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The Florida Legislature passed Senate Bill 4-D in in May 2022, which creates new requirements for condominium and co-op buildings three or more stories tall. SB-4D establishes a statewide inspection program, requiring condominium and cooperative associations to conduct milestone structural inspections and perform structural integrity reserve studies to ensure that condominium and cooperative buildings are safe for continued use.

Here are some key provisions of the new law:

WHAT DOES THE LAW REQUIRE?

Performed by a Florida Licensed Professional Engineer.

Structural Assessment Report that identifies any substantial structural deterioration or observations.

Report inspections.

PHASE-ONE MILESTONE:

Materials testing, probing or removal of finishes, or non-destructive testing such as ground penetrating radar.

Identify and document the extent of any substantial structural deterioration, and recommending appropriate solutions.

Required repairs must be fixed within a year of the Phase-Two Milestone inspection report.

PHASE-TWO MILESTONE:

STRUCTURAL INTEGRITY RESERVE STUDIES

The law requires reserves to be funded, and the study determines the reserve funds required for future major repairs and replacement of the common area based on visual inspection of the common areas.

Licensed Engineer or Architect in Florida.

Identification of common area elements inspected.

Estimated life of each element.

Replacement cost or deferred maintenance expense of each element.

Recommended annual reserve amount for replacement or deferred maintenance of each element.

Studies must be maintained for at least 15 years after completion.

REQUIREMENTS OF THE STUDY:

Effective December 31, 2024, unit-owner controlled associations must properly fund reserves related to the Structural Integrity Reserve Study.

Funds can only be used for the specific items identified in the studies.

It is a breach of a board member or officer’s fiduciary duty if an association fails to complete a structural integrity reserve study and fails to properly fund reserves related to the Structural Integrity Reserve Study.

Failure to comply with SB-4D can result in personal liability on the part of board members.

FIDUCIARY AND FINANCIAL REQUIREMENTS: