condominium safety reforms

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.

February 20, 2023

Community Associations Institute’s Condo Safety Initiatives Recognized with Prestigious Public Affairs Council Award

by Roberto C. Blanch

Roberto C. Blanch

The Public Affairs Council, which is the leading nonpartisan association for public affairs professionals worldwide, recently awarded its 2022 Lobbying Strategy Innovation Award to the Community Associations Institute for the organization’s condominium safety policy response and initiatives.

In the aftermath of the horrific collapse of Champlain Towers South that claimed 98 lives, CAI released its Condominium Safety Public Policy Report based on the work of its special task forces to recommend changes to laws and best practices that may help both communities and legislators to better address building safety.

The participants in these task forces included engineers, insurance experts, building officials, local government leaders, property managers, attorneys, lenders, and others. Over the course of three months, more than 600 individuals devoted a great deal of time to discussions, surveys, interviews, and research to identify clear recommendations.

The resulting Condominium Safety Public Policy Report provided extensive policy positions and recommendations covering reserve studies and funding, building maintenance, and structural integrity. Since its release, CAI’s government and public affairs team has continued to conduct outreach to state legislators and their staff as well as key individuals in federal housing agencies.

February 12, 2023

Herald Column by Gary Mars: “National Media Focuses on Impact of Florida’s New Condo Safety Law on Association Budgets”

by Siegfried Rivera

Siegfried Rivera

The firm’s latest Miami Herald “Real Estate Counselor” column is authored by shareholder Gary M. Mars and appears in today’s edition of the newspaper. The article, which is titled “National Media Focuses on Impact of Florida’s New Condo Safety Law on Association Budgets,” begins by discussing a recent segment on Fox Business Network’s Mornings with Maria show about the financial repercussions of Florida’s new condominium safety law on the state’s condo associations and their unit owners. It reads:

. . . The host and panelists point out that the mandates for reserves and engineering safety inspections/reports represent new expenses that will need to be borne by condo owners. Their message to recent buyers or those who may be considering a condo in the Sunshine State: Do your homework and come to terms with the fact that the current monthly association dues for many properties are very likely going to see substantial increases in the near future.

Panelist Mitch Roschelle also bemoans that after the Champlain Towers South tragedy, many condominium owners in the state are no longer willing to serve on their board of directors for fear of exposure to potential legal liabilities for their votes and decisions.

While it did paint a particularly gloomy outlook for the state’s condo associations and owners, this recent morning news show segment was not the first and certainly will not be the last of the national news media reports focusing on the coming increases in Florida condominium association budgets created by the state’s new safety reforms. There is no doubt that many properties are going to need to increase their monthly dues and/or enact special assessments to address immediate needs together with the coming inspections and reserves requirements.

June 1, 2022

Florida Legislature Passes Swift Safety Reform Bill During Special Session

by Laura Manning-Hudson

Laura Manning-Hudson

Condominium safety reforms were very much in the spotlight during this year’s regular session following the unforgettable tragedy in Surfside, Florida. Though legislators could not agree on legislation pertaining to safety reforms during the regular session, they successfully did so during a special session. In a surprising move, Senate Bill 4-D unanimously passed in both the House and Senate and was recently signed into law by the Governor. The following are the key takeaways from the 88-page bill:

The “Milestone Inspection”

Florida has now imposed a state-wide structural inspection program for condominium and cooperative associations that are three (3) stories or more in height defined as a “milestone inspection.”
Community association managers or management companies contractually hired by a condominium association that is subject to this inspection must comply with this section as directed by the board.
Milestone inspections must be performed by December 31 of the year in which the building reaches 30 years in age, based on the issue date of the building’s certificate of occupancy, and every 10 years thereafter. Buildings located within 3 miles of the coastline must perform a milestone inspection by December 31 of the year in which they reach 25 years in age, and every 10 years thereafter. Buildings with a certificate of occupancy that was issued on or before July 1, 1992 must have the initial milestone inspection performed before December 31, 2024.
Condominium and cooperative associations are responsible for the scheduling and costs associated with the milestone inspection.
Milestone inspection means a structural inspection of a building’s load-bearing walls and primary structural members/systems.
Milestone inspections must be performed by a Florida licensed engineer/architect who must attest to the life safety and adequacy of structural components of the building. To the extent that it’s reasonably possible, the inspection must determine the general structural condition of the building as it affects the safety of building, such as necessary maintenance, repairs and replacements of structural components.
“Substantial structural deterioration” is described as substantial structural distress that negatively affects the building’s general structural condition and integrity.

fla-legislature-300x198 Milestone inspections will consist of two phases:

- Phase one — Visual examination of habitable/nonhabitable areas of building. If there are no signs of structural deterioration found, phase two is not required.
- Phase two — If substantial deterioration is found during phase one, phase two may involve destructive or nondestructive testing at the inspector’s discretion. This additional inspection may be as extensive or limited as necessary to fully assess areas of distress.
- Architect/engineer who performed inspections must submit a sealed copy of the inspection report and findings to both the association and appropriate local building official
Local enforcement agencies will provide buildings required to comply with this law notice of required inspection by certified mail.
Upon receiving notice, condominium/cooperative associations will have 180 days to complete phase one of the inspection.

March 21, 2022

Gary Mars Quoted in Front-Page Article in Today’s Sun Sentinel: “Failed Condo Safety Bill Leaves Residents, Buyers in Limbo”

by Siegfried Rivera

Siegfried Rivera

An article featuring insights from firm shareholder Gary M. Mars appears on the front page of today’s Sun Sentinel. The article, which is headlined “Failed Condo Safety Bill Leaves Residents, Buyers in Limbo,” focuses on what is in store for condominium safety reforms from lenders and insurers after the measures before the Florida Legislature failed to pass during the 2022 session that ended last week. The article reads:

. . . Some condo lawyers argue that it was too ambitious to expect that a sweeping safety bill could be passed in a short three-month legislative session.

“I know it was very, very ambitious legislation,” said Gary Mars, a condo lawyer at Siegfried Rivera in Coral Gables. “It would have taken a lot of effort to get it through all of the machinations developing legislation of this type.”

He noted that not every building is in dire structural straits, or even old enough to be required to follow inspection rules such as the ones in Broward and Miami-Dade counties, which mandate deep-dive studies after 40 years.

“I represent a lot of associations in buildings in their teenaged years,” he said.

“They’re getting sophisticated reports” from their engineers about deferred maintenance issues such as waterproofing, balcony restorations and painting, Mars said. But the reports don’t cover structural issues.

“They may have wonderful reports, but those reports don’t give the association the ability to check the box” about the building’s overall condition, he said. “There’s not a perfect solution to this problem.”. . .

March 4, 2022

Condo-Safety Reform Bills Making Their Way Through Florida Legislature

by Laura Manning-Hudson

Laura Manning-Hudson

The new condominium safety financing requirements from Fannie Mae and Freddie Mac have drawn a great deal of attention, but the Florida Legislature appears to be poised to go one step further in its response to the horrific Champlain Towers tragedy.

The Florida House and Senate are both moving forward with bills that would add new inspection requirements on condominium buildings. A bill that is now ready to go before the full Senate, SB 1702 would require condominiums that are three stories or taller and located within three miles of the coast to undergo initial inspections 20 years after completion and every seven years thereafter. Buildings in other areas would be required to be inspected after 30 years and every 10 years thereafter.

Flalegislature-300x169 The Florida House has taken up its own version of the bill (HB 7069). Its proposal would require initial inspections to occur 25 years after completion, and buildings further inland would have their first inspection at 30 years. Additional inspections would be required every 10 years.

The House and Senate bills also include differences over reserve studies, which are used to determine the level of funds a condominium community needs to maintain in reserve for future renovations and repairs. The differences between the two bills are likely to soon be consolidated into a final bill for bicameral consideration.

November 22, 2021

High-Rise Condo Safety Reform Recommendations Appear, But Most Florida Municipalities Awaiting Statewide Changes

by Laura Manning-Hudson

Laura Manning-Hudson

Five months after the tragic collapse of the Champlain Towers South condominium in Surfside, Fla., several major organizations have developed a number of high-rise condo safety reforms and recommendations. However, most Florida counties and municipalities appear to be holding off in expectation of statewide changes to legislation during the next legislative session that starts in January.

The Community Associations Institute, which is the largest organization representing the interests of associations in the world, has issued a report with a number of public policy recommendations aimed at providing solutions for legislators addressing high-rise building safety. In addition, seven of Florida’s top architecture and engineering trade groups created a task force that has recommended re-inspections after 30 years with follow-ups every 10 years, and The Florida Bar has also completed the report and recommendations from its Condominium Law Life Safety Task Force.

CAI’s public policy recommendations cover the areas of reserve studies and funding, building maintenance, and structural integrity. The organization believes its recommendations should be considered for adoption into state law to support the existing statutory framework for the development, governance, and management of community associations. It is planning to release model statutory language in support of its policy recommendations.

In addition, federal mortgage lender Fannie Mae has released new project requirements for condominiums and housing cooperatives that will begin Jan. 1 for loans secured by units in high-rise buildings containing five or more attached units. The requirements place a heavy focus on structural and financial stability, and reinforces the importance of meticulous documentation of all appraisals, meeting minutes, financial statements, engineering reports, inspection reports, and reserve studies.