FL H7069

Requires condominium and cooperative associations with buildings 3 stories or higher to complete a structural integrity reserve study at least every 10 years, covering roofs, load-bearing walls, foundations, plumbing, electrical systems, fireproofing, waterproofing, windows, and other items exceeding $10,000 in deferred maintenance cost; existing unit-owner-controlled associations must complete the initial study by July 1, 2024, and failure to do so constitutes a breach of fiduciary duty.

Establishes a mandatory building recertification program requiring inspection of buildings 3 stories or higher that have been occupied for at least 30 years (or 25 years if within 3 miles of a coastline), with subsequent recertifications every 10 years; inspections must be performed by a licensed engineer or architect and reported to the local building official within 90 days of notice.

Requires a phase 2 inspection (destructive or nondestructive testing) when a recertification report identifies substantial structural deterioration; if an association fails to schedule or begin recommended repairs within a period set by county commissioners (not exceeding 365 days after the building official receives the phase 2 report), the building must be declared unsafe for human occupancy.

Effective July 1, 2024, prohibits unit-owner-controlled associations from waiving or reducing reserves for items identified in the structural integrity reserve study and restricts the use of structural integrity reserve funds for other purposes without approval of a majority of all nondeveloper voting interests; developer-controlled associations may not vote to waive or reduce reserves at any time.

Adds structural integrity reserve studies, recertification reports, and phase 2 inspection reports as official records; reserve studies must be maintained for at least 15 years and recertification/phase 2 reports must be permanently maintained; associations with 150 or more units must post the most recent versions on their website or app.

Requires disclosure of the most recent structural integrity reserve study, recertification report, and phase 2 inspection report to prospective purchasers and lessees by both developers and unit-owner sellers, and as exhibits in prospectuses and offering circulars.

Allows a condominium to be terminated by majority vote (rather than the typical higher threshold) when a phase 2 inspection shows recommended repairs exceeding 65% of the combined fair market value of units, as determined by an independent appraiser no earlier than 90 days before recording the plan of termination.

Requires associations to report to the Division of Florida Condominiums, Timeshares, and Mobile Homes by January 1, 2023, the number, unit count, and addresses of buildings 3 stories or higher; the division must compile and publish a searchable-by-county list on its website and gains jurisdiction over complaints related to structural integrity reserve studies and recertification compliance.

Adds disciplinary grounds for community association managers and firms that fail to provide written recertification reports to local building officials, and requires managers contracting with associations subject to recertification to comply with the new inspection requirements.

Appropriates $333,380 in recurring funds and $167,564 in nonrecurring funds to the Department of Business and Professional Regulation, along with 4 full-time equivalent positions, to implement the act, which takes effect July 1, 2022.