The new law passed by the Legislature, known as “SB 4-D”, became effective May 26, 2022 and contains various important deadlines for compliance. The new law applies to condominiums and cooperatives which are 3 stories or higher. We are most often asked “by when do we need to comply with the new law?” This article is not meant to be all-inclusive nor to provide a detailed explanation of SB 4-D which we have done in other publications. Instead, this is intended as a crib sheet to help Associations keep up with the deadlines.
MILESTONE INSPECTION AND REPORT:
- For buildings built after 1992, this is due by December 31 of the 30th year after completion of the building, 25 years for buildings within 3 miles of a coastline.
- For pre-1992 buildings, the milestone inspection must be completed by December 31, 2024.
- Within 180 days after receiving a notice from the local enforcement agency (building department) the Association must complete Phase 1 of the milestone inspection. [Note: There is a conflict inasmuch as another part of the law states that Associations have until December 31, 2024 to comply; expected to be clarified next Legislative session].
- Milestone inspections must be updated at least every 10 years.
THE STRUCTURAL INTEGRITY RESERVE STUDY:
- The structural integrity reserve study must be completed no later than 10 years after completion of the building.
- Associations in existence on or before July 1, 2022, and which are under unit owner control, have until December 31, 2024 to complete a structural integrity reserve study.
BUDGETS AND RESERVES:
- There are 10 items required to be reviewed in the new structural integrity reserve study are now mandatory statutory reserves which cannot be waived or reduced. This structural integrity reserve study must be completed by December 31, 2024.
- The law prohibiting the waiver/reduction of reserves applies as of December 31, 2024.
REPORTING TO THE DIVISION: *NOTE UPCOMING DEADLINE*
- By December 31, 2022 every condominium association must log onto the Division’s website and fill out a form that provides information regarding the condominium.
- You can find the link to this form here: http://www.myfloridalicense.com/DBPR/condos-timeshares-mobile-homes/building-report/
Keep in mind that the statute imposes direct breach of fiduciary duty liability for failure to comply with this law. There should be no reason to miss a deadline if Associations are aware of these dates. We expect that the Legislature’s next session will address several aspects of the new law which bear clarification. We will continue to keep you updated. Please call your Association attorney should you have any questions about these deadlines, any other aspect of SB 4-D or to confirm if your municipality has also adopted reporting requirements.