Florida Senate - 2023 SENATOR AMENDMENT
Bill No. CS for CS for SB 154
Ì6336260Î633626
LEGISLATIVE ACTION
Senate . House
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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