CS/CS/CS/CS/HB 657 full text

1 A bill to be entitled

2 An act relating to community associations; creating s.

3 712.13, F.S.; providing legislative findings and

4 intent; providing definitions; providing that the

5 recorded governing documents of a dissolved

6 homeowners' association are deemed terminated and

7 unenforceable; requiring the clerk of the circuit

8 court to indicate in the county records that a

9 dissolved association's governing documents are

10 terminated and inactive; requiring certain exclusive

11 easements to revert to the servient estate upon

12 dissolution of a homeowners' association under certain

13 circumstances; providing for the extinguishment of

14 such easement; prohibiting an easement held by a

15 dissolved association from becoming a public right-of-

16 way, trail, or access route unless the easement is

17 separately recorded for public use; providing

18 construction; providing retroactive applicability;

19 amending s. 718.103, F.S.; defining the term

20 "habitable"; revising the definition of the term

21 "video conference"; amending s. 718.104, F.S.;

22 requiring condominium associations to include a

23 specified statement in the governing documents or to

24 hold a meeting by a date certain to vote to amend the

25 governing documents to include such statement;

26 requiring a vote held at such meeting to be approved

27 by a certain amount of the voting interests; amending

28 s. 718.111, F.S.; requiring a condominium association

29 to provide copies of certain records or otherwise make

30 them available for inspection and copying within a

31 specified timeframe if the association receives a

32 subpoena or written request from a law enforcement

33 agency or prosecuting agency; providing criminal

34 penalties; amending s. 718.112, F.S.; requiring a

35 developer to have a turnover inspection report

36 completed for all buildings on the condominium

37 property before turning control over to unit owners;

38 amending s. 718.1255, F.S.; removing presuit mediation

39 requirements; amending s. 718.128, F.S.; revising the

40 manner in which certain associations must receive

41 electronically transmitted ballots; revising the

42 methods by which unit owners may electronically

43 transmit ballots; amending s. 719.103, F.S.; defining

44 the term "habitable"; amending s. 719.106, F.S.;

45 requiring a developer to have a turnover inspection

46 report completed for all buildings on the condominium

47 property before turning control over to unit owners;

48 amending s. 720.301, F.S.; defining the term

49 "financial statements"; amending s. 720.302, F.S.;

50 conforming a provision to changes made by the act;

51 amending s. 720.303, F.S.; requiring homeowners'

52 associations to include a specified statement in the

53 governing documents or to hold a meeting by a date

54 certain to vote to amend the governing documents to

55 include such statement; requiring a vote held at such

56 meeting to be approved by a certain amount of the

57 voting interests; removing the authority of an

58 association to take certain actions relating to the

59 roof of a building; requiring an association to

60 provide copies of or otherwise make available certain

61 records for inspection and copying within a specified

62 timeframe if the association receives a written

63 request from a prosecuting agency; providing criminal

64 penalties; providing that directors, officers, and

65 committee members of a homeowners' association owe a

66 duty of loyalty to such association and its members;

67 requiring a director, an officer, or a committee

68 member who has a conflict of interest to disclose to

69 the board such conflict in writing; prohibiting such

70 director, officer, or member from participating in any

71 discussion or vote on such matter; authorizing an

72 association to void a transaction involving a conflict

73 of interest; providing an exception; providing a

74 rebuttable presumption; providing construction;

75 amending s. 720.3035, F.S.; prohibiting an association

76 or specified committees of an association from

77 enforcing or adopting a covenant, rule, or guideline

78 that requires a specific type of material for building

79 or rebuilding a roof under certain circumstances;

80 amending s. 720.306, F.S.; conforming a cross-

81 reference; amending s. 720.3075, F.S.; prohibiting an

82 association's documents from precluding a property

83 owner from using any type of building material to

84 build or rebuild a roof under certain circumstances;

85 amending s. 720.311, F.S.; removing presuit mediation

86 requirements; requiring that specified arbitrators

87 conduct arbitration proceedings; creating s. 720.319,

88 F.S.; providing a short title; providing legislative

89 findings; authorizing a homeowners' association to be

90 terminated; providing requirements for the termination

91 of a homeowners' association; providing conditions for

92 a plan of termination; requiring an approved plan of

93 termination be submitted to a community association

94 court program and recorded in the public records of

95 each county in which the association is located;

96 providing duties and responsibilities of a termination

97 trustee; authorizing a member to file a petition with

98 a community association court program under certain

99 circumstances; authorizing a community association

100 court program to take certain actions; providing

101 responsibilities of the board after approval of a plan

102 of termination; providing for the distribution of

103 assets and paying of lawful debts after an association

104 is terminated; specifying unlawful actions by an

105 association or its officers or directors; providing

106 penalties; creating s. 720.32, F.S.; providing

107 legislative intent; authorizing circuit courts to

108 create and administer a community association court

109 program; providing duties of the chief judge;

110 providing the jurisdiction of the community

111 association court program; authorizing the community

112 association court program to take certain actions;

113 requiring the chief judge of certain judicial circuits

114 to submit to the Legislature a specified report

115 annually by a specified date; providing duties of the

116 Office of the State Courts Administrator; requiring

117 that certain costs associated with the community

118 association court program be funded through specific

119 appropriations in the General Appropriations Act;

120 requiring certain funds that remain unencumbered or

121 undisbursed by specified dates to revert to the

122 Division of Florida Condominiums, Timeshares, and

123 Mobile Homes Trust Fund; providing applicability;

124 amending s. 26.031, F.S.; increasing the number of

125 circuit judges in certain judicial circuits;

126 specifying that the additional circuit court judges

127 are for the community association court program;

128 amending s. 34.01, F.S.; conforming a provision to

129 changes made by the act; amending ss. 336.125,

130 558.002, 617.0601, 617.0701, 617.0721, 617.0725,

131 617.0808, 617.1606, 718.116, 718.503, 719.503, and

132 720.3085, F.S.; conforming cross-references;

133 reenacting s. 617.0825(9), F.S., relating to board

134 committees and advisory committees, to incorporate the

135 amendment made to s. 720.3035, F.S., in a reference

136 thereto; providing an effective date.

138 Be It Enacted by the Legislature of the State of Florida:

140 Section 1. Section 712.13, Florida Statutes, is created to

141 read:

142 712.13 Governing documents associated with dissolved

143 homeowners' associations.—

144 (1) The Legislature finds that when a homeowners'

145 association has been dissolved, voluntarily or involuntarily,

146 the recorded governing documents created solely for the

147 association's benefit may remain in the county records

148 indefinitely, imposing an undue burden on private property

149 owners. It is the intent of the Legislature to restore and

150 protect private property rights by ensuring that such

151 encumbrances are properly extinguished or removed from the

152 official records of the county when the association ceases to

153 exist.

154 (2) As used in this section, the term:

155 (a) "Dissolved association" means a homeowners'

156 association that has filed articles of dissolution with the

157 Department of State under chapter 617 or has otherwise ceased

158 its legal operation and existence.

159 (b) "Exclusive easement" means an easement recorded for

160 the sole benefit or use of a homeowners' association or its

161 members.

162 (c) "Governing documents" has the same meaning as in s.

163 720.301.

164 (d) "Servient estate" means the real property burdened by

165 an easement.

166 (3)(a) Upon the dissolution of a homeowners' association,

167 the governing documents of the association, which were recorded

168 in the official records of a county and created solely for the

169 operation or benefit of the dissolved association or its

170 members, are deemed terminated and are unenforceable.

171 (b) The recorded governing documents may not be construed

172 to create any rights for the general public or for any successor

173 entity unless expressly provided by law.

174 (c) The clerk of the circuit court shall, upon receipt of

175 a certified copy of the association's articles of dissolution,

176 mark or otherwise indicate in the county's official records that

177 the governing documents for the dissolved association are

178 terminated and inactive.

179 (4)(a) An exclusive easement created for the benefit of a

180 homeowners' association or its members must revert to the

181 servient estate upon dissolution of the association if the owner

182 of the servient estate has continuously paid his or her ad

183 valorem taxes on the land encumbered by the easement.

184 (b) Upon reversion, the exclusive easement is extinguished

185 and the owner of the servient estate regains full rights of

186 ownership, possession, and control of the land encumbered by the

187 easement.

188 (c) An easement formerly held by a homeowners' association

189 may not become a public right-of-way, trail, or access route

190 unless a separate, valid written notice in accordance with s.

191 712.06 has been recorded to preserve the easement for the

192 benefit of the public.

193 (5) This section does not impair or extinguish easements,

194 covenants, or restrictions benefiting individual property owners

195 which were separately recorded or preserved under this chapter.

196 (6) This section applies both prospectively and

197 retroactively to homeowners' associations dissolved before, on,

198 or after July 1, 2026.

199 Section 2. Subsections (19) through (35) of section

200 718.103, Florida Statutes, are renumbered as subsections (20)

201 through (36), respectively, present subsection (33) is amended,

202 and a new subsection (19) is added to that section, to read:

203 718.103 Definitions.—As used in this chapter, the term:

204 (19) "Habitable" means a space in a building for living,

205 sleeping, eating, or cooking. Garages, carports, and storage or

206 utility spaces are not considered habitable.

207 ~~(34)(33)~~ "Video conference" means a real-time audio- and

208 video-based meeting between two or more people in different

209 locations using video-enabled and audio-enabled devices. The

210 notice for any meeting that is open to the unit owners and will

211 be conducted by video conference must have a hyperlink and call-

212 in conference telephone number for unit owners to attend the

213 meeting and must have a physical location where unit owners can

214 also attend the meeting in person. All meetings conducted by

215 video conference which are open to the unit owners must be

216 recorded, and such recording must be maintained as an official

217 record of the association.

218 Section 3. Subsection (8) is added to section 718.104,

219 Florida Statutes, to read:

220 718.104 Creation of condominiums; contents of

221 declaration.—Every condominium created in this state shall be

222 created pursuant to this chapter.

223 (8)(a) Each association formed on or after July 1, 2026,

224 must include the following statement in the governing documents:

226 This association and the association's governing

227 documents are governed by the Florida Condominium Act,

228 as amended from time to time.

230 (b) By January 1, 2027, each association in existence

231 before July 1, 2026, must hold a meeting of the members in

232 accordance with s. 718.112 to vote whether to amend the

233 governing documents of the association to include the statement

234 in paragraph (a). The association must obtain the affirmative

235 approval of two-thirds of the units at a meeting of the

236 membership at which a quorum has been attained in order to amend

237 the governing documents under this paragraph.

238 Section 4. Paragraph (c) of subsection (12) of section

239 718.111, Florida Statutes, is amended to read:

240 718.111 The association.—

241 (12) OFFICIAL RECORDS.—

242 (c)1.a. The official records of the association are open

243 to inspection by any association member and any person

244 authorized by an association member as a representative of such

245 member at all reasonable times. The right to inspect the records

246 includes the right to make or obtain copies, at the reasonable

247 expense, if any, of the member and of the person authorized by

248 the association member as a representative of such member. A

249 renter of a unit has a right to inspect and copy only the

250 declaration of condominium, the association's bylaws and rules,

251 and the inspection reports described in ss. 553.899 and

252 718.301(4)(p). The association may adopt reasonable rules

253 regarding the frequency, time, location, notice, and manner of

254 record inspections and copying but may not require a member to

255 demonstrate any purpose or state any reason for the inspection.

256 The failure of an association to provide the records within 10

257 working days after receipt of a written request creates a

258 rebuttable presumption that the association willfully failed to

259 comply with this paragraph. A unit owner who is denied access to

260 official records is entitled to the actual damages or minimum

261 damages for the association's willful failure to comply. Minimum

262 damages are $50 per calendar day for up to 10 days, beginning on

263 the 11th working day after receipt of the written request. The

264 failure to permit inspection entitles any person prevailing in

265 an enforcement action to recover reasonable attorney fees from

266 the person in control of the records who, directly or

267 indirectly, knowingly denied access to the records. If the

268 requested records are posted on an association's website, or are

269 available for download through an application on a mobile

270 device, the association may fulfill its obligations under this

271 paragraph by directing to the website or the application all

272 persons authorized to request access.

273 b. In response to a written request to inspect records,

274 the association must simultaneously provide to the requestor a

275 checklist of all records made available for inspection and

276 copying. The checklist must also identify any of the

277 association's official records that were not made available to

278 the requestor. An association must maintain a checklist provided

279 under this sub-subparagraph for 7 years. An association

280 delivering a checklist pursuant to this sub-subparagraph creates

281 a rebuttable presumption that the association has complied with

282 this paragraph.

283 2. A director or member of the board or association or a

284 community association manager who willfully and knowingly or

285 intentionally violates subparagraph 1. commits a misdemeanor of

286 the second degree, punishable as provided in s. 775.082 or s.

287 775.083, and must be removed from office and a vacancy declared.

288 3. A person who willfully and knowingly or intentionally

289 defaces or destroys accounting records that are required by this

290 chapter to be maintained during the period for which such

291 records are required to be maintained, or who willfully and

292 knowingly or intentionally fails to create or maintain

293 accounting records that are required to be created or

294 maintained, with the intent of causing harm to the association

295 or one or more of its members, commits a misdemeanor of the

296 first degree, punishable as provided in s. 775.082 or s.

297 775.083; is personally subject to a civil penalty pursuant to s.

298 718.501(1)(e); and must be removed from office and a vacancy

299 declared.

300 4. A person who willfully and knowingly or intentionally

301 refuses to release or otherwise produce association records with

302 the intent to avoid or escape detection, arrest, trial, or

303 punishment for the commission of a crime, or to assist another

304 person with such avoidance or escape, commits a felony of the

305 third degree, punishable as provided in s. 775.082, s. 775.083,

306 or s. 775.084, and must be removed from office and a vacancy

307 declared.

308 5. The association shall maintain an adequate number of

309 copies of the declaration, articles of incorporation, bylaws,

310 and rules, and all amendments to each of the foregoing, as well

311 as the question and answer sheet as described in s. 718.504 and

312 the most recent annual financial statement and annual budget

313 required under this section, on the condominium property to

314 ensure their availability to unit owners and prospective

315 purchasers, and may charge its actual costs for preparing and

316 furnishing these documents to those requesting the documents. An

317 association shall allow a member or his or her authorized

318 representative to use a portable device, including a smartphone,

319 tablet, portable scanner, or any other technology capable of

320 scanning or taking photographs, to make an electronic copy of

321 the official records in lieu of the association's providing the

322 member or his or her authorized representative with a copy of

323 such records. The association may not charge a member or his or

324 her authorized representative for the use of a portable device.

325 Notwithstanding this paragraph, the following records are not

326 accessible to unit owners:

327 a. Any record protected by the lawyer-client privilege as

328 described in s. 90.502 and any record protected by the work-

329 product privilege, including a record prepared by an association

330 attorney or prepared at the attorney's express direction, which

331 reflects a mental impression, conclusion, litigation strategy,

332 or legal theory of the attorney or the association, and which

333 was prepared exclusively for civil or criminal litigation or for

334 adversarial administrative proceedings, or which was prepared in

335 anticipation of such litigation or proceedings until the

336 conclusion of the litigation or proceedings.

337 b. Information obtained by an association in connection

338 with the approval of the lease, sale, or other transfer of a

339 unit.

340 c. Personnel records of association or management company

341 employees, including, but not limited to, disciplinary, payroll,

342 health, and insurance records. For purposes of this sub-

343 subparagraph, the term "personnel records" does not include

344 written employment agreements with an association employee or

345 management company, or budgetary or financial records that

346 indicate the compensation paid to an association employee.

347 d. Medical records of unit owners.

348 e. Social security numbers, driver license numbers, credit

349 card numbers, e-mail addresses, telephone numbers, facsimile

350 numbers, emergency contact information, addresses of a unit

351 owner other than as provided to fulfill the association's notice

352 requirements, and other personal identifying information of any

353 person, excluding the person's name, unit designation, mailing

354 address, property address, and any address, e-mail address, or

355 facsimile number provided to the association to fulfill the

356 association's notice requirements. Notwithstanding the

357 restrictions in this sub-subparagraph, an association may print

358 and distribute to unit owners a directory containing the name,

359 unit address, and all telephone numbers of each unit owner.

360 However, an owner may exclude his or her telephone numbers from

361 the directory by so requesting in writing to the association. An

362 owner may consent in writing to the disclosure of other contact

363 information described in this sub-subparagraph. The association

364 is not liable for the inadvertent disclosure of information that

365 is protected under this sub-subparagraph if the information is

366 included in an official record of the association and is

367 voluntarily provided by an owner and not requested by the

368 association.

369 f. Electronic security measures that are used by the

370 association to safeguard data, including passwords.

371 g. The software and operating system used by the

372 association which allow the manipulation of data, even if the

373 owner owns a copy of the same software used by the association.

374 The data is part of the official records of the association.

375 h. All affirmative acknowledgments made pursuant to s.

376 718.121(4)(c).

377 6.a. If an association receives a subpoena or written

378 request for records from a prosecuting agency as defined in s.

379 112.531 or a law enforcement agency, the association must

380 provide a copy of such records or otherwise make the records

381 available for inspection and copying to the prosecuting agency

382 or law enforcement agency within 5 business days after receipt

383 of the subpoena or written request, unless otherwise specified

384 by the law enforcement agency, prosecuting agency, subpoena, or

385 written request. An association must assist a law enforcement

386 agency and a prosecting agency in an investigation to the extent

387 permissible by law.

388 b. A director or member of the board or association or a

389 community association manager who willfully and knowingly fails

390 to provide a copy of records, or otherwise fails to make the

391 records available for inspection and copying, to a prosecuting

392 agency or a law enforcement agency as required under sub-

393 subparagraph a. commits a misdemeanor of the second degree,

394 punishable as provided in s. 775.082 or s. 775.083.

395 Section 5. Paragraph (g) of subsection (2) of section

396 718.112, Florida Statutes, is amended to read:

397 718.112 Bylaws.—

398 (2) REQUIRED PROVISIONS.—The bylaws shall provide for the

399 following and, if they do not do so, shall be deemed to include

400 the following:

401 (g) Structural integrity reserve study.—

402 1. A residential condominium association must have a

403 structural integrity reserve study completed at least every 10

404 years after the condominium's creation for each building on the

405 condominium property that is three habitable stories or higher

406 in height, as determined by the Florida Building Code, which

407 includes, at a minimum, a study of the following items as

408 related to the structural integrity and safety of the building:

409 a. Roof.

410 b. Structure, including load-bearing walls and other

411 primary structural members and primary structural systems as

412 those terms are defined in s. 627.706.

413 c. Fireproofing and fire protection systems.

414 d. Plumbing.

415 e. Electrical systems.

416 f. Waterproofing and exterior painting.

417 g. Windows and exterior doors.

418 h. Any other item that has a deferred maintenance expense

419 or replacement cost that exceeds $25,000 or the inflation-

420 adjusted amount determined by the division under subparagraph

421 (f)6., whichever is greater, and the failure to replace or

422 maintain such item negatively affects the items listed in sub-

423 subparagraphs a.-g., as determined by the visual inspection

424 portion of the structural integrity reserve study.

425 2. A structural integrity reserve study is based on a

426 visual inspection of the condominium property.

427 3.a. A structural integrity reserve study, including the

428 visual inspection portion of the structural integrity reserve

429 study, must be performed or verified by an engineer licensed

430 under chapter 471, an architect licensed under chapter 481, or a

431 person certified as a reserve specialist or professional reserve

432 analyst by the Community Associations Institute or the

433 Association of Professional Reserve Analysts.

434 b. Any design professional as defined in s. 558.002 or any

435 contractor licensed under chapter 489 who bids to perform a

436 structural integrity reserve study must disclose in writing to

437 the association his or her intent to bid on any services related

438 to any maintenance, repair, or replacement that may be

439 recommended by the structural integrity reserve study. Any

440 design professional as defined in s. 558.002 or contractor

441 licensed under chapter 489 who submits a bid to the association

442 for performing any services recommended by the structural

443 integrity reserve study may not have an interest, directly or

444 indirectly, in the firm or entity providing the association's

445 structural integrity reserve study or be a relative of any

446 person having a direct or indirect interest in such firm, unless

447 such relationship is disclosed to the association in writing. As

448 used in this section, the term "relative" means a relative

449 within the third degree of consanguinity by blood or marriage. A

450 contract for services is voidable and terminates upon the

451 association filing a written notice terminating the contract if

452 the design professional or licensed contractor failed to provide

453 the written disclosure of the interests or relationships

454 required under this paragraph. A design professional or licensed

455 contractor may be subject to discipline under the applicable

456 practice act for his or her profession for failure to provide

457 the written disclosure of the interests or relationships

458 required under this paragraph.

459 4.a. At a minimum, a structural integrity reserve study

460 must identify each item of the condominium property being

461 visually inspected, state the estimated remaining useful life

462 and the estimated replacement cost or deferred maintenance

463 expense of each item of the condominium property being visually

464 inspected, and provide a reserve funding plan or schedule with a

465 recommended annual reserve amount that achieves the estimated

466 replacement cost or deferred maintenance expense of each item of

467 condominium property being visually inspected by the end of the

468 estimated remaining useful life of the item. At a minimum, the

469 structural integrity reserve study must include a recommendation

470 for a reserve funding schedule based on a baseline funding plan

471 that provides a reserve funding goal in which the reserve

472 funding for each budget year is sufficient to maintain the

473 reserve cash balance above zero. The study may recommend other

474 types of reserve funding schedules, provided that each

475 recommended schedule is sufficient to meet the association's

476 maintenance obligation.

477 b. The structural integrity reserve study may recommend

478 that reserves do not need to be maintained for any item for

479 which an estimate of useful life and an estimate of replacement

480 cost cannot be determined, or the study may recommend a deferred

481 maintenance expense amount for such item. The structural

482 integrity reserve study may recommend that reserves for

483 replacement costs do not need to be maintained for any item with

484 an estimated remaining useful life of greater than 25 years, but

485 the study may recommend a deferred maintenance expense amount

486 for such item. If the structural integrity reserve study

487 recommends reserves for any item for which reserves are not

488 required under this paragraph, the amount of the recommended

489 reserves for such item must be separately identified in the

490 structural integrity reserve study as an item for which reserves

491 are not required under this paragraph.

492 c. The structural integrity reserve study must take into

493 consideration the funding method or methods used by the

494 association to fund its maintenance and reserve funding

495 obligations through regular assessments, special assessments,

496 lines of credit, or loans. If the structural integrity reserve

497 study is performed before the association has approved a special

498 assessment or secured a line of credit or a loan, the structural

499 integrity reserve study must be updated to reflect the funding

500 method selected by the association and its effect on the reserve

501 funding schedule, including any anticipated change in the amount

502 of regular assessments. The structural integrity reserve study

503 may be updated to reflect any changes to the useful life of the

504 reserve items after such items are repaired or replaced and the

505 effect such repair or replacement will have on the reserve

506 funding schedule. The association must obtain an updated

507 structural integrity reserve study before adopting any budget in

508 which the reserve funding from regular assessments, special

509 assessments, lines of credit, or loans does not align with the

510 funding plan from the most recent version of the structural

511 integrity reserve study.

512 5. This paragraph does not apply to buildings less than

513 three habitable stories in height; single-family, two-family,

514 three-family, or four-family dwellings with three or fewer

515 habitable stories above ground; any portion or component of a

516 building that has not been submitted to the condominium form of

517 ownership; or any portion or component of a building that is

518 maintained by a party other than the association.

519 6. Before a developer turns over control of an association

520 to unit owners other than the developer, the developer must have

521 a turnover inspection report in compliance with s. 718.301(4)(p)

522 and (q) for each building on the condominium property ~~that is~~

523 ~~three stories or higher in height.~~

524 7. Associations existing on or before July 1, 2022, which

525 are controlled by unit owners other than the developer, must

526 have a structural integrity reserve study completed by December

527 31, 2025, for each building on the condominium property that is

528 three habitable stories or higher in height. An association that

529 is required to complete a milestone inspection in accordance

530 with s. 553.899 on or before December 31, 2026, may complete the

531 structural integrity reserve study simultaneously with the

532 milestone inspection. In no event may the structural integrity

533 reserve study be completed after December 31, 2026.

534 8. If the milestone inspection required by s. 553.899, or

535 an inspection completed for a similar local requirement, was

536 performed within the past 5 years and meets the requirements of

537 this paragraph, such inspection may be used in place of the

538 visual inspection portion of the structural integrity reserve

539 study.

540 9. If the association completes a milestone inspection

541 required by s. 553.899, or an inspection completed for a similar

542 local requirement, the association may delay performance of a

543 required structural integrity reserve study for no more than the

544 2 consecutive budget years immediately following the milestone

545 inspection in order to allow the association to focus its

546 financial resources on completing the repair and maintenance

547 recommendations of the milestone inspection.

548 10. If the officers or directors of an association

549 willfully and knowingly fail to complete a structural integrity

550 reserve study pursuant to this paragraph, such failure is a

551 breach of an officer's or a director's fiduciary relationship to

552 the unit owners under s. 718.111(1). An officer or a director of

553 an association must sign an affidavit acknowledging receipt of

554 the completed structural integrity reserve study.

555 11. Within 45 days after receiving the structural

556 integrity reserve study, the association must distribute a copy

557 of the study to each unit owner or deliver to each unit owner a

558 notice that the completed study is available for inspection and

559 copying upon a written request. Distribution of a copy of the

560 study or notice must be made by United States mail or personal

561 delivery to the mailing address, property address, or any other

562 address of the owner provided to fulfill the association's

563 notice requirements under this chapter, or by electronic

564 transmission to the e-mail address or facsimile number provided

565 to fulfill the association's notice requirements to unit owners

566 who previously consented to receive notice by electronic

567 transmission.

568 12. Within 45 days after receiving the structural

569 integrity reserve study, the association must provide the

570 division with a statement indicating that the study was

571 completed and that the association provided or made available

572 such study to each unit owner in accordance with this section.

573 The statement must be provided to the division in the manner

574 established by the division using a form posted on the

575 division's website.

576 13. The division shall adopt by rule the form for the

577 structural integrity reserve study in coordination with the

578 Florida Building Commission.

579 Section 6. Subsections (6) and (7) of section 718.1255,

580 Florida Statutes, are renumbered as subsections (5) and (6),

581 respectively, and paragraphs (a), (h), (k), and (m) of

582 subsection (4) and present subsection (5) of that section are

583 amended, to read:

584 718.1255 Alternative dispute resolution; mediation;

585 nonbinding arbitration; applicability.—

586 (4) NONBINDING ARBITRATION AND MEDIATION OF DISPUTES.—The

587 Division of Florida Condominiums, Timeshares, and Mobile Homes

588 of the Department of Business and Professional Regulation may

589 employ full-time attorneys to act as arbitrators to conduct the

590 arbitration hearings provided by this chapter. The division may

591 also certify attorneys who are not employed by the division to

592 act as arbitrators to conduct the arbitration hearings provided

593 by this chapter. A person may not be employed by the department

594 as a full-time arbitrator unless he or she is a member in good

595 standing of The Florida Bar. A person may only be certified by

596 the division to act as an arbitrator if he or she has been a

597 member in good standing of The Florida Bar for at least 5 years

598 and has mediated or arbitrated at least 10 disputes involving

599 condominiums in this state during the 3 years immediately

600 preceding the date of application, mediated or arbitrated at

601 least 30 disputes in any subject area in this state during the 3

602 years immediately preceding the date of application, or attained

603 board certification in real estate law or condominium and

604 planned development law from The Florida Bar. Arbitrator

605 certification is valid for 1 year. An arbitrator who does not

606 maintain the minimum qualifications for initial certification

607 may not have his or her certification renewed. The department

608 may not enter into a legal services contract for an arbitration

609 hearing under this chapter with an attorney who is not a

610 certified arbitrator unless a certified arbitrator is not

611 available within 50 miles of the dispute. The department shall

612 adopt rules of procedure to govern such arbitration hearings

613 including mediation incident thereto. The decision of an

614 arbitrator is final; however, a decision is not deemed final

615 agency action. Nothing in this provision shall be construed to

616 foreclose parties from proceeding in a trial de novo unless the

617 parties have agreed that the arbitration is binding. If judicial

618 proceedings are initiated, the final decision of the arbitrator

619 is admissible in evidence in the trial de novo.

620 (a) Before the institution of court litigation, a party to

621 a dispute, other than an election or recall dispute, must ~~shall~~

622 ~~either~~ petition the division for nonbinding arbitration or

623 request that the case be referred to mediation ~~initiate presuit~~

624 ~~mediation as provided in subsection (5).~~ Arbitration is binding

625 on the parties if all parties in arbitration agree to be bound

626 in a writing filed in arbitration. The petition must be

627 accompanied by a filing fee in the amount of $50. Filing fees

628 collected under this section must be used to defray the expenses

629 of the alternative dispute resolution program.

630 (h) Mediation proceedings must generally be conducted in

631 accordance with the Florida Rules of Civil Procedure, and these

632 proceedings are privileged and confidential to the same extent

633 as court-ordered mediation. Persons who are not parties to the

634 dispute are not allowed to attend the mediation conference

635 without the consent of all parties, with the exception of

636 counsel for the parties and corporate representatives designated

637 to appear for a party. If the mediator declares an impasse after

638 a mediation conference has been held, the arbitration proceeding

639 terminates, unless all parties agree in writing to continue the

640 arbitration proceeding, in which case the arbitrator's decision

641 shall be binding or nonbinding, as agreed upon by the parties;

642 in the arbitration proceeding, the arbitrator shall not consider

643 any evidence relating to the unsuccessful mediation except in a

644 proceeding to impose sanctions for failure to appear at the

645 mediation conference. If the parties do not agree to continue

646 arbitration, the arbitrator shall enter an order of dismissal,

647 and either party may institute a suit in a community association

648 court program under s. 720.32 or a court of competent

649 jurisdiction. The parties may seek to recover any costs and

650 attorney fees incurred in connection with arbitration and

651 mediation proceedings under this section as part of the costs

652 and fees that may be recovered by the prevailing party in any

653 subsequent litigation.

654 (k) The arbitration decision shall be rendered within 30

655 days after the hearing and presented to the parties in writing.

656 An arbitration decision is final in those disputes in which the

657 parties have agreed to be bound. An arbitration decision is also

658 final if a complaint for a trial de novo is not filed in a

659 community association court program under s. 720.32 or a court

660 of competent jurisdiction in which the condominium is located

661 within 30 days. The right to file for a trial de novo entitles

662 the parties to file a complaint in the appropriate trial court

663 for a judicial resolution of the dispute. The prevailing party

664 in an arbitration proceeding shall be awarded the costs of the

665 arbitration and reasonable attorney fees in an amount determined

666 by the arbitrator. Such an award shall include the costs and

667 reasonable attorney fees incurred in the arbitration proceeding

668 as well as the costs and reasonable attorney fees incurred in

669 preparing for and attending any scheduled mediation. An

670 arbitrator's failure to render a written decision within 30 days

671 after the hearing may result in the cancellation of his or her

672 arbitration certification.

673 (m) Any party to an arbitration proceeding may enforce an

674 arbitration award by filing a petition in a community

675 association court program under s. 720.32 or a court of

676 competent jurisdiction in which the condominium is located. A

677 petition may not be granted unless the time for appeal by the

678 filing of a complaint for trial de novo has expired. If a

679 complaint for a trial de novo has been filed, a petition may not

680 be granted with respect to an arbitration award that has been

681 stayed. If the petition for enforcement is granted, the

682 petitioner shall recover reasonable attorney fees and costs

683 incurred in enforcing the arbitration award. A mediation

684 settlement may also be enforced through the county or circuit

685 court or a community association court program, as applicable,

686 and any costs and fees incurred in the enforcement of a

687 settlement agreement reached at mediation must be awarded to the

688 prevailing party in any enforcement action.

689 ~~(5) PRESUIT MEDIATION.—In lieu of the initiation of~~

690 ~~nonbinding arbitration as provided in subsections (1)-(4), a~~

691 ~~party may submit a dispute to presuit mediation in accordance~~

692 ~~with s. 720.311; however, election and recall disputes are not~~

693 ~~eligible for mediation and such disputes must be arbitrated by~~

694 ~~the division or filed in a court of competent jurisdiction.~~

695 Section 7. Subsection (7) of section 718.128, Florida

696 Statutes, is amended to read:

697 718.128 Electronic voting.—The association may conduct

698 elections and other unit owner votes through an Internet-based

699 online voting system if a unit owner consents, electronically or

700 in writing, to online voting and if the following requirements

701 are met:

702 (7)(a) Unless the association has adopted electronic

703 voting in accordance with subsections (1)-(6), the association

704 must designate an e-mail address, independent website,

705 application, or Internet web portal for receipt of

706 electronically transmitted ballots. Electronically transmitted

707 ballots must meet all the requirements of this subsection.

708 (b) A unit owner may electronically transmit a ballot to

709 the e-mail address, independent website, application, or

710 Internet web portal designated by the association without

711 complying with s. 718.112(2)(d)3. ~~s. 718.112(2)(d)4.~~ or the

712 rules providing for the secrecy of ballots adopted by the

713 division. The association must count completed ballots that are

714 electronically transmitted to the designated e-mail address,

715 independent website, application, or Internet web portal,

716 provided the completed ballots comply with the requirements of

717 this subsection.

718 (c) A ballot that is electronically transmitted to the

719 association must include all of the following:

720 1. A space for the unit owner to type in his or her unit

721 number.

722 2. A space for the unit owner to type in his or her first

723 and last name, which also functions as the signature of the unit

724 owner for purposes of signing the ballot.

725 3. The following statement in capitalized letters and in a

726 font size larger than any other font size used in the electronic

727 transmission ~~e-mail~~ from the association to the unit owner:

729 WAIVING THE SECRECY OF YOUR BALLOT IS YOUR CHOICE. YOU

730 DO NOT HAVE TO WAIVE THE SECRECY OF YOUR BALLOT IN

731 ORDER TO VOTE. BY TRANSMITTING YOUR COMPLETED BALLOT

732 THROUGH ELECTRONIC MEANS ~~E-MAIL~~ TO THE ASSOCIATION,

733 YOU WAIVE THE SECRECY OF YOUR COMPLETED BALLOT. IF YOU

734 DO NOT WISH TO WAIVE YOUR SECRECY BUT WISH TO

735 PARTICIPATE IN THE VOTE THAT IS THE SUBJECT OF THIS

736 BALLOT, PLEASE ATTEND THE IN-PERSON MEETING DURING

737 WHICH THE MATTER WILL BE VOTED ON.

739 (d) A unit owner must transmit his or her completed ballot

740 to the e-mail address, independent website, application, or

741 Internet web portal designated by the association no later than

742 the scheduled date and time of the meeting during which the

743 matter is being voted on.

744 (e) There is a rebuttable presumption that an association

745 has reviewed all folders associated with the e-mail address,

746 independent website, application, or Internet web portal

747 designated by the association to receive ballots if a board

748 member, an officer, or an agent of the association, or a manager

749 licensed under part VIII of chapter 468, provides a sworn

750 affidavit attesting to such review.

751 Section 8. Subsections (19) through (29) of section

752 719.103, Florida Statutes, are renumbered as subsections (20)

753 through (30), respectively, and a new subsection (19) is added

754 to that section to read:

755 719.103 Definitions.—As used in this chapter:

756 (19) "Habitable" means a space in a building for living,

757 sleeping, eating, or cooking. Garages, carports, and storage or

758 utility spaces are not considered habitable.

759 Section 9. Paragraph (k) of subsection (1) of section

760 719.106, Florida Statutes, is amended to read:

761 719.106 Bylaws; cooperative ownership.—

762 (1) MANDATORY PROVISIONS.—The bylaws or other cooperative

763 documents shall provide for the following, and if they do not,

764 they shall be deemed to include the following:

765 (k) Structural integrity reserve study.—

766 1. A residential cooperative association must have a

767 structural integrity reserve study completed at least every 10

768 years for each building on the cooperative property that is

769 three habitable stories or higher in height, as determined by

770 the Florida Building Code, that includes, at a minimum, a study

771 of the following items as related to the structural integrity

772 and safety of the building:

773 a. Roof.

774 b. Structure, including load-bearing walls and other

775 primary structural members and primary structural systems as

776 those terms are defined in s. 627.706.

777 c. Fireproofing and fire protection systems.

778 d. Plumbing.

779 e. Electrical systems.

780 f. Waterproofing and exterior painting.

781 g. Windows and exterior doors.

782 h. Any other item that has a deferred maintenance expense

783 or replacement cost that exceeds $25,000 or the inflation-

784 adjusted amount determined by the division under subparagraph

785 (j)6., whichever is greater, and the failure to replace or

786 maintain such item negatively affects the items listed in sub-

787 subparagraphs a.-g., as determined by the visual inspection

788 portion of the structural integrity reserve study.

789 2. A structural integrity reserve study is based on a

790 visual inspection of the cooperative property.

791 3.a. A structural integrity reserve study, including the

792 visual inspection portion of the structural integrity reserve

793 study, must be performed or verified by an engineer licensed

794 under chapter 471, an architect licensed under chapter 481, or a

795 person certified as a reserve specialist or professional reserve

796 analyst by the Community Associations Institute or the

797 Association of Professional Reserve Analysts.

798 b. Any design professional as defined in s. 558.002(7) or

799 contractor licensed under chapter 489 who bids to perform a

800 structural integrity reserve study must disclose in writing to

801 the association his or her intent to bid on any services related

802 to any maintenance, repair, or replacement that may be

803 recommended by the structural integrity reserve study. Any

804 design professional as defined in s. 558.002 or contractor

805 licensed under chapter 489 who submits a bid to the association

806 for performing any services recommended by the structural

807 integrity reserve study may not have an interest, directly or

808 indirectly, in the firm or entity providing the association's

809 structural integrity reserve study or be a relative of any

810 person having a direct or indirect interest in such firm, unless

811 such relationship is disclosed to the association in writing. As

812 used in this section, the term "relative" means a relative

813 within the third degree of consanguinity by blood or marriage. A

814 contract for services is voidable and terminates upon the

815 association filing a written notice terminating the contract if

816 the design professional or licensed contractor failed to provide

817 the written disclosure of the relationship required under this

818 paragraph. A design professional or licensed contractor may be

819 subject to discipline under the applicable practice act for his

820 or her profession for failure to provide the written disclosure

821 of the relationship required under this subparagraph.

822 4.a. At a minimum, a structural integrity reserve study

823 must identify each item of the cooperative property being

824 visually inspected, state the estimated remaining useful life

825 and the estimated replacement cost or deferred maintenance

826 expense of each item of the cooperative property being visually

827 inspected, and provide a reserve funding schedule with a

828 recommended annual reserve amount that achieves the estimated

829 replacement cost or deferred maintenance expense of each item of

830 cooperative property being visually inspected by the end of the

831 estimated remaining useful life of the item. The structural

832 integrity reserve study may recommend that reserves do not need

833 to be maintained for any item for which an estimate of useful

834 life and an estimate of replacement cost cannot be determined,

835 or the study may recommend a deferred maintenance expense amount

836 for such item. At a minimum, the structural integrity reserve

837 study must include a recommendation for a reserve funding

838 schedule based on a baseline funding plan that provides a

839 reserve funding goal in which the reserve funding for each

840 budget year is sufficient to maintain the reserve cash balance

841 above zero. The study may recommend other types of reserve

842 funding schedules, provided that each recommended schedule is

843 sufficient to meet the association's maintenance obligation.

844 b. The structural integrity reserve study may recommend

845 that reserves for replacement costs do not need to be maintained

846 for any item with an estimated remaining useful life of greater

847 than 25 years, but the study may recommend a deferred

848 maintenance expense amount for such item. If the structural

849 integrity reserve study recommends reserves for any item for

850 which reserves are not required under this paragraph, the amount

851 of the recommended reserves for such item must be separately

852 identified in the structural integrity reserve study as an item

853 for which reserves are not required under this paragraph.

854 c. The structural integrity reserve study must take into

855 consideration the funding method or methods used by the

856 association to fund its maintenance and reserve funding

857 obligations through regular assessments, special assessments,

858 lines of credit, or loans. If the structural integrity reserve

859 study is performed before the association has approved a special

860 assessment or secured a line of credit or a loan, the structural

861 integrity reserve study must be updated to reflect the funding

862 method selected by the association and its effect on the reserve

863 funding schedule, including any anticipated change in the amount

864 of regular assessments. The structural integrity reserve study

865 may be updated to reflect any changes to the useful life of the

866 reserve items after such items are repaired or replaced, and the

867 effect such repair or replacement will have on the reserve

868 funding schedule. The association must obtain an updated

869 structural integrity reserve study before adopting any budget in

870 which the reserve funding from regular assessments, special

871 assessments, lines of credit, or loans does not align with the

872 funding plan from the most recent version of the structural

873 integrity reserve study.

874 5. This paragraph does not apply to buildings less than

875 three habitable stories in height; single-family, two-family,

876 three-family, or four-family dwellings with three or fewer

877 habitable stories above ground; any portion or component of a

878 building that has not been submitted to the cooperative form of

879 ownership; or any portion or component of a building that is

880 maintained by a party other than the association.

881 6. Before a developer turns over control of an association

882 to unit owners other than the developer, the developer must have

883 a turnover inspection report in compliance with s. 719.301(4)(p)

884 and (q) for each building on the cooperative property ~~that is~~

885 ~~three stories or higher in height.~~

886 7. Associations existing on or before July 1, 2022, which

887 are controlled by unit owners other than the developer, must

888 have a structural integrity reserve study completed by December

889 31, 2024, for each building on the cooperative property that is

890 three habitable stories or higher in height. An association that

891 is required to complete a milestone inspection on or before

892 December 31, 2026, in accordance with s. 553.899 may complete

893 the structural integrity reserve study simultaneously with the

894 milestone inspection. In no event may the structural integrity

895 reserve study be completed after December 31, 2026.

896 8. If the milestone inspection required by s. 553.899, or

897 an inspection completed for a similar local requirement, was

898 performed within the past 5 years and meets the requirements of

899 this paragraph, such inspection may be used in place of the

900 visual inspection portion of the structural integrity reserve

901 study.

902 9. If the association completes a milestone inspection

903 required by s. 553.899, or an inspection completed for a similar

904 local requirement, the association may delay performance of a

905 required structural integrity reserve study for no more than the

906 2 consecutive budget years immediately following the milestone

907 inspection in order to allow the association to focus its

908 financial resources on completing the repair and maintenance

909 recommendations of the milestone inspection.

910 10. If the officers or directors of an association

911 willfully and knowingly fail to complete a structural integrity

912 reserve study pursuant to this paragraph, such failure is a

913 breach of an officer's and director's fiduciary relationship to

914 the unit owners under s. 719.104(9). An officer or a director of

915 the association must sign an affidavit acknowledging receipt of

916 the completed structural integrity reserve study.

917 11. Within 45 days after receiving the structural

918 integrity reserve study, the association must distribute a copy

919 of the study to each unit owner or deliver to each unit owner a

920 notice that the completed study is available for inspection and

921 copying upon a written request. Distribution of a copy of the

922 study or notice must be made by United States mail or personal

923 delivery at the mailing address, property address, or any other

924 address of the owner provided to fulfill the association's

925 notice requirements under this chapter, or by electronic

926 transmission to the e-mail address or facsimile number provided

927 to fulfill the association's notice requirements to unit owners

928 who previously consented to receive notice by electronic

929 transmission.

930 12. Within 45 days after receiving the structural

931 integrity reserve study, the association must provide the

932 division with a statement indicating that the study was

933 completed and that the association provided or made available

934 such study to each unit owner in accordance with this section.

935 Such statement must be provided to the division in the manner

936 established by the division using a form posted on the

937 division's website.

938 13. The division shall adopt by rule the form for the

939 structural integrity reserve study in coordination with the

940 Florida Building Commission.

941 Section 10. Subsections (8) through (13) of section

942 720.301, Florida Statutes, are renumbered as subsections (9)

943 through (14), respectively, and a new subsection (8) is added to

944 that section, to read:

945 720.301 Definitions.—As used in this chapter, the term:

946 (8) "Financial statements" means a comprehensive report

947 prepared in accordance with generally accepted accounting

948 principles which accurately reflects the financial condition and

949 operation of a homeowners' association for a specified reporting

950 period. This report must include, at a minimum, a balance sheet;

951 an income and expense statement; a budget comparison; and a

952 complete set of bank statements, including copies of check

953 images for all disbursements the association made during the

954 reporting period, for each bank account belonging to the

955 association.

956 Section 11. Subsection (2) of section 720.302, Florida

957 Statutes, is amended to read:

958 720.302 Purposes, scope, and application.—

959 (2) The Legislature recognizes that it is not in the best

960 interest of homeowners' associations or the individual

961 association members thereof to create or impose a bureau or

962 other agency of state government to regulate the affairs of

963 homeowners' associations. However, in accordance with s.

964 720.311, the Legislature finds that homeowners' associations and

965 their individual members will benefit from an expedited

966 alternative process for resolution of election and recall

967 disputes ~~and presuit mediation of other disputes involving~~

968 ~~covenant enforcement~~ and authorizes the department to hear,

969 administer, and determine these disputes as more fully set forth

970 in this chapter. Further, the Legislature recognizes that

971 certain contract rights have been created for the benefit of

972 homeowners' associations and members thereof before the

973 effective date of this act and that ss. 720.301-720.407 are not

974 intended to impair such contract rights, including, but not

975 limited to, the rights of the developer to complete the

976 community as initially contemplated.

977 Section 12. Subsections (11) through (15) of section

978 720.303, Florida Statutes, are renumbered as subsections (12)

979 through (16), respectively, subsection (1) and paragraph (i) of

980 subsection (5) are amended, and a new subsection (11) is added

981 to that section, to read:

982 720.303 Association powers and duties; meetings of board;

983 official records; budgets; financial reporting; association

984 funds; recalls.—

985 (1) POWERS AND DUTIES.—

986 (a) An association that operates a community as defined in

987 s. 720.301 must be operated by an association that is a Florida

988 corporation. After October 1, 1995, the association must be

989 incorporated and the initial governing documents must be

990 recorded in the official records of the county in which the

991 community is located. An association may operate more than one

992 community.

993 (b) The officers and directors of an association are

994 subject to s. 617.0830 and have a fiduciary relationship to the

995 members who are served by the association.

996 (c) The powers and duties of an association include those

997 set forth in this chapter and, except as expressly limited or

998 restricted in this chapter, those set forth in the governing

999 documents.

1000 1. Each association formed on or after July 1, 2026, must

1001 include the following statement in the governing documents:

1003 This association and the association's governing

1004 documents are governed by the Florida Homeowners'

1005 Association Act, as amended from time to time.

1007 2. By January 1, 2027, each association in existence

1008 before July 1, 2026, must hold a meeting of the members in

1009 accordance with s. 720.306 to vote whether to amend the

1010 governing documents of the association to include the statement

1011 in subparagraph 1. The association must obtain the affirmative

1012 approval of two-thirds of the voting interests of the

1013 association at a meeting of the membership at which a quorum has

1014 been attained in order to amend the governing documents under

1015 this subparagraph.

1016 (d) After control of the association is obtained by

1017 members other than the developer, the association may institute,

1018 maintain, settle, or appeal actions or hearings in its name on

1019 behalf of all members concerning matters of common interest to

1020 the members, including, but not limited to, the common areas;

1021 ~~roof or~~ structural components of a building, or other

1022 improvements for which the association is responsible;

1023 mechanical, electrical, or plumbing elements serving an

1024 improvement or building for which the association is

1025 responsible; representations of the developer pertaining to any

1026 existing or proposed commonly used facility; and protest of ad

1027 valorem taxes on commonly used facilities. The association may

1028 defend actions in eminent domain or bring inverse condemnation

1029 actions. Before commencing litigation against any party in the

1030 name of the association involving amounts in controversy in

1031 excess of $100,000, the association must obtain the affirmative

1032 approval of a majority of the voting interests at a meeting of

1033 the membership at which a quorum has been attained. This

1034 paragraph ~~subsection~~ does not limit any statutory or common-law

1035 right of any individual member or class of members to bring any

1036 action without participation by the association.

1037 (e) A member does not have authority to act for the

1038 association by virtue of being a member. An association may have

1039 more than one class of members and may issue membership

1040 certificates.

1041 (f) An association of 15 or fewer parcel owners may

1042 enforce only the requirements of those deed restrictions

1043 established prior to the purchase of each parcel upon an

1044 affected parcel owner or owners.

1045 (5) INSPECTION AND COPYING OF RECORDS.—

1046 (i)1. If an association receives a subpoena or written

1047 request for records from a prosecuting agency as defined in s.

1048 112.531 or a law enforcement agency, the association must

1049 provide a copy of such records or otherwise make the records

1050 available for inspection and copying to a law enforcement agency

1051 or prosecuting agency within 5 business days after receipt of

1052 the subpoena or written request, unless otherwise specified by

1053 the law enforcement agency, prosecuting agency, or subpoena, or

1054 written request. An association must assist a law enforcement

1055 agency in its investigation to the extent permissible by law.

1056 2. A director or member of the board or association or a

1057 community association manager who willfully and knowingly fails

1058 to provide a copy of records, or otherwise fails to make the

1059 records available for inspection and copying, to a law

1060 enforcement agency or prosecuting agency as required under

1061 subparagraph 1. commits a misdemeanor of the second degree,

1062 punishable as provided in s. 775.082 or s. 775.083.

1063 (11) CONFLICTS OF INTEREST.—

1064 (a) A director, an officer, or a committee member of an

1065 association owes a duty of loyalty to the association and its

1066 members.

1067 (b) A conflict of interest exists when a director, an

1068 officer, or a committee member has a direct or an indirect

1069 financial interest in a transaction, contract, or decision under

1070 consideration by the association.

1071 (c) The director, officer, or committee member with a

1072 conflict of interest must disclose the nature and extent of the

1073 conflict in writing to the board before any discussion or vote

1074 occurs on the matter.

1075 (d) After disclosure of the conflict of interest, the

1076 conflicted director, officer, or committee member may not

1077 participate in any discussion or vote on the matter.

1078 (e) A transaction involving a conflict of interest is

1079 voidable by the association unless the transaction was approved

1080 by a majority of the voting interests of the association after

1081 full disclosure by the conflicted director, officer, or

1082 committee member has occurred.

1083 (f) Compensating or contracting with a director, an

1084 officer, or a committee member of the association, or an

1085 immediate family member thereof, creates a rebuttable

1086 presumption that a conflict of interest exists.

1087 (g) This subsection may not be waived or limited by the

1088 governing documents of the association.

1089 Section 13. Paragraph (b) of subsection (1) of section

1090 720.3035, Florida Statutes, is amended to read:

1091 720.3035 Architectural control covenants; parcel owner

1092 improvements; rights and privileges.—

1093 (1)

1094 (b) An association or any architectural, construction

1095 improvement, or other such similar committee of an association

1096 may not enforce or adopt a covenant, rule, or guideline that:

1097 1. Limits or places requirements on the interior of a

1098 structure that is not visible from the parcel's frontage or an

1099 adjacent parcel, an adjacent common area, or a community golf

1100 course.

1101 2. Requires the review and approval of plans and

1102 specifications for a central air-conditioning, refrigeration,

1103 heating, or ventilating system by the association or any

1104 architectural, construction improvement, or other such similar

1105 committee of an association, if such system is not visible from

1106 the parcel's frontage, an adjacent parcel, an adjacent common

1107 area, or a community golf course and is substantially similar to

1108 a system that is approved or recommended by the association or a

1109 committee thereof.

1110 3. Requires that a specific type of material be used on

1111 the building or rebuilding of a roof, provided the built or

1112 rebuilt roof appears to be substantially identical in shape and

1113 color to the roofing requirements created by the association or

1114 any architectural, construction improvement, or other similar

1115 committee of the association and that such roofing materials

1116 adhere to the roof systems recognized by the Florida Building

1117 Code which meet ASCE 7-22 standards pursuant to paragraph

1118 (6)(c).

1119 Section 14. Paragraph (h) of subsection (1) of section

1120 720.306, Florida Statutes, is amended to read:

1121 720.306 Meetings of members; voting and election

1122 procedures; amendments.—

1123 (1) QUORUM; AMENDMENTS.—

1124 (h)1. Except as otherwise provided in this paragraph, any

1125 governing document, or amendment to a governing document, that

1126 is enacted after July 1, 2021, and that prohibits or regulates

1127 rental agreements applies only to a parcel owner who acquires

1128 title to the parcel after the effective date of the governing

1129 document or amendment, or to a parcel owner who consents,

1130 individually or through a representative, to the governing

1131 document or amendment.

1132 2. Notwithstanding subparagraph 1., an association may

1133 amend its governing documents to prohibit or regulate rental

1134 agreements for a term of less than 6 months and may prohibit the

1135 rental of a parcel for more than three times in a calendar year,

1136 and such amendments shall apply to all parcel owners.

1137 3. This paragraph does not affect the amendment

1138 restrictions for associations of 15 or fewer parcel owners under

1139 s. 720.303(1)(f) ~~s. 720.303(1).~~

1140 4. For purposes of this paragraph, a change of ownership

1141 does not occur when a parcel owner conveys the parcel to an

1142 affiliated entity, when beneficial ownership of the parcel does

1143 not change, or when an heir becomes the parcel owner. For

1144 purposes of this subparagraph, the term "affiliated entity"

1145 means an entity that controls, is controlled by, or is under

1146 common control with the parcel owner or that becomes a parent or

1147 successor entity by reason of transfer, merger, consolidation,

1148 public offering, reorganization, dissolution or sale of stock,

1149 or transfer of membership partnership interests. For a

1150 conveyance to be recognized as one made to an affiliated entity,

1151 the entity must furnish to the association a document certifying

1152 that this subparagraph applies and provide any organizational

1153 documents for the parcel owner and the affiliated entity which

1154 support the representations in the certificate, as requested by

1155 the association.

1156 5. For purposes of this paragraph, a change of ownership

1157 does occur when, with respect to a parcel owner that is a

1158 business entity, every person that owned an interest in the real

1159 property at the time of the enactment of the amendment or rule

1160 conveys their interest in the real property to an unaffiliated

1161 entity.

1162 Section 15. Paragraph (g) is added to subsection (3) of

1163 section 720.3075, Florida Statutes, to read:

1164 720.3075 Prohibited clauses in association documents.—

1165 (3) Homeowners' association documents, including

1166 declarations of covenants, articles of incorporation, or bylaws,

1167 may not preclude:

1168 (g) A property owner from using any type of building

1169 material to build or rebuild his or her roof, provided the built

1170 or rebuilt roof appears to be substantially identical in shape

1171 and color to the roofing requirements created by the association

1172 or any architectural, construction improvement, or other similar

1173 committee of the association and that such roofing materials

1174 adhere to the roof systems recognized by the Florida Building

1175 Code which meet ASCE 7-22 standards pursuant to paragraph

1176 (6)(c).

1177 Section 16. Section 720.311, Florida Statutes, is amended

1178 to read:

1179 720.311 Dispute resolution.—

1180 (1) The Legislature finds that alternative dispute

1181 resolution has made progress in reducing court dockets and

1182 trials and in offering a more efficient, cost-effective option

1183 to litigation. The filing of any petition for arbitration tolls

1184 ~~or the serving of a demand for presuit mediation as provided for~~

1185 ~~in this section shall toll~~ the applicable statute of

1186 limitations. Any recall dispute filed with the department under

1187 s. 720.303(10) must ~~shall~~ be conducted by the department in

1188 accordance with ~~the provisions of~~ ss. 718.112(2)(l) and 718.1255

1189 and the rules adopted by the division. In addition, the

1190 department shall conduct binding arbitration of election

1191 disputes between a member and an association in accordance with

1192 s. 718.1255 and rules adopted by the division. Election disputes

1193 and recall disputes ~~are not eligible for presuit mediation;~~

1194 ~~these disputes~~ must be arbitrated by the department or filed in

1195 a court of competent jurisdiction. The arbitration proceeding

1196 must be conducted by a department arbitrator or by a private

1197 arbitrator certified by the department. At the conclusion of an

1198 arbitration proceeding, the department shall charge the parties

1199 a fee in an amount adequate to cover all costs and expenses

1200 incurred by the department in conducting the proceeding.

1201 Initially, the petitioner shall remit a filing fee of at least

1202 $200 to the department. The fees paid to the department shall

1203 become a recoverable cost in the arbitration proceeding, and the

1204 prevailing party in an arbitration proceeding shall recover its

1205 reasonable costs and attorney fees in an amount found reasonable

1206 by the arbitrator. The department shall adopt rules to

1207 effectuate the purposes of this section.

1208 ~~(2)(a) Disputes between an association and a parcel owner~~

1209 ~~regarding use of or changes to the parcel or the common areas~~

1210 ~~and other covenant enforcement disputes, disputes regarding~~

1211 ~~amendments to the association documents, disputes regarding~~

1212 ~~meetings of the board and committees appointed by the board,~~

1213 ~~membership meetings not including election meetings, and access~~

1214 ~~to the official records of the association shall be the subject~~

1215 ~~of a demand for presuit mediation served by an aggrieved party~~

1216 ~~before the dispute is filed in court. Presuit mediation~~

1217 ~~proceedings must be conducted in accordance with the applicable~~

1218 ~~Florida Rules of Civil Procedure, and these proceedings are~~

1219 ~~privileged and confidential to the same extent as court-ordered~~

1220 ~~mediation. Disputes subject to presuit mediation under this~~

1221 ~~section shall not include the collection of any assessment,~~

1222 ~~fine, or other financial obligation, including attorney's fees~~

1223 ~~and costs, claimed to be due or any action to enforce a prior~~

1224 ~~mediation settlement agreement between the parties. Also, in any~~

1225 ~~dispute subject to presuit mediation under this section where~~

1226 ~~emergency relief is required, a motion for temporary injunctive~~

1227 ~~relief may be filed with the court without first complying with~~

1228 ~~the presuit mediation requirements of this section. After any~~

1229 ~~issues regarding emergency or temporary relief are resolved, the~~

1230 ~~court may either refer the parties to a mediation program~~

1231 ~~administered by the courts or require mediation under this~~

1232 ~~section. An arbitrator or judge may not consider any information~~

1233 ~~or evidence arising from the presuit mediation proceeding except~~

1234 ~~in a proceeding to impose sanctions for failure to attend a~~

1235 ~~presuit mediation session or to enforce a mediated settlement~~

1236 ~~agreement. Persons who are not parties to the dispute may not~~

1237 ~~attend the presuit mediation conference without the consent of~~

1238 ~~all parties, except for counsel for the parties and a corporate~~

1239 ~~representative designated by the association. When mediation is~~

1240 ~~attended by a quorum of the board, such mediation is not a board~~

1241 ~~meeting for purposes of notice and participation set forth in s.~~

1242 ~~720.303. An aggrieved party shall serve on the responding party~~

1243 ~~a written demand to participate in presuit mediation in~~

1244 ~~substantially the following form:~~

1245 ~~STATUTORY OFFER TO PARTICIPATE~~

1246 ~~IN PRESUIT MEDIATION~~

1247 ~~The alleged aggrieved party, ................, hereby~~

1248 ~~demands that ................, as the responding~~

1249 ~~party, engage in mandatory presuit mediation in~~

1250 ~~connection with the following disputes, which by~~

1251 ~~statute are of a type that are subject to presuit~~

1252 ~~mediation:~~

1253 ~~(List specific nature of the dispute or disputes to be~~

1254 ~~mediated and the authority supporting a finding of a~~

1255 ~~violation as to each dispute.)~~

1256 ~~Pursuant to section 720.311, Florida Statutes, this~~

1257 ~~demand to resolve the dispute through presuit~~

1258 ~~mediation is required before a lawsuit can be filed~~

1259 ~~concerning the dispute. Pursuant to the statute, the~~

1260 ~~parties are required to engage in presuit mediation~~

1261 ~~with a neutral third-party mediator in order to~~

1262 ~~attempt to resolve this dispute without court action,~~

1263 ~~and the aggrieved party demands that you likewise~~

1264 ~~agree to this process. If you fail to participate in~~

1265 ~~the mediation process, suit may be brought against you~~

1266 ~~without further warning.~~

1267 ~~The process of mediation involves a supervised~~

1268 ~~negotiation process in which a trained, neutral third-~~

1269 ~~party mediator meets with both parties and assists~~

1270 ~~them in exploring possible opportunities for resolving~~

1271 ~~part or all of the dispute. By agreeing to participate~~

1272 ~~in presuit mediation, you are not bound in any way to~~

1273 ~~change your position. Furthermore, the mediator has no~~

1274 ~~authority to make any decisions in this matter or to~~

1275 ~~determine who is right or wrong and merely acts as a~~

1276 ~~facilitator to ensure that each party understands the~~

1277 ~~position of the other party and that all options for~~

1278 ~~reasonable settlement are fully explored.~~

1279 ~~If an agreement is reached, it shall be reduced to~~

1280 ~~writing and becomes a binding and enforceable~~

1281 ~~commitment of the parties. A resolution of one or more~~

1282 ~~disputes in this fashion avoids the need to litigate~~

1283 ~~these issues in court. The failure to reach an~~

1284 ~~agreement, or the failure of a party to participate in~~

1285 ~~the process, results in the mediator declaring an~~

1286 ~~impasse in the mediation, after which the aggrieved~~

1287 ~~party may proceed to court on all outstanding,~~

1288 ~~unsettled disputes. If you have failed or refused to~~

1289 ~~participate in the entire mediation process, you will~~

1290 ~~not be entitled to recover attorney's fees, even if~~

1291 ~~you prevail.~~

1292 ~~The aggrieved party has selected and hereby lists five~~

1293 ~~certified mediators who we believe to be neutral and~~

1294 ~~qualified to mediate the dispute. You have the right~~

1295 ~~to select any one of these mediators. The fact that~~

1296 ~~one party may be familiar with one or more of the~~

1297 ~~listed mediators does not mean that the mediator~~

1298 ~~cannot act as a neutral and impartial facilitator. Any~~

1299 ~~mediator who cannot act in this capacity is required~~

1300 ~~ethically to decline to accept engagement. The~~

1301 ~~mediators that we suggest, and their current hourly~~

1302 ~~rates, are as follows:~~

1303 ~~(List the names, addresses, telephone numbers, and~~

1304 ~~hourly rates of the mediators. Other pertinent~~

1305 ~~information about the background of the mediators may~~

1306 ~~be included as an attachment.)~~

1307 ~~You may contact the offices of these mediators to~~

1308 ~~confirm that the listed mediators will be neutral and~~

1309 ~~will not show any favoritism toward either party. The~~

1310 ~~Florida Supreme Court can provide you a list of~~

1311 ~~certified mediators.~~

1312 ~~Unless otherwise agreed by the parties, section~~

1313 ~~720.311(2)(b), Florida Statutes, requires that the~~

1314 ~~parties share the costs of presuit mediation equally,~~

1315 ~~including the fee charged by the mediator. An average~~

1316 ~~mediation may require three to four hours of the~~

1317 ~~mediator's time, including some preparation time, and~~

1318 ~~the parties would need to share equally the mediator's~~

1319 ~~fees as well as their own attorney's fees if they~~

1320 ~~choose to employ an attorney in connection with the~~

1321 ~~mediation. However, use of an attorney is not required~~

1322 ~~and is at the option of each party. The mediators may~~

1323 ~~require the advance payment of some or all of the~~

1324 ~~anticipated fees. The aggrieved party hereby agrees to~~

1325 ~~pay or prepay one-half of the mediator's estimated~~

1326 ~~fees and to forward this amount or such other~~

1327 ~~reasonable advance deposits as the mediator requires~~

1328 ~~for this purpose. Any funds deposited will be returned~~

1329 ~~to you if these are in excess of your share of the~~

1330 ~~fees incurred.~~

1331 ~~To begin your participation in presuit mediation to~~

1332 ~~try to resolve the dispute and avoid further legal~~

1333 ~~action, please sign below and clearly indicate which~~

1334 ~~mediator is acceptable to you. We will then ask the~~

1335 ~~mediator to schedule a mutually convenient time and~~

1336 ~~place for the mediation conference to be held. The~~

1337 ~~mediation conference must be held within ninety (90)~~

1338 ~~days of this date, unless extended by mutual written~~

1339 ~~agreement. In the event that you fail to respond~~

1340 ~~within 20 days from the date of this letter, or if you~~

1341 ~~fail to agree to at least one of the mediators that we~~

1342 ~~have suggested or to pay or prepay to the mediator~~

1343 ~~one-half of the costs involved, the aggrieved party~~

1344 ~~will be authorized to proceed with the filing of a~~

1345 ~~lawsuit against you without further notice and may~~

1346 ~~seek an award of attorney's fees or costs incurred in~~

1347 ~~attempting to obtain mediation.~~

1348 ~~Therefore, please give this matter your immediate~~

1349 ~~attention. By law, your response must be mailed by~~

1350 ~~certified mail, return receipt requested, and by~~

1351 ~~first-class mail to the address shown on this demand.~~

1352 ~~........................~~

1353 ~~........................~~

1354 ~~RESPONDING PARTY: YOUR SIGNATURE INDICATES YOUR~~

1355 ~~AGREEMENT TO THAT CHOICE.~~

1356 ~~AGREEMENT TO MEDIATE~~

1357 ~~The undersigned hereby agrees to participate in~~

1358 ~~presuit mediation and agrees to attend a mediation~~

1359 ~~conducted by the following mediator or mediators who~~

1360 ~~are listed above as someone who would be acceptable to~~

1361 ~~mediate this dispute:~~

1362 ~~(List acceptable mediator or mediators.)~~

1363 ~~I/we further agree to pay or prepay one-half of the~~

1364 ~~mediator's fees and to forward such advance deposits~~

1365 ~~as the mediator may require for this purpose.~~

1366 ~~........................~~

1367 ~~Signature of responding party #1~~

1368 ~~........................~~

1369 ~~Telephone contact information~~

1370 ~~........................~~

1371 ~~Signature and telephone contact information of~~

1372 ~~responding party #2 (if applicable)(if property is~~

1373 ~~owned by more than one person, all owners must sign)~~

1374 ~~(b) Service of the statutory demand to participate in~~

1375 ~~presuit mediation shall be effected by sending a letter in~~

1376 ~~substantial conformity with the above form by certified mail,~~

1377 ~~return receipt requested, with an additional copy being sent by~~

1378 ~~regular first-class mail, to the address of the responding party~~

1379 ~~as it last appears on the books and records of the association.~~

1380 ~~The responding party has 20 days from the date of the mailing of~~

1381 ~~the statutory demand to serve a response to the aggrieved party~~

1382 ~~in writing. The response shall be served by certified mail,~~

1383 ~~return receipt requested, with an additional copy being sent by~~

1384 ~~regular first-class mail, to the address shown on the statutory~~

1385 ~~demand. Notwithstanding the foregoing, once the parties have~~

1386 ~~agreed on a mediator, the mediator may reschedule the mediation~~

1387 ~~for a date and time mutually convenient to the parties. The~~

1388 ~~parties shall share the costs of presuit mediation equally,~~

1389 ~~including the fee charged by the mediator, if any, unless the~~

1390 ~~parties agree otherwise, and the mediator may require advance~~

1391 ~~payment of its reasonable fees and costs. The failure of any~~

1392 ~~party to respond to a demand or response, to agree upon a~~

1393 ~~mediator, to make payment of fees and costs within the time~~

1394 ~~established by the mediator, or to appear for a scheduled~~

1395 ~~mediation session without the approval of the mediator, shall~~

1396 ~~constitute the failure or refusal to participate in the~~

1397 ~~mediation process and shall operate as an impasse in the presuit~~

1398 ~~mediation by such party, entitling the other party to proceed in~~

1399 ~~court and to seek an award of the costs and fees associated with~~

1400 ~~the mediation. Additionally, notwithstanding the provisions of~~

1401 ~~any other law or document, persons who fail or refuse to~~

1402 ~~participate in the entire mediation process may not recover~~

1403 ~~attorney's fees and costs in subsequent litigation relating to~~

1404 ~~the dispute. If any presuit mediation session cannot be~~

1405 ~~scheduled and conducted within 90 days after the offer to~~

1406 ~~participate in mediation was filed, an impasse shall be deemed~~

1407 ~~to have occurred unless both parties agree to extend this~~

1408 ~~deadline.~~

1409 (2)(c) In ~~If presuit mediation as described in paragraph~~

1410 ~~(a) is not successful in resolving~~ all issues between the

1411 parties, the parties may file the ~~unresolved~~ dispute in a court

1412 of competent jurisdiction or elect to enter into binding or

1413 nonbinding arbitration pursuant to the procedures set forth in

1414 s. 718.1255 and rules adopted by the division, with the

1415 arbitration proceeding to be conducted by a department

1416 arbitrator or by a private arbitrator certified by the

1417 department. If all parties do not agree to arbitration

1418 ~~proceedings following an unsuccessful presuit mediation,~~ any

1419 party may file the dispute in court. A final order resulting

1420 from nonbinding arbitration is final and enforceable in the

1421 courts if a complaint for trial de novo is not filed in a court

1422 of competent jurisdiction within 30 days after entry of the

1423 order. As to any issue or dispute that is not resolved at

1424 arbitration ~~presuit mediation,~~ and as to any issue that is

1425 settled at arbitration ~~presuit mediation~~ but is thereafter

1426 subject to an action seeking enforcement of the ~~mediation~~

1427 settlement, the prevailing party in any subsequent arbitration

1428 or litigation proceeding may ~~shall be entitled to~~ seek recovery

1429 of all costs and attorney ~~attorney's~~ fees incurred in the

1430 arbitration ~~presuit mediation~~ process.

1431 (3)(d) An ~~A mediator or~~ arbitrator is ~~shall be~~ authorized

1432 to conduct ~~mediation or~~ arbitration under this section only if

1433 he or she has been certified as a circuit court civil ~~mediator~~

1434 or arbitrator, ~~respectively,~~ pursuant to the requirements

1435 established by the Florida Supreme Court. ~~Settlement agreements~~

1436 ~~resulting from mediation shall not have precedential value in~~

1437 ~~proceedings involving parties other than those participating in~~

1438 ~~the mediation to support either a claim or defense in other~~

1439 ~~disputes.~~

1440 ~~(e) The presuit mediation procedures provided by this~~

1441 ~~subsection may be used by a Florida corporation responsible for~~

1442 ~~the operation of a community in which the voting members are~~

1443 ~~parcel owners or their representatives, in which membership in~~

1444 ~~the corporation is not a mandatory condition of parcel~~

1445 ~~ownership, or which is not authorized to impose an assessment~~

1446 ~~that may become a lien on the parcel.~~

1447 Section 17. Section 720.319, Florida Statutes, is created

1448 to read:

1449 720.319 Dissolution of homeowners' association.—

1450 (1) This section may be cited as the "Homeowners'

1451 Association Dissolution and Accountability Act."

1452 (2) The Legislature finds that:

1453 (a) Homeowners' associations are created as authorized by

1454 general law and are subject to covenants that encumber the land

1455 and restrict the use of real property.

1456 (b) In some circumstances, the continued enforcement of

1457 those covenants may no longer serve the homeowners' or

1458 community's interest and it is the public policy of this state

1459 to provide by general law a method to preserve the value of the

1460 property interests and the rights of alienation thereof that

1461 homeowners have in their parcels before and after termination.

1462 (c) It is contrary to the public policy of this state to

1463 require the continued operation of a homeowners' association

1464 when such continuation is made impossible by law or regulation.

1465 (d) It is in the best interest of this state to provide

1466 for termination of the declaration of covenants in certain

1467 circumstances in order to:

1468 1. Prevent covenants from impairing the continued

1469 productive use of the property.

1470 2. Provide fair treatment and just compensation for parcel

1471 owners and preserve property values and the local property tax

1472 base.

1473 3. Preserve the state's long history of protecting

1474 homestead property rights by ensuring that such protection is

1475 extended to parcel owners whose parcel is their homestead in the

1476 context of a termination of a declaration of covenants for an

1477 association.

1478 (3) A homeowners' association may be terminated by a plan

1479 of termination that meets the requirements of this section and

1480 is approved by a community association court program under s.

1481 720.32.

1482 (4) A plan of termination is subject to the following

1483 conditions:

1484 (a) The total voting interests of the association must

1485 include all voting interests for the purpose of considering a

1486 plan of termination. A voting interest of the association may

1487 not be suspended for any reason when voting on termination under

1488 this section.

1489 (b) If the members reject a plan of termination, a

1490 subsequent plan of termination under this section may not be

1491 considered for at least 18 months after the date of the

1492 rejection.

1493 (c) A plan of termination must be approved by at least

1494 two-thirds of the total voting interests of the association.

1495 (d) A parcel owner desiring to reject a plan of

1496 termination must do so by either voting in person or by proxy to

1497 reject the plan or by delivering a written objection to the

1498 association before or at the meeting called under subsection

1499 (5).

1500 (5)(a) A parcel owner who wishes to terminate a

1501 homeowners' association in which he or she is a member must

1502 provide to the board of administration a petition for a plan of

1503 termination that is signed by at least 50 percent of the voting

1504 members of the association. The board must notify the city in

1505 which the homeowners' association is located in writing,

1506 including, but not limited to, through e-mail, that a plan of

1507 termination has begun and hold a meeting of the members within

1508 60 days after receipt of the signed petition. A voting interest

1509 of the association may not be suspended for any reason for

1510 purposes of signing the petition or determining whether the 50

1511 percent threshold for such petition has been met under this

1512 paragraph.

1513 (b) Notice of such meeting must be made in accordance with

1514 s. 720.303(2) and include the following information:

1515 1. A copy of the proposed plan of dissolution.

1516 2. An explanation of how the common areas and the assets

1517 of the association will be managed or transferred.

1518 3. The manner in which voting will take place.

1519 (c) If the board fails to call a meeting within the 60-day

1520 time period, any member may petition a community association

1521 court program under s. 720.32 or, if a community association

1522 court program does not exist in the judicial circuit in which

1523 the association is located, another court of competent

1524 jurisdiction for an order compelling compliance with this

1525 section.

1526 (6) If a plan of termination is approved, the board must

1527 submit such plan to the community association court program in

1528 the judicial circuit in which the association is located or, if

1529 a community association court program does not exist, another

1530 court of competent jurisdiction. The court shall examine the

1531 plan of termination and determine its procedural sufficiency

1532 and, within 45 days after receipt of the plan, notify the

1533 association by mail of any procedural deficiencies or that the

1534 plan is accepted. If notice is not provided within the 45-day

1535 time period, the plan of termination is deemed accepted. If the

1536 court determines that the conditions required by this section

1537 have been met and that the plan of termination complies with the

1538 procedural requirements of this section, the court must

1539 authorize the termination and the termination may proceed as

1540 authorized in this section.

1541 (7)(a) A plan of termination and the consents or joinders

1542 of parcel owners must be recorded in the public records of each

1543 county in which any portion of the association is located. The

1544 plan is effective only upon recordation or at a later date

1545 specified in the plan.

1546 (b) Upon recordation or at a later date specified in the

1547 plan of termination, title to the association property vests in

1548 a termination trustee. The board serves as such trustee unless

1549 another person is appointed in the plan of termination. If the

1550 board is not the termination trustee, the board must transfer

1551 any association property to such trustee. The termination

1552 trustee is vested with the powers given by the declaration and

1553 bylaws of the association and subsection (9). If the board is

1554 unable, unwilling, or fails to act as termination trustee, a

1555 parcel owner may petition the community association court

1556 program to appoint a termination trustee.

1557 (8) If the board fails to hold the meeting under

1558 subsection (5), obstructs the termination process, or refuses to

1559 record the decision of the members to terminate, a member may

1560 file a petition with the community association court program in

1561 the judicial circuit in which the association is located or, if

1562 a community association court program does not exist, another

1563 court of competent jurisdiction. A community association court

1564 program may do all of the following:

1565 (a) Verify compliance with the procedural requirements of

1566 this section and all statutory voting requirements.

1567 (b) Order the Department of State to dissolve the

1568 homeowners' association.

1569 (c) Appoint a termination trustee to manage the

1570 distribution of assets and resolution of liabilities.

1571 (9) The approval of the plan of termination does not

1572 terminate the board of administration, which shall continue in

1573 existence following approval of the plan of termination with all

1574 powers and duties such board had before approval of the plan.

1575 Notwithstanding any provision to the contrary in the declaration

1576 or bylaws, after approval of the plan of termination the board

1577 must:

1578 (a) Employ directors, agents, attorneys, and other

1579 professionals to liquidate or conclude the board's affairs.

1580 (b) Conduct the affairs of the association as necessary

1581 for the liquidation or termination.

1582 (c) Carry out contracts and collect, pay, and settle debts

1583 and claims for and against the association.

1584 (d) Defend suits brought against the association.

1585 (e) Sue in the name of the association for all sums due or

1586 owed to the association or to recover any association property.

1587 (f) Perform any act necessary to maintain, repair, or

1588 demolish unsafe or uninhabitable improvements or other

1589 association property in compliance with applicable codes.

1590 (g) Sell at public or private sale or exchange, convey, or

1591 otherwise dispose of assets of the association for an amount

1592 deemed to be in the best interests of the association, and

1593 execute bills of sale and deeds of conveyance in the name of the

1594 association.

1595 (h) Collect and receive rents, profits, accounts

1596 receivable, income, maintenance fees, special assessments, or

1597 insurance proceeds for the association.

1598 (i) Contract and do anything in the name of the

1599 association which is proper or convenient to terminate the

1600 affairs of the association.

1601 (10)(a) All remaining association assets after the payment

1602 of any lawful debts must be distributed equally among members or

1603 as otherwise provided in the plan of termination.

1604 (b) A member may not be subject to personal liability for

1605 unpaid obligations beyond the member's regular assessments or

1606 special assessments that existed before the vote for

1607 termination.

1608 (11)(a) The following actions by an association or the

1609 officers or directors thereof are unlawful:

1610 1. Failing to call or notice a meeting after receipt of a

1611 valid petition for a plan of termination.

1612 2. Spending association funds to campaign for or against

1613 the plan of termination.

1614 3. Concealing any financial or property records relevant

1615 to the plan of termination.

1616 (b) An officer or a director who violates paragraph (a) is

1617 subject to any of the following:

1618 1. A civil penalty of up to $5,000 per violation.

1619 2. Removal from office by court order.

1620 3. Personal liability for legal fees incurred by the

1621 petitioners.

1622 Section 18. Section 720.32, Florida Statutes, is created

1623 to read:

1624 720.32 Community association court program.—

1625 (1) It is the intent of the Legislature to encourage and

1626 support the judicial circuits of the state to create and

1627 maintain a community association court program in each judicial

1628 circuit. The purpose of a community association court program is

1629 to provide an optional, voluntary process for community

1630 associations and the members thereof to address disputes as an

1631 alternative to entering into mediation or arbitration. It is the

1632 intent of the Legislature that this section provide a detailed

1633 statewide standard for the creation, operation, and procedures

1634 for community association court programs.

1635 (2) A circuit court may create and administer a community

1636 association court program. The chief judge shall designate at

1637 least one judge to preside over the community association court

1638 program. The chief judge may issue administrative orders

1639 concerning the community association court program.

1640 (3) The community association court program has

1641 jurisdiction over disputes, including any related termination or

1642 enforcement proceedings, arising under any of the following:

1643 (a) Chapter 718, the Condominium Act.

1644 (b) Chapter 719, the Cooperative Act.

1645 (c) Chapter 720, the Homeowners' Association Act.

1646 (4) The community association court program may do all of

1647 the following:

1648 (a) Enforce all statutory rights of unit owners and parcel

1649 owners.

1650 (b) Verify and compel compliance with all statutory

1651 requirements by community associations, boards of

1652 administration, and officers or directors of such boards.

1653 (c) Order the Department of State to dissolve a community

1654 association.

1655 (d) Appoint a termination trustee to manage the

1656 distribution of association assets and resolution of

1657 liabilities.

1658 (e) Impose civil penalties for violations of statutory

1659 rights.

1660 (f) Issue injunctive relief as appropriate.

1661 (g) Award reasonable attorney fees and costs as

1662 appropriate.

1663 (5) By January 1 of each year, the chief judge in each

1664 judicial circuit in which a community association court program

1665 is created shall submit to the President of the Senate and the

1666 Speaker of the House of Representatives a report that summarizes

1667 the caseload of each community association court program and the

1668 outcomes of such caseload.

1669 (6) The Office of the State Courts Administrator shall

1670 establish procedure, staffing, and reporting requirements for

1671 the operation of the community association court program.

1672 (7) The costs associated with the creation, operation, and

1673 compliance and enforcement duties of the community association

1674 court program shall be funded as authorized by and consistent

1675 with funding appropriated in the General Appropriations Act.

1676 (8) Funds specifically appropriated by an operating

1677 appropriation or a nonoperating transfer from the Division of

1678 Florida Condominiums, Timeshares, and Mobile Homes Trust Fund to

1679 the state court system to support judicial functions relating to

1680 community associations which remain unencumbered as of June 30

1681 or undisbursed as of September 30 each year shall revert to the

1682 Division of Florida Condominiums, Timeshares, and Mobile Homes

1683 Trust Fund.

1684 (9) This section does not apply to timeshare condominium

1685 associations or timeshare cooperative associations unless the

1686 facilities of such associations include homestead condominium

1687 units or homestead cooperative units.

1688 Section 19. Subsections (11), (13), and (17) of section

1689 26.031, Florida Statutes, are amended to read:

1690 26.031 Judicial circuits; number of judges.—The number of

1691 circuit judges in each circuit shall be as follows:

1692 JUDICIAL CIRCUIT TOTAL

1693 (11) Eleventh..........................................8583

1694 (13) Thirteenth........................................4645

1695 (17) Seventeenth.......................................5958

1696 Section 20. The amendments made by this act to s. 26.031,

1697 Florida Statutes, are for the purpose of authorizing additional

1698 judgeships specifically for the community association court

1699 program created in s. 720.32, Florida Statutes, by this act.

1700 Section 21. Paragraph (d) of subsection (1) of section

1701 34.01, Florida Statutes, is amended to read:

1702 34.01 Jurisdiction of county court.—

1703 (1) County courts shall have original jurisdiction:

1704 (d) Of disputes occurring in ~~the~~ homeowners' associations

1705 ~~as described in s. 720.311(2)(a),~~ which shall be concurrent with

1706 jurisdiction of the circuit courts.

1707 Section 22. Paragraph (a) of subsection (1) of section

1708 336.125, Florida Statutes, is amended to read:

1709 336.125 Closing and abandonment of roads; optional

1710 conveyance to homeowners' association; traffic control

1711 jurisdiction.—

1712 (1)(a) In addition to the authority provided in s. 336.12,

1713 the governing body of the county may abandon the roads and

1714 rights-of-way dedicated in a recorded residential subdivision

1715 plat and simultaneously convey the county's interest in such

1716 roads, rights-of-way, and appurtenant drainage facilities to a

1717 homeowners' association for the subdivision, if the following

1718 conditions have been met:

1719 1. The homeowners' association has requested the

1720 abandonment and conveyance in writing for the purpose of

1721 converting the subdivision to a gated neighborhood with

1722 restricted public access.

1723 2. No fewer than four-fifths of the owners of record of

1724 property located in the subdivision have consented in writing to

1725 the abandonment and simultaneous conveyance to the homeowners'

1726 association.

1727 3. The homeowners' association is both a corporation not

1728 for profit organized and in good standing under chapter 617, and

1729 a "homeowners' association" as defined in s. 720.301 s.

1730 ~~720.301(9)~~ with the power to levy and collect assessments for

1731 routine and periodic major maintenance and operation of street

1732 lighting, drainage, sidewalks, and pavement in the subdivision.

1733 4. The homeowners' association has entered into and

1734 executed such agreements, covenants, warranties, and other

1735 instruments; has provided, or has provided assurance of, such

1736 funds, reserve funds, and funding sources; and has satisfied

1737 such other requirements and conditions as may be established or

1738 imposed by the county with respect to the ongoing operation,

1739 maintenance, and repair and the periodic reconstruction or

1740 replacement of the roads, drainage, street lighting, and

1741 sidewalks in the subdivision after the abandonment by the

1742 county.

1743 Section 23. Subsection (2) of section 558.002, Florida

1744 Statutes, is amended to read:

1745 558.002 Definitions.—As used in this chapter, the term:

1746 (2) "Association" has the same meaning as in s. 718.103,

1747 s. 719.103(2), s. 720.301(10) ~~s. 720.301(9),~~ or s. 723.075.

1748 Section 24. Subsection (6) of section 617.0601, Florida

1749 Statutes, is amended to read:

1750 617.0601 Members, generally.—

1751 (6) Subsections (1), (2), (3), and (4) do not apply to a

1752 corporation that is an association as defined in s. 720.301(10)

1753 ~~s. 720.301.~~

1754 Section 25. Subsection (6) of section 617.0701, Florida

1755 Statutes, is amended to read:

1756 617.0701 Meetings of members, generally; failure to hold

1757 annual meeting; special meeting; consent to corporate actions

1758 without meetings; waiver of notice of meetings.—

1759 (6) Subsections (1) and (3) do not apply to any

1760 corporation that is an association as defined in s. 720.301(10)

1761 ~~s. 720.301;~~ a corporation regulated by chapter 718, chapter 719,

1762 chapter 720, chapter 721, or chapter 723; or a corporation where

1763 membership in such corporation is required pursuant to a

1764 document recorded in the county property records.

1765 Section 26. Subsection (7) of section 617.0721, Florida

1766 Statutes, is amended to read:

1767 617.0721 Voting by members.—

1768 (7) Subsections (1), (5), and (6) do not apply to a

1769 corporation that is an association, as defined in s. 720.301(10)

1770 ~~s. 720.301,~~ or a corporation regulated by chapter 718 or chapter

1771 719.

1772 Section 27. Section 617.0725, Florida Statutes, is amended

1773 to read:

1774 617.0725 Quorum.—An amendment to the articles of

1775 incorporation or the bylaws which adds, changes, or deletes a

1776 greater or lesser quorum or voting requirement must meet the

1777 same quorum or voting requirement and be adopted by the same

1778 vote and voting groups required to take action under the quorum

1779 and voting requirements then in effect or proposed to be

1780 adopted, whichever is greater. This section does not apply to

1781 any corporation that is an association, as defined in s.

1782 720.301(10) ~~s. 720.301(9),~~ or any corporation regulated under

1783 chapter 718 or chapter 719.

1784 Section 28. Subsection (3) of section 617.0808, Florida

1785 Statutes, is amended to read:

1786 617.0808 Removal of directors.—

1787 (3) This section does not apply to any corporation that is

1788 an association, as defined in s. 720.301(10) ~~s. 720.301,~~ or a

1789 corporation regulated under chapter 718 or chapter 719.

1790 Section 29. Section 617.1606, Florida Statutes, is amended

1791 to read:

1792 617.1606 Access to records.—Sections 617.1601-617.1605 do

1793 not apply to a corporation that is an association, as defined in

1794 s. 720.301(10) ~~s. 720.301,~~ or a corporation regulated under

1795 chapter 718 or chapter 719.

1796 Section 30. Paragraph (b) of subsection (1) of section

1797 718.116, Florida Statutes, is amended to read:

1798 718.116 Assessments; liability; lien and priority;

1799 interest; collection.—

1800 (1)

1801 (b)1. The liability of a first mortgagee or its successor

1802 or assignees who acquire title to a unit by foreclosure or by

1803 deed in lieu of foreclosure for the unpaid assessments that

1804 became due before the mortgagee's acquisition of title is

1805 limited to the lesser of:

1806 a. The unit's unpaid common expenses and regular periodic

1807 assessments which accrued or came due during the 12 months

1808 immediately preceding the acquisition of title and for which

1809 payment in full has not been received by the association; or

1810 b. One percent of the original mortgage debt. The

1811 provisions of this paragraph apply only if the first mortgagee

1812 joined the association as a defendant in the foreclosure action.

1813 Joinder of the association is not required if, on the date the

1814 complaint is filed, the association was dissolved or did not

1815 maintain an office or agent for service of process at a location

1816 which was known to or reasonably discoverable by the mortgagee.

1817 2. An association, or its successor or assignee, that

1818 acquires title to a unit through the foreclosure of its lien for

1819 assessments is not liable for any unpaid assessments, late fees,

1820 interest, or reasonable attorney's fees and costs that came due

1821 before the association's acquisition of title in favor of any

1822 other association, as defined in s. 718.103 or s. 720.301(10) s.

1823 ~~720.301(9),~~ which holds a superior lien interest on the unit.

1824 This subparagraph is intended to clarify existing law.

1825 Section 31. Paragraph (d) of subsection (1) and paragraph

1826 (e) of subsection (2) of section 718.503, Florida Statutes, are

1827 amended to read:

1828 718.503 Developer disclosure prior to sale; nondeveloper

1829 unit owner disclosure prior to sale; voidability.—

1830 (1) DEVELOPER DISCLOSURE.—

1831 (d) Milestone inspection, turnover inspection report, or

1832 structural integrity reserve study.—If the association is

1833 required to have completed a milestone inspection as described

1834 in s. 553.899, a turnover inspection report for a turnover

1835 inspection performed on or after July 1, 2023, or a structural

1836 integrity reserve study, and the association has not completed

1837 the milestone inspection, the turnover inspection report, or the

1838 structural integrity reserve study, each contract entered into

1839 after December 31, 2024, for the sale of a residential unit

1840 shall contain in conspicuous type a statement indicating that

1841 the association is required to have a milestone inspection, a

1842 turnover inspection report, or a structural integrity reserve

1843 study and has not completed such inspection, report, or study,

1844 as appropriate. If the association is not required to have a

1845 milestone inspection as described in s. 553.899 or a structural

1846 integrity reserve study, each contract entered into after

1847 December 31, 2024, for the sale of a residential unit shall

1848 contain in conspicuous type a statement indicating that the

1849 association is not required to have a milestone inspection or a

1850 structural integrity reserve study, as appropriate. If the

1851 association has completed a milestone inspection as described in

1852 s. 553.899, a turnover inspection report for a turnover

1853 inspection performed on or after July 1, 2023, or a structural

1854 integrity reserve study, each contract entered into after

1855 December 31, 2024, for the sale of a residential unit shall

1856 contain in conspicuous type:

1857 1. A clause which states: THE BUYER HEREBY ACKNOWLEDGES

1858 THAT BUYER HAS BEEN PROVIDED A CURRENT COPY OF THE INSPECTOR-

1859 PREPARED SUMMARY OF THE MILESTONE INSPECTION REPORT AS DESCRIBED

1860 IN SECTION 553.899, FLORIDA STATUTES, IF APPLICABLE; A COPY OF

1861 THE TURNOVER INSPECTION REPORT DESCRIBED IN SECTION

1862 718.301(4)(p) AND (q), FLORIDA STATUTES, IF APPLICABLE; AND A

1863 COPY OF THE ASSOCIATION'S MOST RECENT STRUCTURAL INTEGRITY

1864 RESERVE STUDY DESCRIBED IN SECTIONS 718.103(29) ~~718.103(26)~~ AND

1865 718.112(2)(g), FLORIDA STATUTES, IF APPLICABLE, MORE THAN 15

1866 DAYS, EXCLUDING SATURDAYS, SUNDAYS, AND LEGAL HOLIDAYS, BEFORE

1867 EXECUTION OF THIS CONTRACT; and

1868 2. A clause which states: THIS AGREEMENT IS VOIDABLE BY

1869 BUYER BY DELIVERING WRITTEN NOTICE OF THE BUYER'S INTENTION TO

1870 CANCEL WITHIN 15 DAYS, EXCLUDING SATURDAYS, SUNDAYS, AND LEGAL

1871 HOLIDAYS, AFTER THE DATE OF EXECUTION OF THIS AGREEMENT BY THE

1872 BUYER AND RECEIPT BY BUYER OF A CURRENT COPY OF THE INSPECTOR-

1873 PREPARED SUMMARY OF THE MILESTONE INSPECTION REPORT AS DESCRIBED

1874 IN SECTION 553.899, FLORIDA STATUTES, IF APPLICABLE; A COPY OF

1875 THE TURNOVER INSPECTION REPORT DESCRIBED IN SECTION

1876 718.301(4)(p) AND (q), FLORIDA STATUTES, IF APPLICABLE; AND A

1877 COPY OF THE ASSOCIATION'S MOST RECENT STRUCTURAL INTEGRITY

1878 RESERVE STUDY DESCRIBED IN SECTIONS 718.103(29) ~~718.103(26)~~ AND

1879 718.112(2)(g), FLORIDA STATUTES, IF APPLICABLE. ANY PURPORTED

1880 WAIVER OF THESE VOIDABILITY RIGHTS SHALL BE OF NO EFFECT. BUYER

1881 MAY EXTEND THE TIME FOR CLOSING FOR A PERIOD OF NOT MORE THAN 15

1882 DAYS, EXCLUDING SATURDAYS, SUNDAYS, AND LEGAL HOLIDAYS, AFTER

1883 THE BUYER RECEIVES A CURRENT COPY OF THE INSPECTOR-PREPARED

1884 SUMMARY OF THE MILESTONE INSPECTION REPORT AS DESCRIBED IN

1885 SECTION 553.899, FLORIDA STATUTES; A COPY OF THE TURNOVER

1886 INSPECTION REPORT DESCRIBED IN SECTION 718.301(4)(p) AND (q),

1887 FLORIDA STATUTES; OR A COPY OF THE ASSOCIATION'S MOST RECENT

1888 STRUCTURAL INTEGRITY RESERVE STUDY DESCRIBED IN SECTIONS

1889 718.103(29) ~~718.103(26)~~ AND 718.112(2)(g), FLORIDA STATUTES, IF

1890 REQUESTED IN WRITING. BUYER'S RIGHT TO VOID THIS AGREEMENT SHALL

1891 TERMINATE AT CLOSING.

1893 A contract that does not conform to the requirements of this

1894 paragraph is voidable at the option of the purchaser before

1895 closing.

1896 (2) NONDEVELOPER DISCLOSURE.—

1897 (e) If the association is required to have completed a

1898 milestone inspection as described in s. 553.899, a turnover

1899 inspection report for a turnover inspection performed on or

1900 after July 1, 2023, or a structural integrity reserve study, and

1901 the association has not completed the milestone inspection, the

1902 turnover inspection report, or the structural integrity reserve

1903 study, each contract entered into after December 31, 2024, for

1904 the sale of a residential unit shall contain in conspicuous type

1905 a statement indicating that the association is required to have

1906 a milestone inspection, a turnover inspection report, or a

1907 structural integrity reserve study and has not completed such

1908 inspection, report, or study, as appropriate. If the association

1909 is not required to have a milestone inspection as described in

1910 s. 553.899 or a structural integrity reserve study, each

1911 contract entered into after December 31, 2024, for the sale of a

1912 residential unit shall contain in conspicuous type a statement

1913 indicating that the association is not required to have a

1914 milestone inspection or a structural integrity reserve study, as

1915 appropriate. If the association has completed a milestone

1916 inspection as described in s. 553.899, a turnover inspection

1917 report for a turnover inspection performed on or after July 1,

1918 2023, or a structural integrity reserve study, each contract

1919 entered into after December 31, 2024, for the resale of a

1920 residential unit shall contain in conspicuous type:

1921 1. A clause which states: THE BUYER HEREBY ACKNOWLEDGES

1922 THAT BUYER HAS BEEN PROVIDED A CURRENT COPY OF THE INSPECTOR-

1923 PREPARED SUMMARY OF THE MILESTONE INSPECTION REPORT AS DESCRIBED

1924 IN SECTION 553.899, FLORIDA STATUTES, IF APPLICABLE; A COPY OF

1925 THE TURNOVER INSPECTION REPORT DESCRIBED IN SECTION

1926 718.301(4)(p) AND (q), FLORIDA STATUTES, IF APPLICABLE; AND A

1927 COPY OF THE ASSOCIATION'S MOST RECENT STRUCTURAL INTEGRITY

1928 RESERVE STUDY DESCRIBED IN SECTIONS 718.103(29) ~~718.103(26)~~ AND

1929 718.112(2)(g), FLORIDA STATUTES, IF APPLICABLE, MORE THAN 7

1930 DAYS, EXCLUDING SATURDAYS, SUNDAYS, AND LEGAL HOLIDAYS, BEFORE

1931 EXECUTION OF THIS CONTRACT; and

1932 2. A clause which states: THIS AGREEMENT IS VOIDABLE BY

1933 BUYER BY DELIVERING WRITTEN NOTICE OF THE BUYER'S INTENTION TO

1934 CANCEL WITHIN 7 DAYS, EXCLUDING SATURDAYS, SUNDAYS, AND LEGAL

1935 HOLIDAYS, AFTER THE DATE OF EXECUTION OF THIS AGREEMENT BY THE

1936 BUYER AND RECEIPT BY BUYER OF A CURRENT COPY OF THE INSPECTOR-

1937 PREPARED SUMMARY OF THE MILESTONE INSPECTION REPORT AS DESCRIBED

1938 IN SECTION 553.899, FLORIDA STATUTES, IF APPLICABLE; A COPY OF

1939 THE TURNOVER INSPECTION REPORT DESCRIBED IN SECTION

1940 718.301(4)(p) AND (q), FLORIDA STATUTES, IF APPLICABLE; AND A

1941 COPY OF THE ASSOCIATION'S MOST RECENT STRUCTURAL INTEGRITY

1942 RESERVE STUDY DESCRIBED IN SECTIONS 718.103(29) ~~718.103(26)~~ AND

1943 718.112(2)(g), FLORIDA STATUTES, IF APPLICABLE. ANY PURPORTED

1944 WAIVER OF THESE VOIDABILITY RIGHTS SHALL BE OF NO EFFECT. BUYER

1945 MAY EXTEND THE TIME FOR CLOSING FOR A PERIOD OF NOT MORE THAN 7

1946 DAYS, EXCLUDING SATURDAYS, SUNDAYS, AND LEGAL HOLIDAYS, AFTER

1947 THE BUYER RECEIVES A CURRENT COPY OF THE INSPECTOR-PREPARED

1948 SUMMARY OF THE MILESTONE INSPECTION REPORT AS DESCRIBED IN

1949 SECTION 553.899, FLORIDA STATUTES; A COPY OF THE TURNOVER

1950 INSPECTION REPORT DESCRIBED IN SECTION 718.301(4)(p) AND (q),

1951 FLORIDA STATUTES; OR A COPY OF THE ASSOCIATION'S MOST RECENT

1952 STRUCTURAL INTEGRITY RESERVE STUDY DESCRIBED IN SECTIONS

1953 718.103(29) ~~718.103(26)~~ AND 718.112(2)(g), FLORIDA STATUTES, IF

1954 REQUESTED IN WRITING. BUYER'S RIGHT TO VOID THIS AGREEMENT SHALL

1955 TERMINATE AT CLOSING.

1957 A contract that does not conform to the requirements of this

1958 paragraph is voidable at the option of the purchaser before

1959 closing.

1960 Section 32. Paragraph (d) of subsection (1) and paragraph

1961 (d) of subsection (2) of section 719.503, Florida Statutes, are

1962 amended to read:

1963 719.503 Disclosure prior to sale.—

1964 (1) DEVELOPER DISCLOSURE.—

1965 (d) Milestone inspection, turnover inspection report, or

1966 structural integrity reserve study.—If the association is

1967 required to have completed a milestone inspection as described

1968 in s. 553.899, a turnover inspection report for a turnover

1969 inspection performed on or after July 1, 2023, or a structural

1970 integrity reserve study, and the association has not completed

1971 the milestone inspection, the turnover inspection report, or the

1972 structural integrity reserve study, each contract entered into

1973 after December 31, 2024, for the sale of a residential unit

1974 shall contain in conspicuous type a statement indicating that

1975 the association is required to have a milestone inspection, a

1976 turnover inspection report, or a structural integrity reserve

1977 study and has not completed such inspection, report, or study,

1978 as appropriate. If the association is not required to have a

1979 milestone inspection as described in s. 553.899 or a structural

1980 integrity reserve study, each contract entered into after

1981 December 31, 2024, for the sale of a residential unit shall

1982 contain in conspicuous type a statement indicating that the

1983 association is not required to have a milestone inspection or a

1984 structural integrity reserve study, as appropriate. If the

1985 association has completed a milestone inspection as described in

1986 s. 553.899, a turnover inspection report for a turnover

1987 inspection performed on or after July 1, 2023, or a structural

1988 integrity reserve study, each contract entered into after

1989 December 31, 2024, for the sale of a residential unit shall

1990 contain in conspicuous type:

1991 1. A clause which states: THE BUYER HEREBY ACKNOWLEDGES

1992 THAT BUYER HAS BEEN PROVIDED A CURRENT COPY OF THE INSPECTOR-

1993 PREPARED SUMMARY OF THE MILESTONE INSPECTION REPORT AS DESCRIBED

1994 IN SECTION 553.899, FLORIDA STATUTES, IF APPLICABLE; A COPY OF

1995 THE TURNOVER INSPECTION REPORT DESCRIBED IN SECTION

1996 719.301(4)(p) AND (q), FLORIDA STATUTES, IF APPLICABLE; AND A

1997 COPY OF THE ASSOCIATION'S MOST RECENT STRUCTURAL INTEGRITY

1998 RESERVE STUDY DESCRIBED IN SECTIONS 719.103(25) ~~719.103(24)~~ AND

1999 719.106(1)(k), FLORIDA STATUTES, IF APPLICABLE, MORE THAN 15

2000 DAYS, EXCLUDING SATURDAYS, SUNDAYS, AND LEGAL HOLIDAYS, BEFORE

2001 EXECUTION OF THIS CONTRACT; and

2002 2. A clause which states: THIS AGREEMENT IS VOIDABLE BY

2003 BUYER BY DELIVERING WRITTEN NOTICE OF THE BUYER'S INTENTION TO

2004 CANCEL WITHIN 15 DAYS, EXCLUDING SATURDAYS, SUNDAYS, AND LEGAL

2005 HOLIDAYS, AFTER THE DATE OF EXECUTION OF THIS AGREEMENT BY THE

2006 BUYER AND RECEIPT BY BUYER OF A CURRENT COPY OF THE INSPECTOR-

2007 PREPARED SUMMARY OF THE MILESTONE INSPECTION REPORT AS DESCRIBED

2008 IN SECTION 553.899, FLORIDA STATUTES, IF APPLICABLE; A COPY OF

2009 THE TURNOVER INSPECTION REPORT DESCRIBED IN SECTION

2010 719.301(4)(p) AND (q), FLORIDA STATUTES, IF APPLICABLE; AND A

2011 COPY OF THE ASSOCIATION'S MOST RECENT STRUCTURAL INTEGRITY

2012 RESERVE STUDY DESCRIBED IN SECTIONS 719.103(25) ~~719.103(24)~~ AND

2013 719.106(1)(k), FLORIDA STATUTES, IF APPLICABLE. ANY PURPORTED

2014 WAIVER OF THESE VOIDABILITY RIGHTS SHALL BE OF NO EFFECT. BUYER

2015 MAY EXTEND THE TIME FOR CLOSING FOR A PERIOD OF NOT MORE THAN 15

2016 DAYS, EXCLUDING SATURDAYS, SUNDAYS, AND LEGAL HOLIDAYS, AFTER

2017 THE BUYER RECEIVES A CURRENT COPY OF THE INSPECTOR-PREPARED

2018 SUMMARY OF THE MILESTONE INSPECTION REPORT AS DESCRIBED IN

2019 SECTION 553.899, FLORIDA STATUTES; A COPY OF THE TURNOVER

2020 INSPECTION REPORT DESCRIBED IN SECTION 719.301(4)(p) AND (q),

2021 FLORIDA STATUTES; OR A COPY OF THE ASSOCIATION'S MOST RECENT

2022 STRUCTURAL INTEGRITY RESERVE STUDY DESCRIBED IN SECTIONS

2023 719.103(25) ~~719.103(24)~~ AND 719.106(1)(k), FLORIDA STATUTES, IF

2024 REQUESTED IN WRITING. BUYER'S RIGHT TO VOID THIS AGREEMENT SHALL

2025 TERMINATE AT CLOSING.

2027 A contract that does not conform to the requirements of this

2028 paragraph is voidable at the option of the purchaser before

2029 closing.

2030 (2) NONDEVELOPER DISCLOSURE.—

2031 (d) If the association is required to have completed a

2032 milestone inspection as described in s. 553.899, a turnover

2033 inspection report for a turnover inspection performed on or

2034 after July 1, 2023, or a structural integrity reserve study, and

2035 the association has not completed the milestone inspection, the

2036 turnover inspection report, or the structural integrity reserve

2037 study, each contract entered into after December 31, 2024, for

2038 the sale of a residential unit shall contain in conspicuous type

2039 a statement indicating that the association is required to have

2040 a milestone inspection, a turnover inspection report, or a

2041 structural integrity reserve study and has not completed such

2042 inspection, report, or study, as appropriate. If the association

2043 is not required to have a milestone inspection as described in

2044 s. 553.899 or a structural integrity reserve study, each

2045 contract entered into after December 31, 2024, for the sale of a

2046 residential unit shall contain in conspicuous type a statement

2047 indicating that the association is not required to have a

2048 milestone inspection or a structural integrity reserve study, as

2049 appropriate. If the association has completed a milestone

2050 inspection as described in s. 553.899, a turnover inspection

2051 report for a turnover inspection performed on or after July 1,

2052 2023, or a structural integrity reserve study, each contract

2053 entered into after December 31, 2024, for the resale of a

2054 residential unit shall contain in conspicuous type:

2055 1. A clause which states: THE BUYER HEREBY ACKNOWLEDGES

2056 THAT BUYER HAS BEEN PROVIDED A CURRENT COPY OF THE INSPECTOR-

2057 PREPARED SUMMARY OF THE MILESTONE INSPECTION REPORT AS DESCRIBED

2058 IN SECTION 553.899, FLORIDA STATUTES, IF APPLICABLE; A COPY OF

2059 THE TURNOVER INSPECTION REPORT DESCRIBED IN SECTION

2060 719.301(4)(p) AND (q), FLORIDA STATUTES, IF APPLICABLE; AND A

2061 COPY OF THE ASSOCIATION'S MOST RECENT STRUCTURAL INTEGRITY

2062 RESERVE STUDY DESCRIBED IN SECTIONS 719.103(25) ~~719.103(24)~~ AND

2063 719.106(1)(k), FLORIDA STATUTES, IF APPLICABLE, MORE THAN 7

2064 DAYS, EXCLUDING SATURDAYS, SUNDAYS, AND LEGAL HOLIDAYS, BEFORE

2065 EXECUTION OF THIS CONTRACT; and

2066 2. A clause which states: THIS AGREEMENT IS VOIDABLE BY

2067 BUYER BY DELIVERING WRITTEN NOTICE OF THE BUYER'S INTENTION TO

2068 CANCEL WITHIN 7 DAYS, EXCLUDING SATURDAYS, SUNDAYS, AND LEGAL

2069 HOLIDAYS, AFTER THE DATE OF EXECUTION OF THIS AGREEMENT BY THE

2070 BUYER AND RECEIPT BY BUYER OF A CURRENT COPY OF THE INSPECTOR-

2071 PREPARED SUMMARY OF THE MILESTONE INSPECTION REPORT AS DESCRIBED

2072 IN SECTION 553.899, FLORIDA STATUTES, IF APPLICABLE; A COPY OF

2073 THE TURNOVER INSPECTION REPORT DESCRIBED IN SECTION

2074 719.301(4)(p) AND (q), FLORIDA STATUTES, IF APPLICABLE; AND A

2075 COPY OF THE ASSOCIATION'S MOST RECENT STRUCTURAL INTEGRITY

2076 RESERVE STUDY DESCRIBED IN SECTIONS 719.103(25) ~~719.103(24)~~ AND

2077 719.106(1)(k), FLORIDA STATUTES, IF APPLICABLE. ANY PURPORTED

2078 WAIVER OF THESE VOIDABILITY RIGHTS SHALL BE OF NO EFFECT. BUYER

2079 MAY EXTEND THE TIME FOR CLOSING FOR A PERIOD OF NOT MORE THAN 7

2080 DAYS, EXCLUDING SATURDAYS, SUNDAYS, AND LEGAL HOLIDAYS, AFTER

2081 THE BUYER RECEIVES A CURRENT COPY OF THE INSPECTOR-PREPARED

2082 SUMMARY OF THE MILESTONE INSPECTION REPORT AS DESCRIBED IN

2083 SECTION 553.899, FLORIDA STATUTES; A COPY OF THE TURNOVER

2084 INSPECTION REPORT DESCRIBED IN SECTION 719.301(4)(p) AND (q),

2085 FLORIDA STATUTES; OR A COPY OF THE ASSOCIATION'S MOST RECENT

2086 STRUCTURAL INTEGRITY RESERVE STUDY DESCRIBED IN SECTIONS

2087 719.103(25) ~~719.103(24)~~ AND 719.106(1)(k), FLORIDA STATUTES, IF

2088 REQUESTED IN WRITING. BUYER'S RIGHT TO VOID THIS AGREEMENT SHALL

2089 TERMINATE AT CLOSING.

2091 A contract that does not conform to the requirements of this

2092 paragraph is voidable at the option of the purchaser before

2093 closing.

2094 Section 33. Paragraph (d) of subsection (2) of section

2095 720.3085, Florida Statutes, is amended to read:

2096 720.3085 Payment for assessments; lien claims.—

2097 (2)

2098 (d) An association, or its successor or assignee, that

2099 acquires title to a parcel through the foreclosure of its lien

2100 for assessments is not liable for any unpaid assessments, late

2101 fees, interest, or reasonable attorney's fees and costs that

2102 came due before the association's acquisition of title in favor

2103 of any other association, as defined in s. 718.103 or s.

2104 720.301(10) ~~s. 720.301(9),~~ which holds a superior lien interest

2105 on the parcel. This paragraph is intended to clarify existing

2106 law.

2107 Section 34. For the purpose of incorporating the amendment

2108 made by this act to section 720.3035, Florida Statutes, in a

2109 reference thereto, subsection (9) of section 617.0825, Florida

2110 Statutes, is reenacted to read:

2111 617.0825 Board committees and advisory committees.—

2112 (9) This section does not apply to a committee established

2113 under chapter 718, chapter 719, or chapter 720 to perform the

2114 functions set forth in s. 718.303(3), s. 719.303(3), s.

2115 720.3035(1), s. 720.305(2), or s. 720.405, respectively.

2116 Section 35. This act shall take effect July 1, 2026.