Bill > S1742

Introduced Session

An act relating to condominium and cooperative associations; amending s. 468.432, F.S.; prohibiting a person whose community association manager license is revoked from having an indirect or direct ownership interest in, or being an employee, a partner, an officer, a director, or a trustee of, a community association management firm for a specified timeframe; requiring a licensee to create and maintain an online licensure account with the Department of Business and Professional Regulation; requiring a community association manager to identify on his or her online licensure account certain information; requiring a licensee to provide specific information on his or her online licensure account; requiring that such information be updated within a specified timeframe; requiring a community association management firm to identify on its online licensure account the community association managers that it employs to provide community association management services; requiring the department to give written notice to the community association management firm and the community association if the community association manager has his or her license suspended or revoked; amending s. 468.4334, F.S.; prohibiting a community association manager or a community association management firm from knowingly performing any act directed by the community association if such act violates any state or federal law; revising the contractual obligations a community association manager or a community association management firm has with the association board; requiring that such contract include a certain statement, if applicable to the type of management services provided in the contract; prohibiting such contracts from waiving or limiting certain professional practice standards; requiring a community association to include specified information on its website or mobile application, if such association is required to maintain official records on a website or an application; conforming provisions to changes made by the act; amending s. 468.4335, F.S.; revising what constitutes a rebuttable presumption of a conflict of interest with a community association manager or a community association management firm; defining the term “compensation”; requiring an association to solicit multiple bids from other third-party providers if a bid that exceeds a specified amount is or may reasonably be construed to be a conflict of interest; providing applicability; deleting a requirement that all contracts and transactional documents related to a proposed activity that is a conflict of interest be attached to the meeting agenda of the next board of administration meeting; requiring the notice of the board meeting to include certain information about the proposed activity that is a conflict of interest; deleting a requirement that the proposed activity be disclosed at the next regular or special meeting of the members; providing that a contract is voidable if certain findings are made; providing specifications for terminating a contract; making technical changes; amending s. 553.899, F.S.; requiring the local enforcement agency responsible for milestone inspections to provide to the Department of Business and Professional Regulation certain information in an electronic format; specifying the information to be provided to the department; requiring the department to contract with the University of Florida for the creation of a report that provides certain information on milestone inspections during a specified timeframe; requiring a local enforcement agency to provide the university with certain information; authorizing the university to request any additional information from a local enforcement agency required to complete the report; requiring the university to compile the report and the department to transmit the report to the Governor and the Legislature; requiring, rather than authorizing, the board of county commissioners or a municipal governing body to adopt a specified ordinance; requiring specified professionals who bid to perform a milestone inspection to disclose to the association in writing their intent to bid on services related to any maintenance, repair, or replacement that may be recommended by the milestone inspection; prohibiting such professionals from having any interest in or being related to any person having any interest in the firm or entity providing the association’s milestone inspection unless such relationship is disclosed in writing; defining the term “relative”; providing that a contract for services is voidable and terminates upon the association filing a written notice terminating such a contract if such professionals fail to provide a written disclosure of such relationship with the firm conducting the milestone inspection; providing that such professionals may be subject to discipline for failure to provide such written disclosure; amending s. 718.103, F.S.; revising the definition of the term “alternative funding method”; defining the term “video conference”; amending s. 718.111, F.S.; requiring a community association manager or a community association management firm that contracts with a community association to possess specific licenses; providing that all board members or officers of a community association that contracts with a community association manager or a community association management firm have a duty to ensure that the community association manager or community association management firm is properly licensed before entering into a contract; authorizing a community association to terminate a contract with a community association manager or a community association management firm if the manager’s or management firm’s license is suspended or revoked during the term of the contract; providing that a community association may terminate a contract with a community association management firm if such firm has its license suspended or revoked, effective upon the date of the license suspension or revocation; requiring every condominium association to have adequate property insurance; deleting specified required coverage; providing that the amount of adequate insurance coverage may be based on the replacement cost of the property to be insured, as determined by an independent insurance appraisal or previous appraisal; requiring that such replacement cost be determined according to a specified timeframe; providing that an association’s obligation to obtain and provide adequate property insurance may be satisfied by obtaining and maintaining insurance coverage sufficient to cover a specified amount; revising which items constitute the official records of the association; requiring that certain documents be posted on certain associations’ websites or made available for download through an application on a mobile device within a specified timeframe; revising which documents must be posted in digital format on the association’s website or application; revising the timeframe in which the association must deliver a copy of the most recent financial report or a notice that a copy of the most recent financial report will be distributed; revising the methods of delivery for a copy of the most recent association financial report to include electronic delivery via the Internet; requiring that an officer or a director execute an affidavit as evidence of compliance with the delivery requirement; revising how financial reports are prepared; requiring an association board to use best efforts to make prudent investment decisions in fulfilling its duty to manage operating and reserve funds of the association; authorizing an association, including a multicondominium association, to invest reserve funds in specified financial institutions; authorizing such associations to place reserve funds in other investments upon a majority vote of the voting interests of the association; providing restrictions; prohibiting any funds not identified as reserve funds from being used for investments; requiring a board to create an investment committee composed of a specified minimum number of board members; requiring the board to adopt rules; requiring that all meetings of the investment committee be recorded and made part of the official records of the association; requiring that the investment policy statement developed pursuant to certain provisions address specified issues; requiring the investment committee to recommend investment advisers to the board; requiring the board to select one of the recommended investment advisers to provide services to the association; requiring that such advisers be registered; prohibiting an investment adviser from being related to any board member, community management company, reserve study provider, or co owner of a unit with a board member or investment committee member; requiring investment advisers to comply with the prudent investor rule; requiring an adviser to act as a fiduciary to the association; providing that the investment and fiduciary standards required by the act take precedence over any conflicting law; requiring the investment committee to recommend a replacement adviser if the committee determines that an investment adviser is not meeting requirements; requiring the association to provide the investment adviser with specified financial information at least once each calendar year, or sooner if a substantial financial obligation of the association becomes known to the board; requiring the investment adviser to annually review such financial information and provide the association with a portfolio allocation model that is suitably structured and prudently designed to match projected annual reserve fund requirements and liability, assets, and liquidity requirements; requiring the investment adviser to prepare a funding projection for each reserve component, including any of the component’s redundancies; requiring that a specified minimum timeframe of projected reserves in cash or cash equivalents be available to the association; authorizing a portfolio managed by an investment adviser to contain any type of investment necessary to meet the objectives in the investment policy statement; providing exceptions; requiring that any funds invested by the investment adviser be held in third-party custodial accounts that are subject to insurance coverage by the Securities Investor Protection Corporation in an amount equal to or greater than the invested amount; authorizing the investment adviser to withdraw investment fees, expenses, and commissions from invested funds; requiring the investment adviser to annually provide the association with a written certification of compliance with certain provisions and provide the association with a list of certain stocks, securities, and other obligations; requiring the investment adviser to submit monthly, quarterly, and annual reports to the association, prepared in accordance with established financial industry standards; requiring that any principal, earnings, or interest managed be available to the association at no cost within a specified timeframe after the association’s written or electronic request; requiring that unallocated income earned on reserve fund investments be spent only on specified expenditures; amending s. 718.112, F.S.; authorizing an association board meeting to be conducted in person or by video conference; requiring the Division of Florida Condominiums, Timeshares, and Mobile Homes to adopt rules; requiring that notice for board meetings conducted via video conference contain specific information; requiring that such meetings be recorded and maintained as an official record of the association; revising how notice may be sent to unit owners; revising the distance from the condominium property within which a unit owner meeting must be held; authorizing a unit owner to vote electronically if the unit owner meeting is conducted via video conference; authorizing unit owner meetings to be conducted in person or via video conference; specifying what constitutes a quorum for meetings held via video conference; requiring that the location of the meeting be provided in the association bylaws or within a specified distance from, or within the same county of, the condominium property if the bylaws are silent as to the location; requiring that meetings held via video conference be recorded and be maintained as an official record of the association; requiring the division to adopt rules; revising the method of serving notices of unit owner meetings; authorizing budget meetings to be conducted via video conference; requiring the division to adopt rules; requiring that a sound transmitting device be used at such meetings for a specified purpose; revising a provision that a board proposing a budget that requires a certain special assessment against unit owners to simultaneously propose a substitute budget that meets certain requirements, rather than conduct a special meeting of the unit owners to consider a substitute budget after the adoption of the annual budget; requiring unit owners, rather than authorizing them, to consider a substitute budget; authorizing the annual budget initially proposed to be adopted by the board; revising the criteria used in determining whether assessments exceed the specified percentage of assessments of the previous fiscal year; revising the threshold for deferred maintenance expenses or replacements in reserve accounts; authorizing the members to vote to waive the maintenance of reserves recommended in the most recent structural integrity reserve study under certain circumstances; revising the provision that any association, rather than an association operating a multicondominium, may determine to provide no reserves or less reserves than required if an alternative funding method is used by the association; deleting the requirement that the division approve the funding method; providing that specified reserves may be funded by regular assessments, special assessments, lines of credit, or loans under certain circumstances; authorizing a unit owner-controlled association that is required to have a structural reserve study to obtain a line of credit or a loan to fund capital expenses required by a milestone inspection or a structural integrity reserve study; requiring that such line of credit or loan be approved by a majority of the total voting interests of the association; requiring that such line of credit or loan be sufficient to fund the cumulative amount of any previously waived or unfunded portions of the reserve funding amount and the most recent structural integrity reserve study; requiring that funding from the line of credit or loan be immediately available for access by the board for a specified purpose; requiring that such lines of credit or loans be included in the association’s financial report; providing applicability; deleting a requirement that the majority of the members must approve of the board pausing contributions to the association’s reserves for a specified purpose; authorizing the board to temporarily pause reserve fund contributions or reduce the amount of reserve funding for a specified purpose for a budget adopted on or before a specified date if the association has completed a milestone inspection within a specified timeframe and such inspection recommended certain repairs; requiring that such temporary pause or reduction be approved by a majority of the total voting interests of the association; providing applicability; requiring associations that have paused or reduced their reserve funding to have a structural integrity reserve study performed before the continuation of reserve contributions for specified purposes; providing that a vote of the members is not required for the board to change the accounting method for reserves to specified accounting methods; requiring the division to annually adjust for inflation the minimum threshold amount for required reserves, based on specified criteria; requiring the division, by a specified date and annually thereafter, to conspicuously post on its website the inflation adjusted minimum threshold amount for required reserves; revising the items to be included in a structural integrity reserve study; requiring specified design professionals or contractors who bid to perform a structural integrity reserve study to disclose in writing to the association their intent to bid on any services related to the maintenance, repair, or replacement that may be recommended by the structural integrity reserve study; prohibiting such professionals or contractors from having any interest in or being related to any person having any interest in the firm or entity providing the association’s structural integrity reserve study unless such relationship is disclosed in writing; defining the term “relative”; providing that a contract for services is voidable and terminates upon the association filing a written notice terminating such a contract if such professional or contractor fails to provide a written disclosure of such relationship with the firm conducting the structural integrity reserve study; providing that such professional or contractor may be subject to discipline for his or her failure to provide such written disclosure; requiring that a structural integrity reserve study include a recommendation for a reserve funding schedule based on specified criteria; authorizing the study to recommend other types of reserve funding schedules, provided each recommended schedule is sufficient to meet the association’s maintenance obligations; requiring that reserves not required for certain items be separately identified as such in the structural integrity reserve study; requiring the structural integrity reserve study to take into consideration the funding method or methods used by the association to fund its maintenance and reserve funding obligations through regular assessments, special assessments, lines of credit, or loans; requiring a structural integrity reserve study that has been performed before the approval of a special assessment or the securing of a line of credit or a loan to be updated to reflect certain information regarding the reserve funding schedule; authorizing a structural integrity reserve study to be updated to reflect changes in the useful life of the reserve items after such items are repaired or replaced, and the effect such repair or replacement will have on the reserve funding schedule; requiring an association to obtain an updated structural integrity reserve study before adopting any budget in which the reserve funding from regular assessments, special assessments, lines of credit, or loans do not align with the funding plan from the most recent version of the structural integrity reserve study; authorizing an association to delay a required structural integrity reserve study for a specified timeframe if it has completed a milestone inspection or similar inspection, for a specified purpose; requiring an officer or director of an association to sign an affidavit acknowledging receipt of the completed structural integrity reserve study; requiring the division to adopt rules for the form for the structural integrity reserve study in coordination with the Florida Building Commission; making technical changes; amending s. 718.501, F.S.; revising the duties of the Division of Florida Condominiums, Timeshares, and Mobile Homes regarding investigation of complaints; requiring condominium associations to create and maintain an online account with the division; requiring board members to maintain accurate contact information on file with the division; requiring the division to adopt rules; requiring all condominium associations to create and maintain an online account with the division; requiring all condominium associations to provide specified information to the division by a specified date; requiring that such information be updated within a specified timeframe; requiring the division to adopt rules; authorizing the division to require condominium associations to provide information to the division; specifying the information to be provided to the division; amending s. 718.503, F.S.; revising the disclosures that must be included in a contract for the sale and resale of a residential unit; amending s. 8 of chapter 2024-244, Laws of Florida, as amended; revising the documents required to be posted on certain associations’ websites or be made available through download using an application on a mobile device; amending s. 31 of chapter 2024-244, Laws of Florida; revising applicability; amending s. 719.104, F.S.; requiring a board to use best efforts to make prudent investment decisions in fulfilling its duty to manage operating and reserve funds of the cooperative association; authorizing an association to invest reserve funds in specified financial institutions; authorizing such associations to place reserve funds in other investments upon a majority vote of the voting interests of the association; providing restrictions; prohibiting any funds not identified as reserve funds from being used for investments; providing applicability; requiring a board to create an investment committee composed of a specified minimum number of board members; requiring the board to adopt rules; requiring that all meetings of the investment committee be recorded and made part of the official records of the association; requiring that the investment policy statement developed pursuant to certain provisions address specified issues; requiring the investment committee to recommend investment advisers to the board; requiring the board to select one of the recommended investment advisers to provide services to the association; requiring such advisers to be registered; prohibiting an investment adviser from being related to any board member, community management company, reserve study provider, or co owner of a unit with a board member or investment committee member; requiring investment advisers to comply with the prudent investor rule; requiring an adviser to act as a fiduciary to the association; providing that the investment and fiduciary standards required by the act take precedence over any conflicting law; requiring the investment committee to recommend a replacement adviser if the committee determines that an investment adviser is not meeting requirements; requiring the association to provide the investment adviser with specified financial information at least once each calendar year, or sooner if a substantial financial obligation of the association becomes known to the board; requiring the investment adviser to annually review such financial information and provide the association with a portfolio allocation model that is suitably structured and prudently designed to match projected annual reserve fund requirements and liability, assets, and liquidity requirements; requiring the investment adviser to prepare a funding projection for each reserve component, including any of the component’s redundancies; requiring that a specified minimum timeframe of projected reserves in cash or cash equivalents be available to the association; authorizing a portfolio managed by an investment adviser to contain any type of investment necessary to meet the objectives in the investment policy statement; providing exceptions; requiring that any funds invested by the investment adviser be held in third-party custodial accounts that are subject to insurance coverage by the Securities Investor Protection Corporation in an amount equal to or greater than the invested amount; authorizing the investment adviser to withdraw investment fees, expenses, and commissions from invested funds; requiring the investment adviser to annually provide the association with a written certification of compliance with certain provisions and provide the association with a list of certain stocks, securities, and other obligations; requiring the investment adviser to submit monthly, quarterly, and annual reports to the association, prepared in accordance with established financial industry standards; requiring that any principal, earnings, or interest managed be available to the association at no cost within a specified timeframe after the association’s written or electronic request; requiring that unallocated income earned on reserve fund investments be spent only on specified expenditures; amending s. 719.106, F.S.; revising the deferred maintenance expense or replacement costs threshold that must be in reserve accounts; authorizing the board to pause contributions to its reserves or reduce reserve funding if a local building official determines the entire cooperative building is uninhabitable due to a natural emergency; authorizing any reserve account fund held by the association to be expended to make the cooperative building and its structures habitable, pursuant to the board’s determination; requiring the association to immediately resume contributing funds to its reserves once the local building official determines that the cooperative building is habitable; authorizing certain reserves be funded by regular assessments, special assessments, lines of credit, or loans under certain circumstances; authorizing a unit owner-controlled association to obtain a line of credit or a loan to fund capital expenses required by a milestone inspection or a structural integrity reserve study; requiring that such lines of credit or loans be approved by a majority vote of the total voting interests of the association; requiring that such lines of credit or loans be sufficient to fund the cumulative amount of any previously waived or unfunded portion of the reserve funding amount and most recent structural integrity reserve study; requiring that funding from such lines of credit or loans be immediately available for access by the board for a specified purpose; authorizing the board to temporarily pause reserve fund contributions or reduce the amount of reserve funding for a specified purpose for a budget adopted on or before a specified date if the association has completed a milestone inspection within a specified timeframe; requiring that such temporary pause or reduction be approved by a majority of the total voting interests of the association; providing applicability; requiring associations that have paused or reduced their reserve funding contributions to have a structural integrity reserve study performed before the continuation of reserve contributions for specified purposes; providing that a vote of the members is not required for the board to change the accounting method for reserves to specified accounting methods; requiring the division to annually adjust for inflation the minimum threshold amount for required reserves, based on specified criteria; requiring the division, by a specified date and annually thereafter, to conspicuously post on its website the inflation-adjusted minimum threshold amount for required reserves; requiring specified design professionals or contractors, rather than any person qualified to perform a structural integrity reserve study, to perform structural integrity reserve studies; requiring such design professionals or contractors who bid to perform a structural integrity reserve study to disclose in writing to the association their intent to bid on any services related to the maintenance, repair, or replacement that may be recommended by the structural integrity reserve study; prohibiting such professionals or contractors from having any interest in or being related to any person having any interest in the firm or entity providing the association’s structural integrity reserve study unless such relationship is disclosed in writing; defining the term “relative”; providing that a contract for services is voidable and terminates upon the association filing a written notice terminating such a contract if such professional or contractor fails to provide a written disclosure of such relationship with the firm conducting the structural integrity reserve study; providing that such professional or contractor may be subject to discipline for his or her failure to provide such written disclosure; requiring that a structural integrity reserve study include a recommendation for a reserve funding schedule based on specified criteria; authorizing the study to recommend other types of reserve funding schedules, provided each recommended schedule is sufficient to meet the association’s maintenance obligation; requiring that reserves not required for certain items be separately identified as such in the structural integrity reserve study; requiring the structural integrity reserve study to take into consideration the funding method or methods used by the association to fund its maintenance and reserve funding obligations through regular assessments, special assessments, lines of credit, or loans; requiring a structural integrity reserve study that has been performed before the approval of a special assessment or the securing of a line of credit or a loan to be updated to reflect certain information regarding the reserve funding schedule; authorizing a structural integrity reserve study to be updated to reflect changes in the useful life of the reserve items after such items are repaired or replaced, and the effect of such repair or replacement will have on the reserve funding schedule; requiring an association to obtain an updated structural integrity reserve study before adopting any budget in which the reserve funding from regular assessments, special assessments, lines of credit, or loans do not align with the funding plan from the most recent version of the structural integrity reserve study; authorizing an association to delay a required structural integrity reserve study for a specified timeframe if it has completed a milestone inspection or similar inspection, for a specified purpose; requiring an officer or a director of the association to sign an affidavit acknowledging receipt of the completed structural integrity reserve study; requiring the division to adopt by rule the form for the structural integrity reserve study in coordination with the Florida Building Commission; amending s. 719.501, F.S.; requiring a cooperative association to create and maintain an online account with the division; requiring board members to maintain accurate contact information on file with the division; requiring the division to adopt rules; authorizing the division to require cooperative associations to provide information to the division no more than once per year; providing an exception; requiring the division to provide associations a specified timeframe to provide any required information; specifying the information the division may request; amending s. 719.503, F.S.; revising the disclosures that must be included in a contract for the sale and resale of an interest in a cooperative; amending s. 914.21, F.S.; revising the definition of the term “official investigation”; providing appropriations; reenacting s. 468.436(2)(b), F.S., relating to disciplinary proceedings, to incorporate the amendment made to s. 468.4335, F.S., in a reference thereto; reenacting s. 721.13(3)(e), F.S., relating to management, to incorporate the amendment made to s. 718.111, F.S., in a reference thereto; reenacting ss. 718.504(7)(a) and (21)(c) and 718.618(1)(d), F.S., relating to prospectus or offering circulars and converter reserve accounts and warranties, respectively, to incorporate the amendment made to s. 718.112, F.S., in references thereto; reenacting s. 718.706(1) and (3), F.S., relating to specific provisions pertaining to offering of units by bulk assignees or bulk buyers, to incorporate the amendments made to ss. 718.111, 718.112, and 718.503, F.S., in references thereto; reenacting ss. 719.103(24) and 719.504(7)(a) and (20)(c), F.S., relating to definitions and prospectus or offering circulars, respectively, to incorporate the amendment made to s. 719.106, F.S., in references thereto; providing effective dates.

AI Summary

Committee Categories

Jennifer Bradley (R)*,  Jason Pizzo (I), 

Other Sponsors (3)

Laid on Table, companion bill(s) passed, see CS/CS/HB 913 (Ch. 2025-175) (on 04/30/2025)

Official Document