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Condo HOA Loans / Your Trusted Community Association Financial Resource

Condo HOA Loans / Your Trusted Community Association Financial Resource

  • Posted: Oct 17, 2022
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Condo HOA Loans

Your Trusted Community Association Financial Resource

 

 

Don’t go it alone. Whether your Community requires Conventional or Private Lending, CondoHOALoans can assist you in obtaining the necessary funds for Projects, Reserves, or Cash Flow.

When your Community Association works with our Law Firm to facilitate and secure financing, your Community will also have the optional benefit of receiving 100% FREE Delinquent Account Collection Services.

Not sure if financing is right for your Association? Download the Association Funding Options Infographic and take our Free Financial Health Survey to find out.

Click on the Ad below and Download the pdf.

 

 

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Prepare for Hurricane Ian Homeowners & Property Owners Preparedness Tips: by Cohen Law Group

Prepare for Hurricane Ian Homeowners & Property Owners Preparedness Tips: by Cohen Law Group

  • Posted: Sep 27, 2022
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It is extremely important for you to have records of your property’s condition in the event that you need to file a claim with your insurance company.

Click Here For The Homeowners Guide To Storm Damage

Before The Storm:

  • Take photos of your property- Interior of Home, Exterior of Home, Roof, Pool and Pool Area, Fencing, Trees, Front Yard, Back Yard.
  • If you are not able to take photos before a storm, collect the most recent photos you have taken of your property.
  • Document belongings- with proper documentation, you may also be able to recover lost expenses for home contents, personal property, and other items. Here is a list of some items to consider keeping receipts for or appraising: Televisions, Furniture, Jewelry, Artwork, Appliances, Computers, Antiques, Beds, Decks, Other Electronic Equipment
  • Know what is in your homeowner’s insurance policy.
  • Have records of your property’s condition in the event that you need to file a claim with your insurance company.
  • Review your mold coverage.
  • Review your flood coverage. This is normally separate insurance policy.
  • Ask your insurance agent about coverage for water damage, law and ordinance, debris removal, and additional living expenses.
  • Check your hurricane deductible, it can be much higher than your regular deductible.
  • Have a plan to move yourself and your family – especially those with special needs.
  • Have a portable radio, TV or NOAA Weather Radio on hand to monitor important information.
  • Homeowners who depend on well water should draw an emergency supply.
  • Get cash or travelers checks in case banks or ATMs are not operational.
  • Ensure all your electronic/mobile devices are fully charged.
  • Gather important documentation and place in waterproof container.
  • Make arrangements for pets; emergency shelters may not let you bring your animals with you.
  • Find out where the nearest shelter is located and the routes to get there.
  • Fill your automobile(s) with gas or ensure your electric vehicle is charged.
  • If you have an emergency power source, learn how to use it properly.

After The Storm:

  • When it is safe to do so, photograph your property’s: Interior, Exterior, and Roof
  • Consult with an attorney experienced in handling insurance claims before giving any recorded statements or meeting with an adjuster assigned to the claim.
  • Call the insurance carrier and timely report the claim.
  • Homeowners should obtain an inspection by a qualified contractor and/or roofer to assess whether the hurricane force winds have damaged or diminished the roofing system and building envelope.
  • Take photos and record the questions and answers when talking to adjusters.
  • Make sure to keep track of the name and number of every person you talk to at your insurance company.
  • Check your Co-Insurance penalties.
  • Make a copy of the insurance policy and keep it in a safe place.
  • Check your policy coverages and sublimits.
  • Just because water has not began to enter the structure does not mean that there is not damage to their property.
  • We have seen too many homeowner claims where an engineer is hired months after the storm and the engineer states the damage preexisted the hurricane.
  • For more information about the work we do with insurance claims, Click Here.

Business Owners Preparedness Tips:

Click Here For The Large Loss Guide To Storm Damage

  • Businesses should pay close attention to the storm’s forecast over the weekend. The National Hurricane Center releases a new full advisory every 6 hours, at 5am, 11am, 5pm and 11pm EDT. They are issuing intermediate advisories every 3 hours, between the full advisories (1am, 8am, 1pm, 8pm EDT.)
  • During this time, it’s important to review your disaster and emergency communication plan.
  • Backup all data on servers and personal computers and ensure remote access is available.
  • Ensure your equipment is raised above potential flood levels.
  • Review your insurance policies to mitigate any possible gaps in coverage.
  • Protect and duplicate important business documents and records. Be sure they are accessible from anywhere.

For More Information Click The Link Below:

http://itsaboutjustice.law/hurricane-preparedness/

 

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Things work better when everyone understands their role! by Royal Management Services

Things work better when everyone understands their role! by Royal Management Services

  • Posted: Sep 27, 2022
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Things work better when everyone understands their role! Like the King his Court all the way down to the Serf’s and Vassals when each knows where they stand things work better.

CONDOMINIUM, COOP & HOME OWNERS ASSOCIATION MANAGEMENT

Royale Management Services, Inc. is a full-service, Condo Association Management (CAM) licensed, residential property management company, specializing in management, consulting and accounting for Condominium Associations and Home Owners Associations in South Florida: Broward, Dade & Palm Beach County.

We provide the highest quality, most cost effective management services your community and homeowners will find anywhere.

Accounting & Bookkeeping
Financial Management
Property Management
Web Services

Royale Management Services, Inc. has been serving South Florida since 1984. The company was founded to provide high quality management and accounting services for business and individuals, Royale Management Services, Inc. expanded to the Community Association and Home Owner’s Association Management business in 2000.

Our team members are highly trained in all aspects of community association management and customer service.

We take pride in delivering property management services that work!

Royale Management Services, Inc.
2319 N Andrews Avenue
Fort Lauderdale, FL 33311

Phone: (954) 563-1269
Toll Free: (800) 382-1040
Fax: (954) 563-2153

Email: cam@rmsaccounting.com

Members of SFPMA – View our Membership Page.

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It is essential for condominium associations to ensure that their buildings are in compliance with the requirements of the Florida Fire Prevention Code

It is essential for condominium associations to ensure that their buildings are in compliance with the requirements of the Florida Fire Prevention Code

  • Posted: Sep 22, 2022
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It is essential for condominium associations to ensure that their buildings are in compliance with the requirements of the Florida Fire Prevention Code

It is essential for condominium associations to ensure that their buildings are in compliance with the requirements of the Florida Fire Prevention Code (the “Fire Code”). For the safety of all residents, associations must ensure they stay up to date with the latest and greatest in fire safety provisions. One of these essential safety features is a requirement that systems be built into new and existing buildings to ensure that first responders’ radios will work throughout buildings in an emergency situation. Pursuant to Section 11.10.1 of the Fire Code, “in all new and existing buildings, minimum radio signal strength for fire department communications shall be maintained at a level determined by the AJH [the authority having jurisdiction]. Additionally, Section 11.10.2. provides that where required by the authority having jurisdiction, two-way radio communication enhancement systems must comply with the requirements of the Fire Code.

When originally adopted, the requirements of Sections 11.10.1 and 11.10.2 of the Fire Code applied only to new buildings, so the requirement was not a burden on existing buildings. However, in 2013, the Fire Code was updated as set out above to provide that all new and existing buildings must maintain adequate fire department radio signal strength inside the building. This new requirement applied to all buildings and did not provide a grace period. This posed a significant problem for many high-rise condominiums, as the installation of the necessary equipment involves opening walls and ceilings and can be quite costly to the association. The cost of such installation was a substantial burden to condominiums, not expecting to be required to install same, and therefore never budgeted for the installation.

Recognizing the problem, in 2016 the Florida Legislature adopted section 633.202(18), Florida Statutes, which provided a grace period for high-rise buildings. Existing high-rise buildings were not required to comply with minimum radio strength for fire department communications until January 1, 2022. You may be thinking, “that date is passed”, but do not panic. If your condominium has not yet complied with the requirements, have no fear. The 2021 Florida Legislature amended section 633.202(18), Florida Statutes, to provide another extension for compliance.

In accordance with the newly amended statute, existing high-rise buildings now have until January 1, 2025 to come into compliance with the requirements. However, the association must apply for an appropriate permit for the required installation by January 1, 2024. More specifically, section 633.202(18), Florida Statutes, is amended to provide, in pertinent part, that:

The authority having jurisdiction shall determine the minimum radio signal strength for fire department communications in all new high-rise and existing high-rise buildings. Existing buildings are not required to comply with minimum radio strength for fire department communications and two-way radio system enhancement communications as required by the Florida Fire Prevention Code until January 1, 2025. However, by January 1, 2024, an existing building that is not in compliance with the requirements for minimum radio strength for fire department communications must apply for an appropriate permit for the required installation with the local government agency having jurisdiction and must demonstrate that the building will become compliance by January 1, 2025. Existing apartment buildings are not required to comply until January 1, 2025…

Therefore, all existing high-rise buildings must come into compliance by January 1, 2025. It is important to note that this time extension applies only to high-rise buildings. By way of over simplification, it does not apply to buildings less than 75 feet tall (the measurement can be tricky, so if your building is close to 75 feet check with your association attorney regarding this measurement). In 2018, the Florida Department of Financial Services, Division of State Fire Marshal issued a Declaratory Statement finding that section 633.202(18), Florida Statutes does not apply to the enforcement of Section 11.10 of the Fire Code to buildings under 75 feet in height. Therefore, if your building is less than 75 feet in height, it is required to comply with the radio signal strength required by the authority having jurisdiction at this time.

In light of the foregoing, it is essential that your association take action to determine whether sufficient fire department radio signal exists in your building. The minimum requirements may differ by jurisdiction, and we recommend the association reach out to the local fire code official to determine the requirements for your jurisdiction. If sufficient signal does not exist in your building, it is essential to prepare a plan (including design, permits, financing, etc.) to ensure that your building will comply by the deadline of January 1, 2025.

The law firm of Kaye Bender Rembaum, with its 20 lawyers and offices in Broward, Palm Beach and Hillsborough Counties, is a full service law firm devoted to the representation of more than 1,200 community and commercial associations, developers, and their members throughout the State of Florida. Under the direction of attorneys Robert L. Kaye, Michael S. Bender and Jeffrey A. Rembaum, the law firm of Kaye Bender Rembaum strives to provide its clients with an unparalleled level of personalized and professional service that takes into account their clients’ individual needs and financial concerns.

The Firm is ranked ninth in South Florida and 62nd in the Southern U.S. among “Top 300 Small Businesses” by Business Leader magazine.


Safety is on the minds of every Building owner from Fire sprinklers, Extinguishers, Monitoring, Alarms and Testing and system certification. 

Find Top Companies for your buildings Fire Sprinkler and Equipment

HOW TO KEEP MONTHLY ASSOCIATION MAINTENANCE FEES LOW

HOW TO KEEP MONTHLY ASSOCIATION MAINTENANCE FEES LOW

  • Posted: Sep 22, 2022
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HOW TO KEEP MONTHLY ASSOCIATION MAINTENANCE FEES LOW

by Enrolled Agent Steven J. Weil, Ph.D., EA, LCAM, Royale Management Services, Inc.

The answer to keeping association maintenance fees low is NOT to defer necessary maintenance or waiving reserves.  To keep postponing repairs is an act of sheer folly.  It is simply an artificial way to keep maintenance fees low that often backfires when the piper finally has to be paid by a special assessment.

The only thing owners hate more than a maintenance fee increase is a special assessment that becomes necessary because the budget does not adequately cover the ongoing operating and maintenance costs.

As a reminder, there are two parts to every budget: the operating budget and the reserve budget.

  • The operating budget should include all necessary regular and recurring expenses that are expected in the coming year, no matter how large or small, such as repairs, maintenance, up keep, payroll, utilities, supplies, insurance and administrative costs.
  • The reserves are designed to accumulate funds for replacement and renovation of major building systems and components that wear out over time. Statutes make it mandatory that reserve budgets include estimated expenditures for roof replacement, building painting and pavement resurfacing at a minimum.

What should go into a reserve budget?  Aside from what the law requires, a good reserve budget also covers other large capital items that will wear out and need to be replaced over the life of the association, such as elevators, windows, common area air conditioners, docks, generators, balconies, et al.  Other common area reserve items might include a pool upgrade, clubhouse renovation, landscaping and other amenities.

The tricky part of the budgeting process is to balance what is required with the often competing interests of those who want the lowest possible maintenance increase with those who are willing to pay more for better services, better amenities or other improvements.   The board is charged with the upkeep maintenance and operation of the association and amenities as provided for in the governing documents. Any change to what is provided for in the governing documents should be approved by an owner vote. This includes both increases and decreases in services and changes to facilities.

Projected estimates for the reserve budget should take into consideration the cost to replace each item, prorated over the years of its estimated life.

A common mistake in estimating this value is the failure to take into account the rise in replacement costs that occurs over time.  Cost estimates as well as remaining useful life should be evaluated annually. Reserve planning can be done with the assistance of association vendors, or a professional engineer could be hired to perform a Reserve Study.

Some of the costs of running an association can be managed.  Controllable expenses — those over which the board and or management have some control as to the amount and timing — include accounting, bank fees, repairs, supplies, office expense, labor costs, preventive maintenance, management, legal, landscaping and janitorial.

Over the years, however, non-controllable expenses have become the largest part of most association budgets.  They include utilities, contract services, electric, water, garbage, cable, loan payments, licenses, fees and insurance (property, liability, wind and Directors & Officers). Although boards and management work hard to keep these costs as low as possible, it is often difficult or even impossible to get competitive bids for such items as insurance. The costs of utilities and water are often controlled by monopolies or governments; and while conservation can help, it does not eliminate or substantially reduce these costs in the short run. Long term contracts may also lock in such things as elevator maintenance costs, cable TV, and other expenses.

In addition to the increases in these expenses, over the years as association property ages, the cost of maintaining it increases. While putting off maintenance may help cash flow and reduce expenses today, it also means that those expenses will be higher down the road.

Reserve funds cannot be used for purposes other than those intended without a majority vote of approval by the owners in advance. Thus, there is sometimes a reluctance to list in the reserve budget certain capital items that might be considered non-essential and could be postponed.  This can be a mistake, forcing a special assessment when these capital items need to be replaced.

It’s best to keep in mind that one good way to maintain property values is to ensure that the association has a reserve budget that covers necessary renovation and replacement of major components and assets and that the reserve budget is properly reviewed and funded each year.  Under Florida law, condominium associations are required to include a “fully funded” reserve schedule in the proposed budget and to fully fund reserves unless they are waived or reduced by a vote of the owners.

 

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Roof Maxx of N Fort Lauderdale, FL

Roof Maxx of N Fort Lauderdale, FL

  • Posted: Sep 22, 2022
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Roof Maxx of N Fort Lauderdale, FL

Contact Mark at (954) 493-0003 or mcucharale@roofmaxx.com

The daily beating of the sun on an asphalt shingle roof bakes at a quicker rate than the same roof type in northern states. I want my customers to understand that the demise of this asphalt shingles is “dry” and “brittleness.” The best and easiest way to explain it to you is the “burnt toast” analogy. If you take a fresh slice of bread and leave it in the toaster for too long, it will come out black and burnt. If you bend it, it will crunch or break in half. Now if you spread butter on that same piece of toast and let it sit for 20-30 minutes, you would be able to bend it without breaking in half. Very simple to understand. This is the condition of your asphalt shingle. You will pay more money for a roof replacement, more frequently, because less asphalt is used in the shingle.
Insurance has been difficult with homeowners here in the Tri-County area and it was tougher to sell the service here because of that. Now that SB-2D was passed into law (May 2022) by the Florida state legislators, we now have a much better opportunity to help those older roofs qualify for at least FIVE more years of life (if not longer), thus helping those property owners save their money and their roofs.
We won’t do repairs because of our limits with state licensing, but we offer minor maintenance, such as painting rusted vents, caulking some exposed nail heads, which are common, or replacing a missing shingle tab or two. This roof tune-up is a $499 value, usually done as a courtesy if a Roof Maxx treatment is done with us. We also offer discounts on such things as seniors, veterans and civil employees (like police and fire or first responders). We also give discounts to repeat customers and discounts base on volume (like commercial jobs).
Contact Mark at (954) 493-0003 or mcucharale@roofmaxx.com
View our Members Page on sfpma.
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How The State and Federal Government Regulates Collections by Axela Tech

How The State and Federal Government Regulates Collections by Axela Tech

  • Posted: Sep 20, 2022
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How The State and Federal Government Regulates Collections

While every state must follow federal regulations, most states have additional laws that regulate how debt collectors interact with consumers, and may also regulate collections specifically when dealing with common interest developments. Use the map below to access the complete guide to your state. We lay out the relevant laws, explain them in plain English, and answer your questions on how your state regulates community association collections.

 

Choose Your State:

HOA and Condo Delinquency Collection For Community Associations.

We are a specialized collections service which means a great deal in the community association industry. Understanding the nuances of how people fall behind in their maintenance fee payments and how to resolve their issues is a science and an art. At Axela Technologies we have what it takes to “move the needle” and recover 100% of what is owed to the association and the best part is that we are totally merit based. IF WE DON’T RECOVER YOUR MONEY WE DON’T GET PAID. A pretty simple concept but a bold promise at the same time.

Our proprietary software is second to none and we have the ability to keep the management and board of directors informed in real time 24/7. Our system never sleeps. The technology is fantastic and is only equaled by the people who will service your delinquent members and work with them to resolve their delinquency issues.

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Schedule Your Fall Fish Stocking Discover the benefits of professional fall fish stocking and how to set your fishery up for success.

Schedule Your Fall Fish Stocking Discover the benefits of professional fall fish stocking and how to set your fishery up for success.

  • Posted: Sep 18, 2022
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Schedule Your Fall Fish Stocking

Discover the benefits of professional fall fish stocking and how to set your fishery up for success.

Are you ready to build a community fishery or grow trophy fish in your private lake? Fish stocking is an important step of fisheries management. Fall is an excellent time to stock your lake. Learn how strategic fish stocking can help you build your dream fishery!

BOOK YOUR FISH STOCKING

Why a Professional Is Needed for Fish Stocking

A diverse and productive fish population is essential to creating an ecologically balanced lake or pond. Fish stocking has clear benefits – from plant and mosquito management to exciting fishing opportunities – but many property owners are unaware of the sheer number of fish species to choose from, making it very easy to get confused.

There is more to fish stocking than the act of adding fish to a pond. Rushing the process by stocking the wrong fish, or doing so at the wrong time, can result in unhealthy population conditions and ecosystems. A key part of lake and pond management is making sure the fish population is well-balanced and best equipped to help achieve your specific goals for the aquatic ecosystem. That’s where a professional comes in.

Each body of water is different, so there are no one-size-fits-all solutions. A customized plan created by experts will ensure that your lake or pond has the right fish population to endure its health and your continued enjoyment. Based on the state of the ecosystem in your lake or pond, a professional will recommend whether or not you should add fish, what species are best suited for your waterbody, what time of year to stock, and how many.

SOLitude Lake Management | Proudly Serving Clients Nationwide

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There is nothing like mosquito bites or midges to take the fun outdoor activities!  Before mosquito’s or midges “BUG” you, contact Allstate Resource Management

There is nothing like mosquito bites or midges to take the fun outdoor activities! Before mosquito’s or midges “BUG” you, contact Allstate Resource Management

  • Posted: Sep 18, 2022
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Mosquitos or Midges BUGGING you?

Allstate Resource Management offers full-service larvicide spraying and/or briquette treatments to attack the insect’s breeding ground. We can also stock lakes and ponds with mosquitofish which is a long-term biological control method that is also environmentally sensitive.
There is nothing like mosquito bites or midges to take
the fun outdoor activities!
Before mosquitos or midges “BUG” you, contact us at:
Direct: 954-382-9766 or info@allstatemanagement.com
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Mandatory Condominium & Cooperative Building Inspections and Non-Waivable Reserve Requirements

Mandatory Condominium & Cooperative Building Inspections and Non-Waivable Reserve Requirements

  • Posted: Sep 13, 2022
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Mandatory Condominium & Cooperative Building Inspections and Non-Waivable Reserve Requirements

by Kaye, Bender, Rembaum KBRLegal.com

With home insurers leaving Florida in droves, and following pressure from members of both political parties in the legislature to actually do something about it, in May 2022, the governor called a special legislative session to address the problem. A very real concern to the insurers is the effect of both time and inclement weather on Florida’s aging high-rise buildings. Until now, and for the most part, Florida law largely ignored these concerns. Enter Senate Bill 4-D (SB 4-D), which already became effective upon being signed into law by Governor DeSantis on May 26, 2022. This new piece of legislation addresses condominium and cooperative building inspections and reserve requirements. (While this article primarily addresses these new laws in the context of condominium association application, they are equally applicable to cooperative associations.)

By way of background, during the regular legislative session, there were several bills introduced in the Florida House of Representatives and in the Florida Senate addressing building safety issues, but none of them were passed into law due to the inability to match the language of the bills in both the house and the senate which is a requirement for legislation to pass and go to the governor for consideration. As such, it was a little surprising to many observers that the legislature was able to approve SB 4-D in essentially a 48-hour window during the special session in May. The language used in SB 4-D was initially drafted into a proposed bill in November 2021. At that time and during the most recent legislative session, input was provided by many industry professional groups including engineers, reserve study providers, and association attorneys. Many of these industry professionals indicated that there were challenges with some of the language and concepts being proposed in SB 4-D during session.

Notwithstanding these challenges and in an effort to ensure some form of life safety legislation was passed this year, SB 4-D was unanimously approved in both the house and senate and signed by the governor. A plain reading of this well-intended, but in some instances not completely thought-out, legislation evidences these challenges. Some will say it is a good start that will need significant tweaking, which is expected in the 2023 legislative session. Others praise it, and, yet others say it is an overreach of governmental authority, such as an inability to waive or reduce certain categories of reserves. You be the judge. We begin by examining the mandatory inspection and reserve requirements of SB 4-D.

 

I. Milestone Inspections: Mandatory Structural Inspections For Condominium and Cooperative Buildings. (§553.899, Fla. Stat.)

You will not find these new milestone inspection requirements in Chapters 718 or 719 of the Florida Statutes, but rather in Chapter 553, Florida Statutes, as cited above.

Milestone Inspections

The term “milestone inspection” means a structural inspection of a building, including an inspection of load-bearing walls and the primary structural members and primary structural systems. The aforementioned terms are defined in §627.706, Florida Statutes, and are to be carried out by a licensed architect or engineer authorized to practice in this state for the purposes of attesting to the life safety and adequacy of the structural components of the building and, to the extent reasonably possible, determining the general structural condition of the building as it affects the safety of such building, including a determination of any necessary maintenance, repair, or replacement of any structural component of the building. The purpose of such an inspection is not to determine if the condition of an existing building is in compliance with the Florida Building Code or the fire safety code.

Substantial Structural Deterioration

The term “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 licensed engineer or architect performing the phase one or phase two inspection determines that such surface imperfections are a sign of substantial structural deterioration.

Milestone Inspections For Buildings Three Stories or More In Height

A condominium association under Chapter 718 and a cooperative association under Chapter 719 must have a milestone inspection performed for each building that is three stories or more in height by December 31 of the year in which the building reaches 30 years of age, based on the date the certificate of occupancy for the building was issued, and every 10 years thereafter.

Within Three Miles of Coastline

If the building is three or more stories in height and is located within three miles of a coastline, the condominium association or cooperative association must have a milestone inspection performed by December 31 of the year in which the building reaches 25 years of age, based on the date the certificate of occupancy for the building was issued, and every 10 years thereafter.

The condominium association or cooperative association must arrange for the milestone inspection to be performed and is responsible for ensuring compliance.

The condominium association or cooperative association is responsible for all costs associated with the inspection.

If The Certificate of Occupancy was Issued Before July 1, 1992

If a milestone inspection is required under this statute and the building’s certificate of occupancy was issued on or before July 1, 1992, the building’s initial milestone inspection must be performed before December 31, 2024. If the date of issuance for the certificate of occupancy is not available, the date of issuance of the building’s certificate of occupancy shall be the date of occupancy evidenced in any record of the local building official.

Upon determining that a building must have a milestone inspection, the local enforcement agency must provide written notice of such required inspection to the condominium association or cooperative association by certified mail, return receipt requested.

Within 180 days after receiving the written notice, the condominium association or cooperative association must complete phase one of the milestone inspection. For purposes of this section, completion of phase one of the milestone inspection means the licensed engineer or architect who performed the phase one inspection submitted the inspection report by email, United States Postal Service, or commercial delivery service to the local enforcement agency.

A Milestone Inspection Consists of Two Phases

(a) PHASE 1—For phase one of the milestone inspection, a licensed architect or engineer authorized to practice in this state must perform a visual examination of habitable and non-habitable areas of a building, including the major structural components of a building, and provide a qualitative assessment of the structural conditions of the building. If the architect or engineer finds no signs of substantial structural deterioration to any building components under visual examination, phase two of the inspection (discussed below) is not required. An architect or engineer who completes a phase one milestone inspection shall prepare and submit an inspection report.

(b) PHASE 2—A phase two of the milestone inspection must be performed if any substantial structural deterioration is identified during phase one. A phase two inspection may involve destructive or nondestructive testing at the inspector’s direction. The inspection may be as extensive or as 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 and to recommend a program for fully assessing and repairing distressed and damaged portions of the building. When determining testing locations, the inspector must give preference to locations that are the least disruptive and most easily repairable while still being representative of the structure. An inspector who completes a phase two milestone inspection must prepare and submit an inspection report.

Post-Milestone Inspection Requirements

Upon completion of a phase one or phase two milestone inspection, the architect or engineer who performed the inspection must submit a sealed copy of the inspection report with a separate summary of, at minimum, the material findings and recommendations in the inspection report to the condominium association or cooperative association, and to the building official of the local government which has jurisdiction. The inspection report must, at a minimum, meet all of the following criteria:

  1. Bear the seal and signature, or the electronic signature, of the licensed engineer or architect who performed the inspection.
  2. Indicate the manner and type of inspection forming the basis for the inspection report.
  3. Identify any substantial structural deterioration within a reasonable professional probability based on the scope of the inspection, describe the extent of such deterioration, and identify any recommended repairs for such deterioration.
  4. State whether unsafe or dangerous conditions, as those terms are defined in the Florida Building Code, were observed.
  5. Recommend any remedial or preventive repair for any items that are damaged but are not substantial structural deterioration.
  6. Identify and describe any items requiring further inspection.

Local Government Enforcement

A local enforcement agency may prescribe timelines and penalties with respect to compliance with the milestone inspection requirements.

A board of county commissioners may adopt an ordinance requiring that a condominium or cooperative association schedule or commence repairs for substantial structural deterioration within a specified timeframe after the local enforcement agency receives a phase two inspection report; however, such repairs must be commenced within 365 days after receiving such report. If an association fails to submit proof to the local enforcement agency that repairs have been scheduled or have commenced for substantial structural deterioration identified in a phase two inspection report within the required timeframe, the local enforcement agency must review and determine if the building is unsafe for human occupancy.

Board’s Duty After Obtaining The Milestone Report

Upon completion of a phase one or phase two milestone inspection and receipt of the inspector-prepared summary of the inspection report from the architect or engineer who performed the inspection, the association must distribute a copy of the inspector-prepared summary of the inspection report to each unit owner, regardless of the findings or recommendations in the report, by United States mail or personal delivery and by electronic transmission to unit owners who previously consented to receive notice by electronic transmission; must post a copy of the inspector-prepared summary in a conspicuous place on the condominium or cooperative property; and must publish the full report and inspector-prepared summary on the association’s website, if the association is required to have a website.

Who Pays for The Milestone Inspection?

Pursuant to §718.112, Florida Statutes, if an association is required to have a milestone inspection performed, the association must arrange for the milestone inspection to be performed and is responsible for ensuring compliance with all of the requirements thereof. The association is responsible for all costs associated with the inspection.

Failure to Obtain the Milestone Inspection

If the officers or directors of an association willfully and knowingly fail to have a milestone inspection performed pursuant to §553.899, Florida Statutes, such failure is a breach of the officers’ and directors’ fiduciary relationship to the unit owners.

Manager’s Duty

If a community association manager or a community association management firm has a contract with a community association that has a building on the association’s property that is subject to milestone inspection, the community association manager or the community association management firm must comply with the requirements of performing such inspection as directed by the board.

Exemptions

For clarity, the otherwise required milestone inspection does not apply to a single family, two-family, or three-family dwelling with three or fewer habitable stories above ground.

Florida Building Commission Requirements

The Florida Building Commission must review the milestone inspection requirements and make recommendations, if any, to the legislature to ensure inspections are sufficient to determine the structural integrity of a building. The commission must provide a written report of any recommendations to the governor, the president of the senate, and the speaker of the house of representatives by December 31, 2022.

The Florida Building Commission must consult with the State Fire Marshal to provide recommendations to the legislature for the adoption of comprehensive structural and life safety standards for maintaining and inspecting all types of buildings and structures in this state that are three stories or more in height. The commission must provide a written report of its recommendations to the governor, the president of the senate and the speaker of the house of representatives by December 31, 2023.

II. Structural Integrity Reserve Studies and Mandatory Reserves:

The reserve legislation set out in §718.112 (f)(2)(a), Florida Statutes, is, for all intents and purposes, re-written. Prior to examining these most recent revisions, it is necessary to first examine the definitions set out in §718.103, Florida Statutes, where a brand-new term is added as follows:

Structural integrity reserve study means 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 applicable to all condominiums and cooperative buildings 3 stories or higher. 

Hereafter, the structural integrity reserve study is referred to as “SIRS.” Now we can turn our attention to the requirements of the SIRS as set out in §718.112 (f)(2)(a), Florida Statutes.

The Structural Integrity Reserve Study (required for all condominium and cooperative buildings three stories or higher regardless of date of certificate of occupancy):

An association must have a SIRS completed at least every 10 years after the condominium’s creation for each building on the condominium property that is three stories or higher in height which includes, at a minimum, a study of the following items as related to the structural integrity and safety of the building:

  1. Roof
  2. Load-bearing walls or other primary structural members
  3. Floor
  4. Foundation
  5. Fireproofing and fire protection systems
  6. Plumbing
  7. Electrical systems
  8. Waterproofing and exterior painting
  9. Windows
  10. 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 in subparagraphs a.-i., as determined by the licensed engineer or architect performing the visual inspection portion of the structural integrity reserve study.

The SIRS may be performed by any person qualified to perform such study. However, the visual inspection portion of the structural integrity reserve study must be performed by an engineer licensed under Chapter 471 or an architect licensed under Chapter 481.

As further set out in the legislation, at a minimum, “a structural integrity reserve study must identify the common areas being visually inspected, state the estimated 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 visually inspected by the end of the estimated remaining useful life of each common area.”

The amount to be reserved for an item is determined by the association’s most recent structural integrity reserve study that must be completed by December 31, 2024. If the amount to be reserved for an item is not in the association’s initial or most recent structural integrity reserve study or the association has not completed a structural integrity reserve study, the amount must be computed using a formula based upon estimated remaining useful life and estimated replacement cost or deferred maintenance expense of each reserve item.

If the condominium building is less than three stories, then the legislation provides that “in addition to annual operating expenses, the budget must include reserve accounts for capital expenditures and deferred maintenance. These accounts must include, but are not limited to, roof replacement, building painting, and pavement resurfacing, regardless of the amount of deferred maintenance expense or replacement cost, and any other item that has a deferred maintenance expense or replacement cost that exceeds $10,000.”

The association may adjust replacement reserve assessments annually to take into account any changes in estimates or extension of the useful life of a reserve item caused by deferred maintenance.

If an association fails to complete a SIRS, such failure is a breach of an officer’s and director’s fiduciary relationship to the unit owners.

Non-Waivable and Waivable Reserves In The Unity Owner-Controlled Association

As to the SIRS, the legislation is patently clear that unit owners may not vote for no reserves or lesser reserves for items set forth in the SIRS report. There is ongoing debate among attorneys in regard to whether a condominium under three stories can waive or reduce reserves for any of the reserve items required to be in the SIRS that are included in the under- three-story condominium reserve—for example, roof and painting. (For those interested, examine lines 1029 to 1033 and 1050 to 1071 in SB 4-D.)

Mandatory Reserves In The Developer-Controlled Association

Before turnover of control of an association by a developer to unit owners other than a developer pursuant to §718.301, Florida Statutes, the developer-controlled association may not vote to waive the reserves or reduce the funding of the reserves. (Previously, a developer could fully waive all reserves for the first two years, meaning this is a monumental change.)

Pre-Turnover Developer Duty

Before a developer turns over control of an association to unit owners other than the developer, the developer must have a SIRS completed for each building on the condominium property that is three stories or higher in height.

III. Official Records

Official records of the condominium and cooperative association include structural integrity reserve studies, financial reports of the association or condominium, and a copy of the inspection reports and any other inspection report relating to a structural or life safety inspection of condominium or cooperative property.

In addition to the right to inspect and copy the declaration, bylaws, and rules, renters have the right to inspect the milestone inspection report and structural integrity reserve study inspection reports as well.

Structural integrity reserve studies must be maintained for at least 15 years after the study is completed. In addition, inspection reports and any other inspection report relating to a structural or life safety inspection of condominium property must be maintained for 15 years after receipt of such report.

IV. Association Websites

In addition to other positing requirements, the inspection reports described above and any other inspection report relating to a structural or life safety inspection of condominium property and the association’s most recent structural integrity reserve study must be posted to the website.

V. Jurisdiction of Division of Condominiums, Timeshares and Mobile Homes

Pre-turnover, the Division of Florida Condominiums, Timeshares, and Mobile Homes (Division) may enforce and ensure compliance with rules relating to the development, construction, sale, lease, ownership, operation, and management of residential condominium units, and complaints related to the procedural completion of milestone inspections. After turnover has occurred, the Division has jurisdiction to investigate complaints related only to financial issues, elections, and the maintenance of and unit owner access to association records, and the procedural completion of structural integrity reserve studies.

VI. New Reporting Requirements For All Condominium and Cooperative Associations

On or before January 1, 2023, condominium associations existing on or before July 1, 2022, must provide the following information to the Division in writing, by email, United States Postal Service, commercial delivery service, or hand delivery, at a physical address or email address provided by the division and on a form posted on the division’s website:

  1. The number of buildings on the condominium property that are three stories or higher in height.
  2. The total number of units in all such buildings.
  3. The addresses of all such buildings.
  4. The counties in which all such buildings are located.

An association must provide an update in writing to the division if there are any changes to the information in the list within six months after the change.

VII. Applicable To All Sellers of Units

As a part of the sales process, the seller of a condominium or cooperative unit and developers must provide to potential purchasers a copy of the inspector-prepared summary of the milestone inspection report and a copy of the association’s most recent structural integrity reserve study or a statement that the association has not completed a structural integrity reserve study.

VIII. Glitches

As with any new legislation of such a substantial nature, there often follow in subsequent years what are referred to as “glitch bills” which help provide additional clarity, remove ambiguity, and fix unintended errors. Some observe are (i) the term “common areas” is used in the legislation when in fact the correct term is “common element;” (ii) clarity needs to be provided regarding whether reserve items that are required to be in SIRS, but show up in the under-three-story reserves, such as paint and paving, can be waived or reduced by the membership; and (iii) for those buildings that are within three miles of the coastline, additional clarity could be provided to provide better guidance as to how to perform the measurement.

 

SFPMA: You can find this article on our Florida Building Inspections

 

Webinar: Bill SB-4D Has Passed – What Now? by KBR Legal

Webinar: Bill SB-4D Has Passed – What Now? by KBR Legal

  • Posted: Sep 13, 2022
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Educational webinar with emphasis on Structural Integrity, Reserves and Milestone Inspections

Date:  Sep 14, 2022

Please Register Now!

 


 

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