New Florida Condo Law

Started by MichaelS56 • 6 replies • 254 views

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MichaelS56 (Minnesota)
Posts: 859

Posted:

It is my understanding that the Florida legislature passed a law requiring condos to have an engineering study done and implemented for building above a certain height. The question I have is, what are some of the typical Special Assessments that condo owners are now required to pay?

This type of law could get the attention of other legislatures.

LoriM15 (Florida)
Posts: 1,009

Posted:

I don't think there is a typical special assessment. The engineering study is expensive and then you have to start funding your reserves. And it's not just the over three stories condos that have the reserve requirement. There are just so many factors involved - was there ever any reserve funding, how old the condos are, when the replacement date for the components are, etc. There's no way to make a guess at a typical assessment.

We have had quite a few discussions here about huge special assessments for Florida condos. The condo market, at least in high rises near the water, is crashing.

I think the new law about not waiving reserves and working toward full funding is more likely to catch on with other states than the engineering one, which is really aimed at the high rises near the ocean that are aging.

DouglasK1 (Florida)
Posts: 2,046

Posted:

Just search for news articles regarding Florida Condo Assessments and you'll find at least dozens of articles on the fallout already, and this is just the tip of the iceberg. Here are a couple to get you started:
https://www.local10.com/news/local/2024/06/21/going-to-go-broke-condo-owners-hit-with-6-figure-assessments-thanks-to-new-florida-law/
https://moneywise.com/a/ch-aol/south-florida-condo-owners-are-dumping-their-homes-after-getting-slapped-with-six-figure-special-assessments_1720259479826?utm_source=syn_msna_mon&utm_medium=Z&utm_campaign=58184&utm_cmsna_mon_58184

Escaped former treasurer and director of a self managed association.

SheliaH (Indiana)
Posts: 6,964

Posted:

Didn't you ask this question last month?

If it is not right do not do it; if it is not true do not say it. Marcus Aurelius

KerryL1 (California)
Posts: 14,550

Posted:

Just as reference, Cali has NO mandatory funding for reserves. It does have statute that requires a study be done annually and an onsite visit by an RS every 3 years.

Calif., in about 2020, maybe '19, passed legislation that beginning, maybe this year, a sample of all "elevated structures" in an HOA that contain wood must be inspected, by a structural engineer (??) and certified. These are typical balconies, decks, elevated walkways. After this initial inspection, same must be done again in x years (9?) I know this is sketchy, but just a clue that this type of requirement will, yeah,* become more common.

* My salute to the Tour de France riders who, no matter their national origin, punctuate their interviw sentences, frequently with "yeah." If you like to travel in France, check out Peacock..It'll end in Nice in about a week.

CathyA3 (Ohio)
Posts: 6,299

Posted:

I agree that similar laws will catch on as condo buildings age - and states with particular environmental challenges will see it sooner.

My state's laws already require condo associations to set aside money sufficient to repair and replace major components without resorting to special assessments. Unfortunately, the membership can waive this requirement via an annual vote (simple majority approval). This doesn't accomplish anything other than allowing the board to point out that the membership did this to themselves when it's time to pay the piper. It also doesn't address the problem of a board reducing the annual reserve contribution without getting membership approval.

There's another problem: reserve funds tend to "leak". Boards may tap them to pay for operating expenses and not repay the money. And there's another, less obvious drain on the funds: the last reserve study defined a reserve component as one that's over a certain dollar amount, and board taps the reserve for repairs under that amount. I suspect this last one happens a lot, even among otherwise responsible boards who are then puzzled why the reserves aren't where they were projected to be.

TamaraG7 (Florida)
Posts: 35

Posted:

Quote:

Posted By MichaelS56 on 07/14/2024 4:41 PM
It is my understanding that the Florida legislature passed a law requiring condos to have an engineering study done and implemented for building above a certain height. The question I have is, what are some of the typical Special Assessments that condo owners are now required to pay?

This type of law could get the attention of other legislatures.

That law passed last year & currently is in place for buildings over 30 years old; it's called a Milestone study & along with that is required SIRS (structural integrity study).
Any building three (3) stories and more within three (3) miles from the coastline and/or depending on county requirements is included. If the condominium has parking under the building, that counts as one story.

Many associations that haven't fully funded may need special assessments to rectify deferred maintenance.

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