Legal News You Can Use: 2025 - 2026 Community Association Legislative Update

NEW STATUTORY AMENDMENTS

Milestone Inspections (Section 553.899 of the Florida Statutes)

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The new law eliminates this unnecessary, duplicative, and wasteful requirement. » Evidence of compliance with this delivery requirement must be made by an affidavit executed by an officer or director of the association. In addition, the type of financial report an association must prepare generally depends on its total annual revenues. For example, the amount of an association’s revenue may determine whether it must prepare “compiled,” “reviewed,” or “audited” financial statements. However, the Condominium Act permits an association to prepare a “lower tier” financial report than would otherwise be required based on its revenue (such as opting for reviewed financial statements instead of audited ones). Some associations might choose a lower-tier report due to the less stringent requirements. To qualify for this option, an association must hold a vote of the membership. The new laws raise the approval threshold, now requiring a majority of all voting interests to authorize the preparation of a lower-tier financial report. Previous law only required approval from a majority of the voting interests present at a meeting. ■

A “milestone inspection” is a structural inspection of a building, including an inspection of the load-bearing elements, the primary structural members, and the primary structural systems, which is performed by a licensed architect or engineer. Generally, a milestone inspection must be performed by December 31 of the year in which the building reaches 30 years of age and every 10 years thereafter. This year’s new legislation implements the following changes to the procedures and requirements governing a milestone inspection: » A milestone inspection is required for a building that is three habitable stories or more in height as determined by the Florida Building Code and that is subject, in whole or in part, to the Condominium Act. ▪ Note – Previous law required a milestone for a building that is three stories or more in height, regardless of whether each story is habitable. Under the revised law, buildings with three stories that include non-habitable levels (such as a garage) now appear to be excluded from the milestone requirement. » A licensed architect or engineer who bids to perform a milestone inspection must disclose in writing to the association their intent to bid on any services related to any maintenance, repair or replacement which may be recommended by the milestone inspection. » Any design professional or licensed contractor who submits a bid to the association for performing any services recommended by the milestone inspection may not have an interest, directly or indirectly, in the firm or entity providing the milestone inspection or be a relative of any person having a direct or indirect interest in such firm, unless such relationship is disclosed to the association in writing. ▪ Note – As used in this provision, the term “relative” means a relative within the third degree of consanguinity by blood or marriage. » If a design professional or licensed contractor fails to provide the written disclosure of the interests or relationships required above: (i) the vendor’s contract is voidable and terminates upon the association filing a written notice terminating the contract; and (ii) the vendor may be subject to professional discipline by the State. ■

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