Featured Insights: Why most Florida Condominiums will be required to obtain a Structural Integrity Reserve Study
Condominium Advisory Group
Florida Condominium Association Advisory Services
Is your condominium prepared for long-term safety and maintenance? Under Florida's Condo Safety Bill, all three-story or taller condominiums must complete a Structural Integrity Reserve Study (SIRS) by December 31, 2024. This essential evaluation assesses eight critical components to ensure the building's structural integrity, including roofing, plumbing, fire safety, and more.
If your association is on track, great! But if you're behind, time is running out. The study helps allocate repair funds that cannot be waived or pooled, ensuring they're used for necessary maintenance. Delays will lead to costly consequences and financial strain.
Now is the time to act—ensure your building stays compliant, safe, and financially secure before the deadline approaches.
In the News!
FOX 35 News interviews John Cadden on the new laws burdening Florida condo owners
In a Fox 35 Orlando news interview, John Cadden discusses the financial strain caused by Florida’s SB 4-D law, which has sharply increased fees for Orlando condo owners. He explains, “The new requirements mean that condo associations have to raise more money, and that money has to come from the residents.” Cadden highlights the impact on retirees and those with fixed incomes, saying, “Not everyone who owns a condo is wealthy.”?
He also points out that special assessments add to the unpredictability, making it harder for owners to manage their finances. Cadden calls for a more balanced approach, advocating for safety measures that also consider the financial realities of residents.
Florida’s governor pushes for relief options as condo owners face January deadline
In a recent Insurance Journal article, Florida Governor Ron DeSantis called on lawmakers to consider relief measures for condominium owners before January 1, 2025, the deadline for mandatory inspections and repairs required after the 2021 Surfside tragedy.?
Many condo owners, already grappling with rising insurance costs, fear the financial strain of these new requirements. DeSantis proposed a special legislative session to discuss options like extending the deadline or providing low-interest loans, though Senate President Kathleen Passidomo has pushed back on the idea.
John Cadden noted that while captive insurance companies could offer savings, “People are trying to solve this problem... but it requires significant capital, which many associations lack.” The issue remains urgent for Florida condo owners.
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Miami condo market in crisis as owners rush to sell before new regulations
A Florida Politics article brings attention to the concerns about the financial strain Florida’s new condominium laws may impose, particularly around reserve funding for repairs.?
Miami Rep. Vicki Lopez, a key figure in shaping the legislation, urged patience, noting that crucial data from the Structural Integrity Reserve Study (SIRS) won’t be available until January 2025. This study will help determine how much funding is needed to maintain buildings and avoid future tragedies like the Surfside collapse.
John Cadden pointed out that past decisions to waive reserve funding have contributed to the current financial pressures. “It used to be, you did a reserve study, but you could vote as a condominium to waive reserves and not reserve any money,” Cadden explained, emphasizing that this has left many condo boards facing high, unavoidable costs.
We'll continue to share in-depth information on the Florida Building Safety Act and offer resources and success stories from our satisfied clients. We believe in knowledge-sharing and are excited to contribute to your understanding of the changes in the real estate landscape in Florida.
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Regards,
Condominium Advisory Group Team