Eric Miller Group – eXp Realty Fort Lauderdale
Senate Bill 4 D puts in place numerous safety and preventative maintenance measures which must be carefully followed by Florida Condo Associations. The new law requires additional and stringent inspections by licensed professionals in any condo building over 25 years old. In addition, the new state law will not allow Fort Lauderdale Condos to vote not to fund reserves for many items at the property. The new law will create a major hardship for buildings that are behind on funding reserves. The legislature included a two-year grace period, but the clock is ticking on buildings fully funding reserves and bringing their reserve balances in compliance. At the same time the legislature has been able to do little to address the current insurance crisis which will place additional stress on South Florida Condominium budgets.
New Condo Addendum Refers to Milestone Inspections
Fort Lauderdale Condos with buildings of 3 stories or more will be required to perform what are now called Milestone Structural Inspections and issue a Milestone Inspection Report which must be done by a licensed architect or engineer. The inspections will analyze a building’s structural safety. There is little doubt that these inspections and reports will be expensive and add to the already stressed condo budgets. Every condo board in the area is discussing this issue right now and as a Fort Lauderdale Condo owner or buyer it is time to ask some tough questions as to how these items will affect the cost of owning at your building.
Facts for Fort Lauderdale Condos Buyers and Owners
Fort Lauderdale Area Condos over 3 stories or higher must perform an MSI by end of the year in which the building turns 30 years old. After that point it will need to be done every ten years.
Fort Lauderdale Area Condos Buildings within 3 miles of the South Florida Beach face the exact guidelines but they start at 25 years old.
Fort Lauderdale Area Condos older than 30 years old must complete their first Milestone Structural Inspection by December 31, 2024.
Fort Lauderdale Condos Face Reserve Funding Requirements
You will start seeing the Milestone Structural Inspection referred to as an MSI and its not the only set of initials Fort Lauderdale Condo Owners and Buyers are going to need to know. Here comes the SIRS or the “Structural Integrity Reserve Study”. This item is not new to many condominiums, but it is now part of the new Senate Bill 4 law. The SIRS must consist of a visual inspection of various condominium property components by a licensed architect or engineer. These components include the condominium’s roof, load-bearing walls, floor, foundation, fireproofing and fire protection systems, plumbing, and any item with a deferred maintenance or replacement cost that exceeds $10,000. Many Fort Lauderdale Condos already have Reserve Studies that include items such as hallways and common area renovations. Now the reserve study is required every ten years for all Fort Lauderdale Condos that are not excluded from the Senate Bill 4 Guidelines of being over three stories tall. If the SIRS identifies issues, the association’s board will have a year to begin the repair items.
Fort Lauderdale Area Condos must complete their SIRS by the end of the years in which the building turns 30 years old . After that point it will need to be done every ten years.
Fort Lauderdale Area Condos as of the end of 2024, budget meeting for 2025 cannot vote not to fund full reserves.
Fort Lauderdale Area Condos were used to functioning with pooled reserves. As of EOY 2024 condos must have itemized reserves and cannot use those itemized reserve funds for other purposes.
Additional South Florida Condo Reserve Funing Requirements
Beginning with the end of 2024 condo associations cannot use reserves for a purpose other than as intended.
All inspection reports are part of the official records of the condominium association and must be available to members. A recent change to the purchase and sale contract of condominiums includes that these reports must be made available to condo buyers once completed.
Information contained in the article was compiled from numerous sources and is not warranted and is subject to change. As a local realtor it is my duty to help buyers and sellers navigate these new condo rules to the best of my ability. However, I am not an attorney and recommend that all buyers and seller discuss these new regulations with a Florida attorney so that they completely understand the current situation and how it will affect the cost of owning a South Florida Condo.