HB 1005 Summary

• Allows condominium associations to invest funds in depository accounts or other investment products if a registered investment advisor is selected and a written investment policy is annually adopted and maintained.

• Requires investment advisors to comply with the prudent investor rule, act as fiduciaries, maintain third-party custodial accounts with Securities Investor Protection Corporation coverage, and provide annual portfolio allocation models to match reserve fund liquidity requirements.

• Mandates at least 36 months of projected reserves be maintained in cash or cash equivalents at all times, and requires associations to contract annually with certified public accountants to verify invested fund transactions.

• Changes reference from "interest" to "earnings" for reserve fund accruals and permits earnings on reserve funds to be used for authorized reserve expenditures or other purposes with majority vote approval.

• Requires associations to maintain a written investment policy as an official record and excludes registered investment advisor service contracts from competitive bidding requirements under Florida law; effective July 1, 2021.