Florida Senate - 2023                          SENATOR AMENDMENT
       Bill No. CS for CS for SB 154
       
       
       
       
       
       
                                Ì4097169Î409716                         
       
                              LEGISLATIVE ACTION                        
                    Senate             .             House              
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                  Floor: WD            .                                
             04/10/2023 03:42 PM       .                                
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       Senator Pizzo moved the following:
       
    1         Senate Substitute for Amendment (315026) (with title
    2  amendment)
    3  
    4         Delete lines 575 - 710
    5  and insert:
    6  determine, by a majority vote of the total voting interests of
    7  the association at a duly called meeting of the association, to
    8  provide no reserves or less reserves than required by this
    9  subsection. For a budget adopted on or after Effective December
   10  31, 2024, the members of a unit-owner-controlled association
   11  that must obtain a structural integrity reserve study may not
   12  determine to provide no reserves or less reserves than required
   13  by this subsection for items listed in paragraph (g), except
   14  that members of an association operating a multicondominium may
   15  determine to provide no reserves or less reserves than required
   16  by this subsection if an alternative funding method has been
   17  approved by the division.
   18         b. Before turnover of control of an association by a
   19  developer to unit owners other than a developer under s.
   20  718.301, the developer-controlled association may not vote to
   21  waive the reserves or reduce funding of the reserves. If a
   22  meeting of the unit owners has been called to determine whether
   23  to waive or reduce the funding of reserves and no such result is
   24  achieved or a quorum is not attained, the reserves included in
   25  the budget shall go into effect. After the turnover, the
   26  developer may vote its voting interest to waive or reduce the
   27  funding of reserves or approve contingent special assessments
   28  and lines of credit as provided in sub-subparagraph c.
   29         c.(I)In lieu of the reserve accounts required by this
   30  subparagraph, members of a unit-owner-controlled association may
   31  approve contingent special assessments against each unit to
   32  secure a line of credit for the association to provide available
   33  funding for deferred maintenance and replacement costs as
   34  needed. The line of credit and the contingent special
   35  assessments must be approved by a majority of the voting
   36  interests of the association. Upon approval by the members of
   37  the association and once a line of credit has been approved and
   38  made available to the board for the funding of the required
   39  deferred maintenance and replacement costs, the association must
   40  record a declaration of special assessments evidencing the levy
   41  of such special assessments in the public records.
   42         (II)Funding from the line of credit must be immediately
   43  available for access by the board to fund maintenance and
   44  replacement costs that come due, without further approval by the
   45  members of the association. At the option of a unit owner, the
   46  special assessment may be paid in full at the time it becomes
   47  due or the payment may be amortized over a term of years as
   48  provided for by the line of credit. However, a unit owner must
   49  be able to pay the remaining balance of the special assessment
   50  at any time during the amortization period.
   51         3. Reserve funds and any interest accruing thereon shall
   52  remain in the reserve account or accounts, and may be used only
   53  for authorized reserve expenditures unless their use for other
   54  purposes is approved in advance by a majority vote of all the
   55  total voting interests at a duly called meeting of the
   56  association. Before turnover of control of an association by a
   57  developer to unit owners other than the developer pursuant to s.
   58  718.301, the developer-controlled association may not vote to
   59  use reserves for purposes other than those for which they were
   60  intended. For a budget adopted on or after Effective December
   61  31, 2024, members of a unit-owner-controlled association that
   62  must obtain a structural integrity reserve study may not vote to
   63  use reserve funds, or any interest accruing thereon, that are
   64  reserved for items listed in paragraph (g) for any other purpose
   65  other than the replacement or deferred maintenance costs of the
   66  components listed in paragraph (g) their intended purpose.
   67         4. The only voting interests that are eligible to vote on
   68  questions that involve waiving or reducing the funding of
   69  reserves, or using existing reserve funds for purposes other
   70  than purposes for which the reserves were intended, are the
   71  voting interests of the units subject to assessment to fund the
   72  reserves in question. Proxy questions relating to waiving or
   73  reducing the funding of reserves or using existing reserve funds
   74  for purposes other than purposes for which the reserves were
   75  intended must contain the following statement in capitalized,
   76  bold letters in a font size larger than any other used on the
   77  face of the proxy ballot: WAIVING OF RESERVES, IN WHOLE OR IN
   78  PART, OR ALLOWING ALTERNATIVE USES OF EXISTING RESERVES MAY
   79  RESULT IN UNIT OWNER LIABILITY FOR PAYMENT OF UNANTICIPATED
   80  SPECIAL ASSESSMENTS REGARDING THOSE ITEMS.
   81         (g) Structural integrity reserve study.—
   82         1. A residential condominium An association must have a
   83  structural integrity reserve study completed at least every 10
   84  years after the condominium’s creation for each building on the
   85  condominium property that is three stories or higher in height
   86  as determined by the Florida Building Code which includes, at a
   87  minimum, a study of the following items as related to the
   88  structural integrity and safety of the building:
   89         a. Roof.
   90         b. Load-bearing walls or other primary structural members.
   91         c. Floor.
   92         d. Foundation.
   93         d.e. Fireproofing and fire protection systems.
   94         e.f. Plumbing.
   95         f.g. Electrical systems.
   96         g.h. Waterproofing and exterior painting.
   97         h.i. Windows and exterior doors.
   98         i.j. Any other item that has a deferred maintenance expense
   99  or replacement cost that exceeds $10,000 and the failure to
  100  replace or maintain such item negatively affects the items
  101  listed in sub-subparagraphs a.-h. sub-subparagraphs a.-i., as
  102  determined by the licensed engineer or architect performing the
  103  visual inspection portion of the structural integrity reserve
  104  study.
  105         2. A structural integrity reserve study is based on a
  106  visual inspection of the condominium property. A structural
  107  integrity reserve study may be performed by any person qualified
  108  to perform such study. However, the visual inspection portion of
  109  the structural integrity reserve study must be performed or
  110  verified by an engineer licensed under chapter 471, an architect
  111  licensed under chapter 481, or a person who is certified as a
  112  reserve specialist or professional reserve analyst by the
  113  Community Associations Institute or the Association of
  114  Professional Reserve Analysts.
  115         3.At a minimum, a structural integrity reserve study must
  116  identify each item of the condominium property being visually
  117  inspected, state the estimated remaining useful life and the
  118  estimated replacement cost or deferred maintenance expense of
  119  each item of the condominium property being visually inspected,
  120  and provide a reserve funding schedule with a recommended annual
  121  reserve amount that achieves the estimated replacement cost or
  122  deferred maintenance expense of each item of condominium
  123  property being visually inspected by the end of the estimated
  124  remaining useful life of the item. The structural integrity
  125  reserve study may recommend that reserves do not need to be
  126  maintained for any item for which an estimate of useful life and
  127  an estimate of replacement cost or deferred maintenance expense
  128  cannot be determined, or the study may recommend a deferred
  129  maintenance expense amount for such item.
  130         4.This paragraph does not apply to buildings less than
  131  three stories in height; single-family, two-family, or three
  132  family dwellings with three or fewer habitable stories above
  133  ground; any portion or component of a building that has not been
  134  submitted to the condominium form of ownership; or any portion
  135  or component of a building that is maintained by a party other
  136  than the association.
  137         5. Before a developer turns over control of an association
  138  to unit owners other than the developer, the developer must have
  139  a structural integrity reserve study completed for each building
  140  on the condominium property that is three stories or higher in
  141  height.
  142         6.3. Associations existing on or before July 1, 2022, which
  143  are controlled by unit owners other than the developer, must
  144  have a structural integrity reserve study completed by December
  145  31, 2024, for each building on the condominium property that is
  146  three stories or higher in height. An association that is
  147  required to complete a milestone inspection in accordance with
  148  s. 553.899 on or before December 31, 2026, may complete the
  149  structural integrity reserve study simultaneously with the
  150  milestone inspection. In no event may the structural integrity
  151  reserve study be completed after December 31, 2026.
  152         7. If the milestone inspection required by s. 553.899, or
  153  an inspection completed for a similar local requirement, was
  154  performed within the past 5 years and meets the requirements of
  155  this paragraph, such inspection may be used in place of the
  156  visual inspection portion of the structural integrity reserve
  157  study.
  158         8.4. If an association fails to complete a structural
  159  integrity reserve study pursuant to this paragraph, such failure
  160  is a breach of an officer’s and director’s fiduciary
  161  relationship to the unit owners under s. 718.111(1).
  162         (h) Mandatory milestone inspections.—If an association is
  163  required to have a milestone inspection performed pursuant to s.
  164  553.899, the association must arrange for the milestone
  165  inspection to be performed and is responsible for ensuring
  166  compliance with the requirements of s. 553.899. The association
  167  is responsible for all costs associated with the milestone
  168  inspection attributable to the portions of the building which
  169  the association is responsible for maintaining under the
  170  governing documents of the association. If the officers or
  171  directors of an association willfully and knowingly fail to have
  172  a milestone inspection performed pursuant to s. 553.899, such
  173  failure is a breach of the officers’ and directors’ fiduciary
  174  relationship to the unit owners under s. 718.111(1)(a). Within
  175  14 days after receipt of a written notice from the local
  176  enforcement agency that a milestone inspection is required, the
  177  association must notify the unit owners of the required
  178  milestone inspection and provide the date by which the milestone
  179  inspection must be completed. Such notice may be given by
  180  electronic submission to unit owners who consent to receive
  181  notice by electronic submission or by posting on the
  182  association’s website. Within 45 days after receiving Upon
  183  completion of a phase one or phase
  184  
  185  ================= T I T L E  A M E N D M E N T ================
  186  And the title is amended as follows:
  187         Delete line 50
  188  and insert:
  189         certain purposes; authorizing association members to
  190         approve certain special assessments and lines of
  191         credit for specified purposes; providing requirements
  192         for such special assessments and lines of credit;
  193         revising requirements for structural