Recent Changes to Florida Condominium Law

Over two years ago, the collapse of Surfside, Florida condominium occurred. Considering the devastation, Florida has made legislative changes to ensure a horrific collapse never happens again.

Florida law now requires condominium associations and cooperatives over three (3) stories to conduct a milestone inspection and a structural integrity reserve study. As of March 20, 2023, the FAR-BAR updated the Condominium Rider to require that a seller provide a buyer, at the seller’s expense, a copy of the milestone inspection and structural integrity reserve study, if applicable and if available from the governing association.

WHAT IS THE MILESTONE INSPECTION?

The milestone inspection is a physical inspection to determine a condominium or cooperative building’s structural integrity. The inspection report must, among other things:

1. Identify any substantial structural deterioration and recommend repairs;
2. State whether unsafe or dangerous conditions are observed; and
3. Recommend any remedial or preventive repairs for damaged items that are not considered to be substantial structural deterioration.

In the initial legislative change, milestone inspections were required for condominium and cooperative buildings that have been occupied for 30 years or more or occupied for 25 years or more and located within three miles of the Florida coastline. Since then, Senate Bill 154 has been introduced to provide clarity on ambiguous sections. The updated language allows milestone inspections to be completed every 30 years, without a distinction for proximity to the coastline, with an allowance for local enforcement agencies to set a 25-year requirement if justified by local environmental conditions, including proximity to seawater.

The milestone inspection must be completed by December 31 of the year in which the building reaches 30 years of age and every ten years thereafter. If a building’s certificate of occupancy was issued on or before July 1, 1992, the initial milestone inspection must be completed before December 31, 2024. The 12/31/24 due date is the soonest any association is required to have a milestone inspection. Even if a building is 30 years old now, the milestone inspection does not have to be completed until

12/31/24. Furthermore, If a condo building that is 3 or more stories reaches 30 years of age before July 1, 2022, its initial milestone inspection must be done before 12/31/24, but if a building reaches 30 years of age on or after 7/1/22 and before 12/31/24, its milestone inspection must be done before 12/31/25.

WHAT IS THE STRUCTURAL INTEGRITY RESERVE STUDY?

1. Identify the common areas being inspected;
2. State the estimated remaining useful life and estimate the replacement cost or deferred maintenance expense of the common areas being inspected; and
3. Provide a recommended annual reserve amount that achieves the estimated cost of replacement or deferred maintenance expense of each common area being visually inspected by the end of the estimated remaining useful life of each common area.

The structural integrity reserve study is a study of reserve funds necessary for future major repairs of the common elements of a condominium or cooperative that are three stories or higher. The study must:

The Structural Integrity Reserve Study must be completed at least every ten years. Before a developer turns over control of an association to unit owners other than the developer, the developer must have a structural integrity reserve study completed for each building on the association property that is three (3) stories or higher in height. These findings in the study will allow owners and potential buyers of condominium and cooperative units more information as to any future assessments they might be responsible for.

WHAT HAPPENS IF THE MILESTONE INSPECTION OR STRUCTURAL INTEGRITY RESERVE STUDY CANNOT BE COMPLETED BY THE DEADLINE?

Arrangements have been established to enable local law enforcement agencies to potentially extend the deadline for an inspection in specific situations. This extension can be granted based upon a petition showing that the owners of the units or building have entered into the necessary contracts for the completion of the milestone inspection services; however, the actual inspections cannot be reasonably completed before the deadline. This allows those who have made a diligent effort to start the process to receive an extension to complete the required work.

To learn more on the recent changes to Florida condo laws, join RAJC at RASM North for a panel discussion on October 12 at 1:30 p.m. Click here to register.