2 of 33

Legislative Update 2022

Presented By:

John Trebilcock Esq.

Goede, DeBoest & Cross, PLLC

2030 McGregor Blvd.

Fort Myers, Florida 33901

(239) 333-2992

jtrebilcock@gadclaw.com

www.gadclaw.com

Legislative Update 2022

3 of 33

Senate Bill 4-D: Building Safety

Legislative Update 2022

4 of 33

What Associations are Affected by the SB 4-D?

All Condominiums under Ch. 718 and Cooperatives under Ch. 719 that have one or more buildings that are at least three stories or more in height.
Milestone inspections will be required either:

30 years from the date of the certificate of occupancy (“C.O.”) for the building being issued; or
25 years from the C.O. for the building being issued if the building is located within 3 miles of a coastline.

Legislative Update 2022

5 of 33

What Associations are Affected by the SB 4-D?

After the milestone inspection date, all condominiums and coops will be required to have the same inspection performed at least once every 10 years thereafter.

The association is responsible for the cost of these inspections.

NOTE: The Statute specifically excludes single-family, two-family, and three-family dwellings with three or fewer habitable stories above ground.

Legislative Update 2022

6 of 33

Milestone Inspections

What is a milestone inspection?

553.899(2)(a) F.S.

Structural integrity inspections conducted by a licensed architect or engineer of a building, including load-bearing walls and primary structural members and systems as defined in 627.706 F.S.

Must attest to the life safety and adequacy of the structural components of the building.

Legislative Update 2022

7 of 33

What about Associations that are older than 30 years?

If the building’s C.O. was issued on or before July 1, 1992, the building’s initial milestone inspection must be performed before December 31, 2024.

If the C.O. is not available, the date of issuance of the C.O. shall be the date of occupancy evidenced in any record of the local building official.

Legislative Update 2022

8 of 33

Will the Association be notified it needs its Milestone Inspection?

Yes, local building enforcement agencies must provide written notice that an inspection is required by certified mail, return receipt requested.

Within 180 days after receiving the notice, the association must complete phase one of the milestone inspection.

Legislative Update 2022

9 of 33

Phase One of the Milestone Inspection

Have an architect or engineer (“inspector”) perform a visual examination of habitable and non-habitable areas of the building, including major structural components.

The inspector must then prepare a qualitative assessment of the structural conditions of the building.

If no signs of substantial structural deterioration to the building components are identified, then phase two is not required.

Legislative Update 2022

10 of 33

What is considered Substantial Structural Deterioration?

Substantial structural deterioration means substantial structural distress that negatively affects a building’s general structural condition and integrity.

The term does not include surface imperfections such as cracks, distortion, sagging, deflections, misalignment, signs of leakage, or peeling of finishes unless the professional performing the inspection determines otherwise.

Legislative Update 2022

11 of 33

What Happens if a Building Fails Phase One of the Milestone Inspection?

If the building fails the phase one inspection, then phase two of the milestone inspection must be completed.

Phase two is at the discretion of the inspector that performed the inspection.

May involve destructive or non-destructive testing at the inspector’s direction.

Legislative Update 2022

12 of 33

Phase Two of the Milestone

Inspection

Inspection at the direction of the inspector that may be as extensive or limited as necessary to fully assess areas of structural distress in order to confirm that the building is structurally sound and safe for its intended use.

Also serves the function of determining how to assess and repair any distressed and damaged portions of the building.

Preference must be given to testing locations that are the least disruptive and most easily repairable while still being representative of the structure.

Legislative Update 2022

13 of 33

What if Repairs are Required?

The Board of County Commissioners may adopt an ordinance requiring the association to schedule repairs for substantial structural deterioration within a specified timeframe after the report is submitted by the inspector.

Repairs must be commenced no later than 365 days after receiving the report.

If an association fails to submit proof to the local enforcement agency that repairs have been scheduled or have commenced within the required timeframe, the local agency must review and determine if the building is unsafe for human occupancy.

Legislative Update 2022

14 of 33

Milestone Inspection Reports�

Once phase one, and if necessary, phase two are completed, the inspector who performed the inspection will submit a sealed copy of the inspection report to both the association and the local government agency with jurisdiction over the association.

Legislative Update 2022

15 of 33

Milestone Inspection Reports – Cont.

Reports must:

Bear the seal and signature of the licensed engineer or architect who performed the inspection.

Indicate the manner and type of inspection forming the basis for inspection.

Identify any substantial structural deterioration, describe the extent of deterioration and identify any recommended repairs for the deterioration.

Legislative Update 2022

16 of 33

Milestone Inspection Reports – Cont.

Recommend any remedial or preventive repair for any items that are damaged but are not substantial structural deterioration.

Identify and describe any terms requiring further inspection.

State whether unsafe or dangerous conditions, as those terms are defined in the Florida Building Code, were observed.

Reports must:

Legislative Update 2022

17 of 33

Milestone Inspection Reports – Cont.

Once the Association receives the milestone inspection report, it must distribute the report to each unit owner, regardless of the findings or recommendations in the report.

Must be delivered by U.S. mail or personal delivery and by electronic transmissions to those owners who have previously consented to receive notice by electronic transmissions.

The summary provided by the inspector must be posted in conspicuous places on the property.

The full report must be posted on the association’s website if the association is required to maintain a website.

If an association fails to complete a structural integrity reserve study, that failure is a breach of an officer’s and director’s fiduciary relationship to the unit owners under 718.111(1) F.S./719.104(8) F.S.

Legislative Update 2022

18 of 33

Additional Government Action Down the Road. . .

The new law authorizes local enforcement agencies to adopt timelines and penalties for failing to comply with the new requirements.

The Florida Building Commission shall review the milestone inspection requirements imposed by the new law and make recommendations to the Legislature to ensure inspections are sufficient to determine the structural integrity of a building.

The Florida Building Commission and Fire Marshal shall work together to provide the Legislature with recommendations for comprehensive structural and life safety standards for maintaining and inspecting all buildings three stories or higher.

Legislative Update 2022

19 of 33

What Does this Mean for Community Managers?

If a community association manager or firm has a contract with an association that has a building on the property that is subject to 553.899, the manager or firm must comply as directed by the Board.

468.4334(1)(b) F.S.

Legislative Update 2022

20 of 33

Substantial Changes to Reserves

Creation of Structural Integrity Reserve Study:

A study of the reserve funds required for future major repairs and replacement of the common areas based on a visual inspection of the common areas as performed by a licensed architect or engineer. Initial studies must be completed by December 31, 2024 and are required every 10 years.

Must identify the common areas being inspected, the remaining useful life and the estimated replacement cost or deferred maintenance expense of the common areas being visually inspected and provide a recommended annual reserve amount that achieves the estimated replacement cost or deferred maintenance expense of each common area being inspected by the end of the estimated remaining useful life of each common area.

718.103(25) F.S.

719.103(24) F.S.

Legislative Update 2022

21 of 33

What is included in the Structural Integrity Reserve Study?

Structural Integrity Reserve Study consists of:

Roof
Load-bearing walls or other primary structural members
Floor
Foundation
Fireproofing and fire protection systems
Plumbing
Electrical systems
Waterproofing and exterior painting
Windows
Any other item that has a deferred maintenance expense or replacement cost that exceeds $10,000 and the failure to replace or maintain such item negatively affects the items listed above, as determined by the licensed architect or engineer performing the visual inspection portion of the structural integrity reserve study.

718.112(2)(g) F.S.

719.106(1)(k) F.S.

Legislative Update 2022

22 of 33

Structural Integrity Reserve Studies – Cont.

An association that currently exists on or before July 1, 2022, that is controlled by unit owners must have a structural integrity reserve study competed by December 31, 2024.

If an association fails to complete a structural integrity reserve study, that failure is a breach of an officer’s and director’s fiduciary relationship to the unit owners under 718.111(1) F.S.

The Division of Condominiums, Timeshares, and Mobile Homes has jurisdiction to handle complaints filed against an association for failing to meet its obligations under 553.899. F.S. or procuring a structural integrity reserve study.

718.112(2)(g) F.S.

719.106(1)(k) F.S.

Legislative Update 2022

23 of 33

OFFICIAL RECORDS

Legislative Update 2022

24 of 33

Official �Records

Structural Integrity Reserve Studies are considered an official record and must be maintained for at least 15 years after the study is complete.

A copy of the milestone inspection report, all subsequent reports of the same nature (10-year reports), and any other inspection report relating to a structural or life safety inspection of the association property are considered official records of the association and must be maintained for at least 15 years after the study is complete.

718.111(12)(a) F.S.

719.104(2)(a) F.S.

Legislative Update 2022

25 of 33

Official�Records �Continued

Renters are entitled to inspect and copy the declaration, bylaws, rules and inspection reports.

Websites:

If the condominium has over 150 units and must maintain a website:

the inspection reports, including any reports relating to structural or life safety inspections must be posted on the website.

The association's most recent structural integrity reserve study.

Legislative Update 2022

26 of 33

MONETARY/BUDGETARY MATTERS

Legislative Update 2022

27 of 33

Annual Budgets

The proposed annual budget must include the most recent structural integrity reserve study as prepared by the inspector.

Effective December 31, 2024, the members of a unit owner-controlled association may not waive or provide for the funding of reduced reserves than required for the structural integrity reserve study.

Legislative Update 2022

28 of 33

DEVELOPERS

Before a developer turns over control of an association to the unit owners, the developer must have a structural integrity reserve study completed for each building on the association property that is three stories or higher.

Developers must also perform a milestone inspection report in compliance with 553.899 F.S.

These reports and studies must be turned over by the developer turning turnover.

Legislative Update 2022

29 of 33

Division of Florida Condominium, Timeshares, and Mobile Homes

On or before January 1, 2023, condominium and cooperative associations existing on or before July 1, 2022, must provide the following information to the Division in writing and the physical or e-mail address provided by the Division:

The number of buildings on the association property that are three stories or higher in height

The total number of units in all such buildings

The addresses of all such buildings

The counties in which the buildings are located

718.501(3)(a) F.S.

719.501(3)(a) F.S.

Legislative Update 2022

30 of 33

Division of Florida Condominium, Timeshares, and Mobile Homes

The Division shall compile a list of all associations that must disclose information under this provision and post the list with the same information on the Division’s website.

Associations must provide an update in writing to the Division if there are any changes in the disclosed information within 6 months of the change occurring.

718.501(3)(b) F.S.

719.501(3)(b) F.S.

Legislative Update 2022

31 of 33

Roof Repair, Replacement� & �Recover

If 25% or more of a roofing system or roof section is being repaired, replaced, or recovered:

Only that portion of the roofing system or roofing section needs to be constructed in accordance with the current Florida Building Code in effect at the time the work takes place.

553.844(5)F.S.

Changes the current system that restricts work to no more than 25% of the total roofing system or roof section on any existing structure being repaired, replaced or recovered in any 12-month period unless the entire roofing system or roof section conforms to current requirements of the Florida Building Code.

Legislative Update 2022

32 of 33

Q & A

Legislative Update 2022

33 of 33

PRESENTATION AVAILABLE BY

EMAIL REQUEST

info@gadclaw.com

Legislative Update 2022