CS for CS for SB 154                      Second Engrossed (ntc)
       
       
       
       
       
       
       
       
       2023154e2
       
    1                        A bill to be entitled                      
    2         An act relating to condominium and cooperative
    3         associations; amending s. 468.4334, F.S.; revising the
    4         circumstances under which community association
    5         managers or management firms must comply with a
    6         specified provision; amending s. 553.899, F.S.;
    7         revising legislative findings; revising the definition
    8         of the terms “milestone inspection” and “substantial
    9         structural deterioration”; revising who must have
   10         milestone inspections performed for buildings;
   11         revising the deadline for milestone inspections of
   12         certain buildings; authorizing local enforcement
   13         agencies to make certain determinations relating to
   14         milestone inspections after a building reaches a
   15         specified age; authorizing local enforcement agencies
   16         to extend deadlines for milestone inspections under
   17         certain circumstances; authorizing local enforcement
   18         agencies to accept certain inspection reports under
   19         certain circumstances; deeming the inspections
   20         relating to such inspection reports a milestone
   21         inspection for certain purposes; revising costs that
   22         condominium and cooperative associations are
   23         responsible for; revising requirements relating to
   24         written notice of required inspections; requiring
   25         architects or engineers performing milestone
   26         inspections to submit a specified progress report to a
   27         local enforcement agency within a specified timeframe
   28         under certain circumstances; specifying that
   29         associations must distribute copies of certain
   30         inspection reports within a specified timeframe and in
   31         a specified manner; authorizing municipal governing
   32         bodies to adopt certain ordinances relating to
   33         association repairs; requiring the Florida Building
   34         Commission to adopt rules by a specified date;
   35         providing requirements for such rules; conforming
   36         provisions; amending s. 627.351, F.S.; revising
   37         requirements relating to the purchase of flood
   38         insurance as a condition for maintaining certain
   39         policies issued by the Citizens Property Insurance
   40         Corporation; amending s. 718.103, F.S.; defining the
   41         term “alternative funding method”; revising the
   42         definition of the term “structural integrity reserve
   43         study”; amending s. 718.111, F.S.; making a technical
   44         change; amending s. 718.112, F.S.; revising
   45         requirements relating to budget meetings; revising
   46         condominium association reserve account requirements;
   47         revising requirements relating to waiving reserve
   48         requirements or providing less reserves than required
   49         by law; revising requirements relating to using
   50         reserve funds or interest accrued on reserve funds for
   51         certain purposes; revising requirements for structural
   52         integrity reserve studies and mandatory milestone
   53         inspections; providing applicability; conforming
   54         provisions to changes made by the act; amending s.
   55         718.1255, F.S.; revising the definition of the term
   56         “dispute”; specifying that certain disputes are not
   57         subject to nonbinding arbitration and must be
   58         submitted to presuit mediation; amending s. 718.113,
   59         F.S.; revising requirements relating to maintenance,
   60         repair, and replacement of common elements and
   61         condominium property; amending s. 718.301, F.S.;
   62         revising items that developers are required to deliver
   63         to an association upon relinquishing control of the
   64         association; amending s. 718.503, F.S.; revising the
   65         documents developers are required to provide to
   66         prospective buyers or lessees; revising the documents
   67         that prospective purchasers are entitled to when
   68         purchasing a condominium unit from a unit owner;
   69         requiring specified disclosures relating to milestone
   70         inspections, turnover inspection reports, and
   71         structural integrity reserve studies for certain
   72         contracts entered into after a specified date;
   73         amending s. 718.504, F.S.; revising requirements for
   74         prospectuses and offering circulars; amending s.
   75         719.103, F.S.; revising the definition of the term
   76         “structural integrity reserve study”; amending s.
   77         719.104, F.S.; revising rights relating to the
   78         official records of a cooperative association;
   79         providing maintenance requirements for cooperative
   80         associations; amending s. 719.106, F.S.; revising
   81         requirements relating to budget procedures; revising
   82         cooperative association reserve account requirements;
   83         revising requirements relating to waiving reserve
   84         requirements or providing less reserves than required
   85         by law; revising a prohibition on using reserve funds
   86         or interest accrued on reserve funds for certain
   87         purposes; revising requirements for structural
   88         integrity reserve studies and mandatory milestone
   89         inspections; providing applicability; conforming
   90         provisions to changes made by the act; amending s.
   91         719.301, F.S.; revising items that developers are
   92         required to deliver to an association upon
   93         relinquishing control of the association; amending s.
   94         719.503, F.S.; revising the types of documents
   95         developers are required to provide to prospective
   96         buyers and lessees; revising the documents that a
   97         prospective purchaser is entitled to when purchasing
   98         an interest in cooperative from a unit owner;
   99         requiring specified disclosures relating to milestone
  100         inspections, turnover inspection reports, and
  101         structural integrity reserve studies for certain
  102         contracts entered into after a specified date;
  103         amending s. 719.504, F.S.; revising requirements for
  104         prospectuses and offering circulars; amending ss.
  105         558.002, 718.116, and 720.3085, F.S.; conforming
  106         cross-references; reenacting s. 719.1255, F.S.,
  107         relating to alternative resolution of disputes, to
  108         incorporate amendments made to s. 718.1255, F.S., in a
  109         reference thereto; reenacting ss. 718.501(1)(f) and
  110         719.501(1)(f), F.S., relating to the rulemaking
  111         authority of the Division of Florida Condominiums,
  112         Timeshares, and Mobile Homes of the Department of
  113         Business and Professional Regulation; providing
  114         appropriations; providing effective dates.
  115          
  116  Be It Enacted by the Legislature of the State of Florida:
  117  
  118         Section 1. Paragraph (b) of subsection (1) of section
  119  468.4334, Florida Statutes, is amended to read:
  120         468.4334 Professional practice standards; liability.—
  121         (1)
  122         (b) If a community association manager or a community
  123  association management firm has a contract with a community
  124  association that has a building on the association’s property
  125  that is subject to s. 553.899, the community association manager
  126  or the community association management firm must comply with
  127  that section as directed by the board.
  128         Section 2. Subsections (1) through (6), paragraph (b) of
  129  subsection (7), and subsections (8), (9), (11), and (12) of
  130  section 553.899, Florida Statutes, are amended to read:
  131         553.899 Mandatory structural inspections for condominium
  132  and cooperative buildings.—
  133         (1) The Legislature finds that maintaining the structural
  134  integrity of a building throughout the life of the building its
  135  service life is of paramount importance in order to ensure that
  136  buildings are structurally sound so as to not pose a threat to
  137  the public health, safety, or welfare. As such, the Legislature
  138  finds that the imposition of a statewide structural inspection
  139  program for aging condominium and cooperative buildings in this
  140  state is necessary to ensure that such buildings are safe for
  141  continued use.
  142         (2) As used in this section, the terms:
  143         (a) “Milestone inspection” means a structural inspection of
  144  a building, including an inspection of load-bearing elements
  145  walls and the primary structural members and primary structural
  146  systems as those terms are defined in s. 627.706, by an a
  147  licensed architect licensed under chapter 481 or engineer
  148  licensed under chapter 471 authorized to practice in this state
  149  for the purposes of attesting to the life safety and adequacy of
  150  the structural components of the building and, to the extent
  151  reasonably possible, determining the general structural
  152  condition of the building as it affects the safety of such
  153  building, including a determination of any necessary
  154  maintenance, repair, or replacement of any structural component
  155  of the building. The purpose of such inspection is not to
  156  determine if the condition of an existing building is in
  157  compliance with the Florida Building Code or the firesafety
  158  code. The milestone inspection services may be provided by a
  159  team of professionals with an architect or engineer acting as a
  160  registered design professional in responsible charge with all
  161  work and reports signed and sealed by the appropriate qualified
  162  team member.
  163         (b) “Substantial structural deterioration” means
  164  substantial structural distress or substantial structural
  165  weakness that negatively affects a building’s general structural
  166  condition and integrity. The term does not include surface
  167  imperfections such as cracks, distortion, sagging, deflections,
  168  misalignment, signs of leakage, or peeling of finishes unless
  169  the licensed engineer or architect performing the phase one or
  170  phase two inspection determines that such surface imperfections
  171  are a sign of substantial structural deterioration.
  172         (3)(a) An owner or owners of a building that is three
  173  stories or more in height as determined by the Florida Building
  174  Code and that is subject, in whole or in part, to the
  175  condominium or cooperative form of ownership as a residential
  176  condominium association under chapter 718 or and a residential
  177  cooperative association under chapter 719 must have a milestone
  178  inspection performed for each building that is three stories or
  179  more in height by December 31 of the year in which the building
  180  reaches 30 years of age, based on the date the certificate of
  181  occupancy for the building was issued, and every 10 years
  182  thereafter. If a building reached 30 years of age before July 1,
  183  2022, the building’s initial milestone inspection must be
  184  performed before December 31, 2024. If a building reaches 30
  185  years of age on or after July 1, 2022, and before December 31,
  186  2024, the building’s initial milestone inspection must be
  187  performed before December 31, 2025. If the date of issuance for
  188  the certificate of occupancy is not available, the date of
  189  issuance of the building’s certificate of occupancy shall be the
  190  date of occupancy evidenced in any record of the local building
  191  official.
  192         (b) The local enforcement agency may determine that local
  193  circumstances, including environmental conditions such as
  194  proximity to salt water as defined in s. 379.101, require that
  195  If the building is located within 3 miles of a coastline as
  196  defined in s. 376.031, the condominium association or
  197  cooperative association must have a milestone inspection must be
  198  performed by December 31 of the year in which the building
  199  reaches 25 years of age, based on the date the certificate of
  200  occupancy for the building was issued, and every 10 years
  201  thereafter.
  202         (c) The local enforcement agency may extend the date by
  203  which a building’s initial milestone inspection must be
  204  completed upon a showing of good cause by the owner or owners of
  205  the building that the inspection cannot be timely completed if
  206  the owner or owners have entered into a contract with an
  207  architect or engineer to perform the milestone inspection and
  208  the inspection cannot reasonably be completed before the
  209  deadline or other circumstance to justify an extension.
  210         (d) The local enforcement agency may accept an inspection
  211  report prepared by a licensed engineer or architect for a
  212  structural integrity and condition inspection of a building
  213  performed before July 1, 2022, if the inspection and report
  214  substantially comply with the requirements of this section.
  215  Notwithstanding when such inspection was completed, the
  216  condominium or cooperative association must comply with the unit
  217  owner notice requirements in subsection (9). The inspection for
  218  which an inspection report is accepted by the local enforcement
  219  agency under this paragraph is deemed a milestone inspection for
  220  the applicable requirements in chapters 718 and 719. If a
  221  previous inspection and report is accepted by the local
  222  enforcement agency under this paragraph, the deadline for the
  223  building’s subsequent 10-year milestone inspection is based on
  224  the date of the accepted previous inspection.
  225         (4) The milestone inspection report must be arranged by a
  226  condominium or cooperative association and any owner of any
  227  portion of the building which is not subject to the condominium
  228  or cooperative form of ownership. The condominium association or
  229  cooperative association and any owner of any portion of the
  230  building which is not subject to the condominium or cooperative
  231  form of ownership are each must arrange for the milestone
  232  inspection to be performed and is responsible for ensuring
  233  compliance with the requirements of this section. The
  234  condominium association or cooperative association is
  235  responsible for all costs associated with the milestone
  236  inspection attributable to the portions of a building which the
  237  association is responsible to maintain under the governing
  238  documents of the association. This section subsection does not
  239  apply to a single-family, two-family, or three-family dwelling
  240  with three or fewer habitable stories above ground.
  241         (4) If a milestone inspection is required under this
  242  section and the building’s certificate of occupancy was issued
  243  on or before July 1, 1992, the building’s initial milestone
  244  inspection must be performed before December 31, 2024. If the
  245  date of issuance for the certificate of occupancy is not
  246  available, the date of issuance of the building’s certificate of
  247  occupancy shall be the date of occupancy evidenced in any record
  248  of the local building official.
  249         (5) Upon determining that a building must have a milestone
  250  inspection, the local enforcement agency must provide written
  251  notice of such required inspection to the condominium
  252  association or cooperative association and any owner of any
  253  portion of the building which is not subject to the condominium
  254  or cooperative form of ownership, as applicable, by certified
  255  mail, return receipt requested. The condominium or cooperative
  256  association must notify the unit owners of the required
  257  milestone inspection within 14 days after receipt of the written
  258  notice from the local enforcement agency and provide the date
  259  that the milestone inspection must be completed. Such notice may
  260  be given by electronic submission to unit owners who consent to
  261  receive notice by electronic submission or by posting on the
  262  association’s website.
  263         (6) Phase one of the milestone inspection must be completed
  264  within 180 days after the owner or owners of the building
  265  receive receiving the written notice under subsection (5), the
  266  condominium association or cooperative association must complete
  267  phase one of the milestone inspection. For purposes of this
  268  section, completion of phase one of the milestone inspection
  269  means the licensed engineer or architect who performed the phase
  270  one inspection submitted the inspection report by e-mail, United
  271  States Postal Service, or commercial delivery service to the
  272  local enforcement agency.
  273         (7) A milestone inspection consists of two phases:
  274         (b) A phase two of the milestone inspection must be
  275  performed if any substantial structural deterioration is
  276  identified during phase one. A phase two inspection may involve
  277  destructive or nondestructive testing at the inspector’s
  278  direction. The inspection may be as extensive or as limited as
  279  necessary to fully assess areas of structural distress in order
  280  to confirm that the building is structurally sound and safe for
  281  its intended use and to recommend a program for fully assessing
  282  and repairing distressed and damaged portions of the building.
  283  When determining testing locations, the inspector must give
  284  preference to locations that are the least disruptive and most
  285  easily repairable while still being representative of the
  286  structure. If a phase two inspection is required, within 180
  287  days after submitting a phase one inspection report the
  288  architect or engineer performing the phase two inspection must
  289  submit a phase two progress report to the local enforcement
  290  agency with a timeline for completion of the phase two
  291  inspection. An inspector who completes a phase two milestone
  292  inspection shall prepare and submit an inspection report
  293  pursuant to subsection (8).
  294         (8) Upon completion of a phase one or phase two milestone
  295  inspection, the architect or engineer who performed the
  296  inspection must submit a sealed copy of the inspection report
  297  with a separate summary of, at minimum, the material findings
  298  and recommendations in the inspection report to the condominium
  299  association or cooperative association, to any other owner of
  300  any portion of the building which is not subject to the
  301  condominium or cooperative form of ownership, and to the
  302  building official of the local government which has
  303  jurisdiction. The inspection report must, at a minimum, meet all
  304  of the following criteria:
  305         (a) Bear the seal and signature, or the electronic
  306  signature, of the licensed engineer or architect who performed
  307  the inspection.
  308         (b) Indicate the manner and type of inspection forming the
  309  basis for the inspection report.
  310         (c) Identify any substantial structural deterioration,
  311  within a reasonable professional probability based on the scope
  312  of the inspection, describe the extent of such deterioration,
  313  and identify any recommended repairs for such deterioration.
  314         (d) State whether unsafe or dangerous conditions, as those
  315  terms are defined in the Florida Building Code, were observed.
  316         (e) Recommend any remedial or preventive repair for any
  317  items that are damaged but are not substantial structural
  318  deterioration.
  319         (f) Identify and describe any items requiring further
  320  inspection.
  321         (9) Within 45 days after receiving the applicable
  322  inspection report, the condominium or cooperative association
  323  must distribute a copy of the inspector-prepared summary of the
  324  inspection report to each condominium unit owner or cooperative
  325  unit owner, regardless of the findings or recommendations in the
  326  report, by United States mail or personal delivery at the
  327  mailing address, property address, or any other address of the
  328  owner provided to fulfill the association’s notice requirements
  329  under chapter 718 or chapter 719, as applicable, and by
  330  electronic transmission to the e-mail address or facsimile
  331  number provided to fulfill the association’s notice requirements
  332  to unit owners who previously consented to receive notice by
  333  electronic transmission; must post a copy of the inspector
  334  prepared summary in a conspicuous place on the condominium or
  335  cooperative property; and must publish the full report and
  336  inspector-prepared summary on the association’s website, if the
  337  association is required to have a website.
  338         (11) A board of county commissioners or municipal governing
  339  body may adopt an ordinance requiring that a condominium or
  340  cooperative association and any other owner that is subject to
  341  this section schedule or commence repairs for substantial
  342  structural deterioration within a specified timeframe after the
  343  local enforcement agency receives a phase two inspection report;
  344  however, such repairs must be commenced within 365 days after
  345  receiving such report. If an owner of the building association
  346  fails to submit proof to the local enforcement agency that
  347  repairs have been scheduled or have commenced for substantial
  348  structural deterioration identified in a phase two inspection
  349  report within the required timeframe, the local enforcement
  350  agency must review and determine if the building is unsafe for
  351  human occupancy.
  352         (12) By December 31, 2024, the Florida Building Commission
  353  shall adopt rules pursuant to ss. 120.536(1) and 120.54 to
  354  establish a building safety program for the implementation of
  355  this section within the Florida Building Code: Existing
  356  Building. The building inspection program must, at minimum,
  357  include inspection criteria, testing protocols, standardized
  358  inspection and reporting forms that are adaptable to an
  359  electronic format, and record maintenance requirements for the
  360  local authority review the milestone inspection requirements
  361  under this section and make recommendations, if any, to the
  362  Legislature to ensure inspections are sufficient to determine
  363  the structural integrity of a building. The commission must
  364  provide a written report of any recommendations to the Governor,
  365  the President of the Senate, and the Speaker of the House of
  366  Representatives by December 31, 2022.
  367         Section 3. Paragraph (aa) of subsection (6) of section
  368  627.351, Florida Statutes, is amended to read:
  369         627.351 Insurance risk apportionment plans.—
  370         (6) CITIZENS PROPERTY INSURANCE CORPORATION.—
  371         (aa) Except as otherwise provided in this paragraph, the
  372  corporation shall require the securing and maintaining of flood
  373  insurance as a condition of coverage of a personal lines
  374  residential risk. The insured or applicant must execute a form
  375  approved by the office affirming that flood insurance is not
  376  provided by the corporation and that if flood insurance is not
  377  secured by the applicant or insured from an insurer other than
  378  the corporation and in addition to coverage by the corporation,
  379  the risk will not be eligible for coverage by the corporation.
  380  The corporation may deny coverage of a personal lines
  381  residential risk to an applicant or insured who refuses to
  382  secure and maintain flood insurance. The requirement to purchase
  383  flood insurance shall be implemented as follows:
  384         1. Except as provided in subparagraphs 2. and 3., all
  385  personal lines residential policyholders must have flood
  386  coverage in place for policies effective on or after:
  387         a. January 1, 2024, for property valued at $600,000 or
  388  more.
  389         b. January 1, 2025, for property valued at $500,000 or
  390  more.
  391         c. January 1, 2026, for property valued at $400,000 or
  392  more.
  393         d. January 1, 2027, for all other personal lines
  394  residential property insured by the corporation.
  395         2. All personal lines residential policyholders whose
  396  property insured by the corporation is located within the
  397  special flood hazard area defined by the Federal Emergency
  398  Management Agency must have flood coverage in place:
  399         a. At the time of initial policy issuance for all new
  400  personal lines residential policies issued by the corporation on
  401  or after April 1, 2023.
  402         b. By the time of the policy renewal for all personal lines
  403  residential policies renewing on or after July 1, 2023.
  404         3. Policyholders whose policies issued by the corporation
  405  do not provide coverage for the peril of wind are not required
  406  to purchase flood insurance as a condition for maintaining the
  407  following their policies issued by with the corporation:
  408         a. Policies that do not provide coverage for the peril of
  409  wind.
  410         b. Policies that provide coverage under a condominium unit
  411  owners form.
  412  
  413  The flood insurance required under this paragraph must meet, at
  414  a minimum, the coverage available from the National Flood
  415  Insurance Program or the requirements of subparagraphs s.
  416  627.715(1)(a)1., 2., and 3.
  417         Section 4. Present subsections (1) through (31) of section
  418  718.103, Florida Statutes, are redesignated as subsections (2)
  419  through (32), respectively, a new subsection (1) is added to
  420  that section, and present subsection (25) of that section is
  421  amended, to read:
  422         718.103 Definitions.—As used in this chapter, the term:
  423         (1)“Alternative funding method” means a method approved by
  424  the division for funding the capital expenditures and deferred
  425  maintenance obligations for a multicondominium association
  426  operating at least 25 condominiums which may reasonably be
  427  expected to fully satisfy the association’s reserve funding
  428  obligations by the allocation of funds in the annual operating
  429  budget.
  430         (26)(25) “Structural integrity reserve study” means a study
  431  of the reserve funds required for future major repairs and
  432  replacement of the condominium property performed as required
  433  under s. 718.112(2)(g) common areas based on a visual inspection
  434  of the common areas. A structural integrity reserve study may be
  435  performed by any person qualified to perform such study.
  436  However, the visual inspection portion of the structural
  437  integrity reserve study must be performed by an engineer
  438  licensed under chapter 471 or an architect licensed under
  439  chapter 481. At a minimum, a structural integrity reserve study
  440  must identify the common areas being visually inspected, state
  441  the estimated remaining useful life and the estimated
  442  replacement cost or deferred maintenance expense of the common
  443  areas being visually inspected, and provide a recommended annual
  444  reserve amount that achieves the estimated replacement cost or
  445  deferred maintenance expense of each common area being visually
  446  inspected by the end of the estimated remaining useful life of
  447  each common area.
  448         Section 5. Paragraph (c) of subsection (12) of section
  449  718.111, Florida Statutes, is amended to read:
  450         718.111 The association.—
  451         (12) OFFICIAL RECORDS.—
  452         (c)1. The official records of the association are open to
  453  inspection by any association member and any person authorized
  454  by an association member as a or the authorized representative
  455  of such member at all reasonable times. The right to inspect the
  456  records includes the right to make or obtain copies, at the
  457  reasonable expense, if any, of the member and of the person
  458  authorized by the association member as a or authorized
  459  representative of such member. A renter of a unit has a right to
  460  inspect and copy only the declaration of condominium, the
  461  association’s bylaws and rules, and the inspection reports
  462  described in ss. 553.899 and 718.301(4)(p). The association may
  463  adopt reasonable rules regarding the frequency, time, location,
  464  notice, and manner of record inspections and copying but may not
  465  require a member to demonstrate any purpose or state any reason
  466  for the inspection. The failure of an association to provide the
  467  records within 10 working days after receipt of a written
  468  request creates a rebuttable presumption that the association
  469  willfully failed to comply with this paragraph. A unit owner who
  470  is denied access to official records is entitled to the actual
  471  damages or minimum damages for the association’s willful failure
  472  to comply. Minimum damages are $50 per calendar day for up to 10
  473  days, beginning on the 11th working day after receipt of the
  474  written request. The failure to permit inspection entitles any
  475  person prevailing in an enforcement action to recover reasonable
  476  attorney fees from the person in control of the records who,
  477  directly or indirectly, knowingly denied access to the records.
  478         2. Any person who knowingly or intentionally defaces or
  479  destroys accounting records that are required by this chapter to
  480  be maintained during the period for which such records are
  481  required to be maintained, or who knowingly or intentionally
  482  fails to create or maintain accounting records that are required
  483  to be created or maintained, with the intent of causing harm to
  484  the association or one or more of its members, is personally
  485  subject to a civil penalty pursuant to s. 718.501(1)(d).
  486         3. The association shall maintain an adequate number of
  487  copies of the declaration, articles of incorporation, bylaws,
  488  and rules, and all amendments to each of the foregoing, as well
  489  as the question and answer sheet as described in s. 718.504 and
  490  year-end financial information required under this section, on
  491  the condominium property to ensure their availability to unit
  492  owners and prospective purchasers, and may charge its actual
  493  costs for preparing and furnishing these documents to those
  494  requesting the documents. An association shall allow a member or
  495  his or her authorized representative to use a portable device,
  496  including a smartphone, tablet, portable scanner, or any other
  497  technology capable of scanning or taking photographs, to make an
  498  electronic copy of the official records in lieu of the
  499  association’s providing the member or his or her authorized
  500  representative with a copy of such records. The association may
  501  not charge a member or his or her authorized representative for
  502  the use of a portable device. Notwithstanding this paragraph,
  503  the following records are not accessible to unit owners:
  504         a. Any record protected by the lawyer-client privilege as
  505  described in s. 90.502 and any record protected by the work
  506  product privilege, including a record prepared by an association
  507  attorney or prepared at the attorney’s express direction, which
  508  reflects a mental impression, conclusion, litigation strategy,
  509  or legal theory of the attorney or the association, and which
  510  was prepared exclusively for civil or criminal litigation or for
  511  adversarial administrative proceedings, or which was prepared in
  512  anticipation of such litigation or proceedings until the
  513  conclusion of the litigation or proceedings.
  514         b. Information obtained by an association in connection
  515  with the approval of the lease, sale, or other transfer of a
  516  unit.
  517         c. Personnel records of association or management company
  518  employees, including, but not limited to, disciplinary, payroll,
  519  health, and insurance records. For purposes of this sub
  520  subparagraph, the term “personnel records” does not include
  521  written employment agreements with an association employee or
  522  management company, or budgetary or financial records that
  523  indicate the compensation paid to an association employee.
  524         d. Medical records of unit owners.
  525         e. Social security numbers, driver license numbers, credit
  526  card numbers, e-mail addresses, telephone numbers, facsimile
  527  numbers, emergency contact information, addresses of a unit
  528  owner other than as provided to fulfill the association’s notice
  529  requirements, and other personal identifying information of any
  530  person, excluding the person’s name, unit designation, mailing
  531  address, property address, and any address, e-mail address, or
  532  facsimile number provided to the association to fulfill the
  533  association’s notice requirements. Notwithstanding the
  534  restrictions in this sub-subparagraph, an association may print
  535  and distribute to unit owners a directory containing the name,
  536  unit address, and all telephone numbers of each unit owner.
  537  However, an owner may exclude his or her telephone numbers from
  538  the directory by so requesting in writing to the association. An
  539  owner may consent in writing to the disclosure of other contact
  540  information described in this sub-subparagraph. The association
  541  is not liable for the inadvertent disclosure of information that
  542  is protected under this sub-subparagraph if the information is
  543  included in an official record of the association and is
  544  voluntarily provided by an owner and not requested by the
  545  association.
  546         f. Electronic security measures that are used by the
  547  association to safeguard data, including passwords.
  548         g. The software and operating system used by the
  549  association which allow the manipulation of data, even if the
  550  owner owns a copy of the same software used by the association.
  551  The data is part of the official records of the association.
  552         h. All affirmative acknowledgments made pursuant to s.
  553  718.121(4)(c).
  554         Section 6. Paragraphs (e), (f), (g), and (h) of subsection
  555  (2) of section 718.112, Florida Statutes, are amended to read:
  556         718.112 Bylaws.—
  557         (2) REQUIRED PROVISIONS.—The bylaws shall provide for the
  558  following and, if they do not do so, shall be deemed to include
  559  the following:
  560         (e) Budget meeting.—
  561         1. Any meeting at which a proposed annual budget of an
  562  association will be considered by the board or unit owners shall
  563  be open to all unit owners. At least 14 days prior to such a
  564  meeting, the board shall hand deliver to each unit owner, mail
  565  to each unit owner at the address last furnished to the
  566  association by the unit owner, or electronically transmit to the
  567  location furnished by the unit owner for that purpose a notice
  568  of such meeting and a copy of the proposed annual budget. An
  569  officer or manager of the association, or other person providing
  570  notice of such meeting, shall execute an affidavit evidencing
  571  compliance with such notice requirement, and such affidavit
  572  shall be filed among the official records of the association.
  573         2.a. If a board adopts in any fiscal year an annual budget
  574  which requires assessments against unit owners which exceed 115
  575  percent of assessments for the preceding fiscal year, the board
  576  shall conduct a special meeting of the unit owners to consider a
  577  substitute budget if the board receives, within 21 days after
  578  adoption of the annual budget, a written request for a special
  579  meeting from at least 10 percent of all voting interests. The
  580  special meeting shall be conducted within 60 days after adoption
  581  of the annual budget. At least 14 days prior to such special
  582  meeting, the board shall hand deliver to each unit owner, or
  583  mail to each unit owner at the address last furnished to the
  584  association, a notice of the meeting. An officer or manager of
  585  the association, or other person providing notice of such
  586  meeting shall execute an affidavit evidencing compliance with
  587  this notice requirement, and such affidavit shall be filed among
  588  the official records of the association. Unit owners may
  589  consider and adopt a substitute budget at the special meeting. A
  590  substitute budget is adopted if approved by a majority of all
  591  voting interests unless the bylaws require adoption by a greater
  592  percentage of voting interests. If there is not a quorum at the
  593  special meeting or a substitute budget is not adopted, the
  594  annual budget previously adopted by the board shall take effect
  595  as scheduled.
  596         b. Any determination of whether assessments exceed 115
  597  percent of assessments for the prior fiscal year shall exclude
  598  any authorized provision for reasonable reserves for repair or
  599  replacement of the condominium property, anticipated expenses of
  600  the association which the board does not expect to be incurred
  601  on a regular or annual basis, insurance premiums, or assessments
  602  for betterments to the condominium property.
  603         c. If the developer controls the board, assessments shall
  604  not exceed 115 percent of assessments for the prior fiscal year
  605  unless approved by a majority of all voting interests.
  606         (f) Annual budget.—
  607         1. The proposed annual budget of estimated revenues and
  608  expenses must be detailed and must show the amounts budgeted by
  609  accounts and expense classifications, including, at a minimum,
  610  any applicable expenses listed in s. 718.504(21). The board
  611  shall adopt the annual budget at least 14 days before the start
  612  of the association’s fiscal year. In the event that the board
  613  fails to timely adopt the annual budget a second time, it is
  614  deemed a minor violation and the prior year’s budget shall
  615  continue in effect until a new budget is adopted. A
  616  multicondominium association must adopt a separate budget of
  617  common expenses for each condominium the association operates
  618  and must adopt a separate budget of common expenses for the
  619  association. In addition, if the association maintains limited
  620  common elements with the cost to be shared only by those
  621  entitled to use the limited common elements as provided for in
  622  s. 718.113(1), the budget or a schedule attached to it must show
  623  the amount budgeted for this maintenance. If, after turnover of
  624  control of the association to the unit owners, any of the
  625  expenses listed in s. 718.504(21) are not applicable, they do
  626  not need to be listed.
  627         2.a. In addition to annual operating expenses, the budget
  628  must include reserve accounts for capital expenditures and
  629  deferred maintenance. These accounts must include, but are not
  630  limited to, roof replacement, building painting, and pavement
  631  resurfacing, regardless of the amount of deferred maintenance
  632  expense or replacement cost, and any other item that has a
  633  deferred maintenance expense or replacement cost that exceeds
  634  $10,000. The amount to be reserved for an item is determined by
  635  the association’s most recent structural integrity reserve study
  636  that must be completed by December 31, 2024. If the amount to be
  637  reserved for an item is not in the association’s initial or most
  638  recent structural integrity reserve study or the association has
  639  not completed a structural integrity reserve study, the amount
  640  must be computed using a formula based upon estimated remaining
  641  useful life and estimated replacement cost or deferred
  642  maintenance expense of the reserve item. In a budget adopted by
  643  an association that is required to obtain a structural integrity
  644  reserve study, reserves must be maintained for the items
  645  identified in paragraph (g) for which the association is
  646  responsible pursuant to the declaration of condominium, and the
  647  reserve amount for such items must be based on the findings and
  648  recommendations of the association’s most recent structural
  649  integrity reserve study. With respect to items for which an
  650  estimate of useful life is not readily ascertainable or with an
  651  estimated remaining useful life of greater than 25 years, an
  652  association is not required to reserve replacement costs for
  653  such items, but an association must reserve the amount of
  654  deferred maintenance expense, if any, which is recommended by
  655  the structural integrity reserve study for such items. The
  656  association may adjust replacement reserve assessments annually
  657  to take into account an inflation adjustment and any changes in
  658  estimates or extension of the useful life of a reserve item
  659  caused by deferred maintenance. The members of a unit-owner
  660  controlled association may determine, by a majority vote of the
  661  total voting interests at a duly called meeting of the
  662  association, to provide no reserves or less reserves than
  663  required by this subsection. For a budget adopted on or after
  664  Effective December 31, 2024, the members of a unit-owner
  665  controlled association that must obtain a structural integrity
  666  reserve study may not determine to provide no reserves or less
  667  reserves than required by this subsection for items listed in
  668  paragraph (g), except that members of an association operating a
  669  multicondominium may determine to provide no reserves or less
  670  reserves than required by this subsection if an alternative
  671  funding method has been approved by the division.
  672         b. Before turnover of control of an association by a
  673  developer to unit owners other than a developer under s.
  674  718.301, the developer-controlled association may not vote to
  675  waive the reserves or reduce funding of the reserves. If a
  676  meeting of the unit owners has been called to determine whether
  677  to waive or reduce the funding of reserves and no such result is
  678  achieved or a quorum is not attained, the reserves included in
  679  the budget shall go into effect. After the turnover, the
  680  developer may vote its voting interest to waive or reduce the
  681  funding of reserves.
  682         3. Reserve funds and any interest accruing thereon shall
  683  remain in the reserve account or accounts, and may be used only
  684  for authorized reserve expenditures unless their use for other
  685  purposes is approved in advance by a majority vote of all the
  686  total voting interests at a duly called meeting of the
  687  association. Before turnover of control of an association by a
  688  developer to unit owners other than the developer pursuant to s.
  689  718.301, the developer-controlled association may not vote to
  690  use reserves for purposes other than those for which they were
  691  intended. For a budget adopted on or after Effective December
  692  31, 2024, members of a unit-owner-controlled association that
  693  must obtain a structural integrity reserve study may not vote to
  694  use reserve funds, or any interest accruing thereon, that are
  695  reserved for items listed in paragraph (g) for any other purpose
  696  other than the replacement or deferred maintenance costs of the
  697  components listed in paragraph (g) their intended purpose.
  698         4. The only voting interests that are eligible to vote on
  699  questions that involve waiving or reducing the funding of
  700  reserves, or using existing reserve funds for purposes other
  701  than purposes for which the reserves were intended, are the
  702  voting interests of the units subject to assessment to fund the
  703  reserves in question. Proxy questions relating to waiving or
  704  reducing the funding of reserves or using existing reserve funds
  705  for purposes other than purposes for which the reserves were
  706  intended must contain the following statement in capitalized,
  707  bold letters in a font size larger than any other used on the
  708  face of the proxy ballot: WAIVING OF RESERVES, IN WHOLE OR IN
  709  PART, OR ALLOWING ALTERNATIVE USES OF EXISTING RESERVES MAY
  710  RESULT IN UNIT OWNER LIABILITY FOR PAYMENT OF UNANTICIPATED
  711  SPECIAL ASSESSMENTS REGARDING THOSE ITEMS.
  712         (g) Structural integrity reserve study.—
  713         1. A residential condominium An association must have a
  714  structural integrity reserve study completed at least every 10
  715  years after the condominium’s creation for each building on the
  716  condominium property that is three stories or higher in height
  717  as determined by the Florida Building Code which includes, at a
  718  minimum, a study of the following items as related to the
  719  structural integrity and safety of the building:
  720         a. Roof.
  721         b. Structure, including load-bearing walls and or other
  722  primary structural members and primary structural systems as
  723  those terms are defined in s. 627.706.
  724         c. Floor.
  725         d. Foundation.
  726         e. Fireproofing and fire protection systems.
  727         d.f. Plumbing.
  728         e.g. Electrical systems.
  729         f.h. Waterproofing and exterior painting.
  730         g.i. Windows and exterior doors.
  731         h.j. Any other item that has a deferred maintenance expense
  732  or replacement cost that exceeds $10,000 and the failure to
  733  replace or maintain such item negatively affects the items
  734  listed in sub-subparagraphs a.-g. sub-subparagraphs a.-i., as
  735  determined by the licensed engineer or architect performing the
  736  visual inspection portion of the structural integrity reserve
  737  study.
  738         2. A structural integrity reserve study is based on a
  739  visual inspection of the condominium property. A structural
  740  integrity reserve study may be performed by any person qualified
  741  to perform such study. However, the visual inspection portion of
  742  the structural integrity reserve study must be performed or
  743  verified by an engineer licensed under chapter 471, an architect
  744  licensed under chapter 481, or a person certified as a reserve
  745  specialist or professional reserve analyst by the Community
  746  Associations Institute or the Association of Professional
  747  Reserve Analysts.
  748         3. At a minimum, a structural integrity reserve study must
  749  identify each item of the condominium property being visually
  750  inspected, state the estimated remaining useful life and the
  751  estimated replacement cost or deferred maintenance expense of
  752  each item of the condominium property being visually inspected,
  753  and provide a reserve funding schedule with a recommended annual
  754  reserve amount that achieves the estimated replacement cost or
  755  deferred maintenance expense of each item of condominium
  756  property being visually inspected by the end of the estimated
  757  remaining useful life of the item. The structural integrity
  758  reserve study may recommend that reserves do not need to be
  759  maintained for any item for which an estimate of useful life and
  760  an estimate of replacement cost cannot be determined, or the
  761  study may recommend a deferred maintenance expense amount for
  762  such item. The structural integrity reserve study may recommend
  763  that reserves for replacement costs do not need to be maintained
  764  for any item with an estimated remaining useful life of greater
  765  than 25 years, but the study may recommend a deferred
  766  maintenance expense amount for such item.
  767         4. This paragraph does not apply to buildings less than
  768  three stories in height; single-family, two-family, or three
  769  family dwellings with three or fewer habitable stories above
  770  ground; any portion or component of a building that has not been
  771  submitted to the condominium form of ownership; or any portion
  772  or component of a building that is maintained by a party other
  773  than the association.
  774         5. Before a developer turns over control of an association
  775  to unit owners other than the developer, the developer must have
  776  a turnover inspection report in compliance with s. 718.301(4)(p)
  777  and (q) structural integrity reserve study completed for each
  778  building on the condominium property that is three stories or
  779  higher in height.
  780         6.3. Associations existing on or before July 1, 2022, which
  781  are controlled by unit owners other than the developer, must
  782  have a structural integrity reserve study completed by December
  783  31, 2024, for each building on the condominium property that is
  784  three stories or higher in height. An association that is
  785  required to complete a milestone inspection in accordance with
  786  s. 553.899 on or before December 31, 2026, may complete the
  787  structural integrity reserve study simultaneously with the
  788  milestone inspection. In no event may the structural integrity
  789  reserve study be completed after December 31, 2026.
  790         7. If the milestone inspection required by s. 553.899, or
  791  an inspection completed for a similar local requirement, was
  792  performed within the past 5 years and meets the requirements of
  793  this paragraph, such inspection may be used in place of the
  794  visual inspection portion of the structural integrity reserve
  795  study.
  796         8.4. If the officers or directors of an association
  797  willfully and knowingly fail fails to complete a structural
  798  integrity reserve study pursuant to this paragraph, such failure
  799  is a breach of an officer’s and director’s fiduciary
  800  relationship to the unit owners under s. 718.111(1).
  801         (h) Mandatory milestone inspections.—If an association is
  802  required to have a milestone inspection performed pursuant to s.
  803  553.899, the association must arrange for the milestone
  804  inspection to be performed and is responsible for ensuring
  805  compliance with the requirements of s. 553.899. The association
  806  is responsible for all costs associated with the milestone
  807  inspection attributable to the portions of the building which
  808  the association is responsible for maintaining under the
  809  governing documents of the association. If the officers or
  810  directors of an association willfully and knowingly fail to have
  811  a milestone inspection performed pursuant to s. 553.899, such
  812  failure is a breach of the officers’ and directors’ fiduciary
  813  relationship to the unit owners under s. 718.111(1)(a). Within
  814  14 days after receipt of a written notice from the local
  815  enforcement agency that a milestone inspection is required, the
  816  association must notify the unit owners of the required
  817  milestone inspection and provide the date by which the milestone
  818  inspection must be completed. Such notice may be given by
  819  electronic submission to unit owners who consent to receive
  820  notice by electronic submission or by posting on the
  821  association’s website. Within 45 days after receiving Upon
  822  completion of a phase one or phase two milestone inspection and
  823  receipt of the inspector-prepared summary of the inspection
  824  report from the architect or engineer who performed the
  825  inspection, the association must distribute a copy of the
  826  inspector-prepared summary of the inspection report to each unit
  827  owner, regardless of the findings or recommendations in the
  828  report, by United States mail or personal delivery at the
  829  mailing address, property address, or any other address of the
  830  owner provided to fulfill the association’s notice requirements
  831  under this chapter and by electronic transmission to the e-mail
  832  address or facsimile number provided to fulfill the
  833  association’s notice requirements to unit owners who previously
  834  consented to receive notice by electronic transmission; must
  835  post a copy of the inspector-prepared summary in a conspicuous
  836  place on the condominium property; and must publish the full
  837  report and inspector-prepared summary on the association’s
  838  website, if the association is required to have a website.
  839         Section 7. Effective July 1, 2027, subsection (5) of
  840  section 718.1255, Florida Statutes, is amended, and paragraph
  841  (d) is added to subsection (1) of that section, to read:
  842         718.1255 Alternative dispute resolution; mediation;
  843  nonbinding arbitration; applicability.—
  844         (1) DEFINITIONS.—As used in this section, the term
  845  “dispute” means any disagreement between two or more parties
  846  that involves:
  847         (d) The failure of a board of administration, when required
  848  by this chapter or an association document, to:
  849         1. Obtain the milestone inspection required under s.
  850  553.899.
  851         2. Obtain a structural integrity reserve study required
  852  under s. 718.112(2)(g).
  853         3. Fund reserves as required for an item identified in s.
  854  718.112(2)(g).
  855         4. Make or provide necessary maintenance or repairs of
  856  condominium property recommended by a milestone inspection or a
  857  structural integrity reserve study.
  858  
  859  “Dispute” does not include any disagreement that primarily
  860  involves: title to any unit or common element; the
  861  interpretation or enforcement of any warranty; the levy of a fee
  862  or assessment, or the collection of an assessment levied against
  863  a party; the eviction or other removal of a tenant from a unit;
  864  alleged breaches of fiduciary duty by one or more directors; or
  865  claims for damages to a unit based upon the alleged failure of
  866  the association to maintain the common elements or condominium
  867  property.
  868         (5) PRESUIT MEDIATION.—In lieu of the initiation of
  869  nonbinding arbitration as provided in subsections (1)-(4), a
  870  party may submit a dispute to presuit mediation in accordance
  871  with s. 720.311; however, election and recall disputes are not
  872  eligible for mediation and such disputes must be arbitrated by
  873  the division or filed in a court of competent jurisdiction.
  874  Disputes identified in paragraph (1)(d) are not subject to
  875  nonbinding arbitration under subsection (4) and must be
  876  submitted to presuit mediation in accordance with s. 720.311.
  877         Section 8. Subsection (1) of section 718.113, Florida
  878  Statutes, is amended to read:
  879         718.113 Maintenance; limitation upon improvement; display
  880  of flag; hurricane shutters and protection; display of religious
  881  decorations.—
  882         (1) Maintenance of the common elements is the
  883  responsibility of the association, except for any maintenance
  884  responsibility for limited common elements assigned to the unit
  885  owner by the declaration. The association shall provide for the
  886  maintenance, repair, and replacement of the condominium property
  887  for which it bears responsibility pursuant to the declaration of
  888  condominium. After turnover of control of the association to the
  889  unit owners, the association must perform any required
  890  maintenance identified by the developer pursuant to s.
  891  718.301(4)(p) and (q) until the association obtains new
  892  maintenance protocols from a licensed professional engineer or
  893  architect or a person certified as a reserve specialist or
  894  professional reserve analyst by the Community Associations
  895  Institute or the Association of Professional Reserve Analysts.
  896  The declaration may provide that certain limited common elements
  897  shall be maintained by those entitled to use the limited common
  898  elements or that the association shall provide the maintenance,
  899  either as a common expense or with the cost shared only by those
  900  entitled to use the limited common elements. If the maintenance
  901  is to be by the association at the expense of only those
  902  entitled to use the limited common elements, the declaration
  903  shall describe in detail the method of apportioning such costs
  904  among those entitled to use the limited common elements, and the
  905  association may use the provisions of s. 718.116 to enforce
  906  payment of the shares of such costs by the unit owners entitled
  907  to use the limited common elements.
  908         Section 9. Present paragraphs (q) and (r) of subsection (4)
  909  of section 718.301, Florida Statutes, are redesignated as
  910  paragraphs (r) and (s), respectively, a new paragraph (q) is
  911  added to that subsection, and paragraph (p) of that subsection
  912  is amended, to read:
  913         718.301 Transfer of association control; claims of defect
  914  by association.—
  915         (4) At the time that unit owners other than the developer
  916  elect a majority of the members of the board of administration
  917  of an association, the developer shall relinquish control of the
  918  association, and the unit owners shall accept control.
  919  Simultaneously, or for the purposes of paragraph (c) not more
  920  than 90 days thereafter, the developer shall deliver to the
  921  association, at the developer’s expense, all property of the
  922  unit owners and of the association which is held or controlled
  923  by the developer, including, but not limited to, the following
  924  items, if applicable, as to each condominium operated by the
  925  association:
  926         (p) Notwithstanding when the certificate of occupancy was
  927  issued or the height of the building, a turnover inspection
  928  report a milestone inspection report in compliance with s.
  929  553.899 included in the official records, under seal of an
  930  architect or engineer authorized to practice in this state or a
  931  person certified as a reserve specialist or professional reserve
  932  analyst by the Community Associations Institute or the
  933  Association of Professional Reserve Analysts, and attesting to
  934  required maintenance, condition, useful life, and replacement
  935  costs of the following applicable condominium property
  936  comprising a turnover inspection report:
  937         1. Roof.
  938         2. Structure, including load-bearing walls and primary
  939  structural members and primary structural systems as those terms
  940  are defined in s. 627.706.
  941         3. Fireproofing and fire protection systems.
  942         4. Plumbing Elevators.
  943         5. Electrical systems Heating and cooling systems.
  944         6. Waterproofing and exterior painting Plumbing.
  945         7. Windows and exterior doors Electrical systems.
  946         8. Swimming pool or spa and equipment.
  947         9. Seawalls.
  948         10. Pavement and parking areas.
  949         11. Drainage systems.
  950         12. Painting.
  951         13. Irrigation systems.
  952         14. Waterproofing.
  953         (q) Notwithstanding when the certificate of occupancy was
  954  issued or the height of the building, a turnover inspection
  955  report included in the official records, under seal of an
  956  architect or engineer authorized to practice in this state or a
  957  person certified as a reserve specialist or professional reserve
  958  analyst by the Community Associations Institute or the
  959  Association of Professional Reserve Analysts, and attesting to
  960  required maintenance, condition, useful life, and replacement
  961  costs of the following applicable condominium property
  962  comprising a turnover inspection report:
  963         1. Elevators.
  964         2. Heating and cooling systems.
  965         3. Swimming pool or spa and equipment.
  966         4. Seawalls.
  967         5. Pavement and parking areas.
  968         6. Drainage systems.
  969         7. Irrigation systems.
  970         Section 10. Paragraph (b) of subsection (1) and paragraph
  971  (a) of subsection (2) of section 718.503, Florida Statutes, are
  972  amended, and paragraph (d) is added to subsection (1) and
  973  paragraph (e) is added to subsection (2) of that section, to
  974  read:
  975         718.503 Developer disclosure prior to sale; nondeveloper
  976  unit owner disclosure prior to sale; voidability.—
  977         (1) DEVELOPER DISCLOSURE.—
  978         (b) Copies of documents to be furnished to prospective
  979  buyer or lessee.—Until such time as the developer has furnished
  980  the documents listed below to a person who has entered into a
  981  contract to purchase a residential unit or lease it for more
  982  than 5 years, the contract may be voided by that person,
  983  entitling the person to a refund of any deposit together with
  984  interest thereon as provided in s. 718.202. The contract may be
  985  terminated by written notice from the proposed buyer or lessee
  986  delivered to the developer within 15 days after the buyer or
  987  lessee receives all of the documents required by this section.
  988  The developer may not close for 15 days after the execution of
  989  the agreement and delivery of the documents to the buyer as
  990  evidenced by a signed receipt for documents unless the buyer is
  991  informed in the 15-day voidability period and agrees to close
  992  before the expiration of the 15 days. The developer shall retain
  993  in his or her records a separate agreement signed by the buyer
  994  as proof of the buyer’s agreement to close before the expiration
  995  of the voidability period. The developer must retain such proof
  996  for a period of 5 years after the date of the closing of the
  997  transaction. The documents to be delivered to the prospective
  998  buyer are the prospectus or disclosure statement with all
  999  exhibits, if the development is subject to s. 718.504, or, if
 1000  not, then copies of the following which are applicable:
 1001         1. The question and answer sheet described in s. 718.504,
 1002  and declaration of condominium, or the proposed declaration if
 1003  the declaration has not been recorded, which shall include the
 1004  certificate of a surveyor approximately representing the
 1005  locations required by s. 718.104.
 1006         2. The documents creating the association.
 1007         3. The bylaws.
 1008         4. The ground lease or other underlying lease of the
 1009  condominium.
 1010         5. The management contract, maintenance contract, and other
 1011  contracts for management of the association and operation of the
 1012  condominium and facilities used by the unit owners having a
 1013  service term in excess of 1 year, and any management contracts
 1014  that are renewable.
 1015         6. The estimated operating budget for the condominium and a
 1016  schedule of expenses for each type of unit, including fees
 1017  assessed pursuant to s. 718.113(1) for the maintenance of
 1018  limited common elements where such costs are shared only by
 1019  those entitled to use the limited common elements.
 1020         7. The lease of recreational and other facilities that will
 1021  be used only by unit owners of the subject condominium.
 1022         8. The lease of recreational and other common facilities
 1023  that will be used by unit owners in common with unit owners of
 1024  other condominiums.
 1025         9. The form of unit lease if the offer is of a leasehold.
 1026         10. Any declaration of servitude of properties serving the
 1027  condominium but not owned by unit owners or leased to them or
 1028  the association.
 1029         11. If the development is to be built in phases or if the
 1030  association is to manage more than one condominium, a
 1031  description of the plan of phase development or the arrangements
 1032  for the association to manage two or more condominiums.
 1033         12. If the condominium is a conversion of existing
 1034  improvements, the statements and disclosure required by s.
 1035  718.616.
 1036         13. The form of agreement for sale or lease of units.
 1037         14. A copy of the floor plan of the unit and the plot plan
 1038  showing the location of the residential buildings and the
 1039  recreation and other common areas.
 1040         15. A copy of all covenants and restrictions that will
 1041  affect the use of the property and are not contained in the
 1042  foregoing.
 1043         16. If the developer is required by state or local
 1044  authorities to obtain acceptance or approval of any dock or
 1045  marina facilities intended to serve the condominium, a copy of
 1046  any such acceptance or approval acquired by the time of filing
 1047  with the division under s. 718.502(1), or a statement that such
 1048  acceptance or approval has not been acquired or received.
 1049         17. Evidence demonstrating that the developer has an
 1050  ownership, leasehold, or contractual interest in the land upon
 1051  which the condominium is to be developed.
 1052         18. A copy of the inspector-prepared summary of the
 1053  milestone inspection report as described in s. 553.899, or a
 1054  statement in conspicuous type indicating that the required
 1055  milestone inspection described in s. 553.899 has not been
 1056  completed or that a milestone inspection is not required, as
 1057  applicable ss. 553.899 and 718.301(4)(p).
 1058         19. A copy of the association’s most recent structural
 1059  integrity reserve study, or a statement in conspicuous type
 1060  indicating that the association has not completed a required
 1061  structural integrity reserve study has not been completed or
 1062  that a structural integrity reserve study is not required, as
 1063  applicable.
 1064         20. A copy of the turnover inspection report described in
 1065  s. 718.301(4)(p) and (q) or a statement in conspicuous type
 1066  indicating that a turnover inspection report has not been
 1067  completed, as applicable.
 1068         (d) Milestone inspection, turnover inspection report, or
 1069  structural integrity reserve study.—If the association is
 1070  required to have completed a milestone inspection as described
 1071  in s. 553.899, a turnover inspection report for a turnover
 1072  inspection performed on or after July 1, 2023, or a structural
 1073  integrity reserve study, and the association has not completed
 1074  the milestone inspection, the turnover inspection report, or the
 1075  structural integrity reserve study, each contract entered into
 1076  after December 31, 2024, for the sale of a residential unit
 1077  shall contain in conspicuous type a statement indicating that
 1078  the association is required to have a milestone inspection, a
 1079  turnover inspection report, or a structural integrity reserve
 1080  study and has not completed such inspection, report, or study,
 1081  as appropriate. If the association is not required to have a
 1082  milestone inspection as described in s. 553.899 or a structural
 1083  integrity reserve study, each contract entered into after
 1084  December 31, 2024, for the sale of a residential unit shall
 1085  contain in conspicuous type a statement indicating that the
 1086  association is not required to have a milestone inspection or a
 1087  structural integrity reserve study, as appropriate. If the
 1088  association has completed a milestone inspection as described in
 1089  s. 553.899, a turnover inspection report for a turnover
 1090  inspection performed on or after July 1, 2023, or a structural
 1091  integrity reserve study, each contract entered into after
 1092  December 31, 2024, for the sale of a residential unit shall
 1093  contain in conspicuous type:
 1094         1. A clause which states: THE BUYER HEREBY ACKNOWLEDGES
 1095  THAT BUYER HAS BEEN PROVIDED A CURRENT COPY OF THE INSPECTOR
 1096  PREPARED SUMMARY OF THE MILESTONE INSPECTION REPORT AS DESCRIBED
 1097  IN SECTION 553.899, FLORIDA STATUTES, IF APPLICABLE; A COPY OF
 1098  THE TURNOVER INSPECTION REPORT DESCRIBED IN SECTION
 1099  718.301(4)(p) AND (q), FLORIDA STATUTES, IF APPLICABLE; AND A
 1100  COPY OF THE ASSOCIATION’S MOST RECENT STRUCTURAL INTEGRITY
 1101  RESERVE STUDY DESCRIBED IN SECTIONS 718.103(26) AND
 1102  718.112(2)(g), FLORIDA STATUTES, IF APPLICABLE, MORE THAN 15
 1103  DAYS, EXCLUDING SATURDAYS, SUNDAYS, AND LEGAL HOLIDAYS, PRIOR TO
 1104  EXECUTION OF THIS CONTRACT; and
 1105         2. A clause which states: THIS AGREEMENT IS VOIDABLE BY
 1106  BUYER BY DELIVERING WRITTEN NOTICE OF THE BUYER’S INTENTION TO
 1107  CANCEL WITHIN 15 DAYS, EXCLUDING SATURDAYS, SUNDAYS, AND LEGAL
 1108  HOLIDAYS, AFTER THE DATE OF EXECUTION OF THIS AGREEMENT BY THE
 1109  BUYER AND RECEIPT BY BUYER OF A CURRENT COPY OF THE INSPECTOR
 1110  PREPARED SUMMARY OF THE MILESTONE INSPECTION REPORT AS DESCRIBED
 1111  IN SECTION 553.899, FLORIDA STATUTES, IF APPLICABLE; A COPY OF
 1112  THE TURNOVER INSPECTION REPORT DESCRIBED IN SECTION
 1113  718.301(4)(p) AND (q), FLORIDA STATUTES, IF APPLICABLE; AND A
 1114  COPY OF THE ASSOCIATION’S MOST RECENT STRUCTURAL INTEGRITY
 1115  RESERVE STUDY DESCRIBED IN SECTIONS 718.103(26) AND
 1116  718.112(2)(g), FLORIDA STATUTES, IF APPLICABLE. ANY PURPORTED
 1117  WAIVER OF THESE VOIDABILITY RIGHTS SHALL BE OF NO EFFECT. BUYER
 1118  MAY EXTEND THE TIME FOR CLOSING FOR A PERIOD OF NOT MORE THAN 15
 1119  DAYS, EXCLUDING SATURDAYS, SUNDAYS, AND LEGAL HOLIDAYS, AFTER
 1120  THE BUYER RECEIVES A CURRENT COPY OF THE INSPECTOR-PREPARED
 1121  SUMMARY OF THE MILESTONE INSPECTION REPORT AS DESCRIBED IN
 1122  SECTION 553.899, FLORIDA STATUTES; A COPY OF THE TURNOVER
 1123  INSPECTION REPORT DESCRIBED IN SECTION 718.301(4)(p) AND (q),
 1124  FLORIDA STATUTES; OR A COPY OF THE ASSOCIATION’S MOST RECENT
 1125  STRUCTURAL INTEGRITY RESERVE STUDY DESCRIBED IN SECTIONS
 1126  718.103(26) AND 718.112(2)(g), FLORIDA STATUTES, IF REQUESTED IN
 1127  WRITING. BUYER’S RIGHT TO VOID THIS AGREEMENT SHALL TERMINATE AT
 1128  CLOSING.
 1129  
 1130  A contract that does not conform to the requirements of this
 1131  paragraph is voidable at the option of the purchaser prior to
 1132  closing.
 1133         (2) NONDEVELOPER DISCLOSURE.—
 1134         (a) Each unit owner who is not a developer as defined by
 1135  this chapter must comply with this subsection before the sale of
 1136  his or her unit. Each prospective purchaser who has entered into
 1137  a contract for the purchase of a condominium unit is entitled,
 1138  at the seller’s expense, to a current copy of all of the
 1139  following:
 1140         1. The declaration of condominium.
 1141         2. Articles of incorporation of the association.
 1142         3. Bylaws and rules of the association.
 1143         4. Financial information required by s. 718.111.
 1144         5. A copy of the inspector-prepared summary of the
 1145  milestone inspection report as described in s. 553.899 ss.
 1146  553.899 and 718.301(4)(p), if applicable.
 1147         6. The association’s most recent structural integrity
 1148  reserve study or a statement that the association has not
 1149  completed a structural integrity reserve study.
 1150         7. A copy of the inspection report described in s.
 1151  718.301(4)(p) and (q) for a turnover inspection performed on or
 1152  after July 1, 2023.
 1153         8. The document entitled “Frequently Asked Questions and
 1154  Answers” required by s. 718.504.
 1155         (e) If the association is required to have completed a
 1156  milestone inspection as described in s. 553.899, a turnover
 1157  inspection report for a turnover inspection performed on or
 1158  after July 1, 2023, or a structural integrity reserve study, and
 1159  the association has not completed the milestone inspection, the
 1160  turnover inspection report, or the structural integrity reserve
 1161  study, each contract entered into after December 31, 2024, for
 1162  the sale of a residential unit shall contain in conspicuous type
 1163  a statement indicating that the association is required to have
 1164  a milestone inspection, a turnover inspection report, or a
 1165  structural integrity reserve study and has not completed such
 1166  inspection, report, or study, as appropriate. If the association
 1167  is not required to have a milestone inspection as described in
 1168  s. 553.899 or a structural integrity reserve study, each
 1169  contract entered into after December 31, 2024, for the sale of a
 1170  residential unit shall contain in conspicuous type a statement
 1171  indicating that the association is not required to have a
 1172  milestone inspection or a structural integrity reserve study, as
 1173  appropriate. If the association has completed a milestone
 1174  inspection as described in s. 553.899, a turnover inspection
 1175  report for a turnover inspection performed on or after July 1,
 1176  2023, or a structural integrity reserve study, each contract
 1177  entered into after December 31, 2024, for the resale of a
 1178  residential unit shall contain in conspicuous type:
 1179         1. A clause which states: THE BUYER HEREBY ACKNOWLEDGES
 1180  THAT BUYER HAS BEEN PROVIDED A CURRENT COPY OF THE INSPECTOR
 1181  PREPARED SUMMARY OF THE MILESTONE INSPECTION REPORT AS DESCRIBED
 1182  IN SECTION 553.899, FLORIDA STATUTES, IF APPLICABLE; A COPY OF
 1183  THE TURNOVER INSPECTION REPORT DESCRIBED IN SECTION
 1184  718.301(4)(p) AND (q), FLORIDA STATUTES, IF APPLICABLE; AND A
 1185  COPY OF THE ASSOCIATION’S MOST RECENT STRUCTURAL INTEGRITY
 1186  RESERVE STUDY DESCRIBED IN SECTIONS 718.103(26) AND
 1187  718.112(2)(g), FLORIDA STATUTES, IF APPLICABLE, MORE THAN 3
 1188  DAYS, EXCLUDING SATURDAYS, SUNDAYS, AND LEGAL HOLIDAYS, PRIOR TO
 1189  EXECUTION OF THIS CONTRACT; and
 1190         2. A clause which states: THIS AGREEMENT IS VOIDABLE BY
 1191  BUYER BY DELIVERING WRITTEN NOTICE OF THE BUYER’S INTENTION TO
 1192  CANCEL WITHIN 3 DAYS, EXCLUDING SATURDAYS, SUNDAYS, AND LEGAL
 1193  HOLIDAYS, AFTER THE DATE OF EXECUTION OF THIS AGREEMENT BY THE
 1194  BUYER AND RECEIPT BY BUYER OF A CURRENT COPY OF THE INSPECTOR
 1195  PREPARED SUMMARY OF THE MILESTONE INSPECTION REPORT AS DESCRIBED
 1196  IN SECTION 553.899, FLORIDA STATUTES, IF APPLICABLE; A COPY OF
 1197  THE TURNOVER INSPECTION REPORT DESCRIBED IN SECTION
 1198  718.301(4)(p) AND (q), FLORIDA STATUTES, IF APPLICABLE; AND A
 1199  COPY OF THE ASSOCIATION’S MOST RECENT STRUCTURAL INTEGRITY
 1200  RESERVE STUDY DESCRIBED IN SECTIONS 718.103(26) AND
 1201  718.112(2)(g), FLORIDA STATUTES, IF APPLICABLE. ANY PURPORTED
 1202  WAIVER OF THESE VOIDABILITY RIGHTS SHALL BE OF NO EFFECT. BUYER
 1203  MAY EXTEND THE TIME FOR CLOSING FOR A PERIOD OF NOT MORE THAN 3
 1204  DAYS, EXCLUDING SATURDAYS, SUNDAYS, AND LEGAL HOLIDAYS, AFTER
 1205  THE BUYER RECEIVES A CURRENT COPY OF THE INSPECTOR-PREPARED
 1206  SUMMARY OF THE MILESTONE INSPECTION REPORT AS DESCRIBED IN
 1207  SECTION 553.899, FLORIDA STATUTES; A COPY OF THE TURNOVER
 1208  INSPECTION REPORT DESCRIBED IN SECTION 718.301(4)(p) AND (q),
 1209  FLORIDA STATUTES; OR A COPY OF THE ASSOCIATION’S MOST RECENT
 1210  STRUCTURAL INTEGRITY RESERVE STUDY DESCRIBED IN SECTIONS
 1211  718.103(26) AND 718.112(2)(g), FLORIDA STATUTES, IF REQUESTED IN
 1212  WRITING. BUYER’S RIGHT TO VOID THIS AGREEMENT SHALL TERMINATE AT
 1213  CLOSING.
 1214  
 1215  A contract that does not conform to the requirements of this
 1216  paragraph is voidable at the option of the purchaser prior to
 1217  closing.
 1218         Section 11. Paragraph (a) of subsection (7) and paragraph
 1219  (c) of subsection (21) of section 718.504, Florida Statutes, are
 1220  amended to read:
 1221         718.504 Prospectus or offering circular.—Every developer of
 1222  a residential condominium which contains more than 20
 1223  residential units, or which is part of a group of residential
 1224  condominiums which will be served by property to be used in
 1225  common by unit owners of more than 20 residential units, shall
 1226  prepare a prospectus or offering circular and file it with the
 1227  Division of Florida Condominiums, Timeshares, and Mobile Homes
 1228  prior to entering into an enforceable contract of purchase and
 1229  sale of any unit or lease of a unit for more than 5 years and
 1230  shall furnish a copy of the prospectus or offering circular to
 1231  each buyer. In addition to the prospectus or offering circular,
 1232  each buyer shall be furnished a separate page entitled
 1233  “Frequently Asked Questions and Answers,” which shall be in
 1234  accordance with a format approved by the division and a copy of
 1235  the financial information required by s. 718.111. This page
 1236  shall, in readable language, inform prospective purchasers
 1237  regarding their voting rights and unit use restrictions,
 1238  including restrictions on the leasing of a unit; shall indicate
 1239  whether and in what amount the unit owners or the association is
 1240  obligated to pay rent or land use fees for recreational or other
 1241  commonly used facilities; shall contain a statement identifying
 1242  that amount of assessment which, pursuant to the budget, would
 1243  be levied upon each unit type, exclusive of any special
 1244  assessments, and which shall further identify the basis upon
 1245  which assessments are levied, whether monthly, quarterly, or
 1246  otherwise; shall state and identify any court cases in which the
 1247  association is currently a party of record in which the
 1248  association may face liability in excess of $100,000; and which
 1249  shall further state whether membership in a recreational
 1250  facilities association is mandatory, and if so, shall identify
 1251  the fees currently charged per unit type. The division shall by
 1252  rule require such other disclosure as in its judgment will
 1253  assist prospective purchasers. The prospectus or offering
 1254  circular may include more than one condominium, although not all
 1255  such units are being offered for sale as of the date of the
 1256  prospectus or offering circular. The prospectus or offering
 1257  circular must contain the following information:
 1258         (7) A description of the recreational and other facilities
 1259  that will be used in common with other condominiums, community
 1260  associations, or planned developments which require the payment
 1261  of the maintenance and expenses of such facilities, directly or
 1262  indirectly, by the unit owners. The description shall include,
 1263  but not be limited to, the following:
 1264         (a) Each building and facility committed to be built and a
 1265  summary description of the structural integrity of each building
 1266  for which reserves are required pursuant to s. 718.112(2)(g).
 1267  
 1268  Descriptions shall include location, areas, capacities, numbers,
 1269  volumes, or sizes and may be stated as approximations or
 1270  minimums.
 1271         (21) An estimated operating budget for the condominium and
 1272  the association, and a schedule of the unit owner’s expenses
 1273  shall be attached as an exhibit and shall contain the following
 1274  information:
 1275         (c) The estimated items of expenses of the condominium and
 1276  the association, except as excluded under paragraph (b),
 1277  including, but not limited to, the following items, which shall
 1278  be stated as an association expense collectible by assessments
 1279  or as unit owners’ expenses payable to persons other than the
 1280  association:
 1281         1. Expenses for the association and condominium:
 1282         a. Administration of the association.
 1283         b. Management fees.
 1284         c. Maintenance.
 1285         d. Rent for recreational and other commonly used
 1286  facilities.
 1287         e. Taxes upon association property.
 1288         f. Taxes upon leased areas.
 1289         g. Insurance.
 1290         h. Security provisions.
 1291         i. Other expenses.
 1292         j. Operating capital.
 1293         k. Reserves for all applicable items referenced in s.
 1294  718.112(2)(g).
 1295         l. Fees payable to the division.
 1296         2. Expenses for a unit owner:
 1297         a. Rent for the unit, if subject to a lease.
 1298         b. Rent payable by the unit owner directly to the lessor or
 1299  agent under any recreational lease or lease for the use of
 1300  commonly used facilities, which use and payment is a mandatory
 1301  condition of ownership and is not included in the common expense
 1302  or assessments for common maintenance paid by the unit owners to
 1303  the association.
 1304         Section 12. Subsection (24) of section 719.103, Florida
 1305  Statutes, is amended to read:
 1306         719.103 Definitions.—As used in this chapter:
 1307         (24) “Structural integrity reserve study” means a study of
 1308  the reserve funds required for future major repairs and
 1309  replacement of the cooperative property performed as required
 1310  under s. 719.106(1)(k) common areas based on a visual inspection
 1311  of the common areas. A structural integrity reserve study may be
 1312  performed by any person qualified to perform such study.
 1313  However, the visual inspection portion of the structural
 1314  integrity reserve study must be performed by an engineer
 1315  licensed under chapter 471 or an architect licensed under
 1316  chapter 481. At a minimum, a structural integrity reserve study
 1317  must identify the common areas being visually inspected, state
 1318  the estimated remaining useful life and the estimated
 1319  replacement cost or deferred maintenance expense of the common
 1320  areas being visually inspected, and provide a recommended annual
 1321  reserve amount that achieves the estimated replacement cost or
 1322  deferred maintenance expense of each common area being visually
 1323  inspected by the end of the estimated remaining useful life of
 1324  each common area.
 1325         Section 13. Present subsections (5) through (11) of section
 1326  719.104, Florida Statutes, are redesignated as subsections (6)
 1327  through (12), respectively, a new subsection (5) is added to
 1328  that section, and paragraph (c) of subsection (2) of that
 1329  section is amended, to read:
 1330         719.104 Cooperatives; access to units; records; financial
 1331  reports; assessments; purchase of leases.—
 1332         (2) OFFICIAL RECORDS.—
 1333         (c) The official records of the association are open to
 1334  inspection by any association member and any person authorized
 1335  by an association member as a or the authorized representative
 1336  of such member at all reasonable times. The right to inspect the
 1337  records includes the right to make or obtain copies, at the
 1338  reasonable expense, if any, of the association member and of the
 1339  person authorized by the association member as a representative
 1340  of such member. A renter of a unit has a right to inspect and
 1341  copy only the association’s bylaws and rules and the inspection
 1342  reports described in ss. 553.899 and 719.301(4)(p). The
 1343  association may adopt reasonable rules regarding the frequency,
 1344  time, location, notice, and manner of record inspections and
 1345  copying, but may not require a member to demonstrate any purpose
 1346  or state any reason for the inspection. The failure of an
 1347  association to provide the records within 10 working days after
 1348  receipt of a written request creates a rebuttable presumption
 1349  that the association willfully failed to comply with this
 1350  paragraph. A member who is denied access to official records is
 1351  entitled to the actual damages or minimum damages for the
 1352  association’s willful failure to comply. The minimum damages are
 1353  $50 per calendar day for up to 10 days, beginning on the 11th
 1354  working day after receipt of the written request. The failure to
 1355  permit inspection entitles any person prevailing in an
 1356  enforcement action to recover reasonable attorney fees from the
 1357  person in control of the records who, directly or indirectly,
 1358  knowingly denied access to the records. Any person who knowingly
 1359  or intentionally defaces or destroys accounting records that are
 1360  required by this chapter to be maintained during the period for
 1361  which such records are required to be maintained, or who
 1362  knowingly or intentionally fails to create or maintain
 1363  accounting records that are required to be created or
 1364  maintained, with the intent of causing harm to the association
 1365  or one or more of its members, is personally subject to a civil
 1366  penalty under s. 719.501(1)(d). The association shall maintain
 1367  an adequate number of copies of the declaration, articles of
 1368  incorporation, bylaws, and rules, and all amendments to each of
 1369  the foregoing, as well as the question and answer sheet as
 1370  described in s. 719.504 and year-end financial information
 1371  required by the department, on the cooperative property to
 1372  ensure their availability to members and prospective purchasers,
 1373  and may charge its actual costs for preparing and furnishing
 1374  these documents to those requesting the same. An association
 1375  shall allow a member or his or her authorized representative to
 1376  use a portable device, including a smartphone, tablet, portable
 1377  scanner, or any other technology capable of scanning or taking
 1378  photographs, to make an electronic copy of the official records
 1379  in lieu of the association providing the member or his or her
 1380  authorized representative with a copy of such records. The
 1381  association may not charge a member or his or her authorized
 1382  representative for the use of a portable device. Notwithstanding
 1383  this paragraph, the following records shall not be accessible to
 1384  members:
 1385         1. Any record protected by the lawyer-client privilege as
 1386  described in s. 90.502 and any record protected by the work
 1387  product privilege, including any record prepared by an
 1388  association attorney or prepared at the attorney’s express
 1389  direction which reflects a mental impression, conclusion,
 1390  litigation strategy, or legal theory of the attorney or the
 1391  association, and which was prepared exclusively for civil or
 1392  criminal litigation or for adversarial administrative
 1393  proceedings, or which was prepared in anticipation of such
 1394  litigation or proceedings until the conclusion of the litigation
 1395  or proceedings.
 1396         2. Information obtained by an association in connection
 1397  with the approval of the lease, sale, or other transfer of a
 1398  unit.
 1399         3. Personnel records of association or management company
 1400  employees, including, but not limited to, disciplinary, payroll,
 1401  health, and insurance records. For purposes of this
 1402  subparagraph, the term “personnel records” does not include
 1403  written employment agreements with an association employee or
 1404  management company, or budgetary or financial records that
 1405  indicate the compensation paid to an association employee.
 1406         4. Medical records of unit owners.
 1407         5. Social security numbers, driver license numbers, credit
 1408  card numbers, e-mail addresses, telephone numbers, facsimile
 1409  numbers, emergency contact information, addresses of a unit
 1410  owner other than as provided to fulfill the association’s notice
 1411  requirements, and other personal identifying information of any
 1412  person, excluding the person’s name, unit designation, mailing
 1413  address, property address, and any address, e-mail address, or
 1414  facsimile number provided to the association to fulfill the
 1415  association’s notice requirements. Notwithstanding the
 1416  restrictions in this subparagraph, an association may print and
 1417  distribute to unit owners a directory containing the name, unit
 1418  address, and all telephone numbers of each unit owner. However,
 1419  an owner may exclude his or her telephone numbers from the
 1420  directory by so requesting in writing to the association. An
 1421  owner may consent in writing to the disclosure of other contact
 1422  information described in this subparagraph. The association is
 1423  not liable for the inadvertent disclosure of information that is
 1424  protected under this subparagraph if the information is included
 1425  in an official record of the association and is voluntarily
 1426  provided by an owner and not requested by the association.
 1427         6. Electronic security measures that are used by the
 1428  association to safeguard data, including passwords.
 1429         7. The software and operating system used by the
 1430  association which allow the manipulation of data, even if the
 1431  owner owns a copy of the same software used by the association.
 1432  The data is part of the official records of the association.
 1433         8. All affirmative acknowledgments made pursuant to s.
 1434  719.108(3)(b)3.
 1435         (5) MAINTENANCE.—Maintenance of the common elements is the
 1436  responsibility of the association, except for any maintenance
 1437  responsibility for limited common elements assigned to the unit
 1438  owner by the declaration. The association shall provide for the
 1439  maintenance, repair, and replacement of the cooperative property
 1440  for which it bears responsibility pursuant to the declaration of
 1441  cooperative. After turnover of control of the association to the
 1442  unit owners, the association must perform any required
 1443  maintenance identified by the developer pursuant to s.
 1444  719.301(4)(p) and (q) until the association obtains new
 1445  maintenance protocols from a licensed professional engineer or
 1446  architect or a person certified as a reserve specialist or
 1447  professional reserve analyst by the Community Associations
 1448  Institute or the Association of Professional Reserve Analysts.
 1449  The declaration may provide that certain limited common elements
 1450  shall be maintained by those entitled to use the limited common
 1451  elements or that the association shall provide the maintenance,
 1452  either as a common expense or with the cost shared only by those
 1453  entitled to use the limited common elements. If the maintenance
 1454  is to be by the association at the expense of only those
 1455  entitled to use the limited common elements, the declaration
 1456  shall describe in detail the method of apportioning such costs
 1457  among those entitled to use the limited common elements, and the
 1458  association may use the provisions of s. 719.108 to enforce
 1459  payment of the shares of such costs by the unit owners entitled
 1460  to use the limited common elements.
 1461         Section 14. Paragraphs (e), (j), (k), and (l) of subsection
 1462  (1) of section 719.106, Florida Statutes, are amended to read:
 1463         719.106 Bylaws; cooperative ownership.—
 1464         (1) MANDATORY PROVISIONS.—The bylaws or other cooperative
 1465  documents shall provide for the following, and if they do not,
 1466  they shall be deemed to include the following:
 1467         (e) Budget procedures.—
 1468         1. The board of administration shall mail, hand deliver, or
 1469  electronically transmit to each unit owner at the address last
 1470  furnished to the association, a meeting notice and copies of the
 1471  proposed annual budget of common expenses to the unit owners not
 1472  less than 14 days prior to the meeting at which the budget will
 1473  be considered. Evidence of compliance with this 14-day notice
 1474  must be made by an affidavit executed by an officer of the
 1475  association or the manager or other person providing notice of
 1476  the meeting and filed among the official records of the
 1477  association. The meeting must be open to the unit owners.
 1478         2. If an adopted budget requires assessment against the
 1479  unit owners in any fiscal or calendar year which exceeds 115
 1480  percent of the assessments for the preceding year, the board
 1481  upon written application of 10 percent of the voting interests
 1482  to the board, shall call a special meeting of the unit owners
 1483  within 30 days, upon not less than 10 days’ written notice to
 1484  each unit owner. At the special meeting, unit owners shall
 1485  consider and enact a budget. Unless the bylaws require a larger
 1486  vote, the adoption of the budget requires a vote of not less
 1487  than a majority of all the voting interests.
 1488         3. The board of administration may, in any event, propose a
 1489  budget to the unit owners at a meeting of members or by writing,
 1490  and if the budget or proposed budget is approved by the unit
 1491  owners at the meeting or by a majority of all voting interests
 1492  in writing, the budget is adopted. If a meeting of the unit
 1493  owners has been called and a quorum is not attained or a
 1494  substitute budget is not adopted by the unit owners, the budget
 1495  adopted by the board of directors goes into effect as scheduled.
 1496         4. In determining whether assessments exceed 115 percent of
 1497  similar assessments for prior years, any authorized provisions
 1498  for reasonable reserves for repair or replacement of cooperative
 1499  property, anticipated expenses by the association which are not
 1500  anticipated to be incurred on a regular or annual basis,
 1501  insurance premiums, or assessments for betterments to the
 1502  cooperative property must be excluded from computation. However,
 1503  as long as the developer is in control of the board of
 1504  administration, the board may not impose an assessment for any
 1505  year greater than 115 percent of the prior fiscal or calendar
 1506  year’s assessment without approval of a majority of all voting
 1507  interests.
 1508         (j) Annual budget.—
 1509         1. The proposed annual budget of common expenses must be
 1510  detailed and must show the amounts budgeted by accounts and
 1511  expense classifications, including, if applicable, but not
 1512  limited to, those expenses listed in s. 719.504(20). The board
 1513  of administration shall adopt the annual budget at least 14 days
 1514  before the start of the association’s fiscal year. In the event
 1515  that the board fails to timely adopt the annual budget a second
 1516  time, it is deemed a minor violation and the prior year’s budget
 1517  shall continue in effect until a new budget is adopted.
 1518         2. In addition to annual operating expenses, the budget
 1519  must include reserve accounts for capital expenditures and
 1520  deferred maintenance. These accounts must include, but not be
 1521  limited to, roof replacement, building painting, and pavement
 1522  resurfacing, regardless of the amount of deferred maintenance
 1523  expense or replacement cost, and for any other items for which
 1524  the deferred maintenance expense or replacement cost exceeds
 1525  $10,000. The amount to be reserved for an item is determined by
 1526  the association’s most recent structural integrity reserve study
 1527  that must be completed by December 31, 2024. If the amount to be
 1528  reserved for an item is not in the association’s initial or most
 1529  recent structural integrity reserve study or the association has
 1530  not completed a structural integrity reserve study, the amount
 1531  must be computed by means of a formula which is based upon
 1532  estimated remaining useful life and estimated replacement cost
 1533  or deferred maintenance expense of the reserve item. In a budget
 1534  adopted by an association that is required to obtain a
 1535  structural integrity reserve study, reserves must be maintained
 1536  for the items identified in paragraph (k) for which the
 1537  association is responsible pursuant to the declaration, and the
 1538  reserve amount for such items must be based on the findings and
 1539  recommendations of the association’s most recent structural
 1540  integrity reserve study. With respect to items for which an
 1541  estimate of useful life is not readily ascertainable or with an
 1542  estimated remaining useful life of greater than 25 years, an
 1543  association is not required to reserve replacement costs for
 1544  such items, but an association must reserve the amount of
 1545  deferred maintenance expense, if any, which is recommended by
 1546  the structural integrity reserve study for such items. The
 1547  association may adjust replacement reserve assessments annually
 1548  to take into account an inflation adjustment and any changes in
 1549  estimates or extension of the useful life of a reserve item
 1550  caused by deferred maintenance. The members of a unit-owner
 1551  controlled association may determine, by a majority vote of the
 1552  total voting interests at a duly called meeting of the
 1553  association, for a fiscal year to provide no reserves or
 1554  reserves less adequate than required by this subsection. Before
 1555  turnover of control of an association by a developer to unit
 1556  owners other than a developer under s. 719.301, the developer
 1557  controlled association may not vote to waive the reserves or
 1558  reduce funding of the reserves. For a budget adopted on or after
 1559  Effective December 31, 2024, a unit-owner-controlled association
 1560  that must obtain a structural integrity reserve study may not
 1561  determine to provide no reserves or reserves less adequate than
 1562  required by this paragraph for items listed in paragraph (k). If
 1563  a meeting of the unit owners has been called to determine to
 1564  provide no reserves, or reserves less adequate than required,
 1565  and such result is not attained or a quorum is not attained, the
 1566  reserves as included in the budget shall go into effect.
 1567         3. Reserve funds and any interest accruing thereon shall
 1568  remain in the reserve account or accounts, and shall be used
 1569  only for authorized reserve expenditures unless their use for
 1570  other purposes is approved in advance by a vote of the majority
 1571  of the total voting interests, voting in person or by limited
 1572  proxy at a duly called meeting of the association. Before
 1573  turnover of control of an association by a developer to unit
 1574  owners other than the developer under s. 719.301, the developer
 1575  may not vote to use reserves for purposes other than that for
 1576  which they were intended. For a budget adopted on or after
 1577  Effective December 31, 2024, members of a unit-owner-controlled
 1578  association that must obtain a structural integrity reserve
 1579  study may not vote to use reserve funds, or any interest
 1580  accruing thereon, that are reserved for items listed in
 1581  paragraph (k) for purposes other than the replacement or
 1582  deferred maintenance costs of the components listed in paragraph
 1583  (k) their intended purpose.
 1584         (k) Structural integrity reserve study.—
 1585         1. A residential cooperative An association must have a
 1586  structural integrity reserve study completed at least every 10
 1587  years for each building on the cooperative property that is
 1588  three stories or higher in height as determined by the Florida
 1589  Building Code that includes, at a minimum, a study of the
 1590  following items as related to the structural integrity and
 1591  safety of the building:
 1592         a. Roof.
 1593         b. Structure, including load-bearing walls and or other
 1594  primary structural members and primary structural systems as
 1595  those terms are defined in s. 627.706.
 1596         c. Floor.
 1597         d. Foundation.
 1598         e. Fireproofing and fire protection systems.
 1599         d.f. Plumbing.
 1600         e.g. Electrical systems.
 1601         f.h. Waterproofing and exterior painting.
 1602         g.i. Windows and exterior doors.
 1603         h.j. Any other item that has a deferred maintenance expense
 1604  or replacement cost that exceeds $10,000 and the failure to
 1605  replace or maintain such item negatively affects the items
 1606  listed in sub-subparagraphs a.-g. sub-subparagraphs a.-i., as
 1607  determined by the licensed engineer or architect performing the
 1608  visual inspection portion of the structural integrity reserve
 1609  study.
 1610         2. A structural integrity reserve study is based on a
 1611  visual inspection of the cooperative property. A structural
 1612  integrity reserve study may be performed by any person qualified
 1613  to perform such study. However, the visual inspection portion of
 1614  the structural integrity reserve study must be performed or
 1615  verified by an engineer licensed under chapter 471, an architect
 1616  licensed under chapter 481, or a person certified as a reserve
 1617  specialist or professional reserve analyst by the Community
 1618  Associations Institute or the Association of Professional
 1619  Reserve Analysts.
 1620         3. At a minimum, a structural integrity reserve study must
 1621  identify each item of the cooperative property being visually
 1622  inspected, state the estimated remaining useful life and the
 1623  estimated replacement cost or deferred maintenance expense of
 1624  each item of the cooperative property being visually inspected,
 1625  and provide a reserve funding schedule with a recommended annual
 1626  reserve amount that achieves the estimated replacement cost or
 1627  deferred maintenance expense of each item of cooperative
 1628  property being visually inspected by the end of the estimated
 1629  remaining useful life of the item. The structural integrity
 1630  reserve study may recommend that reserves do not need to be
 1631  maintained for any item for which an estimate of useful life and
 1632  an estimate of replacement cost cannot be determined, or the
 1633  study may recommend a deferred maintenance expense amount for
 1634  such item. The structural integrity reserve study may recommend
 1635  that reserves for replacement costs do not need to be maintained
 1636  for any item with an estimated remaining useful life of greater
 1637  than 25 years, but the study may recommend a deferred
 1638  maintenance expense amount for such item.
 1639         4. This paragraph does not apply to buildings less than
 1640  three stories in height; single-family, two-family, or three
 1641  family dwellings with three or fewer habitable stories above
 1642  ground; any portion or component of a building that has not been
 1643  submitted to the cooperative form of ownership; or any portion
 1644  or component of a building that is maintained by a party other
 1645  than the association.
 1646         5. Before a developer turns over control of an association
 1647  to unit owners other than the developer, the developer must have
 1648  a turnover inspection report in compliance with s. 719.301(4)(p)
 1649  and (q) structural integrity reserve study completed for each
 1650  building on the cooperative property that is three stories or
 1651  higher in height.
 1652         6.3. Associations existing on or before July 1, 2022, which
 1653  are controlled by unit owners other than the developer, must
 1654  have a structural integrity reserve study completed by December
 1655  31, 2024, for each building on the cooperative property that is
 1656  three stories or higher in height. An association that is
 1657  required to complete a milestone inspection on or before
 1658  December 31, 2026, in accordance with s. 553.899 may complete
 1659  the structural integrity reserve study simultaneously with the
 1660  milestone inspection. In no event may the structural integrity
 1661  reserve study be completed after December 31, 2026.
 1662         7. If the milestone inspection required by s. 553.899, or
 1663  an inspection completed for a similar local requirement, was
 1664  performed within the past 5 years and meets the requirements of
 1665  this paragraph, such inspection may be used in place of the
 1666  visual inspection portion of the structural integrity reserve
 1667  study.
 1668         8.4. If the officers or directors of an association
 1669  willfully and knowingly fail fails to complete a structural
 1670  integrity reserve study pursuant to this paragraph, such failure
 1671  is a breach of an officer’s and director’s fiduciary
 1672  relationship to the unit owners under s. 719.104(9) s.
 1673  719.104(8).
 1674         (l) Mandatory milestone inspections.—If an association is
 1675  required to have a milestone inspection performed pursuant to s.
 1676  553.899, the association must arrange for the milestone
 1677  inspection to be performed and is responsible for ensuring
 1678  compliance with the requirements of s. 553.899. The association
 1679  is responsible for all costs associated with the milestone
 1680  inspection attributable to the portions of the building which
 1681  the association is responsible for maintaining under the
 1682  governing documents of the association. If the officers or
 1683  directors of an association willfully and knowingly fail to have
 1684  a milestone inspection performed pursuant to s. 553.899, such
 1685  failure is a breach of the officers’ and directors’ fiduciary
 1686  relationship to the unit owners under s. 719.104(9)(a) s.
 1687  719.104(8)(a). Within 14 days after receipt of a written notice
 1688  from the local enforcement agency that a milestone inspection is
 1689  required, the association must notify the unit owners of the
 1690  required milestone inspection and provide the date by which the
 1691  milestone inspection must be completed. Such notice may be given
 1692  by electronic submission to unit owners who consent to receive
 1693  notice by electronic submission or by posting on the
 1694  association’s website. Within 45 days after receiving Upon
 1695  completion of a phase one or phase two milestone inspection and
 1696  receipt of the inspector-prepared summary of the inspection
 1697  report from the architect or engineer who performed the
 1698  inspection, the association must distribute a copy of the
 1699  inspector-prepared summary of the inspection report to each unit
 1700  owner, regardless of the findings or recommendations in the
 1701  report, by United States mail or personal delivery at the
 1702  mailing address, property address, or any other address of the
 1703  owner provided to fulfill the association’s notice requirements
 1704  under this chapter and by electronic transmission to the e-mail
 1705  address or facsimile number provided to fulfill the
 1706  association’s notice requirements to unit owners who previously
 1707  consented to receive notice by electronic transmission; must
 1708  post a copy of the inspector-prepared summary in a conspicuous
 1709  place on the cooperative property; and must publish the full
 1710  report and inspector-prepared summary on the association’s
 1711  website, if the association is required to have a website.
 1712         Section 15. Present paragraph (q) of subsection (4) of
 1713  section 719.301, Florida Statutes, is redesignated as paragraph
 1714  (r), a new paragraph (q) is added to that subsection, and
 1715  paragraph (p) of that subsection is amended, to read:
 1716         719.301 Transfer of association control.—
 1717         (4) When unit owners other than the developer elect a
 1718  majority of the members of the board of administration of an
 1719  association, the developer shall relinquish control of the
 1720  association, and the unit owners shall accept control.
 1721  Simultaneously, or for the purpose of paragraph (c) not more
 1722  than 90 days thereafter, the developer shall deliver to the
 1723  association, at the developer’s expense, all property of the
 1724  unit owners and of the association held or controlled by the
 1725  developer, including, but not limited to, the following items,
 1726  if applicable, as to each cooperative operated by the
 1727  association:
 1728         (p) Notwithstanding when the certificate of occupancy was
 1729  issued or the height of the building, a turnover inspection
 1730  report milestone inspection report in compliance with s. 553.899
 1731  included in the official records, under seal of an architect or
 1732  engineer authorized to practice in this state or a person
 1733  certified as a reserve specialist or professional reserve
 1734  analyst by the Community Associations Institute or the
 1735  Association of Professional Reserve Analysts, attesting to
 1736  required maintenance, condition, useful life, and replacement
 1737  costs of the following applicable cooperative property
 1738  comprising a turnover inspection report:
 1739         1. Roof.
 1740         2. Structure, including load-bearing walls and primary
 1741  structural members and primary structural systems as those terms
 1742  are defined in s. 627.706.
 1743         3. Fireproofing and fire protection systems.
 1744         4. Plumbing Elevators.
 1745         5. Electrical systems Heating and cooling systems.
 1746         6. Waterproofing and exterior painting Plumbing.
 1747         7. Windows and exterior doors Electrical systems.
 1748         8. Swimming pool or spa and equipment.
 1749         9. Seawalls.
 1750         10. Pavement and parking areas.
 1751         11. Drainage systems.
 1752         12. Painting.
 1753         13. Irrigation systems.
 1754         14. Waterproofing.
 1755         (q) Notwithstanding when the certificate of occupancy was
 1756  issued or the height of the building, a turnover inspection
 1757  report included in the official records, under seal of an
 1758  architect or engineer authorized to practice in this state or a
 1759  person certified as a reserve specialist or professional reserve
 1760  analyst by the Community Associations Institute or the
 1761  Association of Professional Reserve Analysts, and attesting to
 1762  required maintenance, condition, useful life, and replacement
 1763  costs of the following applicable cooperative property
 1764  comprising a turnover inspection report:
 1765         1. Elevators.
 1766         2. Heating and cooling systems.
 1767         3. Swimming pool or spa and equipment.
 1768         4. Seawalls.
 1769         5. Pavement and parking areas.
 1770         6. Drainage systems.
 1771         7. Irrigation systems.
 1772         Section 16. Paragraph (b) of subsection (1) and paragraph
 1773  (a) of subsection (2) of section 719.503, Florida Statutes, are
 1774  amended, and paragraph (d) is added to subsection (1) and
 1775  paragraph (d) is added to subsection (2) of that section, to
 1776  read:
 1777         719.503 Disclosure prior to sale.—
 1778         (1) DEVELOPER DISCLOSURE.—
 1779         (b) Copies of documents to be furnished to prospective
 1780  buyer or lessee.—Until such time as the developer has furnished
 1781  the documents listed below to a person who has entered into a
 1782  contract to purchase a unit or lease it for more than 5 years,
 1783  the contract may be voided by that person, entitling the person
 1784  to a refund of any deposit together with interest thereon as
 1785  provided in s. 719.202. The contract may be terminated by
 1786  written notice from the proposed buyer or lessee delivered to
 1787  the developer within 15 days after the buyer or lessee receives
 1788  all of the documents required by this section. The developer may
 1789  not close for 15 days after the execution of the agreement and
 1790  delivery of the documents to the buyer as evidenced by a receipt
 1791  for documents signed by the buyer unless the buyer is informed
 1792  in the 15-day voidability period and agrees to close before the
 1793  expiration of the 15 days. The developer shall retain in his or
 1794  her records a separate signed agreement as proof of the buyer’s
 1795  agreement to close before the expiration of the voidability
 1796  period. The developer must retain such proof for a period of 5
 1797  years after the date of the closing transaction. The documents
 1798  to be delivered to the prospective buyer are the prospectus or
 1799  disclosure statement with all exhibits, if the development is
 1800  subject to s. 719.504, or, if not, then copies of the following
 1801  which are applicable:
 1802         1. The question and answer sheet described in s. 719.504,
 1803  and cooperative documents, or the proposed cooperative documents
 1804  if the documents have not been recorded, which shall include the
 1805  certificate of a surveyor approximately representing the
 1806  locations required by s. 719.104.
 1807         2. The documents creating the association.
 1808         3. The bylaws.
 1809         4. The ground lease or other underlying lease of the
 1810  cooperative.
 1811         5. The management contract, maintenance contract, and other
 1812  contracts for management of the association and operation of the
 1813  cooperative and facilities used by the unit owners having a
 1814  service term in excess of 1 year, and any management contracts
 1815  that are renewable.
 1816         6. The estimated operating budget for the cooperative and a
 1817  schedule of expenses for each type of unit, including fees
 1818  assessed to a shareholder who has exclusive use of limited
 1819  common areas, where such costs are shared only by those entitled
 1820  to use such limited common areas.
 1821         7. The lease of recreational and other facilities that will
 1822  be used only by unit owners of the subject cooperative.
 1823         8. The lease of recreational and other common areas that
 1824  will be used by unit owners in common with unit owners of other
 1825  cooperatives.
 1826         9. The form of unit lease if the offer is of a leasehold.
 1827         10. Any declaration of servitude of properties serving the
 1828  cooperative but not owned by unit owners or leased to them or
 1829  the association.
 1830         11. If the development is to be built in phases or if the
 1831  association is to manage more than one cooperative, a
 1832  description of the plan of phase development or the arrangements
 1833  for the association to manage two or more cooperatives.
 1834         12. If the cooperative is a conversion of existing
 1835  improvements, the statements and disclosure required by s.
 1836  719.616.
 1837         13. The form of agreement for sale or lease of units.
 1838         14. A copy of the floor plan of the unit and the plot plan
 1839  showing the location of the residential buildings and the
 1840  recreation and other common areas.
 1841         15. A copy of all covenants and restrictions that will
 1842  affect the use of the property and are not contained in the
 1843  foregoing.
 1844         16. If the developer is required by state or local
 1845  authorities to obtain acceptance or approval of any dock or
 1846  marina facilities intended to serve the cooperative, a copy of
 1847  any such acceptance or approval acquired by the time of filing
 1848  with the division pursuant to s. 719.502(1) or a statement that
 1849  such acceptance or approval has not been acquired or received.
 1850         17. Evidence demonstrating that the developer has an
 1851  ownership, leasehold, or contractual interest in the land upon
 1852  which the cooperative is to be developed.
 1853         18. A copy of the inspector-prepared summary of the
 1854  milestone inspection report as described in s. 553.899 ss.
 1855  553.899 and 719.301(4)(p), or a statement in conspicuous type
 1856  indicating that the required milestone inspection described in
 1857  s. 553.899 has not been completed or that a milestone inspection
 1858  is not required, as if applicable.
 1859         19. A copy of the association’s most recent structural
 1860  integrity reserve study or a statement in conspicuous type
 1861  indicating that the association has not completed a required
 1862  structural integrity reserve study has not been completed or
 1863  that a structural integrity reserve study is not required, as
 1864  applicable.
 1865         20. A copy of the turnover inspection report described in
 1866  s. 719.301(4)(p) and (q) or a statement in conspicuous type
 1867  indicating that a turnover inspection report has not been
 1868  completed, as applicable.
 1869         (d) Milestone inspection, turnover inspection report, or
 1870  structural integrity reserve study.—If the association is
 1871  required to have completed a milestone inspection as described
 1872  in s. 553.899, a turnover inspection report for a turnover
 1873  inspection performed on or after July 1, 2023, or a structural
 1874  integrity reserve study, and the association has not completed
 1875  the milestone inspection, the turnover inspection report, or the
 1876  structural integrity reserve study, each contract entered into
 1877  after December 31, 2024, for the sale of a residential unit
 1878  shall contain in conspicuous type a statement indicating that
 1879  the association is required to have a milestone inspection, a
 1880  turnover inspection report, or a structural integrity reserve
 1881  study and has not completed such inspection, report, or study,
 1882  as appropriate. If the association is not required to have a
 1883  milestone inspection as described in s. 553.899 or a structural
 1884  integrity reserve study, each contract entered into after
 1885  December 31, 2024, for the sale of a residential unit shall
 1886  contain in conspicuous type a statement indicating that the
 1887  association is not required to have a milestone inspection or a
 1888  structural integrity reserve study, as appropriate. If the
 1889  association has completed a milestone inspection as described in
 1890  s. 553.899, a turnover inspection report for a turnover
 1891  inspection performed on or after July 1, 2023, or a structural
 1892  integrity reserve study, each contract entered into after
 1893  December 31, 2024, for the sale of a residential unit shall
 1894  contain in conspicuous type:
 1895         1. A clause which states: THE BUYER HEREBY ACKNOWLEDGES
 1896  THAT BUYER HAS BEEN PROVIDED A CURRENT COPY OF THE INSPECTOR
 1897  PREPARED SUMMARY OF THE MILESTONE INSPECTION REPORT AS DESCRIBED
 1898  IN SECTION 553.899, FLORIDA STATUTES, IF APPLICABLE; A COPY OF
 1899  THE TURNOVER INSPECTION REPORT DESCRIBED IN SECTION
 1900  719.301(4)(p) AND (q), FLORIDA STATUTES, IF APPLICABLE; AND A
 1901  COPY OF THE ASSOCIATION’S MOST RECENT STRUCTURAL INTEGRITY
 1902  RESERVE STUDY DESCRIBED IN SECTIONS 719.103(24) AND
 1903  719.106(1)(k), FLORIDA STATUTES, IF APPLICABLE, MORE THAN 15
 1904  DAYS, EXCLUDING SATURDAYS, SUNDAYS, AND LEGAL HOLIDAYS, PRIOR TO
 1905  EXECUTION OF THIS CONTRACT; and
 1906         2. A clause which states: THIS AGREEMENT IS VOIDABLE BY
 1907  BUYER BY DELIVERING WRITTEN NOTICE OF THE BUYER’S INTENTION TO
 1908  CANCEL WITHIN 15 DAYS, EXCLUDING SATURDAYS, SUNDAYS, AND LEGAL
 1909  HOLIDAYS, AFTER THE DATE OF EXECUTION OF THIS AGREEMENT BY THE
 1910  BUYER AND RECEIPT BY BUYER OF A CURRENT COPY OF THE INSPECTOR
 1911  PREPARED SUMMARY OF THE MILESTONE INSPECTION REPORT AS DESCRIBED
 1912  IN SECTION 553.899, FLORIDA STATUTES, IF APPLICABLE; A COPY OF
 1913  THE TURNOVER INSPECTION REPORT DESCRIBED IN SECTION
 1914  719.301(4)(p) AND (q), FLORIDA STATUTES, IF APPLICABLE; AND A
 1915  COPY OF THE ASSOCIATION’S MOST RECENT STRUCTURAL INTEGRITY
 1916  RESERVE STUDY DESCRIBED IN SECTIONS 719.103(24) AND
 1917  719.106(1)(k), FLORIDA STATUTES, IF APPLICABLE. ANY PURPORTED
 1918  WAIVER OF THESE VOIDABILITY RIGHTS SHALL BE OF NO EFFECT. BUYER
 1919  MAY EXTEND THE TIME FOR CLOSING FOR A PERIOD OF NOT MORE THAN 15
 1920  DAYS, EXCLUDING SATURDAYS, SUNDAYS, AND LEGAL HOLIDAYS, AFTER
 1921  THE BUYER RECEIVES A CURRENT COPY OF THE INSPECTOR-PREPARED
 1922  SUMMARY OF THE MILESTONE INSPECTION REPORT AS DESCRIBED IN
 1923  SECTION 553.899, FLORIDA STATUTES; A COPY OF THE TURNOVER
 1924  INSPECTION REPORT DESCRIBED IN SECTION 719.301(4)(p) AND (q),
 1925  FLORIDA STATUTES; OR A COPY OF THE ASSOCIATION’S MOST RECENT
 1926  STRUCTURAL INTEGRITY RESERVE STUDY DESCRIBED IN SECTIONS
 1927  719.103(24) AND 719.106(1)(k), FLORIDA STATUTES, IF REQUESTED IN
 1928  WRITING. BUYER’S RIGHT TO VOID THIS AGREEMENT SHALL TERMINATE AT
 1929  CLOSING.
 1930  
 1931  A contract that does not conform to the requirements of this
 1932  paragraph is voidable at the option of the purchaser prior to
 1933  closing.
 1934         (2) NONDEVELOPER DISCLOSURE.—
 1935         (a) Each unit owner who is not a developer as defined by
 1936  this chapter must comply with this subsection before the sale of
 1937  his or her interest in the association. Each prospective
 1938  purchaser who has entered into a contract for the purchase of an
 1939  interest in a cooperative is entitled, at the seller’s expense,
 1940  to a current copy of all of the following:
 1941         1. The articles of incorporation of the association.
 1942         2. The bylaws and rules of the association.
 1943         3. A copy of the question and answer sheet as provided in
 1944  s. 719.504.
 1945         4. A copy of the inspector-prepared summary of the
 1946  milestone inspection report as described in s. 553.899 ss.
 1947  553.899 and 719.301(4)(p), if applicable.
 1948         5. A copy of the association’s most recent structural
 1949  integrity reserve study or a statement that the association has
 1950  not completed a structural integrity reserve study.
 1951         6. A copy of the inspection report described in s.
 1952  719.301(4)(p) and (q) for a turnover inspection performed on or
 1953  after July 1, 2023.
 1954         (d) If the association is required to have completed a
 1955  milestone inspection as described in s. 553.899, a turnover
 1956  inspection report for a turnover inspection performed on or
 1957  after July 1, 2023, or a structural integrity reserve study, and
 1958  the association has not completed the milestone inspection, the
 1959  turnover inspection report, or the structural integrity reserve
 1960  study, each contract entered into after December 31, 2024, for
 1961  the sale of a residential unit shall contain in conspicuous type
 1962  a statement indicating that the association is required to have
 1963  a milestone inspection, a turnover inspection report, or a
 1964  structural integrity reserve study and has not completed such
 1965  inspection, report, or study, as appropriate. If the association
 1966  is not required to have a milestone inspection as described in
 1967  s. 553.899 or a structural integrity reserve study, each
 1968  contract entered into after December 31, 2024, for the sale of a
 1969  residential unit shall contain in conspicuous type a statement
 1970  indicating that the association is not required to have a
 1971  milestone inspection or a structural integrity reserve study, as
 1972  appropriate. If the association has completed a milestone
 1973  inspection as described in s. 553.899, a turnover inspection
 1974  report for a turnover inspection performed on or after July 1,
 1975  2023, or a structural integrity reserve study, each contract
 1976  entered into after December 31, 2024, for the resale of a
 1977  residential unit shall contain in conspicuous type:
 1978         1. A clause which states: THE BUYER HEREBY ACKNOWLEDGES
 1979  THAT BUYER HAS BEEN PROVIDED A CURRENT COPY OF THE INSPECTOR
 1980  PREPARED SUMMARY OF THE MILESTONE INSPECTION REPORT AS DESCRIBED
 1981  IN SECTION 553.899, FLORIDA STATUTES, IF APPLICABLE; A COPY OF
 1982  THE TURNOVER INSPECTION REPORT DESCRIBED IN SECTION
 1983  719.301(4)(p) AND (q), FLORIDA STATUTES, IF APPLICABLE; AND A
 1984  COPY OF THE ASSOCIATION’S MOST RECENT STRUCTURAL INTEGRITY
 1985  RESERVE STUDY DESCRIBED IN SECTIONS 719.103(24) AND
 1986  719.106(1)(k), FLORIDA STATUTES, IF APPLICABLE, MORE THAN 3
 1987  DAYS, EXCLUDING SATURDAYS, SUNDAYS, AND LEGAL HOLIDAYS, PRIOR TO
 1988  EXECUTION OF THIS CONTRACT; and
 1989         2. A clause which states: THIS AGREEMENT IS VOIDABLE BY
 1990  BUYER BY DELIVERING WRITTEN NOTICE OF THE BUYER’S INTENTION TO
 1991  CANCEL WITHIN 3 DAYS, EXCLUDING SATURDAYS, SUNDAYS, AND LEGAL
 1992  HOLIDAYS, AFTER THE DATE OF EXECUTION OF THIS AGREEMENT BY THE
 1993  BUYER AND RECEIPT BY BUYER OF A CURRENT COPY OF THE INSPECTOR
 1994  PREPARED SUMMARY OF THE MILESTONE INSPECTION REPORT AS DESCRIBED
 1995  IN SECTION 553.899, FLORIDA STATUTES, IF APPLICABLE; A COPY OF
 1996  THE TURNOVER INSPECTION REPORT DESCRIBED IN SECTION
 1997  719.301(4)(p) AND (q), FLORIDA STATUTES, IF APPLICABLE; AND A
 1998  COPY OF THE ASSOCIATION’S MOST RECENT STRUCTURAL INTEGRITY
 1999  RESERVE STUDY DESCRIBED IN SECTIONS 719.103(24) AND
 2000  719.106(1)(k), FLORIDA STATUTES, IF APPLICABLE. ANY PURPORTED
 2001  WAIVER OF THESE VOIDABILITY RIGHTS SHALL BE OF NO EFFECT. BUYER
 2002  MAY EXTEND THE TIME FOR CLOSING FOR A PERIOD OF NOT MORE THAN 3
 2003  DAYS, EXCLUDING SATURDAYS, SUNDAYS, AND LEGAL HOLIDAYS, AFTER
 2004  THE BUYER RECEIVES A CURRENT COPY OF THE INSPECTOR-PREPARED
 2005  SUMMARY OF THE MILESTONE INSPECTION REPORT AS DESCRIBED IN
 2006  SECTION 553.899, FLORIDA STATUTES; A COPY OF THE TURNOVER
 2007  INSPECTION REPORT DESCRIBED IN SECTION 719.301(4)(p) AND (q),
 2008  FLORIDA STATUTES; OR A COPY OF THE ASSOCIATION’S MOST RECENT
 2009  STRUCTURAL INTEGRITY RESERVE STUDY DESCRIBED IN SECTIONS
 2010  719.103(24) AND 719.106(1)(k), FLORIDA STATUTES, IF REQUESTED IN
 2011  WRITING. BUYER’S RIGHT TO VOID THIS AGREEMENT SHALL TERMINATE AT
 2012  CLOSING.
 2013  
 2014  A contract that does not conform to the requirements of this
 2015  paragraph is voidable at the option of the purchaser prior to
 2016  closing.
 2017         Section 17. Paragraph (a) of subsection (7) and paragraph
 2018  (c) of subsection (20) of section 719.504, Florida Statutes, are
 2019  amended to read:
 2020         719.504 Prospectus or offering circular.—Every developer of
 2021  a residential cooperative which contains more than 20
 2022  residential units, or which is part of a group of residential
 2023  cooperatives which will be served by property to be used in
 2024  common by unit owners of more than 20 residential units, shall
 2025  prepare a prospectus or offering circular and file it with the
 2026  Division of Florida Condominiums, Timeshares, and Mobile Homes
 2027  prior to entering into an enforceable contract of purchase and
 2028  sale of any unit or lease of a unit for more than 5 years and
 2029  shall furnish a copy of the prospectus or offering circular to
 2030  each buyer. In addition to the prospectus or offering circular,
 2031  each buyer shall be furnished a separate page entitled
 2032  “Frequently Asked Questions and Answers,” which must be in
 2033  accordance with a format approved by the division. This page
 2034  must, in readable language: inform prospective purchasers
 2035  regarding their voting rights and unit use restrictions,
 2036  including restrictions on the leasing of a unit; indicate
 2037  whether and in what amount the unit owners or the association is
 2038  obligated to pay rent or land use fees for recreational or other
 2039  commonly used facilities; contain a statement identifying that
 2040  amount of assessment which, pursuant to the budget, would be
 2041  levied upon each unit type, exclusive of any special
 2042  assessments, and which identifies the basis upon which
 2043  assessments are levied, whether monthly, quarterly, or
 2044  otherwise; state and identify any court cases in which the
 2045  association is currently a party of record in which the
 2046  association may face liability in excess of $100,000; and state
 2047  whether membership in a recreational facilities association is
 2048  mandatory and, if so, identify the fees currently charged per
 2049  unit type. The division shall by rule require such other
 2050  disclosure as in its judgment will assist prospective
 2051  purchasers. The prospectus or offering circular may include more
 2052  than one cooperative, although not all such units are being
 2053  offered for sale as of the date of the prospectus or offering
 2054  circular. The prospectus or offering circular must contain the
 2055  following information:
 2056         (7) A description of the recreational and other facilities
 2057  that will be used in common with other cooperatives, community
 2058  associations, or planned developments which require the payment
 2059  of the maintenance and expenses of such facilities, directly or
 2060  indirectly, by the unit owners. The description shall include,
 2061  but not be limited to, the following:
 2062         (a) Each building and facility committed to be built and a
 2063  summary description of the structural integrity of each building
 2064  for which reserves are required pursuant to s. 719.106(1)(k).
 2065  
 2066  Descriptions shall include location, areas, capacities, numbers,
 2067  volumes, or sizes and may be stated as approximations or
 2068  minimums.
 2069         (20) An estimated operating budget for the cooperative and
 2070  the association, and a schedule of the unit owner’s expenses
 2071  shall be attached as an exhibit and shall contain the following
 2072  information:
 2073         (c) The estimated items of expenses of the cooperative and
 2074  the association, except as excluded under paragraph (b),
 2075  including, but not limited to, the following items, which shall
 2076  be stated as an association expense collectible by assessments
 2077  or as unit owners’ expenses payable to persons other than the
 2078  association:
 2079         1. Expenses for the association and cooperative:
 2080         a. Administration of the association.
 2081         b. Management fees.
 2082         c. Maintenance.
 2083         d. Rent for recreational and other commonly used areas.
 2084         e. Taxes upon association property.
 2085         f. Taxes upon leased areas.
 2086         g. Insurance.
 2087         h. Security provisions.
 2088         i. Other expenses.
 2089         j. Operating capital.
 2090         k. Reserves for all applicable items referenced in s.
 2091  719.106(1)(k).
 2092         l. Fee payable to the division.
 2093         2. Expenses for a unit owner:
 2094         a. Rent for the unit, if subject to a lease.
 2095         b. Rent payable by the unit owner directly to the lessor or
 2096  agent under any recreational lease or lease for the use of
 2097  commonly used areas, which use and payment are a mandatory
 2098  condition of ownership and are not included in the common
 2099  expense or assessments for common maintenance paid by the unit
 2100  owners to the association.
 2101         Section 18. Subsection (2) of section 558.002, Florida
 2102  Statutes, is amended to read:
 2103         558.002 Definitions.—As used in this chapter, the term:
 2104         (2) “Association” has the same meaning as in s. 718.103 s.
 2105  718.103(2), s. 719.103(2), s. 720.301(9), or s. 723.075.
 2106         Section 19. Paragraph (b) of subsection (1) of section
 2107  718.116, Florida Statutes, is amended to read:
 2108         718.116 Assessments; liability; lien and priority;
 2109  interest; collection.—
 2110         (1)
 2111         (b)1. The liability of a first mortgagee or its successor
 2112  or assignees who acquire title to a unit by foreclosure or by
 2113  deed in lieu of foreclosure for the unpaid assessments that
 2114  became due before the mortgagee’s acquisition of title is
 2115  limited to the lesser of:
 2116         a. The unit’s unpaid common expenses and regular periodic
 2117  assessments which accrued or came due during the 12 months
 2118  immediately preceding the acquisition of title and for which
 2119  payment in full has not been received by the association; or
 2120         b. One percent of the original mortgage debt. The
 2121  provisions of this paragraph apply only if the first mortgagee
 2122  joined the association as a defendant in the foreclosure action.
 2123  Joinder of the association is not required if, on the date the
 2124  complaint is filed, the association was dissolved or did not
 2125  maintain an office or agent for service of process at a location
 2126  which was known to or reasonably discoverable by the mortgagee.
 2127         2. An association, or its successor or assignee, that
 2128  acquires title to a unit through the foreclosure of its lien for
 2129  assessments is not liable for any unpaid assessments, late fees,
 2130  interest, or reasonable attorney’s fees and costs that came due
 2131  before the association’s acquisition of title in favor of any
 2132  other association, as defined in s. 718.103 s. 718.103(2) or s.
 2133  720.301(9), which holds a superior lien interest on the unit.
 2134  This subparagraph is intended to clarify existing law.
 2135         Section 20. Paragraph (d) of subsection (2) of section
 2136  720.3085, Florida Statutes, is amended to read:
 2137         720.3085 Payment for assessments; lien claims.—
 2138         (2)
 2139         (d) An association, or its successor or assignee, that
 2140  acquires title to a parcel through the foreclosure of its lien
 2141  for assessments is not liable for any unpaid assessments, late
 2142  fees, interest, or reasonable attorney’s fees and costs that
 2143  came due before the association’s acquisition of title in favor
 2144  of any other association, as defined in s. 718.103 s. 718.103(2)
 2145  or s. 720.301(9), which holds a superior lien interest on the
 2146  parcel. This paragraph is intended to clarify existing law.
 2147         Section 21. Effective July 1, 2027, for the purpose of
 2148  incorporating the amendments made by this act to section
 2149  718.1255, Florida Statutes, in a reference thereto, section
 2150  719.1255, Florida Statutes, is reenacted to read:
 2151         719.1255 Alternative resolution of disputes.—The Division
 2152  of Florida Condominiums, Timeshares, and Mobile Homes of the
 2153  Department of Business and Professional Regulation shall provide
 2154  for alternative dispute resolution in accordance with s.
 2155  718.1255.
 2156         Section 22. Paragraph (f) of subsection (1) of section
 2157  718.501, Florida Statutes, is reenacted to read:
 2158         718.501 Authority, responsibility, and duties of Division
 2159  of Florida Condominiums, Timeshares, and Mobile Homes.—
 2160         (1) The division may enforce and ensure compliance with
 2161  this chapter and rules relating to the development,
 2162  construction, sale, lease, ownership, operation, and management
 2163  of residential condominium units and complaints related to the
 2164  procedural completion of milestone inspections under s. 553.899.
 2165  In performing its duties, the division has complete jurisdiction
 2166  to investigate complaints and enforce compliance with respect to
 2167  associations that are still under developer control or the
 2168  control of a bulk assignee or bulk buyer pursuant to part VII of
 2169  this chapter and complaints against developers, bulk assignees,
 2170  or bulk buyers involving improper turnover or failure to
 2171  turnover, pursuant to s. 718.301. However, after turnover has
 2172  occurred, the division has jurisdiction to investigate
 2173  complaints related only to financial issues, elections, and the
 2174  maintenance of and unit owner access to association records
 2175  under s. 718.111(12), and the procedural completion of
 2176  structural integrity reserve studies under s. 718.112(2)(g).
 2177         (f) The division may adopt rules to administer and enforce
 2178  this chapter.
 2179         Section 23. Paragraph (f) of subsection (1) of section
 2180  719.501, Florida Statutes, is reenacted to read:
 2181         719.501 Powers and duties of Division of Florida
 2182  Condominiums, Timeshares, and Mobile Homes.—
 2183         (1) The Division of Florida Condominiums, Timeshares, and
 2184  Mobile Homes of the Department of Business and Professional
 2185  Regulation, referred to as the “division” in this part, in
 2186  addition to other powers and duties prescribed by chapter 718,
 2187  has the power to enforce and ensure compliance with this chapter
 2188  and adopted rules relating to the development, construction,
 2189  sale, lease, ownership, operation, and management of residential
 2190  cooperative units; complaints related to the procedural
 2191  completion of the structural integrity reserve studies under s.
 2192  719.106(1)(k); and complaints related to the procedural
 2193  completion of milestone inspections under s. 553.899. In
 2194  performing its duties, the division shall have the following
 2195  powers and duties:
 2196         (f) The division has authority to adopt rules pursuant to
 2197  ss. 120.536(1) and 120.54 to implement and enforce the
 2198  provisions of this chapter.
 2199         Section 24. For the 2023-2024 fiscal year, the sums of
 2200  $1,301,928 in recurring funds and $67,193 in nonrecurring funds
 2201  from the Division of Florida Condominiums, Timeshares, and
 2202  Mobile Homes Trust Fund are appropriated to the Department of
 2203  Business and Professional Regulation, and 10 full-time
 2204  equivalent positions with associated salary rate of 487,264 are
 2205  authorized for the purpose of implementing this act.
 2206         Section 25. Except as otherwise expressly provided in this
 2207  act, this act shall take effect upon becoming a law.