Four months after the collapse of the Surfside condominium structure, Florida has begun the long journey. The state and counties are introducing and passing laws aimed to ensure such a tragedy never happens again. A preliminary task force report authored by a sector of the Florida Bar recommends lawmakers overhaul the state’s condominium laws. Among other issues, they want to see changes in how properties are inspected and ensure proper reserves are in place to make significant safety repairs.
Until ongoing investigations are complete, any suggestions or guidance from legal or other experts remain preliminary at best. But even if they’re unconfirmed or never come to pass, they offer valuable insight to associations who should consider these and potential changes as they plan for next year’s budget and more.
Policy Changes to Prevent Another Surfside Tragedy
Much of the focus is on how insurers are pulling out of Florida, raising their rates, and enacting new requirements. Other concerns include building regulations, reserve funds, and climate change-related infrastructure challenges.
Every aspect of condo association administration and management is up for scrutiny, including building codes, maintenance, reserves, inspections, design, and more. Determining which factors should be addressed first is challenging because no one has yet determined what caused the 12-story building to collapse. Adding to the issue’s complexity is the growing amount of litigation arising from the tragedy. Insurers are denying residents’ coverage claims, and engineers are insisting they completed accurate structural safety reports.
In the meantime, regulators are proposing steps condo associations might want to consider now before any new laws are enacted. They include:
- More frequent inspections of older buildings.
- Greater investment in repairs, upgrades, and improvements.
- Developing more comprehensive plans for responding to disasters.
What Florida Counties Are Doing
Some Florida counties are taking a more aggressive approach in targeting unsafe buildings. Miami-Dade, where the Surfside building was located, has already evacuated a number of buildings the county deems unsafe due to structural issues. The County Commissioner, Raquel Regalado, has also initiated discussions on changing inspection policies which currently call for structural and electrical safety inspections every 40 years.
Palm Beach County is taking a more hands-off approach, waiting to see if the state passes new building codes in January 2022. Broward County is following Palm Beach County’s lead, waiting for investigation findings before enacting changes.
A Wake-Up Call for Condo Association Reserves Policies
In Florida, condominium associations are required by law to collect reserves for roofing, exterior painting, and pavement resurfacing so that when the estimated useful life of a component is expired, the association can replace it without the need for a special assessment. A 2020 report found the Surfside condo association lacked funds for necessary repairs. Some experts see that as a wake-up call.
The Florida Bar task force report calls for sweeping changes in existing state laws for reserve requirements. Together with other recommendations, the panel would like to see:
- Concrete restoration added to existing required reserves.
- Less “wiggle room” for funding and monitoring reserves.
- Reserve studies performed every three years to determine how well an association is planning for future inevitable repairs.
The bottom line? Buildings don’t take care of themselves and must be maintained, even if it’s discovered a lack of maintenance isn’t what caused the Surfside collapse. Condo associations that take steps now to address even unconfirmed causes can help prevent a similar tragedy and ensure they have the funds necessary to meet future financial obligations.
