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1
2 An act relating to community associations; amending s.
3 468.4334, F.S.; requiring community association
4 managers and community association management firms to
5 return official records of an association within a
6 specified time after termination of a contract;
7 requiring notices of termination of certain
8 contractual agreements to be sent in a specified
9 manner; authorizing community association managers and
10 community association management firms to retain, for
11 a specified timeframe, records necessary to complete
12 an ending financial statement or report; relieving
13 community association managers and community
14 association management firms from certain
15 responsibilities and liability under certain
16 circumstances; providing a rebuttable presumption
17 regarding noncompliance; providing penalties for the
18 failure to timely return official records; providing
19 an exception for certain time periods for timeshare
20 plans; creating s. 468.4335, F.S.; requiring community
21 association managers and community association
22 management firms to disclose certain conflicts of
23 interest to the association's board; providing a
24 rebuttable presumption as to the existence of a
25 conflict; requiring an association to solicit multiple
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26 bids for goods or services under certain
27 circumstances; providing requirements for an
28 association to approve any activity and contracts that
29 are a conflict of interest; providing that a conflict
30 of interest in a contract which has been previously
31 disclosed must to be noticed and voted on upon its
32 renewal, but not during the term of the contract;
33 authorizing certain contracts to be canceled, subject
34 to certain requirements; specifying liability and
35 nonliability of the association upon cancellation of
36 such a contract; authorizing an association to cancel
37 a contract if certain conflicts were not disclosed;
38 specifying liability and nonliability of the
39 association upon cancellation of a contract; defining
40 the term "relative"; reenacting and amending s.
41 468.436, F.S.; revising the list of grounds for which
42 the Department of Business and Professional Regulation
43 may take disciplinary actions against community
44 association managers or community association firms;
45 amending s. 553.899, F.S.; exempting certain four-
46 family dwellings from requiring a milestone inspection
47 and milestone inspection report; amending s. 718.103,
48 F.S.; revising and providing definitions; amending s.
49 718.104, F.S.; providing requirements for the
50 declaration of specified condominiums; requiring
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51 declarations to specify the entity responsible for the
52 installation, maintenance, repair, or replacement of
53 hurricane protection; amending s. 718.111, F.S.;
54 providing criminal penalties for any officer,
55 director, or manager of an association who unlawfully
56 solicits, offers to accept, or accepts a kickback;
57 requiring such officers, directors, or managers to be
58 removed from office and a vacancy declared; requiring
59 the Division of Florida Condominiums, Timeshares, and
60 Mobile Homes to monitor an association's compliance
61 with certain provisions, and issue fines and penalties
62 if necessary, upon receipt of a complaint; revising
63 the list of records that constitute the official
64 records of an association; providing requirements
65 relating to e-mail addresses and facsimile numbers of
66 unit owners; requiring an association to redact
67 certain personal information in certain documents;
68 providing an exception to liability for the release of
69 certain information; revising maintenance requirements
70 for official records; revising requirements regarding
71 requests to inspect or copy association records;
72 requiring an association to provide a checklist in
73 response to certain records requests; providing a
74 rebuttable presumption and criminal penalties;
75 requiring certain persons to be removed from office
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76 and a vacancy declared under certain circumstances;
77 defining the term "repeatedly"; requiring copies of
78 certain building permits be posted on an association's
79 website or application; modifying the method of
80 delivery of certain financial reports to unit owners;
81 revising circumstances under which an association may
82 prepare certain reports; revising criminal penalties
83 for persons who unlawfully use a debit card issued in
84 the name of an association; requiring certain persons
85 to be removed from office and a vacancy declared under
86 certain circumstances; defining the term "lawful
87 obligation of the association"; revising the threshold
88 for associations that must post certain documents on
89 its website or through an application; amending s.
90 718.112, F.S.; requiring the boards of certain
91 associations to meet at least once every quarter;
92 requiring the meeting agenda to include an opportunity
93 for members to ask questions of the board a certain
94 number of times a year; providing that the right to
95 attend meetings includes the right to ask questions
96 relating to certain topics; revising requirements
97 regarding notice of such meetings; requiring a
98 director to complete an educational requirement within
99 a specified time period before or after election or
100 appointment to the board; providing requirements for
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101 the educational curriculum; providing transitional
102 provisions; requiring a director to complete a certain
103 amount of continuing education each year relating to
104 changes in the law; requiring the secretary of the
105 association to maintain certain information for
106 inspection for a specified number of years;
107 authorizing members of an association to pause the
108 contribution to reserves or reduce reserves under
109 certain circumstances and for a limited time;
110 authorizing the board to expend reserve account funds
111 to make the condominium building and structures
112 habitable; requiring an association to distribute or
113 deliver copies of a structural integrity reserve study
114 to unit owners within a specified timeframe;
115 specifying the manner of distribution or delivery;
116 requiring an association to provide a specified
117 statement to the division within a specified
118 timeframe; revising the circumstances under which a
119 director or an officer must be removed from office
120 after being charged by information or indictment of
121 certain crimes; prohibiting such officers and
122 directors with pending criminal charges from accessing
123 the official records of any association; providing an
124 exception; providing criminal penalties for certain
125 fraudulent voting activities relating to association
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126 elections; amending s. 718.113, F.S.; providing
127 applicability; specifying that certain actions are not
128 material alterations or substantial additions;
129 authorizing the boards of residential and mixed-use
130 condominiums to install or require unit owners to
131 install hurricane protection; requiring a vote of the
132 unit owners for the installation of hurricane
133 protection; requiring that such vote be attested to in
134 a certificate and recorded in certain public records;
135 requiring the board to provide, in various manners, to
136 the unit owners a copy of the recorded certificate;
137 providing that the validity or enforceability of a
138 vote is not affected if the board fails to take
139 certain actions; providing that a vote of the unit
140 owners is not required under certain circumstances;
141 prohibiting installation of the same type of hurricane
142 protection previously installed; providing exceptions;
143 prohibiting the boards of residential and mixed-use
144 condominiums from refusing to approve certain
145 hurricane protections; authorizing the board to
146 require owners to adhere to certain guidelines
147 regarding the external appearance of a condominium;
148 revising responsibility for the cost of the removal or
149 reinstallation of hurricane protection, including
150 exterior windows, doors, or apertures; prohibiting the
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151 association from charging certain expenses to unit
152 owners; requiring reimbursement or a credit toward
153 future assessments to the unit owner in certain
154 circumstances; authorizing the association to collect
155 certain charges and specifying that such charges are
156 enforceable as assessments under certain
157 circumstances; amending s. 718.115, F.S.; specifying
158 when the cost of installation of hurricane protection
159 is not a common expense; authorizing certain expenses
160 to be enforceable as assessments; requiring certain
161 unit owners to be excused from certain assessments or
162 to receive a credit for hurricane protection that has
163 been installed; providing credit applicability under
164 certain circumstances; providing for the amount of
165 credit that a unit owner must receive; specifying that
166 certain expenses are common expenses; amending s.
167 718.121, F.S.; conforming a cross-reference; amending
168 s. 718.124, F.S.; providing the statute of limitations
169 and repose for certain actions; amending s. 718.1224,
170 F.S.; revising legislative findings and intent;
171 revising the definition of the term "governmental
172 entity"; prohibiting an association from filing
173 strategic lawsuits, taking certain actions against
174 unit owners, and expending funds to support certain
175 actions; amending s. 718.128, F.S.; providing that a
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176 unit owner may consent to electronic voting
177 electronically; providing that a board must honor a
178 unit owner's request to vote electronically until the
179 owner opts out; amending s. 718.202, F.S.; providing
180 sales and reservation deposit requirements for
181 nonresidential condominiums; amending s. 718.301,
182 F.S.; requiring developers to deliver a structural
183 integrity reserve report to an association upon
184 relinquishing control of the association; amending s.
185 718.3027, F.S.; revising requirements regarding
186 attendance at a board meeting in the event of a
187 conflict of interest; modifying circumstances under
188 which a contract may be voided; revising a cross-
189 reference; amending s. 718.303, F.S.; requiring an
190 association to provide certain notice to a unit owner
191 by a specified time before an election; creating s.
192 718.407, F.S.; authorizing a condominium to be created
193 within a portion of a building or within a multiple
194 parcel building; specifying that the common elemen ts
195 are only those portions of the building submitted to
196 the condominium form of ownership; providing
197 requirements for the declaration of such condominiums
198 and other certain recorded instruments; providing for
199 the apportionment of expenses for such condominiums;
200 authorizing the association to inspect and copy
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201 certain books and records; requiring a specified
202 disclosure summary for contracts of sale for a unit in
203 certain condominiums; providing that the creation of a
204 multiple parcel building is not a subdivision of the
205 land; amending s. 718.501, F.S.; revising
206 circumstances under which the division has
207 jurisdiction to investigate and enforce complaints
208 relating to certain matters; requiring that the
209 division provide official records, without charge, to
210 a unit owner denied access; authorizing the division
211 to issue certain citations; requiring the division to
212 provide a division-approved training provider with the
213 template for the certificate issued to certain
214 directors of a board of administration; requiring that
215 the division refer suspected criminal acts to the
216 appropriate law enforcement authority; authorizing
217 certain division officials to attend association
218 meetings; authorizing the division to request access
219 to an association's website or application to
220 investigate complaints under certain circumstances;
221 requiring the division to include certain information
222 in its annual report to the Governor and Legislature
223 after a specified date; specifying requirements for
224 the annual certification; authorizing the division to
225 adopt rules; providing applicability; amending s.
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226 718.5011, F.S.; providing that the secretary of the
227 Department of Business and Professional Regulation,
228 rather than the Governor, appoints the condominium
229 ombudsman; amending s. 718.503, F.S.; requiring
230 nondeveloper unit owners to include an annual
231 financial statement and annual budget in information
232 provided to a prospective purchaser; revising
233 information that must be included in contracts for the
234 resale of a residential unit; requiring certain
235 disclosures be made if a unit is located in a
236 specified type of condominium; amending s. 718.504,
237 F.S.; requiring certain information provided to
238 prospective purchasers to state whether the
239 condominium is created within a portion of a building
240 or within a multiple parcel building; amending s.
241 719.106, F.S.; requiring an association to distribute
242 or deliver copies of a structural integrity reserve
243 study to unit owners within a specified timeframe;
244 specifying the manner of distribution or delivery;
245 requiring an association to provide a specified
246 statement to the division within a specified
247 timeframe; amending s. 719.129, F.S.; providing that a
248 unit owner may consent electronically to electronic
249 voting; amending s. 719.301, F.S.; requiring
250 developers to deliver a structural integrity reserve
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251 study to a cooperative association upon relinquishing
252 control of association property; requiring the
253 division to conduct a review of statutory requirements
254 regarding posting of official records on a condominium
255 association's website or application; requiring the
256 division to submit its findings, including any
257 recommendations, to the Governor and the Legislature
258 by a specified date; requiring the division to create
259 a database on its website with certain information by
260 a date certain; providing appropriations; providing
261 construction and retroactive application; requiring
262 the Florida Building Commission to perform a study for
263 specified purposes; requiring the commission to submit
264 a report of its recommendations to the Governor and
265 Legislature by a date certain; providing effective
266 dates.
267
268 Be It Enacted by the Legislature of the State of Florida:
269
270 Section 1. Subsection (3) is added to section 468.4334,
271 Florida Statutes, to read:
272 468.4334 Professional practice standards; liability.—
273 (3) A community association manager or a community
274 association management firm shall return all community
275 association official records within its possession to the
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276 community association within 20 business days after termination
277 of a contractual agreement to provide community association
278 management services to the community association or receipt of a
279 written request for return of the official records, whichever
280 occurs first. A notice of termination of a contractual agreement
281 to provide community association management services must be
282 sent by certified mail, return receipt requested, or in the
283 manner required under such contractual agreement. The community
284 association manager or community association management firm may
285 retain, for up to 20 business days, those records necessary to
286 complete an ending financial statement or report. If an
287 association fails to provide access to or retention of the
288 accounting records to prepare an ending financial statement or
289 report, the community association manager or community
290 association management firm is relieved from any further
291 responsibility or liability relating to the preparation of such
292 ending financial statement or report. Failure of a community
293 association manager or a community association management firm
294 to timely return all of the official records within its
295 possession to the community association creates a rebuttable
296 presumption that the community association manager or community
297 association management firm willfully failed to comply with this
298 subsection. A community association manager or a community
299 association management firm that fails to timely return
300 community association records is subject to suspension of its
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301 license under s. 468.436, and a civil penalty of $1,000 per day
302 for up to 10 business days, assessed beginning on the 21st
303 business day after termination of a contractual agreement to
304 provide community association management services to the
305 community association or receipt of a written request from the
306 association for return of the records, whichever occurs first.
307 However, for a timeshare plan created under chapter 721, the
308 time periods provided in s. 721.14(4)(b) apply.
309 Section 2. Section 468.4335, Florida Statutes, is created
310 to read:
311 468.4335 Conflicts of interest.—
312 (1) A community association manager or a community
313 association management firm, including directors, officers, and
314 persons with a financial interest in a community association
315 management firm, or a relative of such persons, must disclose to
316 the board of a community association any activity that may
317 reasonably be construed to be a conflict of interest. A
318 rebuttable presumption of a conflict of interest exists if any
319 of the following occurs without prior notice:
320 (a) A community association manager or a community
321 association management firm, including directors, officers, and
322 persons with a financial interest in a community association
323 management firm, or a relative of such persons, enters into a
324 contract for goods or services with the association.
325 (b) A community association manager or a community
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326 association management firm, including directors, officers, and
327 persons with a financial interest in a community association
328 management firm, or a relative of such persons, holds an
329 interest in or receives compensation or any thing of value from
330 a corporation, limited liability corporation, partnership,
331 limited liability partnership, or other business entity that
332 conducts business with the association or proposes to enter into
333 a contract or other transaction with the association.
334 (2) If the association receives and considers a bid that
335 exceeds $2,500 to provide a good or service, other than
336 community association management services, from a community
337 association manager or a community association management firm,
338 including directors, officers, and persons with a financial
339 interest in a community association management firm, or a
340 relative of such persons, the association must solicit multiple
341 bids from other third-party providers of such goods or services.
342 (3) If a community association manager or a community
343 association management firm, including directors, officers, and
344 persons with a financial interest in a community association
345 management firm, or a relative of such persons, proposes to
346 engage in an activity that is a conflict of interest as
347 described in subsection (1), the proposed activity must be
348 listed on, and all contracts and transactional documents related
349 to the proposed activity must be attached to, the meeting agenda
350 of the next board of administration meeting. The disclosures of
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351 a possible conflict of interest must be entered into the written
352 minutes of the meeting. Approval of the contract, including a
353 management contract between the community association and the
354 community association manager or community association
355 management firm, or other transaction requires an affirmative
356 vote of two-thirds of all directors present. At the next regular
357 or special meeting of the members, the existence of the conflict
358 of interest and the contract or other transaction must be
359 disclosed to the members. If a community association manager or
360 community association management firm has previously disclosed a
361 conflict of interest in an existing management contract entered
362 into between the board of directors and the community
363 association manager or community association management firm,
364 the conflict of interest does not need to be additionally
365 noticed and voted on during the term of such management
366 contract, but, upon renewal, must be noticed and voted on in
367 accordance with this subsection.
368 (4) If the board finds that a community association
369 manager or a community association management firm, including
370 directors, officers, and persons with a financial interest in a
371 community association management firm, or a relative of such
372 persons, has violated this section, the association may cancel
373 its community association management contract with the community
374 association manager or the community association management
375 firm. If the contract is canceled, the association is liable
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376 only for the reasonable value of the management services
377 provided up to the time of cancellation and is not liable for
378 any termination fees, liquidated damages, or other form of
379 penalty for such cancellation.
380 (5) If an association enters into a contract with a
381 community association manager or a community association
382 management firm, including directors, officers, and persons with
383 a financial interest in a community association management firm,
384 or a relative of such persons, which is a party to or has an
385 interest in an activity that is a possible conflict of interest
386 as described in subsection (1) and such activity has not been
387 properly disclosed as a conflict of interest or potential
388 conflict of interest as required by this section, the contract
389 is voidable and terminates upon the association filing a written
390 notice terminating the contract with its board of directors
391 which contains the consent of at least 20 percent of the voting
392 interests of the association.
393 (6) As used in this section, the term "relative" means a
394 relative within the third degree of consanguinity by blood or
395 marriage.
396 Section 3. Paragraph (b) of subsection (2) of section
397 468.436, Florida Statutes, is amended, and subsection (4) of
398 that section is reenacted, to read:
399 468.436 Disciplinary proceedings.—
400 (2) The following acts constitute grounds for which the
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401 disciplinary actions in subsection (4) may be taken:
402 (b)1. Violation of any provision of this part.
403 2. Violation of any lawful order or rule rendered or
404 adopted by the department or the council.
405 3. Being convicted of or pleading nolo contendere to a
406 felony in any court in the United States.
407 4. Obtaining a license or certification or any other
408 order, ruling, or authorization by means of fraud,
409 misrepresentation, or concealment of material facts.
410 5. Committing acts of gross misconduct or gross negligence
411 in connection with the profession.
412 6. Contracting, on behalf of an association, with any
413 entity in which the licensee has a financial interest that is
414 not disclosed.
415 7. Failing to disclose any conflict of interest as
416 required by s. 468.4335.
417 8.7. Violating any provision of chapter 718, chapter 719,
418 or chapter 720 during the course of performing community
419 association management services pursuant to a contract with a
420 community association as defined in s. 468.431(1).
421 (4) When the department finds any community association
422 manager or firm guilty of any of the grounds set forth in
423 subsection (2), it may enter an order imposing one or more of
424 the following penalties:
425 (a) Denial of an application for licensure.
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426 (b) Revocation or suspension of a license.
427 (c) Imposition of an administrative fine not to exceed
428 $5,000 for each count or separate offense.
429 (d) Issuance of a reprimand.
430 (e) Placement of the community association manage r on
431 probation for a period of time and subject to such conditions as
432 the department specifies.
433 (f) Restriction of the authorized scope of practice by the
434 community association manager.
435 Section 4. Subsection (4) of section 553.899, Florida
436 Statutes, is amended to read:
437 553.899 Mandatory structural inspections for condominium
438 and cooperative buildings.—
439 (4) The milestone inspection report must be arranged by a
440 condominium or cooperative association and any owner of any
441 portion of the building which is not subject to the condominium
442 or cooperative form of ownership. The condominium association or
443 cooperative association and any owner of any portion of the
444 building which is not subject to the condominium or cooperative
445 form of ownership are each responsible for ensuring compliance
446 with the requirements of this section. The condominium
447 association or cooperative association is responsible for all
448 costs associated with the milestone inspection attributable to
449 the portions of a building which the association is responsible
450 to maintain under the governing documents of the association.
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451 This section does not apply to a single-family, two-family, or
452 three-family, or four-family dwelling with three or fewer
453 habitable stories above ground.
454 Section 5. Subsections (19) through (32) of section
455 718.103, Florida Statutes, are renumbered as subsections (21)
456 through (34), respectively, subsection (14) is amended, and new
457 subsections (19) and (20) are added to that section, to read:
458 718.103 Definitions.—As used in this chapter, the term:
459 (14) "Condominium property" means the lands, leaseholds,
460 and improvements, any and personal property, and all easements
461 and rights appurtenant thereto, regardless of whether
462 contiguous, which that are subjected to condominium ownership,
463 whether or not contiguous, and all improvements thereon and all
464 easements and rights appurtenant thereto intended for use in
465 connection with the condominium.
466 (19) "Hurricane protection" means hurricane shutters,
467 impact glass, code-compliant windows or doors, and other code-
468 compliant hurricane protection products used to preserve and
469 protect the condominium property or association property.
470 (20) "Kickback" means any thing or service of value, for
471 which consideration has not been provided, for an o fficer's, a
472 director's, or a manager's own benefit or that of his or her
473 immediate family, from any person providing or proposing to
474 provide goods or services to the association.
475 Section 6. Paragraph (b) of subsection (4) of section
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476 718.104, Florida Statutes, is amended, and paragraph (p) is
477 added to that subsection, to read:
478 718.104 Creation of condominiums; contents of
479 declaration.—Every condominium created in this state shall be
480 created pursuant to this chapter.
481 (4) The declaration must contain or provide for the
482 following matters:
483 (b) The name by which the condominium property is to be
484 identified, which shall include the word "condominium" or be
485 followed by the words "a condominium." Condominiums created
486 within a portion of a building or within a multiple parcel
487 building must include the name by which the condominium is to be
488 identified and be followed by "a condominium within a portion of
489 a building or within a multiple parcel building."
490 (p) For both residential condominiums and mixed-use
491 condominiums, a statement that specifies whether the unit owner
492 or the association is responsible for the installation,
493 maintenance, repair, or replacement of hurricane protection that
494 is for the preservation and protection of the condominium
495 property and association property.
496 Section 7. Paragraph (a) of subsection (1), paragraph (h)
497 of subsection (11), and subsections (12), (13), and (15) of
498 section 718.111, Florida Statutes, are amended to read:
499 718.111 The association.—
500 (1) CORPORATE ENTITY.—
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501 (a) The operation of the condominium shall be by the
502 association, which must be a Florida corporation for profit or a
503 Florida corporation not for profit. However, any association
504 which was in existence on January 1, 1977, need not be
505 incorporated. The owners of units shall be shareholders or
506 members of the association. The officers and directors of the
507 association have a fiduciary relationship to the unit owners. It
508 is the intent of the Legislature that nothing in this paragra ph
509 shall be construed as providing for or removing a requirement of
510 a fiduciary relationship between any manager employed by the
511 association and the unit owners. An officer, a director, or a
512 manager may not solicit, offer to accept, or accept a any thing
513 or service of value or kickback for which consideration has not
514 been provided for his or her own benefit or that of his or her
515 immediate family, from any person providing or proposing to
516 provide goods or services to the association. Any such officer,
517 director, or manager who knowingly so solicits, offers to
518 accept, or accepts a any thing or service of value or kickback
519 commits a felony of the third degree, punishable as provided in
520 s. 775.082, s. 775.083, or s. 775.084, is subject to a civil
521 penalty pursuant to s. 718.501(1)(e), and must be removed from
522 office and a vacancy declared s. 718.501(1)(d) and, if
523 applicable, a criminal penalty as provided in paragraph (d).
524 However, this paragraph does not prohibit an officer, a
525 director, or a manager from accepting services or items received
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526 in connection with trade fairs or education programs. An
527 association may operate more than one condominium.
528 (11) INSURANCE.—In order to protect the safety, health,
529 and welfare of the people of the State of Florida and to ensu re
530 consistency in the provision of insurance coverage to
531 condominiums and their unit owners, this subsection applies to
532 every residential condominium in the state, regardless of the
533 date of its declaration of condominium. It is the intent of the
534 Legislature to encourage lower or stable insurance premiums for
535 associations described in this subsection.
536 (h) The association shall maintain insurance or fidelity
537 bonding of all persons who control or disburse funds of the
538 association. The insurance policy or fidelity bond must cover
539 the maximum funds that will be in the custody of the association
540 or its management agent at any one time. Upon receipt of a
541 complaint, the division shall monitor an association for
542 compliance with this paragraph and may issue fines an d penalties
543 established by the division for failure of an association to
544 maintain the required insurance policy or fidelity bond. As used
545 in this paragraph, the term "persons who control or disburse
546 funds of the association" includes, but is not limited to, those
547 individuals authorized to sign checks on behalf of the
548 association, and the president, secretary, and treasurer of the
549 association. The association shall bear the cost of any such
550 bonding.
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551 (12) OFFICIAL RECORDS.—
552 (a) From the inception of the association, the association
553 shall maintain each of the following items, if applicable, which
554 constitutes the official records of the association:
555 1. A copy of the plans, permits, warranties, and other
556 items provided by the developer under s. 718.301(4).
557 2. A photocopy of the recorded declaration of condominium
558 of each condominium operated by the association and each
559 amendment to each declaration.
560 3. A photocopy of the recorded bylaws of the association
561 and each amendment to the bylaws.
562 4. A certified copy of the articles of incorporation of
563 the association, or other documents creating the association,
564 and each amendment thereto.
565 5. A copy of the current rules of the association.
566 6. A book or books that contain the minutes of all
567 meetings of the association, the board of administration, and
568 the unit owners.
569 7. A current roster of all unit owners and their mailing
570 addresses, unit identifications, voting certifications, and, if
571 known, telephone numbers. The association shall also maintain
572 the e-mail addresses and facsimile numbers of unit owners
573 consenting to receive notice by electronic transmission. The e-
574 mail addresses and facsimile numbers are not accessible to unit
575 owners if consent to receive notice by electronic transmission
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576 is not provided In accordance with sub-subparagraph (c)5.e., the
577 e-mail addresses and facsimile numbers are only accessible to
578 unit owners if consent to receive notice by electronic
579 transmission is provided, or if the unit owner has expressly
580 indicated that such personal information can be shared with
581 other unit owners and the unit owner has not provided the
582 association with a request to opt out of such dissemination with
583 other unit owners. An association must ensure that the e -mail
584 addresses and facsimile numbers are only used for the business
585 operation of the association and may not be sold or shared with
586 outside third parties. If such personal information is included
587 in documents that are released to third parties, other than unit
588 owners, the association must redact such personal information
589 before the document is disseminated (c)3.e. However, the
590 association is not liable for an inadvertent disclosure of the
591 e-mail address or facsimile number for receiving electronic
592 transmission of notices unless such disclosure was made with a
593 knowing or intentional disregard of the protected nature of such
594 information.
595 8. All current insurance policies of the association and
596 condominiums operated by the association.
597 9. A current copy of any management agreement, lease, or
598 other contract to which the association is a party or under
599 which the association or the unit owners have an obligation or
600 responsibility.
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601 10. Bills of sale or transfer for all property owned by
602 the association.
603 11. Accounting records for the association and sep arate
604 accounting records for each condominium that the association
605 operates. Any person who knowingly or intentionally defaces or
606 destroys such records, or who knowingly or intentionally fails
607 to create or maintain such records, with the intent of causing
608 harm to the association or one or more of its members, is
609 personally subject to a civil penalty pursuant to s.
610 718.501(1)(e) s. 718.501(1)(d). The accounting records must
611 include, but are not limited to:
612 a. Accurate, itemized, and detailed records of all
613 receipts and expenditures.
614 b. All invoices, transaction receipts, or deposit slips
615 that substantiate any receipt or expenditure of funds by the
616 association.
617 c.b. A current account and a monthly, bimonthly, or
618 quarterly statement of the account for each unit designating the
619 name of the unit owner, the due date and amount of each
620 assessment, the amount paid on the account, and the balance due.
621 d.c. All audits, reviews, accounting statements,
622 structural integrity reserve studies, and financial reports o f
623 the association or condominium. Structural integrity reserve
624 studies must be maintained for at least 15 years after the study
625 is completed.
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626 e.d. All contracts for work to be performed. Bids for work
627 to be performed are also considered official records and must be
628 maintained by the association for at least 1 year after receipt
629 of the bid.
630 12. Ballots, sign-in sheets, voting proxies, and all other
631 papers and electronic records relating to voting by unit owners,
632 which must be maintained for 1 year from the date of the
633 election, vote, or meeting to which the document relates,
634 notwithstanding paragraph (b).
635 13. All rental records if the association is acting as
636 agent for the rental of condominium units.
637 14. A copy of the current question and answer sheet as
638 described in s. 718.504.
639 15. A copy of the inspection reports described in ss.
640 553.899 and 718.301(4)(p) and any other inspection report
641 relating to a structural or life safety inspection of
642 condominium property. Such record must be maintained by the
643 association for 15 years after receipt of the report.
644 16. Bids for materials, equipment, or services.
645 17. All affirmative acknowledgments made pursuant to s.
646 718.121(4)(c).
647 18. A copy of all building permits.
648 19. A copy of all satisfactorily completed board member
649 educational certificates.
650 20.18. All other written records of the association not
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651 specifically included in the foregoing which are related to the
652 operation of the association.
653 (b) The official records specified in subparagraphs (a)1. -
654 6. must be permanently maintained from the inception of the
655 association. Bids for work to be performed or for materials,
656 equipment, or services must be maintained for at least 1 year
657 after receipt of the bid. All other official records must be
658 maintained within the state for at least 7 years, unless
659 otherwise provided by general law. The official records must be
660 maintained in an organized manner that facilitates inspection of
661 the records by a unit owner. In the event that the official
662 records are lost, destroyed, or otherwise unavailable, the
663 obligation to maintain the official records includes a good
664 faith obligation to obtain and recover those records as is
665 reasonably possible. The records of the association shall be
666 made available to a unit owner within 45 miles of the
667 condominium property or within the county in which the
668 condominium property is located within 10 working days after
669 receipt of a written request by the board or its designee.
670 However, such distance requirement does not apply to an
671 association governing a timeshare condominium. This paragraph
672 and paragraph (c) may be complied with by having a copy of the
673 official records of the association available for inspection or
674 copying on the condominium property or association property, or
675 the association may offer the option of making the records
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676 available to a unit owner electronically via the Internet as
677 provided under paragraph (g) or by allowing the records to be
678 viewed in electronic format on a computer screen and printed
679 upon request. The association is not responsible for the use or
680 misuse of the information provided to an association member or
681 his or her authorized representative in compliance with this
682 chapter unless the association has an affirmative duty not to
683 disclose such information under this chapter.
684 (c)1.a.(c)1. The official records of the association are
685 open to inspection by any association member and any person
686 authorized by an association member as a representative of such
687 member at all reasonable times. The right to inspect the records
688 includes the right to make or obtain copies, at the reasonable
689 expense, if any, of the member and of the person authorized by
690 the association member as a representative of such member. A
691 renter of a unit has a right to inspect and copy only the
692 declaration of condominium, the association's bylaws and rules,
693 and the inspection reports described in ss. 553.899 and
694 718.301(4)(p). The association may adopt reasonable rules
695 regarding the frequency, time, location, notice, and manner of
696 record inspections and copying but may not require a member to
697 demonstrate any purpose or state any reason for the inspection.
698 The failure of an association to provide the records within 10
699 working days after receipt of a written request creates a
700 rebuttable presumption that the association willfully failed to
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701 comply with this paragraph. A unit owner who is denied access to
702 official records is entitled to the actual damages or minimum
703 damages for the association's willful failure to comply. Minimum
704 damages are $50 per calendar day for up to 10 days, beginning on
705 the 11th working day after receipt of the written request. The
706 failure to permit inspection entitles any person prevailing in
707 an enforcement action to recover reasonable attorney fees from
708 the person in control of the records who, directly or
709 indirectly, knowingly denied access to the records. If the
710 requested records are posted on an association's website, or are
711 available for download through an application on a mobil e
712 device, the association may fulfill its obligations under this
713 paragraph by directing to the website or the application all
714 persons authorized to request access.
715 b. In response to a written request to inspect records,
716 the association must simultaneously provide to the requestor a
717 checklist of all records made available for inspection and
718 copying. The checklist must also identify any of the
719 association's official records that were not made available to
720 the requestor. An association must maintain a checklist provided
721 under this sub-subparagraph for 7 years. An association
722 delivering a checklist pursuant to this sub-subparagraph creates
723 a rebuttable presumption that the association has complied with
724 this paragraph.
725 2. A director or member of the board or association or a
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726 community association manager who knowingly, willfully, and
727 repeatedly violates subparagraph 1. commits a misdemeanor of the
728 second degree, punishable as provided in s. 775.082 or s.
729 775.083, and must be removed from office and a vacancy d eclared.
730 For purposes of this subparagraph, the term "repeatedly" means
731 two or more violations within a 12-month period.
732 3.2. Any person who knowingly or intentionally defaces or
733 destroys accounting records that are required by this chapter to
734 be maintained during the period for which such records are
735 required to be maintained, or who knowingly or intentionally
736 fails to create or maintain accounting records that are required
737 to be created or maintained, with the intent of causing harm to
738 the association or one or more of its members, commits a
739 misdemeanor of the first degree, punishable as provided in s.
740 775.082 or s. 775.083, is personally subject to a civil penalty
741 pursuant to s. 718.501(1)(d), and must be removed from office
742 and a vacancy declared.
743 4. A person who willfully and knowingly refuses to release
744 or otherwise produce association records with the intent to
745 avoid or escape detection, arrest, trial, or punishment for the
746 commission of a crime, or to assist another person with such
747 avoidance or escape, commits a felony of the third degree,
748 punishable as provided in s. 775.082, s. 775.083, or s. 775.084,
749 and must be removed from office and a vacancy declared.
750 5.3. The association shall maintain an adequate number of
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751 copies of the declaration, articles of incorporation, bylaws,
752 and rules, and all amendments to each of the foregoing, as well
753 as the question and answer sheet as described in s. 718.504 and
754 year-end financial information required under this section, on
755 the condominium property to ensure their availability to unit
756 owners and prospective purchasers, and may charge its actual
757 costs for preparing and furnishing these documents to those
758 requesting the documents. An association shall allow a member or
759 his or her authorized representative to use a portable device,
760 including a smartphone, tablet, portable scanner, or any other
761 technology capable of scanning or taking photographs, to make an
762 electronic copy of the official records in lieu of the
763 association's providing the member or his or her au thorized
764 representative with a copy of such records. The association may
765 not charge a member or his or her authorized representative for
766 the use of a portable device. Notwithstanding this paragraph,
767 the following records are not accessible to unit owners:
768 a. Any record protected by the lawyer-client privilege as
769 described in s. 90.502 and any record protected by the work-
770 product privilege, including a record prepared by an association
771 attorney or prepared at the attorney's express direction, which
772 reflects a mental impression, conclusion, litigation strategy,
773 or legal theory of the attorney or the association, and which
774 was prepared exclusively for civil or criminal litigation or for
775 adversarial administrative proceedings, or which was prepared in
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776 anticipation of such litigation or proceedings until the
777 conclusion of the litigation or proceedings.
778 b. Information obtained by an association in connection
779 with the approval of the lease, sale, or other transfer of a
780 unit.
781 c. Personnel records of association or management company
782 employees, including, but not limited to, disciplinary, payroll,
783 health, and insurance records. For purposes of this sub -
784 subparagraph, the term "personnel records" does not include
785 written employment agreements with an association employee or
786 management company, or budgetary or financial records that
787 indicate the compensation paid to an association employee.
788 d. Medical records of unit owners.
789 e. Social security numbers, driver license numbers, credit
790 card numbers, e-mail addresses, telephone numbers, facsimile
791 numbers, emergency contact information, addresses of a unit
792 owner other than as provided to fulfill the association's notice
793 requirements, and other personal identifying information of any
794 person, excluding the person's name, unit designation, mailing
795 address, property address, and any address, e-mail address, or
796 facsimile number provided to the association to fulfill the
797 association's notice requirements. Notwithstanding the
798 restrictions in this sub-subparagraph, an association may print
799 and distribute to unit owners a directory containing the name,
800 unit address, and all telephone numbers of each unit owner.
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801 However, an owner may exclude his or her telephone numbers from
802 the directory by so requesting in writing to the associa tion. An
803 owner may consent in writing to the disclosure of other contact
804 information described in this sub-subparagraph. The association
805 is not liable for the inadvertent disclosure of information that
806 is protected under this sub-subparagraph if the information is
807 included in an official record of the association and is
808 voluntarily provided by an owner and not requested by the
809 association.
810 f. Electronic security measures that are used by the
811 association to safeguard data, including passwords.
812 g. The software and operating system used by the
813 association which allow the manipulation of data, even if the
814 owner owns a copy of the same software used by the association.
815 The data is part of the official records of the association.
816 h. All affirmative acknowledgments made pursuant to s.
817 718.121(4)(c).
818 (d) The association shall prepare a question and answer
819 sheet as described in s. 718.504, and shall update it annually.
820 (e)1. The association or its authorized agent is not
821 required to provide a prospective purchaser or lienholder with
822 information about the condominium or the association other than
823 information or documents required by this chapter to be made
824 available or disclosed. The association or its authorized agent
825 may charge a reasonable fee to the prospective purchaser,
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826 lienholder, or the current unit owner for providing good faith
827 responses to requests for information by or on behalf of a
828 prospective purchaser or lienholder, other than that required by
829 law, if the fee does not exceed $150 plus the reasonable cost of
830 photocopying and any attorney's fees incurred by the association
831 in connection with the response.
832 2. An association and its authorized agent are not liable
833 for providing such information in good faith pursuant to a
834 written request if the person providing the information includes
835 a written statement in substantially the following form: "The
836 responses herein are made in good faith and to the best of my
837 ability as to their accuracy."
838 (f) An outgoing board or committee member must relinquish
839 all official records and property of the association in his or
840 her possession or under his or her control to the incoming board
841 within 5 days after the election. The division shall impose a
842 civil penalty as set forth in s. 718.501(1)(d)6. against an
843 outgoing board or committee member who willfully and knowingly
844 fails to relinquish such records and property.
845 (g)1. By January 1, 2019, an association managing a
846 condominium with 150 or more units which does not contain
847 timeshare units shall post digital copies of the documents
848 specified in subparagraph 2. on its website or make such
849 documents available through an application that can be
850 downloaded on a mobile device.
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851 a. The association's website or application must be:
852 (I) An independent website, application, or web portal
853 wholly owned and operated by the association; or
854 (II) A website, application, or web portal operated by a
855 third-party provider with whom the association owns, leases,
856 rents, or otherwise obtains the right to operate a web page,
857 subpage, web portal, collection of subpages or web portals, or
858 an application which is dedicated to the association's
859 activities and on which required notices, records, and documents
860 may be posted or made available by the association.
861 b. The association's website or application must be
862 accessible through the Internet and must contain a subpage, web
863 portal, or other protected electronic location that is
864 inaccessible to the general public and accessible only to unit
865 owners and employees of the association.
866 c. Upon a unit owner's written request, the association
867 must provide the unit owner with a username and password and
868 access to the protected sections of the association's website or
869 application which contain any notices, records, or documents
870 that must be electronically provided.
871 2. A current copy of the following documents must be
872 posted in digital format on the association's website or
873 application:
874 a. The recorded declaration of condominium of each
875 condominium operated by the association and each am endment to
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876 each declaration.
877 b. The recorded bylaws of the association and each
878 amendment to the bylaws.
879 c. The articles of incorporation of the association, or
880 other documents creating the association, and each amendment to
881 the articles of incorporation or other documents. The copy
882 posted pursuant to this sub-subparagraph must be a copy of the
883 articles of incorporation filed with the Department of State.
884 d. The rules of the association.
885 e. A list of all executory contracts or documents to which
886 the association is a party or under which the association or the
887 unit owners have an obligation or responsibility and, after
888 bidding for the related materials, equipment, or services has
889 closed, a list of bids received by the association within the
890 past year. Summaries of bids for materials, equipment, or
891 services which exceed $500 must be maintained on the website or
892 application for 1 year. In lieu of summaries, complete copies of
893 the bids may be posted.
894 f. The annual budget required by s. 718.112(2)(f) and any
895 proposed budget to be considered at the annual meeting.
896 g. The financial report required by subsection (13) and
897 any monthly income or expense statement to be considered at a
898 meeting.
899 h. The certification of each director required by s.
900 718.112(2)(d)4.b.
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901 i. All contracts or transactions between the association
902 and any director, officer, corporation, firm, or association
903 that is not an affiliated condominium association or any other
904 entity in which an association director is also a director or
905 officer and financially interested.
906 j. Any contract or document regarding a conflict of
907 interest or possible conflict of interest as provided in ss.
908 468.4335, 468.436(2)(b)6., and 718.3027(3).
909 k. The notice of any unit owner meeting and the agenda for
910 the meeting, as required by s. 718.112(2)(d)3., no later than 14
911 days before the meeting. The notice must be posted in plain view
912 on the front page of the website or application, or on a
913 separate subpage of the website or application labeled "Notices"
914 which is conspicuously visible and linked from the front page.
915 The association must also post on its website or application any
916 document to be considered and voted on by the owners during the
917 meeting or any document listed on the agenda at least 7 days
918 before the meeting at which the document or the information
919 within the document will be considered.
920 l. Notice of any board meeting, the agenda, and any other
921 document required for the meeting as required by s.
922 718.112(2)(c), which must be posted no later than the d ate
923 required for notice under s. 718.112(2)(c).
924 m. The inspection reports described in ss. 553.899 and
925 718.301(4)(p) and any other inspection report relating to a
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926 structural or life safety inspection of condominium property.
927 n. The association's most recent structural integrity
928 reserve study, if applicable.
929 o. Copies of all building permits issued for ongoing or
930 planned construction.
931 3. The association shall ensure that the information and
932 records described in paragraph (c), which are not allowed to be
933 accessible to unit owners, are not posted on the association's
934 website or application. If protected information or information
935 restricted from being accessible to unit owners is included in
936 documents that are required to be posted on the association's
937 website or application, the association shall ensure the
938 information is redacted before posting the documents.
939 Notwithstanding the foregoing, the association or its agent is
940 not liable for disclosing information that is protected or
941 restricted under this paragraph unless such disclosure was made
942 with a knowing or intentional disregard of the protected or
943 restricted nature of such information.
944 4. The failure of the association to post information
945 required under subparagraph 2. is not in and of itself
946 sufficient to invalidate any action or decision of the
947 association's board or its committees.
948 (13) FINANCIAL REPORTING.—Within 90 days after the end of
949 the fiscal year, or annually on a date provided in the bylaws,
950 the association shall prepare and complete, or contract for the
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951 preparation and completion of, a financial report for the
952 preceding fiscal year. Within 21 days after the final financial
953 report is completed by the association or received from the
954 third party, but not later than 120 days after the end of the
955 fiscal year or other date as provided in the bylaws, the
956 association shall deliver mail to each unit owner by United
957 States mail or personal delivery at the mailing address,
958 property address, e-mail address, or facsimile number provided
959 to fulfill the association's notice requirements at the address
960 last furnished to the association by the unit owner, or hand
961 deliver to each unit owner, a copy of the most recent financial
962 report, and or a notice that a copy of the most recent financial
963 report will be mailed or hand delivered to the unit owner,
964 without charge, within 5 business days after receipt of a
965 written request from the unit owner. The division shall adopt
966 rules setting forth uniform accounting principles and standards
967 to be used by all associations and addressing the financial
968 reporting requirements for multicondominium associations. The
969 rules must include, but not be limited to, standards for
970 presenting a summary of association reserves, including a good
971 faith estimate disclosing the annual amount of reserve funds
972 that would be necessary for the association to fully fund
973 reserves for each reserve item based on the straight-line
974 accounting method. This disclosure is not applicable to reserves
975 funded via the pooling method. In adopting such rules, the
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976 division shall consider the number of members and annual
977 revenues of an association. Financial reports shall be prepared
978 as follows:
979 (a) An association that meets the criteria of this
980 paragraph shall prepare a complete set of financial statements
981 in accordance with generally accepted accounting principles. The
982 financial statements must be based upon the association's total
983 annual revenues, as follows:
984 1. An association with total annual revenues of $150,000
985 or more, but less than $300,000, shall prepare compiled
986 financial statements.
987 2. An association with total annual revenues of at least
988 $300,000, but less than $500,000, shall prepare reviewed
989 financial statements.
990 3. An association with total annual revenues of $500,000
991 or more shall prepare audited financial statements.
992 (b)1. An association with total annual revenues of less
993 than $150,000 shall prepare a report of cash receipts and
994 expenditures.
995 2. A report of cash receipts and disbursements must
996 disclose the amount of receipts by accounts and receipt
997 classifications and the amount of expenses by accounts and
998 expense classifications, including, but not limited to, the
999 following, as applicable: costs for security, professional and
1000 management fees and expenses, taxes, costs for recreation
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1001 facilities, expenses for refuse collection and utility services,
1002 expenses for lawn care, costs for building maintenance and
1003 repair, insurance costs, administration and salary expenses, and
1004 reserves accumulated and expended for capital expenditures,
1005 deferred maintenance, and any other category for which the
1006 association maintains reserves.
1007 (c) An association may prepare, without a meeting of or
1008 approval by the unit owners:
1009 1. Compiled, reviewed, or audited financial statements, if
1010 the association is required to prepare a report of cash receipts
1011 and expenditures;
1012 2. Reviewed or audited financial statements, if the
1013 association is required to prepare compiled financial
1014 statements; or
1015 3. Audited financial statements if the association is
1016 required to prepare reviewed financial statements.
1017 (d) If approved by a majority of the voting interests
1018 present at a properly called meeting of the association, an
1019 association may prepare:
1020 1. A report of cash receipts and expenditures in lieu of a
1021 compiled, reviewed, or audited financial statement;
1022 2. A report of cash receipts and expenditures or a
1023 compiled financial statement in lieu of a reviewed or audited
1024 financial statement; or
1025 3. A report of cash receipts and expenditures, a compiled
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1026 financial statement, or a reviewed financial statement in lieu
1027 of an audited financial statement.
1028
1029 Such meeting and approval must occur before the end of the
1030 fiscal year and is effective only for the fiscal year in which
1031 the vote is taken. An association may not prepare a financial
1032 report pursuant to this paragraph for consecutive fiscal years,
1033 except that the approval may also be effective for the following
1034 fiscal year. If the developer has not turned over control of the
1035 association, all unit owners, including the developer, may vote
1036 on issues related to the preparation of the association's
1037 financial reports, from the date of incorporation of the
1038 association through the end of the second fiscal year after the
1039 fiscal year in which the certificate of a surveyor and mapper is
1040 recorded pursuant to s. 718.104(4)(e) or an instrument that
1041 transfers title to a unit in the condominium which is not
1042 accompanied by a recorded assignment of developer rights in
1043 favor of the grantee of such unit is recorded, whichever occurs
1044 first. Thereafter, all unit owners except the developer may vote
1045 on such issues until control is turned over to the association
1046 by the developer. Any audit or review prepared under this
1047 section shall be paid for by the developer if done before
1048 turnover of control of the association.
1049 (e) A unit owner may provide written notice to the
1050 division of the association's failure to mail or hand deliver
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1051 him or her a copy of the most recent financial report within 5
1052 business days after he or she submitted a written request to the
1053 association for a copy of such report. If the division
1054 determines that the association failed to mail or hand deliver a
1055 copy of the most recent financial report to the unit owner, the
1056 division shall provide written notice to the association that
1057 the association must mail or hand deliver a copy of the most
1058 recent financial report to the unit owner and the division
1059 within 5 business days after it receives such notice from the
1060 division. An association that fails to comply with the
1061 division's request may not waive the financial reporting
1062 requirement provided in paragraph (d) for the fiscal year in
1063 which the unit owner's request was made and the following fiscal
1064 year. A financial report received by the division pursuant to
1065 this paragraph shall be maintained, and the division shall
1066 provide a copy of such report to an association member upon his
1067 or her request.
1068 (15) DEBIT CARDS.—
1069 (a) An association and its officers, directors, employees,
1070 and agents may not use a debit card issued in the name of the
1071 association, or billed directly to the association, for the
1072 payment of any association expense.
1073 (b) A person who uses Use of a debit card issued in the
1074 name of the association, or billed directly to the association,
1075 for any expense that is not a lawful obligation of the
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1076 association commits theft under s. 812.014 and must be removed
1077 from office and a vacancy declared. For the purposes of this
1078 paragraph, the term "lawful obligation of the association" means
1079 an obligation that has been properly preapproved by the board
1080 and is reflected in the meeting minutes or the written budget
1081 may be prosecuted as credit card fraud pursuant to s. 817.61 .
1082 Section 8. Effective January 1, 2026, paragraph (g) of
1083 subsection (12) of section 718.111, Florida Statutes, as amended
1084 by this act, is amended to read:
1085 718.111 The association.—
1086 (12) OFFICIAL RECORDS.—
1087 (g)1. By January 1, 2019, An association managing a
1088 condominium with 25 150 or more units which does not contain
1089 timeshare units shall post digital copies of the documents
1090 specified in subparagraph 2. on its website or make such
1091 documents available through an application that can be
1092 downloaded on a mobile device.
1093 a. The association's website or application must be:
1094 (I) An independent website, application, or web portal
1095 wholly owned and operated by the association; or
1096 (II) A website, application, or web portal operated by a
1097 third-party provider with whom the association owns, leases,
1098 rents, or otherwise obtains the right to operate a web page,
1099 subpage, web portal, collection of subpages or web portals, or
1100 an application which is dedicated to the association's
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1101 activities and on which required notices, records, and documents
1102 may be posted or made available by the association.
1103 b. The association's website or application must be
1104 accessible through the Internet and must contain a subpage, web
1105 portal, or other protected electronic location that is
1106 inaccessible to the general public and accessible only to unit
1107 owners and employees of the association.
1108 c. Upon a unit owner's written request, the association
1109 must provide the unit owner with a username and password and
1110 access to the protected sections of the association's website or
1111 application which contain any notices, records, or documents
1112 that must be electronically provided.
1113 2. A current copy of the following documents must be
1114 posted in digital format on the association's website or
1115 application:
1116 a. The recorded declaration of condominium of each
1117 condominium operated by the association and each amendment to
1118 each declaration.
1119 b. The recorded bylaws of the association and each
1120 amendment to the bylaws.
1121 c. The articles of incorporation of the association, or
1122 other documents creating the association, and each amendment to
1123 the articles of incorporation or other documents. The copy
1124 posted pursuant to this sub-subparagraph must be a copy of the
1125 articles of incorporation filed with the Department of State.
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1126 d. The rules of the association.
1127 e. A list of all executory contracts or documents to which
1128 the association is a party or under which the association or the
1129 unit owners have an obligation or responsibility and, after
1130 bidding for the related materials, equipment, or services has
1131 closed, a list of bids received by the association within the
1132 past year. Summaries of bids for materials, equipment, or
1133 services which exceed $500 must be maintained on the website or
1134 application for 1 year. In lieu of summaries, complete copies of
1135 the bids may be posted.
1136 f. The annual budget required by s. 718.112(2)(f) and any
1137 proposed budget to be considered at the annual meeting.
1138 g. The financial report required by subsection (13) and
1139 any monthly income or expense statement to be considered at a
1140 meeting.
1141 h. The certification of each director required by s.
1142 718.112(2)(d)4.b.
1143 i. All contracts or transactions between the association
1144 and any director, officer, corporation, firm, or association
1145 that is not an affiliated condominium association or any other
1146 entity in which an association director is also a director or
1147 officer and financially interested.
1148 j. Any contract or document regarding a conflict of
1149 interest or possible conflict of interest as provided in ss.
1150 468.4335, 468.436(2)(b)6., and 718.3027(3).
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1151 k. The notice of any unit owner meeting and the agenda for
1152 the meeting, as required by s. 718.112(2)(d)3., no later than 14
1153 days before the meeting. The notice must be posted in plain view
1154 on the front page of the website or application, or on a
1155 separate subpage of the website or application labeled "Notices"
1156 which is conspicuously visible and linked from the front page.
1157 The association must also post on its website or application any
1158 document to be considered and voted on by the owners during the
1159 meeting or any document listed on the agenda at least 7 days
1160 before the meeting at which the document or the information
1161 within the document will be considered.
1162 l. Notice of any board meeting, the agenda, and any other
1163 document required for the meeting as required by s.
1164 718.112(2)(c), which must be posted no later than the date
1165 required for notice under s. 718.112(2)(c).
1166 m. The inspection reports described in ss. 553.899 and
1167 718.301(4)(p) and any other inspection report relating to a
1168 structural or life safety inspection of condominium property.
1169 n. The association's most recent structural integrity
1170 reserve study, if applicable.
1171 o. Copies of all building permits issued for ongoing or
1172 planned construction.
1173 3. The association shall ensure that the information and
1174 records described in paragraph (c), which are not allowed to be
1175 accessible to unit owners, are not posted on the association's
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1176 website or application. If protected information or information
1177 restricted from being accessible to unit owners is included in
1178 documents that are required to be posted on the association's
1179 website or application, the association shall ensure the
1180 information is redacted before posting the documents.
1181 Notwithstanding the foregoing, the association or its agent is
1182 not liable for disclosing information that is protected or
1183 restricted under this paragraph unless such disclosure was made
1184 with a knowing or intentional disregard of the protected or
1185 restricted nature of such information.
1186 4. The failure of the association to post informa tion
1187 required under subparagraph 2. is not in and of itself
1188 sufficient to invalidate any action or decision of the
1189 association's board or its committees.
1190 Section 9. Paragraphs (c), (d), (f), (g), and (q) of
1191 subsection (2) of section 718.112, Florida Statutes, are
1192 amended, and paragraph (r) is added to that subsection, to read:
1193 718.112 Bylaws.—
1194 (2) REQUIRED PROVISIONS.—The bylaws shall provide for the
1195 following and, if they do not do so, shall be deemed to include
1196 the following:
1197 (c) Board of administration meetings.—In a residential
1198 condominium association of more than 10 units, the board of
1199 administration shall meet at least once each quarter. At least
1200 four times each year, the meeting agenda must include an
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1201 opportunity for members to ask questions of the board. Meetings
1202 of the board of administration at which a quorum of the members
1203 is present are open to all unit owners. Members of the board of
1204 administration may use e-mail as a means of communication but
1205 may not cast a vote on an association matter via e-mail. A unit
1206 owner may tape record or videotape the meetings. The right to
1207 attend such meetings includes the right to speak at such
1208 meetings with reference to all designated agenda items and the
1209 right to ask questions relating to reports on the status of
1210 construction or repair projects, the status of revenues and
1211 expenditures during the current fiscal year, and other issues
1212 affecting the condominium. The division shall adopt reasonable
1213 rules governing the tape recording and videotaping of the
1214 meeting. The association may adopt written reasonable rules
1215 governing the frequency, duration, and manner of unit owner
1216 statements.
1217 1. Adequate notice of all board meetings, which must
1218 specifically identify all agenda items, must be posted
1219 conspicuously on the condominium property at least 48 continuous
1220 hours before the meeting except in an emergency. If 20 percent
1221 of the voting interests petition the board to address an item of
1222 business, the board, within 60 days after receipt of the
1223 petition, shall place the item on the agenda at its next regular
1224 board meeting or at a special meeting called for that purpose.
1225 An item not included on the notice may be taken up on an
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1226 emergency basis by a vote of at least a majority plus one of the
1227 board members. Such emergency action must be noticed and
1228 ratified at the next regular board meeting. Written notice of a
1229 meeting at which a nonemergency special assessment or an
1230 amendment to rules regarding unit use will be considered must be
1231 mailed, delivered, or electronically transmitted to the unit
1232 owners and posted conspicuously on the condominium property at
1233 least 14 days before the meeting. Evidence of compliance with
1234 this 14-day notice requirement must be made by an affidavit
1235 executed by the person providing the notice and filed with the
1236 official records of the association. Notice of any meeting in
1237 which regular or special assessments against unit owners are to
1238 be considered must specifically state that assessments will be
1239 considered and provide the estimated cost and description of the
1240 purposes for such assessments.
1241 2. Upon notice to the unit owners, the board shall, by
1242 duly adopted rule, designate a specific location on the
1243 condominium property at which where all notices of board
1244 meetings must be posted. If there is no condominium property at
1245 which where notices can be posted, notices shall be mailed,
1246 delivered, or electronically transmitted to each unit owner at
1247 least 14 days before the meeting. In lieu of or in addition to
1248 the physical posting of the notice on the condominium property,
1249 the association may, by reasonable rule, adopt a procedure for
1250 conspicuously posting and repeatedly broadcasting the notice and
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1251 the agenda on a closed-circuit cable television system serving
1252 the condominium association. However, if broadcast noti ce is
1253 used in lieu of a notice physically posted on condominium
1254 property, the notice and agenda must be broadcast at least four
1255 times every broadcast hour of each day that a posted notice is
1256 otherwise required under this section. If broadcast notice is
1257 provided, the notice and agenda must be broadcast in a manner
1258 and for a sufficient continuous length of time so as to allow an
1259 average reader to observe the notice and read and comprehend the
1260 entire content of the notice and the agenda. In addition to any
1261 of the authorized means of providing notice of a meeting of the
1262 board, the association may, by rule, adopt a procedure for
1263 conspicuously posting the meeting notice and the agenda on a
1264 website serving the condominium association for at least the
1265 minimum period of time for which a notice of a meeting is also
1266 required to be physically posted on the condominium property.
1267 Any rule adopted shall, in addition to other matters, include a
1268 requirement that the association send an electronic notice in
1269 the same manner as a notice for a meeting of the members, which
1270 must include a hyperlink to the website at which where the
1271 notice is posted, to unit owners whose e-mail addresses are
1272 included in the association's official records.
1273 3. Notice of any meeting in which regular or special
1274 assessments against unit owners are to be considered must
1275 specifically state that assessments will be considered and
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1276 provide the estimated cost and description of the purposes for
1277 such assessments. If an agenda item relates to the approval of a
1278 contract for goods or services, a copy of the contract must be
1279 provided with the notice and be made available for inspection
1280 and copying upon a written request from a unit owner or made
1281 available on the association's website or through an application
1282 that can be downloaded on a mobile device.
1283 4.2. Meetings of a committee to take final action on
1284 behalf of the board or make recommendations to the board
1285 regarding the association budget are subject to this paragraph.
1286 Meetings of a committee that does not take final action on
1287 behalf of the board or make recommendations to the board
1288 regarding the association budget are subject to this section,
1289 unless those meetings are exempted from this section by the
1290 bylaws of the association.
1291 5.3. Notwithstanding any other law, the requirement that
1292 board meetings and committee meetings be open to the unit owners
1293 does not apply to:
1294 a. Meetings between the board or a committee and the
1295 association's attorney, with respect to proposed or pending
1296 litigation, if the meeting is held for the purpose of seeking or
1297 rendering legal advice; or
1298 b. Board meetings held for the purpose of discussing
1299 personnel matters.
1300 (d) Unit owner meetings.—
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1301 1. An annual meeting of the unit owners must be held at
1302 the location provided in the association bylaws and, if the
1303 bylaws are silent as to the location, the meeting must be held
1304 within 45 miles of the condominium property. However, such
1305 distance requirement does not apply to an association governing
1306 a timeshare condominium.
1307 2. Unless the bylaws provide otherwise, a vacancy on the
1308 board caused by the expiration of a director's term must be
1309 filled by electing a new board member, and the election must be
1310 by secret ballot. An election is not required if the number of
1311 vacancies equals or exceeds the number of candidates. For
1312 purposes of this paragraph, the term "candidate" means an
1313 eligible person who has timely submitted the written notice, as
1314 described in sub-subparagraph 4.a., of his or her intention to
1315 become a candidate. Except in a timeshare or nonresidential
1316 condominium, or if the staggered term of a board member does not
1317 expire until a later annual meeting, or if all members' terms
1318 would otherwise expire but there are no candidates, the terms of
1319 all board members expire at the annual meeting, and such members
1320 may stand for reelection unless prohibited by the bylaws. Board
1321 members may serve terms longer than 1 year if permitted by the
1322 bylaws or articles of incorporation. A board member may not
1323 serve more than 8 consecutive years unless approved by an
1324 affirmative vote of unit owners representing two-thirds of all
1325 votes cast in the election or unless there are not enough
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1326 eligible candidates to fill the vacancies on the board at the
1327 time of the vacancy. Only board service that occurs on or after
1328 July 1, 2018, may be used when calculating a board member's term
1329 limit. If the number of board members whose terms expire at the
1330 annual meeting equals or exceeds the number of candidates, the
1331 candidates become members of the board effective upon the
1332 adjournment of the annual meeting. Unless the bylaws provide
1333 otherwise, any remaining vacancies shall be filled by the
1334 affirmative vote of the majority of the directors making up the
1335 newly constituted board even if the directors constitute less
1336 than a quorum or there is only one director. In a residential
1337 condominium association of more than 10 units or in a
1338 residential condominium association that does not include
1339 timeshare units or timeshare interests, co-owners of a unit may
1340 not serve as members of the board of directors at the same time
1341 unless they own more than one unit or unless there are not
1342 enough eligible candidates to fill the vacancies on the board at
1343 the time of the vacancy. A unit owner in a residential
1344 condominium desiring to be a candidate for board membership must
1345 comply with sub-subparagraph 4.a. and must be eligible to be a
1346 candidate to serve on the board of directors at the time of the
1347 deadline for submitting a notice of intent to run in order to
1348 have his or her name listed as a proper candidate on the ballot
1349 or to serve on the board. A person who has been suspended or
1350 removed by the division under this chapter, or who is delinquent
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1351 in the payment of any assessment due to the association, is not
1352 eligible to be a candidate for board membership and may not be
1353 listed on the ballot. For purposes of this paragraph, a person
1354 is delinquent if a payment is not made by the due date as
1355 specifically identified in the declaration of condominium,
1356 bylaws, or articles of incorporation. If a due date is not
1357 specifically identified in the declaration of condominium,
1358 bylaws, or articles of incorporation, the due date is the first
1359 day of the assessment period. A person who has been convicted of
1360 any felony in this state or in a United States District or
1361 Territorial Court, or who has been convicted of any offense in
1362 another jurisdiction which would be considered a felony if
1363 committed in this state, is not eligible for board membership
1364 unless such felon's civil rights have been restored for at least
1365 5 years as of the date such person seeks election to the board.
1366 The validity of an action by the board is not affected if it is
1367 later determined that a board member is ineligible for board
1368 membership due to having been convicted of a felony. This
1369 subparagraph does not limit the term of a member of the board of
1370 a nonresidential or timeshare condominium.
1371 3. The bylaws must provide the method of calling meetings
1372 of unit owners, including annual meetings. Written notice of an
1373 annual meeting must include an agenda; be mailed, hand
1374 delivered, or electronically transmitted to each unit owner at
1375 least 14 days before the annual meeting; and be posted in a
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1376 conspicuous place on the condominium property or association
1377 property at least 14 continuous days before the annual meeting.
1378 Written notice of a meeting other than an annual meeting must
1379 include an agenda; be mailed, hand delivered, or electronically
1380 transmitted to each unit owner; and be posted in a conspicuous
1381 place on the condominium property or association property within
1382 the timeframe specified in the bylaws. If the bylaws do not
1383 specify a timeframe for written notice of a meeting other than
1384 an annual meeting, notice must be provided at least 14
1385 continuous days before the meeting. Upon notice to the unit
1386 owners, the board shall, by duly adopted rule, designate a
1387 specific location on the condominium property or association
1388 property at which where all notices of unit owner meetings must
1389 be posted. This requirement does not apply if there is no
1390 condominium property for posting notices. In lieu of, or in
1391 addition to, the physical posting of meeting notices, the
1392 association may, by reasonable rule, adopt a procedure for
1393 conspicuously posting and repeatedly broadcasting the notice and
1394 the agenda on a closed-circuit cable television system serving
1395 the condominium association. However, if broadcast notice is
1396 used in lieu of a notice posted physically on the condominium
1397 property, the notice and agenda must be broadcast at least four
1398 times every broadcast hour of each day that a posted notice is
1399 otherwise required under this section. If broadcast notice is
1400 provided, the notice and agenda must be broadcast in a manner
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1401 and for a sufficient continuous length of time so as to allow an
1402 average reader to observe the notice and read and comprehend the
1403 entire content of the notice and the agenda. In addition to any
1404 of the authorized means of providing notice of a meeting of the
1405 board, the association may, by rule, adopt a procedure for
1406 conspicuously posting the meeting notice and the agenda on a
1407 website serving the condominium association for at least the
1408 minimum period of time for which a notice of a meeting is also
1409 required to be physically posted on the condominium property.
1410 Any rule adopted shall, in addition to other matters, include a
1411 requirement that the association send an electronic notice in
1412 the same manner as a notice for a meeting of the members, which
1413 must include a hyperlink to the website at which where the
1414 notice is posted, to unit owners whose e-mail addresses are
1415 included in the association's official records. Unless a unit
1416 owner waives in writing the right to receive notice of the
1417 annual meeting, such notice must be hand delivered, mailed, or
1418 electronically transmitted to each unit owner. Notice for
1419 meetings and notice for all other purposes must be mailed to
1420 each unit owner at the address last furnished to the association
1421 by the unit owner, or hand delivered to each unit owner.
1422 However, if a unit is owned by more than one person, the
1423 association must provide notice to the address that the
1424 developer identifies for that purpose and thereafter as one or
1425 more of the owners of the unit advise the association in
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1426 writing, or if no address is given or the owners of the unit do
1427 not agree, to the address provided on the deed of record. An
1428 officer of the association, or the manager or other person
1429 providing notice of the association meeting, must provide an
1430 affidavit or United States Postal Service certificate of
1431 mailing, to be included in the official records of the
1432 association affirming that the notice was mailed or hand
1433 delivered in accordance with this provision.
1434 4. The members of the board of a residential condominium
1435 shall be elected by written ballot or voting machine. Proxies
1436 may not be used in electing the board in general elections or
1437 elections to fill vacancies caused by recall, resignation, or
1438 otherwise, unless otherwise provided in this chapter. This
1439 subparagraph does not apply to an association governing a
1440 timeshare condominium.
1441 a. At least 60 days before a scheduled election, the
1442 association shall mail, deliver, or electronically transmit, by
1443 separate association mailing or included in another association
1444 mailing, delivery, or transmission, including regularly
1445 published newsletters, to each unit owner entitled to a vote, a
1446 first notice of the date of the election. A unit owner or other
1447 eligible person desiring to be a candidate for the board must
1448 give written notice of his or her intent to be a candidate to
1449 the association at least 40 days before a scheduled election.
1450 Together with the written notice and agenda as set forth in
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1451 subparagraph 3., the association shall mail, deliver, or
1452 electronically transmit a second notice of the election to all
1453 unit owners entitled to vote, together with a ballot that lists
1454 all candidates not less than 14 days or more than 34 days before
1455 the date of the election. Upon request of a candidate, an
1456 information sheet, no larger than 8 1/2 inches by 11 inches,
1457 which must be furnished by the candidate at least 35 days before
1458 the election, must be included with the mailing, delivery, or
1459 transmission of the ballot, with the costs of mailing, delivery,
1460 or electronic transmission and copying to be borne by the
1461 association. The association is not liable for the contents of
1462 the information sheets prepared by the candidates. In order to
1463 reduce costs, the association may print or duplicate the
1464 information sheets on both sides of the paper. The division
1465 shall by rule establish voting procedures consistent with this
1466 sub-subparagraph, including rules establishing procedures for
1467 giving notice by electronic transmission and rules providing for
1468 the secrecy of ballots. Elections shall be decided by a
1469 plurality of ballots cast. There is no quorum requirement;
1470 however, at least 20 percent of the eligible voters must cast a
1471 ballot in order to have a valid election. A unit owner may not
1472 authorize any other person to vote his or her ballot, and any
1473 ballots improperly cast are invalid. A unit owner who violates
1474 this provision may be fined by the association in accordance
1475 with s. 718.303. A unit owner who needs assistance in casting
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1476 the ballot for the reasons stated in s. 101.051 may obtain such
1477 assistance. The regular election must occur on the date of the
1478 annual meeting. Notwithstanding this sub-subparagraph, an
1479 election is not required unless more candidates file notices of
1480 intent to run or are nominated than board vacancies exist.
1481 b. A director of a Within 90 days after being elected or
1482 appointed to the board of an association of a residential
1483 condominium, each newly elected or appointed director shall:
1484 (I) Certify in writing to the secretary of the association
1485 that he or she has read the association's declaration of
1486 condominium, articles of incorporation, bylaws, and current
1487 written policies; that he or she will work to uphold such
1488 documents and policies to the best of his or her ability; and
1489 that he or she will faithfully discharge his or her fiduciary
1490 responsibility to the association's members.
1491 (II) Submit to the secretary of the association In lieu of
1492 this written certification, within 90 days after being elected
1493 or appointed to the board, the newly elected or appointed
1494 director may submit a certificate of having satisfactorily
1495 completed the educational curriculum administered by the
1496 division or a division-approved condominium education provider.
1497 The educational curriculum must be at least 4 hours long and
1498 include instruction on milestone inspections, structural
1499 integrity reserve studies, elections, recordkeeping, financia l
1500 literacy and transparency, levying of fines, and notice and
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1501 meeting requirements within 1 year before or 90 days after the
1502 date of election or appointment.
1503
1504 Each newly elected or appointed director must submit to the
1505 secretary of the association the written certification and
1506 educational certificate within 1 year before being elected or
1507 appointed or 90 days after the date of election or appointment.
1508 A director of an association of a residential condominium who
1509 was elected or appointed before July 1, 2024, must comply with
1510 the written certification and educational certificate
1511 requirements in this sub-subparagraph by June 30, 2025. The
1512 written certification and or educational certificate is valid
1513 for 7 years after the date of issuance and does not have to be
1514 resubmitted as long as the director serves on the board without
1515 interruption during the 7-year period. A director who is
1516 appointed by the developer may satisfy the educational
1517 certificate requirement in sub-sub-subparagraph (II) for any
1518 subsequent appointment to a board by a developer within 7 years
1519 after the date of issuance of the most recent educational
1520 certificate, including any interruption of service on a board or
1521 appointment to a board in another association within that 7-year
1522 period. One year after submission of the most recent written
1523 certification and educational certificate, and annually
1524 thereafter, a director of an association of a residential
1525 condominium must submit to the secretary of the association a
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1526 certificate of having satisfactorily completed at least 1 hour
1527 of continuing education administered by the division, or a
1528 division-approved condominium education provider, relating to
1529 any recent changes to this chapter and the related
1530 administrative rules during the past year. A director of an
1531 association of a residential condominium who fails to timely
1532 file the written certification and or educational certificate is
1533 suspended from service on the board until he or she complies
1534 with this sub-subparagraph. The board may temporarily fill the
1535 vacancy during the period of suspension. The secretary shall
1536 cause the association to retain a director's written
1537 certification and or educational certificate for inspection by
1538 the members for 7 5 years after a director's election or the
1539 duration of the director's uninterrupted tenure, whichever is
1540 longer. Failure to have such written certification and or
1541 educational certificate on file does not affect the validity of
1542 any board action.
1543 c. Any challenge to the election process must be commenced
1544 within 60 days after the election results are announced.
1545 5. Any approval by unit owners called for by this chapter
1546 or the applicable declaration or bylaws, including, but not
1547 limited to, the approval requirement in s. 718.111(8), must be
1548 made at a duly noticed meeting of unit owners and is subject to
1549 all requirements of this chapter or the applicable condominium
1550 documents relating to unit owner decisionmaking, except that
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1551 unit owners may take action by written agreement, without
1552 meetings, on matters for which action by written agreement
1553 without meetings is expressly allowed by the applicable bylaws
1554 or declaration or any law that provides for such action.
1555 6. Unit owners may waive notice of specific meetings if
1556 allowed by the applicable bylaws or declaration or any law.
1557 Notice of meetings of the board of administration; unit owner
1558 meetings, except unit owner meetings called to recall board
1559 members under paragraph (l); and committee meetings may be given
1560 by electronic transmission to unit owners who consent to receive
1561 notice by electronic transmission. A unit owner who consents to
1562 receiving notices by electronic transmission is solely
1563 responsible for removing or bypassing filters that block receipt
1564 of mass e-mails sent to members on behalf of the association in
1565 the course of giving electronic notices.
1566 7. Unit owners have the right to participate in meetings
1567 of unit owners with reference to all designated agenda items.
1568 However, the association may adopt reasonable rules governing
1569 the frequency, duration, and manner of unit owner participation.
1570 8. A unit owner may tape record or videotape a meeting of
1571 the unit owners subject to reasonable rules adopted by the
1572 division.
1573 9. Unless otherwise provided in the bylaws, any vacancy
1574 occurring on the board before the expiration of a ter m may be
1575 filled by the affirmative vote of the majority of the remaining
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1576 directors, even if the remaining directors constitute less than
1577 a quorum, or by the sole remaining director. In the alternative,
1578 a board may hold an election to fill the vacancy, in which case
1579 the election procedures must conform to sub-subparagraph 4.a.
1580 unless the association governs 10 units or fewer and has opted
1581 out of the statutory election process, in which case the bylaws
1582 of the association control. Unless otherwise provided in the
1583 bylaws, a board member appointed or elected under this section
1584 shall fill the vacancy for the unexpired term of the seat being
1585 filled. Filling vacancies created by recall is governed by
1586 paragraph (l) and rules adopted by the division.
1587 10. This chapter does not limit the use of general or
1588 limited proxies, require the use of general or limited proxies,
1589 or require the use of a written ballot or voting machine for any
1590 agenda item or election at any meeting of a timeshare
1591 condominium association or nonresidential condominium
1592 association.
1593
1594 Notwithstanding subparagraph (b)2. and sub-subparagraph 4.a., an
1595 association of 10 or fewer units may, by affirmative vote of a
1596 majority of the total voting interests, provide for different
1597 voting and election procedures in its bylaws, which may be by a
1598 proxy specifically delineating the different voting and election
1599 procedures. The different voting and election procedures may
1600 provide for elections to be conducted by limited or general
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1601 proxy.
1602 (f) Annual budget.—
1603 1. The proposed annual budget of estimated revenues and
1604 expenses must be detailed and must show the amounts budgeted by
1605 accounts and expense classifications, including, at a minimum,
1606 any applicable expenses listed in s. 718.504(21). The board
1607 shall adopt the annual budget at least 14 days before the start
1608 of the association's fiscal year. In the event that the board
1609 fails to timely adopt the annual budget a second time, it is
1610 deemed a minor violation and the prior year's budget shall
1611 continue in effect until a new budget is adopted. A
1612 multicondominium association must adopt a separate budget of
1613 common expenses for each condominium the association operates
1614 and must adopt a separate budget of common expenses for the
1615 association. In addition, if the association mainta ins limited
1616 common elements with the cost to be shared only by those
1617 entitled to use the limited common elements as provided for in
1618 s. 718.113(1), the budget or a schedule attached to it must show
1619 the amount budgeted for this maintenance. If, after turnover of
1620 control of the association to the unit owners, any of the
1621 expenses listed in s. 718.504(21) are not applicable, they do
1622 not need to be listed.
1623 2.a. In addition to annual operating expenses, the budget
1624 must include reserve accounts for capital expenditures and
1625 deferred maintenance. These accounts must include, but are not
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1626 limited to, roof replacement, building painting, and pavement
1627 resurfacing, regardless of the amount of deferred maintenance
1628 expense or replacement cost, and any other item that has a
1629 deferred maintenance expense or replacement cost that exceeds
1630 $10,000. The amount to be reserved must be computed using a
1631 formula based upon estimated remaining useful life and estimated
1632 replacement cost or deferred maintenance expense of the reserve
1633 item. In a budget adopted by an association that is required to
1634 obtain a structural integrity reserve study, reserves must be
1635 maintained for the items identified in paragraph (g) for which
1636 the association is responsible pursuant to the declaration of
1637 condominium, and the reserve amount for such items must be based
1638 on the findings and recommendations of the association's most
1639 recent structural integrity reserve study. With respect to items
1640 for which an estimate of useful life is not readily
1641 ascertainable or with an estimated remaining useful life of
1642 greater than 25 years, an association is not required to reserve
1643 replacement costs for such items, but an association must
1644 reserve the amount of deferred maintenance expense, if any,
1645 which is recommended by the structural integrity reserve study
1646 for such items. The association may adjust replacement reserve
1647 assessments annually to take into account an inflation
1648 adjustment and any changes in estimates or extension of the
1649 useful life of a reserve item caused by deferred maintenance.
1650 The members of a unit-owner-controlled association may
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1651 determine, by a majority vote of the total voting interests of
1652 the association, to provide no reserves or less reserves than
1653 required by this subsection. For a budget adopted on or after
1654 December 31, 2024, the members of a unit-owner-controlled
1655 association that must obtain a structural integrity reserve
1656 study may not determine to provide no reserves or less reserves
1657 than required by this subsection for items listed in paragraph
1658 (g), except that members of an association operating a
1659 multicondominium may determine to provide no reserves or less
1660 reserves than required by this subsection if an alternative
1661 funding method has been approved by the division. If the local
1662 building official, as defined in s. 468.603, determines that the
1663 entire condominium building is uninhabitable due to a natural
1664 emergency, as defined in s. 252.34, the board, upon the approval
1665 of a majority of its members, may pause the contribution to its
1666 reserves or reduce reserve funding until the local building
1667 official determines that the condominium building is habitable.
1668 Any reserve account funds held by the association may be
1669 expended, pursuant to the board's determination, to make the
1670 condominium building and its structures habitable. Upon the
1671 determination by the local building official that the
1672 condominium building is habitable, the association must
1673 immediately resume contributing funds to its reserves.
1674 b. Before turnover of control of an association by a
1675 developer to unit owners other than a developer under s.
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1676 718.301, the developer-controlled association may not vote to
1677 waive the reserves or reduce funding of the reserves. If a
1678 meeting of the unit owners has been called to determine whether
1679 to waive or reduce the funding of reserves and no such result is
1680 achieved or a quorum is not attained, the reserves included in
1681 the budget shall go into effect. After the turnover, the
1682 developer may vote its voting interest to waive or reduce the
1683 funding of reserves.
1684 3. Reserve funds and any interest accruing thereon shall
1685 remain in the reserve account or accounts, and may be used only
1686 for authorized reserve expenditures unless their use for other
1687 purposes is approved in advance by a majority vote of all the
1688 total voting interests of the association. Before turnover of
1689 control of an association by a developer to unit owners other
1690 than the developer pursuant to s. 718.301, the developer -
1691 controlled association may not vote to use reserves for purposes
1692 other than those for which they were intended. For a budget
1693 adopted on or after December 31, 2024, members of a unit -owner-
1694 controlled association that must obtain a structural integrity
1695 reserve study may not vote to use reserve funds, or any interest
1696 accruing thereon, for any other purpose other than the
1697 replacement or deferred maintenance costs of the components
1698 listed in paragraph (g).
1699 4. The only voting interests that are eligible to vote on
1700 questions that involve waiving or reducing the funding of
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1701 reserves, or using existing reserve funds for purposes other
1702 than purposes for which the reserves were intended, are the
1703 voting interests of the units subject to assessment to fund the
1704 reserves in question. Proxy questions relating to waiving or
1705 reducing the funding of reserves or using existing reserve funds
1706 for purposes other than purposes for which the reserves were
1707 intended must contain the following statement in capitalized,
1708 bold letters in a font size larger than any other used on the
1709 face of the proxy ballot: WAIVING OF RESERVES, IN WHOLE OR IN
1710 PART, OR ALLOWING ALTERNATIVE USES OF EXISTING RESERVES MAY
1711 RESULT IN UNIT OWNER LIABILITY FOR PAYMENT OF UNANTICIPATED
1712 SPECIAL ASSESSMENTS REGARDING THOSE ITEMS.
1713 (g) Structural integrity reserve study.—
1714 1. A residential condominium association must have a
1715 structural integrity reserve study completed at least every 10
1716 years after the condominium's creation for each building on the
1717 condominium property that is three stories or higher in height,
1718 as determined by the Florida Building Code, which inclu des, at a
1719 minimum, a study of the following items as related to the
1720 structural integrity and safety of the building:
1721 a. Roof.
1722 b. Structure, including load-bearing walls and other
1723 primary structural members and primary structural systems as
1724 those terms are defined in s. 627.706.
1725 c. Fireproofing and fire protection systems.
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1726 d. Plumbing.
1727 e. Electrical systems.
1728 f. Waterproofing and exterior painting.
1729 g. Windows and exterior doors.
1730 h. Any other item that has a deferred maintenance expense
1731 or replacement cost that exceeds $10,000 and the failure to
1732 replace or maintain such item negatively affects the items
1733 listed in sub-subparagraphs a.-g., as determined by the visual
1734 inspection portion of the structural integrity reserve study.
1735 2. A structural integrity reserve study is based on a
1736 visual inspection of the condominium property. A structural
1737 integrity reserve study may be performed by any person qualified
1738 to perform such study. However, the visual inspection portion of
1739 the structural integrity reserve study must be performed or
1740 verified by an engineer licensed under chapter 471, an architect
1741 licensed under chapter 481, or a person certified as a reserve
1742 specialist or professional reserve analyst by the Community
1743 Associations Institute or the Association of Professional
1744 Reserve Analysts.
1745 3. At a minimum, a structural integrity reserve study must
1746 identify each item of the condominium property being visually
1747 inspected, state the estimated remaining useful life and the
1748 estimated replacement cost or deferred maintenance expense of
1749 each item of the condominium property being visually inspected,
1750 and provide a reserve funding schedule with a recommended annual
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1751 reserve amount that achieves the estimated replacement cost or
1752 deferred maintenance expense of each item of condominium
1753 property being visually inspected by the end of the estimated
1754 remaining useful life of the item. The structural integrity
1755 reserve study may recommend that reserves do not need to be
1756 maintained for any item for which an estimate of useful life and
1757 an estimate of replacement cost cannot be determined, or the
1758 study may recommend a deferred maintenance expense amount for
1759 such item. The structural integrity reserve study may recommend
1760 that reserves for replacement costs do not need to be maintained
1761 for any item with an estimated remaining useful life of greater
1762 than 25 years, but the study may recommend a deferred
1763 maintenance expense amount for such item.
1764 4. This paragraph does not apply to buildings less than
1765 three stories in height; single-family, two-family, or three-
1766 family dwellings with three or fewer habitable stories above
1767 ground; any portion or component of a building that has not been
1768 submitted to the condominium form of ownership; or any portion
1769 or component of a building that is maintained by a party other
1770 than the association.
1771 5. Before a developer turns over control of an association
1772 to unit owners other than the developer, the developer must have
1773 a turnover inspection report in compliance with s. 718.301(4)(p)
1774 and (q) for each building on the condominium property that is
1775 three stories or higher in height.
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1776 6. Associations existing on or before July 1, 2022, which
1777 are controlled by unit owners other than the developer, must
1778 have a structural integrity reserve study completed by December
1779 31, 2024, for each building on the condominium property that is
1780 three stories or higher in height. An association that is
1781 required to complete a milestone inspection in accordance with
1782 s. 553.899 on or before December 31, 2026, may complete the
1783 structural integrity reserve study simultaneously with the
1784 milestone inspection. In no event may the structural integrity
1785 reserve study be completed after December 31, 2026.
1786 7. If the milestone inspection required by s. 553.899, or
1787 an inspection completed for a similar local requirement, was
1788 performed within the past 5 years and meets the requirements of
1789 this paragraph, such inspection may be used in place of the
1790 visual inspection portion of the structural integrity reserve
1791 study.
1792 8. If the officers or directors of an association
1793 willfully and knowingly fail to complete a structural integrity
1794 reserve study pursuant to this paragraph, such failure is a
1795 breach of an officer's and director's fiduciary relationship to
1796 the unit owners under s. 718.111(1).
1797 9. Within 45 days after receiving the structural integrity
1798 reserve study, the association must distribute a copy of the
1799 study to each unit owner or deliver to each unit owner a notice
1800 that the completed study is available for inspection an d copying
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1801 upon a written request. Distribution of a copy of the study or
1802 notice must be made by United States mail or personal delivery
1803 to the mailing address, property address, or any other address
1804 of the owner provided to fulfill the association's notice
1805 requirements under this chapter, or by electronic transmission
1806 to the e-mail address or facsimile number provided to fulfill
1807 the association's notice requirements to unit owners who
1808 previously consented to receive notice by electronic
1809 transmission.
1810 10. Within 45 days after receiving the structural
1811 integrity reserve study, the association must provide the
1812 division with a statement indicating that the study was
1813 completed and that the association provided or made available
1814 such study to each unit owner in accordance with this section.
1815 The statement must be provided to the division in the manner
1816 established by the division using a form posted on the
1817 division's website.
1818 (q) Director or officer offenses.—
1819 1. A director or an officer charged by information or
1820 indictment with any of the following crimes must be removed from
1821 office:
1822 a. Forgery, as provided in s. 831.01, of a ballot envelope
1823 or voting certificate used in a condominium association
1824 election.
1825 b. Theft, as provided in s. 812.014, or embezzlement
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1826 involving the association's funds or property.
1827 c. Destruction of, or the refusal to allow inspection or
1828 copying of, an official record of a condominium association
1829 which is accessible to unit owners within the time periods
1830 required by general law, in furtherance of any crime. Such act
1831 constitutes tampering with physical evidence as provided in s.
1832 918.13.
1833 d. Obstruction of justice under chapter 843.
1834 e. Any criminal violation under this chapter.
1835 2. The board shall fill the vacancy in accordance with
1836 paragraph (2)(d) a felony theft or embezzlement offense
1837 involving the association's funds or property must be removed
1838 from office, creating a vacancy in the office to be filled
1839 according to law until the end of the period of the suspension
1840 or the end of the director's term of office, whichever occurs
1841 first. While such director or officer has such criminal charge
1842 pending, he or she may not be appointed or elected to a position
1843 as a director or officer of any association and may not have
1844 access to the official records of any association, except
1845 pursuant to a court order. However, if the charges are resolved
1846 without a finding of guilt, the director or officer shall be
1847 reinstated for the remainder of his or her term of office, if
1848 any.
1849 (r) Fraudulent voting activities relating to association
1850 elections; penalties.—
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1851 1. A person who engages in the following acts of
1852 fraudulent voting activity relating to association elections
1853 commits a misdemeanor of the first degree, punishable as
1854 provided in s. 775.082 or s. 775.083:
1855 a. Willfully and falsely swearing to or affirming an oath
1856 or affirmation, or willfully procuring another person to falsely
1857 swear to or affirm an oath or affirmation, in connection with or
1858 arising out of voting activities.
1859 b. Perpetrating or attempting to perpetrate, or aiding in
1860 the perpetration of, fraud in connection with a vote cast, to be
1861 cast, or attempted to be cast.
1862 c. Preventing a member from voting or preventing a member
1863 from voting as he or she intended by fraudulently changing or
1864 attempting to change a ballot, ballot envelope, vote, or voting
1865 certificate of the member.
1866 d. Menacing, threatening, or using bribery or any other
1867 corruption to attempt, directly or indirectly, to influence,
1868 deceive, or deter a member when the member is voting.
1869 e. Giving or promising, directly or indirectly, anything
1870 of value to another member with the intent to buy the vote of
1871 that member or another member or to corruptly influence that
1872 member or another member in casting his or her vote. This sub -
1873 subparagraph does not apply to any food served which is to be
1874 consumed at an election rally or a meeting or to any item of
1875 nominal value which is used as an election advertisement,
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1876 including a campaign message designed to be worn by a member.
1877 f. Using or threatening to use, directly or indirectly,
1878 force, violence, or intimidation or any tactic of coercion or
1879 intimidation to induce or compel a member to vote or refrain
1880 from voting in an election or on a particular ballot measure.
1881 2. Each of the following acts constitutes a misdemeanor of
1882 the first degree, punishable as provided in s. 775.082 or s.
1883 775.083:
1884 a. Knowingly aiding, abetting, or advising a person in the
1885 commission of a fraudulent voting activity related to
1886 association elections.
1887 b. Agreeing, conspiring, combining, or confederating with
1888 at least one other person to commit a fraudulent voting activity
1889 related to association elections.
1890 c. Having knowledge of a fraudulent voting activity
1891 related to association elections and giving any aid to the
1892 offender with intent that the offender avoid or escape
1893 detection, arrest, trial, or punishment. This sub-subparagraph
1894 does not apply to a licensed attorney giving legal advice to a
1895 client.
1896 Section 10. Subsection (5) of section 718.113, Florida
1897 Statutes, is amended to read:
1898 718.113 Maintenance; limitation upon improvement; display
1899 of flag; hurricane shutters and protection; display of religious
1900 decorations.—
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1901 (5) To protect the health, safety, and welfare of the
1902 people of the state and to ensure uniformity and consistency in
1903 the hurricane protections installed by condominium associations
1904 and unit owners, this subsection applies to all residential and
1905 mixed-use condominiums in the state, regardless of when the
1906 condominium is created pursuant to the declaration of
1907 condominium. Each board of administration of a residential
1908 condominium or mixed-use condominium must shall adopt hurricane
1909 protection shutter specifications for each building within each
1910 condominium operated by the association which may shall include
1911 color, style, and other factors deemed relevant by the board.
1912 All specifications adopted by the board must comply with the
1913 applicable building code. The installation, maintenance, repair,
1914 replacement, and operation of hurricane protection in accordance
1915 with this subsection is not considered a material alteration or
1916 substantial addition to the common elements or association
1917 property within the meaning of this section.
1918 (a) The board may, subject to s. 718.3026 and the approval
1919 of a majority of voting interests of the residential condominium
1920 or mixed-use condominium, install or require that unit owners
1921 install hurricane shutters, impact glass, code-compliant windows
1922 or doors, or other types of code-compliant hurricane protection
1923 that complies comply with or exceeds exceed the applicable
1924 building code. A vote of the unit owners to require the
1925 installation of hurricane protection must be set forth in a
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1926 certificate attesting to such vote and include the date that the
1927 hurricane protection must be installed. The board must record
1928 the certificate in the public records of the county in which the
1929 condominium is located. Once the certificate is recorded, the
1930 board must mail or hand deliver a copy of the recorded
1931 certificate to the unit owners at the owners' addresses, as
1932 reflected in the records of the association. The board may
1933 provide to unit owners who previously consented to receive
1934 notice by electronic transmission a copy of the recorded
1935 certificate by electronic transmission. The failure to record
1936 the certificate or send a copy of the recorded certificate to
1937 the unit owners does not affect the validity or enforceability
1938 of the vote of the unit owners. However, A vote of the unit
1939 owners under this paragraph is not required if the installation,
1940 maintenance, repair, and replacement of the hurricane shutters,
1941 impact glass, code-compliant windows or doors, or other types of
1942 code-compliant hurricane protection, or any exterior windows,
1943 doors, or other apertures protected by the hurricane protection,
1944 is are the responsibility of the association pursuant to the
1945 declaration of condominium as originally recorded or as amended,
1946 or if the unit owners are required to install hurricane
1947 protection pursuant to the declaration of condominium as
1948 originally recorded or as amended. If hurricane protection or
1949 laminated glass or window film architecturally designed to
1950 function as hurricane protection that complies with or exceeds
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1951 the current applicable building code has been previously
1952 installed, the board may not install the same type of hurricane
1953 shutters, impact glass, code-compliant windows or doors, or
1954 other types of code-compliant hurricane protection or require
1955 that unit owners install the same type of hurricane protection
1956 unless the installed hurricane protection has reached t he end of
1957 its useful life or unless it is necessary to prevent damage to
1958 the common elements or to a unit except upon approval by a
1959 majority vote of the voting interests.
1960 (b) The association is responsible for the maintenance,
1961 repair, and replacement of the hurricane shutters, impact glass,
1962 code-compliant windows or doors, or other types of code -
1963 compliant hurricane protection authorized by this subsection if
1964 such property is the responsibility of the association pursuant
1965 to the declaration of condominium. If the hurricane shutters,
1966 impact glass, code-compliant windows or doors, or other types of
1967 code-compliant hurricane protection are the responsibility of
1968 the unit owners pursuant to the declaration of condominium, the
1969 maintenance, repair, and replacement of such items are the
1970 responsibility of the unit owner.
1971 (b)(c) The board may operate shutters, impact glass, code-
1972 compliant windows or doors, or other types of code-compliant
1973 hurricane protection installed pursuant to this subsection
1974 without permission of the unit owners only if such operation is
1975 necessary to preserve and protect the condominium property or
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1976 and association property. The installation, replacement,
1977 operation, repair, and maintenance of such shutters, impact
1978 glass, code-compliant windows or doors, or other types of code-
1979 compliant hurricane protection in accordance with the procedures
1980 set forth in this paragraph are not a material alteration to the
1981 common elements or association property within the meaning of
1982 this section.
1983 (c)(d) Notwithstanding any other provision in the
1984 residential condominium or mixed-use condominium documents, if
1985 approval is required by the documents, a board may not refuse to
1986 approve the installation or replacement of hurricane shutters,
1987 impact glass, code-compliant windows or doors, or other types of
1988 code-compliant hurricane protection by a unit owner which
1989 conforms conforming to the specifications adopted by the board.
1990 However, a board may require the unit owner to adhere to an
1991 existing unified building scheme regarding the external
1992 appearance of the condominium.
1993 (d) A unit owner is not responsible for the cost of any
1994 removal or reinstallation of hurricane protection, including
1995 exterior windows, doors, or other apertures, if its removal is
1996 necessary for the maintenance, repair, or replacement of other
1997 condominium property or association property for which the
1998 association is responsible. The board shall determine if the
1999 removal or reinstallation of hurricane protection must be
2000 completed by the unit owner or the association. If such removal
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2001 or reinstallation is completed by the association, the costs
2002 incurred by the association may not be charged to the unit
2003 owner. If such removal or reinstallation is completed by the
2004 unit owner, the association must reimburse the unit own er for
2005 the cost of the removal or reinstallation or the association
2006 must apply a credit toward future assessments in the amount of
2007 the unit owner's cost to remove or reinstall the hurricane
2008 protection.
2009 (e) If the removal or reinstallation of hurricane
2010 protection, including exterior windows, doors, or other
2011 apertures, is the responsibility of the unit owner and the
2012 association completes such removal or reinstallation and then
2013 charges the unit owner for such removal or reinstallation, such
2014 charges are enforceable as an assessment and may be collected in
2015 the manner provided under s. 718.116.
2016 Section 11. Paragraph (e) of subsection (1) of section
2017 718.115, Florida Statutes, is amended to read:
2018 718.115 Common expenses and common surplus.—
2019 (1)
2020 (e)1. Except as provided in s. 718.113(5)(d), The expense
2021 of installation, replacement, operation, repair, and maintenance
2022 of hurricane shutters, impact glass, code-compliant windows or
2023 doors, or other types of code-compliant hurricane protection by
2024 the board pursuant to s. 718.113(5) constitutes a common expense
2025 and shall be collected as provided in this section if the
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2026 association is responsible for the maintenance, repair, and
2027 replacement of the hurricane shutters, impact glass, code-
2028 compliant windows or doors, or other types of code-compliant
2029 hurricane protection pursuant to the declaration of condominium.
2030 However, if the installation of maintenance, repair, and
2031 replacement of the hurricane shutters, impact glass, code-
2032 compliant windows or doors, or other types of code-compliant
2033 hurricane protection is are the responsibility of the unit
2034 owners pursuant to the declaration of condominium or a vote of
2035 the unit owners under s. 718.113(5), the cost of the
2036 installation of the hurricane shutters, impact glass, code-
2037 compliant windows or doors, or other types of code-compliant
2038 hurricane protection by the association is not a common expense
2039 and must shall be charged individually to the unit owners based
2040 on the cost of installation of the hurricane shutters, impact
2041 glass, code-compliant windows or doors, or other types of code-
2042 compliant hurricane protection appurtenant to the unit. The
2043 costs of installation of hurricane protection are enforceable as
2044 an assessment and may be collected in the manner provided under
2045 s. 718.116.
2046 2. Notwithstanding s. 718.116(9), and regardless of
2047 whether or not the declaration requires the association or unit
2048 owners to install, maintain, repair, or replace hurricane
2049 shutters, impact glass, code-compliant windows or doors, or
2050 other types of code-compliant hurricane protection, the a unit
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2051 owner of a unit in which who has previously installed hurricane
2052 shutters in accordance with s. 718.113(5) that comply with the
2053 current applicable building code shall receive a credit when the
2054 shutters are installed; a unit owner who has previously
2055 installed impact glass or code-compliant windows or doors that
2056 comply with the current applicable building code shall receive a
2057 credit when the impact glass or code-compliant windows or doors
2058 are installed; and a unit owner who has installed other types of
2059 code-compliant hurricane protection that complies comply with
2060 the current applicable building code has been installed is
2061 excused from any assessment levied by the association or shall
2062 receive a credit if when the same type of other code-compliant
2063 hurricane protection is installed by the association. A credit
2064 is applicable if the installation of hurricane protection is for
2065 all other units that do not have hurricane protection and the
2066 cost of such installation is funded by the association's budget,
2067 including the use of reserve funds. The credit must be equal to
2068 the amount that the unit owner would have been assessed to
2069 install the hurricane protection, and the credit shall be equal
2070 to the pro rata portion of the assessed installation cost
2071 assigned to each unit. However, such unit owner remains
2072 responsible for the pro rata share of expenses for hurricane
2073 shutters, impact glass, code-compliant windows or doors, or
2074 other types of code-compliant hurricane protection installed on
2075 common elements and association property by the board pursuant
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2076 to s. 718.113(5) and remains responsible for a pro rata share of
2077 the expense of the replacement, operation, repair, and
2078 maintenance of such shutters, impact glass, code-compliant
2079 windows or doors, or other types of code-compliant hurricane
2080 protection. Expenses for the installation, replacement,
2081 operation, repair, or maintenance of hurricane protection on
2082 common elements and association property are common expenses.
2083 Section 12. Paragraph (a) of subsection (4) of section
2084 718.121, Florida Statutes, is amended to read:
2085 718.121 Liens.—
2086 (4)(a) If an association sends out an invoice for
2087 assessments or a unit's statement of the account described in s.
2088 718.111(12)(a)11.c. s. 718.111(12)(a)11.b., the invoice for
2089 assessments or the unit's statement of account must be delivered
2090 to the unit owner by first-class United States mail or by
2091 electronic transmission to the unit owner's e-mail address
2092 maintained in the association's official records.
2093 Section 13. Section 718.124, Florida Statutes, is amended
2094 to read:
2095 718.124 Limitation on actions by association.—The statute
2096 of limitations and statute of repose for any actions in law or
2097 equity which a condominium association or a cooperative
2098 association may have shall not begin to run until the unit
2099 owners have elected a majority of the members of the board of
2100 administration.
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2101 Section 14. Section 718.1224, Florida Statutes, is amended
2102 to read:
2103 718.1224 Prohibition against SLAPP suits; other prohibited
2104 actions.—
2105 (1) It is the intent of the Legislature to protect the
2106 right of condominium unit owners to exercise their rights to
2107 instruct their representatives and petition for redress of
2108 grievances before their condominium associations and the various
2109 governmental entities of this state as protected by the First
2110 Amendment to the United States Constitution and s. 5, Art. I of
2111 the State Constitution. The Legislature recognizes that
2112 strategic lawsuits against public participation, or "SLAPP
2113 suits," as they are typically referred to, have occurred when
2114 association members are sued by condominium associations,
2115 individuals, business entities, or governmental entities arising
2116 out of a condominium unit owner's appearance and presentation
2117 before the board of the condominium association or a
2118 governmental entity on matters related to the condominium
2119 association. However, it is the public policy of this state that
2120 condominium associations, governmental entities, business
2121 organizations, and individuals not engage in SLAPP suits,
2122 because such actions are inconsistent with the right of
2123 condominium unit owners to participate in their condominium
2124 association and in the state's institutions of government.
2125 Therefore, the Legislature finds and declares that pr ohibiting
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2126 such lawsuits by condominium associations, governmental
2127 entities, business entities, and individuals against condominium
2128 unit owners who address matters concerning their condominium
2129 association will preserve this fundamental state policy,
2130 preserve the constitutional rights of condominium unit owners,
2131 and ensure the continuation of representative government in this
2132 state, and ensure unit owner participation in condominium
2133 associations. It is the intent of the Legislature that such
2134 lawsuits be expeditiously disposed of by the courts. As used in
2135 this subsection, the term "governmental entity" means the state,
2136 including the executive, legislative, and judicial branches of
2137 government; law enforcement agencies; the independent
2138 establishments of the state, counties, municipalities,
2139 districts, authorities, boards, or commissions; or any agencies
2140 of these branches that are subject to chapter 286.
2141 (2) A condominium association, governmental entity,
2142 business organization, or individual in this state may not file
2143 or cause to be filed through its employees or agents any
2144 lawsuit, cause of action, claim, cross-claim, or counterclaim
2145 against a condominium unit owner without merit and solely
2146 because such condominium unit owner has exercised the right to
2147 instruct his or her representatives or the right to petition for
2148 redress of grievances before the condominium association or the
2149 various governmental entities of this state, as protected by the
2150 First Amendment to the United States Constitution and s. 5, Art.
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2151 I of the State Constitution.
2152 (3) It is unlawful for a condominium association to fine,
2153 discriminatorily increase a unit owner's assessments,
2154 discriminatorily decrease services to a unit owner, or bring or
2155 threaten to bring an action for possession or other civil
2156 action, including a defamation, libel, slander, or tortious
2157 interference action, based on conduct described in this
2158 subsection. In order for the unit owner to raise the defense of
2159 retaliatory conduct, the unit owner must have acted in good
2160 faith and not for any improper purposes, such as to harass or to
2161 cause unnecessary delay or for frivolous purpose or needless
2162 increase in the cost of litigation. Examples of conduct for
2163 which a condominium association, an officer, a director, or an
2164 agent of an association may not retaliate include, but are not
2165 limited to, situations in which:
2166 (a) The unit owner has in good faith complained to a
2167 governmental agency charged with responsibility for enforcement
2168 of a building, housing, or health code of a suspected violation
2169 applicable to the condominium;
2170 (b) The unit owner has organized, encouraged, or
2171 participated in a unit owners' organization;
2172 (c) The unit owner submitted information or filed a
2173 complaint alleging criminal violations or violations of this
2174 chapter or the rules of the division with the division, the
2175 Office of the Condominium Ombudsman, a law enforcement agency, a
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2176 state attorney, the Attorney General, or any other governmental
2177 agency;
2178 (d) The unit owner has exercised his or her rights under
2179 this chapter;
2180 (e) The unit owner has complained to the association or
2181 any of the association's representatives for the failure to
2182 comply with this chapter or chapter 617; or
2183 (f) The unit owner has made public statements critical of
2184 the operation or management of the association.
2185 (4) Evidence of retaliatory conduct may be raised by the
2186 unit owner as a defense in any action brought against him or her
2187 for possession.
2188 (5)(3) A condominium unit owner sued by a condominium
2189 association, governmental entity, business organization, or
2190 individual in violation of this section has a right to an
2191 expeditious resolution of a claim that the suit is in violation
2192 of this section. A condominium unit owner may petition the court
2193 for an order dismissing the action or granting final judgment in
2194 favor of that condominium unit owner. The petitioner may file a
2195 motion for summary judgment, together with supplemental
2196 affidavits, seeking a determination that the condominium
2197 association's, governmental entity's, business organization's,
2198 or individual's lawsuit has been brought in violation of this
2199 section. The condominium association, governmental entity,
2200 business organization, or individual shall thereafter file its
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2201 response and any supplemental affidavits. As soon as
2202 practicable, the court shall set a hearing on the petitioner's
2203 motion, which shall be held at the earliest possible time after
2204 the filing of the condominium association's, governmental
2205 entity's, business organization's, or individual's response. The
2206 court may award the condominium unit owner sued by the
2207 condominium association, governmental entity, business
2208 organization, or individual actual damages arising from the
2209 condominium association's, governmental entity's, individual's,
2210 or business organization's violation of this section. A court
2211 may treble the damages awarded to a prevailing condominium unit
2212 owner and shall state the basis for the treble damages award in
2213 its judgment. The court shall award the prevailing party
2214 reasonable attorney's fees and costs incurred in connection with
2215 a claim that an action was filed in violation of this section.
2216 (6)(4) Condominium associations may not expend association
2217 funds in prosecuting a SLAPP suit against a condominium unit
2218 owner.
2219 (7) Condominium associations may not expend association
2220 funds in support of a defamation, libel, slander, or tortious
2221 interference action against a unit owner or any other claim
2222 against a unit owner based on conduct described in subsection
2223 (3).
2224 Section 15. Section 718.128, Florida Statutes, is amended
2225 to read:
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2226 718.128 Electronic voting.—The association may conduct
2227 elections and other unit owner votes through an Internet -based
2228 online voting system if a unit owner consents, electronically or
2229 in writing, to online voting and if the following requirements
2230 are met:
2231 (1) The association provides each unit owner with:
2232 (a) A method to authenticate the unit owner's identity to
2233 the online voting system.
2234 (b) For elections of the board, a method to transmit an
2235 electronic ballot to the online voting system that ensures the
2236 secrecy and integrity of each ballot.
2237 (c) A method to confirm, at least 14 days before the
2238 voting deadline, that the unit owner's electronic device can
2239 successfully communicate with the online voting system.
2240 (2) The association uses an online voting system that is:
2241 (a) Able to authenticate the unit owner's identity.
2242 (b) Able to authenticate the validity of each electronic
2243 vote to ensure that the vote is not altered in transit.
2244 (c) Able to transmit a receipt from the online voting
2245 system to each unit owner who casts an electronic vote.
2246 (d) For elections of the board of administration, able to
2247 permanently separate any authentication or identifying
2248 information from the electronic election ballot, rendering it
2249 impossible to tie an election ballot to a specific unit owner.
2250 (e) Able to store and keep electronic votes accessible to
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2251 election officials for recount, inspection, and review purposes.
2252 (3) A unit owner voting electronically pursuant to this
2253 section shall be counted as being in attendance at the meeting
2254 for purposes of determining a quorum. A substantive vote of the
2255 unit owners may not be taken on any issue other than the issues
2256 specifically identified in the electronic vote, when a quorum is
2257 established based on unit owners voting electronically pursuant
2258 to this section.
2259 (4) This section applies to an association that provides
2260 for and authorizes an online voting system pursuant to this
2261 section by a board resolution. If the board authorizes online
2262 voting, the board must honor a unit owner's request to vote
2263 electronically at all subsequent elections, unless such unit
2264 owner opts out of online voting. The board resolution must
2265 provide that unit owners receive notice of the opportunity to
2266 vote through an online voting system, must establish reasonable
2267 procedures and deadlines for unit owners to consent,
2268 electronically or in writing, to online voting, and must
2269 establish reasonable procedures and deadlines for unit owners to
2270 opt out of online voting after giving consent. Written notice of
2271 a meeting at which the resolution will be considered must be
2272 mailed, delivered, or electronically transmitted to the unit
2273 owners and posted conspicuously on the condominium property or
2274 association property at least 14 days before the meeting.
2275 Evidence of compliance with the 14-day notice requirement must
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2276 be made by an affidavit executed by the person providing the
2277 notice and filed with the official records of the association.
2278 (5) A unit owner's consent to online voting is val id until
2279 the unit owner opts out of online voting according to the
2280 procedures established by the board of administration pursuant
2281 to subsection (4).
2282 (6) This section may apply to any matter that requires a
2283 vote of the unit owners who are not members of a timeshare
2284 condominium association.
2285 Section 16. Effective October 1, 2024, subsections (1) and
2286 (3) of section 718.202, Florida Statutes, are amended to read:
2287 718.202 Sales or reservation deposits prior to closing. —
2288 (1) If a developer contracts to sell a condominium parcel
2289 and the construction, furnishing, and landscaping of the
2290 property submitted or proposed to be submitted to condominium
2291 ownership has not been substantially completed in accordance
2292 with the plans and specifications and representatio ns made by
2293 the developer in the disclosures required by this chapter, the
2294 developer shall pay into an escrow account all payments up to 10
2295 percent of the sale price received by the developer from the
2296 buyer towards the sale price. The escrow agent shall giv e to the
2297 purchaser a receipt for the deposit, upon request. In lieu of
2298 the foregoing concerning residential condominiums, the division
2299 director has the discretion to accept other assurances,
2300 including, but not limited to, a surety bond or an irrevocable
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2301 letter of credit in an amount equal to the escrow requirements
2302 of this section. With respect to nonresidential condominiums,
2303 the developer may deliver to the escrow agent a surety bond or
2304 an irrevocable letter of credit in an amount equivalent to the
2305 aggregate of some or all of all payments, up to 10 percent of
2306 the sale price, received by the developer from all buyers toward
2307 the sale price. In all cases, the aggregate of the initial 10
2308 percent deposits being released must be secured by a surety bond
2309 or irrevocable letter of credit in an equivalent amount. Default
2310 determinations and refund of deposits shall be governed by the
2311 escrow release provision of this subsection. Funds shall be
2312 released from escrow as follows:
2313 (a) If a buyer properly terminates the contract pursuant
2314 to its terms or pursuant to this chapter, the funds shall be
2315 paid to the buyer together with any interest earned.
2316 (b) If the buyer defaults in the performance of his or her
2317 obligations under the contract of purchase and sale, the funds
2318 shall be paid to the developer together with any interest
2319 earned.
2320 (c) If the contract does not provide for the payment of
2321 any interest earned on the escrowed funds, interest shall be
2322 paid to the developer at the closing of the transaction.
2323 (d) If the funds of a buyer have not been previously
2324 disbursed in accordance with the provisions of this subsection,
2325 they may be disbursed to the developer by the escrow agent at
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2326 the closing of the transaction, unless prior to the disbursement
2327 the escrow agent receives from the buyer written notice of a
2328 dispute between the buyer and developer.
2329 (3) If the contract for sale of the condominium unit so
2330 provides, the developer may withdraw escrow funds in excess of
2331 10 percent of the purchase price from the special account
2332 required by subsection (2) when the construction of improvements
2333 has begun. He or she may use the funds for the actual costs
2334 incurred by the developer in the construction and development of
2335 the condominium property, or the easements and rights
2336 appurtenant thereto, in which the unit to be sold is located.
2337 For purposes of this subsection, the term "actual costs"
2338 includes, but is not limited to, expenditures for demolition,
2339 site clearing, permit fees, impact fees, and utility reservation
2340 fees, as well as architectural, engineering, and surveying fees
2341 that directly relate to construction and development of the
2342 condominium property or the easements and rights appurtenant
2343 thereto. However, no part of these funds may be used for
2344 salaries, commissions, or expenses of salespersons; for
2345 advertising, marketing, or promotional purposes; or for loan
2346 fees and costs, principal and interest on loans, attorney fees,
2347 accounting fees, or insurance costs. A contract that which
2348 permits use of the advance payments for these purposes must
2349 shall include the following legend conspicuously printed or
2350 stamped in boldfaced type on the first page of the contract and
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2351 immediately above the place for the signature of the buyer: "ANY
2352 PAYMENT IN EXCESS OF 10 PERCENT OF THE PURCHASE PRICE MADE TO
2353 DEVELOPER PRIOR TO CLOSING PURSUANT TO THIS CONTRACT MAY BE USED
2354 FOR CONSTRUCTION PURPOSES BY THE DEVELOPER."
2355 Section 17. Paragraph (p) of subsection (4) of section
2356 718.301, Florida Statutes, is amended to read:
2357 718.301 Transfer of association control; claims of defect
2358 by association.—
2359 (4) At the time that unit owners other than the developer
2360 elect a majority of the members of the board of administration
2361 of an association, the developer shall relinquish control of the
2362 association, and the unit owners shall accept control.
2363 Simultaneously, or for the purposes of paragraph (c) not more
2364 than 90 days thereafter, the developer shall deliver to the
2365 association, at the developer's expense, all property of the
2366 unit owners and of the association which is held or controlled
2367 by the developer, including, but not limited to, the following
2368 items, if applicable, as to each condominium operated by the
2369 association:
2370 (p) Notwithstanding when the certificate of occupancy was
2371 issued or the height of the building, a turnover inspection
2372 report included in the official records, under seal of an
2373 architect or engineer authorized to practice in this state or a
2374 person certified as a reserve specialist or professional reserve
2375 analyst by the Community Associations Institute or the
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2376 Association of Professional Reserve Analysts, and consisting of
2377 a structural integrity reserve study attesting to required
2378 maintenance, condition, useful life, and replacement costs of
2379 the following applicable condominium property:
2380 1. Roof.
2381 2. Structure, including load-bearing walls and primary
2382 structural members and primary structural systems as those terms
2383 are defined in s. 627.706.
2384 3. Fireproofing and fire protection systems.
2385 4. Plumbing.
2386 5. Electrical systems.
2387 6. Waterproofing and exterior painting.
2388 7. Windows and exterior doors.
2389 Section 18. Subsections (4) and (5) of section 718.3027,
2390 Florida Statutes, are amended to read:
2391 718.3027 Conflicts of interest.—
2392 (4) A director or an officer, or a relative of a director
2393 or an officer, who is a party to, or has an interest in, an
2394 activity that is a possible conflict of interest, as described
2395 in subsection (1), may attend the meeting at which the activity
2396 is considered by the board and is authorized to make a
2397 presentation to the board regarding the activity. After the
2398 presentation, the director or officer, and any or the relative
2399 of the director or officer, must leave the meeting during the
2400 discussion of, and the vote on, the activity. A director or an
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2401 officer who is a party to, or has an interest in, the activity
2402 must recuse himself or herself from the vote. The attendance of
2403 a director or an officer with a possible conflict of interest at
2404 the meeting of the board is sufficient to constitute a quorum
2405 for the meeting and the vote in his or her absence on the
2406 proposed activity.
2407 (5) A contract entered into between a director or an
2408 officer, or a relative of a director or an officer, and the
2409 association, which is not a timeshare condominium association,
2410 that has not been properly disclosed as a conflict of interest
2411 or potential conflict of interest as required by this section or
2412 s. 617.0832 s. 718.111(12)(g) is voidable and terminates upon
2413 the filing of a written notice terminating the contract with the
2414 board of directors which contains the consent of at least 20
2415 percent of the voting interests of the association.
2416 Section 19. Subsection (5) of section 718.303, Florida
2417 Statutes, is amended to read:
2418 718.303 Obligations of owners and occupants; remedies. —
2419 (5) An association may suspend the voting rights of a unit
2420 owner or member due to nonpayment of any fee, fine, or other
2421 monetary obligation due to the association which is more than
2422 $1,000 and more than 90 days delinquent. Proof of such
2423 obligation must be provided to the unit owner or member 30 days
2424 before such suspension takes effect. At least 90 days before an
2425 election, an association must notify a unit owner or member that
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2426 his or her voting rights may be suspended due to a nonpayment of
2427 a fee or other monetary obligation. A voting interest or consent
2428 right allocated to a unit owner or member which has been
2429 suspended by the association shall be subtracted from the total
2430 number of voting interests in the association, which shall be
2431 reduced by the number of suspended voting interests when
2432 calculating the total percentage or number of all voting
2433 interests available to take or approve any action, and the
2434 suspended voting interests shall not be considered for any
2435 purpose, including, but not limited to, the percentage or number
2436 of voting interests necessary to constitute a quorum, the
2437 percentage or number of voting interests required to conduct an
2438 election, or the percentage or number of voting interests
2439 required to approve an action under this chapter or pursuant to
2440 the declaration, articles of incorporation, or bylaws. The
2441 suspension ends upon full payment of all obligations currently
2442 due or overdue the association. The notice and hearing
2443 requirements under subsection (3) do not apply to a suspension
2444 imposed under this subsection.
2445 Section 20. Effective October 1, 2024, section 718.407,
2446 Florida Statutes, is created to read:
2447 718.407 Condominiums created within a portion of a
2448 building or within a multiple parcel building.—
2449 (1) A condominium may be created in accordance with this
2450 section within a portion of a building or within a multiple
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2451 parcel building, as defined in s. 193.0237(1).
2452 (2) The common elements of a condominium created within a
2453 portion of a building or within a multiple parcel building are
2454 only those portions of the building submitted to the condominium
2455 form of ownership, excluding the units of such condominium.
2456 (3) The declaration of condominium that creates a
2457 condominium within a portion of a building or within a multiple
2458 parcel building, the recorded instrument that creates the
2459 multiple parcel building, and any other recorded instrument
2460 applicable under this section must specify all of the following:
2461 (a) The portions of the building which are included in the
2462 condominium and the portions of the building which are excluded.
2463 (b) The party responsible for maintaining and operating
2464 those portions of the building which are shared facilities,
2465 including, but not limited to, the roof, the exterior of the
2466 building, the windows, the balconies, the elevators, the
2467 building lobby, the corridors, the recreational amenities, and
2468 the utilities.
2469 (c)1. The manner in which the expenses for the maintenance
2470 and operation of the shared facilities will be apportioned. An
2471 owner of a portion of a building which is not submitted to the
2472 condominium form of ownership or the condominium association, as
2473 applicable to the portion of the building submitted to the
2474 condominium form of ownership, must approve any increase to the
2475 apportionment of expenses to such portion of the building. The
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2476 apportionment of the expenses for the maintenance and operation
2477 of the shared facilities may be based on any of the following
2478 criteria or any combination thereof:
2479 a. The area or volume of each portion of the building in
2480 relation to the total area or volume of the entire building,
2481 exclusive of the shared facilities.
2482 b. The initial estimated market value of each portion of
2483 the building in comparison to the total initial estimated market
2484 value of the entire building.
2485 c. The extent to which the unit owners are permitted to
2486 use various shared facilities.
2487 2. This paragraph does not preclude an alternative
2488 apportionment of expenses as long as such apportionment is
2489 stated in the declaration of condominium that creates a
2490 condominium within a portion of a building or within a multiple
2491 parcel building, the recorded instrument that creates the
2492 multiple parcel building, or any other recorded instrument
2493 applicable under this section.
2494 (d) The party responsible for collecting the shared
2495 expenses.
2496 (e) The rights and remedies that are available to enforce
2497 payment of the shared expenses.
2498 (4) The association of a condominium subject to this
2499 section may inspect and copy the books and records upon which
2500 the costs for maintaining and operating the shared facilities
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2501 are based and to receive an annual budget with respect to such
2502 costs.
2503 (5) Each contract for the sale of a unit in a condominium
2504 subject to this section must contain in conspicuous type a
2505 clause that substantially states:
2506
2507 DISCLOSURE SUMMARY
2508 THE CONDOMINIUM IN WHICH YOUR UNIT IS LOCATED IS CREATED
2509 WITHIN A PORTION OF A BUILDING OR WITHIN A MULTIPLE PARCEL
2510 BUILDING. THE COMMON ELEMENTS OF THE CONDOMINIUM CONSIST
2511 ONLY OF THE PORTIONS OF THE BUILDING SUBMITTED TO THE
2512 CONDOMINIUM FORM OF OWNERSHIP.
2513
2514 BUYER ACKNOWLEDGES ALL OF THE FOLLOWING:
2515
2516 (1) THE CONDOMINIUM MAY HAVE MINIMAL COMMON ELEMENTS.
2517 (2) PORTIONS OF THE BUILDING WHICH ARE NOT INCLUDED IN THE
2518 CONDOMINIUM ARE OR WILL BE GOVERNED BY A SEPARATE RECORDED
2519 INSTRUMENT. SUCH INSTRUMENT CONTAINS IMPORTANT PROVISIONS
2520 AND RIGHTS AND IS OR WILL BE AVAILABLE IN PUBLIC RECORDS.
2521 (3) THE PARTY THAT CONTROLS THE MAINTENANCE AND OPERATION
2522 OF THE PORTIONS OF THE BUILDING WHICH ARE NOT INCLUDED IN
2523 THE CONDOMINIUM DETERMINES THE BUDGET FOR THE OPERATION AND
2524 MAINTENANCE OF SUCH PORTIONS. HOWEVER, THE ASSOCIATION AND
2525 UNIT OWNERS ARE STILL RESPONSIBLE FOR THEIR SHARE OF SUCH
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2526 EXPENSES.
2527 (4) THE ALLOCATION BETWEEN THE UNIT OWNERS AND THE OWNERS
2528 OF THE PORTIONS OF THE BUILDING WHICH ARE NOT INCLUDED IN
2529 THE CONDOMINIUM OF THE COSTS TO MAINTAIN AND OPERATE THE
2530 BUILDING CAN BE FOUND IN THE DECLARATION OF CONDOMINIUM OR
2531 OTHER RECORDED INSTRUMENT.
2532
2533 (6) The creation of a multiple parcel building is not a
2534 subdivision of the land upon which such building is situated
2535 provided the land itself is not subdivided.
2536 Section 21. Subsections (1) and (2) of section 718.501,
2537 Florida Statutes, are amended to read:
2538 718.501 Authority, responsibility, and duties of Division
2539 of Florida Condominiums, Timeshares, and Mobile Homes.—
2540 (1) The division may enforce and ensure compliance with
2541 this chapter and rules relating to the development,
2542 construction, sale, lease, ownership, operation, and management
2543 of residential condominium units and complaints related to the
2544 procedural completion of milestone inspections under s. 553.899.
2545 In performing its duties, the division has complete jurisdiction
2546 to investigate complaints and enforce compliance with respect to
2547 associations that are still under developer control or the
2548 control of a bulk assignee or bulk buyer pursuant to part VII of
2549 this chapter and complaints against developers, bulk assignees,
2550 or bulk buyers involving improper turnover or failure to
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2551 turnover, pursuant to s. 718.301. However, after turnover has
2552 occurred, the division has jurisdiction to investigate
2553 complaints related only to:
2554 (a)1. Procedural aspects and records relating to financial
2555 issues, including annual financial reporting under s.
2556 718.111(13); assessments for common expenses, fines, and
2557 commingling of reserve and operating funds under s. 718.111(14);
2558 use of debit cards for unintended purposes under s. 718.111(15);
2559 the annual operating budget and the allocation of reserve funds
2560 under s. 718.112(2)(f); financial records under s.
2561 718.111(12)(a)11.; and any other record necessary to determine
2562 the revenues and expenses of the association.
2563 2. Elections, including election and voting requirements
2564 under s. 718.112(2)(b) and (d), recall of board members under s.
2565 718.112(2)(l), electronic voting under s. 718.128, and elections
2566 that occur during an emergency under s. 718.1265(1)(a).
2567 financial issues, elections, and
2568 3. The maintenance of and unit owner access to association
2569 records under s. 718.111(12).
2570 4. The procedural aspects of meetings, including unit
2571 owner meetings, quorums, voting requirements, proxies, board of
2572 administration meetings, and budget meetings under s.
2573 718.112(2).
2574 5. The disclosure of conflicts of interest under ss.
2575 718.111(1)(a) and 718.3027, including limitations contained in
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2576 s. 718.111(3)(f).
2577 6. The removal of a board director or officer under ss.
2578 718.111(1)(a) and (15) and 718.112(2)(p) and (q)., and
2579 7. The procedural completion of structural integrity
2580 reserve studies under s. 718.112(2)(g).
2581 8. Any written inquiries by unit owners to the association
2582 relating to such matters, including written inquiries under s.
2583 718.112(2)(a)2.
2584 (b)1.(a)1. The division may make necessary public or
2585 private investigations within or outside this state to determine
2586 whether any person has violated this chapter or any rule or
2587 order hereunder, to aid in the enforcement of this chapter, or
2588 to aid in the adoption of rules or forms.
2589 2. The division may submit any official written report,
2590 worksheet, or other related paper, or a duly certified copy
2591 thereof, compiled, prepared, drafted, or otherwise made by and
2592 duly authenticated by a financial examiner or analyst to be
2593 admitted as competent evidence in any hearing in which the
2594 financial examiner or analyst is available for cross-examination
2595 and attests under oath that such documents were prepared as a
2596 result of an examination or inspection conducted pursuant to
2597 this chapter.
2598 (c)(b) The division may require or permit any person to
2599 file a statement in writing, under oath or otherwise, as the
2600 division determines, as to the facts and circumstances
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2601 concerning a matter to be investigated.
2602 (d)(c) For the purpose of any investigation under this
2603 chapter, the division director or any officer or employee
2604 designated by the division director may administer oaths or
2605 affirmations, subpoena witnesses and compel their attendance,
2606 take evidence, and require the production of any matter which is
2607 relevant to the investigation, including the existence,
2608 description, nature, custody, condition, and location of any
2609 books, documents, or other tangible things and the identity and
2610 location of persons having knowledge of relevant facts or any
2611 other matter reasonably calculated to lead to the discovery of
2612 material evidence. Upon the failure by a person to obey a
2613 subpoena or to answer questions propounded by the investigating
2614 officer and upon reasonable notice to all affected persons, the
2615 division may apply to the circuit court for an order compelling
2616 compliance.
2617 (e)(d) Notwithstanding any remedies available to unit
2618 owners and associations, if the division has reasonable cause to
2619 believe that a violation of any provision of this chapter or
2620 related rule has occurred, the division may institute
2621 enforcement proceedings in its own name against any develo per,
2622 bulk assignee, bulk buyer, association, officer, or member of
2623 the board of administration, or its assignees or agents, as
2624 follows:
2625 1. The division may permit a person whose conduct or
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2626 actions may be under investigation to waive formal proceedings
2627 and enter into a consent proceeding whereby orders, rules, or
2628 letters of censure or warning, whether formal or informal, may
2629 be entered against the person.
2630 2. The division may issue an order requiring the
2631 developer, bulk assignee, bulk buyer, association, developer-
2632 designated officer, or developer-designated member of the board
2633 of administration, developer-designated assignees or agents,
2634 bulk assignee-designated assignees or agents, bulk buyer-
2635 designated assignees or agents, community association manager,
2636 or community association management firm to cease and desist
2637 from the unlawful practice and take such affirmative action as
2638 in the judgment of the division carry out the purposes of this
2639 chapter. If the division finds that a developer, bulk assignee,
2640 bulk buyer, association, officer, or member of the board of
2641 administration, or its assignees or agents, is violating or is
2642 about to violate any provision of this chapter, any rule adopted
2643 or order issued by the division, or any written agreement
2644 entered into with the division, and presents an immediate danger
2645 to the public requiring an immediate final order, it may issue
2646 an emergency cease and desist order reciting with particularity
2647 the facts underlying such findings. The emergency cease and
2648 desist order is effective for 90 days. If the division begins
2649 nonemergency cease and desist proceedings, the emergency cease
2650 and desist order remains effective until the conclusion of the
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2651 proceedings under ss. 120.569 and 120.57.
2652 3. If a developer, bulk assignee, or bulk buyer fails to
2653 pay any restitution determined by the division to be owed, plus
2654 any accrued interest at the highest rate permitted by law,
2655 within 30 days after expiration of any appellate time period of
2656 a final order requiring payment of restitution or the co nclusion
2657 of any appeal thereof, whichever is later, the division must
2658 bring an action in circuit or county court on behalf of any
2659 association, class of unit owners, lessees, or purchasers for
2660 restitution, declaratory relief, injunctive relief, or any other
2661 available remedy. The division may also temporarily revoke its
2662 acceptance of the filing for the developer to which the
2663 restitution relates until payment of restitution is made.
2664 4. The division may petition the court for appointment of
2665 a receiver or conservator. If appointed, the receiver or
2666 conservator may take action to implement the court order to
2667 ensure the performance of the order and to remedy any breach
2668 thereof. In addition to all other means provided by law for the
2669 enforcement of an injunction or temporary restraining order, the
2670 circuit court may impound or sequester the property of a party
2671 defendant, including books, papers, documents, and related
2672 records, and allow the examination and use of the property by
2673 the division and a court-appointed receiver or conservator.
2674 5. The division may apply to the circuit court for an
2675 order of restitution whereby the defendant in an action brought
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2676 under subparagraph 4. is ordered to make restitution of those
2677 sums shown by the division to have been obtained by t he
2678 defendant in violation of this chapter. At the option of the
2679 court, such restitution is payable to the conservator or
2680 receiver appointed under subparagraph 4. or directly to the
2681 persons whose funds or assets were obtained in violation of this
2682 chapter.
2683 6. The division may impose a civil penalty against a
2684 developer, bulk assignee, or bulk buyer, or association, or its
2685 assignee or agent, for any violation of this chapter or related
2686 rule. The division may impose a civil penalty individually
2687 against an officer or board member who willfully and knowingly
2688 violates this chapter, an adopted rule, or a final order of the
2689 division; may order the removal of such individual as an officer
2690 or from the board of administration or as an officer of the
2691 association; and may prohibit such individual from serving as an
2692 officer or on the board of a community association for a period
2693 of time. The term "willfully and knowingly" means that the
2694 division informed the officer or board member that his or her
2695 action or intended action violates this chapter, a rule adopted
2696 under this chapter, or a final order of the division and that
2697 the officer or board member refused to comply with the
2698 requirements of this chapter, a rule adopted under this chapter,
2699 or a final order of the division. The division, before
2700 initiating formal agency action under chapter 120, must afford
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2701 the officer or board member an opportunity to voluntarily
2702 comply, and an officer or board member who complies within 10
2703 days is not subject to a civil penalty. A penalty may be imposed
2704 on the basis of each day of continuing violation, but the
2705 penalty for any offense may not exceed $5,000. The division
2706 shall adopt, by rule, penalty guidelines applicable to possible
2707 violations or to categories of violations of this chapter or
2708 rules adopted by the division. The guidelines must specify a
2709 meaningful range of civil penalties for each such violation of
2710 the statute and rules and must be based upon the harm caused by
2711 the violation, upon the repetition of the violation, and upon
2712 such other factors deemed relevant by the division. For example,
2713 the division may consider whether the violations were committed
2714 by a developer, bulk assignee, or bulk buyer, or owner-
2715 controlled association, the size of the association, and other
2716 factors. The guidelines must designate the possible mitigating
2717 or aggravating circumstances that justify a departure from the
2718 range of penalties provided by the rules. It is the legislative
2719 intent that minor violations be distinguished from those which
2720 endanger the health, safety, or welfare of the condominium
2721 residents or other persons and that such guidelines provide
2722 reasonable and meaningful notice to the public of likely
2723 penalties that may be imposed for proscribed conduct. This
2724 subsection does not limit the ability of the division to
2725 informally dispose of administrative actions or complaints by
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2726 stipulation, agreed settlement, or consent order. All amounts
2727 collected shall be deposited with the Chief Financial Officer to
2728 the credit of the Division of Florida Condominiums, Timeshares,
2729 and Mobile Homes Trust Fund. If a developer, bulk assignee, or
2730 bulk buyer fails to pay the civil penalty and the amount deemed
2731 to be owed to the association, the division shall issue an order
2732 directing that such developer, bulk assignee, or bulk buyer
2733 cease and desist from further operation until such time as the
2734 civil penalty is paid or may pursue enforcement of the penalty
2735 in a court of competent jurisdiction. If an association fails to
2736 pay the civil penalty, the division shall pursue enforc ement in
2737 a court of competent jurisdiction, and the order imposing the
2738 civil penalty or the cease and desist order is not effective
2739 until 20 days after the date of such order. Any action commenced
2740 by the division shall be brought in the county in which the
2741 division has its executive offices or in the county in which
2742 where the violation occurred.
2743 7. If a unit owner presents the division with proof that
2744 the unit owner has requested access to official records in
2745 writing by certified mail, and that after 10 days the unit owner
2746 again made the same request for access to official records in
2747 writing by certified mail, and that more than 10 days has
2748 elapsed since the second request and the association has still
2749 failed or refused to provide access to official records as
2750 required by this chapter, the division shall issue a subpoena
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2751 requiring production of the requested records at the location in
2752 which where the records are kept pursuant to s. 718.112. Upon
2753 receipt of the records, the division must provide to the unit
2754 owner who was denied access to such records the produced
2755 official records without charge.
2756 8. In addition to subparagraph 6., the division may seek
2757 the imposition of a civil penalty through the circuit court for
2758 any violation for which the division may issue a notice to show
2759 cause under paragraph (t) (r). The civil penalty shall be at
2760 least $500 but no more than $5,000 for each violation. The court
2761 may also award to the prevailing party court costs and
2762 reasonable attorney fees and, if the division prevails, may also
2763 award reasonable costs of investigation.
2764 9. The division may issue citations and promulgate rules
2765 to provide for citation bases and citation procedures in
2766 accordance with this paragraph.
2767 (f)(e) The division may prepare and disseminate a
2768 prospectus and other information to assist prospective owners,
2769 purchasers, lessees, and developers of residential condominiums
2770 in assessing the rights, privileges, and duties pertaining
2771 thereto.
2772 (g)(f) The division may adopt rules to administer and
2773 enforce this chapter.
2774 (h)(g) The division shall establish procedures for
2775 providing notice to an association and the developer, bulk
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2776 assignee, or bulk buyer during the period in which the
2777 developer, bulk assignee, or bulk buyer controls the association
2778 if the division is considering the issuance of a declaratory
2779 statement with respect to the declaration of condominium or any
2780 related document governing such condominium community.
2781 (i)(h) The division shall furnish each association that
2782 pays the fees required by paragraph (2)(a) a copy of this
2783 chapter, as amended, and the rules adopted thereto on an annual
2784 basis.
2785 (j)(i) The division shall annually provide each
2786 association with a summary of declaratory statements and formal
2787 legal opinions relating to the operations of condominiums which
2788 were rendered by the division during the previous year.
2789 (k)(j) The division shall provide training and educational
2790 programs for condominium association board members and unit
2791 owners. The training may, in the division's discretio n, include
2792 web-based electronic media and live training and seminars in
2793 various locations throughout the state. The division may review
2794 and approve education and training programs for board members
2795 and unit owners offered by providers and shall maintain a
2796 current list of approved programs and providers and make such
2797 list available to board members and unit owners in a reasonable
2798 and cost-effective manner. The division shall provide the
2799 division-approved provider with the template certificate for
2800 issuance directly to the association's board of directors who
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2801 have satisfactorily completed the requirements under s.
2802 718.112(2)(d). The division shall adopt rules to implement this
2803 section.
2804 (l)(k) The division shall maintain a toll-free telephone
2805 number accessible to condominium unit owners.
2806 (m)(l) The division shall develop a program to certify
2807 both volunteer and paid mediators to provide mediation of
2808 condominium disputes. The division shall provide, upon request,
2809 a list of such mediators to any association, unit owner, or
2810 other participant in alternative dispute resolution proceedings
2811 under s. 718.1255 requesting a copy of the list. The division
2812 shall include on the list of volunteer mediators only the names
2813 of persons who have received at least 20 hours of training in
2814 mediation techniques or who have mediated at least 20 disputes.
2815 In order to become initially certified by the division, paid
2816 mediators must be certified by the Supreme Court to mediate
2817 court cases in county or circuit courts. However, the division
2818 may adopt, by rule, additional factors for the certification of
2819 paid mediators, which must be related to experience, education,
2820 or background. Any person initially certified as a paid mediator
2821 by the division must, in order to continue to be certified,
2822 comply with the factors or requirements adopted by rule.
2823 (n)(m) If a complaint is made, the division must conduct
2824 its inquiry with due regard for the interests of the affected
2825 parties. Within 30 days after receipt of a complaint, the
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2826 division shall acknowledge the complaint in writing and notify
2827 the complainant whether the complaint is within the jurisdiction
2828 of the division and whether additional information is needed by
2829 the division from the complainant. The division shall conduct
2830 its investigation and, within 90 days after receipt of the
2831 original complaint or of timely requested additional
2832 information, take action upon the complaint. However, the
2833 failure to complete the investigation within 90 days does not
2834 prevent the division from continuing the investigation,
2835 accepting or considering evidence obtained or received after 90
2836 days, or taking administrative action if reasonable cause exists
2837 to believe that a violation of this chapter or a rule has
2838 occurred. If an investigation is not completed within the time
2839 limits established in this paragraph, the division shall, on a
2840 monthly basis, notify the complainant in writing of the status
2841 of the investigation. When reporting its action to the
2842 complainant, the division shall inform the complainant of any
2843 right to a hearing under ss. 120.569 and 120.57. The division
2844 may adopt rules regarding the submission of a complaint against
2845 an association.
2846 (o)(n) Condominium association directors, officers, and
2847 employees; condominium developers; bulk assignees, bulk buyers,
2848 and community association managers; and community association
2849 management firms have an ongoing duty to reasonably cooperate
2850 with the division in any investigation under this section. The
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2851 division shall refer to local law enforcement authorities any
2852 person whom the division believes has altered, destroyed,
2853 concealed, or removed any record, document, or thing required to
2854 be kept or maintained by this chapter with the purpose to impair
2855 its verity or availability in the department's investigation.
2856 The division shall refer to local law enforcement authorities
2857 any person whom the division believes has engaged in fraud,
2858 theft, embezzlement, or other criminal activity or when the
2859 division has cause to believe that fraud, theft, embezzlement,
2860 or other criminal activity has occurred.
2861 (p) The division director or any officer or employee of
2862 the division and the condominium ombudsman or any employee of
2863 the Office of the Condominium Ombudsman may attend and observe
2864 any meeting of the board of administration or any unit owner
2865 meeting, including any meeting of a subcommittee or special
2866 committee, which is open to members of the association for the
2867 purpose of performing the duties of the division or the Office
2868 of the Condominium Ombudsman under this chapter.
2869 (q)(o) The division may:
2870 1. Contract with agencies in this state or other
2871 jurisdictions to perform investigative functions; or
2872 2. Accept grants-in-aid from any source.
2873 (r)(p) The division shall cooperate with similar agencies
2874 in other jurisdictions to establish uniform filing procedures
2875 and forms, public offering statements, advertising standards,
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2876 and rules and common administrative practices.
2877 (s)(q) The division shall consider notice to a developer,
2878 bulk assignee, or bulk buyer to be complete when it is delivered
2879 to the address of the developer, bulk assignee, or bulk buyer
2880 currently on file with the division.
2881 (t)(r) In addition to its enforcement authority, the
2882 division may issue a notice to show cause, which must provide
2883 for a hearing, upon written request, in accordance with chapter
2884 120.
2885 (u) If the division receives a complaint regarding access
2886 to official records on the association's website or through an
2887 application that can be downloaded on a mobile device under s.
2888 718.111(12)(g), the division may request access to the
2889 association's website or application and investigate. The
2890 division may adopt rules to carry out this paragraph.
2891 (v)(s) The division shall submit to the Governor, the
2892 President of the Senate, the Speaker of the House of
2893 Representatives, and the chairs of the legislative
2894 appropriations committees an annual report that includes, but
2895 need not be limited to, the number of training programs provided
2896 for condominium association board members and unit owners, the
2897 number of complaints received by type, the number and percent of
2898 complaints acknowledged in writing within 30 days and the number
2899 and percent of investigations acted upon within 90 days in
2900 accordance with paragraph (n) (m), and the number of
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2901 investigations exceeding the 90-day requirement. The annual
2902 report must also include an evaluation of the division's core
2903 business processes and make recommendations for improvements,
2904 including statutory changes. After December 31, 2024, the
2905 division must include a list of the associations that have
2906 completed the structural integrity reserve study required under
2907 s. 718.112(2)(g). The report shall be submitted by September 30
2908 following the end of the fiscal year.
2909 (2)(a) Each condominium association that which operates
2910 more than two units shall pay to the division an annual fee in
2911 the amount of $4 for each residential unit in condominiums
2912 operated by the association. If the fee is not paid by March 1,
2913 the association shall be assessed a penalty of 10 percent of the
2914 amount due, and the association will not have standing to
2915 maintain or defend any action in the courts of this state until
2916 the amount due, plus any penalty, is paid.
2917 (b) All fees shall be deposited in the Division of Florida
2918 Condominiums, Timeshares, and Mobile Homes Trust Fund as
2919 provided by law.
2920 (c) On the certification form provided by the division,
2921 the directors of the association shall certify that each
2922 director of the association has completed the written
2923 certification and educational certificate requirements in s.
2924 718.112(2)(d)4.b. This certification requirement does not apply
2925 to the directors of an association governing a timeshare
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2926 condominium.
2927 Section 22. Subsection (2) of section 718.5011, Florida
2928 Statutes, is amended to read:
2929 718.5011 Ombudsman; appointment; administration.—
2930 (2) The secretary of the Department of Business and
2931 Professional Regulation Governor shall appoint the ombudsman.
2932 The ombudsman must be an attorney admitted to practice before
2933 the Florida Supreme Court and shall serve at the pleasure of the
2934 Governor. A vacancy in the office shall be filled in the same
2935 manner as the original appointment. An officer or full-time
2936 employee of the ombudsman's office may not actively engage in
2937 any other business or profession that directly or indirectly
2938 relates to or conflicts with his or her work in the ombudsman's
2939 office; serve as the representative of any political party,
2940 executive committee, or other governing body of a political
2941 party; serve as an executive, officer, or employee of a
2942 political party; receive remuneration for activities on behalf
2943 of any candidate for public office; or engage in soliciting
2944 votes or other activities on behalf of a candidate for public
2945 office. The ombudsman or any employee of his or her office may
2946 not become a candidate for election to public office unless he
2947 or she first resigns from his or her office or employment.
2948 Section 23. Effective October 1, 2024, paragraphs (a) and
2949 (d) of subsection (2) and subsection (3) of section 718.503,
2950 Florida Statutes, are amended to read:
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2951 718.503 Developer disclosure prior to sale; nondeveloper
2952 unit owner disclosure prior to sale; voidability.—
2953 (2) NONDEVELOPER DISCLOSURE.—
2954 (a) Each unit owner who is not a developer as defined by
2955 this chapter must comply with this subsection before the sale of
2956 his or her unit. Each prospective purchaser who has entered into
2957 a contract for the purchase of a condominium unit is entitled,
2958 at the seller's expense, to a current copy of all of the
2959 following:
2960 1. The declaration of condominium.
2961 2. Articles of incorporation of the association.
2962 3. Bylaws and rules of the association.
2963 4. An annual financial statement and annual budget of the
2964 condominium association Financial information required by s.
2965 718.111.
2966 5. A copy of the inspector-prepared summary of the
2967 milestone inspection report as described in s. 553.899, if
2968 applicable.
2969 6. The association's most recent structural integrity
2970 reserve study or a statement that the association has not
2971 completed a structural integrity reserve study.
2972 7. A copy of the inspection report described in s.
2973 718.301(4)(p) and (q) for a turnover inspection performed on or
2974 after July 1, 2023.
2975 8. The document entitled "Frequently Asked Questions and
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2976 Answers" required by s. 718.504.
2977 (d) Each contract entered into after July 1, 1992, for the
2978 resale of a residential unit shall contain in conspicuous type
2979 either:
2980 1. A clause which states: THE BUYER HEREBY ACKNOWLEDGES
2981 THAT BUYER HAS BEEN PROVIDED A CURRENT COPY OF THE DECLARATION
2982 OF CONDOMINIUM, ARTICLES OF INCORPORATION OF THE ASSOCIATION,
2983 BYLAWS AND RULES OF THE ASSOCIATION, AND A COPY OF THE MOST
2984 RECENT ANNUAL FINANCIAL STATEMENT AND ANNUAL BUDGET, YEAR-END
2985 FINANCIAL INFORMATION AND FREQUENTLY ASKED QUESTIONS AND ANSWERS
2986 DOCUMENT MORE THAN 3 DAYS, EXCLUDING SATURDAYS, SUNDAYS, AND
2987 LEGAL HOLIDAYS, PRIOR TO EXECUTION OF THIS CONTRACT; or
2988 2. A clause which states: THIS AGREEMENT IS VOIDABLE BY
2989 BUYER BY DELIVERING WRITTEN NOTICE OF THE BUYER'S INTENTION TO
2990 CANCEL WITHIN 3 DAYS, EXCLUDING SATURDAYS, SUNDAYS, AND LEGAL
2991 HOLIDAYS, AFTER THE DATE OF EXECUTION OF THIS AGREEMENT BY THE
2992 BUYER AND RECEIPT BY BUYER OF A CURRENT COPY OF THE DECLARATION
2993 OF CONDOMINIUM, ARTICLES OF INCORPORATION, BYLAWS AND RULES OF
2994 THE ASSOCIATION, A COPY OF THE MOST RECENT ANNUAL FINANCIAL
2995 STATEMENT AND ANNUAL BUDGET, AND A COPY OF THE MOST RECENT YEAR-
2996 END FINANCIAL INFORMATION AND FREQUENTLY ASKED QUESTIONS AND
2997 ANSWERS DOCUMENT IF SO REQUESTED IN WRITING. ANY PURPORTED
2998 WAIVER OF THESE VOIDABILITY RIGHTS SHALL BE OF NO EFFECT. BUYER
2999 MAY EXTEND THE TIME FOR CLOSING FOR A PERIOD OF NOT MORE THAN 3
3000 DAYS, EXCLUDING SATURDAYS, SUNDAYS, AND LEGAL HOLIDAYS, AFTER
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3001 THE BUYER RECEIVES THE DECLARATION, ARTICLES OF INCORPORATION,
3002 BYLAWS AND RULES OF THE ASSOCIATION, AND A COPY OF THE MOST
3003 RECENT YEAR-END FINANCIAL INFORMATION AND FREQUENTLY ASKED
3004 QUESTIONS AND ANSWERS DOCUMENT IF REQUESTED IN WRITING. BUYER'S
3005 RIGHT TO VOID THIS AGREEMENT SHALL TERMINATE AT CLOSING.
3006
3007 A contract that does not conform to the requirements of this
3008 paragraph is voidable at the option of the purchaser prior to
3009 closing.
3010 (3) OTHER DISCLOSURES DISCLOSURE.—
3011 (a) If residential condominium parcels are offered for
3012 sale or lease prior to completion of construction of the units
3013 and of improvements to the common elements, or prior to
3014 completion of remodeling of previously occupied buildings, the
3015 developer must shall make available to each prospective
3016 purchaser or lessee, for his or her inspection at a place
3017 convenient to the site, a copy of the complete plans and
3018 specifications for the construction or remodeling of the unit
3019 offered to him or her and of the improvements to the common
3020 elements appurtenant to the unit.
3021 (b) Sales brochures, if any, must shall be provided to
3022 each purchaser, and the following caveat in conspicuous type
3023 must shall be placed on the inside front cover or on the first
3024 page containing text material of the sales brochure, or
3025 otherwise conspicuously displayed: "ORAL REPRESENTATIONS CANNOT
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3026 BE RELIED UPON AS CORRECTLY STATING REPRESENTATIONS OF THE
3027 DEVELOPER. FOR CORRECT REPRESENTATIONS, MAKE REFERENCE TO THIS
3028 BROCHURE AND TO THE DOCUMENTS REQUIRED BY SECTION 718.503,
3029 FLORIDA STATUTES, TO BE FURNISHED BY A DEVELOPER TO A BUYER OR
3030 LESSEE." If timeshare estates have been or may be created with
3031 respect to any unit in the condominium, the sales brochure must
3032 shall contain the following statement in conspicuous type:
3033 "UNITS IN THIS CONDOMINIUM ARE SUBJECT TO TIMESHARE ESTATES. "
3034 (c) If a unit is located within a condominium that is
3035 created within a portion of a building or within a multiple
3036 parcel building, the developer or nondeveloper unit owner must
3037 provide the disclosures required by s. 718.407(5).
3038 Section 24. Effective October 1, 2024, section 718.504,
3039 Florida Statutes, is amended to read:
3040 718.504 Prospectus or offering circular.—Every developer
3041 of a residential condominium which contains more than 20
3042 residential units, or which is part of a group of residential
3043 condominiums which will be served by property to be used in
3044 common by unit owners of more than 20 residential units, shall
3045 prepare a prospectus or offering circular and file it with the
3046 Division of Florida Condominiums, Timeshares, and Mobile Homes
3047 prior to entering into an enforceable contract of purchase and
3048 sale of any unit or lease of a unit for more than 5 years and
3049 shall furnish a copy of the prospectus or offering circular to
3050 each buyer. In addition to the prospectus or offering circular,
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3051 each buyer shall be furnished a separate page entitled
3052 "Frequently Asked Questions and Answers," which shall be in
3053 accordance with a format approved by the division and a copy of
3054 the financial information required by s. 718.111. This page
3055 shall, in readable language, inform prospective purchasers
3056 regarding their voting rights and unit use restrictions,
3057 including restrictions on the leasing of a unit; shall indicate
3058 whether and in what amount the unit owners or the association is
3059 obligated to pay rent or land use fees for recreation al or other
3060 commonly used facilities; shall contain a statement identifying
3061 that amount of assessment which, pursuant to the budget, would
3062 be levied upon each unit type, exclusive of any special
3063 assessments, and which shall further identify the basis upon
3064 which assessments are levied, whether monthly, quarterly, or
3065 otherwise; shall state and identify any court cases in which the
3066 association is currently a party of record in which the
3067 association may face liability in excess of $100,000; shall
3068 state whether the condominium is created within a portion of a
3069 building or within a multiple parcel building; and which shall
3070 further state whether membership in a recreational facilities
3071 association is mandatory, and if so, shall identify the fees
3072 currently charged per unit type. The division shall by rule
3073 require such other disclosure as in its judgment will assist
3074 prospective purchasers. The prospectus or offering circular may
3075 include more than one condominium, although not all such units
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3076 are being offered for sale as of the date of the prospectus or
3077 offering circular. The prospectus or offering circular must
3078 contain the following information:
3079 (1) The front cover or the first page must contain only:
3080 (a) The name of the condominium.
3081 (b) The following statements in conspicuous type:
3082 1. THIS PROSPECTUS (OFFERING CIRCULAR) CONTAINS IMPORTANT
3083 MATTERS TO BE CONSIDERED IN ACQUIRING A CONDOMINIUM UNIT.
3084 2. THE STATEMENTS CONTAINED HEREIN ARE ONLY SUMMARY IN
3085 NATURE. A PROSPECTIVE PURCHASER SHOULD REFER TO ALL REFERENCES,
3086 ALL EXHIBITS HERETO, THE CONTRACT DOCUMENTS, AND SALES
3087 MATERIALS.
3088 3. ORAL REPRESENTATIONS CANNOT BE RELIED UPON AS CORRECTLY
3089 STATING THE REPRESENTATIONS OF THE DEVELOPER. REFER TO THIS
3090 PROSPECTUS (OFFERING CIRCULAR) AND ITS EXHIBITS FOR CORRECT
3091 REPRESENTATIONS.
3092 (2) Summary: The next page must contain all statements
3093 required to be in conspicuous type in the prospectus or offering
3094 circular.
3095 (3) A separate index of the contents and exhibits of the
3096 prospectus.
3097 (4) Beginning on the first page of the text (not including
3098 the summary and index), a description of the condominium,
3099 including, but not limited to, the following information:
3100 (a) Its name and location.
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3101 (b) A description of the condominium property, including,
3102 without limitation:
3103 1. The number of buildings, the number of units in each
3104 building, the number of bathrooms and bedrooms in each unit, and
3105 the total number of units, if the condominium is not a phase
3106 condominium, or the maximum number of buildings that may be
3107 contained within the condominium, the minimum and maximum
3108 numbers of units in each building, the minimum and maximum
3109 numbers of bathrooms and bedrooms that may be contained in each
3110 unit, and the maximum number of units that may be contained
3111 within the condominium, if the condominium is a phase
3112 condominium.
3113 2. The page in the condominium documents where a copy of
3114 the plot plan and survey of the condominium is located.
3115 3. The estimated latest date of completion of
3116 constructing, finishing, and equipping. In lieu of a date, the
3117 description shall include a statement that the estimated date of
3118 completion of the condominium is in the purchase agreement and a
3119 reference to the article or paragraph containing that
3120 information.
3121 (c) The maximum number of units that will use facilities
3122 in common with the condominium. If the maximum number of units
3123 will vary, a description of the basis for variation and the
3124 minimum amount of dollars per unit to be spent for additional
3125 recreational facilities or enlargement of such facilities. If
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3126 the addition or enlargement of facilities will result in a
3127 material increase of a unit owner's maintenance expense or
3128 rental expense, if any, the maximum increase and limitations
3129 thereon shall be stated.
3130 (5)(a) A statement in conspicuous type describing whether
3131 the condominium is created and being sold as fee simple
3132 interests or as leasehold interests. If the condominium is
3133 created or being sold on a leasehold, the location of the lease
3134 in the disclosure materials shall be stated.
3135 (b) If timeshare estates are or may be created with
3136 respect to any unit in the condominium, a statement in
3137 conspicuous type stating that timeshare estates are created and
3138 being sold in units in the condominium.
3139 (6) A description of the recreational and other commonly
3140 used facilities that will be used only by unit owners of the
3141 condominium, including, but not limited to, the following:
3142 (a) Each room and its intended purposes, location,
3143 approximate floor area, and capacity in numbers of people.
3144 (b) Each swimming pool, as to its general location,
3145 approximate size and depths, approximate deck size and capacity,
3146 and whether heated.
3147 (c) Additional facilities, as to the number of each
3148 facility, its approximate location, approximate size, and
3149 approximate capacity.
3150 (d) A general description of the items of personal
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3151 property and the approximate number of each item of personal
3152 property that the developer is committing to furnish for each
3153 room or other facility or, in the alternative, a representation
3154 as to the minimum amount of expenditure that will be made to
3155 purchase the personal property for the facility.
3156 (e) The estimated date when each room or other facility
3157 will be available for use by the unit owners.
3158 (f)1. An identification of each room or other facility to
3159 be used by unit owners that will not be owned by the unit owners
3160 or the association;
3161 2. A reference to the location in the disclosure materials
3162 of the lease or other agreements providing for the use of those
3163 facilities; and
3164 3. A description of the terms of the lease or other
3165 agreements, including the length of the term; the rent payable,
3166 directly or indirectly, by each unit owner, and the total rent
3167 payable to the lessor, stated in monthly and annual amounts for
3168 the entire term of the lease; and a description of any option to
3169 purchase the property leased under any such lease, including the
3170 time the option may be exercised, the purchase price or how it
3171 is to be determined, the manner of payment, and whether the
3172 option may be exercised for a unit owner's share or only as to
3173 the entire leased property.
3174 (g) A statement as to whether the developer may provide
3175 additional facilities not described above; their general
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3176 locations and types; improvements or changes that may be made;
3177 the approximate dollar amount to be expended; and the maximum
3178 additional common expense or cost to the individual unit owners
3179 that may be charged during the first annual period of operation
3180 of the modified or added facilities.
3181
3182 Descriptions as to locations, areas, capacities, numbers,
3183 volumes, or sizes may be stated as approximations or minimums.
3184 (7) A description of the recreational and other facilities
3185 that will be used in common with other condominiums, community
3186 associations, or planned developments which require the payment
3187 of the maintenance and expenses of such facilities, directly or
3188 indirectly, by the unit owners. The description shall include,
3189 but not be limited to, the following:
3190 (a) Each building and facility committed to be built and a
3191 summary description of the structural integrity of each building
3192 for which reserves are required pursuant to s. 718.112(2)(g).
3193 (b) Facilities not committed to be built except under
3194 certain conditions, and a statement of those conditions or
3195 contingencies.
3196 (c) As to each facility committed to be built, or which
3197 will be committed to be built upon the happening of one of the
3198 conditions in paragraph (b), a statement of whether it will be
3199 owned by the unit owners having the use thereof or by an
3200 association or other entity which will be controlled by them, or
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3201 others, and the location in the exhibits of the lease or other
3202 document providing for use of those facilities.
3203 (d) The year in which each facility will be available for
3204 use by the unit owners or, in the alternative, the maximum
3205 number of unit owners in the project at the time each of all of
3206 the facilities is committed to be completed.
3207 (e) A general description of the items of personal
3208 property, and the approximate number of each item of personal
3209 property, that the developer is committing to furnish for each
3210 room or other facility or, in the alternative, a representation
3211 as to the minimum amount of expenditure that will be made to
3212 purchase the personal property for the facility.
3213 (f) If there are leases, a description thereof, including
3214 the length of the term, the rent payable, and a description of
3215 any option to purchase.
3216
3217 Descriptions shall include location, areas, capacities, numbers,
3218 volumes, or sizes and may be stated as approximations or
3219 minimums.
3220 (8) Recreation lease or associated club membership:
3221 (a) If any recreational facilities or other facilities
3222 offered by the developer and available to, or to be used by,
3223 unit owners are to be leased or have club membership associated,
3224 the following statement in conspicuous type shall be included:
3225 "THERE IS A RECREATIONAL FACILITIES LEASE ASSOCIATED WITH THIS
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3226 CONDOMINIUM; or, THERE IS A CLUB MEMBERSHIP ASSOCIATED WITH THIS
3227 CONDOMINIUM." There shall be a reference to the location in the
3228 disclosure materials where the recreation lease or club
3229 membership is described in detail.
3230 (b) If it is mandatory that unit owners pay a fee, rent,
3231 dues, or other charges under a recreational facilities lease or
3232 club membership for the use of facilities, there shall be in
3233 conspicuous type the applicable statement:
3234 1. MEMBERSHIP IN THE RECREATIONAL FACILITIES CLUB IS
3235 MANDATORY FOR UNIT OWNERS; or
3236 2. UNIT OWNERS ARE REQUIRED, AS A CONDITION OF OWNERSHIP,
3237 TO BE LESSEES UNDER THE RECREATIONAL FACILITIES LEASE; or
3238 3. UNIT OWNERS ARE REQUIRED TO PAY THEIR SHARE OF THE
3239 COSTS AND EXPENSES OF MAINTENANCE, MANAGEMENT, UPKEEP,
3240 REPLACEMENT, RENT, AND FEES UNDER THE RECREATIONAL FACILITIES
3241 LEASE (OR THE OTHER INSTRUMENTS PROVIDING THE FACILITIES); or
3242 4. A similar statement of the nature of the organization
3243 or the manner in which the use rights are created, and that unit
3244 owners are required to pay.
3245
3246 Immediately following the applicable statement, the location in
3247 the disclosure materials where the development is described in
3248 detail shall be stated.
3249 (c) If the developer, or any other person other than the
3250 unit owners and other persons having use rights in the
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3251 facilities, reserves, or is entitled to receive, any rent, fee,
3252 or other payment for the use of the facilities, then there shall
3253 be the following statement in conspicuous type: "THE UNIT OWNERS
3254 OR THE ASSOCIATION(S) MUST PAY RENT OR LAND USE FEES FOR
3255 RECREATIONAL OR OTHER COMMONLY USED FACILITIES." Immediately
3256 following this statement, the location in the disclosure
3257 materials where the rent or land use fees are descr ibed in
3258 detail shall be stated.
3259 (d) If, in any recreation format, whether leasehold, club,
3260 or other, any person other than the association has the right to
3261 a lien on the units to secure the payment of assessments, rent,
3262 or other exactions, there shall appear a statement in
3263 conspicuous type in substantially the following form:
3264 1. THERE IS A LIEN OR LIEN RIGHT AGAINST EACH
3265 UNIT TO SECURE THE PAYMENT OF RENT AND OTHER EXACTIONS
3266 UNDER THE RECREATION LEASE. THE UNIT OWNER'S FAILURE
3267 TO MAKE THESE PAYMENTS MAY RESULT IN FORECLOSURE OF
3268 THE LIEN; or
3269 2. THERE IS A LIEN OR LIEN RIGHT AGAINST EACH
3270 UNIT TO SECURE THE PAYMENT OF ASSESSMENTS OR OTHER
3271 EXACTIONS COMING DUE FOR THE USE, MAINTENANCE, UPKEEP,
3272 OR REPAIR OF THE RECREATIONAL OR COMMONLY USED
3273 FACILITIES. THE UNIT OWNER'S FAILURE TO MAKE THESE
3274 PAYMENTS MAY RESULT IN FORECLOSURE OF THE LIEN.
3275
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3276 Immediately following the applicable statement, the location in
3277 the disclosure materials where the lien or lien right is
3278 described in detail shall be stated.
3279 (9) If the developer or any other person has the right to
3280 increase or add to the recreational facilities at any time after
3281 the establishment of the condominium whose unit owners have use
3282 rights therein, without the consent of the unit owners or
3283 associations being required, there shall appear a statement in
3284 conspicuous type in substantially the following form:
3285 "RECREATIONAL FACILITIES MAY BE EXPANDED OR ADDED WITHOUT
3286 CONSENT OF UNIT OWNERS OR THE ASSOCIATION(S)." Immediately
3287 following this statement, the location in the disclosure
3288 materials where such reserved rights are described shall be
3289 stated.
3290 (10) A statement of whether the developer's plan includes
3291 a program of leasing units rather than selling them, or leasing
3292 units and selling them subject to such leases. If so, there
3293 shall be a description of the plan, including the number and
3294 identification of the units and the provisions and term of the
3295 proposed leases, and a statement in boldfaced type that: "THE
3296 UNITS MAY BE TRANSFERRED SUBJECT TO A LEASE."
3297 (11) The arrangements for management of the association
3298 and maintenance and operation of the condominium property and of
3299 other property that will serve the unit owners of the
3300 condominium property, and a description of the management
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3301 contract and all other contracts for these purposes having a
3302 term in excess of 1 year, including the following:
3303 (a) The names of contracting parties.
3304 (b) The term of the contract.
3305 (c) The nature of the services included.
3306 (d) The compensation, stated on a monthly and annual
3307 basis, and provisions for increases in the compensation.
3308 (e) A reference to the volumes and pages of the
3309 condominium documents and of the exhibits containing copies of
3310 such contracts.
3311
3312 Copies of all described contracts shall be attached as exhibits.
3313 If there is a contract for the management of the condominium
3314 property, then a statement in conspicuous type in substantially
3315 the following form shall appear, identifying the proposed or
3316 existing contract manager: "THERE IS (IS TO BE) A CONTRACT FOR
3317 THE MANAGEMENT OF THE CONDOMINIUM PROPERTY WITH (NAME OF THE
3318 CONTRACT MANAGER)." Immediately following this statement, the
3319 location in the disclosure materials of the contract for
3320 management of the condominium property shall be stated.
3321 (12) If the developer or any other person or persons other
3322 than the unit owners has the right to retain control of the
3323 board of administration of the association for a period of time
3324 which can exceed 1 year after the closing of the sale of a
3325 majority of the units in that condominium to persons other than
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3326 successors or alternate developers, then a statement in
3327 conspicuous type in substantially the following form shall be
3328 included: "THE DEVELOPER (OR OTHER PERSON) HAS THE RIGHT TO
3329 RETAIN CONTROL OF THE ASSOCIATION AFTER A MAJORITY OF THE UNITS
3330 HAVE BEEN SOLD." Immediately following this statement, the
3331 location in the disclosure materials where this right to control
3332 is described in detail shall be stated.
3333 (13) If there are any restrictions upon the sale,
3334 transfer, conveyance, or leasing of a unit, then a statement in
3335 conspicuous type in substantially the following form shall be
3336 included: "THE SALE, LEASE, OR TRANSFER OF UNITS IS RESTRICTED
3337 OR CONTROLLED." Immediately following this statement, the
3338 location in the disclosure materials where the restriction,
3339 limitation, or control on the sale, lease, or transfer of units
3340 is described in detail shall be stated.
3341 (14) If the condominium is part of a phase project, the
3342 following information shall be stated:
3343 (a) A statement in conspicuous type in substantially the
3344 following form: "THIS IS A PHASE CONDOMINIUM. ADDITIONAL LAND
3345 AND UNITS MAY BE ADDED TO THIS CONDOMINIUM." Immediately
3346 following this statement, the location in the disclosure
3347 materials where the phasing is described shall be stated.
3348 (b) A summary of the provisions of the declaration which
3349 provide for the phasing.
3350 (c) A statement as to whether or not residential buildings
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3351 and units which are added to the condominium may be
3352 substantially different from the residential buildings and units
3353 originally in the condominium. If the added residential
3354 buildings and units may be substantially different, there shall
3355 be a general description of the extent to which such added
3356 residential buildings and units may differ, and a statem ent in
3357 conspicuous type in substantially the following form shall be
3358 included: "BUILDINGS AND UNITS WHICH ARE ADDED TO THE
3359 CONDOMINIUM MAY BE SUBSTANTIALLY DIFFERENT FROM THE OTHER
3360 BUILDINGS AND UNITS IN THE CONDOMINIUM." Immediately following
3361 this statement, the location in the disclosure materials where
3362 the extent to which added residential buildings and units may
3363 substantially differ is described shall be stated.
3364 (d) A statement of the maximum number of buildings
3365 containing units, the maximum and minimum numbers of units in
3366 each building, the maximum number of units, and the minimum and
3367 maximum square footage of the units that may be contained within
3368 each parcel of land which may be added to the condominium.
3369 (15) If a condominium created on or after July 1, 2000, is
3370 or may become part of a multicondominium, the following
3371 information must be provided:
3372 (a) A statement in conspicuous type in substantially the
3373 following form: "THIS CONDOMINIUM IS (MAY BE) PART OF A
3374 MULTICONDOMINIUM DEVELOPMENT IN WHICH OTHER CONDOMINIUMS WILL
3375 (MAY) BE OPERATED BY THE SAME ASSOCIATION." Immediately
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3376 following this statement, the location in the prospectus or
3377 offering circular and its exhibits where the multicondominium
3378 aspects of the offering are described must be stated.
3379 (b) A summary of the provisions in the declaration,
3380 articles of incorporation, and bylaws which establish and
3381 provide for the operation of the multicondominium, including a
3382 statement as to whether unit owners in the condominium will have
3383 the right to use recreational or other facilities located or
3384 planned to be located in other condominiums operated by the same
3385 association, and the manner of sharing the common expenses
3386 related to such facilities.
3387 (c) A statement of the minimum and maximum number of
3388 condominiums, and the minimum and maximum number of units in
3389 each of those condominiums, which will or may be operated by the
3390 association, and the latest date by which the exact number will
3391 be finally determined.
3392 (d) A statement as to whether any of the condominiums in
3393 the multicondominium may include units intended to be used for
3394 nonresidential purposes and the purpose or purposes permitted
3395 for such use.
3396 (e) A general description of the location and approximate
3397 acreage of any land on which any additional condominiums to be
3398 operated by the association may be located.
3399 (16) If the condominium is created by conversion of
3400 existing improvements, the following information shall be
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3401 stated:
3402 (a) The information required by s. 718.616.
3403 (b) A caveat that there are no express warranties unless
3404 they are stated in writing by the developer.
3405 (17) A summary of the restrictions, if any, to be imposed
3406 on units concerning the use of any of the condominium property,
3407 including statements as to whether there are restrictions upon
3408 children and pets, and reference to the volumes and pages of the
3409 condominium documents where such restrictions are found, or if
3410 such restrictions are contained elsewhere, then a copy of the
3411 documents containing the restrictions shall be attached as an
3412 exhibit.
3413 (18) If there is any land that is offered by the developer
3414 for use by the unit owners and that is neither owned by them nor
3415 leased to them, the association, or any entity controlled by
3416 unit owners and other persons having the use rights to such
3417 land, a statement shall be made as to how such land will serve
3418 the condominium. If any part of such land will serve the
3419 condominium, the statement shall describe the land and the
3420 nature and term of service, and the declaration or other
3421 instrument creating such servitude shall be included as an
3422 exhibit.
3423 (19) The manner in which utility and other services,
3424 including, but not limited to, sewage and waste disposal, water
3425 supply, and storm drainage, will be provided and the person or
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3426 entity furnishing them.
3427 (20) An explanation of the manner in which the
3428 apportionment of common expenses and ownership of the common
3429 elements has been determined.
3430 (21) An estimated operating budget for the condominium and
3431 the association, and a schedule of the unit owner's expenses
3432 shall be attached as an exhibit and shall contain the following
3433 information:
3434 (a) The estimated monthly and annual expenses of the
3435 condominium and the association that are collected from unit
3436 owners by assessments.
3437 (b) The estimated monthly and annual expenses of each unit
3438 owner for a unit, other than common expenses paid by all unit
3439 owners, payable by the unit owner to persons or entities other
3440 than the association, as well as to the association, including
3441 fees assessed pursuant to s. 718.113(1) for maintenance of
3442 limited common elements where such costs are shared only by
3443 those entitled to use the limited common element, and the total
3444 estimated monthly and annual expense. There may be excluded from
3445 this estimate expenses which are not provided for or
3446 contemplated by the condominium documents, including, but not
3447 limited to, the costs of private telephone; maintenance of the
3448 interior of condominium units, which is not the obligation of
3449 the association; maid or janitorial services privately
3450 contracted for by the unit owners; utility bills billed directly
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3451 to each unit owner for utility services to his or her unit;
3452 insurance premiums other than those incurred for policies
3453 obtained by the condominium; and similar personal expen ses of
3454 the unit owner. A unit owner's estimated payments for
3455 assessments shall also be stated in the estimated amounts for
3456 the times when they will be due.
3457 (c) The estimated items of expenses of the condominium and
3458 the association, except as excluded under paragraph (b),
3459 including, but not limited to, the following items, which shall
3460 be stated as an association expense collectible by assessments
3461 or as unit owners' expenses payable to persons other than the
3462 association:
3463 1. Expenses for the association and condominium:
3464 a. Administration of the association.
3465 b. Management fees.
3466 c. Maintenance.
3467 d. Rent for recreational and other commonly used
3468 facilities.
3469 e. Taxes upon association property.
3470 f. Taxes upon leased areas.
3471 g. Insurance.
3472 h. Security provisions.
3473 i. Other expenses.
3474 j. Operating capital.
3475 k. Reserves for all applicable items referenced in s.
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3476 718.112(2)(g).
3477 l. Fees payable to the division.
3478 2. Expenses for a unit owner:
3479 a. Rent for the unit, if subject to a lease.
3480 b. Rent payable by the unit owner directly to the lessor
3481 or agent under any recreational lease or lease for the use of
3482 commonly used facilities, which use and payment is a mandatory
3483 condition of ownership and is not included in the common expense
3484 or assessments for common maintenance paid by the unit owners to
3485 the association.
3486 (d) The following statement in conspicuous type:
3487
3488 THE BUDGET CONTAINED IN THIS OFFERING CIRCULAR HAS
3489 BEEN PREPARED IN ACCORDANCE WITH THE CONDOMINIUM ACT
3490 AND IS A GOOD FAITH ESTIMATE ONLY AND REPRESENTS AN
3491 APPROXIMATION OF FUTURE EXPENSES BASED ON FACTS AND
3492 CIRCUMSTANCES EXISTING AT THE TIME OF ITS PREPARATION.
3493 ACTUAL COSTS OF SUCH ITEMS MAY EXCEED THE ESTIMATED
3494 COSTS. SUCH CHANGES IN COST DO NOT CONSTITUTE MATERIAL
3495 ADVERSE CHANGES IN THE OFFERING.
3496
3497 (e) Each budget for an association prepared by a developer
3498 consistent with this subsection shall be prepared in good faith
3499 and shall reflect accurate estimated amounts for the required
3500 items in paragraph (c) at the time of the filing of the offering
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3501 circular with the division, and subsequent increased amounts of
3502 any item included in the association's estimated budget that are
3503 beyond the control of the developer shall not be considered an
3504 amendment that would give rise to rescission rights set forth in
3505 s. 718.503(1)(a) or (b), nor shall such increases modify, void,
3506 or otherwise affect any guarantee of the developer contained in
3507 the offering circular or any purchase contract. It is the intent
3508 of this paragraph to clarify existing law.
3509 (f) The estimated amounts shall be stated for a period of
3510 at least 12 months and may distinguish between the period prior
3511 to the time unit owners other than the developer elect a
3512 majority of the board of administration and the period after
3513 that date.
3514 (22) A schedule of estimated closing expenses to be paid
3515 by a buyer or lessee of a unit and a statement of whether title
3516 opinion or title insurance policy is available to the buyer and,
3517 if so, at whose expense.
3518 (23) The identity of the developer and the chief operating
3519 officer or principal directing the creation and sale of the
3520 condominium and a statement of its and his or her experience in
3521 this field.
3522 (24) Copies of the following, to the extent they are
3523 applicable, shall be included as exhibits:
3524 (a) The declaration of condominium, or the proposed
3525 declaration if the declaration has not been recorded.
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3526 (b) The articles of incorporation creating the
3527 association.
3528 (c) The bylaws of the association.
3529 (d) The ground lease or other underlying lease of the
3530 condominium.
3531 (e) The management agreement and all maintenance and other
3532 contracts for management of the association and operation of the
3533 condominium and facilities used by the unit owners having a
3534 service term in excess of 1 year.
3535 (f) The estimated operating budget for the condominium,
3536 the required schedule of unit owners' expenses, and the
3537 association's most recent structural integrity reserve study or
3538 a statement that the association has not completed a structural
3539 integrity reserve study.
3540 (g) A copy of the floor plan of the unit and the plot plan
3541 showing the location of the residential buildings and the
3542 recreation and other common areas.
3543 (h) The lease of recreational and other facilities that
3544 will be used only by unit owners of the subject condominium.
3545 (i) The lease of facilities used by owners and others.
3546 (j) The form of unit lease, if the offer is of a
3547 leasehold.
3548 (k) A declaration of servitude of properties serving the
3549 condominium but not owned by unit owners or leased to them or
3550 the association.
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3551 (l) The statement of condition of the existing building or
3552 buildings, if the offering is of units in an operation being
3553 converted to condominium ownership.
3554 (m) The statement of inspection for termite damage and
3555 treatment of the existing improvements, if the condominium is a
3556 conversion.
3557 (n) The form of agreement for sale or lease of units.
3558 (o) A copy of the agreement for escrow of payments made to
3559 the developer prior to closing.
3560 (p) A copy of the documents containing any restrictions on
3561 use of the property required by subsection (17).
3562 (q) A copy of the inspector-prepared summary of the
3563 milestone inspection report as described in ss. 553.899 and
3564 718.301(4)(p), as applicable.
3565 (25) Any prospectus or offering circular complying, prior
3566 to the effective date of this act, with the provisions of former
3567 ss. 711.69 and 711.802 may continue to be used without amendment
3568 or may be amended to comply with this chapter.
3569 (26) A brief narrative description of the location and
3570 effect of all existing and intended easements located or to be
3571 located on the condominium property other than those described
3572 in the declaration.
3573 (27) If the developer is required by state or local
3574 authorities to obtain acceptance or approval of any dock or
3575 marina facilities intended to serve the condominium, a copy of
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3576 any such acceptance or approval acquired by the time of filing
3577 with the division under s. 718.502(1) or a statement that such
3578 acceptance or approval has not been acquired or received.
3579 (28) Evidence demonstrating that the developer has an
3580 ownership, leasehold, or contractual interest in the land upon
3581 which the condominium is to be developed.
3582 Section 25. Paragraph (k) of subsection (1) of section
3583 719.106, Florida Statutes, is amended to read:
3584 719.106 Bylaws; cooperative ownership.—
3585 (1) MANDATORY PROVISIONS.—The bylaws or other cooperative
3586 documents shall provide for the following, and if they do not,
3587 they shall be deemed to include the following:
3588 (k) Structural integrity reserve study.—
3589 1. A residential cooperative association must have a
3590 structural integrity reserve study completed at least every 10
3591 years for each building on the cooperative property that is
3592 three stories or higher in height, as determined by the Florida
3593 Building Code, that includes, at a minimum, a study of the
3594 following items as related to the structural integrity and
3595 safety of the building:
3596 a. Roof.
3597 b. Structure, including load-bearing walls and other
3598 primary structural members and primary structural sys tems as
3599 those terms are defined in s. 627.706.
3600 c. Fireproofing and fire protection systems.
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3601 d. Plumbing.
3602 e. Electrical systems.
3603 f. Waterproofing and exterior painting.
3604 g. Windows and exterior doors.
3605 h. Any other item that has a deferred maintenance expense
3606 or replacement cost that exceeds $10,000 and the failure to
3607 replace or maintain such item negatively affects the items
3608 listed in sub-subparagraphs a.-g., as determined by the visual
3609 inspection portion of the structural integrity reserve study.
3610 2. A structural integrity reserve study is based on a
3611 visual inspection of the cooperative property. A structural
3612 integrity reserve study may be performed by any person qualified
3613 to perform such study. However, the visual inspection portion of
3614 the structural integrity reserve study must be performed or
3615 verified by an engineer licensed under chapter 471, an architect
3616 licensed under chapter 481, or a person certified as a reserve
3617 specialist or professional reserve analyst by the Community
3618 Associations Institute or the Association of Professional
3619 Reserve Analysts.
3620 3. At a minimum, a structural integrity reserve study must
3621 identify each item of the cooperative property being visually
3622 inspected, state the estimated remaining useful life and the
3623 estimated replacement cost or deferred maintenance expense of
3624 each item of the cooperative property being visually inspected,
3625 and provide a reserve funding schedule with a recommended annual
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3626 reserve amount that achieves the estimated replacement cost or
3627 deferred maintenance expense of each item of cooperative
3628 property being visually inspected by the end of the estimated
3629 remaining useful life of the item. The structural integrity
3630 reserve study may recommend that reserves do not need to be
3631 maintained for any item for which an estimate of useful life and
3632 an estimate of replacement cost cannot be determined, or the
3633 study may recommend a deferred maintenance expense amount for
3634 such item. The structural integrity reserve study may recommend
3635 that reserves for replacement costs do not need to be maintained
3636 for any item with an estimated remaining useful life of greater
3637 than 25 years, but the study may recommend a deferred
3638 maintenance expense amount for such item.
3639 4. This paragraph does not apply to buildings less than
3640 three stories in height; single-family, two-family, or three-
3641 family dwellings with three or fewer habitable stories above
3642 ground; any portion or component of a building that has not been
3643 submitted to the cooperative form of ownership; or any portion
3644 or component of a building that is maintained by a party other
3645 than the association.
3646 5. Before a developer turns over control of an association
3647 to unit owners other than the developer, the developer must have
3648 a turnover inspection report in compliance with s. 719.301(4 )(p)
3649 and (q) for each building on the cooperative property that is
3650 three stories or higher in height.
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3651 6. Associations existing on or before July 1, 2022, which
3652 are controlled by unit owners other than the developer, must
3653 have a structural integrity reserve study completed by December
3654 31, 2024, for each building on the cooperative property that is
3655 three stories or higher in height. An association that is
3656 required to complete a milestone inspection on or before
3657 December 31, 2026, in accordance with s. 553.899 may complete
3658 the structural integrity reserve study simultaneously with the
3659 milestone inspection. In no event may the structural integrity
3660 reserve study be completed after December 31, 2026.
3661 7. If the milestone inspection required by s. 553.899, or
3662 an inspection completed for a similar local requirement, was
3663 performed within the past 5 years and meets the requirements of
3664 this paragraph, such inspection may be used in place of the
3665 visual inspection portion of the structural integrity reserve
3666 study.
3667 8. If the officers or directors of an association
3668 willfully and knowingly fail to complete a structural integrity
3669 reserve study pursuant to this paragraph, such failure is a
3670 breach of an officer's and director's fiduciary relationship to
3671 the unit owners under s. 719.104(9).
3672 9. Within 45 days after receiving the structural integrity
3673 reserve study, the association must distribute a copy of the
3674 study to each unit owner or deliver to each unit owner a notice
3675 that the completed study is available for inspection and copying
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3676 upon a written request. Distribution of a copy of the study or
3677 notice must be made by United States mail or personal delivery
3678 at the mailing address, property address, or any other address
3679 of the owner provided to fulfill the association's noti ce
3680 requirements under this chapter, or by electronic transmission
3681 to the e-mail address or facsimile number provided to fulfill
3682 the association's notice requirements to unit owners who
3683 previously consented to receive notice by electronic
3684 transmission.
3685 10. Within 45 days after receiving the structural
3686 integrity reserve study, the association must provide the
3687 division with a statement indicating that the study was
3688 completed and that the association provided or made available
3689 such study to each unit owner in accordance with this section.
3690 Such statement must be provided to the division in the manner
3691 established by the division using a form posted on the
3692 division's website.
3693 Section 26. Section 719.129, Florida Statutes, is amended
3694 to read:
3695 719.129 Electronic voting.—The association may conduct
3696 elections and other unit owner votes through an Internet -based
3697 online voting system if a unit owner consents, electronically or
3698 in writing, to online voting and if the following requirements
3699 are met:
3700 (1) The association provides each unit owner with:
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3701 (a) A method to authenticate the unit owner's identity to
3702 the online voting system.
3703 (b) For elections of the board, a method to transmit an
3704 electronic ballot to the online voting system that ensures the
3705 secrecy and integrity of each ballot.
3706 (c) A method to confirm, at least 14 days before the
3707 voting deadline, that the unit owner's electronic device can
3708 successfully communicate with the online voting system.
3709 (2) The association uses an online voting system that is:
3710 (a) Able to authenticate the unit owner's identity.
3711 (b) Able to authenticate the validity of each electronic
3712 vote to ensure that the vote is not altered in transit.
3713 (c) Able to transmit a receipt from the online voting
3714 system to each unit owner who casts an electronic vote.
3715 (d) For elections of the board of administration, able to
3716 permanently separate any authentication or identifying
3717 information from the electronic election ballot, rendering it
3718 impossible to tie an election ballot to a specific unit owner.
3719 (e) Able to store and keep electronic votes accessible to
3720 election officials for recount, inspection, and review purposes.
3721 (3) A unit owner voting electronically pursuant to this
3722 section shall be counted as being in attendance at the meeti ng
3723 for purposes of determining a quorum. A substantive vote of the
3724 unit owners may not be taken on any issue other than the issues
3725 specifically identified in the electronic vote, when a quorum is
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3726 established based on unit owners voting electronically pursu ant
3727 to this section.
3728 (4) This section applies to an association that provides
3729 for and authorizes an online voting system pursuant to this
3730 section by a board resolution. If the board authorizes online
3731 voting, the board must honor a unit owner's request to vote
3732 electronically at all subsequent elections, unless such unit
3733 owner opts out of online voting. The board resolution must
3734 provide that unit owners receive notice of the opportunity to
3735 vote through an online voting system, must establish reasonable
3736 procedures and deadlines for unit owners to consent,
3737 electronically or in writing, to online voting, and must
3738 establish reasonable procedures and deadlines for unit owners to
3739 opt out of online voting after giving consent. Written notice of
3740 a meeting at which the resolution will be considered must be
3741 mailed, delivered, or electronically transmitted to the unit
3742 owners and posted conspicuously on the condominium property or
3743 association property at least 14 days before the meeting.
3744 Evidence of compliance with the 14-day notice requirement must
3745 be made by an affidavit executed by the person providing the
3746 notice and filed with the official records of the association.
3747 (5) A unit owner's consent to online voting is valid until
3748 the unit owner opts out of online voting pursuant to the
3749 procedures established by the board of administration pursuant
3750 to subsection (4).
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3751 (6) This section may apply to any matter that requires a
3752 vote of the unit owners who are not members of a timeshare
3753 cooperative association.
3754 Section 27. Paragraph (p) of subsection (4) of section
3755 719.301, Florida Statutes, is amended to read:
3756 719.301 Transfer of association control.—
3757 (4) When unit owners other than the developer elect a
3758 majority of the members of the board of administration of an
3759 association, the developer shall relinquish control of the
3760 association, and the unit owners shall accept control.
3761 Simultaneously, or for the purpose of paragraph (c) not more
3762 than 90 days thereafter, the developer shall deliver to the
3763 association, at the developer's expense, all property of the
3764 unit owners and of the association held or controlled by the
3765 developer, including, but not limited to, the following items,
3766 if applicable, as to each cooperative operated by the
3767 association:
3768 (p) Notwithstanding when the certificate of occupancy was
3769 issued or the height of the building, a turnover inspection
3770 report included in the official records, under seal of an
3771 architect or engineer authorized to practice in this state or a
3772 person certified as a reserve specialist or professional reserve
3773 analyst by the Community Associations Institute or the
3774 Association of Professional Reserve Analysts, consisting of a
3775 structural integrity reserve study attesting to required
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3776 maintenance, condition, useful life, and replacement costs o f
3777 the following applicable cooperative property:
3778 1. Roof.
3779 2. Structure, including load-bearing walls and primary
3780 structural members and primary structural systems as those terms
3781 are defined in s. 627.706.
3782 3. Fireproofing and fire protection systems.
3783 4. Plumbing.
3784 5. Electrical systems.
3785 6. Waterproofing and exterior painting.
3786 7. Windows and exterior doors.
3787 Section 28. The Division of Florida Condominiums,
3788 Timeshares, and Mobile Homes of the Department of Business and
3789 Professional Regulation shall complete a review of the website
3790 or application requirements for official records under s.
3791 718.111(12)(g), Florida Statutes, and make recommendations
3792 regarding any additional official records of a condominium
3793 association that should be included in the record maintenance
3794 requirements in the statute. The division shall submit to the
3795 Governor, the President of the Senate, and the Speaker of the
3796 House of Representatives the findings of its review by January
3797 1, 2025.
3798 Section 29. By January 1, 2025, the Division of Florida
3799 Condominiums, Timeshares, and Mobile Homes of the Department of
3800 Business and Professional Regulation shall create a database on
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3801 its website of the associations that have reported the
3802 completion of the structural integrity reserve study under ss.
3803 718.112(2)(g) and 719.106(1)(k), Florida Statutes.
3804 Section 30. For the 2024-2025 fiscal year, the sums of
3805 $6,122,390 in recurring and $1,293,879 in nonrecurring funds
3806 from the General Revenue Fund are appropriated to the Department
3807 of Business and Professional Regulation, and 65 full-time
3808 equivalent positions with associated salary rate of 3,180,319
3809 are authorized, for the purpose of implementing this act.
3810 Section 31. The amendments made to ss. 718.103(14) and
3811 718.202(3) and s. 718.407(1), (2), and (6), Florida Statutes, as
3812 created by this act, are intended to clarify existing law and
3813 shall apply retroactively. However, such amendments do not
3814 revive or reinstate any right or interest that has been fully
3815 and finally adjudicated as invalid before October 1, 2024.
3816 Section 32. The Florida Building Commission shall perform
3817 a study on standards to prevent water intrusion through the
3818 tracks of sliding glass doors, including the consideration of
3819 devices designed to further prevent such water intrusion. By
3820 December 1, 2024, the Florida Building Commission must provide a
3821 written report of its recommendations to the Governor, the
3822 President of the Senate, the Speaker of the House of
3823 Representatives, and the chairs of the legislative
3824 appropriations committees and appropriate substantive committees
3825 with jurisdiction over chapter 718, Florida Statutes.
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3826 Section 33. Except as otherwise expressly provided in this
3827 act, this act shall take effect July 1, 2024.
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