● This sub subparagraph does not apply to an association controlled by a developer as defined in s. 718.103, an association in which the non-developer unit owners have been in control for less than 1 year, or an association controlled by one or more bulk assignees or bulk buyers as those terms are defined in s. 718.703. ● An association that has paused reserve contributions under this subparagraph must have a structural integrity reserve study performed before the continuation of reserve contributions in order to determine the association’s reserve funding needs and to recommend a reserve funding plan. Subsection 4 was added as follows: ● An association’s reserve accounts may be pooled for two or more required components. Reserve funding for required reserve components may only be pooled with other required reserve components. The reserve funding indicated in the proposed annual budget must be sufficient to ensure that available funds meet or exceed projected expenses for all components in the reserve pool based on the reserve funding plan or schedule of the most recent structural integrity reserve study. A vote of the members is not required for the board to change the accounting method for reserves to a pooling accounting method or a straight-line accounting method. Subsection 6 was added: ● The division shall annually adjust for inflation, based on the Consumer Price Index for All Urban Consumers released in January of each year, the minimum $25,000 threshold amount for required reserves. ● By February 1, 2026, and annually thereafter, the division must conspicuously post on its website the inflation- adjusted minimum threshold amount for required reserves. Paragraph (g) Structural integrity reserve study, item h was amended to read: A residential condominium association must have a structural integrity reserve study completed at least every 10 years after the condominium’s creation for each building on the condominium property that is three habitable stories or higher in height, as determined by the Florida Building Code, which includes, at a minimum, a study of the following items as related to the structural integrity and safety of the building: h. Any other item that has a deferred maintenance expense or replacement cost that exceeds $25,000 or the inflation-adjusted amount determined by the division under subparagraph (f)6., whichever is greater, and the failure to replace or maintain such item negatively affects the items listed in sub-subparagraphs a.-g., as determined by the visual inspection portion of the structural integrity reserve study. This was previously $10,000. Further, paragraph (g), 3.a. specifies that a structural integrity reserve study including the visual inspection portion of the structural integrity reserve study, must be performed or verified by an engineer licensed under chapter 471, an architect licensed under chapter 481, or a person certified as a reserve specialist or professional reserve analyst by the Community Associations Institute or the Association of Professional Reserve Analysts.
Omitted was the inclusion of expenses or assessments related to the betterments to the condominium property. Related to budgeting for reserve accounts for capital expenditures and deferred maintenance, previously condominium and cooperative associations were required to budget for reserves components if the deferred maintenance or replacement cost exceeded $10,000. This was amended to raise this threshold to $25,000 , with an inflationary component allowing for future increases. If an association votes to terminate the condominium in accordance with s. 718.117, the members may vote to waive the maintenance of reserves recommended by the association’s most recent structural integrity reserve study. Added to subsection (f), annual budget, is paragraphs c.(I), (II), and (III): ● Reserves for the items specified as items required to be reserved as determined by the Structural Integrity Reserve Study, now may be funded by regular assessments, special assessments, lines of credit, or loans. ○ A special assessment, a line of credit, or a loan under this sub-subparagraph requires the approval of a majority vote of the total voting interests of the association. ● The line of credit or loan must be sufficient to fund the cumulative amount of any previously waived or unfunded portions of the reserve funding amount required by this paragraph and the most recent structural integrity reserve study. ○ Funding from the line of credit or loan must be immediately available for access by the board to fund required repair, maintenance, or replacement expenses without further approval by the members of the association. ○ A special assessment, a line of credit, or a loan secured under this sub-subparagraph and related details must be included in the annual financial statement that is required under F.S. 718.111(13) to be delivered to unit owners and required under F.S. 718.503 to be provided to prospective purchasers of a unit. ● This does not apply to associations controlled by a developer, an association in which the non-developer unit owners have been in control for less than one year, or an association controlled by one or more bulk assignees or bulk buyers. If the local building official determines that the entire condominium building is uninhabitable due to a natural emergency, the board, may pause the contribution to its reserves or reduce reserve funding until the local building official determines that the condominium building is habitable. This previously required the approval of a majority of members. Paragraph (e) of this subsection added the following provisions: ● For a budget adopted on or before December 31, 2028, if the association has completed a milestone inspection within the previous two calendar years, the board, upon the approval of a majority of the total voting interests of the association, may temporarily pause, for a period of no more than two consecutive annual budgets, reserve fund contributions or reduce the amount of reserve funding for the purpose of funding repairs recommended by the milestone inspection.
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Book Code: CAMFL1526
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