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H 657
Florida House•Failed
Summary
H 657, “Community Associations”, was introduced in the House on Dec 4, 2025 by Rep. Commerce Committee with 15 co-sponsors. It last saw action on Mar 13, 2026: Died in Rules.
Record
Text
H 657 has 15 co-sponsors and 5 roll calls.
h657/engrossed.txtF L O R I D A H O U S E O F R E P R E S E N T A T I V E SCS/CS/CS/CS/HB 657, Engrossed 1 20261A bill to be entitled2An act relating to community associations; creating s.3712.13, F.S.; providing legislative findings and4intent; providing definitions; providing that the5recorded governing documents of a dissolved6homeowners' association are deemed terminated and7unenforceable; requiring the clerk of the circuit8court to indicate in the county records that a9dissolved association's governing documents are10terminated and inactive; requiring certain exclusive11easements to revert to the servient estate upon12dissolution of a homeowners' association under certain13circumstances; providing for the extinguishment of14such easement; prohibiting an easement held by a15dissolved association from becoming a public right-of-16way, trail, or access route unless the easement is17separately recorded for public use; providing18construction; providing retroactive applicability;19amending s. 718.103, F.S.; defining the term20"habitable"; revising the definition of the term21"video conference"; amending s. 718.104, F.S.;22requiring condominium associations to include a23specified statement in the governing documents or to24hold a meeting by a date certain to vote to amend the25governing documents to include such statement;Page 1 of 85CODING: Words stricken are deletions; words underlined are additions.hb657 -05-e1F L O R I D A H O U S E O F R E P R E S E N T A T I V E SCS/CS/CS/CS/HB 657, Engrossed 1 202626requiring a vote held at such meeting to be approved27by a certain amount of the voting interests; amending28s. 718.111, F.S.; requiring a condominium association29to provide copies of certain records or otherwise make30them available for inspection and copying within a31specified timeframe if the association receives a32subpoena or written request from a law enforcement33agency or prosecuting agency; providing criminal34penalties; amending s. 718.112, F.S.; requiring a35developer to have a turnover inspection report36completed for all buildings on the condominium37property before turning control over to unit owners;38amending s. 718.1255, F.S.; removing presuit mediation39requirements; amending s. 718.128, F.S.; revising the40manner in which certain associations must receive41electronically transmitted ballots; revising the42methods by which unit owners may electronically43transmit ballots; amending s. 719.103, F.S.; defining44the term "habitable"; amending s. 719.106, F.S.;45requiring a developer to have a turnover inspection46report completed for all buildings on the condominium47property before turning control over to unit owners;48amending s. 720.301, F.S.; defining the term49"financial statements"; amending s. 720.302, F.S.;50conforming a provision to changes made by the act;Page 2 of 85CODING: Words stricken are deletions; words underlined are additions.hb657 -05-e1F L O R I D A H O U S E O F R E P R E S E N T A T I V E SCS/CS/CS/CS/HB 657, Engrossed 1 202651amending s. 720.303, F.S.; requiring homeowners'52associations to include a specified statement in the53governing documents or to hold a meeting by a date54certain to vote to amend the governing documents to55include such statement; requiring a vote held at such56meeting to be approved by a certain amount of the57voting interests; removing the authority of an58association to take certain actions relating to the59roof of a building; requiring an association to60provide copies of or otherwise make available certain61records for inspection and copying within a specified62timeframe if the association receives a written63request from a prosecuting agency; providing criminal64penalties; providing that directors, officers, and65committee members of a homeowners' association owe a66duty of loyalty to such association and its members;67requiring a director, an officer, or a committee68member who has a conflict of interest to disclose to69the board such conflict in writing; prohibiting such70director, officer, or member from participating in any71discussion or vote on such matter; authorizing an72association to void a transaction involving a conflict73of interest; providing an exception; providing a74rebuttable presumption; providing construction;75amending s. 720.3035, F.S.; prohibiting an associationPage 3 of 85CODING: Words stricken are deletions; words underlined are additions.hb657 -05-e1F L O R I D A H O U S E O F R E P R E S E N T A T I V E SCS/CS/CS/CS/HB 657, Engrossed 1 202676or specified committees of an association from77enforcing or adopting a covenant, rule, or guideline78that requires a specific type of material for building79or rebuilding a roof under certain circumstances;80amending s. 720.306, F.S.; conforming a cross-81reference; amending s. 720.3075, F.S.; prohibiting an82association's documents from precluding a property83owner from using any type of building material to84build or rebuild a roof under certain circumstances;85amending s. 720.311, F.S.; removing presuit mediation86requirements; requiring that specified arbitrators87conduct arbitration proceedings; creating s. 720.319,88F.S.; providing a short title; providing legislative89findings; authorizing a homeowners' association to be90terminated; providing requirements for the termination91of a homeowners' association; providing conditions for92a plan of termination; requiring an approved plan of93termination be submitted to a community association94court program and recorded in the public records of95each county in which the association is located;96providing duties and responsibilities of a termination97trustee; authorizing a member to file a petition with98a community association court program under certain99circumstances; authorizing a community association100court program to take certain actions; providingPage 4 of 85CODING: Words stricken are deletions; words underlined are additions.hb657 -05-e1F L O R I D A H O U S E O F R E P R E S E N T A T I V E SCS/CS/CS/CS/HB 657, Engrossed 1 2026101responsibilities of the board after approval of a plan102of termination; providing for the distribution of103assets and paying of lawful debts after an association104is terminated; specifying unlawful actions by an105association or its officers or directors; providing106penalties; creating s. 720.32, F.S.; providing107legislative intent; authorizing circuit courts to108create and administer a community association court109program; providing duties of the chief judge;110providing the jurisdiction of the community111association court program; authorizing the community112association court program to take certain actions;113requiring the chief judge of certain judicial circuits114to submit to the Legislature a specified report115annually by a specified date; providing duties of the116Office of the State Courts Administrator; requiring117that certain costs associated with the community118association court program be funded through specific119appropriations in the General Appropriations Act;120requiring certain funds that remain unencumbered or121undisbursed by specified dates to revert to the122Division of Florida Condominiums, Timeshares, and123Mobile Homes Trust Fund; providing applicability;124amending s. 26.031, F.S.; increasing the number of125circuit judges in certain judicial circuits;Page 5 of 85CODING: Words stricken are deletions; words underlined are additions.hb657 -05-e1F L O R I D A H O U S E O F R E P R E S E N T A T I V E SCS/CS/CS/CS/HB 657, Engrossed 1 2026126specifying that the additional circuit court judges127are for the community association court program;128amending s. 34.01, F.S.; conforming a provision to129changes made by the act; amending ss. 336.125,130558.002, 617.0601, 617.0701, 617.0721, 617.0725,131617.0808, 617.1606, 718.116, 718.503, 719.503, and132720.3085, F.S.; conforming cross-references;133reenacting s. 617.0825(9), F.S., relating to board134committees and advisory committees, to incorporate the135amendment made to s. 720.3035, F.S., in a reference136thereto; providing an effective date.137138 Be It Enacted by the Legislature of the State of Florida:139140Section 1. Section 712.13, Florida Statutes, is created to141 read:142712.13 Governing documents associated with dissolved143 homeowners' associations.—144(1) The Legislature finds that when a homeowners'145 association has been dissolved, voluntarily or involuntarily,146 the recorded governing documents created solely for the147 association's benefit may remain in the county records148 indefinitely, imposing an undue burden on private property149 owners. It is the intent of the Legislature to restore and150 protect private property rights by ensuring that suchPage 6 of 85CODING: Words stricken are deletions; words underlined are additions.hb657 -05-e1F L O R I D A H O U S E O F R E P R E S E N T A T I V E SCS/CS/CS/CS/HB 657, Engrossed 1 2026151 encumbrances are properly extinguished or removed from the152 official records of the county when the association ceases to153 exist.154(2) As used in this section, the term:155(a) "Dissolved association" means a homeowners'156 association that has filed articles of dissolution with the157 Department of State under chapter 617 or has otherwise ceased158 its legal operation and existence.159(b) "Exclusive easement" means an easement recorded for160 the sole benefit or use of a homeowners' association or its161 members.162(c) "Governing documents" has the same meaning as in s.163 720.301.164(d) "Servient estate" means the real property burdened by165 an easement.166(3)(a) Upon the dissolution of a homeowners' association,167 the governing documents of the association, which were recorded168 in the official records of a county and created solely for the169 operation or benefit of the dissolved association or its170 members, are deemed terminated and are unenforceable.171(b) The recorded governing documents may not be construed172 to create any rights for the general public or for any successor173 entity unless expressly provided by law.174(c) The clerk of the circuit court shall, upon receipt of175 a certified copy of the association's articles of dissolution,Page 7 of 85CODING: Words stricken are deletions; words underlined are additions.hb657 -05-e1F L O R I D A H O U S E O F R E P R E S E N T A T I V E SCS/CS/CS/CS/HB 657, Engrossed 1 2026176 mark or otherwise indicate in the county's official records that177 the governing documents for the dissolved association are178 terminated and inactive.179(4)(a) An exclusive easement created for the benefit of a180 homeowners' association or its members must revert to the181 servient estate upon dissolution of the association if the owner182 of the servient estate has continuously paid his or her ad183 valorem taxes on the land encumbered by the easement.184(b) Upon reversion, the exclusive easement is extinguished185 and the owner of the servient estate regains full rights of186 ownership, possession, and control of the land encumbered by the187 easement.188(c) An easement formerly held by a homeowners' association189 may not become a public right-of-way, trail, or access route190 unless a separate, valid written notice in accordance with s.191 712.06 has been recorded to preserve the easement for the192 benefit of the public.193(5) This section does not impair or extinguish easements,194 covenants, or restrictions benefiting individual property owners195 which were separately recorded or preserved under this chapter.196(6) This section applies both prospectively and197 retroactively to homeowners' associations dissolved before, on,198 or after July 1, 2026.199Section 2. Subsections (19) through (35) of section200 718.103, Florida Statutes, are renumbered as subsections (20)Page 8 of 85CODING: Words stricken are deletions; words underlined are additions.hb657 -05-e1F L O R I D A H O U S E O F R E P R E S E N T A T I V E SCS/CS/CS/CS/HB 657, Engrossed 1 2026201 through (36), respectively, present subsection (33) is amended,202 and a new subsection (19) is added to that section, to read:203718.103 Definitions.—As used in this chapter, the term:204(19) "Habitable" means a space in a building for living,205 sleeping, eating, or cooking. Garages, carports, and storage or206 utility spaces are not considered habitable.207(34)(33) "Video conference" means a real-time audio- and208 video-based meeting between two or more people in different209 locations using video-enabled and audio-enabled devices. The210 notice for any meeting that is open to the unit owners and will211 be conducted by video conference must have a hyperlink and call-212 in conference telephone number for unit owners to attend the213 meeting and must have a physical location where unit owners can214 also attend the meeting in person. All meetings conducted by215 video conference which are open to the unit owners must be216 recorded, and such recording must be maintained as an official217 record of the association.218Section 3. Subsection (8) is added to section 718.104,219 Florida Statutes, to read:220718.104 Creation of condominiums; contents of221 declaration.—Every condominium created in this state shall be222 created pursuant to this chapter.223(8)(a) Each association formed on or after July 1, 2026,224 must include the following statement in the governing documents:225Page 9 of 85CODING: Words stricken are deletions; words underlined are additions.hb657 -05-e1F L O R I D A H O U S E O F R E P R E S E N T A T I V E SCS/CS/CS/CS/HB 657, Engrossed 1 2026226This association and the association's governing227documents are governed by the Florida Condominium Act,228as amended from time to time.229230(b) By January 1, 2027, each association in existence231 before July 1, 2026, must hold a meeting of the members in232 accordance with s. 718.112 to vote whether to amend the233 governing documents of the association to include the statement234 in paragraph (a). The association must obtain the affirmative235 approval of two-thirds of the units at a meeting of the236 membership at which a quorum has been attained in order to amend237 the governing documents under this paragraph.238Section 4. Paragraph (c) of subsection (12) of section239 718.111, Florida Statutes, is amended to read:240718.111 The association.—241(12) OFFICIAL RECORDS.—242(c)1.a. The official records of the association are open243 to inspection by any association member and any person244 authorized by an association member as a representative of such245 member at all reasonable times. The right to inspect the records246 includes the right to make or obtain copies, at the reasonable247 expense, if any, of the member and of the person authorized by248 the association member as a representative of such member. A249 renter of a unit has a right to inspect and copy only the250 declaration of condominium, the association's bylaws and rules,Page 10 of 85CODING: Words stricken are deletions; words underlined are additions.hb657 -05-e1F L O R I D A H O U S E O F R E P R E S E N T A T I V E SCS/CS/CS/CS/HB 657, Engrossed 1 2026251 and the inspection reports described in ss. 553.899 and252 718.301(4)(p). The association may adopt reasonable rules253 regarding the frequency, time, location, notice, and manner of254 record inspections and copying but may not require a member to255 demonstrate any purpose or state any reason for the inspection.256 The failure of an association to provide the records within 10257 working days after receipt of a written request creates a258 rebuttable presumption that the association willfully failed to259 comply with this paragraph. A unit owner who is denied access to260 official records is entitled to the actual damages or minimum261 damages for the association's willful failure to comply. Minimum262 damages are $50 per calendar day for up to 10 days, beginning on263 the 11th working day after receipt of the written request. The264 failure to permit inspection entitles any person prevailing in265 an enforcement action to recover reasonable attorney fees from266 the person in control of the records who, directly or267 indirectly, knowingly denied access to the records. If the268 requested records are posted on an association's website, or are269 available for download through an application on a mobile270 device, the association may fulfill its obligations under this271 paragraph by directing to the website or the application all272 persons authorized to request access.273b. In response to a written request to inspect records,274 the association must simultaneously provide to the requestor a275 checklist of all records made available for inspection andPage 11 of 85CODING: Words stricken are deletions; words underlined are additions.hb657 -05-e1F L O R I D A H O U S E O F R E P R E S E N T A T I V E SCS/CS/CS/CS/HB 657, Engrossed 1 2026276 copying. The checklist must also identify any of the277 association's official records that were not made available to278 the requestor. An association must maintain a checklist provided279 under this sub-subparagraph for 7 years. An association280 delivering a checklist pursuant to this sub-subparagraph creates281 a rebuttable presumption that the association has complied with282 this paragraph.2832. A director or member of the board or association or a284 community association manager who willfully and knowingly or285 intentionally violates subparagraph 1. commits a misdemeanor of286 the second degree, punishable as provided in s. 775.082 or s.287 775.083, and must be removed from office and a vacancy declared.2883. A person who willfully and knowingly or intentionally289 defaces or destroys accounting records that are required by this290 chapter to be maintained during the period for which such291 records are required to be maintained, or who willfully and292 knowingly or intentionally fails to create or maintain293 accounting records that are required to be created or294 maintained, with the intent of causing harm to the association295 or one or more of its members, commits a misdemeanor of the296 first degree, punishable as provided in s. 775.082 or s.297 775.083; is personally subject to a civil penalty pursuant to s.298 718.501(1)(e); and must be removed from office and a vacancy299 declared.3004. A person who willfully and knowingly or intentionallyPage 12 of 85CODING: Words stricken are deletions; words underlined are additions.hb657 -05-e1F L O R I D A H O U S E O F R E P R E S E N T A T I V E SCS/CS/CS/CS/HB 657, Engrossed 1 2026301 refuses to release or otherwise produce association records with302 the intent to avoid or escape detection, arrest, trial, or303 punishment for the commission of a crime, or to assist another304 person with such avoidance or escape, commits a felony of the305 third degree, punishable as provided in s. 775.082, s. 775.083,306 or s. 775.084, and must be removed from office and a vacancy307 declared.3085. The association shall maintain an adequate number of309 copies of the declaration, articles of incorporation, bylaws,310 and rules, and all amendments to each of the foregoing, as well311 as the question and answer sheet as described in s. 718.504 and312 the most recent annual financial statement and annual budget313 required under this section, on the condominium property to314 ensure their availability to unit owners and prospective315 purchasers, and may charge its actual costs for preparing and316 furnishing these documents to those requesting the documents. An317 association shall allow a member or his or her authorized318 representative to use a portable device, including a smartphone,319 tablet, portable scanner, or any other technology capable of320 scanning or taking photographs, to make an electronic copy of321 the official records in lieu of the association's providing the322 member or his or her authorized representative with a copy of323 such records. The association may not charge a member or his or324 her authorized representative for the use of a portable device.325 Notwithstanding this paragraph, the following records are notPage 13 of 85CODING: Words stricken are deletions; words underlined are additions.hb657 -05-e1F L O R I D A H O U S E O F R E P R E S E N T A T I V E SCS/CS/CS/CS/HB 657, Engrossed 1 2026326 accessible to unit owners:327a. Any record protected by the lawyer-client privilege as328 described in s. 90.502 and any record protected by the work-329 product privilege, including a record prepared by an association330 attorney or prepared at the attorney's express direction, which331 reflects a mental impression, conclusion, litigation strategy,332 or legal theory of the attorney or the association, and which333 was prepared exclusively for civil or criminal litigation or for334 adversarial administrative proceedings, or which was prepared in335 anticipation of such litigation or proceedings until the336 conclusion of the litigation or proceedings.337b. Information obtained by an association in connection338 with the approval of the lease, sale, or other transfer of a339 unit.340c. Personnel records of association or management company341 employees, including, but not limited to, disciplinary, payroll,342 health, and insurance records. For purposes of this sub-343 subparagraph, the term "personnel records" does not include344 written employment agreements with an association employee or345 management company, or budgetary or financial records that346 indicate the compensation paid to an association employee.347d. Medical records of unit owners.348e. Social security numbers, driver license numbers, credit349 card numbers, e-mail addresses, telephone numbers, facsimile350 numbers, emergency contact information, addresses of a unitPage 14 of 85CODING: Words stricken are deletions; words underlined are additions.hb657 -05-e1F L O R I D A H O U S E O F R E P R E S E N T A T I V E SCS/CS/CS/CS/HB 657, Engrossed 1 2026351 owner other than as provided to fulfill the association's notice352 requirements, and other personal identifying information of any353 person, excluding the person's name, unit designation, mailing354 address, property address, and any address, e-mail address, or355 facsimile number provided to the association to fulfill the356 association's notice requirements. Notwithstanding the357 restrictions in this sub-subparagraph, an association may print358 and distribute to unit owners a directory containing the name,359 unit address, and all telephone numbers of each unit owner.360 However, an owner may exclude his or her telephone numbers from361 the directory by so requesting in writing to the association. An362 owner may consent in writing to the disclosure of other contact363 information described in this sub-subparagraph. The association364 is not liable for the inadvertent disclosure of information that365 is protected under this sub-subparagraph if the information is366 included in an official record of the association and is367 voluntarily provided by an owner and not requested by the368 association.369f. Electronic security measures that are used by the370 association to safeguard data, including passwords.371g. The software and operating system used by the372 association which allow the manipulation of data, even if the373 owner owns a copy of the same software used by the association.374 The data is part of the official records of the association.375h. All affirmative acknowledgments made pursuant to s.Page 15 of 85CODING: Words stricken are deletions; words underlined are additions.hb657 -05-e1F L O R I D A H O U S E O F R E P R E S E N T A T I V E SCS/CS/CS/CS/HB 657, Engrossed 1 2026376 718.121(4)(c).3776.a. If an association receives a subpoena or written378 request for records from a prosecuting agency as defined in s.379 112.531 or a law enforcement agency, the association must380 provide a copy of such records or otherwise make the records381 available for inspection and copying to the prosecuting agency382 or law enforcement agency within 5 business days after receipt383 of the subpoena or written request, unless otherwise specified384 by the law enforcement agency, prosecuting agency, subpoena, or385 written request. An association must assist a law enforcement386 agency and a prosecting agency in an investigation to the extent387 permissible by law.388b. A director or member of the board or association or a389 community association manager who willfully and knowingly fails390 to provide a copy of records, or otherwise fails to make the391 records available for inspection and copying, to a prosecuting392 agency or a law enforcement agency as required under sub-393 subparagraph a. commits a misdemeanor of the second degree,394 punishable as provided in s. 775.082 or s. 775.083.395Section 5. Paragraph (g) of subsection (2) of section396 718.112, Florida Statutes, is amended to read:397718.112 Bylaws.—398(2) REQUIRED PROVISIONS.—The bylaws shall provide for the399 following and, if they do not do so, shall be deemed to include400 the following:Page 16 of 85CODING: Words stricken are deletions; words underlined are additions.hb657 -05-e1F L O R I D A H O U S E O F R E P R E S E N T A T I V E SCS/CS/CS/CS/HB 657, Engrossed 1 2026401(g) Structural integrity reserve study.—4021. A residential condominium association must have a403 structural integrity reserve study completed at least every 10404 years after the condominium's creation for each building on the405 condominium property that is three habitable stories or higher406 in height, as determined by the Florida Building Code, which407 includes, at a minimum, a study of the following items as408 related to the structural integrity and safety of the building:409a. Roof.410b. Structure, including load-bearing walls and other411 primary structural members and primary structural systems as412 those terms are defined in s. 627.706.413c. Fireproofing and fire protection systems.414d. Plumbing.415e. Electrical systems.416f. Waterproofing and exterior painting.417g. Windows and exterior doors.418h. Any other item that has a deferred maintenance expense419 or replacement cost that exceeds $25,000 or the inflation-420 adjusted amount determined by the division under subparagraph421 (f)6., whichever is greater, and the failure to replace or422 maintain such item negatively affects the items listed in sub-423 subparagraphs a.-g., as determined by the visual inspection424 portion of the structural integrity reserve study.4252. A structural integrity reserve study is based on aPage 17 of 85CODING: Words stricken are deletions; words underlined are additions.hb657 -05-e1F L O R I D A H O U S E O F R E P R E S E N T A T I V E SCS/CS/CS/CS/HB 657, Engrossed 1 2026426 visual inspection of the condominium property.4273.a. A structural integrity reserve study, including the428 visual inspection portion of the structural integrity reserve429 study, must be performed or verified by an engineer licensed430 under chapter 471, an architect licensed under chapter 481, or a431 person certified as a reserve specialist or professional reserve432 analyst by the Community Associations Institute or the433 Association of Professional Reserve Analysts.434b. Any design professional as defined in s. 558.002 or any435 contractor licensed under chapter 489 who bids to perform a436 structural integrity reserve study must disclose in writing to437 the association his or her intent to bid on any services related438 to any maintenance, repair, or replacement that may be439 recommended by the structural integrity reserve study. Any440 design professional as defined in s. 558.002 or contractor441 licensed under chapter 489 who submits a bid to the association442 for performing any services recommended by the structural443 integrity reserve study may not have an interest, directly or444 indirectly, in the firm or entity providing the association's445 structural integrity reserve study or be a relative of any446 person having a direct or indirect interest in such firm, unless447 such relationship is disclosed to the association in writing. As448 used in this section, the term "relative" means a relative449 within the third degree of consanguinity by blood or marriage. A450 contract for services is voidable and terminates upon thePage 18 of 85CODING: Words stricken are deletions; words underlined are additions.hb657 -05-e1F L O R I D A H O U S E O F R E P R E S E N T A T I V E SCS/CS/CS/CS/HB 657, Engrossed 1 2026451 association filing a written notice terminating the contract if452 the design professional or licensed contractor failed to provide453 the written disclosure of the interests or relationships454 required under this paragraph. A design professional or licensed455 contractor may be subject to discipline under the applicable456 practice act for his or her profession for failure to provide457 the written disclosure of the interests or relationships458 required under this paragraph.4594.a. At a minimum, a structural integrity reserve study460 must identify each item of the condominium property being461 visually inspected, state the estimated remaining useful life462 and the estimated replacement cost or deferred maintenance463 expense of each item of the condominium property being visually464 inspected, and provide a reserve funding plan or schedule with a465 recommended annual reserve amount that achieves the estimated466 replacement cost or deferred maintenance expense of each item of467 condominium property being visually inspected by the end of the468 estimated remaining useful life of the item. At a minimum, the469 structural integrity reserve study must include a recommendation470 for a reserve funding schedule based on a baseline funding plan471 that provides a reserve funding goal in which the reserve472 funding for each budget year is sufficient to maintain the473 reserve cash balance above zero. The study may recommend other474 types of reserve funding schedules, provided that each475 recommended schedule is sufficient to meet the association'sPage 19 of 85CODING: Words stricken are deletions; words underlined are additions.hb657 -05-e1F L O R I D A H O U S E O F R E P R E S E N T A T I V E SCS/CS/CS/CS/HB 657, Engrossed 1 2026476 maintenance obligation.477b. The structural integrity reserve study may recommend478 that reserves do not need to be maintained for any item for479 which an estimate of useful life and an estimate of replacement480 cost cannot be determined, or the study may recommend a deferred481 maintenance expense amount for such item. The structural482 integrity reserve study may recommend that reserves for483 replacement costs do not need to be maintained for any item with484 an estimated remaining useful life of greater than 25 years, but485 the study may recommend a deferred maintenance expense amount486 for such item. If the structural integrity reserve study487 recommends reserves for any item for which reserves are not488 required under this paragraph, the amount of the recommended489 reserves for such item must be separately identified in the490 structural integrity reserve study as an item for which reserves491 are not required under this paragraph.492c. The structural integrity reserve study must take into493 consideration the funding method or methods used by the494 association to fund its maintenance and reserve funding495 obligations through regular assessments, special assessments,496 lines of credit, or loans. If the structural integrity reserve497 study is performed before the association has approved a special498 assessment or secured a line of credit or a loan, the structural499 integrity reserve study must be updated to reflect the funding500 method selected by the association and its effect on the reservePage 20 of 85CODING: Words stricken are deletions; words underlined are additions.hb657 -05-e1F L O R I D A H O U S E O F R E P R E S E N T A T I V E SCS/CS/CS/CS/HB 657, Engrossed 1 2026501 funding schedule, including any anticipated change in the amount502 of regular assessments. The structural integrity reserve study503 may be updated to reflect any changes to the useful life of the504 reserve items after such items are repaired or replaced and the505 effect such repair or replacement will have on the reserve506 funding schedule. The association must obtain an updated507 structural integrity reserve study before adopting any budget in508 which the reserve funding from regular assessments, special509 assessments, lines of credit, or loans does not align with the510 funding plan from the most recent version of the structural511 integrity reserve study.5125. This paragraph does not apply to buildings less than513 three habitable stories in height; single-family, two-family,514 three-family, or four-family dwellings with three or fewer515 habitable stories above ground; any portion or component of a516 building that has not been submitted to the condominium form of517 ownership; or any portion or component of a building that is518 maintained by a party other than the association.5196. Before a developer turns over control of an association520 to unit owners other than the developer, the developer must have521 a turnover inspection report in compliance with s. 718.301(4)(p)522 and (q) for each building on the condominium property that is523 three stories or higher in height.5247. Associations existing on or before July 1, 2022, which525 are controlled by unit owners other than the developer, mustPage 21 of 85CODING: Words stricken are deletions; words underlined are additions.hb657 -05-e1F L O R I D A H O U S E O F R E P R E S E N T A T I V E SCS/CS/CS/CS/HB 657, Engrossed 1 2026526 have a structural integrity reserve study completed by December527 31, 2025, for each building on the condominium property that is528 three habitable stories or higher in height. An association that529 is required to complete a milestone inspection in accordance530 with s. 553.899 on or before December 31, 2026, may complete the531 structural integrity reserve study simultaneously with the532 milestone inspection. In no event may the structural integrity533 reserve study be completed after December 31, 2026.5348. If the milestone inspection required by s. 553.899, or535 an inspection completed for a similar local requirement, was536 performed within the past 5 years and meets the requirements of537 this paragraph, such inspection may be used in place of the538 visual inspection portion of the structural integrity reserve539 study.5409. If the association completes a milestone inspection541 required by s. 553.899, or an inspection completed for a similar542 local requirement, the association may delay performance of a543 required structural integrity reserve study for no more than the544 2 consecutive budget years immediately following the milestone545 inspection in order to allow the association to focus its546 financial resources on completing the repair and maintenance547 recommendations of the milestone inspection.54810. If the officers or directors of an association549 willfully and knowingly fail to complete a structural integrity550 reserve study pursuant to this paragraph, such failure is aPage 22 of 85CODING: Words stricken are deletions; words underlined are additions.hb657 -05-e1F L O R I D A H O U S E O F R E P R E S E N T A T I V E SCS/CS/CS/CS/HB 657, Engrossed 1 2026551 breach of an officer's or a director's fiduciary relationship to552 the unit owners under s. 718.111(1). An officer or a director of553 an association must sign an affidavit acknowledging receipt of554 the completed structural integrity reserve study.55511. Within 45 days after receiving the structural556 integrity reserve study, the association must distribute a copy557 of the study to each unit owner or deliver to each unit owner a558 notice that the completed study is available for inspection and559 copying upon a written request. Distribution of a copy of the560 study or notice must be made by United States mail or personal561 delivery to the mailing address, property address, or any other562 address of the owner provided to fulfill the association's563 notice requirements under this chapter, or by electronic564 transmission to the e-mail address or facsimile number provided565 to fulfill the association's notice requirements to unit owners566 who previously consented to receive notice by electronic567 transmission.56812. Within 45 days after receiving the structural569 integrity reserve study, the association must provide the570 division with a statement indicating that the study was571 completed and that the association provided or made available572 such study to each unit owner in accordance with this section.573 The statement must be provided to the division in the manner574 established by the division using a form posted on the575 division's website.Page 23 of 85CODING: Words stricken are deletions; words underlined are additions.hb657 -05-e1F L O R I D A H O U S E O F R E P R E S E N T A T I V E SCS/CS/CS/CS/HB 657, Engrossed 1 202657613. The division shall adopt by rule the form for the577 structural integrity reserve study in coordination with the578 Florida Building Commission.579Section 6. Subsections (6) and (7) of section 718.1255,580 Florida Statutes, are renumbered as subsections (5) and (6),581 respectively, and paragraphs (a), (h), (k), and (m) of582 subsection (4) and present subsection (5) of that section are583 amended, to read:584718.1255 Alternative dispute resolution; mediation;585 nonbinding arbitration; applicability.—586(4) NONBINDING ARBITRATION AND MEDIATION OF DISPUTES.—The587 Division of Florida Condominiums, Timeshares, and Mobile Homes588 of the Department of Business and Professional Regulation may589 employ full-time attorneys to act as arbitrators to conduct the590 arbitration hearings provided by this chapter. The division may591 also certify attorneys who are not employed by the division to592 act as arbitrators to conduct the arbitration hearings provided593 by this chapter. A person may not be employed by the department594 as a full-time arbitrator unless he or she is a member in good595 standing of The Florida Bar. A person may only be certified by596 the division to act as an arbitrator if he or she has been a597 member in good standing of The Florida Bar for at least 5 years598 and has mediated or arbitrated at least 10 disputes involving599 condominiums in this state during the 3 years immediately600 preceding the date of application, mediated or arbitrated atPage 24 of 85CODING: Words stricken are deletions; words underlined are additions.hb657 -05-e1F L O R I D A H O U S E O F R E P R E S E N T A T I V E SCS/CS/CS/CS/HB 657, Engrossed 1 2026601 least 30 disputes in any subject area in this state during the 3602 years immediately preceding the date of application, or attained603 board certification in real estate law or condominium and604 planned development law from The Florida Bar. Arbitrator605 certification is valid for 1 year. An arbitrator who does not606 maintain the minimum qualifications for initial certification607 may not have his or her certification renewed. The department608 may not enter into a legal services contract for an arbitration609 hearing under this chapter with an attorney who is not a610 certified arbitrator unless a certified arbitrator is not611 available within 50 miles of the dispute. The department shall612 adopt rules of procedure to govern such arbitration hearings613 including mediation incident thereto. The decision of an614 arbitrator is final; however, a decision is not deemed final615 agency action. Nothing in this provision shall be construed to616 foreclose parties from proceeding in a trial de novo unless the617 parties have agreed that the arbitration is binding. If judicial618 proceedings are initiated, the final decision of the arbitrator619 is admissible in evidence in the trial de novo.620(a) Before the institution of court litigation, a party to621 a dispute, other than an election or recall dispute, must shall622 either petition the division for nonbinding arbitration or623 request that the case be referred to mediation initiate presuit624 mediation as provided in subsection (5). Arbitration is binding625 on the parties if all parties in arbitration agree to be boundPage 25 of 85CODING: Words stricken are deletions; words underlined are additions.hb657 -05-e1F L O R I D A H O U S E O F R E P R E S E N T A T I V E SCS/CS/CS/CS/HB 657, Engrossed 1 2026626 in a writing filed in arbitration. The petition must be627 accompanied by a filing fee in the amount of $50. Filing fees628 collected under this section must be used to defray the expenses629 of the alternative dispute resolution program.630(h) Mediation proceedings must generally be conducted in631 accordance with the Florida Rules of Civil Procedure, and these632 proceedings are privileged and confidential to the same extent633 as court-ordered mediation. Persons who are not parties to the634 dispute are not allowed to attend the mediation conference635 without the consent of all parties, with the exception of636 counsel for the parties and corporate representatives designated637 to appear for a party. If the mediator declares an impasse after638 a mediation conference has been held, the arbitration proceeding639 terminates, unless all parties agree in writing to continue the640 arbitration proceeding, in which case the arbitrator's decision641 shall be binding or nonbinding, as agreed upon by the parties;642 in the arbitration proceeding, the arbitrator shall not consider643 any evidence relating to the unsuccessful mediation except in a644 proceeding to impose sanctions for failure to appear at the645 mediation conference. If the parties do not agree to continue646 arbitration, the arbitrator shall enter an order of dismissal,647 and either party may institute a suit in a community association648 court program under s. 720.32 or a court of competent649 jurisdiction. The parties may seek to recover any costs and650 attorney fees incurred in connection with arbitration andPage 26 of 85CODING: Words stricken are deletions; words underlined are additions.hb657 -05-e1F L O R I D A H O U S E O F R E P R E S E N T A T I V E SCS/CS/CS/CS/HB 657, Engrossed 1 2026651 mediation proceedings under this section as part of the costs652 and fees that may be recovered by the prevailing party in any653 subsequent litigation.654(k) The arbitration decision shall be rendered within 30655 days after the hearing and presented to the parties in writing.656 An arbitration decision is final in those disputes in which the657 parties have agreed to be bound. An arbitration decision is also658 final if a complaint for a trial de novo is not filed in a659 community association court program under s. 720.32 or a court660 of competent jurisdiction in which the condominium is located661 within 30 days. The right to file for a trial de novo entitles662 the parties to file a complaint in the appropriate trial court663 for a judicial resolution of the dispute. The prevailing party664 in an arbitration proceeding shall be awarded the costs of the665 arbitration and reasonable attorney fees in an amount determined666 by the arbitrator. Such an award shall include the costs and667 reasonable attorney fees incurred in the arbitration proceeding668 as well as the costs and reasonable attorney fees incurred in669 preparing for and attending any scheduled mediation. An670 arbitrator's failure to render a written decision within 30 days671 after the hearing may result in the cancellation of his or her672 arbitration certification.673(m) Any party to an arbitration proceeding may enforce an674 arbitration award by filing a petition in a community675 association court program under s. 720.32 or a court ofPage 27 of 85CODING: Words stricken are deletions; words underlined are additions.hb657 -05-e1F L O R I D A H O U S E O F R E P R E S E N T A T I V E SCS/CS/CS/CS/HB 657, Engrossed 1 2026676 competent jurisdiction in which the condominium is located. A677 petition may not be granted unless the time for appeal by the678 filing of a complaint for trial de novo has expired. If a679 complaint for a trial de novo has been filed, a petition may not680 be granted with respect to an arbitration award that has been681 stayed. If the petition for enforcement is granted, the682 petitioner shall recover reasonable attorney fees and costs683 incurred in enforcing the arbitration award. A mediation684 settlement may also be enforced through the county or circuit685 court or a community association court program, as applicable,686 and any costs and fees incurred in the enforcement of a687 settlement agreement reached at mediation must be awarded to the688 prevailing party in any enforcement action.689(5) PRESUIT MEDIATION.—In lieu of the initiation of690 nonbinding arbitration as provided in subsections (1)-(4), a691 party may submit a dispute to presuit mediation in accordance692 with s. 720.311; however, election and recall disputes are not693 eligible for mediation and such disputes must be arbitrated by694 the division or filed in a court of competent jurisdiction.695Section 7. Subsection (7) of section 718.128, Florida696 Statutes, is amended to read:697718.128 Electronic voting.—The association may conduct698 elections and other unit owner votes through an Internet-based699 online voting system if a unit owner consents, electronically or700 in writing, to online voting and if the following requirementsPage 28 of 85CODING: Words stricken are deletions; words underlined are additions.hb657 -05-e1F L O R I D A H O U S E O F R E P R E S E N T A T I V E SCS/CS/CS/CS/HB 657, Engrossed 1 2026701 are met:702(7)(a) Unless the association has adopted electronic703 voting in accordance with subsections (1)-(6), the association704 must designate an e-mail address, independent website,705 application, or Internet web portal for receipt of706 electronically transmitted ballots. Electronically transmitted707 ballots must meet all the requirements of this subsection.708(b) A unit owner may electronically transmit a ballot to709 the e-mail address, independent website, application, or710 Internet web portal designated by the association without711 complying with s. 718.112(2)(d)3. s. 718.112(2)(d)4. or the712 rules providing for the secrecy of ballots adopted by the713 division. The association must count completed ballots that are714 electronically transmitted to the designated e-mail address,715 independent website, application, or Internet web portal,716 provided the completed ballots comply with the requirements of717 this subsection.718(c) A ballot that is electronically transmitted to the719 association must include all of the following:7201. A space for the unit owner to type in his or her unit721 number.7222. A space for the unit owner to type in his or her first723 and last name, which also functions as the signature of the unit724 owner for purposes of signing the ballot.7253. The following statement in capitalized letters and in aPage 29 of 85CODING: Words stricken are deletions; words underlined are additions.hb657 -05-e1F L O R I D A H O U S E O F R E P R E S E N T A T I V E SCS/CS/CS/CS/HB 657, Engrossed 1 2026726 font size larger than any other font size used in the electronic727 transmission e-mail from the association to the unit owner:728729WAIVING THE SECRECY OF YOUR BALLOT IS YOUR CHOICE. YOU730DO NOT HAVE TO WAIVE THE SECRECY OF YOUR BALLOT IN731ORDER TO VOTE. BY TRANSMITTING YOUR COMPLETED BALLOT732THROUGH ELECTRONIC MEANS E-MAIL TO THE ASSOCIATION,733YOU WAIVE THE SECRECY OF YOUR COMPLETED BALLOT. IF YOU734DO NOT WISH TO WAIVE YOUR SECRECY BUT WISH TO735PARTICIPATE IN THE VOTE THAT IS THE SUBJECT OF THIS736BALLOT, PLEASE ATTEND THE IN-PERSON MEETING DURING737WHICH THE MATTER WILL BE VOTED ON.738739(d) A unit owner must transmit his or her completed ballot740 to the e-mail address, independent website, application, or741 Internet web portal designated by the association no later than742 the scheduled date and time of the meeting during which the743 matter is being voted on.744(e) There is a rebuttable presumption that an association745 has reviewed all folders associated with the e-mail address,746 independent website, application, or Internet web portal747 designated by the association to receive ballots if a board748 member, an officer, or an agent of the association, or a manager749 licensed under part VIII of chapter 468, provides a sworn750 affidavit attesting to such review.Page 30 of 85CODING: Words stricken are deletions; words underlined are additions.hb657 -05-e1F L O R I D A H O U S E O F R E P R E S E N T A T I V E SCS/CS/CS/CS/HB 657, Engrossed 1 2026751Section 8. Subsections (19) through (29) of section752 719.103, Florida Statutes, are renumbered as subsections (20)753 through (30), respectively, and a new subsection (19) is added754 to that section to read:755719.103 Definitions.—As used in this chapter:756(19) "Habitable" means a space in a building for living,757 sleeping, eating, or cooking. Garages, carports, and storage or758 utility spaces are not considered habitable.759Section 9. Paragraph (k) of subsection (1) of section760 719.106, Florida Statutes, is amended to read:761719.106 Bylaws; cooperative ownership.—762(1) MANDATORY PROVISIONS.—The bylaws or other cooperative763 documents shall provide for the following, and if they do not,764 they shall be deemed to include the following:765(k) Structural integrity reserve study.—7661. A residential cooperative association must have a767 structural integrity reserve study completed at least every 10768 years for each building on the cooperative property that is769 three habitable stories or higher in height, as determined by770 the Florida Building Code, that includes, at a minimum, a study771 of the following items as related to the structural integrity772 and safety of the building:773a. Roof.774b. Structure, including load-bearing walls and other775 primary structural members and primary structural systems asPage 31 of 85CODING: Words stricken are deletions; words underlined are additions.hb657 -05-e1F L O R I D A H O U S E O F R E P R E S E N T A T I V E SCS/CS/CS/CS/HB 657, Engrossed 1 2026776 those terms are defined in s. 627.706.777c. Fireproofing and fire protection systems.778d. Plumbing.779e. Electrical systems.780f. Waterproofing and exterior painting.781g. Windows and exterior doors.782h. Any other item that has a deferred maintenance expense783 or replacement cost that exceeds $25,000 or the inflation-784 adjusted amount determined by the division under subparagraph785 (j)6., whichever is greater, and the failure to replace or786 maintain such item negatively affects the items listed in sub-787 subparagraphs a.-g., as determined by the visual inspection788 portion of the structural integrity reserve study.7892. A structural integrity reserve study is based on a790 visual inspection of the cooperative property.7913.a. A structural integrity reserve study, including the792 visual inspection portion of the structural integrity reserve793 study, must be performed or verified by an engineer licensed794 under chapter 471, an architect licensed under chapter 481, or a795 person certified as a reserve specialist or professional reserve796 analyst by the Community Associations Institute or the797 Association of Professional Reserve Analysts.798b. Any design professional as defined in s. 558.002(7) or799 contractor licensed under chapter 489 who bids to perform a800 structural integrity reserve study must disclose in writing toPage 32 of 85CODING: Words stricken are deletions; words underlined are additions.hb657 -05-e1F L O R I D A H O U S E O F R E P R E S E N T A T I V E SCS/CS/CS/CS/HB 657, Engrossed 1 2026801 the association his or her intent to bid on any services related802 to any maintenance, repair, or replacement that may be803 recommended by the structural integrity reserve study. Any804 design professional as defined in s. 558.002 or contractor805 licensed under chapter 489 who submits a bid to the association806 for performing any services recommended by the structural807 integrity reserve study may not have an interest, directly or808 indirectly, in the firm or entity providing the association's809 structural integrity reserve study or be a relative of any810 person having a direct or indirect interest in such firm, unless811 such relationship is disclosed to the association in writing. As812 used in this section, the term "relative" means a relative813 within the third degree of consanguinity by blood or marriage. A814 contract for services is voidable and terminates upon the815 association filing a written notice terminating the contract if816 the design professional or licensed contractor failed to provide817 the written disclosure of the relationship required under this818 paragraph. A design professional or licensed contractor may be819 subject to discipline under the applicable practice act for his820 or her profession for failure to provide the written disclosure821 of the relationship required under this subparagraph.8224.a. At a minimum, a structural integrity reserve study823 must identify each item of the cooperative property being824 visually inspected, state the estimated remaining useful life825 and the estimated replacement cost or deferred maintenancePage 33 of 85CODING: Words stricken are deletions; words underlined are additions.hb657 -05-e1F L O R I D A H O U S E O F R E P R E S E N T A T I V E SCS/CS/CS/CS/HB 657, Engrossed 1 2026826 expense of each item of the cooperative property being visually827 inspected, and provide a reserve funding schedule with a828 recommended annual reserve amount that achieves the estimated829 replacement cost or deferred maintenance expense of each item of830 cooperative property being visually inspected by the end of the831 estimated remaining useful life of the item. The structural832 integrity reserve study may recommend that reserves do not need833 to be maintained for any item for which an estimate of useful834 life and an estimate of replacement cost cannot be determined,835 or the study may recommend a deferred maintenance expense amount836 for such item. At a minimum, the structural integrity reserve837 study must include a recommendation for a reserve funding838 schedule based on a baseline funding plan that provides a839 reserve funding goal in which the reserve funding for each840 budget year is sufficient to maintain the reserve cash balance841 above zero. The study may recommend other types of reserve842 funding schedules, provided that each recommended schedule is843 sufficient to meet the association's maintenance obligation.844b. The structural integrity reserve study may recommend845 that reserves for replacement costs do not need to be maintained846 for any item with an estimated remaining useful life of greater847 than 25 years, but the study may recommend a deferred848 maintenance expense amount for such item. If the structural849 integrity reserve study recommends reserves for any item for850 which reserves are not required under this paragraph, the amountPage 34 of 85CODING: Words stricken are deletions; words underlined are additions.hb657 -05-e1F L O R I D A H O U S E O F R E P R E S E N T A T I V E SCS/CS/CS/CS/HB 657, Engrossed 1 2026851 of the recommended reserves for such item must be separately852 identified in the structural integrity reserve study as an item853 for which reserves are not required under this paragraph.854c. The structural integrity reserve study must take into855 consideration the funding method or methods used by the856 association to fund its maintenance and reserve funding857 obligations through regular assessments, special assessments,858 lines of credit, or loans. If the structural integrity reserve859 study is performed before the association has approved a special860 assessment or secured a line of credit or a loan, the structural861 integrity reserve study must be updated to reflect the funding862 method selected by the association and its effect on the reserve863 funding schedule, including any anticipated change in the amount864 of regular assessments. The structural integrity reserve study865 may be updated to reflect any changes to the useful life of the866 reserve items after such items are repaired or replaced, and the867 effect such repair or replacement will have on the reserve868 funding schedule. The association must obtain an updated869 structural integrity reserve study before adopting any budget in870 which the reserve funding from regular assessments, special871 assessments, lines of credit, or loans does not align with the872 funding plan from the most recent version of the structural873 integrity reserve study.8745. This paragraph does not apply to buildings less than875 three habitable stories in height; single-family, two-family,Page 35 of 85CODING: Words stricken are deletions; words underlined are additions.hb657 -05-e1F L O R I D A H O U S E O F R E P R E S E N T A T I V E SCS/CS/CS/CS/HB 657, Engrossed 1 2026876 three-family, or four-family dwellings with three or fewer877 habitable stories above ground; any portion or component of a878 building that has not been submitted to the cooperative form of879 ownership; or any portion or component of a building that is880 maintained by a party other than the association.8816. Before a developer turns over control of an association882 to unit owners other than the developer, the developer must have883 a turnover inspection report in compliance with s. 719.301(4)(p)884 and (q) for each building on the cooperative property that is885 three stories or higher in height.8867. Associations existing on or before July 1, 2022, which887 are controlled by unit owners other than the developer, must888 have a structural integrity reserve study completed by December889 31, 2024, for each building on the cooperative property that is890 three habitable stories or higher in height. An association that891 is required to complete a milestone inspection on or before892 December 31, 2026, in accordance with s. 553.899 may complete893 the structural integrity reserve study simultaneously with the894 milestone inspection. In no event may the structural integrity895 reserve study be completed after December 31, 2026.8968. If the milestone inspection required by s. 553.899, or897 an inspection completed for a similar local requirement, was898 performed within the past 5 years and meets the requirements of899 this paragraph, such inspection may be used in place of the900 visual inspection portion of the structural integrity reservePage 36 of 85CODING: Words stricken are deletions; words underlined are additions.hb657 -05-e1F L O R I D A H O U S E O F R E P R E S E N T A T I V E SCS/CS/CS/CS/HB 657, Engrossed 1 2026901 study.9029. If the association completes a milestone inspection903 required by s. 553.899, or an inspection completed for a similar904 local requirement, the association may delay performance of a905 required structural integrity reserve study for no more than the906 2 consecutive budget years immediately following the milestone907 inspection in order to allow the association to focus its908 financial resources on completing the repair and maintenance909 recommendations of the milestone inspection.91010. If the officers or directors of an association911 willfully and knowingly fail to complete a structural integrity912 reserve study pursuant to this paragraph, such failure is a913 breach of an officer's and director's fiduciary relationship to914 the unit owners under s. 719.104(9). An officer or a director of915 the association must sign an affidavit acknowledging receipt of916 the completed structural integrity reserve study.91711. Within 45 days after receiving the structural918 integrity reserve study, the association must distribute a copy919 of the study to each unit owner or deliver to each unit owner a920 notice that the completed study is available for inspection and921 copying upon a written request. Distribution of a copy of the922 study or notice must be made by United States mail or personal923 delivery at the mailing address, property address, or any other924 address of the owner provided to fulfill the association's925 notice requirements under this chapter, or by electronicPage 37 of 85CODING: Words stricken are deletions; words underlined are additions.hb657 -05-e1F L O R I D A H O U S E O F R E P R E S E N T A T I V E SCS/CS/CS/CS/HB 657, Engrossed 1 2026926 transmission to the e-mail address or facsimile number provided927 to fulfill the association's notice requirements to unit owners928 who previously consented to receive notice by electronic929 transmission.93012. Within 45 days after receiving the structural931 integrity reserve study, the association must provide the932 division with a statement indicating that the study was933 completed and that the association provided or made available934 such study to each unit owner in accordance with this section.935 Such statement must be provided to the division in the manner936 established by the division using a form posted on the937 division's website.93813. The division shall adopt by rule the form for the939 structural integrity reserve study in coordination with the940 Florida Building Commission.941Section 10. Subsections (8) through (13) of section942 720.301, Florida Statutes, are renumbered as subsections (9)943 through (14), respectively, and a new subsection (8) is added to944 that section, to read:945720.301 Definitions.—As used in this chapter, the term:946(8) "Financial statements" means a comprehensive report947 prepared in accordance with generally accepted accounting948 principles which accurately reflects the financial condition and949 operation of a homeowners' association for a specified reporting950 period. This report must include, at a minimum, a balance sheet;Page 38 of 85CODING: Words stricken are deletions; words underlined are additions.hb657 -05-e1F L O R I D A H O U S E O F R E P R E S E N T A T I V E SCS/CS/CS/CS/HB 657, Engrossed 1 2026951 an income and expense statement; a budget comparison; and a952 complete set of bank statements, including copies of check953 images for all disbursements the association made during the954 reporting period, for each bank account belonging to the955 association.956Section 11. Subsection (2) of section 720.302, Florida957 Statutes, is amended to read:958720.302 Purposes, scope, and application.—959(2) The Legislature recognizes that it is not in the best960 interest of homeowners' associations or the individual961 association members thereof to create or impose a bureau or962 other agency of state government to regulate the affairs of963 homeowners' associations. However, in accordance with s.964 720.311, the Legislature finds that homeowners' associations and965 their individual members will benefit from an expedited966 alternative process for resolution of election and recall967 disputes and presuit mediation of other disputes involving968 covenant enforcement and authorizes the department to hear,969 administer, and determine these disputes as more fully set forth970 in this chapter. Further, the Legislature recognizes that971 certain contract rights have been created for the benefit of972 homeowners' associations and members thereof before the973 effective date of this act and that ss. 720.301-720.407 are not974 intended to impair such contract rights, including, but not975 limited to, the rights of the developer to complete thePage 39 of 85CODING: Words stricken are deletions; words underlined are additions.hb657 -05-e1F L O R I D A H O U S E O F R E P R E S E N T A T I V E SCS/CS/CS/CS/HB 657, Engrossed 1 2026976 community as initially contemplated.977Section 12. Subsections (11) through (15) of section978 720.303, Florida Statutes, are renumbered as subsections (12)979 through (16), respectively, subsection (1) and paragraph (i) of980 subsection (5) are amended, and a new subsection (11) is added981 to that section, to read:982720.303 Association powers and duties; meetings of board;983 official records; budgets; financial reporting; association984 funds; recalls.—985(1) POWERS AND DUTIES.—986(a) An association that operates a community as defined in987 s. 720.301 must be operated by an association that is a Florida988 corporation. After October 1, 1995, the association must be989 incorporated and the initial governing documents must be990 recorded in the official records of the county in which the991 community is located. An association may operate more than one992 community.993(b) The officers and directors of an association are994 subject to s. 617.0830 and have a fiduciary relationship to the995 members who are served by the association.996(c) The powers and duties of an association include those997 set forth in this chapter and, except as expressly limited or998 restricted in this chapter, those set forth in the governing999 documents.1000 1. Each association formed on or after July 1, 2026, mustPage 40 of 85CODING: Words stricken are deletions; words underlined are additions.hb657 -05-e1F L O R I D A H O U S E O F R E P R E S E N T A T I V E SCS/CS/CS/CS/HB 657, Engrossed 1 20261001 include the following statement in the governing documents:10021003 This association and the association's governing1004 documents are governed by the Florida Homeowners'1005 Association Act, as amended from time to time.10061007 2. By January 1, 2027, each association in existence1008 before July 1, 2026, must hold a meeting of the members in1009 accordance with s. 720.306 to vote whether to amend the1010 governing documents of the association to include the statement1011 in subparagraph 1. The association must obtain the affirmative1012 approval of two-thirds of the voting interests of the1013 association at a meeting of the membership at which a quorum has1014 been attained in order to amend the governing documents under1015 this subparagraph.1016 (d) After control of the association is obtained by1017 members other than the developer, the association may institute,1018 maintain, settle, or appeal actions or hearings in its name on1019 behalf of all members concerning matters of common interest to1020 the members, including, but not limited to, the common areas;1021 roof or structural components of a building, or other1022 improvements for which the association is responsible;1023 mechanical, electrical, or plumbing elements serving an1024 improvement or building for which the association is1025 responsible; representations of the developer pertaining to anyPage 41 of 85CODING: Words stricken are deletions; words underlined are additions.hb657 -05-e1F L O R I D A H O U S E O F R E P R E S E N T A T I V E SCS/CS/CS/CS/HB 657, Engrossed 1 20261026 existing or proposed commonly used facility; and protest of ad1027 valorem taxes on commonly used facilities. The association may1028 defend actions in eminent domain or bring inverse condemnation1029 actions. Before commencing litigation against any party in the1030 name of the association involving amounts in controversy in1031 excess of $100,000, the association must obtain the affirmative1032 approval of a majority of the voting interests at a meeting of1033 the membership at which a quorum has been attained. This1034 paragraph subsection does not limit any statutory or common-law1035 right of any individual member or class of members to bring any1036 action without participation by the association.1037 (e) A member does not have authority to act for the1038 association by virtue of being a member. An association may have1039 more than one class of members and may issue membership1040 certificates.1041 (f) An association of 15 or fewer parcel owners may1042 enforce only the requirements of those deed restrictions1043 established prior to the purchase of each parcel upon an1044 affected parcel owner or owners.1045 (5) INSPECTION AND COPYING OF RECORDS.—1046 (i)1. If an association receives a subpoena or written1047 request for records from a prosecuting agency as defined in s.1048 112.531 or a law enforcement agency, the association must1049 provide a copy of such records or otherwise make the records1050 available for inspection and copying to a law enforcement agencyPage 42 of 85CODING: Words stricken are deletions; words underlined are additions.hb657 -05-e1F L O R I D A H O U S E O F R E P R E S E N T A T I V E SCS/CS/CS/CS/HB 657, Engrossed 1 20261051 or prosecuting agency within 5 business days after receipt of1052 the subpoena or written request, unless otherwise specified by1053 the law enforcement agency, prosecuting agency, or subpoena, or1054 written request. An association must assist a law enforcement1055 agency in its investigation to the extent permissible by law.1056 2. A director or member of the board or association or a1057 community association manager who willfully and knowingly fails1058 to provide a copy of records, or otherwise fails to make the1059 records available for inspection and copying, to a law1060 enforcement agency or prosecuting agency as required under1061 subparagraph 1. commits a misdemeanor of the second degree,1062 punishable as provided in s. 775.082 or s. 775.083.1063 (11) CONFLICTS OF INTEREST.—1064 (a) A director, an officer, or a committee member of an1065 association owes a duty of loyalty to the association and its1066 members.1067 (b) A conflict of interest exists when a director, an1068 officer, or a committee member has a direct or an indirect1069 financial interest in a transaction, contract, or decision under1070 consideration by the association.1071 (c) The director, officer, or committee member with a1072 conflict of interest must disclose the nature and extent of the1073 conflict in writing to the board before any discussion or vote1074 occurs on the matter.1075 (d) After disclosure of the conflict of interest, thePage 43 of 85CODING: Words stricken are deletions; words underlined are additions.hb657 -05-e1F L O R I D A H O U S E O F R E P R E S E N T A T I V E SCS/CS/CS/CS/HB 657, Engrossed 1 20261076 conflicted director, officer, or committee member may not1077 participate in any discussion or vote on the matter.1078 (e) A transaction involving a conflict of interest is1079 voidable by the association unless the transaction was approved1080 by a majority of the voting interests of the association after1081 full disclosure by the conflicted director, officer, or1082 committee member has occurred.1083 (f) Compensating or contracting with a director, an1084 officer, or a committee member of the association, or an1085 immediate family member thereof, creates a rebuttable1086 presumption that a conflict of interest exists.1087 (g) This subsection may not be waived or limited by the1088 governing documents of the association.1089 Section 13. Paragraph (b) of subsection (1) of section1090 720.3035, Florida Statutes, is amended to read:1091 720.3035 Architectural control covenants; parcel owner1092 improvements; rights and privileges.—1093 (1)1094 (b) An association or any architectural, construction1095 improvement, or other such similar committee of an association1096 may not enforce or adopt a covenant, rule, or guideline that:1097 1. Limits or places requirements on the interior of a1098 structure that is not visible from the parcel's frontage or an1099 adjacent parcel, an adjacent common area, or a community golf1100 course.Page 44 of 85CODING: Words stricken are deletions; words underlined are additions.hb657 -05-e1F L O R I D A H O U S E O F R E P R E S E N T A T I V E SCS/CS/CS/CS/HB 657, Engrossed 1 20261101 2. Requires the review and approval of plans and1102 specifications for a central air-conditioning, refrigeration,1103 heating, or ventilating system by the association or any1104 architectural, construction improvement, or other such similar1105 committee of an association, if such system is not visible from1106 the parcel's frontage, an adjacent parcel, an adjacent common1107 area, or a community golf course and is substantially similar to1108 a system that is approved or recommended by the association or a1109 committee thereof.1110 3. Requires that a specific type of material be used on1111 the building or rebuilding of a roof, provided the built or1112 rebuilt roof appears to be substantially identical in shape and1113 color to the roofing requirements created by the association or1114 any architectural, construction improvement, or other similar1115 committee of the association and that such roofing materials1116 adhere to the roof systems recognized by the Florida Building1117 Code which meet ASCE 7-22 standards pursuant to paragraph1118 (6)(c).1119 Section 14. Paragraph (h) of subsection (1) of section1120 720.306, Florida Statutes, is amended to read:1121 720.306 Meetings of members; voting and election1122 procedures; amendments.—1123 (1) QUORUM; AMENDMENTS.—1124 (h)1. Except as otherwise provided in this paragraph, any1125 governing document, or amendment to a governing document, thatPage 45 of 85CODING: Words stricken are deletions; words underlined are additions.hb657 -05-e1F L O R I D A H O U S E O F R E P R E S E N T A T I V E SCS/CS/CS/CS/HB 657, Engrossed 1 20261126 is enacted after July 1, 2021, and that prohibits or regulates1127 rental agreements applies only to a parcel owner who acquires1128 title to the parcel after the effective date of the governing1129 document or amendment, or to a parcel owner who consents,1130 individually or through a representative, to the governing1131 document or amendment.1132 2. Notwithstanding subparagraph 1., an association may1133 amend its governing documents to prohibit or regulate rental1134 agreements for a term of less than 6 months and may prohibit the1135 rental of a parcel for more than three times in a calendar year,1136 and such amendments shall apply to all parcel owners.1137 3. This paragraph does not affect the amendment1138 restrictions for associations of 15 or fewer parcel owners under1139 s. 720.303(1)(f) s. 720.303(1).1140 4. For purposes of this paragraph, a change of ownership1141 does not occur when a parcel owner conveys the parcel to an1142 affiliated entity, when beneficial ownership of the parcel does1143 not change, or when an heir becomes the parcel owner. For1144 purposes of this subparagraph, the term "affiliated entity"1145 means an entity that controls, is controlled by, or is under1146 common control with the parcel owner or that becomes a parent or1147 successor entity by reason of transfer, merger, consolidation,1148 public offering, reorganization, dissolution or sale of stock,1149 or transfer of membership partnership interests. For a1150 conveyance to be recognized as one made to an affiliated entity,Page 46 of 85CODING: Words stricken are deletions; words underlined are additions.hb657 -05-e1F L O R I D A H O U S E O F R E P R E S E N T A T I V E SCS/CS/CS/CS/HB 657, Engrossed 1 20261151 the entity must furnish to the association a document certifying1152 that this subparagraph applies and provide any organizational1153 documents for the parcel owner and the affiliated entity which1154 support the representations in the certificate, as requested by1155 the association.1156 5. For purposes of this paragraph, a change of ownership1157 does occur when, with respect to a parcel owner that is a1158 business entity, every person that owned an interest in the real1159 property at the time of the enactment of the amendment or rule1160 conveys their interest in the real property to an unaffiliated1161 entity.1162 Section 15. Paragraph (g) is added to subsection (3) of1163 section 720.3075, Florida Statutes, to read:1164 720.3075 Prohibited clauses in association documents.—1165 (3) Homeowners' association documents, including1166 declarations of covenants, articles of incorporation, or bylaws,1167 may not preclude:1168 (g) A property owner from using any type of building1169 material to build or rebuild his or her roof, provided the built1170 or rebuilt roof appears to be substantially identical in shape1171 and color to the roofing requirements created by the association1172 or any architectural, construction improvement, or other similar1173 committee of the association and that such roofing materials1174 adhere to the roof systems recognized by the Florida Building1175 Code which meet ASCE 7-22 standards pursuant to paragraphPage 47 of 85CODING: Words stricken are deletions; words underlined are additions.hb657 -05-e1F L O R I D A H O U S E O F R E P R E S E N T A T I V E SCS/CS/CS/CS/HB 657, Engrossed 1 20261176 (6)(c).1177 Section 16. Section 720.311, Florida Statutes, is amended1178 to read:1179 720.311 Dispute resolution.—1180 (1) The Legislature finds that alternative dispute1181 resolution has made progress in reducing court dockets and1182 trials and in offering a more efficient, cost-effective option1183 to litigation. The filing of any petition for arbitration tolls1184 or the serving of a demand for presuit mediation as provided for1185 in this section shall toll the applicable statute of1186 limitations. Any recall dispute filed with the department under1187 s. 720.303(10) must shall be conducted by the department in1188 accordance with the provisions of ss. 718.112(2)(l) and 718.12551189 and the rules adopted by the division. In addition, the1190 department shall conduct binding arbitration of election1191 disputes between a member and an association in accordance with1192 s. 718.1255 and rules adopted by the division. Election disputes1193 and recall disputes are not eligible for presuit mediation;1194 these disputes must be arbitrated by the department or filed in1195 a court of competent jurisdiction. The arbitration proceeding1196 must be conducted by a department arbitrator or by a private1197 arbitrator certified by the department. At the conclusion of an1198 arbitration proceeding, the department shall charge the parties1199 a fee in an amount adequate to cover all costs and expenses1200 incurred by the department in conducting the proceeding.Page 48 of 85CODING: Words stricken are deletions; words underlined are additions.hb657 -05-e1F L O R I D A H O U S E O F R E P R E S E N T A T I V E SCS/CS/CS/CS/HB 657, Engrossed 1 20261201 Initially, the petitioner shall remit a filing fee of at least1202 $200 to the department. The fees paid to the department shall1203 become a recoverable cost in the arbitration proceeding, and the1204 prevailing party in an arbitration proceeding shall recover its1205 reasonable costs and attorney fees in an amount found reasonable1206 by the arbitrator. The department shall adopt rules to1207 effectuate the purposes of this section.1208 (2)(a) Disputes between an association and a parcel owner1209 regarding use of or changes to the parcel or the common areas1210 and other covenant enforcement disputes, disputes regarding1211 amendments to the association documents, disputes regarding1212 meetings of the board and committees appointed by the board,1213 membership meetings not including election meetings, and access1214 to the official records of the association shall be the subject1215 of a demand for presuit mediation served by an aggrieved party1216 before the dispute is filed in court. Presuit mediation1217 proceedings must be conducted in accordance with the applicable1218 Florida Rules of Civil Procedure, and these proceedings are1219 privileged and confidential to the same extent as court-ordered1220 mediation. Disputes subject to presuit mediation under this1221 section shall not include the collection of any assessment,1222 fine, or other financial obligation, including attorney's fees1223 and costs, claimed to be due or any action to enforce a prior1224 mediation settlement agreement between the parties. Also, in any1225 dispute subject to presuit mediation under this section wherePage 49 of 85CODING: Words stricken are deletions; words underlined are additions.hb657 -05-e1F L O R I D A H O U S E O F R E P R E S E N T A T I V E SCS/CS/CS/CS/HB 657, Engrossed 1 20261226 emergency relief is required, a motion for temporary injunctive1227 relief may be filed with the court without first complying with1228 the presuit mediation requirements of this section. After any1229 issues regarding emergency or temporary relief are resolved, the1230 court may either refer the parties to a mediation program1231 administered by the courts or require mediation under this1232 section. An arbitrator or judge may not consider any information1233 or evidence arising from the presuit mediation proceeding except1234 in a proceeding to impose sanctions for failure to attend a1235 presuit mediation session or to enforce a mediated settlement1236 agreement. Persons who are not parties to the dispute may not1237 attend the presuit mediation conference without the consent of1238 all parties, except for counsel for the parties and a corporate1239 representative designated by the association. When mediation is1240 attended by a quorum of the board, such mediation is not a board1241 meeting for purposes of notice and participation set forth in s.1242 720.303. An aggrieved party shall serve on the responding party1243 a written demand to participate in presuit mediation in1244 substantially the following form:1245 STATUTORY OFFER TO PARTICIPATE1246 IN PRESUIT MEDIATION1247 The alleged aggrieved party, ................, hereby1248 demands that ................, as the responding1249 party, engage in mandatory presuit mediation in1250 connection with the following disputes, which byPage 50 of 85CODING: Words stricken are deletions; words underlined are additions.hb657 -05-e1F L O R I D A H O U S E O F R E P R E S E N T A T I V E SCS/CS/CS/CS/HB 657, Engrossed 1 20261251 statute are of a type that are subject to presuit1252 mediation:1253 (List specific nature of the dispute or disputes to be1254 mediated and the authority supporting a finding of a1255 violation as to each dispute.)1256 Pursuant to section 720.311, Florida Statutes, this1257 demand to resolve the dispute through presuit1258 mediation is required before a lawsuit can be filed1259 concerning the dispute. Pursuant to the statute, the1260 parties are required to engage in presuit mediation1261 with a neutral third-party mediator in order to1262 attempt to resolve this dispute without court action,1263 and the aggrieved party demands that you likewise1264 agree to this process. If you fail to participate in1265 the mediation process, suit may be brought against you1266 without further warning.1267 The process of mediation involves a supervised1268 negotiation process in which a trained, neutral third-1269 party mediator meets with both parties and assists1270 them in exploring possible opportunities for resolving1271 part or all of the dispute. By agreeing to participate1272 in presuit mediation, you are not bound in any way to1273 change your position. Furthermore, the mediator has no1274 authority to make any decisions in this matter or to1275 determine who is right or wrong and merely acts as aPage 51 of 85CODING: Words stricken are deletions; words underlined are additions.hb657 -05-e1F L O R I D A H O U S E O F R E P R E S E N T A T I V E SCS/CS/CS/CS/HB 657, Engrossed 1 20261276 facilitator to ensure that each party understands the1277 position of the other party and that all options for1278 reasonable settlement are fully explored.1279 If an agreement is reached, it shall be reduced to1280 writing and becomes a binding and enforceable1281 commitment of the parties. A resolution of one or more1282 disputes in this fashion avoids the need to litigate1283 these issues in court. The failure to reach an1284 agreement, or the failure of a party to participate in1285 the process, results in the mediator declaring an1286 impasse in the mediation, after which the aggrieved1287 party may proceed to court on all outstanding,1288 unsettled disputes. If you have failed or refused to1289 participate in the entire mediation process, you will1290 not be entitled to recover attorney's fees, even if1291 you prevail.1292 The aggrieved party has selected and hereby lists five1293 certified mediators who we believe to be neutral and1294 qualified to mediate the dispute. You have the right1295 to select any one of these mediators. The fact that1296 one party may be familiar with one or more of the1297 listed mediators does not mean that the mediator1298 cannot act as a neutral and impartial facilitator. Any1299 mediator who cannot act in this capacity is required1300 ethically to decline to accept engagement. ThePage 52 of 85CODING: Words stricken are deletions; words underlined are additions.hb657 -05-e1F L O R I D A H O U S E O F R E P R E S E N T A T I V E SCS/CS/CS/CS/HB 657, Engrossed 1 20261301 mediators that we suggest, and their current hourly1302 rates, are as follows:1303 (List the names, addresses, telephone numbers, and1304 hourly rates of the mediators. Other pertinent1305 information about the background of the mediators may1306 be included as an attachment.)1307 You may contact the offices of these mediators to1308 confirm that the listed mediators will be neutral and1309 will not show any favoritism toward either party. The1310 Florida Supreme Court can provide you a list of1311 certified mediators.1312 Unless otherwise agreed by the parties, section1313 720.311(2)(b), Florida Statutes, requires that the1314 parties share the costs of presuit mediation equally,1315 including the fee charged by the mediator. An average1316 mediation may require three to four hours of the1317 mediator's time, including some preparation time, and1318 the parties would need to share equally the mediator's1319 fees as well as their own attorney's fees if they1320 choose to employ an attorney in connection with the1321 mediation. However, use of an attorney is not required1322 and is at the option of each party. The mediators may1323 require the advance payment of some or all of the1324 anticipated fees. The aggrieved party hereby agrees to1325 pay or prepay one-half of the mediator's estimatedPage 53 of 85CODING: Words stricken are deletions; words underlined are additions.hb657 -05-e1F L O R I D A H O U S E O F R E P R E S E N T A T I V E SCS/CS/CS/CS/HB 657, Engrossed 1 20261326 fees and to forward this amount or such other1327 reasonable advance deposits as the mediator requires1328 for this purpose. Any funds deposited will be returned1329 to you if these are in excess of your share of the1330 fees incurred.1331 To begin your participation in presuit mediation to1332 try to resolve the dispute and avoid further legal1333 action, please sign below and clearly indicate which1334 mediator is acceptable to you. We will then ask the1335 mediator to schedule a mutually convenient time and1336 place for the mediation conference to be held. The1337 mediation conference must be held within ninety (90)1338 days of this date, unless extended by mutual written1339 agreement. In the event that you fail to respond1340 within 20 days from the date of this letter, or if you1341 fail to agree to at least one of the mediators that we1342 have suggested or to pay or prepay to the mediator1343 one-half of the costs involved, the aggrieved party1344 will be authorized to proceed with the filing of a1345 lawsuit against you without further notice and may1346 seek an award of attorney's fees or costs incurred in1347 attempting to obtain mediation.1348 Therefore, please give this matter your immediate1349 attention. By law, your response must be mailed by1350 certified mail, return receipt requested, and byPage 54 of 85CODING: Words stricken are deletions; words underlined are additions.hb657 -05-e1F L O R I D A H O U S E O F R E P R E S E N T A T I V E SCS/CS/CS/CS/HB 657, Engrossed 1 20261351 first-class mail to the address shown on this demand.1352 ........................1353 ........................1354 RESPONDING PARTY: YOUR SIGNATURE INDICATES YOUR1355 AGREEMENT TO THAT CHOICE.1356 AGREEMENT TO MEDIATE1357 The undersigned hereby agrees to participate in1358 presuit mediation and agrees to attend a mediation1359 conducted by the following mediator or mediators who1360 are listed above as someone who would be acceptable to1361 mediate this dispute:1362 (List acceptable mediator or mediators.)1363 I/we further agree to pay or prepay one-half of the1364 mediator's fees and to forward such advance deposits1365 as the mediator may require for this purpose.1366 ........................1367 Signature of responding party #11368 ........................1369 Telephone contact information1370 ........................1371 Signature and telephone contact information of1372 responding party #2 (if applicable)(if property is1373 owned by more than one person, all owners must sign)1374 (b) Service of the statutory demand to participate in1375 presuit mediation shall be effected by sending a letter inPage 55 of 85CODING: Words stricken are deletions; words underlined are additions.hb657 -05-e1F L O R I D A H O U S E O F R E P R E S E N T A T I V E SCS/CS/CS/CS/HB 657, Engrossed 1 20261376 substantial conformity with the above form by certified mail,1377 return receipt requested, with an additional copy being sent by1378 regular first-class mail, to the address of the responding party1379 as it last appears on the books and records of the association.1380 The responding party has 20 days from the date of the mailing of1381 the statutory demand to serve a response to the aggrieved party1382 in writing. The response shall be served by certified mail,1383 return receipt requested, with an additional copy being sent by1384 regular first-class mail, to the address shown on the statutory1385 demand. Notwithstanding the foregoing, once the parties have1386 agreed on a mediator, the mediator may reschedule the mediation1387 for a date and time mutually convenient to the parties. The1388 parties shall share the costs of presuit mediation equally,1389 including the fee charged by the mediator, if any, unless the1390 parties agree otherwise, and the mediator may require advance1391 payment of its reasonable fees and costs. The failure of any1392 party to respond to a demand or response, to agree upon a1393 mediator, to make payment of fees and costs within the time1394 established by the mediator, or to appear for a scheduled1395 mediation session without the approval of the mediator, shall1396 constitute the failure or refusal to participate in the1397 mediation process and shall operate as an impasse in the presuit1398 mediation by such party, entitling the other party to proceed in1399 court and to seek an award of the costs and fees associated with1400 the mediation. Additionally, notwithstanding the provisions ofPage 56 of 85CODING: Words stricken are deletions; words underlined are additions.hb657 -05-e1F L O R I D A H O U S E O F R E P R E S E N T A T I V E SCS/CS/CS/CS/HB 657, Engrossed 1 20261401 any other law or document, persons who fail or refuse to1402 participate in the entire mediation process may not recover1403 attorney's fees and costs in subsequent litigation relating to1404 the dispute. If any presuit mediation session cannot be1405 scheduled and conducted within 90 days after the offer to1406 participate in mediation was filed, an impasse shall be deemed1407 to have occurred unless both parties agree to extend this1408 deadline.1409 (2)(c) In If presuit mediation as described in paragraph1410 (a) is not successful in resolving all issues between the1411 parties, the parties may file the unresolved dispute in a court1412 of competent jurisdiction or elect to enter into binding or1413 nonbinding arbitration pursuant to the procedures set forth in1414 s. 718.1255 and rules adopted by the division, with the1415 arbitration proceeding to be conducted by a department1416 arbitrator or by a private arbitrator certified by the1417 department. If all parties do not agree to arbitration1418 proceedings following an unsuccessful presuit mediation, any1419 party may file the dispute in court. A final order resulting1420 from nonbinding arbitration is final and enforceable in the1421 courts if a complaint for trial de novo is not filed in a court1422 of competent jurisdiction within 30 days after entry of the1423 order. As to any issue or dispute that is not resolved at1424 arbitration presuit mediation, and as to any issue that is1425 settled at arbitration presuit mediation but is thereafterPage 57 of 85CODING: Words stricken are deletions; words underlined are additions.hb657 -05-e1F L O R I D A H O U S E O F R E P R E S E N T A T I V E SCS/CS/CS/CS/HB 657, Engrossed 1 20261426 subject to an action seeking enforcement of the mediation1427 settlement, the prevailing party in any subsequent arbitration1428 or litigation proceeding may shall be entitled to seek recovery1429 of all costs and attorney attorney's fees incurred in the1430 arbitration presuit mediation process.1431 (3)(d) An A mediator or arbitrator is shall be authorized1432 to conduct mediation or arbitration under this section only if1433 he or she has been certified as a circuit court civil mediator1434 or arbitrator, respectively, pursuant to the requirements1435 established by the Florida Supreme Court. Settlement agreements1436 resulting from mediation shall not have precedential value in1437 proceedings involving parties other than those participating in1438 the mediation to support either a claim or defense in other1439 disputes.1440 (e) The presuit mediation procedures provided by this1441 subsection may be used by a Florida corporation responsible for1442 the operation of a community in which the voting members are1443 parcel owners or their representatives, in which membership in1444 the corporation is not a mandatory condition of parcel1445 ownership, or which is not authorized to impose an assessment1446 that may become a lien on the parcel.1447 Section 17. Section 720.319, Florida Statutes, is created1448 to read:1449 720.319 Dissolution of homeowners' association.—1450 (1) This section may be cited as the "Homeowners'Page 58 of 85CODING: Words stricken are deletions; words underlined are additions.hb657 -05-e1F L O R I D A H O U S E O F R E P R E S E N T A T I V E SCS/CS/CS/CS/HB 657, Engrossed 1 20261451 Association Dissolution and Accountability Act."1452 (2) The Legislature finds that:1453 (a) Homeowners' associations are created as authorized by1454 general law and are subject to covenants that encumber the land1455 and restrict the use of real property.1456 (b) In some circumstances, the continued enforcement of1457 those covenants may no longer serve the homeowners' or1458 community's interest and it is the public policy of this state1459 to provide by general law a method to preserve the value of the1460 property interests and the rights of alienation thereof that1461 homeowners have in their parcels before and after termination.1462 (c) It is contrary to the public policy of this state to1463 require the continued operation of a homeowners' association1464 when such continuation is made impossible by law or regulation.1465 (d) It is in the best interest of this state to provide1466 for termination of the declaration of covenants in certain1467 circumstances in order to:1468 1. Prevent covenants from impairing the continued1469 productive use of the property.1470 2. Provide fair treatment and just compensation for parcel1471 owners and preserve property values and the local property tax1472 base.1473 3. Preserve the state's long history of protecting1474 homestead property rights by ensuring that such protection is1475 extended to parcel owners whose parcel is their homestead in thePage 59 of 85CODING: Words stricken are deletions; words underlined are additions.hb657 -05-e1F L O R I D A H O U S E O F R E P R E S E N T A T I V E SCS/CS/CS/CS/HB 657, Engrossed 1 20261476 context of a termination of a declaration of covenants for an1477 association.1478 (3) A homeowners' association may be terminated by a plan1479 of termination that meets the requirements of this section and1480 is approved by a community association court program under s.1481 720.32.1482 (4) A plan of termination is subject to the following1483 conditions:1484 (a) The total voting interests of the association must1485 include all voting interests for the purpose of considering a1486 plan of termination. A voting interest of the association may1487 not be suspended for any reason when voting on termination under1488 this section.1489 (b) If the members reject a plan of termination, a1490 subsequent plan of termination under this section may not be1491 considered for at least 18 months after the date of the1492 rejection.1493 (c) A plan of termination must be approved by at least1494 two-thirds of the total voting interests of the association.1495 (d) A parcel owner desiring to reject a plan of1496 termination must do so by either voting in person or by proxy to1497 reject the plan or by delivering a written objection to the1498 association before or at the meeting called under subsection1499 (5).1500 (5)(a) A parcel owner who wishes to terminate aPage 60 of 85CODING: Words stricken are deletions; words underlined are additions.hb657 -05-e1F L O R I D A H O U S E O F R E P R E S E N T A T I V E SCS/CS/CS/CS/HB 657, Engrossed 1 20261501 homeowners' association in which he or she is a member must1502 provide to the board of administration a petition for a plan of1503 termination that is signed by at least 50 percent of the voting1504 members of the association. The board must notify the city in1505 which the homeowners' association is located in writing,1506 including, but not limited to, through e-mail, that a plan of1507 termination has begun and hold a meeting of the members within1508 60 days after receipt of the signed petition. A voting interest1509 of the association may not be suspended for any reason for1510 purposes of signing the petition or determining whether the 501511 percent threshold for such petition has been met under this1512 paragraph.1513 (b) Notice of such meeting must be made in accordance with1514 s. 720.303(2) and include the following information:1515 1. A copy of the proposed plan of dissolution.1516 2. An explanation of how the common areas and the assets1517 of the association will be managed or transferred.1518 3. The manner in which voting will take place.1519 (c) If the board fails to call a meeting within the 60-day1520 time period, any member may petition a community association1521 court program under s. 720.32 or, if a community association1522 court program does not exist in the judicial circuit in which1523 the association is located, another court of competent1524 jurisdiction for an order compelling compliance with this1525 section.Page 61 of 85CODING: Words stricken are deletions; words underlined are additions.hb657 -05-e1F L O R I D A H O U S E O F R E P R E S E N T A T I V E SCS/CS/CS/CS/HB 657, Engrossed 1 20261526 (6) If a plan of termination is approved, the board must1527 submit such plan to the community association court program in1528 the judicial circuit in which the association is located or, if1529 a community association court program does not exist, another1530 court of competent jurisdiction. The court shall examine the1531 plan of termination and determine its procedural sufficiency1532 and, within 45 days after receipt of the plan, notify the1533 association by mail of any procedural deficiencies or that the1534 plan is accepted. If notice is not provided within the 45-day1535 time period, the plan of termination is deemed accepted. If the1536 court determines that the conditions required by this section1537 have been met and that the plan of termination complies with the1538 procedural requirements of this section, the court must1539 authorize the termination and the termination may proceed as1540 authorized in this section.1541 (7)(a) A plan of termination and the consents or joinders1542 of parcel owners must be recorded in the public records of each1543 county in which any portion of the association is located. The1544 plan is effective only upon recordation or at a later date1545 specified in the plan.1546 (b) Upon recordation or at a later date specified in the1547 plan of termination, title to the association property vests in1548 a termination trustee. The board serves as such trustee unless1549 another person is appointed in the plan of termination. If the1550 board is not the termination trustee, the board must transferPage 62 of 85CODING: Words stricken are deletions; words underlined are additions.hb657 -05-e1F L O R I D A H O U S E O F R E P R E S E N T A T I V E SCS/CS/CS/CS/HB 657, Engrossed 1 20261551 any association property to such trustee. The termination1552 trustee is vested with the powers given by the declaration and1553 bylaws of the association and subsection (9). If the board is1554 unable, unwilling, or fails to act as termination trustee, a1555 parcel owner may petition the community association court1556 program to appoint a termination trustee.1557 (8) If the board fails to hold the meeting under1558 subsection (5), obstructs the termination process, or refuses to1559 record the decision of the members to terminate, a member may1560 file a petition with the community association court program in1561 the judicial circuit in which the association is located or, if1562 a community association court program does not exist, another1563 court of competent jurisdiction. A community association court1564 program may do all of the following:1565 (a) Verify compliance with the procedural requirements of1566 this section and all statutory voting requirements.1567 (b) Order the Department of State to dissolve the1568 homeowners' association.1569 (c) Appoint a termination trustee to manage the1570 distribution of assets and resolution of liabilities.1571 (9) The approval of the plan of termination does not1572 terminate the board of administration, which shall continue in1573 existence following approval of the plan of termination with all1574 powers and duties such board had before approval of the plan.1575 Notwithstanding any provision to the contrary in the declarationPage 63 of 85CODING: Words stricken are deletions; words underlined are additions.hb657 -05-e1F L O R I D A H O U S E O F R E P R E S E N T A T I V E SCS/CS/CS/CS/HB 657, Engrossed 1 20261576 or bylaws, after approval of the plan of termination the board1577 must:1578 (a) Employ directors, agents, attorneys, and other1579 professionals to liquidate or conclude the board's affairs.1580 (b) Conduct the affairs of the association as necessary1581 for the liquidation or termination.1582 (c) Carry out contracts and collect, pay, and settle debts1583 and claims for and against the association.1584 (d) Defend suits brought against the association.1585 (e) Sue in the name of the association for all sums due or1586 owed to the association or to recover any association property.1587 (f) Perform any act necessary to maintain, repair, or1588 demolish unsafe or uninhabitable improvements or other1589 association property in compliance with applicable codes.1590 (g) Sell at public or private sale or exchange, convey, or1591 otherwise dispose of assets of the association for an amount1592 deemed to be in the best interests of the association, and1593 execute bills of sale and deeds of conveyance in the name of the1594 association.1595 (h) Collect and receive rents, profits, accounts1596 receivable, income, maintenance fees, special assessments, or1597 insurance proceeds for the association.1598 (i) Contract and do anything in the name of the1599 association which is proper or convenient to terminate the1600 affairs of the association.Page 64 of 85CODING: Words stricken are deletions; words underlined are additions.hb657 -05-e1F L O R I D A H O U S E O F R E P R E S E N T A T I V E SCS/CS/CS/CS/HB 657, Engrossed 1 20261601 (10)(a) All remaining association assets after the payment1602 of any lawful debts must be distributed equally among members or1603 as otherwise provided in the plan of termination.1604 (b) A member may not be subject to personal liability for1605 unpaid obligations beyond the member's regular assessments or1606 special assessments that existed before the vote for1607 termination.1608 (11)(a) The following actions by an association or the1609 officers or directors thereof are unlawful:1610 1. Failing to call or notice a meeting after receipt of a1611 valid petition for a plan of termination.1612 2. Spending association funds to campaign for or against1613 the plan of termination.1614 3. Concealing any financial or property records relevant1615 to the plan of termination.1616 (b) An officer or a director who violates paragraph (a) is1617 subject to any of the following:1618 1. A civil penalty of up to $5,000 per violation.1619 2. Removal from office by court order.1620 3. Personal liability for legal fees incurred by the1621 petitioners.1622 Section 18. Section 720.32, Florida Statutes, is created1623 to read:1624 720.32 Community association court program.—1625 (1) It is the intent of the Legislature to encourage andPage 65 of 85CODING: Words stricken are deletions; words underlined are additions.hb657 -05-e1F L O R I D A H O U S E O F R E P R E S E N T A T I V E SCS/CS/CS/CS/HB 657, Engrossed 1 20261626 support the judicial circuits of the state to create and1627 maintain a community association court program in each judicial1628 circuit. The purpose of a community association court program is1629 to provide an optional, voluntary process for community1630 associations and the members thereof to address disputes as an1631 alternative to entering into mediation or arbitration. It is the1632 intent of the Legislature that this section provide a detailed1633 statewide standard for the creation, operation, and procedures1634 for community association court programs.1635 (2) A circuit court may create and administer a community1636 association court program. The chief judge shall designate at1637 least one judge to preside over the community association court1638 program. The chief judge may issue administrative orders1639 concerning the community association court program.1640 (3) The community association court program has1641 jurisdiction over disputes, including any related termination or1642 enforcement proceedings, arising under any of the following:1643 (a) Chapter 718, the Condominium Act.1644 (b) Chapter 719, the Cooperative Act.1645 (c) Chapter 720, the Homeowners' Association Act.1646 (4) The community association court program may do all of1647 the following:1648 (a) Enforce all statutory rights of unit owners and parcel1649 owners.1650 (b) Verify and compel compliance with all statutoryPage 66 of 85CODING: Words stricken are deletions; words underlined are additions.hb657 -05-e1F L O R I D A H O U S E O F R E P R E S E N T A T I V E SCS/CS/CS/CS/HB 657, Engrossed 1 20261651 requirements by community associations, boards of1652 administration, and officers or directors of such boards.1653 (c) Order the Department of State to dissolve a community1654 association.1655 (d) Appoint a termination trustee to manage the1656 distribution of association assets and resolution of1657 liabilities.1658 (e) Impose civil penalties for violations of statutory1659 rights.1660 (f) Issue injunctive relief as appropriate.1661 (g) Award reasonable attorney fees and costs as1662 appropriate.1663 (5) By January 1 of each year, the chief judge in each1664 judicial circuit in which a community association court program1665 is created shall submit to the President of the Senate and the1666 Speaker of the House of Representatives a report that summarizes1667 the caseload of each community association court program and the1668 outcomes of such caseload.1669 (6) The Office of the State Courts Administrator shall1670 establish procedure, staffing, and reporting requirements for1671 the operation of the community association court program.1672 (7) The costs associated with the creation, operation, and1673 compliance and enforcement duties of the community association1674 court program shall be funded as authorized by and consistent1675 with funding appropriated in the General Appropriations Act.Page 67 of 85CODING: Words stricken are deletions; words underlined are additions.hb657 -05-e1F L O R I D A H O U S E O F R E P R E S E N T A T I V E SCS/CS/CS/CS/HB 657, Engrossed 1 20261676 (8) Funds specifically appropriated by an operating1677 appropriation or a nonoperating transfer from the Division of1678 Florida Condominiums, Timeshares, and Mobile Homes Trust Fund to1679 the state court system to support judicial functions relating to1680 community associations which remain unencumbered as of June 301681 or undisbursed as of September 30 each year shall revert to the1682 Division of Florida Condominiums, Timeshares, and Mobile Homes1683 Trust Fund.1684 (9) This section does not apply to timeshare condominium1685 associations or timeshare cooperative associations unless the1686 facilities of such associations include homestead condominium1687 units or homestead cooperative units.1688 Section 19. Subsections (11), (13), and (17) of section1689 26.031, Florida Statutes, are amended to read:1690 26.031 Judicial circuits; number of judges.—The number of1691 circuit judges in each circuit shall be as follows:1692 JUDICIAL CIRCUIT TOTAL1693 (11) Eleventh..........................................85831694 (13) Thirteenth........................................46451695 (17) Seventeenth.......................................59581696 Section 20. The amendments made by this act to s. 26.031,1697 Florida Statutes, are for the purpose of authorizing additional1698 judgeships specifically for the community association court1699 program created in s. 720.32, Florida Statutes, by this act.1700 Section 21. Paragraph (d) of subsection (1) of sectionPage 68 of 85CODING: Words stricken are deletions; words underlined are additions.hb657 -05-e1F L O R I D A H O U S E O F R E P R E S E N T A T I V E SCS/CS/CS/CS/HB 657, Engrossed 1 20261701 34.01, Florida Statutes, is amended to read:1702 34.01 Jurisdiction of county court.—1703 (1) County courts shall have original jurisdiction:1704 (d) Of disputes occurring in the homeowners' associations1705 as described in s. 720.311(2)(a), which shall be concurrent with1706 jurisdiction of the circuit courts.1707 Section 22. Paragraph (a) of subsection (1) of section1708 336.125, Florida Statutes, is amended to read:1709 336.125 Closing and abandonment of roads; optional1710 conveyance to homeowners' association; traffic control1711 jurisdiction.—1712 (1)(a) In addition to the authority provided in s. 336.12,1713 the governing body of the county may abandon the roads and1714 rights-of-way dedicated in a recorded residential subdivision1715 plat and simultaneously convey the county's interest in such1716 roads, rights-of-way, and appurtenant drainage facilities to a1717 homeowners' association for the subdivision, if the following1718 conditions have been met:1719 1. The homeowners' association has requested the1720 abandonment and conveyance in writing for the purpose of1721 converting the subdivision to a gated neighborhood with1722 restricted public access.1723 2. No fewer than four-fifths of the owners of record of1724 property located in the subdivision have consented in writing to1725 the abandonment and simultaneous conveyance to the homeowners'Page 69 of 85CODING: Words stricken are deletions; words underlined are additions.hb657 -05-e1F L O R I D A H O U S E O F R E P R E S E N T A T I V E SCS/CS/CS/CS/HB 657, Engrossed 1 20261726 association.1727 3. The homeowners' association is both a corporation not1728 for profit organized and in good standing under chapter 617, and1729 a "homeowners' association" as defined in s. 720.301 s.1730 720.301(9) with the power to levy and collect assessments for1731 routine and periodic major maintenance and operation of street1732 lighting, drainage, sidewalks, and pavement in the subdivision.1733 4. The homeowners' association has entered into and1734 executed such agreements, covenants, warranties, and other1735 instruments; has provided, or has provided assurance of, such1736 funds, reserve funds, and funding sources; and has satisfied1737 such other requirements and conditions as may be established or1738 imposed by the county with respect to the ongoing operation,1739 maintenance, and repair and the periodic reconstruction or1740 replacement of the roads, drainage, street lighting, and1741 sidewalks in the subdivision after the abandonment by the1742 county.1743 Section 23. Subsection (2) of section 558.002, Florida1744 Statutes, is amended to read:1745 558.002 Definitions.—As used in this chapter, the term:1746 (2) "Association" has the same meaning as in s. 718.103,1747 s. 719.103(2), s. 720.301(10) s. 720.301(9), or s. 723.075.1748 Section 24. Subsection (6) of section 617.0601, Florida1749 Statutes, is amended to read:1750 617.0601 Members, generally.—Page 70 of 85CODING: Words stricken are deletions; words underlined are additions.hb657 -05-e1F L O R I D A H O U S E O F R E P R E S E N T A T I V E SCS/CS/CS/CS/HB 657, Engrossed 1 20261751 (6) Subsections (1), (2), (3), and (4) do not apply to a1752 corporation that is an association as defined in s. 720.301(10)1753 s. 720.301.1754 Section 25. Subsection (6) of section 617.0701, Florida1755 Statutes, is amended to read:1756 617.0701 Meetings of members, generally; failure to hold1757 annual meeting; special meeting; consent to corporate actions1758 without meetings; waiver of notice of meetings.—1759 (6) Subsections (1) and (3) do not apply to any1760 corporation that is an association as defined in s. 720.301(10)1761 s. 720.301; a corporation regulated by chapter 718, chapter 719,1762 chapter 720, chapter 721, or chapter 723; or a corporation where1763 membership in such corporation is required pursuant to a1764 document recorded in the county property records.1765 Section 26. Subsection (7) of section 617.0721, Florida1766 Statutes, is amended to read:1767 617.0721 Voting by members.—1768 (7) Subsections (1), (5), and (6) do not apply to a1769 corporation that is an association, as defined in s. 720.301(10)1770 s. 720.301, or a corporation regulated by chapter 718 or chapter1771 719.1772 Section 27. Section 617.0725, Florida Statutes, is amended1773 to read:1774 617.0725 Quorum.—An amendment to the articles of1775 incorporation or the bylaws which adds, changes, or deletes aPage 71 of 85CODING: Words stricken are deletions; words underlined are additions.hb657 -05-e1F L O R I D A H O U S E O F R E P R E S E N T A T I V E SCS/CS/CS/CS/HB 657, Engrossed 1 20261776 greater or lesser quorum or voting requirement must meet the1777 same quorum or voting requirement and be adopted by the same1778 vote and voting groups required to take action under the quorum1779 and voting requirements then in effect or proposed to be1780 adopted, whichever is greater. This section does not apply to1781 any corporation that is an association, as defined in s.1782 720.301(10) s. 720.301(9), or any corporation regulated under1783 chapter 718 or chapter 719.1784 Section 28. Subsection (3) of section 617.0808, Florida1785 Statutes, is amended to read:1786 617.0808 Removal of directors.—1787 (3) This section does not apply to any corporation that is1788 an association, as defined in s. 720.301(10) s. 720.301, or a1789 corporation regulated under chapter 718 or chapter 719.1790 Section 29. Section 617.1606, Florida Statutes, is amended1791 to read:1792 617.1606 Access to records.—Sections 617.1601-617.1605 do1793 not apply to a corporation that is an association, as defined in1794 s. 720.301(10) s. 720.301, or a corporation regulated under1795 chapter 718 or chapter 719.1796 Section 30. Paragraph (b) of subsection (1) of section1797 718.116, Florida Statutes, is amended to read:1798 718.116 Assessments; liability; lien and priority;1799 interest; collection.—1800 (1)Page 72 of 85CODING: Words stricken are deletions; words underlined are additions.hb657 -05-e1F L O R I D A H O U S E O F R E P R E S E N T A T I V E SCS/CS/CS/CS/HB 657, Engrossed 1 20261801 (b)1. The liability of a first mortgagee or its successor1802 or assignees who acquire title to a unit by foreclosure or by1803 deed in lieu of foreclosure for the unpaid assessments that1804 became due before the mortgagee's acquisition of title is1805 limited to the lesser of:1806 a. The unit's unpaid common expenses and regular periodic1807 assessments which accrued or came due during the 12 months1808 immediately preceding the acquisition of title and for which1809 payment in full has not been received by the association; or1810 b. One percent of the original mortgage debt. The1811 provisions of this paragraph apply only if the first mortgagee1812 joined the association as a defendant in the foreclosure action.1813 Joinder of the association is not required if, on the date the1814 complaint is filed, the association was dissolved or did not1815 maintain an office or agent for service of process at a location1816 which was known to or reasonably discoverable by the mortgagee.1817 2. An association, or its successor or assignee, that1818 acquires title to a unit through the foreclosure of its lien for1819 assessments is not liable for any unpaid assessments, late fees,1820 interest, or reasonable attorney's fees and costs that came due1821 before the association's acquisition of title in favor of any1822 other association, as defined in s. 718.103 or s. 720.301(10) s.1823 720.301(9), which holds a superior lien interest on the unit.1824 This subparagraph is intended to clarify existing law.1825 Section 31. Paragraph (d) of subsection (1) and paragraphPage 73 of 85CODING: Words stricken are deletions; words underlined are additions.hb657 -05-e1F L O R I D A H O U S E O F R E P R E S E N T A T I V E SCS/CS/CS/CS/HB 657, Engrossed 1 20261826 (e) of subsection (2) of section 718.503, Florida Statutes, are1827 amended to read:1828 718.503 Developer disclosure prior to sale; nondeveloper1829 unit owner disclosure prior to sale; voidability.—1830 (1) DEVELOPER DISCLOSURE.—1831 (d) Milestone inspection, turnover inspection report, or1832 structural integrity reserve study.—If the association is1833 required to have completed a milestone inspection as described1834 in s. 553.899, a turnover inspection report for a turnover1835 inspection performed on or after July 1, 2023, or a structural1836 integrity reserve study, and the association has not completed1837 the milestone inspection, the turnover inspection report, or the1838 structural integrity reserve study, each contract entered into1839 after December 31, 2024, for the sale of a residential unit1840 shall contain in conspicuous type a statement indicating that1841 the association is required to have a milestone inspection, a1842 turnover inspection report, or a structural integrity reserve1843 study and has not completed such inspection, report, or study,1844 as appropriate. If the association is not required to have a1845 milestone inspection as described in s. 553.899 or a structural1846 integrity reserve study, each contract entered into after1847 December 31, 2024, for the sale of a residential unit shall1848 contain in conspicuous type a statement indicating that the1849 association is not required to have a milestone inspection or a1850 structural integrity reserve study, as appropriate. If thePage 74 of 85CODING: Words stricken are deletions; words underlined are additions.hb657 -05-e1F L O R I D A H O U S E O F R E P R E S E N T A T I V E SCS/CS/CS/CS/HB 657, Engrossed 1 20261851 association has completed a milestone inspection as described in1852 s. 553.899, a turnover inspection report for a turnover1853 inspection performed on or after July 1, 2023, or a structural1854 integrity reserve study, each contract entered into after1855 December 31, 2024, for the sale of a residential unit shall1856 contain in conspicuous type:1857 1. A clause which states: THE BUYER HEREBY ACKNOWLEDGES1858 THAT BUYER HAS BEEN PROVIDED A CURRENT COPY OF THE INSPECTOR-1859 PREPARED SUMMARY OF THE MILESTONE INSPECTION REPORT AS DESCRIBED1860 IN SECTION 553.899, FLORIDA STATUTES, IF APPLICABLE; A COPY OF1861 THE TURNOVER INSPECTION REPORT DESCRIBED IN SECTION1862 718.301(4)(p) AND (q), FLORIDA STATUTES, IF APPLICABLE; AND A1863 COPY OF THE ASSOCIATION'S MOST RECENT STRUCTURAL INTEGRITY1864 RESERVE STUDY DESCRIBED IN SECTIONS 718.103(29) 718.103(26) AND1865 718.112(2)(g), FLORIDA STATUTES, IF APPLICABLE, MORE THAN 151866 DAYS, EXCLUDING SATURDAYS, SUNDAYS, AND LEGAL HOLIDAYS, BEFORE1867 EXECUTION OF THIS CONTRACT; and1868 2. A clause which states: THIS AGREEMENT IS VOIDABLE BY1869 BUYER BY DELIVERING WRITTEN NOTICE OF THE BUYER'S INTENTION TO1870 CANCEL WITHIN 15 DAYS, EXCLUDING SATURDAYS, SUNDAYS, AND LEGAL1871 HOLIDAYS, AFTER THE DATE OF EXECUTION OF THIS AGREEMENT BY THE1872 BUYER AND RECEIPT BY BUYER OF A CURRENT COPY OF THE INSPECTOR-1873 PREPARED SUMMARY OF THE MILESTONE INSPECTION REPORT AS DESCRIBED1874 IN SECTION 553.899, FLORIDA STATUTES, IF APPLICABLE; A COPY OF1875 THE TURNOVER INSPECTION REPORT DESCRIBED IN SECTIONPage 75 of 85CODING: Words stricken are deletions; words underlined are additions.hb657 -05-e1F L O R I D A H O U S E O F R E P R E S E N T A T I V E SCS/CS/CS/CS/HB 657, Engrossed 1 20261876 718.301(4)(p) AND (q), FLORIDA STATUTES, IF APPLICABLE; AND A1877 COPY OF THE ASSOCIATION'S MOST RECENT STRUCTURAL INTEGRITY1878 RESERVE STUDY DESCRIBED IN SECTIONS 718.103(29) 718.103(26) AND1879 718.112(2)(g), FLORIDA STATUTES, IF APPLICABLE. ANY PURPORTED1880 WAIVER OF THESE VOIDABILITY RIGHTS SHALL BE OF NO EFFECT. BUYER1881 MAY EXTEND THE TIME FOR CLOSING FOR A PERIOD OF NOT MORE THAN 151882 DAYS, EXCLUDING SATURDAYS, SUNDAYS, AND LEGAL HOLIDAYS, AFTER1883 THE BUYER RECEIVES A CURRENT COPY OF THE INSPECTOR-PREPARED1884 SUMMARY OF THE MILESTONE INSPECTION REPORT AS DESCRIBED IN1885 SECTION 553.899, FLORIDA STATUTES; A COPY OF THE TURNOVER1886 INSPECTION REPORT DESCRIBED IN SECTION 718.301(4)(p) AND (q),1887 FLORIDA STATUTES; OR A COPY OF THE ASSOCIATION'S MOST RECENT1888 STRUCTURAL INTEGRITY RESERVE STUDY DESCRIBED IN SECTIONS1889 718.103(29) 718.103(26) AND 718.112(2)(g), FLORIDA STATUTES, IF1890 REQUESTED IN WRITING. BUYER'S RIGHT TO VOID THIS AGREEMENT SHALL1891 TERMINATE AT CLOSING.18921893 A contract that does not conform to the requirements of this1894 paragraph is voidable at the option of the purchaser before1895 closing.1896 (2) NONDEVELOPER DISCLOSURE.—1897 (e) If the association is required to have completed a1898 milestone inspection as described in s. 553.899, a turnover1899 inspection report for a turnover inspection performed on or1900 after July 1, 2023, or a structural integrity reserve study, andPage 76 of 85CODING: Words stricken are deletions; words underlined are additions.hb657 -05-e1F L O R I D A H O U S E O F R E P R E S E N T A T I V E SCS/CS/CS/CS/HB 657, Engrossed 1 20261901 the association has not completed the milestone inspection, the1902 turnover inspection report, or the structural integrity reserve1903 study, each contract entered into after December 31, 2024, for1904 the sale of a residential unit shall contain in conspicuous type1905 a statement indicating that the association is required to have1906 a milestone inspection, a turnover inspection report, or a1907 structural integrity reserve study and has not completed such1908 inspection, report, or study, as appropriate. If the association1909 is not required to have a milestone inspection as described in1910 s. 553.899 or a structural integrity reserve study, each1911 contract entered into after December 31, 2024, for the sale of a1912 residential unit shall contain in conspicuous type a statement1913 indicating that the association is not required to have a1914 milestone inspection or a structural integrity reserve study, as1915 appropriate. If the association has completed a milestone1916 inspection as described in s. 553.899, a turnover inspection1917 report for a turnover inspection performed on or after July 1,1918 2023, or a structural integrity reserve study, each contract1919 entered into after December 31, 2024, for the resale of a1920 residential unit shall contain in conspicuous type:1921 1. A clause which states: THE BUYER HEREBY ACKNOWLEDGES1922 THAT BUYER HAS BEEN PROVIDED A CURRENT COPY OF THE INSPECTOR-1923 PREPARED SUMMARY OF THE MILESTONE INSPECTION REPORT AS DESCRIBED1924 IN SECTION 553.899, FLORIDA STATUTES, IF APPLICABLE; A COPY OF1925 THE TURNOVER INSPECTION REPORT DESCRIBED IN SECTIONPage 77 of 85CODING: Words stricken are deletions; words underlined are additions.hb657 -05-e1F L O R I D A H O U S E O F R E P R E S E N T A T I V E SCS/CS/CS/CS/HB 657, Engrossed 1 20261926 718.301(4)(p) AND (q), FLORIDA STATUTES, IF APPLICABLE; AND A1927 COPY OF THE ASSOCIATION'S MOST RECENT STRUCTURAL INTEGRITY1928 RESERVE STUDY DESCRIBED IN SECTIONS 718.103(29) 718.103(26) AND1929 718.112(2)(g), FLORIDA STATUTES, IF APPLICABLE, MORE THAN 71930 DAYS, EXCLUDING SATURDAYS, SUNDAYS, AND LEGAL HOLIDAYS, BEFORE1931 EXECUTION OF THIS CONTRACT; and1932 2. A clause which states: THIS AGREEMENT IS VOIDABLE BY1933 BUYER BY DELIVERING WRITTEN NOTICE OF THE BUYER'S INTENTION TO1934 CANCEL WITHIN 7 DAYS, EXCLUDING SATURDAYS, SUNDAYS, AND LEGAL1935 HOLIDAYS, AFTER THE DATE OF EXECUTION OF THIS AGREEMENT BY THE1936 BUYER AND RECEIPT BY BUYER OF A CURRENT COPY OF THE INSPECTOR-1937 PREPARED SUMMARY OF THE MILESTONE INSPECTION REPORT AS DESCRIBED1938 IN SECTION 553.899, FLORIDA STATUTES, IF APPLICABLE; A COPY OF1939 THE TURNOVER INSPECTION REPORT DESCRIBED IN SECTION1940 718.301(4)(p) AND (q), FLORIDA STATUTES, IF APPLICABLE; AND A1941 COPY OF THE ASSOCIATION'S MOST RECENT STRUCTURAL INTEGRITY1942 RESERVE STUDY DESCRIBED IN SECTIONS 718.103(29) 718.103(26) AND1943 718.112(2)(g), FLORIDA STATUTES, IF APPLICABLE. ANY PURPORTED1944 WAIVER OF THESE VOIDABILITY RIGHTS SHALL BE OF NO EFFECT. BUYER1945 MAY EXTEND THE TIME FOR CLOSING FOR A PERIOD OF NOT MORE THAN 71946 DAYS, EXCLUDING SATURDAYS, SUNDAYS, AND LEGAL HOLIDAYS, AFTER1947 THE BUYER RECEIVES A CURRENT COPY OF THE INSPECTOR-PREPARED1948 SUMMARY OF THE MILESTONE INSPECTION REPORT AS DESCRIBED IN1949 SECTION 553.899, FLORIDA STATUTES; A COPY OF THE TURNOVER1950 INSPECTION REPORT DESCRIBED IN SECTION 718.301(4)(p) AND (q),Page 78 of 85CODING: Words stricken are deletions; words underlined are additions.hb657 -05-e1F L O R I D A H O U S E O F R E P R E S E N T A T I V E SCS/CS/CS/CS/HB 657, Engrossed 1 20261951 FLORIDA STATUTES; OR A COPY OF THE ASSOCIATION'S MOST RECENT1952 STRUCTURAL INTEGRITY RESERVE STUDY DESCRIBED IN SECTIONS1953 718.103(29) 718.103(26) AND 718.112(2)(g), FLORIDA STATUTES, IF1954 REQUESTED IN WRITING. BUYER'S RIGHT TO VOID THIS AGREEMENT SHALL1955 TERMINATE AT CLOSING.19561957 A contract that does not conform to the requirements of this1958 paragraph is voidable at the option of the purchaser before1959 closing.1960 Section 32. Paragraph (d) of subsection (1) and paragraph1961 (d) of subsection (2) of section 719.503, Florida Statutes, are1962 amended to read:1963 719.503 Disclosure prior to sale.—1964 (1) DEVELOPER DISCLOSURE.—1965 (d) Milestone inspection, turnover inspection report, or1966 structural integrity reserve study.—If the association is1967 required to have completed a milestone inspection as described1968 in s. 553.899, a turnover inspection report for a turnover1969 inspection performed on or after July 1, 2023, or a structural1970 integrity reserve study, and the association has not completed1971 the milestone inspection, the turnover inspection report, or the1972 structural integrity reserve study, each contract entered into1973 after December 31, 2024, for the sale of a residential unit1974 shall contain in conspicuous type a statement indicating that1975 the association is required to have a milestone inspection, aPage 79 of 85CODING: Words stricken are deletions; words underlined are additions.hb657 -05-e1F L O R I D A H O U S E O F R E P R E S E N T A T I V E SCS/CS/CS/CS/HB 657, Engrossed 1 20261976 turnover inspection report, or a structural integrity reserve1977 study and has not completed such inspection, report, or study,1978 as appropriate. If the association is not required to have a1979 milestone inspection as described in s. 553.899 or a structural1980 integrity reserve study, each contract entered into after1981 December 31, 2024, for the sale of a residential unit shall1982 contain in conspicuous type a statement indicating that the1983 association is not required to have a milestone inspection or a1984 structural integrity reserve study, as appropriate. If the1985 association has completed a milestone inspection as described in1986 s. 553.899, a turnover inspection report for a turnover1987 inspection performed on or after July 1, 2023, or a structural1988 integrity reserve study, each contract entered into after1989 December 31, 2024, for the sale of a residential unit shall1990 contain in conspicuous type:1991 1. A clause which states: THE BUYER HEREBY ACKNOWLEDGES1992 THAT BUYER HAS BEEN PROVIDED A CURRENT COPY OF THE INSPECTOR-1993 PREPARED SUMMARY OF THE MILESTONE INSPECTION REPORT AS DESCRIBED1994 IN SECTION 553.899, FLORIDA STATUTES, IF APPLICABLE; A COPY OF1995 THE TURNOVER INSPECTION REPORT DESCRIBED IN SECTION1996 719.301(4)(p) AND (q), FLORIDA STATUTES, IF APPLICABLE; AND A1997 COPY OF THE ASSOCIATION'S MOST RECENT STRUCTURAL INTEGRITY1998 RESERVE STUDY DESCRIBED IN SECTIONS 719.103(25) 719.103(24) AND1999 719.106(1)(k), FLORIDA STATUTES, IF APPLICABLE, MORE THAN 152000 DAYS, EXCLUDING SATURDAYS, SUNDAYS, AND LEGAL HOLIDAYS, BEFOREPage 80 of 85CODING: Words stricken are deletions; words underlined are additions.hb657 -05-e1F L O R I D A H O U S E O F R E P R E S E N T A T I V E SCS/CS/CS/CS/HB 657, Engrossed 1 20262001 EXECUTION OF THIS CONTRACT; and2002 2. A clause which states: THIS AGREEMENT IS VOIDABLE BY2003 BUYER BY DELIVERING WRITTEN NOTICE OF THE BUYER'S INTENTION TO2004 CANCEL WITHIN 15 DAYS, EXCLUDING SATURDAYS, SUNDAYS, AND LEGAL2005 HOLIDAYS, AFTER THE DATE OF EXECUTION OF THIS AGREEMENT BY THE2006 BUYER AND RECEIPT BY BUYER OF A CURRENT COPY OF THE INSPECTOR-2007 PREPARED SUMMARY OF THE MILESTONE INSPECTION REPORT AS DESCRIBED2008 IN SECTION 553.899, FLORIDA STATUTES, IF APPLICABLE; A COPY OF2009 THE TURNOVER INSPECTION REPORT DESCRIBED IN SECTION2010 719.301(4)(p) AND (q), FLORIDA STATUTES, IF APPLICABLE; AND A2011 COPY OF THE ASSOCIATION'S MOST RECENT STRUCTURAL INTEGRITY2012 RESERVE STUDY DESCRIBED IN SECTIONS 719.103(25) 719.103(24) AND2013 719.106(1)(k), FLORIDA STATUTES, IF APPLICABLE. ANY PURPORTED2014 WAIVER OF THESE VOIDABILITY RIGHTS SHALL BE OF NO EFFECT. BUYER2015 MAY EXTEND THE TIME FOR CLOSING FOR A PERIOD OF NOT MORE THAN 152016 DAYS, EXCLUDING SATURDAYS, SUNDAYS, AND LEGAL HOLIDAYS, AFTER2017 THE BUYER RECEIVES A CURRENT COPY OF THE INSPECTOR-PREPARED2018 SUMMARY OF THE MILESTONE INSPECTION REPORT AS DESCRIBED IN2019 SECTION 553.899, FLORIDA STATUTES; A COPY OF THE TURNOVER2020 INSPECTION REPORT DESCRIBED IN SECTION 719.301(4)(p) AND (q),2021 FLORIDA STATUTES; OR A COPY OF THE ASSOCIATION'S MOST RECENT2022 STRUCTURAL INTEGRITY RESERVE STUDY DESCRIBED IN SECTIONS2023 719.103(25) 719.103(24) AND 719.106(1)(k), FLORIDA STATUTES, IF2024 REQUESTED IN WRITING. BUYER'S RIGHT TO VOID THIS AGREEMENT SHALL2025 TERMINATE AT CLOSING.Page 81 of 85CODING: Words stricken are deletions; words underlined are additions.hb657 -05-e1F L O R I D A H O U S E O F R E P R E S E N T A T I V E SCS/CS/CS/CS/HB 657, Engrossed 1 202620262027 A contract that does not conform to the requirements of this2028 paragraph is voidable at the option of the purchaser before2029 closing.2030 (2) NONDEVELOPER DISCLOSURE.—2031 (d) If the association is required to have completed a2032 milestone inspection as described in s. 553.899, a turnover2033 inspection report for a turnover inspection performed on or2034 after July 1, 2023, or a structural integrity reserve study, and2035 the association has not completed the milestone inspection, the2036 turnover inspection report, or the structural integrity reserve2037 study, each contract entered into after December 31, 2024, for2038 the sale of a residential unit shall contain in conspicuous type2039 a statement indicating that the association is required to have2040 a milestone inspection, a turnover inspection report, or a2041 structural integrity reserve study and has not completed such2042 inspection, report, or study, as appropriate. If the association2043 is not required to have a milestone inspection as described in2044 s. 553.899 or a structural integrity reserve study, each2045 contract entered into after December 31, 2024, for the sale of a2046 residential unit shall contain in conspicuous type a statement2047 indicating that the association is not required to have a2048 milestone inspection or a structural integrity reserve study, as2049 appropriate. If the association has completed a milestone2050 inspection as described in s. 553.899, a turnover inspectionPage 82 of 85CODING: Words stricken are deletions; words underlined are additions.hb657 -05-e1F L O R I D A H O U S E O F R E P R E S E N T A T I V E SCS/CS/CS/CS/HB 657, Engrossed 1 20262051 report for a turnover inspection performed on or after July 1,2052 2023, or a structural integrity reserve study, each contract2053 entered into after December 31, 2024, for the resale of a2054 residential unit shall contain in conspicuous type:2055 1. A clause which states: THE BUYER HEREBY ACKNOWLEDGES2056 THAT BUYER HAS BEEN PROVIDED A CURRENT COPY OF THE INSPECTOR-2057 PREPARED SUMMARY OF THE MILESTONE INSPECTION REPORT AS DESCRIBED2058 IN SECTION 553.899, FLORIDA STATUTES, IF APPLICABLE; A COPY OF2059 THE TURNOVER INSPECTION REPORT DESCRIBED IN SECTION2060 719.301(4)(p) AND (q), FLORIDA STATUTES, IF APPLICABLE; AND A2061 COPY OF THE ASSOCIATION'S MOST RECENT STRUCTURAL INTEGRITY2062 RESERVE STUDY DESCRIBED IN SECTIONS 719.103(25) 719.103(24) AND2063 719.106(1)(k), FLORIDA STATUTES, IF APPLICABLE, MORE THAN 72064 DAYS, EXCLUDING SATURDAYS, SUNDAYS, AND LEGAL HOLIDAYS, BEFORE2065 EXECUTION OF THIS CONTRACT; and2066 2. A clause which states: THIS AGREEMENT IS VOIDABLE BY2067 BUYER BY DELIVERING WRITTEN NOTICE OF THE BUYER'S INTENTION TO2068 CANCEL WITHIN 7 DAYS, EXCLUDING SATURDAYS, SUNDAYS, AND LEGAL2069 HOLIDAYS, AFTER THE DATE OF EXECUTION OF THIS AGREEMENT BY THE2070 BUYER AND RECEIPT BY BUYER OF A CURRENT COPY OF THE INSPECTOR-2071 PREPARED SUMMARY OF THE MILESTONE INSPECTION REPORT AS DESCRIBED2072 IN SECTION 553.899, FLORIDA STATUTES, IF APPLICABLE; A COPY OF2073 THE TURNOVER INSPECTION REPORT DESCRIBED IN SECTION2074 719.301(4)(p) AND (q), FLORIDA STATUTES, IF APPLICABLE; AND A2075 COPY OF THE ASSOCIATION'S MOST RECENT STRUCTURAL INTEGRITYPage 83 of 85CODING: Words stricken are deletions; words underlined are additions.hb657 -05-e1F L O R I D A H O U S E O F R E P R E S E N T A T I V E SCS/CS/CS/CS/HB 657, Engrossed 1 20262076 RESERVE STUDY DESCRIBED IN SECTIONS 719.103(25) 719.103(24) AND2077 719.106(1)(k), FLORIDA STATUTES, IF APPLICABLE. ANY PURPORTED2078 WAIVER OF THESE VOIDABILITY RIGHTS SHALL BE OF NO EFFECT. BUYER2079 MAY EXTEND THE TIME FOR CLOSING FOR A PERIOD OF NOT MORE THAN 72080 DAYS, EXCLUDING SATURDAYS, SUNDAYS, AND LEGAL HOLIDAYS, AFTER2081 THE BUYER RECEIVES A CURRENT COPY OF THE INSPECTOR-PREPARED2082 SUMMARY OF THE MILESTONE INSPECTION REPORT AS DESCRIBED IN2083 SECTION 553.899, FLORIDA STATUTES; A COPY OF THE TURNOVER2084 INSPECTION REPORT DESCRIBED IN SECTION 719.301(4)(p) AND (q),2085 FLORIDA STATUTES; OR A COPY OF THE ASSOCIATION'S MOST RECENT2086 STRUCTURAL INTEGRITY RESERVE STUDY DESCRIBED IN SECTIONS2087 719.103(25) 719.103(24) AND 719.106(1)(k), FLORIDA STATUTES, IF2088 REQUESTED IN WRITING. BUYER'S RIGHT TO VOID THIS AGREEMENT SHALL2089 TERMINATE AT CLOSING.20902091 A contract that does not conform to the requirements of this2092 paragraph is voidable at the option of the purchaser before2093 closing.2094 Section 33. Paragraph (d) of subsection (2) of section2095 720.3085, Florida Statutes, is amended to read:2096 720.3085 Payment for assessments; lien claims.—2097 (2)2098 (d) An association, or its successor or assignee, that2099 acquires title to a parcel through the foreclosure of its lien2100 for assessments is not liable for any unpaid assessments, latePage 84 of 85CODING: Words stricken are deletions; words underlined are additions.hb657 -05-e1F L O R I D A H O U S E O F R E P R E S E N T A T I V E SCS/CS/CS/CS/HB 657, Engrossed 1 20262101 fees, interest, or reasonable attorney's fees and costs that2102 came due before the association's acquisition of title in favor2103 of any other association, as defined in s. 718.103 or s.2104 720.301(10) s. 720.301(9), which holds a superior lien interest2105 on the parcel. This paragraph is intended to clarify existing2106 law.2107 Section 34. For the purpose of incorporating the amendment2108 made by this act to section 720.3035, Florida Statutes, in a2109 reference thereto, subsection (9) of section 617.0825, Florida2110 Statutes, is reenacted to read:2111 617.0825 Board committees and advisory committees.—2112 (9) This section does not apply to a committee established2113 under chapter 718, chapter 719, or chapter 720 to perform the2114 functions set forth in s. 718.303(3), s. 719.303(3), s.2115 720.3035(1), s. 720.305(2), or s. 720.405, respectively.2116 Section 35. This act shall take effect July 1, 2026.Page 85 of 85CODING: Words stricken are deletions; words underlined are additions.hb657 -05-e1
Provides requirements for terminating dissolved HOA governing documents; provides requirements relating to easements of dissolved HOA; provides retroactive applicability; requires condominium & homeowners' associations to include specified statement in their governing documents or to hold meeting by date certain to vote to amend governing documents to include such statement; revises provisions relating to official records, electronic ballots, turnover inspection reports, & roofs; provides disclosure requirements for conflicts of interest; removes presuit mediation requirements; requires that specified arbitrators conduct arbitration proceedings; authorizes HOA's to be terminated; provides requirements for termination of HOA; provides duties & responsibilities of HOA board, & termination trustee; provides for distribution of HOA assets & paying lawful debts after termination; authorizes circuit court to create & administer community association court program; provides duties of chief judge; provides jurisdiction of community association court program; authorizes community association court program to take certain actions; requires each judicial circuit to submit to Legislature specified report annually by specified date; provides duties of OSCA; provides for funding & additional judges.
Sponsors
Rep. Commerce Committee sponsors H 657, and 15 members have co-sponsored it.

Rep. · Sponsor

Rep. · Co-sponsor

Rep. · Co-sponsor

Rep. · Co-sponsor

Rep. · R–119 · Co-sponsor

Rep. · D–46 · Co-sponsor

Rep. · R–29 · Co-sponsor

Rep. · R–72 · Co-sponsor

Rep. · D–14 · Co-sponsor

Rep. · D–88 · Co-sponsor
Committees
H 657 went before 4 committees: Housing, Agriculture & Tourism Subcommittee, Civil Justice and Claims Subcommittee, Budget Committee and Commerce Committee.


History
H 657 has taken 51 actions since Dec 4, 2025, the latest on Mar 13, 2026.
| Chamber | Action | |||
|---|---|---|---|---|
Mar 13, 2026 | Senate | Died in Rules | ||
Mar 5, 2026 | House | Read 2nd time | ||
Mar 5, 2026 | House | Amendment 909233 adopted | ||
Mar 5, 2026 | House | Added to Third Reading Calendar | ||
Mar 5, 2026 | House | Read 3rd time |
Votes
H 657 went to 5 roll calls in the House, the latest on Mar 5, 2026 at 108–2.
| Chamber | Question | Yea | Nay | |||
|---|---|---|---|---|---|---|
Mar 5, 2026 | House | House: Third Reading RCS#706 | 108 | 2 | ||
Feb 26, 2026 | House | House Commerce Committee | 23 | 0 | ||
Feb 16, 2026 | House | House Budget Committee | 24 | 0 | ||
Feb 3, 2026 | House | House Civil Justice & Claims Subcommittee | 14 | 1 | ||
Jan 21, 2026 | House | House Housing, Agriculture & Tourism Subcommittee | 16 | 0 |
Source: flsenate.gov · legiscan.com