Florida passed a new law in June of 2023 SB 154 – also known as the Condominium and Coop Safety (Surfside Glitch Bill) that brings significant changes to condominium and cooperative associations.
Here’s what property owners and potential buyers should understand about SB 154:
1. Safety Inspections:
- Buildings three stories or taller must undergo “milestone inspections” when they reach 30 years old.
- Buildings near the coast may need inspections earlier, depending on local rules.
- Inspections must be completed by December 31, 2024, for buildings already 30 years old.
2. Financial Planning:
- Associations must conduct “structural integrity reserve studies” (SIRS) to plan for future repairs.
- Starting January 1, 2025, association budgets must be based on these studies.
- Associations can no longer waive or underfund reserves for structural components.
3. Transparency:
- Associations must promptly notify unit owners about inspection deadlines and results.
- Buyers will receive more information about a building’s condition before purchasing.
4. Cost Sharing:
- In mixed-use buildings, all owners (not just condo owners) must share inspection and repair costs.
5. Insurance:
- Condo unit owners’ policies through Citizens Property Insurance Corp. no longer require flood coverage.
What This Means for You:
- Expect potential increases in association fees to cover required inspections and reserves.
- You’ll have more information about a building’s condition and financial health when buying a condo.
- There may be special assessments to fund necessary repairs or build up reserves.
- These changes aim to ensure the long-term safety and financial stability of condo buildings.
Remember, while these new requirements may lead to higher costs in the short term, they’re designed to protect your investment and safety in the long run. If you have specific questions about how this law affects your property or a potential purchase, consult with a real estate professional or your condo association.
