Condo associations in Florida will have to submit their spending plans for repairs by the end of the year, as new regulations aiming to make old buildings in the Sunshine State safer come into place.
Under Senate Bill 4D, approved by the Florida legislature in May 2022, condo associations in the state with properties three stories or higher are required to have completed a so-called structural integrity reserve study (SIRS) by December 31, with limited exceptions.
The study is designed to ensure that associations are reserving enough funds to conduct necessary repairs and maintenance on their properties in the long term.
Why It Matters
The passing of SB 4D followed the tragic collapse of the Champlain Towers South condo in Surfside, Florida, in June 2021, which killed 98 people.
A federal team investigating the causes of the incident found that several design and construction features of the condo didn't comply with building codes when the property was built in 1981. Additionally, the deterioration of the building over the years had not been addressed. Residents received a report one day before the collapse saying there were insufficient funds to fix the property, according to The Wall Street Journal.
The new regulations contained in SB 4D require aging condos to undergo regular inspections, and force owners and associations to fund the necessary maintenance and repair works. While necessary, the new rules have spread panic and dismay among condo owners, who fear they won't be able to shoulder the enormous costs of current and future maintenance work necessary to ensure the safety of their buildings.
Under the new law, condo owners are expected to contribute every month to their associations' reserves and fund repairs and upgrades in the long term.
What To Know
All condos three stories and higher in Florida will have to meet the December 31 deadline and complete their SIRS to remain compliant with the new law.
The study, which is based on the visual inspection of the common areas of the condo, describes a recommended annual reserve amount to meet the expected costs for future and major repairs of the building, or the replacement of any item which needs changing. Associations must then adjust their budget to the report, which they must file to the Florida Department of Business and Professional Regulations within 45 days.
Within the same time frame, they have to share the study with every owner, as well as the revised budget.
The funds described in the budget, which include monthly contributions from owners, cannot be reduced or used for anything other than the items described in the SIRS. Waivers are strictly forbidden.
Not every condo who must submit a SIRS will do so by December 31: under Florida's SB 154, signed into law in June 2023, associations required to complete a milestone inspection on or before December 31, 2026 can complete the SIRS at the same time as the inspection. Residential condos three stories and higher have to conduct a new SIRS every ten years.
The impact of the new law has already been devastating the Florida condo market. The end-of-year deadline has pushed condo associations to impose special assessments and increase monthly fees for owners, leading many to try to sell their units. While listings surge, sales, on the other hand, are on the downturn.
What People Are Saying
Florida Governor Ron DeSantis said in September: "We want our condos to be safe in the state of Florida, but we also want to make sure any safety measures are implemented in ways that are reasonable and affordable to the residents. We don't want to see people forced out of a unit because they have a crushing assessment."
What's Next
Condo associations who have received their SIRS and have adopted a budget on or after December 31 must use the study to fund structural reserves. Those who are still waiting on the report, or are set to have the milestone inspection in 2026, as allowed by SB 4D, can waive payments one last time if they get the approval of a majority of all owners before December 31.
Are you the owner of an aging condo in Florida? We want to hear from you how you're approaching the looming deadline for SIRS. Contact g.carbonaro@newsweek.com.
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