SB 1742 Florida Senate · 2025 Regular Session

Condominium and Cooperative Associations

Summary

Condominium and Cooperative Associations; Prohibiting a person whose community association manager license is revoked from having an indirect or direct ownership interest in, or being an employee, a partner, an officer, a director, or a trustee of, a community association management firm for a specified timeframe; prohibiting a community association manager or a community association management firm from knowingly performing any act directed by the community association if such act violates any state or federal law; authorizing an association board meeting to be conducted in person or by video conference; requiring a cooperative association to create and maintain an online account with the division, etc. APPROPRIATION: $250,000

Bill status in committee 3 of 5 stages cleared

Introduction

Mar 2025

Committee Review

Apr 2025

Senate Passage

Apr 2025

House Passage

Governor

Introduced Mar 10, 2025 Last action Apr 30, 2025

Maddy AI version diff · 3 comparisons

What changed between versions

S 1742 c2 → S 1742 c3 · 8 edits

MODERATE

This bill updates Florida's condominium and cooperative association laws to strengthen consumer protections, modernize meeting procedures, and enhance financial oversight. Key changes include stricter licensing requirements for revoked managers, new rules for conflict of interest disclosures, expanded video conference meeting options, and updated reserve fund investment guidelines.

Scope change

The bill applies to both condominium and cooperative associations, with some provisions specifically targeting cooperative associations for the first time. It also expands requirements for associations managing 150+ units regarding digital record-keeping.

ELIGIBILITY

Revoked community association managers are now prohibited from having any ownership interest in or employment with a management firm for 10 years after revocation.

REQUIREMENT

Conflict of interest thresholds increased to $2,500 for requiring multiple bids, and new rules require soliciting multiple bids when bids exceed this amount.

New requirements for investment committees with specific composition rules, fiduciary standards, and mandatory reporting to associations.

Cooperative associations now required to create online accounts with the Division of Florida Condominiums, Timeshares, and Mobile Homes.

New provisions requiring structural integrity reserve studies to include reserve funding schedules and consider alternative funding methods.

Board meeting notice requirements updated to include video conference options with hyperlinks and conference phone numbers.

DEFINITION

Added definition of 'video conference' requiring both virtual and physical attendance options with recording requirements.

TIMELINE

Financial report delivery deadline reduced from 180 days to 120 days after fiscal year end.

S 1742 c1 → S 1742 c2 · 10 edits

MAJOR

This bill significantly strengthens Florida's condominium and cooperative association laws by adding stricter licensing requirements for community association managers, enhancing transparency for residents, and introducing new investment and reserve fund management rules. The changes aim to protect homeowners from unqualified managers, ensure proper financial oversight, and improve the safety of buildings through more rigorous inspection and reserve funding requirements.

Scope change

The bill expands requirements to include cooperative associations alongside condominium associations and adds new provisions for structural integrity reserve studies and milestone inspections.

ELIGIBILITY

Prohibits individuals with revoked community association manager licenses from having any ownership interest or employment role in management firms for 10 years after revocation.

REQUIREMENT

Requires community association managers and firms to maintain online licensure accounts with the Department of Business and Professional Regulation, identifying their employers and associations.

Changes the threshold for required reserve funding from $25,000 to $10,000 for deferred maintenance expenses or replacements.

Requires investment committees for reserve fund investments to include at least two board members and two unit owners who are not board members.

Mandates that investment advisers act as fiduciaries to associations and comply with the prudent investor rule.

Requires professionals bidding on structural integrity reserve studies to disclose in writing any intent to bid on related maintenance services and prohibits conflicts of interest.

Mandates that board meetings and unit owner meetings conducted via video conference be recorded and maintained as official records.

Requires associations to provide investment advisers with financial information at least once per calendar year and receive annual portfolio allocation models.

FISCAL

Allows associations to temporarily pause reserve contributions or reduce funding for up to two consecutive budgets if a milestone inspection was completed within the previous two years, with a requirement to obtain a structural integrity reserve study before resuming contributions.

TIMELINE

Extends the deadline for certain reserve study requirements and changes effective dates for various provisions to December 31, 2024, and December 31, 2028.

S 1742 Filed → S 1742 c1 · 10 edits

MAJOR

This bill significantly expands Florida's condominium and cooperative association regulations by adding new requirements for community association manager licensing, introducing videoconference options for association meetings, and establishing stricter rules for reserve fund investments and structural integrity reserve studies. The changes aim to improve financial transparency, protect unit owners from unlicensed managers, and ensure adequate funding for building maintenance and repairs.

Scope change

The bill expands applicability to include cooperative associations in addition to condominium associations, and adds new requirements for homeowners' associations regarding manager information disclosure.

ELIGIBILITY

Prohibits individuals with revoked community association manager licenses from having ownership interests or employment in management firms for 10 years.

REQUIREMENT

Requires community association managers to provide specific information on their online licensure accounts and update it within 30 days of changes.

Mandates that community association managers perform acts only if they comply with state and federal laws, prohibiting violation of any law.

Allows board meetings and unit owner meetings to be conducted via videoconference with specific recording and notice requirements.

Changes the deferred maintenance expense threshold from $25,000 to $10,000 for items requiring reserve funding.

Requires design professionals bidding on structural integrity reserve studies to disclose intent to bid on related maintenance services.

Mandates that contracts between associations and managers include specific statements about professional practice standards.

FISCAL

Revises reserve fund investment requirements to include creation of investment committees and compliance with prudent investor rules.

TIMELINE

Extends structural integrity reserve study deadline from December 31, 2025 to December 31, 2024 for existing associations.

ENFORCEMENT

Requires local enforcement agencies to provide electronic milestone inspection data to the Department of Business and Professional Regulation.

Floor votes · Senate Apr 21, 2025

How they voted

23–0

Passed · 2 other

Total votes 25

Apr 21, 2025

D Democratic5

5 Yea

100% Yea

I Independent1

1 Yea

100% Yea

R Republican19

17 Yea 2

89% Yea

Vote distribution

All Yea All Nay Mixed No data

Full legislative history

Actions timeline

Total actions

Key actions

Committee

Apr 22, 2025

Upper · Passed

Pending reference review -under Rule 4.7(2) - (Committee Substitute)

upper

Apr 21, 2025

Senate · Passed

Senate Vote: pass (23-0-2)

senate

Apr 17, 2025

Upper · Passed

On Committee agenda-- Rules, 04/21/25, 2:00 pm, 412 Knott Building

upper

Apr 17, 2025

Upper · Passed

Pending reference review under Rule 4.7(2) - (Committee Substitute)

upper

Apr 15, 2025

Upper · Passed

CS/CS by Appropriations Committee on Agriculture, Environment, and General Government; YEAS 12 NAYS 0

upper

Apr 10, 2025

Upper · Passed

On Committee agenda-- Appropriations Committee on Agriculture, Environment, and General Government, 04/15/25, 12:30 pm, 412 Knott Building

upper

Mar 27, 2025

Upper · Passed

Now in Appropriations Committee on Agriculture, Environment, and General Government

upper

Mar 27, 2025

Upper · Passed

Pending reference review under Rule 4.7(2) - (Committee Substitute)

upper

Mar 20, 2025

Upper · Passed

On Committee agenda-- Regulated Industries, 03/25/25, 4:00 pm, 412 Knott Building

upper

Mar 14, 2025

Upper · Passed

On Committee agenda-- Regulated Industries, 03/19/25, 9:00 am, 412 Knott Building --Temporarily Postponed

upper

Mar 10, 2025

Introduced

upper

Mar 7, 2025

Committee

Referred to Regulated Industries; Appropriations Committee on Agriculture, Environment, and General Government; Rules

upper

1 primary · 1 co-sponsor