In May 2022, Florida ushered in a significant shift in the condominium landscape with the passing of Senate Bill SB 4-D. This comprehensive legislation mandates structural and milestone inspections for all condominium buildings that are three stories or higher. The goal is to ensure the safety, integrity, and longevity of these residential structures, setting a new standard for condominium living across the state.
Key Provisions of SB 4-D
The legislation comes with several key provisions that condominium associations must adhere to:
- Structural Integrity Reserve Studies and Funds:
- Condo associations are now required to collect and maintain structural integrity reserve studies and funds. This proactive measure aims to anticipate and cover the costs of major repairs, ensuring the ongoing stability of the condominium.
- Reserve Funding Protection:
- The law prohibits condo associations from reducing or waiving funding of reserves. This safeguard ensures that the financial resources necessary for structural maintenance and repairs remain intact.
- Preventative Maintenance Mandate:
- Condo associations are obligated to perform preventative maintenance. This proactive approach helps identify and address potential issues before they escalate, contributing to the overall well-being of the condominium community.
Mandatory Structural Inspections
The new law introduces mandatory structural inspections for condominium buildings meeting specific criteria:
- Buildings Over 30 Years Old:
- All condominium buildings three or more stories in height and at least 30 years old are required to undergo structural inspections.
- Additional Requirements for Coastal Areas:
- Condo buildings over 30 years old (or 25 years old if within 3 miles of the coast) will require new structural inspections.
- Periodic Inspections:
- Regular inspections by a licensed engineer or architect are mandated when buildings reach 25 years of age and for those located more than 3 miles inland at 30 years.
Condo Living in Florida: What to Expect in 2025
Come 2025, Florida’s condo landscape is set to undergo a transformative change. The new state law will compel condo boards of buildings three stories or higher to allocate funds specifically for major repairs. This financial preparation is not for cosmetic enhancements like new carpets, paint, or lobby upgrades; instead, it focuses on ensuring that there are ample resources to address critical structural issues that may arise in the future.
Potential Impact on Condo Fees
In my opinion, these changes may have a significant impact on condo fees. With the need to set aside funds for major repairs, it’s conceivable that condo fees could see a notable increase. In many cases, I anticipate that condo fees might even triple as associations strive to meet the financial obligations imposed by the new legislation.
The Real Estate Landscape: Potential Decline in Condo Prices
In light of these changes, it’s crucial to acknowledge that cities such as Surfside Beach, Sunny Isles, and Miami Beach may witness a notable decline in condo prices. The increased financial burden placed on condo associations, coupled with potential higher condo fees, could contribute to a shift in the real estate market dynamics. Prospective buyers and current property owners should stay vigilant, considering these evolving factors when navigating the real estate landscape in these sought-after Florida cities.
As we approach 2025, residents, property owners, and condo associations alike will need to navigate these changes and adapt to the evolving landscape of condominium living in Florida. While these measures are aimed at enhancing the safety and longevity of condominiums, the potential impact on condo prices underscores the importance of careful planning and transparent communication within condo communities.