
  205  the unit owner, the due date and amount of each assessment, the
  206  amount paid on the account, and the balance due.
  207         c. All audits, reviews, accounting statements, and
  208  financial reports of the association or condominium.
  209         d. All contracts for work to be performed. Bids for work to
  210  be performed are also considered official records and must be
  211  maintained by the association for at least 1 year after receipt
  212  of the bid.
  213         12. Ballots, sign-in sheets, voting proxies, and all other
  214  papers and electronic records relating to voting by unit owners,
  215  which must be maintained for 1 year from the date of the
  216  election, vote, or meeting to which the document relates,
  217  notwithstanding paragraph (b).
  218         13. All rental records if the association is acting as
  219  agent for the rental of condominium units.
  220         14. A copy of the current question and answer sheet as
  221  described in s. 718.504.
  222         15. A copy of the inspection report as described in s.
  223  718.301(4)(p).
  224         16. A copy of all milestone inspection reports required by
  225  s. 553.899.
  226         17. Bids for materials, equipment, or services.
  227         18.17. All affirmative acknowledgments made pursuant to s.
  228  718.121(4)(c).
  229         19.18. All other written records of the association not
  230  specifically included in the foregoing which are related to the
  231  operation of the association.
  232         Section 3. Paragraph (c) of subsection (2) of section
  233  718.503, Florida Statutes, is amended to read:
  234         718.503 Developer disclosure prior to sale; nondeveloper
  235  unit owner disclosure prior to sale; voidability.—
  236         (2) NONDEVELOPER DISCLOSURE.—
  237         (c) Each contract entered into after July 1, 1992, for the
  238  resale of a residential unit shall contain in conspicuous type
  239  either:
  240         1. A clause which states: THE BUYER HEREBY ACKNOWLEDGES
  241  THAT BUYER HAS BEEN PROVIDED A CURRENT COPY OF THE DECLARATION
  242  OF CONDOMINIUM; THE, ARTICLES OF INCORPORATION OF THE
  243  ASSOCIATION; THE, BYLAWS AND RULES OF THE ASSOCIATION; ALL
  244  MILESTONE INSPECTION REPORTS REQUIRED BY SECTION 553.899,
  245  FLORIDA STATUTES; AND A COPY OF THE MOST RECENT YEAR-END
  246  FINANCIAL INFORMATION AND FREQUENTLY ASKED QUESTIONS AND ANSWERS
  247  DOCUMENT MORE THAN 3 DAYS, EXCLUDING SATURDAYS, SUNDAYS, AND
  248  LEGAL HOLIDAYS, PRIOR TO EXECUTION OF THIS CONTRACT; or
  249         2. A clause which states: THIS AGREEMENT IS VOIDABLE BY
  250  BUYER BY DELIVERING WRITTEN NOTICE OF THE BUYER’S INTENTION TO
  251  CANCEL WITHIN 3 DAYS, EXCLUDING SATURDAYS, SUNDAYS, AND LEGAL
  252  HOLIDAYS, AFTER THE DATE OF EXECUTION OF THIS AGREEMENT BY THE
  253  BUYER AND RECEIPT BY BUYER OF A CURRENT COPY OF THE DECLARATION
  254  OF CONDOMINIUM; THE, ARTICLES OF INCORPORATION; THE, BYLAWS AND
  255  RULES OF THE ASSOCIATION; ALL MILESTONE INSPECTION REPORTS
  256  REQUIRED BY SECTION 553.899, FLORIDA STATUTES; AND A COPY OF THE
  257  MOST RECENT YEAR-END FINANCIAL INFORMATION AND FREQUENTLY ASKED
  258  QUESTIONS AND ANSWERS DOCUMENT IF SO REQUESTED IN WRITING. ANY
  259  PURPORTED WAIVER OF THESE VOIDABILITY RIGHTS SHALL BE OF NO
  260  EFFECT. BUYER MAY EXTEND THE TIME FOR CLOSING FOR A PERIOD OF
  261  NOT MORE THAN 3 DAYS, EXCLUDING SATURDAYS, SUNDAYS, AND LEGAL
  262  HOLIDAYS, AFTER THE BUYER RECEIVES THE DECLARATION, ARTICLES OF
  263  INCORPORATION, BYLAWS AND RULES OF THE ASSOCIATION, AND A COPY
  264  OF THE MOST RECENT YEAR-END FINANCIAL INFORMATION AND FREQUENTLY
  265  ASKED QUESTIONS AND ANSWERS DOCUMENT IF REQUESTED IN WRITING.
  266  BUYER’S RIGHT TO VOID THIS AGREEMENT SHALL TERMINATE AT CLOSING.
  267  
  268  A contract that does not conform to the requirements of this
  269  paragraph is voidable at the option of the purchaser prior to
  270  closing.
  271         Section 4. Paragraph (a) of subsection (2) of section
  272  719.104, Florida Statutes, is amended to read:
  273         719.104 Cooperatives; access to units; records; financial
  274  reports; assessments; purchase of leases.—
  275         (2) OFFICIAL RECORDS.—
  276         (a) From the inception of the association, the association
  277  shall maintain a copy of each of the following, where
  278  applicable, which shall constitute the official records of the
  279  association:
  280         1. The plans, permits, warranties, and other items provided
  281  by the developer pursuant to s. 719.301(4).
  282         2. A photocopy of the cooperative documents.
  283         3. A copy of the current rules of the association.
  284         4. A book or books containing the minutes of all meetings
  285  of the association, of the board of directors, and of the unit
  286  owners.
  287         5. A current roster of all unit owners and their mailing
  288  addresses, unit identifications, voting certifications, and, if
  289  known, telephone numbers. The association shall also maintain
  290  the e-mail addresses and the numbers designated by unit owners
  291  for receiving notice sent by electronic transmission of those
  292  unit owners consenting to receive notice by electronic
  293  transmission. The e-mail addresses and numbers provided by unit
  294  owners to receive notice by electronic transmission shall be
  295  removed from association records when consent to receive notice
  296  by electronic transmission is revoked. However, the association
  297  is not liable for an erroneous disclosure of the e-mail address
  298  or the number for receiving electronic transmission of notices.
  299         6. All current insurance policies of the association.
  300         7. A current copy of any management agreement, lease, or
  301  other contract to which the association is a party or under
  302  which the association or the unit owners have an obligation or
  303  responsibility.
  304         8. Bills of sale or transfer for all property owned by the
  305  association.
  306         9. Accounting records for the association and separate
  307  accounting records for each unit it operates, according to good
  308  accounting practices. The accounting records shall include, but
  309  not be limited to:
  310         a. Accurate, itemized, and detailed records of all receipts
  311  and expenditures.
  312         b. A current account and a monthly, bimonthly, or quarterly
  313  statement of the account for each unit designating the name of
  314  the unit owner, the due date and amount of each assessment, the
  315  amount paid upon the account, and the balance due.
  316         c. All audits, reviews, accounting statements, and
  317  financial reports of the association.
  318         d. All contracts for work to be performed. Bids for work to
  319  be performed shall also be considered official records and shall
  320  be maintained for a period of 1 year.
  321         10. Ballots, sign-in sheets, voting proxies, and all other
  322  papers and electronic records relating to voting by unit owners,
  323  which shall be maintained for a period of 1 year after the date
  324  of the election, vote, or meeting to which the document relates.
  325         11. All rental records where the association is acting as
  326  agent for the rental of units.
  327         12. A copy of the current question and answer sheet as
  328  described in s. 719.504.
  329         13. All affirmative acknowledgments made pursuant to s.
  330  719.108(3)(b)3.
  331         14. All milestone inspection reports required by s.
  332  553.899.
  333         15. All other written records of the association not
  334  specifically included in the foregoing which are related to the
  335  operation of the association.
  336         Section 5. Paragraph (a) of subsection (2) of section
  337  719.503, Florida Statutes, is amended to read:
  338         719.503 Disclosure prior to sale.—
  339         (2) NONDEVELOPER DISCLOSURE.—
  340         (a) Each unit owner who is not a developer as defined by
  341  this chapter must comply with the provisions of this subsection
  342  prior to the sale of his or her interest in the association.
  343  Each prospective purchaser who has entered into a contract for
  344  the purchase of an interest in a cooperative is entitled, at the
  345  seller’s expense, to a current copy of the articles of
  346  incorporation of the association, the bylaws, and rules of the
  347  association, as well as a copy of the question and answer sheet
  348  as provided in s. 719.504 and all milestone inspection reports
  349  required by s. 553.899.
  350         Section 6. This act shall take effect July 1, 2022.