Changes in Florida Condominium Safety Laws after Surfside
COURSE DESCRIPTION:
- On June 24, 2021, 40-year-old, 12 stories high Champlain Tower South collapsed in Surfside, Florida killing 98 and destroying 135 units. Since 2022 and every year thereafter, Florida legislature has been revising laws aiming to improve condominium safety.
- This Program is divided in 3 parts.
- Part 1 provides a detailed overview of the new laws as they are revised in 2022, 2023, 2024 and 2025, including three key elements: Milestone Inspections, Structural Integrity Reserve Study (“SIRS”) and Reserves.
- Part 2 discusses the impact of the new laws in 4 areas: new disclosures, increased special assessments, expanded condominium association duties and terminations of condominiums.
- Part 3 provides a review of the market response, from the viewpoint of the real estate agent/broker, to the condo safety laws including Fannie Mae lender guideline changes, the condominium blacklist, the dynamics of condo listings, sales, and prices as well as the new buyer due diligence recommendations.
LEARNING OBJECTIVES:
Upon completing this course, the participants should be able to:
- Discuss the details of the Surfside condo collapse:
- Human, financial and industry toll
- The magnitude of the problem: condo statistics in Florida: how many, how old?
- Response by Florida legislature in 2022, 2023, 2024, 2025
- Understand the legal requirements and financial impacts of milestone inspections
- What are the critical structural elements as defined in 2022 legislation?
- Components of Phase 1 and Phase 2 milestone inspections
- Key changes in milestone inspections in 2023
- Understand the layout and specifics of the new Milestone Inspection Review form
- When are milestone inspections due?
- What are the roles of the buyers, sellers, and real estate agents/brokers?
- What are the duties of the condo associations as to milestone inspections?
- What is the impact of milestone inspections on the real estate industry?
- Understand the legal requirements and financial impacts of Structural Integrity Reserve Study (SIRS) and Reserves.
- Components of SIRS including remaining useful life and reserve funding schedule
- Layout and specifics of a typical SIRS report
- Explain the different methodologies in calculating reserves: pooled v. straight line
- Frequency and dissemination of SIRS report
- Duties of condo associations and liability of officers and directors as to SIRS and reserves
- Developers and the turnover inspection report
- Learn the key objectives of 2024 reforms including conflict of interest issues.
- Voting requirements
- Frequency of board and member meetings
- Online records access
- Vertical subdivisions and mixed-use facilities
- New disclosure requirements
- Rider A: Condominium Rider featuring disclosures of special assessments, milestone inspections, turnover report, SIRS, annual budget, board meeting minutes, vertical subdivisions
- Frequency of board and member meetings
- Online records access
- Role of the buyer and seller
- Buyer due diligence
- 2025 legislative changes
- Habitable stories
- Pause reserves
- Delay SIRS and waiver of non-SIRS items
- Line of credit or loans to fund reserves
- Reserve funding schedule
- Video conference
- Insurance
- Impacts of Surfside legislation
- Sellers’ concerns: assessments, fees, sale prices, insurance, terminations
- Lenders’ concerns: condo blacklist, Fannie Mae, and Freddie Mac’s Selling Guide changes
- What makes a project ineligible for lending?
- Real Estate industry concerns: decline in sales and prices, increase in inventory, rise in “vintage” units, condo terminations