On October 12, 2021, The Florida Bar’s Condominium Law and Policy Life Safety Advisory Task Force presented its advisory report to Governor Ron DeSantis.
In response to the tragic condo collapse in Surfside, the Florida Bar created this task force to determine what legislative changes, if any, could help prevent another tragedy from occurring. The task force’s goal was to propose such changes to lawmakers before the January 2022 legislative session.
Below are some note-worthy recommendations listed in the 179-page report:
Board of Directors Obligation for Maintenance, Repair and Replacement
- Timely maintenance, repair, and replacement of structural and life safety systems. Waterproofing should be added as a required maintenance component.
- Preclude association liability for alternative housing costs, lost rent, or other expenses related to instances where unit owners must vacate their units for necessary maintenance, repairs, or replacement to condo property. This recommendation is presumably meant to incentivize boards to commence necessary repairs without the burden of incurring additional costs.
- Necessary maintenance of condominium property should not be considered a “material alteration or substantial addition,” which might otherwise trigger a unit owner voting requirement.
Special Assessments and Borrowing Money
- Prohibitions or limitations on a board’s authority to adopt special assessments or borrow money for necessary maintenance, repair, or replacement of condo property should be void as against public policy.
Inspection Reports and Transparency
- Standardized templates for building inspection reports and uniform qualifications for professionals preparing said reports.
- By December 31, 2024, any residential condo building 3 stories or greater in height should be inspected and obtain a report under seal of a licensed Florida architect or engineer, attesting to maintenance standards, useful life, and replacement costs of the common elements and other condo property. An updated report should be required every 5 years thereafter.
- Associations operating 100 units or more, or having revenues in excess of $500,000.00, should be required to maintain a website. Associations should be required to post final building inspection reports to the website within ten (10) days of receipt. Directing a unit owner to any website that contains a requested record accessible to the unit owner should be deemed to satisfy an official records request.
- Inspection reports should be provided for buyer review before the 3-day rescission period in unit resales.
Reserve Studies, Reserve Waivers, and Funding Reserves
- Require residential condominiums with 3 stories or greater to conduct periodic reserve studies.
- Require associations to maintain mandatory reserves for every component, plus waterproofing, required in the developer turnover inspection report.
- Eliminate the option to maintain pooled reserves for mandatory reserve components.
- Require specific disclosures to unit owners in annual financial statements as to any waivers or reductions of required reserve funding.
- By December 31, 2026, associations should be required to establish a fund for each component in an amount equal to not less than 50% of the replacement costs based on the estimated remaining useful life.
- Eliminate the authority of a developer to waive statutory mandated reserves.
- Require no less than 75% voting interest approval to waive or reduce mandatory reserves. However, associations may not reduce mandatory reserves below 50% of the total statutorily required amounts. For any amounts waived, the association must establish an alternative funding mechanism, which shall be disclosed to all unit owners and prospective buyers.
DBPR Division of Florida Condominiums, Timeshares and Mobile Homes Trust Fund
- At least 30% of the Florida Condominium Trust Fund should be used annual for education purposes intended to train and educate directors, officers, and unit owners in programs to be administered by the Division.
- Implement a cause of action to authorize the DBPR to collect delinquent fees/charges.
Local Government Accountability
- Local governments should not be able to avoid responsibility for the content and conclusions of building inspection reports under the doctrine of sovereign immunity.
Many of these proposals will upend day-to-day condominium operation and the law as we know it. Time will tell which of these proposals will be included in Senate and House bills for the upcoming legislative session.
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