New Legislation

July 30, 2023

Miami Herald Column: “After Surfside Condo Collapse, Group Recommends Key Condo-Safety Measures, Financial Reforms”

The firm’s latest Miami Herald “Real Estate Counselor” column was authored by shareholder Laura Manning-Hudson and appears in today’s edition of the newspaper. The article, which is titled “After Surfside Condo Collapse, Group Recommends Key Condo-Safety Measures, Financial Reforms,” focuses on some recent major changes to the Community Associations Institute’s recommended condo-safety policies and reforms. Her article reads:

. . . CAI, which is the leading organization representing the interests of community associations, revealed that it now recommends statutorily mandating reserve studies and funding for all community associations.

For nearly 40 years, the organization’s recommended public policy called for leaving reserves funding and studies up to the individual associations, rather than mandates in state law. That began to change after Surfside when it convened three specialized task forces to explore changes to laws and best practices that could help to prevent a similar disaster.

The task forces recommended that CAI review and update its reserve studies and funding public policies, which were initially established in 1983 and last updated in 2012. The organization has now acted on that suggestion, and the changes go well beyond the call for new state mandates.

Continue reading

July 27, 2023

Florida Lifts Pit Bull Ban – A New Era for Pet Owners

by L. Chere Trigg

L. Chere Trigg

On October 1, 2023, a groundbreaking legislative decision will take effect, ending the ban on pit bulls and other prohibitions in Florida that restrict dogs based upon breed, weight or size. With this new development, many community associations that previously relied on local ordinances to restrict ownership of specific dog breeds such as pit bulls will need to consider making changes to their governing documents should they wish to continue enforcing such restrictions.

Florida’s decision to no longer ban specific breeds marks a significant shift in pet ownership policies within the state. For years, pit bulls have been a breed targeted by various community associations due to perceived safety concerns, leading to their exclusion from many communities. However, this legislation disallows public housing authorities from establishing regulations that target specific breeds, weights, or sizes. It is important to note that public housing authorities may still address any welfare or safety concerns caused by attacks on a person by a domestic animal.

Before October 1, 2023, community associations that wish to maintain their prohibition of pit bulls will need to amend their governing documents to include specific language regarding specific animals or breeds. Some associations already have such restrictions in place, but many rely on local ordinances to enforce dog breed bans, which will no longer be valid once the state law comes into effect.

June 26, 2023

Countdown to Compliance: Important Deadlines for Florida Condominiums

by Nicole R. Kurtz

Nicole R. Kurtz

For condominium associations in Florida, a range of legal and regulatory obligations govern their operations and help to ensure the well-being of residents and the preservation of their property values. Staying current with these requirements is paramount for condominium boards and managers as they navigate the complex compliance landscape. As we approach the midpoint of 2023, several significant deadlines loom on the horizon, demanding attention and proactive action from condominium communities statewide.

Two-Way Radio Communication Enhancement Systems:
By January 1, 2025, all high-rise buildings, as defined by the Florida Building Code, are required to comply with minimum radio strength for fire department communications and two-way radio communication enhancement systems as required by the Florida Fire Prevention Code. Existing high-rises that are not yet in compliance with the requirements must apply for an appropriate permit for the required installation with the local government agency having jurisdiction by January 1, 2024, and they must demonstrate that the building will become compliant by the January 1, 2025 deadline.

Milestone Inspection:
An owner, or owners, of a building that is three stories or more in height, as determined by the Florida Building Code, and that is subject in whole or in part to the condominium or cooperative form of ownership must have a milestone inspection performed by December 31 of the year in which the building reaches 30 years of age, based on the date the certificate of occupancy for the building was issued, and every 10 years thereafter.

If a building reaches 30 years of age before July 1, 2022, the building’s initial milestone inspection must be performed by December 31, 2024.

If a building reaches 30 years of age on or after July 1, 2022, and before December 31, 2024, the building’s initial milestone inspection must be performed before December 31, 2025.

May 7, 2023

Miami Herald Column: “Real Estate Counselor: Owners’ Gripes Over Legit HOA Budget Increases Prove Detrimental”

by Siegfried Rivera

Siegfried Rivera

The firm’s latest Miami Herald column was authored by shareholder Gary M. Mars and appears in today’s edition of the newspaper. The article, which is titled “Real Estate Counselor: Owners’ Gripes Over Legit HOA Budget Increases Prove Detrimental,” focuses on a scenario that is becoming increasingly common at South Florida condominium associations and HOAs. Gary writes that highly effective and scrupulous directors are being subjected to unwarranted accusations and mistrust by unit owners who become frustrated over necessary budget increases and special assessments, causing a great deal of discord and disharmony that often exacerbate associations’ financial strains while also diminishing community appeal and property values. His article reads:

. . . Many South Florida community associations have been forced to increase their annual budgets and dues to account for today’s economic conditions, including rises in insurance and staffing costs. Some have also had to enact special assessments to raise funds for specific immediate needs, such as new roofs, elevators, HVAC systems, etc.

Associations are bound by Florida law and their own governing documents to maintain such common elements.

If they have waived the funding of reserves in the past and are unable to pay for such repairs/replacements when they inevitably arise, special assessments possibly combined with lender financing represent their only options for securing the necessary funds and beginning the work as expeditiously as possible. Boards of directors are simply left with no other recourse and must implement such assessments to meet their duties to the communities they serve.

May 1, 2023

Florida Senate Passes Bill Addressing Concerns Over Last Year’s Condo-Safety Reforms

by Laura Manning-Hudson

Laura Manning-Hudson

Florida condominium associations and those who provide them with expert guidance have experienced some confusion and questions over aspects of last year’s condo-safety reforms, and the state Senate has responded with the passage of key amendments to address some of these concerns. While a companion bill remains before the House, Senate Bill 154, which was passed unanimously, deals with the new requirements for inspections and financial reserves.

Under last year’s reforms, milestone inspections are required for buildings that have been occupied for 30 years (25 years if within three miles of a coastline), and additional inspections are required every 10 years thereafter. The new bill allows buildings within three miles of the coastline to be inspected after they have been occupied for 30 years, but it enables local officials to require inspections after 25 years of occupancy depending on “local circumstances, including environmental conditions such as proximity to salt water.” It also clarifies that the required milestone inspections apply only to residential condominiums and mixed-use buildings.

Florida-legislature2-300x169 If enacted, the bill would also allow local officials to extend inspection deadlines if building owners have entered into contracts with architects or engineers but have been unable to complete inspections in time. In response to complaints from associations over the lack of available qualified inspectors, it also permits for inspections conducted by design professionals working under engineers or architects as the registered professionals in charge.

April 23, 2023

Firm’s Miami Herald Column: “Real Estate Counselor: CAI Conducting Advocacy Efforts on Capitol Hill”

by Siegfried Rivera

Siegfried Rivera

The firm’s latest Miami Herald column was authored by shareholder Nicole R. Kurtz and appears in today’s edition of the newspaper. The article, which is titled “Real Estate Counselor: CAI Conducting Advocacy Efforts on Capitol Hill,” focuses on the recent outreach and meetings by the Community Associations Institute’s public affairs and advocacy team with members of the U.S. Congress and their staffs in Washington D.C. It reads:

. . . As my colleagues have written in this column, CAI is backing a bill pending before the House of Representatives that would provide access to government-backed, low-interest loans for condominium building safety and critical repair/reinforcement projects. CAI’s advocacy efforts on condo-safety reforms have been recognized with the 2022 Lobbying Strategy Innovation Award by the Public Affairs Council, which is the leading nonpartisan association for public affairs professionals worldwide.

In response to the increasing costs of property insurance, mortgage underwriting rules, and new ordinances/laws that will result in more condominium building inspections and critical repairs, some South Florida communities have already begun adjusting their budgets and raising their monthly dues. The proposed bills backed by CAI would offer relief for these increasing costs by providing condominium associations, as well as their unit owners, with access to FHA-insured low-interest loans.

CAI has also been lobbying for reforms to Fannie Mae’s and Freddie Mac’s condominium and housing cooperative lending guidelines. These government-backed home mortgage institutions adopted emergency underwriting guidelines for mortgages for condominiums and residences in housing cooperatives after the horrific Champlain Towers South tragedy. Their temporary condominium and housing cooperative guidelines have caused significant delays, and some outright lender denials, for prospective buyers nationwide.

March 20, 2023

Florida Legislature Considering Bills Proposing Changes to Condo Safety Reforms, Construction Defect Lawsuits

by Roberto C. Blanch

Roberto C. Blanch

As the 2023 Florida legislative session gets underway, there are several bills impacting associations and real estate that our firm’s South Florida community association attorneys will be keeping a close eye on and discussing in our blog.

Senate Bill 154 and House Bill 1395

Perhaps the most important of these are Senate Bill 154 and House Bill 1395, which deal with issues such as inspections and condominium association financial reserves that were addressed in the condo safety reform law that was passed last May with the adoption of Senate Bill 4D during a special legislative session. Under the new law, inspections are required for buildings that have been occupied for 30 years — or 25 years if they are within three miles of a coastline. After these initial inspections, the buildings will have to go through the process again every 10 years.

If adopted, the new bills could result in changes to the time by which buildings, including those within three miles of a coastline, will have to be inspected. The two bills include different timeframes by which the initial milestone inspection may have to be performed (e.g., SB 154 triggering all such inspections at 30 years with discretion for local officials and authorities having jurisdiction to compel some at 25 years depending on “local circumstances, including environmental conditions such proximity to salt water”; or HB 1395 requiring the initial inspections at 25 years for all buildings regardless of proximity to salt water).

January 1, 2023

Miami Herald Real Estate Column by Gary Mars: “Industry Association Offers Lawmakers, Advocates Legislative Priorities for 2023”

by Siegfried Rivera

Siegfried Rivera

The firm’s latest Miami Herald “Real Estate Counselor” column was authored by partner Gary M. Mars and appears in today’s edition of the newspaper. The article, which is titled “Industry Association Offers Lawmakers, Advocates Legislative Priorities for 2023,” focuses on the 2023 legislative priorities from the Community Associations Institute, which serves as the leading voice for the associations industry. His article reads:

. . . To determine CAI’s priority issues for 2023, its Government & Public Affairs team surveyed nearly 1,000 members including the federal legislative action committee (LAC), Government & Public Affairs Committee, and state LAC representatives. Fifty percent of respondents said they anticipate condominium safety issues in 2023, including those covering reserve studies and funding; as well as building inspections, maintenance and structural integrity.

The organization recommends statutorily mandating reserve studies and funding for all community associations, and it also supports additional requirements by developers during the development process and prior to the transition of association control to homeowners. It addresses structural integrity through statutorily mandated building inspections at 10 years, 20 years, and every five years thereafter, as recommended by the American Society of Civil Engineers’ published protocol for building inspections.

Bauman also wrote that CAI encourages policymakers to engage industry stakeholders, including community associations, in an open forum over legislative initiatives and regulations involving short- and long-term rentals. The group’s position is that association boards of directors, with homeowner input, are the appropriate governing body to craft policies regarding whether short- and long-term rentals make sense for their community.

September 1, 2022

Florida’s Mandatory New Condominium Building Reporting System Begins with New Online Form

by Laura Manning-Hudson

Laura Manning-Hudson

The changes that the Florida legislature enacted during its special session earlier this year call for new requirements for structural inspections for buildings that are three stories or higher. They also create new reporting requirements for condominium associations and cooperatives, and call for the enhanced funding of reserves for major structural repairs.

The process established under the new law begins with the reporting of some basic information for all affected buildings throughout the state. The division that oversees condominiums and cooperatives under the state’s Department of Business and Professional Regulation has been charged with establishing the reporting system and collecting the information.

dbprlogo-300x170 The state agency has now officially begun these efforts with its new Building Reporting Form, which can be submitted online and is now available at www.myfloridalicense.com/DBPR/condos-timeshares-mobile-homes/building-report/.

The requested information on the form is very basic, so associations will not have much difficulty with this initial step. It includes the number of buildings on the property that are three stories or more in height, the number of units in such buildings, the addresses of all such buildings, and the counties in which they are located. The form must be submitted by Jan. 1, 2023.

August 2, 2022

Miami Herald Op-Ed Column by Gary Mars: “Federal Condo-Safety Financing Proposal Can Prevent More Tragedies Like the Surfside Collapse”

by Siegfried Rivera

Siegfried Rivera

For the second time in the last several months, firm shareholder Gary M. Mars authored an op-ed editorial column in the Miami Herald on a vital new piece of federal legislation to provide for condo-safety financing options for condominium associations and their unit owners. Gary’s new article, which is featured in today’s op-ed Opinion page of the Herald, discusses what he calls a perfect storm of rising insurance, inspections, repairs and reserves expenses that could jeopardize the finances of many South Florida condominium associations and force some owners to either sell or face the prospect of foreclosure. It reads:

. . . A recent Palm Beach Post article chronicled how the Portofino South Condominium in West Palm Beach received an 82% increase from its insurance carrier, while its directors and residents had expected an increase of about 25%, which the community got in 2021.

Mary McSwain, 67, who bought her one-bedroom unit in January, said her monthly dues are going from $914 to $1,347.

For most communities, increased insurance costs will come first, but increases created by the provisions of the state (and some county) mandates for structural inspections, repairs and reserve funding are sure to follow. Those provisions do not start until 2024 for the affected buildings, but association boards would be well advised to begin securing and vetting offers from qualified professionals for their long-term budgetary planning.

A federal proposal introduced recently by Florida U.S. Reps. Charlie Crist and Debbie Wasserman Schultz, together with another bill from the same lawmakers introduced in April, could provide relief for communities in immediate need of substantial repairs and renovations. The new Rapid Financing for Critical Condo Repairs Act of 2022 would let the U.S. Department of Housing and Urban Development’s Federal Housing Administration insure condominium association building rehabilitation loans issued by private lenders.