Governor DeSantis signed two bills into law this spring impacting both Florida homeowners’ associations and condominium associations. The changes are broken down into two major categories: Condominium Changes under Chapter 718 and Homeowners Association Changes under Chapter 720 with subcategories for the subject matter. Remember, this is intended as a summary and reflects the author’s interpretation of the changes. Please read the actual text of the amendments and consult with your community association’s attorney to be guided on how these changes may affect your community.
Homeowners Association Act (Chapter 720) Changes:
Flags: Section 720.304 was amended to provide that despite any restrictions to the contrary, owners may display up to two portable, removable flags from among a long list of options from the more common U.S. flag to the more obscure flags of groups such as correctional officers and certain types of nurses for examples. There is no mention of political flags.
Storage: Section 720.3045 is a new section which provides that an association may not restrict parcel owners or their tenants from installing, displaying, or storing any items on a parcel which are not visible from the parcel's frontage or an adjacent parcel, including, but not limited to, artificial turf, boats, flags, and recreational vehicles.
Condominium Act (Chapter 718) Changes:
Flags: Section 718.113 was amended to provide that owners may fly flags that represent the United States Army, Navy, Air Force, Marine Corps, Space Force, or Coast Guard on Patriot Day (September 11) despite any rules to the contrary in the governing documents.
Budgets: In the wake of the enormous increases Florida condominiums have seen in their insurance premiums, Section 718.112(2)(e) was amended to exclude insurance premiums from the 115% calculation when considering whether owners may challenge an adopted budget.
Official
Records: The law was clarified to expressly provide that association members and any person authorized by an association member may inspect official records.
Disputes: The legislature expanded the definition of “dispute” for which 718.1255 requires mediation to include the failure of a board of administration, when required by law or an association document, to: 1. Obtain the milestone inspection required by law, 2. Obtain a structural integrity reserve study required under s. 718.112(2)(g), 3. Fund reserves as required for an item identified in s. 718.112(2)(g). and, 4. Make or provide necessary maintenance or repairs of condominium property recommended by a milestone inspection or a structural integrity reserve study.
Reserves:
“Alternative funding method” was added to defined to mean a method approved by the Division for funding the capital expenditures and deferred maintenance obligations for a multicondominium association operating at least 25 condominiums which may reasonably be expected to fully satisfy the association’s reserve funding obligations by the allocation of funds in the annual operating budget. Note it only applies to a multicondominium association, not those with a single condominium.
In a budget adopted by an association that is required to obtain a structural integrity reserve study, reserves must be maintained for the items identified in paragraph (g) of the statute for which the association is responsible pursuant to the declaration of condominium, and the reserve amount for such items must be based on the findings and recommendations of the association’s most recent structural integrity reserve study. This amendment clarifies that reserves are not required for those items which are among the items for which the unit owners are responsible maintenance.
With respect to items for which an estimate of useful life is not readily ascertainable or with an estimated remaining useful life of greater than 25 years, an association is not required to reserve replacement costs for such items, but an association must reserve the amount of deferred maintenance expense, if any, which is recommended by the structural integrity reserve study for such items. Reserves must be funded based on the most recent structural integrity reserve study. This section was in response to the difficulty inspectors were having ascertaining the remaining useful life of some major structural components such as slabs and vertical support columns, as examples.
An association may not waive or reduce reserves with just a vote of a majority of the unit owners present at a members meeting. The law has been amended to require that such waiver or reduced reserves must be approved by majority vote of the total voting interests. For a budget adopted on or after December 31, 2024, the members of a unit-owner-controlled association that must obtain a structural integrity reserve study may not determine to provide no reserves or less reserves than required for items listed in paragraph (g) of this statute, except that members of an association operating a multicondominium may determine to provide no reserves or less reserves than required by if an alternative funding method has been approved by the Division. Exterior doors were added to the subsection (g) list of items for which reserves may not be waived.
Seller Disclosures:
Section 71.503(2) was amended to add to the non-developer disclosure requirements prior to a condominium unit sale. A contract that does not conform to the requirements is voidable at the option of the purchaser prior to closing. If the association has completed a milestone inspection as described in s. 553.899, a turnover inspection report for a turnover inspection performed on or after July 1, 2023, or a structural integrity reserve study, each contract entered into after December 31, 2024, for the resale of a residential unit shall contain in conspicuous type:
1. A clause which states: THE BUYER HEREBY ACKNOWLEDGES THAT BUYER HAS BEEN PROVIDED A CURRENT COPY OF THE INSPECTOR-PREPARED SUMMARY OF THE MILESTONE INSPECTION REPORT AS DESCRIBED IN SECTION 553.899, FLORIDA STATUTES, IF APPLICABLE; A COPY OF THE TURNOVER INSPECTION REPORT DESCRIBED IN SECTION 718.301(4)(p) AND (q), FLORIDA STATUTES, IF APPLICABLE; AND A COPY OF THE ASSOCIATION’S MOST RECENT STRUCTURAL INTEGRITY 1185 RESERVE STUDY DESCRIBED IN SECTIONS 718.103(26) AND 718.112(2)(g), FLORIDA STATUTES, IF APPLICABLE, MORE THAN 3 DAYS, EXCLUDING SATURDAYS, SUNDAYS, AND LEGAL HOLIDAYS, PRIOR TO EXECUTION OF THIS CONTRACT; and,
2. A clause which states: THIS AGREEMENT IS VOIDABLE BY BUYER BY DELIVERING WRITTEN NOTICE OF THE BUYER’S INTENTION TO CANCEL WITHIN 3 DAYS, EXCLUDING SATURDAYS, SUNDAYS, AND LEGAL HOLIDAYS, AFTER THE DATE OF EXECUTION OF THIS AGREEMENT BY THE BUYER AND RECEIPT BY BUYER OF A CURRENT COPY OF THE INSPECTOR-PREPARED SUMMARY OF THE MILESTONE INSPECTION REPORT AS DESCRIBED IN SECTION 553.899, FLORIDA STATUTES, IF APPLICABLE; A COPY OF THE TURNOVER INSPECTION REPORT DESCRIBED IN SECTION 718.301(4)(p) AND (q), FLORIDA STATUTES, IF APPLICABLE; AND A COPY OF THE ASSOCIATION’S MOST RECENT STRUCTURAL INTEGRITY RESERVE STUDY DESCRIBED IN SECTIONS 718.103(26) AND 718.112(2)(g), FLORIDA STATUTES, IF APPLICABLE. ANY PURPORTED WAIVER OF THESE VOIDABILITY RIGHTS SHALL BE OF NO EFFECT. BUYER MAY EXTEND THE TIME FOR CLOSING FOR A PERIOD OF NOT MORE THAN 3 DAYS, EXCLUDING SATURDAYS, SUNDAYS, AND LEGAL HOLIDAYS, AFTER THE BUYER RECEIVES A CURRENT COPY OF THE INSPECTOR-PREPARED SUMMARY OF THE MILESTONE INSPECTION REPORT AS DESCRIBED IN SECTION 553.899, FLORIDA STATUTES; A COPY OF THE TURNOVER INSPECTION REPORT DESCRIBED IN SECTION 718.301(4)(p) AND (q), FLORIDA STATUTES; OR A COPY OF THE ASSOCIATION’S MOST RECENT STRUCTURAL INTEGRITY RESERVE STUDY DESCRIBED IN SECTIONS 718.103(26) AND 718.112(2)(g), FLORIDA STATUTES, IF REQUESTED IN WRITING. BUYER’S RIGHT TO VOID THIS AGREEMENT SHALL TERMINATE AT CLOSING.
Condominium and Cooperative Inspections (Chapter 553)
In the wake of the Champlain Towers collapse, the legislature enacted a series of laws mandating inspections and reserve requirements for certain condominiums and cooperatives. There was some confusion and uncertainty about the effect of the laws that the 2023 amendments (effective July 1) try to clarify. Most of the references to the Condominium Act are mirrored in similar amendments to the Cooperative Act even though not specified.
BUILDING INSPECTIONS:
Whether a building is three stories or above such that it is affected by the laws will be controlled by the Florida Building Code.
Since there was concern that there may not be sufficient Florida licensed architects and engineers to perform the work within the deadlines the legislature mandated, the law changed to allow a “Milestone Inspection” to be provided by a team of professionals with an architect or an engineer acting as a registered design professional in charge of the report.
If a building reached 30 years of age before July 1, 2022, the building’s initial milestone inspection must be performed before December 31, 2024. If a building reaches 30 years of age on or after July 1, 2022, and before December 31, 2024, the building’s initial milestone inspection must be performed before December 31, 2025. If the date of issuance for the certificate of occupancy is not available, the date of issuance of the building’s certificate of occupancy shall be the date of occupancy evidenced in any record of the local building official.
The local enforcement agency may determine that local circumstances, including environmental conditions such as proximity to salt water as defined in s. 379.101, require that a milestone inspection must be performed by December 31 of the year in which the building reaches 25 years of age, based on the date the certificate of occupancy for the building was issued, and every 10 years thereafter.
The local enforcement agency may extend the date by which a building’s initial milestone inspection must be completed upon a showing of good cause by the owner or owners of the building that the inspection cannot be timely completed if the owner or owners have entered into a contract with an architect or engineer to perform the milestone inspection and the inspection cannot reasonably be completed before the deadline or other circumstance to justify an extension.
The local enforcement agency may accept a milestone inspection report prepared by a licensed engineer or architect for a structural integrity and condition inspection of a building performed before July 1, 2022, if the inspection and report substantially comply with the requirements of the inspection law. Notwithstanding when such inspection was completed, the condominium or cooperative association must comply with the unit owner notice requirements in the statute. The inspection for which an inspection report is accepted by the local enforcement agency is deemed a milestone inspection for the applicable requirements in chapters 718 and 719. If a previous inspection and report is accepted by the local enforcement agency, the deadline for the building’s subsequent 10-year milestone inspection is based on the date of the accepted previous inspection.
Upon determining that a building must have a milestone inspection, the local enforcement agency must provide written notice of such required inspection to the condominium association or cooperative association and any owner of any portion of the building which is not subject to the condominium or cooperative form of ownership, as applicable, by certified mail, return receipt requested. The condominium or cooperative association must notify the unit owners of the required milestone inspection within 14 days after receipt of the written notice from the local enforcement agency and provide the date that the milestone inspection must be completed. Such notice may be given by electronic submission to unit owners who consent to receive notice by electronic submission or by posting on the association’s website. Phase 1 of the milestone must be completed within 180 days after receiving notice from the local authority.
If a phase two inspection is required, within 180 days after submitting a phase one inspection report the architect or engineer performing the phase two inspection must submit a phase two progress report to the local enforcement agency with a timeline for completion of the phase two inspection.
Within 45 days after receiving the applicable inspection report, the condominium or cooperative association must distribute a copy of the inspector-prepared summary of the inspection report to each condominium unit owner or cooperative unit owner, regardless of the findings or recommendations in the report, by United States mail or personal delivery at the mailing address, property address, or any other address of the owner provided to fulfill the association’s notice requirements under chapter 718 or chapter 719, as applicable, and by electronic transmission to the e-mail address or facsimile number provided to fulfill the association’s notice requirements to unit owners who previously consented to receive notice by electronic transmission; must post a copy of the inspector-prepared summary in a conspicuous place on the condominium or cooperative property; and must publish the full report and inspector-prepared summary on the association’s website, if the association is required to have a website.
Municipal bodies may enact ordinances concerning when to commence repairs or identified issues in a phase two report, but, as was included in the previously adopted law, if the inspection report discovers damage, the deadline for commencing required repairs is 365 days after receipt of the report.
By December 31, 2024, the Florida Building Commission is required to adopt rules to establish a building safety program for the implementation of the condominium and cooperative inspection laws within the Florida Building Code. The building inspection program must, at minimum, include inspection criteria, testing protocols, standardized inspection and reporting forms that are adaptable to an electronic format, and record maintenance requirements for the local authority.
Subsection (g) of 718.112(2) was amended to describe how structural integrity reserve studies are to be performed and who is authorized to perform them.
718.112(6) was amended to provide that an association that is required to complete a milestone inspection in accordance with s. 553.899 on or before December 31, 2026, may complete the structural integrity reserve study simultaneously with the milestone inspection. In no event may the structural integrity reserve study be completed after December 31, 2026. If the milestone inspection required by s. 553.899, or an inspection completed for a similar local requirement, was performed within the past 5 years and meets the requirements of this section of the stature, such inspection may be used in place of the visual inspection portion of the structural integrity reserve study.
