Condo safety law reflects well on lawmakers
It was the rarest of moments in Florida: The Legislature did something that almost certainly will improve life in this state.
We refer to the condominium safety bill (SB 4D) that lawmakers passed unanimously during last week’s special session and was signed into law by Gov. Ron DeSantis. Property insurance got top billing, but legislative leaders added this late as unfinished business from the regular session.
Republicans squandered weeks of precious legislative time on legally dubious solutions to imaginary problem while they delayed a response to the catastrophic collapse last June of the Champlain Towers South condo in Surfside.
Fortunately, the law is properly tough and comprehensive. Tallahassee could make it even better, but the first draft will help.
Inspection schedules
As of July 1, an inspection schedule takes effect for condo and cooperative buildings at least 30 years old. Within three miles of the coast, the standard is 25 years. Re-inspections must happen every 10 years after that.
Champlain Towers South was nearly 40 years old. At the time, only Miami-Dade and Broward counties had local inspection requirements, and they applied only to buildings at least 40 years old. If this new bill had been in place, those 98 victims likely would still be alive.
If inspectors determine that repairs are necessary, of course, a homeowners’ association must approve them. For years, Florida took the easy way out and foolishly allowed the associations to opt out of setting aside cash reserves to pay for repairs. Unit owners objected to the assessments.
The new bill addresses that problem. Starting Dec. 1, 2024, an association no longer can waive the requirement to collect reserves. The associations must collect enough money to pay for safety upgrades, and they can’t spend that reserve money for anything other than its intended purpose.
Sheer numbers explain why this bill is so important — and how broad its reach will be.
According to the Senate staff analysis, Florida has 1.53 million condo units. Roughly two million people live in condos that are at least 30 years old. Nearly 600,000 units are at least 40 years old.
Under the new law, an architect or engineer must inspect all affected buildings. If there is “substantial deterioration,” testing must determine whether repairs are necessary. Associations must present a repair plan and schedule. Counties can condemn a building if a condo board stalls on repairs.
Timely reforms
The overdue state law is timely not only because of the Surfside collapse. Rising seas present a new threat to coastal buildings. A Florida International University study found that problems from rising waters more than doubled over the last 20 years.
Randall Parkinson worked on that study.
Before Surfside, the South Florida coastal geologist told the Palm Beach Post, “Our primary focus was on a relatively narrow field of future above-ground conditions and related risks. Now we must also consider existing and future below-ground conditions and climate-related risks from a much broader perspective.”
Condos are a key part of Florida’s real estate industry. That means the new law should have economic benefits.
Freddie Mac and Fannie Mae, the federal mortgage brokers, were ready to deny loans for Florida condo purchases if owners delayed repairs. Actuaries had threatened that insurers might stop writing condo coverage without safety assurances.
Similarly, post-Surfside condo buyers will want to know if their investments are secure. Better inspection schedules will help keep the market stable.
The law requires much more transparency when a unit goes on the market. Potential buyers must have all records related to inspections and future costs. Developers must present structural studies before turning over a building to owners.
The new standards will raise condo unit values, not decrease them.
Need-based assistance needed
Those costs could drive lower-income Floridians from their homes in the middle of a housing crisis. The Legislature and Congress should consider need-based assistance for condo owners as the law takes effect. If you feel strongly about this issue, or any other part of the bill, email your legislators. They know that most condo owners vote.
Legislators were able to pass the law on short notice because so much work already had been done, and recommendations came from the Florida Bar, engineering groups and a Miami-Dade County grand jury.
The law’s biggest weakness is that it’s too soft on condo board members. If they fail to ensure that a building has adequate reserves, they face no penalty. Instead, they will have “breached their fiduciary duties.” That might provide grounds for a civil lawsuit, but only after people have died. It’s too weak.
Another potential weakness is enforcement. The law assigns it to a state agency. Boca Raton’s post-Surfside law put the city in charge. Lax enforcement will undercut the law’s intent.
But this is a much better start on condo safety than the updated property insurance law that the Legislature also passed. It’s not just better than nothing, it’s something good for a change.