(A)   Purpose. The objective of this section is to protect the purchasers of new residences in this city by requiring the providing of insurance or third-party warranties for the correction of major construction defects or proof that same shall be available at the time the developer closes on the sale of the property with the original purchaser as a condition precedent to the future issuance of a certificate of occupancy for any dwelling in this city, and a bond to insure completion of a residential home.
   (B)   Requirement of affidavit.
      (1)   Each person or entity, as a condition to the issuance of a building permit, shall provide the city with an affidavit, signed by the person or a principal of the entity requesting the building permit, in a form prescribed by the City Attorney and available at the Building Department.
   (C)   Requirements of insurance, warranty, or other security.
      (1)   To assure the quality of construction in this city and to assure to residents financial resources which may be necessary for the correction of major structural construction defects, the Chief Building Official shall not issue a certificate of occupancy for any dwelling unit until the developer, builder, or general contractor shall first furnish proof to such official of the issuance or guaranteed availability of same at the time the developer closes on the sale of the property with the original purchaser of an insurance policy or insured five-year or greater warranty provided by any VA/FHA approved warranty company and warranty certificate by a company authorized by the Florida Department of Insurance to do business in the state or authorized under applicable federal law, naming as beneficiary the purchaser and his successors and assigns of that dwelling unit and obligating the insurer in a minimum amount equal to the original purchase price of the home to make and pay for all corrections which may be necessary with respect to any major structural defects subject to warranty time limitations.
      (2)   Insurance policies or warranty certificates issued for condominium units shall be in a form consistent with the Florida Condominium Warranty Statute, to wit, F.S. § 7l8.203.
      (3)   The developer, builder, or general contractor may in lieu of any insurance policy deposit with the city a good and sufficient bond of the developer, builder, or general contractor approved as to form and substance, by the City Attorney, or a cash deposit, or an irrevocable bank letter of credit, or other collateral approved by the City Commission which shall be held as security for the payment of corrections of construction defects hereinafter defined. Promissory notes shall not be accepted under this section. The bond or letter of credit shall be in an amount equal to $5,000 per individual dwelling unit with a maximum of $100,000 aggregate for all dwelling units constructed by the same developer with any one project. The bond or letter of credit shall be for a term of five years from the date of the certificate of occupancy or shall be issued annually, but provide for an automatic renewal.
   (D)   The regulations contained herein shall not apply to a single-family home constructed by an owner/builder for his own residence. In order to qualify as an owner/builder, an individual must sign and provide the city with an affidavit in recordable form stating that he shall live in the residence when completed and that he intends to occupy the residence for at least two years. If the owner/ builder moves from the residence within two years of the issuance of a certificate of occupancy, he shall be required to provide a bond as required in this section.
   (E)   Identification and determination of major structured defects.
      (1)   MAJOR STRUCTURAL DEFECT shall mean any noncompliance with the Florida Building Code, as to any part of the original construction of the building which results in actual physical damage to the following designated load- bearing portions of the residence caused by failure to such load-bearing portions which affect their load- bearing functions to the extent that the residence becomes unsafe, unsanitary, or otherwise unlivable:
            (a)   Foundation systems and footings;
            (b)   Beams;
            (c)   Girders;
            (d)   Lintels;
            (e)   Columns;
            (f)   Walls and partitions;
            (g)   Floor systems;
            (h)   Roof framing system;
            (i)   Mechanical;
            (j)   Air conditioning systems;
            (k)   Plumbing; or
            (l)   Electrical systems.
      (2)   The Chief Building Official shall determine whether there have been any major structural defects with respect to the building code or other applicable laws which were existing at the time of the issuance of the certificate of occupancy.
   (F)   Penalty. Failure to comply with this section shall prohibit the granting of a building permit, or if a building permit is in effect at the time of the passage of this section, no certificate of occupancy shall be issued.
(Ord. 87-6, passed 5-20-87; Am. Ord. 1715, passed 5-2-12)