Dear Board Member,
As you may already be aware, Resource Property Management is a member of CEOMC, an organization with membership comprised of individual management companies throughout the state of Florida. The main goal of CEOMC is to promote and protect Florida Community Associations by serving as an advocate for millions of homeowners who are affected by legislative decisions made in Tallahassee. Led by executive director, Mark Anderson and executive assistant Josh Burkett, CEOMC has worked tirelessly to ensure the best interests of our communities are known to lawmakers. Our group has been monitoring the latest from Tallahassee and the following is an update we received regarding the “Special Legislative Session”:
The Florida Legislature and Governor convened a special session to address the issue of property insurance, which began on Monday, May 23, 2022. (Please see the attached insurance update)
However, the special session was suddenly expanded to include the Surfside legislation that did not pass during the regular Legislative Session earlier this year. Reconsideration of the issue appears to be driven by the increased public and political pressure some south Florida legislators were receiving because of failing to pass anything two months ago.
The following are highlighted provisions of the Bill:
- Building inspections are mandated for Condos and Co-Ops that are 3 stories or more in height, 30 years after the CO is issued. If within 3 miles of the coast, inspections are mandated 25 years after the CO is issued and then every 10 years thereafter.
If a building is already over 30 years (or 25 if by the coast), the initial inspection must be completed by December 31st, 2024.
- The Inspections must be completed by a licensed architect or engineer
- Inspections are broken down into phases. Phase 2 only needs to occur if issues are found in the Phase 1 inspection.
- The Engineer must submit the inspection report to the association and the local building official.
- Associations must give the inspection report to the owners.
- Inspection reports are defined as official records and must be maintained and posted on the communities’ website, if applicable.
- If The CAM or management firm has a contract with an association that has buildings 3 stories or greater in height, the CAM or firm must act in accordance with Board’s direction by complying with the requirements of building inspections.
- The bill prohibits unit owners from waiving or reducing reserves after December 31st, 2024, for certain components that are identified by a “structural integrity reserve study.”
- Developers are prohibited from waiving reserves
- Associations are required to conduct a “structural integrity reserve study” AT LEAST every 10 years and detail, at a minimum, what must be included in the Reserve Study.
- These new reserve studies must have a visual site inspection performed by an architect or engineer. The other parts of the reserve study may be performed by anyone qualified to do reserve studies.
- Failing to conduct this new reserve study would be a breach of the Board’s fiduciary duty to their unit owners.
- Both the inspection reports and structural reserve study are to be provided to prospective buyers in the non-developer discloser documents.
According to Mark Anderson, this all happened very quickly (over a few hours) with no notice and no opportunity for any concerns to be heard. However, there will be a bill introduced next session to address certain languages which may need clarification or reconsideration. It is our understanding that many legislators have already committed their support to clean up this bill.
We have also been advised by Mark that next year may present several challenges related to Association costs. We will keep you updated as pertinent legislative issues arise.
Thank you for your attention.