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LEGISLATION

CONDOS

Layers of the Florida Condo Legislation THE NEW LAW IS MEANT TO PROTECT PEOPLE IN THEIR HIGH-STORY HOME FROM DISASTER THAT CAN OCCUR WHEN MAINTENANCE IS NOT PERFORMED

By Susan Reilly

he Champlain Towers South disaster in Surfside, Florida, in

2022 sought to prevent another col- lapse through formal regulation that mandates standards of inspections, preventative maintenance and repair, and how to fund paying for it all. Florida Senate Bill 4-D has two Parts. Part One is the “Milestone Inspection” architects or structural engineers perform on condos at least three stories high at either 25 or 30 years past initial certificate of occupancy for the structural integrity of the building (25 or 30 years is dependent on the proximity to a coastline). The legislation applies to all condos of this height, whether coastal or interior. The initial inspec- tion must be completed by Dec. 31, 2024, and repeated every 10 years. Part Two, titled “Structural Integrity Reserve Study” (SIRS), seeks to project the cost of future maintenance and repairs to all systems of the building to allow for proper funding from residents. With this legislation, associations’ reserve accounts are no longer able to be underfunded or waived.

Here’s a potential scenario: An older association’s HVAC is nearing the end of its useful life, but it’s still functioning satisfactorily. Beginning in 2025, the association is now required to fund the entire estimated HVAC replacement anyway. And, if the Milestone Inspection also finds the older condo building has severe structural integrity issues, that cost will also need to be funded. Immediately. These two large expenses could feasibly push the new assessments required by owners into five figures— and it was all unexpected until the new legislation passed. Mike York of the engineering firm Socotec says, “Associations who have been proactive over the years will be OK. It’s the associations that have not been proactive that may now be screaming about the new laws, and they may be in trouble.” So, what might a condo owner do? The real estate community is advising that if owners believe the worst is in store for their building but their condo inspection has not yet occurred, it may be time to sell and get out before the December 2024 deadline when a glut of properties may hit the market. If the the Milestone Inspection and SIRS have been completed and problems were found, the real estate community is strongly advising

T

June 2021, was just that. A disaster. In one of the worst building collapses in U.S. history, 98 residents lost their lives in the middle of the night in a building they thought of as their secure home. The facets of this story are deep and tangled, creating myriad com- plexities and viewpoints.

WHAT CAUSED THE COLLAPSE?

The cause of the collapse is still being analyzed and investigated to determine exactly why a portion of a 12-story, 136-unit building could be reduced to rubble in seconds. The destabilization of a building like the one in Surfside may be due partly to the saltwater environment itself; concrete, rebar, and salt are a corro- sive combination. But it is generally believed the overwhelming respon- sibility for the collapse may stem from years of neglect and deferred maintenance as well as potentially poor initial design and construction. FUTURE PREVENTION? In 2023, two years later, Florida condominium owners and asso- ciations are still awash with the aftermath. Legislation passed in May

TOO BIG OF A PROBLEM TO REPAIR? So, what happens if an association

has not imposed assessments for future maintenance needs but then discovers structural problems as well?

38 | think realty magazine :: may – june 2023

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