NEW CONDO LAW – Key Takeaways of SB 4-D

Senate Bill 4-D

What is Senate Bill SB 4-D?

SB 4-D is a law passed by the Florida Legislature during Special Session 2022D on
May 26, 2022. The law was the Legislature’s response to the collapse of the
Champlain Towers South condominium on June 24, 2021 in Surfside, FL.

*The Florida Senate will convene on March 7, 2023 for the 2023 Regular Session.  There may be amendments to SB 4-D in the future.* 

Some condominiums associations are now required to obtain 2 new reports by December 31, 2024. 

Some key takeaways on the 2 required reports include:

1. Milestone Inspection Report – Report about the adequacy of structural components of a condo building for life safety purposes.
   1. Requires condominium and cooperative association buildings that are three or more stories
      in height to have a “milestone inspection” of the buildings’ structural integrity by an
      architect or engineer when a building reaches:
      ▪ 30 years of age and every 10 years thereafter, or
      ▪ 25 years of age and every 10 years thereafter if the building is located within
      three miles of a coastline.
   2. Requires, if a milestone inspection is required and the building’s certificate of occupancy
      was issued on or before July 1, 1992, the building’s initial milestone inspection to be
      performed before December 31, 2024.
   3. Requires that a phase one milestone inspection must commence within 180 days after an
      association receives a written notice from the local enforcement agency.
   4. Requires a phase two milestone inspection if there is evidence of “substantial structural
      deterioration” as determined by a phase one inspection.

For the full text of SB 4-D  and additional information on the Milestone Inspection Report, visit the Florida Senate Website and click on bill text: https://flsenate.gov/Session/Bill/2022D/4D

2. Structural Integrity Reserve Study (SIRS). Study of reserve funds required for future major repairs and replacement of common areas of a condo.

1. Requires condominium associations and cooperative associations to complete a structural
   integrity reserve study every 10 years for each building in an association that is three stories
   or higher in height. 
2. Requires associations existing on or before July 1, 2022, that are controlled by non-developer unit owners to have a structural integrity reserve study completed by December 31, 2024 and then every 10 years thereafter.
3. Defines “structural integrity reserve study” as a study of the reserve funds required for
   future major repairs and replacement of the common elements based on a visual inspection
   of the common elements.
4. The amount required to be funded is based on the amount listed in the study.
5. Requires the structural integrity reserve study to include a visual inspection, state the
   estimated remaining useful life, and the estimated replacement cost of the:
   ▪ roof
   ▪ load bearing walls or other primary structural members
   ▪ floor
   ▪ foundation
   ▪ fireproofing and fire protection systems
   ▪ electrical systems
   ▪ waterproofing and painting
   ▪ windows
   ▪ plumbing
   ▪ any item with a deferred maintenance or replacement cost that exceeds $10,000
   that will negatively affect any of the foregoing items
6. Prohibits the waiving, reducing or using the reserves for another purpose for those items
   required in the structural integrity reserve study.

For the full text of SB 4-D  and additional information on the Structural Integrity Reserve Study, visit the Florida Senate Website and click on bill text: https://flsenate.gov/Session/Bill/2022D/4D/?Tab=BillText

What does this mean for Buyers and Sellers of condominium properties that are required to obtain these reports?

Keep in mind, the reports are not due to be completed until 12/31/2024, so many condos have not had their reports completed. If a seller and buyer enter into a contract for the purchase of a condo:

The Florida Senate will convene on March 7, 2023 for the 2023 Regular Session. There may be amendments to SB 4-D in the future. 

DISCLAIMER: The foregoing is a summary of the statutory changes and should not
be relied on as legal advice or a complete explanation of the changes. Every situation
is different, and you should seek qualified legal advice before making a decision.

Please feel free to contact me with your real estate needs and questions. I cannot give any legal advice and I would direct you to your legal representative and/or the Board of Directors at your condo association for further information regarding SB 4-D. 

Annette Dammeyer, REALTOR

Coldwell Banker Realty

808.747.3686

Annette.Dammeyer@cbrealty.com

www.AnnetteDammeyer.com

SL 3535792