SB  154 and HB 1395

We need to support these bills relating to roles of management on structural inspections and safety of Condominium and Cooperative Buildings.

MANAGEMENT RESPONSIBILITY.

Section 1. Paragraph (b) of subsection (1) of section 468.4334, Florida Statutes, is amended to reflect that if a community association manager or a community association management firm has a contract with an association regulated under s. 553.899, Florida Statutes must comply with that section as directed by the board.  The statute  mandates structural inspections on  aging condominium and cooperative  buildings for safety reasons.    

MILESTONE INSPECTION.

. A “Milestone inspection” is a  structural inspection of a building, including an inspection of load-bearing walls by a licensed architect or engineer authorized to practice in Florida attesting to the life safety and adequacy of the structural components of the building.       It determines any necessary maintenance, repair, or replacement of any structural component of the building, (but not  for any purpose of compliance with the Florida Building Code or the FIRE safety code.)    

In Mixed-use buildings,  clarification that all owners of a mixed-use building in which portions of the building are subject to the condominium or cooperative form of ownership are responsible for ensuring compliance to share the costs of the inspection.   A  condominium association or cooperative association must arrange for the milestone inspection to be performed and is responsible for ensuring compliance with the requirements .   For example,  if a building’s certificate of occupancy was issued on or before July 1, 1992, the building’s initial milestone inspection must be performed before December 31, 2024, and the local enforcement agency must provide written notice of such required inspection to the condominium association or cooperative association by certified mail, return receipt requested.

Local  enforcement agencies responsible for enforcing the milestone inspection requirements are authorized, at their option, to set a 25-year inspection requirement if justified by local environmental conditions, including proximity to seawater;.  

In addition, local enforcement agencies may extend the inspection deadline for a building upon a petition showing good cause that the owner or owners of the building have entered into a contract with an architect or engineer to perform the milestone inspection services and the milestone inspection cannot reasonably be completed before the deadline.  These  bills also provide that the inspection services may be provided by a team of design professionals with an architect or engineer acting as a registered design professional.    Moreover, the bills clarify that an association must distribute a copy of the summary of the inspection reports to unit owners within 30 days of its receipt.

BUILDING    SAFETY

The bills provide that The Florida Building Commission is to establish a building safety program to implement the milestone inspection requirements within the Florida Building Code, and to specify the minimum requirements for the commission’s building safety program by December 31, 2024.  These include inspection criteria, testing protocols, standardized inspection and reporting forms that are adaptable to an electronic format, and record maintenance requirements for the local authority having jurisdiction.
 

RESIDENTIAL INSURANCE POLICIES

The bills revise the requirement that all personal lines residential policies issued by the Citizens Property Insurance Corporation must include flood coverage to exempt condominium or cooperative units that are in certain flood-risk areas and above specified floors in a building.

OFFICIAL RECORDS REQUESTS

The bills clarify that both the condominium or cooperative unit owner and any person authorized by any owner as his or her representative may inspect the official records of  the association.

RESERVE FUND  AND STRUCTURAL INTEGRITY RESERVE STUDY (SIRS)

These bills revise the reserve funding requirements relating to condominium and cooperative associations subject to the structural integrity reserve study (SIRS) requirement to base a budget adopted on or after January 1, 2025, on the findings and recommendations of the association’s most recent SIRS;  In addition, it permits (i) associations that are not subject to the SIRS requirement to waive reserves if approved by a majority vote of all voting interests; (ii) multi-condominium associations to waive reserves if an alternative funding method has been approved by the division; and (iii)  provide that reserve assessments may be adjusted for inflation.
 

The bill amends the SIRS requirements only for residential condominiums and cooperatives; .

In addition, a SIRS recommendation must include a reserve funding schedule; and permits the visual inspection  to be verified by an engineer or architect, as well as certified Reserve Specialist, or Professional Reserve analyst by the Community Associations Institute or the Association of Professional Reserve  analyst to perform or verify the visual inspection portion of the SIRS.

Single-family, two-family, or three-family dwellings with three or fewer habitable stories
above ground; and  any portion or component of a building that has not been submitted to the condominium or cooperative form of ownership; or any portion or component of a building that is maintained by a party other than the condominium or cooperative association are exempt from  SIRS requirements.

EFFECTIVE: UPON BECOMING LAW