Florida condos have a looming deadline for repairs. Here’s what to know about the law
The deadline is coming for condos to file their spending plans for repairs.
Florida is requiring all condo associations three stories and higher to file an inspection report that details expected costs to renovate or maintain the buildings.
Here’s what to know about the timeline:
What’s the deadline for condominiums?
The so-called structural integrity reserve study is due by Dec. 31, and then again every 10 years.
What else does the Florida law require?
The state law also requires condo owners to save up and contribute every month to their association’s reserves — much like a savings account — to meet anticipated cost changes. That means owners can expect even higher assessments and fees.
Why did the state pass this law?
The change comes after the collapse of the Champlain Towers South in Surfside, which killed 98 people in June 2021. The building needed repairs, but owners waived reserves to the point where they failed to have sufficient funds to start repairs on time. The new law prohibits waivers and require communities to fund repairs.
What steps do condos need to take?
▪ Condo associations must commission a structural integrity reserve study.
▪ Once the inspector returns the report, the condo association must adjust the budget. The budget has to account for monthly contributions toward a reserve sufficient to pay for renovations and upgrades every 15 to 25 years.
▪ The association must notify and share with every owner the inspector’s structural integrity reserve study and the revised budget within 45 days. If the association has a website, it must post the report online.
▪ The association must file the report to the Florida Department of Business and Professional Regulation within 45 days.
▪ For budgets adopted on or after Dec. 31, condo associations that have a structural integrity reserve study must start reserve contributions in 2025. For those stuck on a waiting list with an inspector, in the process of an inspection, planning to complete their milestone inspection in 2026 or simply desiring to reduce the expected reserve amount, there’s a process to waive payments one last time. Before Dec. 31, the association would have to call a vote and gain the approval of a majority of all owners to waive until 2026.
Is there a penalty if a condo misses the state deadline?
The law for reserves doesn’t carry a penalty if a condo fails to meet the deadline. State Rep. Vicki Lopez, R-Miami, said during a Miami Herald a real estate panel in September that she and other lawmakers plan to approve penalties next year for condos that don’t meet the new requirements.
Does it make sense to delay a condo reserve plan?
Lenders and insurance companies review condo associations’ financial documents when making a loan or when issuing or renewing policies. Should an association choose to delay reserve contributions to 2026, loan requests or insurance policies may be rejected or come at a premium with higher interest rates and costs because companies may want to protect themselves against taking on more risk.
But it all comes down to this: Condo owners will have to pay more to remain living in the same building. Reserves will kick in, whether associations choose to start in 2025 or 2026.
This story was originally published December 26, 2024 at 11:11 AM.
