C
ondo owners in South Florida are struggling to understand the new laws passed after the 2021 Surfside condo collapse, which aim to prevent similar tragedies. The legislation, signed into law by Governor Ron DeSantis, requires condo associations and co-ops to conduct structural integrity reserve studies and milestone inspections for buildings three stories or taller.

    Many communities face a "double whammy" of tasks due to the new deadlines, said attorney Gary Mars. Misconceptions abound, with some thinking that the legislature will address issues in 2025. However, experts warn that compliance is mandatory, and associations must worry about structural integrity reserve studies and milestone inspections.

    Condo associations need to complete a Structural Integrity Reserve Study (SIRS) by the end of 2024, which could cost thousands or tens of thousands of dollars. The study creates a framework for future budgets, and associations must fund SIRS reserves based on a schedule included in the study. Milestone inspections are also required when buildings turn 30 years old, with some flexibility for proximity to salt water.

    Experts expect an increase in collections issues and foreclosures due to sharp increases in assessments. Some owners have already sold their units at discounts due to special assessments and high insurance costs. Associations can still waive advance funding for non-SIRS items, but owners are facing hardships as they try to comply with the new laws.

    Many condo owners are unaware of the changes, said Oscar Seikaly, CEO of NSI Insurance Group. "When we talk about these newer rules, 90 percent of the condo owners don't know what's going on," he said. Experts warn that owners will face unexpected bills and questions when they discover the new requirements.