Condo owners across South Florida have a mixed understanding of the laws passed after the deadly Surfside condo collapse, including deadlines for reserve studies and inspections — and exemptions.
After Champlain Towers South collapsed overnight in June 2021, killing 98 people, the Florida Legislature took action and passed Senate Bill 4D in 2022 and Senate Bill 154 in 2023.
The condo safety legislation, signed into law by Gov. Ron DeSantis, was geared to ensure that another tragedy like Surfside never occurred again by beefing up condo associations’ financial and structural health. It applies to buildings that are three stories or taller across the state.
That’s why many communities are now grappling with a “double whammy” of tasks they have to complete by the end of this year, said attorney Gary Mars of Coral Gables-based Siegfried Rivera.
Misconceptions abound. One expert called enforcement of the law a “sh*t show.”
Generally, condo associations and co-ops need to worry about two things: structural integrity reserve studies and milestone inspections, the latter of which depends on the age of the building. The Florida Department of Business and Professional Regulation is responsible for implementing the law.
“The biggest misconception is that the legislature is going to do something, and we’re not going to have to comply. Provided the law is currently in effect, you have to comply with the law,” said Carolina Sheir, an attorney at Hollywood-based Eisinger Law. “Do I think the legislature will probably address a glitch bill? Yes, absolutely, hopefully, but … don’t bank on it.”
Legislators are expected to tackle the issue in 2025.
Sheir, who with her colleagues represent nearly 700 condo associations in the state, expects that the laws are forcing a shift in condo owners’ thinking about financial planning.
“Everyone I’m working with is trying to comply, but they are facing hardships,” she said. We will see an increase in collections issues, foreclosure matters because some people may not be able to keep up with the sharp increase in assessments.”
Special assessments to fund repairs, the high cost of insurance and other budget items have already pushed some owners to sell their units at discounts, experts said. At Murano at Portofino, a 37-story, 189-unit tower in Miami Beach, condo owners recently approved their second special assessment in two years for a total of nearly $60 million.
Mars said one factor that’s compounding the issues is that many associations tend to have their annual meetings in December, because that’s when “snowbirds” are typically in town. That is creating more of a rush this year due to the new deadlines.
Reserve studies
Condo and co-op associations are required to complete a Structural Integrity Reserve Study (SIRS) for the roof, load-bearing walls, floors, foundations, fireproofing and fire protection systems, plumbing, electrical systems, waterproofing and exterior painting by the end of 2024. This study could cost anywhere from a few thousand dollars to tens of thousands of dollars. It creates a framework for future budgets. Associations will be required to also have a new study done every 10 years.
For any budget adopted on or after Dec. 31 of this year, the association is required to fund the SIRS reserves based on a schedule that’s included in the study.
If these budgets require assessments against the unit owners that exceed 115 percent of the assessments for the preceding fiscal year, the board is required to hold a special meeting within 30 days, and give at least 10 days’ notice of the meeting to each owner.
Associations can still waive advance funding for non-SIRS items, like carpeting and pool repairs, Sheir said.
Milestone inspections
Condo and co-op owners in Miami-Dade and Broward counties were already required to complete building recertifications at 40 years of a building’s age and every decade after. Now, all condo and co-op associations in Florida are required to complete their milestone inspections when buildings turn 30 years old.
The law gives some flexibility with regard to the buildings’ proximity to salt water and other environmental conditions. If buildings are within three miles of the coast, the milestone inspection requirement kicks when a building turns 25 years old, and every decade after.
Overlap exists between the recertifications required in Miami-Dade and Broward and the state’s milestone inspection. The latter is a structural inspection of a building, its load-bearing walls, the roof, windows, doors and other structural elements, by a licensed architect or engineer, according to the statute.
If a building was 30 years old before July 1, 2022, the inspection must be performed before the end of 2024. If it turns 30 between July 1, 2022 and the end of 2024, the inspection has to be completed before Dec. 31, 2025.
Oscar Seikaly, CEO of NSI Insurance Group, said many condo owners aren’t “dialed into” what’s going on.
Some owners in homeowners associations — consisting of single-family homes — don’t realize they don’t have to worry about SIRS or milestone inspections, experts said.
“When we talk about these newer rules, 90 percent of the condo owners don’t know what’s going on,” Seikaly said. “They’re going to get the bill, and then they’re going to start asking questions.”
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