Building Safety Act Task Force February 8, 2023
Overview
Background & Impetus for the Act Who is Impacted by the Act? Key Features of the Act: 1. Milestone Inspections − Phase I − Phase II 2. Structural Integrity Reserve Study 3. Non-Waiver of Reserves
FAQs Published by DBPR
Summary
Task Force Actions Completed
Resources
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Background & Impetus for the Act
▪ The Building Safety Act was passed in response to the
partial collapse of Champlain Towers South in Surfside, FL on 6/24/2021 which took 98 lives
▪ The 12-story condo, built in 1981, suffered from long- term structural degradation ▪ A $15 million program of deferred maintenance had been approved but not commenced; only $700,000 had been collected from owners for this purpose ▪ Survivors and victims’ families settled lawsuits for $1.1 billion a year after the collapse ▪ The legislation was passed unanimously by both the House and Senate in a Special Session and signed into law by Governor DeSantis on 5/26/2022 ▪ The Act represents the most consequential legislation affecting Florida condominiums in decades ▪ The Seven Lakes Board established the Building Safety Act Task Force to guide compliance with the Act
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Who is impacted by the Act?
Most requirements apply to buildings of 3 stories or more 1. Affects 15 of our 29 condominiums: ▪ 7 x 3-story buildings (Condos 2, 3, 4, 5, 7, 24, 46) ▪ 5 x 4-story buildings (Condos 22, 23, 25, 6, 8) ▪ 2 x 5-story buildings (Condos 20, 21A) ▪ 1 x 6-story building (Condo 21B) 2. These buildings represent 858 units, or 78% of all units at Seven Lakes Some requirements apply to all Seven Lakes condos, regardless of the height of the building
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Milestone Inspections: Overview
A visual inspection of structural components of the building by a FL licensed engineer or architect Attests to the life safety and adequacy of structural components and the general structural condition of the building Identifies any necessary maintenance, repair or replacement of structural components Required for buildings 30 years and older – first must be performed before 12/31/2024, then every 10 years thereafter Currently applies to buildings 3 stories or more May consist of 2 inspections: Phase 1 and Phase 2
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Milestone Inspection: Phase 1 A visual inspection by a FL licensed engineer or architect of a building, “including load -bearing walls and the primary structural members and primary structural systems” as defined in FL Statute 627.706; may require access inside some units Provides a qualitative assessment of the structural condition of the building Engineer/Architect submits a sealed copy of the inspection report (summary of the material findings, including any remedial or preventive repair recommendations and description of items requiring further inspection) to the local building official and the condo association All unit owners must receive a copy of the report; report to be posted in conspicuous location and on association website Condo is responsible for all costs associated with the inspection If no signs of “substantial structural deterioration” are found, Phase 2 inspection is not required
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Milestone Inspections: Phase 2
Must be performed if any substantial structural deterioration is identified during Phase 1 inspection May involve destructive or nondestructive testing at the inspector’s direction May be as extensive or as limited as necessary to fully assess areas of structural distress in order to confirm that the building is structurally sound and safe for its intended use and to recommend a program for fully assessing and repairing distressed and damaged portions of the building Inspector must give preference to testing locations that are the least disruptive and most easily repairable while still being representative of the structure
Inspection report provided to local building official and condo association; copy to owners; posted in a conspicuous location and on website Condo is responsible for all costs associated with the inspection and any repairs
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Structural Integrity Reserve Study
A study of the reserve funds required for future major repairs and replacement based on a visual inspection of the common areas
Study must include 10 components, “at a minimum”: 1. Roof 2. Load bearing walls or other primary structural members 3. Floor 4. Foundation 5. Fireproofing & fire protection systems 6. Plumbing 7. Electrical systems 8. Waterproofing & exterior painting 9. Windows 10. Any other item with a deferred
Visual inspection must be performed by a FL licensed architect or engineer; reserve study may be performed by any person qualified to perform such study Estimates the remaining useful life and replacement cost or deferred maintenance expense; provides a recommended annual reserve amount to cover the estimated cost by the end of the useful life Currently applies to buildings 3 stories or more; initial study must be completed by 12/31/2024, then at least every 10 years thereafter May adjust reserve assessments annually to take into account any changes in the cost estimates or extension of the useful life of a reserve item caused by deferred maintenance
maintenance cost that exceeds $10,000 and failure to replace or maintain the item negatively affects the items above Each condo is responsible for all costs associated with the reserve study.
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Non-Waiver of Reserves
Some condo owners at Seven Lakes have previously voted to waive full funding of reserves and provide only partial funding Some Seven Lakes condos have not reserved realistic amounts for major repairs/replacements or accurately estimated the remaining useful of some components and are underfunded Effective December 31, 2024, owners can no longer waive full funding of reserves for structural integrity components (shown on previous slide)
“...Effective December 31, 2024, the members of a unit -owner controlled association may not determine to provide no reserves or less reserves than required by this subsection for items listed in paragraph (g)”
Also...
“...Effective December 31, 2024, members of a unit -owner controlled association may not vote to use reserve funds, or any interest accruing thereon, that are reserved for items listed in paragraph (g) for any purpose other than their intended purpose”
Because the Seven Lakes fiscal year is April 1-March 31, condos will need to fully fund reserves for at least part of the 2024-2025 budget year in order to comply with these deadlines
The 2023-2024 fiscal year is the last year condo owners may vote to approve partial funding of reserves
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FAQs Published by DBPR In late October 2022, the Florida Department of Business and Professional Regulation Division of Florida Condominiums, Timeshares and Mobile Homes published FAQs related to SB 4-D. The following responses to a couple of the questions help provide some clarification: 1. Whether 1 or 2 story condos will be permitted to waive reserves “The division does not consider this provision to base an association’s ability to waive reserves on the number of stories that an association’s buildings have.”
2. Whether pooling of reserves will still be permissible “Yes.”
3. Who is qualified to perform the Structural Integrity Reserve Study “...may be performed by any person qualified to perform such study, but the visual inspection portion must be performed by a licensed professional engineer or licensed architect .”
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Summary
Non-Waiver of Reserves (reserves must be fully funded)
Milestone Inspection – Phase 1
Milestone Inspection – Phase 2
Structural Integrity Reserve Study
Condos ≥ 3 Stories
YES (before 12/31/2024)
Only if required by Phase 1 Report
YES (by 12/31/2024)
YES (by 12/31/2024)
NO (but recommended by Seven Lakes)
Condos 1 & 2 Stories
YES (by 12/31/2024)
NO
NO
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Task Force Actions Completed
Administration submitted the required Building Reporting form to DBPR ahead of the 1/1/2023 deadline Staff interviewed multiple engineering firms to identify qualified professionals to engage for Milestone Inspections and Structural Integrity Reserve Studies 2023-24 budget meetings with condo reps included discussion of upcoming requirements of the Act and impacts on future reserve budgets Prepared this overview for posting on website
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Resources
SB 4-D: Building Safety Act
Florida Statutes Chapter 718
DBPR Jurisdictional SB 4-D Information (FAQs)
“Florida Condo & Co - Op Safety Bill Passes in a Special Session of the Legislature” (Article by Pavese Law Firm, 6/7/2022)
To stay informed, please refer to Task Force monthly updates on the Association website! The Seven Lakes Building Safety Act Task Force makes every effort to provide factual information on the current status of the Act. Please be aware that the Florida legislature may, at any time, amend or otherwise provide clarification for any part of the Act. Task Force actions and priorities are based on the law currently in effect as of the date of this document.
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