It hasn’t been pretty for condo owners in the Sunshine State since the collapse of the Champlain Towers South in 2021. After this tragedy, laws were passed requiring “milestone inspections” of older buildings and “structural integrity reserve studies” to determine how much money should be saved for future major repairs.
The milestone inspections were supposed to be completed by the end of 2024 for certain older buildings that are three stories or higher. Some condo associations hit owners with large assessments in the race to comply with the deadline.
On April 30, the Florida Legislature unanimously approved changing some of the condo laws enacted after the Champlain Towers collapse. HB 913 was passed to the governor’s desk, and he is expected to sign it into law. One of the changes was to extend by one year the structural integrity studies to Dec. 31 of this year. Hopefully, this will help some associations, but others will still struggle to meet the new deadlines.
Another change in the bill says the milestone inspections and structural reserve studies apply to buildings that have three or more habitable stories. Current law requires the buildings to have three stories or more, not specifying whether the ground floor is habitable. I remember at the time the original law was enacted, the definition of three stories was confusing, so clarifying this is an important point. It also could change how some condo buildings are evaluated going forward.
The bill will also allow for a temporary pause in reserve funding for two years immediately following a milestone inspection. This will give condo associations flexibility on meeting reserve requirements and also allow associations to use lines of credit or loans to satisfy reserve obligations if a majority of owners approve.
Under current law, the structural reserve studies target features that affect buildings’ structural integrity or safety, including roofs, plumbing, electrical systems, windows and exterior doors. The studies also include other items that have deferred maintenance expenses of more than $10,000, which the bill raises to $25,000.
Finally, the new measures also address education requirements of condominium association managers and management companies. In Florida, all newly-elected or appointed directors of HOA and condominium associations must complete a new board member education course within 90 days. This requirement also includes annual continuing education hours, with the amount varying based on the size of the association. The educational curriculum must include training on financial literacy and transparency recordkeeping, levying of fines and notice and meeting requirements.
The new law makes training mandatory for Florida condominium board members. Non-compliance by a director who fails to timely comply with the certification and training requirements may be suspended from board services.
Associations with fewer than 2,500 parcels require at least four hours of continuing education annually. Associations with 2,500 or more parcels require at least eight hours of continuing education annually.
In a variety of ways, educating board members is the most important issue to come out of this legislation. Many condo associations would not be in their current financial and possibly dangerous positions if their boards were better informed.
The spirit of the legislation as I see it is to keep condominium structures safe for residents and to give owners and associations some financial relief. Many homeowners in southern Florida are having to make a choice of whether or not they are going to leave their beloved Florida homes. HB 913, when finally approved, will give them some financial breathing room without giving up the structural integrity of their homes.
It’s a rare thing to see all of government come together and agree; something to celebrate.
