Numerical Index Summary Of Laws Amended In The 2022 Special Legislative Sessions And 2023 Regular Legislative Session

The following is our post-Legislative Session report on residential housing law changes from the 2022 Special Legislative Sessions and the 2023 Regular Legislative Session. The full text of each bill, as well as applicable legislative staff reports, are available on the legislative web sites (www.flsenate.gov;      www.myfloridahouse.com; and www.leg.state.fl.us.). Note: F.S. = Florida Statute. HB = House Bill. SB=Senate Bill. SIRS=Structural Integrity Reserve Study. All changes are effective as of July 1, 2023 or as noted.

SB    154    SURFSIDE    LAW    UPDATE    APPLICABLE    TO    RESIDENTIAL CONDOMINIUM  AND  COOPERATIVE  BUILDINGS  THAT  ARE  THREE STORIES OR MORE IN HEIGHT. (Effective Date was June 9, 2023).

553.899(2)(a) – The milestone inspection can be conducted by a team of professionals with an engineer or architect acting as a registered design professional in charge with all work and reports signed and sealed.

553.899(3)(a) – If the building was 30 years old from the issuance of the CO before July 1, 2022, the milestone inspection must be performed by December 31, 2024. If the building reached 30 years old after July 1, 2022 and before December 31, 2024, the milestone inspection must be performed by December 31, 2025.

553.899(3)(b) – The local enforcement agency may determine that local circumstances, including environmental conditions such as proximity to salt water as defined in F.S. 379.101, require that a milestone inspection study must be performed by December 31 of the year in which the building reaches 25 years of age. (Removed the 3 miles from the Coastline standard).

553.899(3)(c) – The local enforcement agency may extend the date by which the milestone inspection study is due upon a showing of good cause if the association has entered into a contract to have the study performed by it cannot be completed on time.

553.899(3)(c) – The local enforcement agency may accept an inspection report performed before July 1, 2022 if the inspection and report substantially comply with the current requirements. (This allows 40 year studies required in Dade and Broward counties to be used as the milestone study.)

553.899(4) – For a mixed-use building with part of the building being a condominium/cooperative and part of it not the association and the non- condominium/cooperative owner are each responsible for conducting the milestone study. However, the association is only responsible for the cost attributable to the portion of the building for which the association is required to maintain.

553.899(5) – The association must notify the unit owners of the required milestone inspection within 14 days after receipt of the written notice from the local enforcement agency and provide a date that the inspection must be completed.

553.899(6)-(7) – Phase one of the milestone inspection must be completed within 180 days after receiving the notice required in (5). If a phase 2 inspection is required, then, within 180 days after submitting phase one, the engineer must submit a phase 2 progress report to the local enforcement agency with a timeline for expected completion.

553.899(9) – Within 45 days after receiving the milestone inspection report, the association must distribute a summary of the report to each owner.

553.899(12) – By December 31, 2024, the Florida Building Commission must establish inspection criteria, testing protocols, and standardized inspection and reporting forms.

718/719 – In a budget adopted by an association that is required to have a Structural Integrity Reserve Study (herein after SIRS) reserves, the amount of the reserves must be based on the most recent SIRS. For SIRS items for which an estimated useful life is not readily ascertainable or with an estimated life greater than 25 years, an association is not required to maintain a replacement cost reserve for such items but must reserve for deferred maintenance for those items. The association may adjust the amounts for inflation annually even though a SIRS is only required every 10 years.

718/719 – A SIRS is only required for a residential condominium or cooperative. Commercial condominiums or cooperatives are not required to have a SIRS.

718/719 – SIRS reserves are no longer required for floors and foundations, but exterior doors have been added to the list. Windows are still included in the SIRS list but only windows and doors that are maintained by the association are required to be included in the SIRS.

718/718 – The SIRS visual inspection may now also be conducted by a reserve specialist in addition to an architect or engineer.

718/719 – The SIRS may now recommend that no reserves are required for an item where the estimate of the useful life and replacement costs cannot be determined or that has an estimated useful life of more than 25 years.

718/719 – A SIRS is not required for buildings that are less than 3 stories in height, buildings with 1, 2 or 3 family dwellings with 3 or fewer habitable stories above ground or any portion or component of a building that is maintained by a party other than the association. (Note: This means windows and doors that are maintained by the Unit Owner are not included in the SIRS.)

718/719 – In the current law, a SIRS must be prepared by December 31, 2024 but for an association that is required to also conduct a milestone inspection on or before December 31, 2026 the association may complete the SIRS at the same time giving them 2 more years to conduct the SIRS.

718/719 – If a milestone inspection study or equivalent study was performed within the last 5 years, the inspection may be used in place of the visual inspection portion of the SIRS.

718/719 – Former law provided that directors and officers that fail to perform the SIRS have breached their fiduciary duty. New law provides that they have only breached their duty if they “willfully and knowingly” fail to perform the SIRS.

718/719 – The milestone inspection is now only required for portions of the building for which the association is responsible for maintaining under the governing documents. Thus, windows and doors maintained by the Unit Owner are excluded.

718/719 – The failure of the Board to conduct the milestone inspection study, the SIRS, fund SIRS reserves, and make the recommended repairs are not subject to pre-suit arbitration with the DBPR but are subject to pre-suit mediation under F.S. 720.311 before litigation.

CONDOMINIUMS – (F.S. Chapter 718).

1. Waiving Reserves – 718.112(2)(f)2.a. / SB 154A majority of the total voting interests are required to waive non-SIRS reserves. Formerly it only required a majority of those present and voting to waive reserves. SIRS reserves cannot be waived except in a multi-condominium association that has 25 or more condominiums and for which an alternative funding method has been approved by the Division of Condominiums.
2. Using Reserves for Alternate Purpose – 718.112(2)(f)3. / SB 154A majority of the total voting interests are required to use non-SIRS reserves for a different purpose than intended. Formerly it only required a majority of those present and voting to authorize a different use. SIRS reserves cannot be used for any other purpose.
3. Alternative Method of Funding Reserves – 718.103(1) / SB 154The Division of Condominiums may approve an alternative reserve funding method for multi- condominium associations that contain at least 25 condominiums.
4. Insurance Premium Increase Excluded from 115% Calculation. – 718.112(2)(e)2.b. / SB 154When determining if the annual budget adopted by the Board has increased more than 115%, which triggers the right of unit owners to override the Board’s budget and adopt their own, the increase in insurance premiums is excluded from the calculation.
5. Post Turnover Maintenance Identified in the Developer’s Turnover Inspection Report – 718.113(1) / SB 154.After turnover of control from the developer, the association must perform any required maintenance identified in the developer’s turnover inspection report until the association obtains an alternate report from an architect, engineer or reserve specialist.
6. Milestone Inspection Report Not Required from Developer at Turnover – 718.301 (4) (p) / SB 154Former law required developer to perform a milestone inspection at turnover. This is no longer required. Developer must still provide the turnover inspection reserve study.
7. Developer Disclosures Prior to Sale – 718.503(1)(b)18-20 / SB 154A developer must provide to a prospective buyer a summary of the milestone inspection report if one was required to be prepared, the SIRS if one is required, a copy of the turnover reserve study, and the buyer has 15 business days from receipt to cancel the sale.
8. Non-Developer Disclosures Prior to Sale – 718.503(2)(a)(7) / SB 154.A purchaser of a Unit from an Owner is entitled to a copy of the turnover inspection report prepared by the developer if the report was prepared prior to July 1, 2023 and a copy of the milestone inspection report and the SIRS. The purchaser has 3 business days to cancel the sale based on the reports.
9. Flags – F.S.718.113 (4) / HB 437.

Patriot Day has been added to the list of flags that a person has a right to display.

COOPERATIVES (F.S. Chapter 719).

1. Waiving Reserves – 719.106(1)(j)2. / SB 154A majority of the total voting interests are required to waive non-SIRS reserves. Formerly it only required a majority of those present and voting to waive reserves. SIRS reserves cannot be waived.
2. Using Reserves for Alternate Purpose – 719.106(1)(j)3. / SB 154A majority of the total voting interests are required to use non-SIRS reserves for a different purpose than intended. Formerly it only required a majority of those present and voting to authorize a different use. SIRS reserves cannot be used for any other purpose.
3. Insurance Premium Increase Excluded from 115% Calculation. – 719.106(1)(e)4 / SB 154When determining if the annual budget adopted by the Board has increased more than 115%, which triggers the right of unit owners to override the Board’s budget and adopt their own the increase in insurance premiums is excluded from the calculation.
4. Milestone Inspection Report Not Required from Developer at Turnover – 719.301(4)(p) / SB 154Former law required developer to perform a milestone inspection at turnover. This is no longer required. Developer must still provide the turnover inspection reserve study.
5. Developer Disclosures Prior to Sale – 719.503(1)(b)18-20 / SB 154A developer must provide to a prospective buyer a summary of the milestone inspection report if one was required to be prepared, the SIRS if one is required, a copy of the turnover reserve study, and the buyer has 15 business days from receipt to cancel the sale.
6. Non-Developer Disclosures Prior to Sale – 719.503(2)(d) / SB 154.

A purchaser of a Unit from an Owner is entitled to a copy of the turnover inspection report prepared by the developer if the report was prepared prior to July 1, 2023 and a copy of the milestone inspection report and SIRS. The purchaser has 3 business days to cancel the sale based on the reports.

HOMEOWNER ASSOCIATIONS (F.S. Chapter 720).

1. Board Meeting Notice Agendas – F.S.720.303(2)(c)1 / HB 919.Notices of all Board meetings must specifically identify agenda items for the meeting. This aligns Chapter 720 with Chapter 718. Formerly the notice did not require an agenda. This law is effective on October 1, 2023.
2. Official Record Addresses – F.S.720.303(4)(g) / HB 919.A member’s designated mailing address is the property address unless the member in writing requests a different address be used. A member’s e-mail address is the e-mail provided bythe member when consenting to receive electronic notice until they request in writing that a different e-mail address be used. This law is effective on October 1, 2023.
3. Deposits – F.S.720.303(8)(d) / HB 919.If an association collects deposits from a member for any reason, including to pay for expenses that may be incurred as a result of construction on the member’s parcel, such funds must be maintained separately and may not be commingled with any other association funds. Upon completion of the project for which the deposit was collected, the member may request an accounting of the deposit and the association must provide it with 7 days of receipt of the request. All unused funds must be paid to the member within 30 days of completion of the project. This law is effective on October 1, 2023.
4. Kickbacks and Conflicts of Interest – F.S.720.3033(3) / HB 919.An officer, director or manager who knowingly solicits or accepts any thing or service of value or kickback for which consideration has not been provided for his or her own benefit or that of his or her immediate family from any person providing or proposing to provide goods or services to the association is subject to monetary damages under F.S. 617.0834. This law is effective on October 1, 2023.
5. Removal from Office for Certain Acts – F.S.720.3033(4)(a)1 – 4 / HB 919.Any director or officer charged with 1. forgery, 2. Theft or embezzlement, 3. destruction of official records or refusal to allow inspection or copying of official records within 10 business days in furtherance of crime, or 4. Obstruction of justice as provided in F.S. 843 must be removed from office. If such charges are pending against any officer or director such person cannot be appointed or elected to any office of any other association and may not have access to the official records of any association, except pursuant to a court order. This law is effective on October 1, 2023.
6. Developer Appointed Officers and Directors – F.S.720.3033(6)(a) / HB 919.Directors and officers who are appointed by the developer must disclose to the association their relationship to the developer each calendar year in which they serve. They must also disclose any other activity that reasonably may be construed to be a conflict of interest at least 14 days before voting on an issue or entering into a contract that is the subject of the conflict of interest. A rebuttable presumption of a conflict occurs if any of the following acts occur without prior disclosure to the association: (1) A director, officer or relative of same enters into a contract for goods or services with the association or (2) A director, officer or relative of same holds an interest in an entity that conducts business with the association or proposes to do so. This law is effective on October 1, 2023.
7. Fines and Suspensions – F.S.720.305(2)(b) and (d) / HB 919.The “opportunity for” a hearing language has been removed making int clear that after the Board imposes the fine or suspension a hearing must be held whether the violator requests it or not. The notice of the fining or suspension committee hearing must include a description of the violation, the specific action required to cure the violation if applicable, and the date and location of the hearing. (Question: What about the time of the hearing?). The parcel owner has the right to attend the hearing by telephone or other electronic means. (Question: What if the fine is against the tenant?). After the hearing a written notice must be sent notifying the person of the committee’s findings and the amount of the fine or length of the suspension and how the parcel owner or occupant may cure the violation. This law is effective on October 1, 2023.
8. Fraudulent Voting Activities – F.S.720.3065 / HB 919.The following acts relating to association elections constitute a misdemeanor of the first degree: 1. Willfully or falsely swearing an oath or procuring another person to do so, 2. Perpetrating or attempting to perpetrate or aiding in committing a fraud in connection with casting a vote or a vote that has been cast, 3. Preventing a member from voting or attempting to change a ballot, ballot envelope, vote or voting certificate, 4. Menacing, threatening or bribing or other corruption to attempt to directly or indirectly influence, deceive or deter a member when the member is voting, 5. Giving or promising directly or indirectly anything of value to another member with the intent to buy the vote. (Note: This does not apply to any food served at an election rally or meeting or to any item of nominal value which is used as an election advertisement.), and 6. Using or threatening to use directly or indirectly force, violence, or intimidation or coercion to induce or compel a member to vote or refrain from voting in an election or other ballot measure. This law is effective on October 1, 2023.
9. Flags – F.S.720.304 (2)(a) / HB 437.The official flag of the State of Florida and a first responder flag have been added to the list of allowed flags. A first responder is law enforcement, fire fighters, paramedics, correctional officers, 911 public safety operators, registered nurses, search and rescue workers and federal law enforcement officers.
10. Flags – F.S.720.3075(3) / HB 437.The number of allowed flags has been increased to 2.
11. Storage of Items – F.S.720.3045 / HB 437.

Regardless of any covenants, restrictions, bylaws, rules or requirements of an association and unless prohibited by general law or ordinance, an association may not restrict a parcel owner or tenants from installing, displaying or storing any items on a parcel which are not visible from the parcel’s frontage or an adjacent parcel including but not limited to artificial turf, boats, flags or recreational vehicles.

TIMESHARES (F.S. Chapter 721).

No Changes.

MOBILE HOME PARKS (F.S. Chapter 723).

No Changes.

NOT  FOR  PROFIT  CORPORATIONS  (F.S.  Chapter  617)  (Applicable  to condominium, homeowner and cooperative associations)

No Changes

MISCELLANEOUS.

1. Statute of Limitations and Statute of Repose – 95.11(3)(c) / SB 360.On April 13, 2023, Florida’s Governor signed Senate Bill No. 360 (the Act), an act that affords greater protection from suits to members of Florida’s construction industry. The act amends Section 95.11, Florida Statutes, shortening the time that lawsuits based upon design, planning, or construction involving real property must be commenced, and altering the date that the statute of limitations period begins to run. Additionally, the act amends Section 553.84, Florida Statutes, imposing a materiality threshold for private causes of action based upon violations of Florida’s Building Code. Lawsuits must be commenced within time limits established by law. Statutes of limitation establish periods that usually start from the date a claim “accrues,” such as the occurrence of the last event creating the cause of action, or when the injured party should have discovered a claim. Unlike statutes of limitations, statutes of repose, which are usually longer, typically run from the date of a definitive act without consideration of when the cause of action accrued. The act alters Section 95.11 to revise the start of the four-year statute of limitations, changing its potential “trigger” dates, and causing the period to start from whichever date occurs earliest, rather than the latest. The act removes two potential trigger dates—the date of the owner taking possession of the improvement, and the date of completion or termination of a contract between certain design professionals and their employers. It also adds two new dates—the date of the issuance of a temporary certificate of occupancy, and the issuance of a certificate of completion. Because the statute of limitations will now start from the earliest of the trigger dates, the period to commence construction defect lawsuits is effectively shortened. Similarly, the act shortens Florida’s 10-year statute of repose to 7 years, changing the start of the period by altering its potential trigger dates, and causing the period to start from the earliest date, rather than the latest. The act removes two potential trigger dates—the date of the owner’s actual possession of the improvement and the date of completion or termination of a contract between certain design professionals and their employers. Likewise, the Act adds two new trigger dates—issuance of the temporary certificate of occupancy, and issuance of the certificate of completion.The new law took effect on April 13, 2023 and the amendments to Florida’s statute of limitations and statute of repose apply to any action commenced on or after the effective date, regardless of when the cause of action accrued. However, the act provides a limited exception—any suit that would not have been barred under the previous repose and limitations periods may be commenced until July 1, 2024. Those exceptions that are not commenced by July 1, 2024, will be time-barred.If your association has construction defect issues it is critical that you immediately discuss the affect of this law has on filing lawsuits against the developer or contractor with your association legal counsel.
2. Violations of the Florida Building Code – 553.84 / SB 360.Section 553.84 provides a private right of action to persons who are damaged as a result of violations of the Florida Building Codes Act and Florida Building Code. The act amends this section to limit recovery for “material” violations only. The act also amends the section to include a definition of “material violation,” meaning “a Florida Building Code violation that exists within a completed building, structure, or facility which may reasonably result, or has resulted, in physical harm to a person or significant damage to the performance of a building or its systems.” This law became effective on April 13, 2023.
3. Golf Carts – F.S. 316.212 / HB 949A golf cart may not be operated on public roads by a person under age 18 unless he or she possesses a valid driver’s license or learner’s permit or by a person that is at least 18 years old and possesses a valid form of government-issued photographic identification. Former law allowed persons 14 years or older to operate a golf cart without a driver’s license. This law is effective on October 1, 2023.
4. Citizens Insurance – F.S. 627.351(6)(aa)3 / SB 154.Policyholders are not required to purchase flood insurance as a condition for maintaining policies that do not provide for wind coverage and policies that provide coverage under a condominium unit owners form.
5. Radio Signal Strength in Buildings – 633.202(18)(b) / HB 1575Buildings more than 75 feet in height must meet the minimum radio signal strength requirements as provided in the Florida Fire Prevention Code. The local authority having jurisdiction may require the installation of two-way radio communication enhancementsystems in order to comply. The signal must be tested every 3 years or 5 years depending on certain factors. Buildings of less than 12,000 total gross square feet with no underground areas and wood frame buildings are exempt.
6. Insurance Premium Reduction for Wind Up Lift Mitigation / Citizens / Flood Insurance – 627.062, 627.0629 and 627.351 / HB 799Wind Up LiftThis bill requires property insurance companies to provide premium reductions for homes with wind uplift prevention. Wind uplift prevention is a critical construction technique used to secure a roof during high-winds. The bill adds wind uplift prevention to the list of fixtures or construction techniques for which an actuarially reasonable discount, credit, or other rate differential, or appropriate reduction in deductibles, must be included in a rate filling for residential property insurance.Citizens InsuranceThe bill provides that the “glidepath” normally imposed on Citizens year-to-year rate growth does not apply to policies where coverage for the risk insured by Citizens was last provided by an insurance company determined by Florida Office of Insurance Regulation (FOIR) to be unsound or placed into receivership due to impairment or insolvency.Flood Coverage Required by Residential and Commercial Property Insurance PoliciesIf a residential or commercial property insurer requires that an insured or applicant have coverage for the peril of flood when the insurer issues a policy covering the peril of wind, unless the insurer verifies that the insured or applicant has coverage for the peril of flood at the time the policy was issued or renewed, the insurer may not deny a claim for wind solely because the insured does not have coverage for the peril of flood, unless the flood coverage that was verified at the time of application or renewal, is not in force at the time of the loss.A master flood policy that is issued to someone other than the insured or applicant and that includes the insured or applicant as an intended or third-party beneficiary under the master flood policy is acceptable proof of coverage for the peril of flood.
7. Insurer Accountability – F.S. 624.115, 624.307, 624.315, 624.316, 624.3161 / SB 7052The bill reduces the time for providing documents to the Florida Office of Insurance Regulation regarding a complaint from 20 days after the receipt of written request to 14 days and increases the fines for non-compliance.This bill requires new quarterly report of enforcement activity by the Florida Office of Insurance Regulation. The report must detail the insurer or other licensee or registrant against whom action was taken; whether the office found any violation of law or rule by such party, and, if so, details of such violation; and the resolution of such action, including any penalties imposed by the Florida Office of Insurance Regulation.The new legislation expands current law prohibiting insurers from cancelling a residential property insurance policy until 90 days after repairs are completed. Under this bill, for all other types of losses, authorized insurance companies are prohibited from cancelling a property insurance policy during any pending claim until the earlier of when the property has been repaired or 1 year after the insurance company issues the final claim payment.SB 7052 requires authorized insurers to given written notice to the Florida Office of Insurance Regulation before any temporary suspension of writing new residential property insurance policies at least 20 business days before the effective date of the suspension or 5 business days before notifying its agents, whichever is earlier.The bill clarifies that if a roof deductible is applied, the prohibition on applying any other deductible under the policy encompasses any other loss to the property caused by the same covered peril.This legislation requires Citizens Property Insurance Corporation to cover homes insured by insolvent insurance companies that have not been repaired.SB 7052 requires every company to “create and use a claims-handling manual”. The manual must cover a list of subjects outlined in the bill, be furnished to the Florida Office of Insurance Regulation (FOIR), and must be attested on or before August 1, 2023, and annually thereafter beginning on May 1 of each calendar year.The new bill will require property insurance mitigation discounts be updated at least every five years and requires insurers to provide consumer-friendly information on their website describing hurricane mitigation discounts available to policyholders
8. 2022 Special Legislative Session – F.S. 627 – 627 / SB 2AThese laws are currently in effect.
   • Attorney Fees: Ends one-way attorney fees in residential and commercial property insurance policy lawsuits.
   • Offers of Judgment: Reinstates the civil offer of judgment statute and makes attorney fees available for the prevailing party, while also allowing for joint offers of judgment.
   • AOBS: Prohibits Assignment of Benefits (AOB) contracts of residential and commercial property insurance policies issued on or after January 1, 2023.
   • Bad Faith: Prohibits the filing of a bad faith lawsuit until a final judgement is issued against the insurance company in the original claim dispute.
   • Citizens Property Insurance Reforms: Makes many essential improvements to current laws governing the state-backed Citizens Property Insurance Corporation, including:
     • Changing the eligibility to remain a Citizens policyholder, by requiring that private insurance company coverage has to be 20% more expensive (up from 15%, to match current rules on new policies) and likewise for commercial residential policies;
     • Ending capped rates (the so-called “glide-path”) and requiring its rates be actuarially-sound and be “non-competitive” with admitted companies’ market rates;
     • Defining and allowing higher rates for second (non-homesteaded) homes; and
     • Requiring personal lines policyholders purchase flood insurance to become or remain a Citizens policyholder.
   • Reinsurance: Establishes a second optional hurricane reinsurance fund (The Florida Optional Reinsurance Assistance Program) for carriers, offering rates of 50% to 65% of the cost of on-line rates, while maintaining the Reinsurance to Assist Policyholders (RAP) program created in the May special session.
   • Arbitration: Allows carriers to include mandatory binding arbitration in their policies.
   • Claims Handling: Reduces from 90 days to 60 days the time insurance companies have to pay or deny a claim, unless extended by regulators; and reduce from 14 days to 7 days the time a carrier has to review and acknowledge a claim communication and begin an investigation, along with other time requirement changes.
   • Claim Filing: Further tightens deadlines for policyholders to report a claim from 2 years to 1 year for a new or reopened claim, and from 3 years to 18 months for a supplemental claim. (Note: This does not apply to the Hurricanes that occurred in 2022, the filing period is still 2 years from the date of the Hurricanes.)
   • Greater OIR Regulation: Allows the Florida Office of Insurance Regulation (OIR) to withdraw approval of policies with an appraisal clause for companies that routinely invoke it; allows OIR to do market conduct exams after a hurricane on those companies in the top 20% of claims filed or DFS complaints and to include an examination of their MGAs; and requires companies begin monthly reporting of the numbers of claims opened, closed, pending, and those seeking alternative dispute resolution and of which type.
9. December 2022 Special Legislative Session – SB 2B
   • Reinsurance. The state of Florida provided for an optional hurricane reinsurance that insurance companies can purchase at reasonable near market rates with the goal being to stave off additional premium increases. These laws became effective on March 1, 2023.
   • Insurance Claim and Response Deadlines. The claim filing deadline is reduced from two years to one year for a newly reopened claim and from three years to 18 months for a supplemental claim. The time is reduced for insurance companies to pay or deny claims from 90 to 60 days. The time is reduced for insurance companies to review and acknowledge a claim communication from 14 days to seven days. The time is reduced for an insurance company to begin investigation of a claim from 14 days to seven days. The time for an insurance company to conduct a physical inspection is reduced from 45 days to 30 days and this applies to hurricane claims as well. Insurance companies may use electronic methods to investigate damage and allow policyholders to participate in the use of such methods. Insurance companies are required to send any adjuster report estimating the damage to the policy holder within seven days after it is created. All undisputed amounts of benefits must be paid out to the policyholder within 60 days rather than the previously existing 90 days.
   • Attorneys’ Fee Awards. One way attorneys’ fee provisions related to property insurance claims have been eliminated meaning neither party is awarded prevailing party attorneys’ fees and each party is responsible for payment of their own attorneys’ fees but however this is mitigated through the offer of judgment whereby if an offer is made and at trial the other side does not exceed at least 125% of such offer, then that could trigger the prevailing party to still have to pay the other sides attorneys’ fees. Assignment of Benefits.
   • Assignment of Benefits. No post loss insurance benefits under any residential property insurance policy or commercial property insurance policy issued on or after January 1, 2023, can be assigned to a third party. Therefore, assignment of benefits is no longer an option.
   • Bad Faith. Before a policyholder can sue a property insurance company for bad faith- based on how the insurance company settled the claim, the court of competent jurisdiction must first find that a breach of contract occurred. In addition, receiving an appraisal award higher than the insurance companies’ appraisers’ final estimate may be evidence of bad faith, but on its own does not give rise to a bad faith claim.
   • Flood Insurance. Citizens residential policyholders can be required to obtain flood insurance as a condition of having coverage from citizens.
   • Mandatory Arbitration. Insurance companies can now offer a policy with mandatory arbitration to settle disputes rather than litigation so long as the insurance company also offers a policy without a mandatory binding arbitration clause. If such binding arbitration is required, then a premium discount is required for such policy.
10. Construction Liens – F.S. 713 / HB 331House Bill 331 effectuates significant changes to the construction lien process which becomes effective October 1, 2023.
    • Modifies the statutorily provided notice of commencement form to reflect that the person signing the notice may use an online notary.
    • Authorizes a building permit applicant to submit to the clerk’s office official records identifying information for the recorded notice of commencement, including the instrument number or the number and page of the book, to the issuing authority in lieu of a certified copy of the notice or notarized statement of filing.
    • Provides that the building permit issuing authority is not liable in any civil action for failing to verify that the building permit applicant submitted one of the acceptable forms of proof that the applicant filed a notice of commencement. Increases the contract amount which excuses a building permit applicant from filing a copy of the notice of commencement or an authorized alternative with the issuing authority, from$2,500 to $7,500.
    • The bill amends the definition of “contractor” to include any licensed general or building contractor who provides construction or program management services. This guarantees to such licensed general and building contractors the ability to claim construction liens if they are not paid for their work.
    • Specifies that all documents allowed or required under the construction lien law must be served as provided in § 713.18, Fla. Stat., relating to manner of serving documents.
    • Clarifies that “actual delivery” of a notice means “hand delivery.”
    • Provides that service by mail must be made to the person to be served.
    • Clarifies that service of a notice sent through the mail is effective upon mailing or shipping.
    • Specifies that service to a partnership, corporation, or limited liability company may be made on an employee or agent authorized by the business to receive service. Further, the bill modifies the requirement that, for service to be effective on the date of mailing, the person serving a notice to contractor where a payment bond applies must maintain electronic tracking records generated by the USPS, deleting the requirement that the records be electronic and specifying that they may be either generated or approved by the USPS. The bill also deletes the requirements that such tracking records contain the name and address of the person served.
    • The bill specifies that after the property owner files a notice of contest of lien with the clerk’s office and the clerk’s office serves a copy of the notice on the lienor and recordsthe notice with a certificate of service, the clerk’s office must serve a copy of the recorded notice on the lienor and the owner or the owner’s attorney.
    • The bill provides that the methods specified for discharging a lien may also be used to release a lien, in whole or in part. Attorneys’ Fees and Costs. The bill provides that a prevailing party in an action to enforce a lien transferred to a security may recover his or her reasonable attorneys’ fees in an amount to be determined by the court. The bill also clarifies that, where a prevailing party is entitled to recover his or her reasonable attorneys’ fees in an arbitration action to enforce a claim against a payment bond, the amount of the attorneys’ fees to be awarded may be determined by the arbitrator.
    • The bill provides that, in computing any time period relating to the construction lien law, if the last day of the time period is a Saturday, Sunday, legal holiday, or any day observed as a holiday by the clerk’s office or designated as such by the chief judge of the circuit, the time period is extended to the end of the next business day. However, the bill also provides that, if the clerk’s office is closed in response to an emergency for one or more days, so that a person may not present a document for recording or an action for filing in person with the clerk’s staff, the time period for recording a document or filing an action with the clerk’s office relating to the construction lien law is tolled. When the clerk’s office reopens, the time period is extended by the number of days the clerk’s office was closed.
    • The bill specifies that after the property owner files a notice of contest of lien with the clerk’s office and the clerk’s office serves a copy of the notice on the lienor and records the notice with a certificate of service, the clerk’s office must serve a copy of the recorded notice on the lienor and the owner or the owner’s attorney.
    • The bill requires that a notice of termination be served before recording on each lienor in privity with the owner and on each person who timely served a notice to owner before the recording of the notice of termination. Under the bill, if it is thus served, a notice of termination terminates the notice of commencement 30 days after it is recorded. However, the bill also requires an owner to serve a copy of the notice of termination on any lienor who began work under a notice of commencement before its termination, lacks a direct contract with the owner, and timely serves a notice to owner after the notice of termination is recorded.
    • Specifies that the notice of termination is effective as to such lienors 30 days after service.
    • Specifies that a notice of termination must include a statement that the owner will serve a copy of the notice on all lienors who time serve a notice to owner after the notice of termination’s recording. Deletes a provision specifying that an owner may only record a notice of termination after construction completion or when construction ceases before completion and all lienors have been paid, specifying instead that such notice may be recorded after all lienors have been paid.
      • Clarifies that the notice of termination must include the official records reference numbers and recording date affixed to the recorded notice of commencement by the recording office.
11. Foreclosure and Assignment of Rents – F.S. 702 / SB 286

• Expands the scope of existing law on the finality of a clerk’s deed following foreclosure sale to apply to any form of lien. Currently, only foreclosure of a mortgage is governed by the statute on finality of a clerk’s deed.
• Requires the foreclosure court to award attorney fees to a senior lienholder when a junior lienholder wrongfully tries to foreclose a senior lien. The bill also reaffirms the common law rule that a superior lien may not be foreclosed by a junior lienholder.
• Expands application of an assignment of rents to apply to a successor landowner and adds that regular association fees (HOA, condo or co-op) may be paid from the rent collected. An assignment of rents (if authorized by the mortgage terms) is a temporary relief allowing a foreclosing lienholder to collect rents from the property during the pendency of the foreclosure case and use those rents for upkeep of the property.
• Makes a technical change to the statute authorizing electronic signatures by adding a clarification of the term “witness.” When used as a noun, “witness” means an individual whose electronic signature is affixed to an electronic record to attest or subscribe to a principal’s signature on such record. This definition of “witness” applies retroactively to January 1, 2020, which is the effective date for most of the statutory provisions for online notarization.
• Expands application of an “order to show cause” procedure in foreclosure law to allow use of the procedure when a successor landowner is being foreclosed. The current order to show cause procedure compels the defendant to either resume making regular payments or vacate the premises but is only applicable when the mortgagor still holds title to the property.

DISCLAIMER: The foregoing is a summary of the statutory changes and should not be relied on as legal advice or a complete explanation of the changes. Every situation is different, and you should seek qualified legal advice before making a decision.