LEGISLATIVE SESSION 2025

ANALYSIS OF BILL

SB 1742 (SUMMARY)

Condominium and Cooperative Associations

GENERAL BILL by Senator Jennifer Bradley

Companion Bills: HB 913;

Last Action:   2/28/2025 filed in Senate

SB 1742:   Condominium and Cooperative Associations

This bill relates to revising the methods of delivery for a copy of the most recent association financial report to include electronic delivery via the Internet condominium and cooperative associations.

The bill amends s. 718.111, F.S. to provide that a  financial report, and a notice that a copy of the most recent financial report will be furnished, as requested by the owner, mailed, or hand delivered, or electronically delivered via the internet to the unit owner, without charge, within 5 business days after receipt of a written request from the unit owner.

The bill authorizes a unit-owner-controlled association to obtain a line of credit in lieu of maintaining reserves for budgets adopted on or before a specified date upon a majority vote of the association; requiring a board to use best efforts to make prudent investment decisions in fulfilling its duty to manage operating and reserve funds of the association, etc.

The bill adds a new section to s. 718.111, F.S. “ (16),  INVESTMENT OF ASSOCIATION FUNDS” that requires a board to use its best efforts to make prudent investment decisions that carefully consider risk and return in an effort to maximize returns on invested.   The bill provides that only funds identified as reserve funds by an association may invest in one or any combination of depository accounts at a community bank, savings bank, commercial bank, savings and loan association, or credit union if the respective account balance at any institution does not exceed the amount of deposit insurance per account provided by any agency of the Federal Government or as otherwise available.  

The bill also provides that an association must establish  an investment committee of at least two board members and two-unit owners who are not related by affinity or consanguinity to, or under common ownership with, any board member, community management company, reserve study provider, or unit owner. In addition, the investor advisor has a fiduciary duty to the association and must comply with the prudent investor rule, including compliance with ERISA rules, subject to compliance with this bill.   The bill provides that  monthly, quarterly, and annual reports must be provided to the association which are prepared in accordance with established financial industry standards in accordance with chapter 517.649, F.S.   The bill provides for a budget adopted on or before December 31, 2028, a unit-owner-controlled association that must have a structural reserve study may secure a line of credit in lieu of maintaining reserves upon a majority vote of the total voting interests of the association. The line of credit must be sufficient to meet the association’s deferred maintenance obligation not funded in the association’s reserve account for each budget. Funding from the line of credit 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 with the line of credit secured included in the financial report required under s. 718.111(13).

The bill revises the disclosures that must be included in a contract for the sale and resale of a residential unit.

The bill provides that under s. 719.301(4)(p and (q), F.S., contracts of sale for units must include verbiage that the agreeable is voidable by the buyer within 15 days (excluding weekends and legal holidays) if after execution of the  contract, no copy of certain documents, including a copy of the structural integrity reserve study is provided to the prospective buyer.

EFFECTIVE JULY 1, 2025