Florida statute reference · Chapter 719
Florida Cooperative Act
Chapter 719 of the Florida Statutes governs cooperative associations - communities where the association holds title and residents own shares with proprietary leases. Subject to SIRS requirements post-SB 4-D.
Statute citations reviewed by the Common Elements editorial team, which includes a Florida-licensed community association manager (LCAM) and insurance broker - Florida Licensed Community Association Manager, 2-20 & 6-20.
How a co-op differs from a condo or HOA
In a Florida cooperative, the association - not individual residents - holds title to the entire property. Residents own shares in the cooperative corporation and hold a proprietary lease on their unit. This ownership structure affects everything from how mortgages work to how assessments are collected. Co-ops are governed by Chapter 719, not Chapter 718 (condominiums) or Chapter 720 (HOAs).
F.S. § 719.104§ 719.104 - Powers and duties; liability
The structural backbone of every Florida cooperative association. Establishes the co-op association's corporate powers (contract, sue, employ, acquire property), the fiduciary duty owed by directors to shareholders (mirroring § 718.111 for condos), mandatory insurance requirements (property at full replacement cost, liability, fidelity bonding, D&O), shareholders' right to inspect official records within 10 business days, and tiered financial reporting based on annual revenues.
- Corporate powers and fiduciary duty (business judgment rule)
- Mandatory insurance: property (replacement cost), liability, fidelity, D&O
- Shareholders' official records access right: 10-business-day window
- Financial reporting tiers by revenue: report / compiled / reviewed / audited
- Directors not personally liable if acting in good faith within authority
F.S. § 719.106SIRS mandate added by SB 4-D (2022)§ 719.106 - Bylaws; operation of cooperative
The operational core of Chapter 719 - parallel in structure to § 718.112 for condominiums. Covers board meeting requirements (48 hours notice), annual meeting (14 days), budget adoption, reserves, and the SIRS mandate at § 719.106(1)(k). Co-ops of three or more habitable stories must commission a SIRS every ten years; the reserve waiver right no longer applies to SIRS-scope structural components.
- 48-hour board meeting notice
- 14-day annual meeting notice
- Budget adoption process
- SIRS mandate for co-ops (§ 719.106(1)(k))
- Mandatory non-waivable SIRS reserve funding
F.S. § 719.108§ 719.108 - Rents and assessments; liability; lien and priority; interest; collection
Governs assessment and rent obligations in a cooperative, lien priority, and collection procedures. Because the cooperative holds title to the entire property (not the residents), the lien and collection framework differs from Chapter 718 condominiums - the association can terminate a proprietary lease for non-payment, and the association's lien is structured differently from a condo lien.
- Assessment and rent obligations
- Lien priority for cooperative assessments
- Termination of proprietary lease for non-payment
- Collection procedures
- Co-op-specific foreclosure differences from condos
F.S. § 719.301§ 719.301 - Transfer of association control
Governs the transition from developer control to unit-owner control of the cooperative association. Establishes the percentage thresholds at which unit owners are entitled to elect a majority of the board, and the developer's obligations to deliver records, financial reports, and reserve accounts at turnover.
- Turnover triggers (percentage of units sold)
- Developer obligations at transition
- Records and reserve account delivery
- Initial unit-owner board election
F.S. § 719.302§ 719.302 - Agreements entered into by the association
Sets the rules around contracts the cooperative association enters into, particularly during the developer-controlled period and at transition. Establishes the unit owners' right to cancel certain agreements after turnover (typically management, recreational, and long-term service contracts).
- Cancellation rights after developer turnover
- Restrictions on long-term developer agreements
- Sweetheart contract protections for unit owners
F.S. § 719.401§ 719.401 - Resale of cooperative units
Cooperative resale rules - different in important ways from condo resales because the seller is transferring shares plus a proprietary lease, not real property. Governs association approval rights, transfer fees, and the disclosure package required for cooperative unit sales.
- Association approval rights for transfers
- Transfer fees and restrictions
- Share certificate and proprietary lease transfer
- Required disclosure package
SIRS applies to co-ops too
SB 4-D (2022) extended the Structural Integrity Reserve Study mandate to cooperative associations of three or more habitable stories under § 719.106(1)(k). The phase-in deadlines and reserve funding requirements mirror those for condominiums.
Chapter 719 FAQ
- What is a Florida cooperative under Chapter 719?
- A Florida cooperative (co-op) is a form of community association where the association, not the individual residents, holds title to the entire property. Residents own shares in the cooperative corporation and hold a proprietary lease on their unit. This differs from condominiums (Chapter 718), where unit owners hold title to their specific unit plus an undivided interest in the common elements. The share-based ownership structure affects how mortgages, sales, and assessments work.
- Are Florida co-ops subject to the SIRS requirement?
- Yes. SB 4-D (2022) extended the Structural Integrity Reserve Study (SIRS) mandate to cooperative associations of three or more habitable stories, codified at F.S. § 719.106(1)(k). The SIRS must be performed every ten years by a licensed reserve specialist. As with condominiums under § 718.112, the membership waiver right no longer applies to reserves funded through a SIRS for structural components.
- How does the co-op assessment collection process differ from a condo?
- The key difference is that in a cooperative, the association holds title to the entire property. A delinquent co-op member does not face foreclosure of their unit in the same way a condo unit owner does - instead, the association can seek termination of the proprietary lease for non-payment under § 719.108. This is a significant practical difference from Chapter 718 condominiums, where the association files a lien and can foreclose on the unit interest.
- Is Chapter 720 applicable to cooperatives?
- No. Chapter 720 applies only to homeowners associations where members hold fee-simple title to individual parcels or lots. Cooperatives, where the association holds title and members hold shares, are governed exclusively by Chapter 719. Condominiums are governed by Chapter 718. Each type of community association has its own dedicated statute.
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