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SB-4D Structural Safety Law Summary

SB-4D Structural Safety Law Summary

September 7, 2022

 

Important Dates

On or before January 1, 2023, condominium associations existing on or before July 1, 2022, must provide the following information to the division in writing, by e-mail, United States Postal Service, commercial delivery service, or hand delivery, at a physical address or e-mail address provided by the division and on a form posted on the division’s website:

  1. The number of buildings on the condominium property that are three stories or higher in height.
  2. The total number of units in all such buildings.
  3. The addresses of all such buildings.
  4. The counties in which all such buildings are located.

The division must compile a list of the number of buildings on condominium property that are three stories or higher in height, which is searchable by county, and must post the list on the division’s website. This list must include all of the following information:

  1. The name of each association with buildings on the condominium property that are three stories or higher in height.
  2. The number of such buildings on each association’s property.
  3. The addresses of all such buildings.
  4. The counties in which all such buildings are located.

An association must provide an update in writing to the division if there are any changes to the information in the list under paragraph (b) within 6 months after the change.

Milestone Inspections

  • Must be completed by December 31st of the year in which the building reaches 30 years of age based on the Certificate of Occupancy (CO)
    • Then every 10 years thereafter

        For Buildings within three (3) miles of the coastline

  • Inspections must be completed by December 31st of the year in which the building reaches 25 years of age (based on CO)
    • Then every 10 years thereafter

        For buildings with CO’s issued on or before July 1,1992:

  • The initial milestone inspection must be performed before DECEMBER 31, 2024.
    • If the CO issuance date is not available, the date of occupancy shall be that which is evidenced in any record of the local building official.

Structural Integrity Reserve Study

  • Associations existing on or before July 1,2022, controlled by unit owners other than the developer, must have the Structural Integrity Reserve Study completed by DECEMBER 31, 2024

Key Takeaways

Due to the Surfside tragedy, the Florida legislature “finds that the imposition of a statewide structural inspection program for aging condominium and cooperative buildings in this state is necessary to ensure that such buildings are safe for continued use.”

FS Adds §553.899 – Mandatory Structural Inspections for Condominiums and Cooperative Buildings

Key Definitions

  • Milestone Inspections: “structural inspection of a building, including an inspection of load-bearing walls and the primary structural members and primary structural systems
  • Primary Structural Member: “a structural element designed to provide support and stability for the vertical or lateral loads of the overall structure.”
  • Primary Structural System: “an assemblage of primary structural members.”
  • Substantial Structural Deterioration: “substantial structural distress that negatively affects a building’s general structural condition and integrity.”
    • The term does not include surface imperfections such as cracks, distortion, sagging, deflections, misalignment, signs of leakage, or peeling of finishes unless the licensed engineer or architect performing the phase one or phase two inspection determines that such surface imperfections are a sign of substantial structural deterioration.”
  • Coastline: “the line of mean low water along the portion of the coast that is in direct contact with the open sea and the line marking the seaward limit of inland waters, as determined under the Convention on Territorial Seas and the Contiguous Zone, 15 U.S.T. (Pt. 2) 1606”

Who is affected?

  • Any Condominium or Cooperative Association building, 3 stories or more in height, which reach 25 or 30 years old from their date of Certificate of Occupancy (CO).
    • The Association is responsible for all costs associated with the inspections

What are the inspections?

  • Structural inspection of the building performed by a licensed Architect or Engineer, attesting to (as reasonably possible)
    • Life safety
    • Adequacy of the structural components
    • General structural condition of the building which affects safety
    • Determination of any necessary maintenance, repair, or replacement of any structural component.
  • Phases 1 Milestone Inspection
    • A visual examination of habitable and nonhabitable areas of a building, including the major structural components of a building, and provide a qualitative assessment of the structural conditions of the building.
      • If the architect or engineer finds no signs of substantial structural deterioration to any building components under visual examination, phase two of the inspection, as provided in paragraph (b), is not required.
    • An architect or engineer who completes a phase one milestone inspection shall prepare and submit an inspection report pursuant to subsection (8)
  • Phase 2 Milestone Inspection
    • Must be performed if any substantial structural deterioration is identified during phase one.
    • A phase two inspection may involve destructive or nondestructive testing at the inspector’s direction. The inspection may be as extensive or as limited as necessary to fully assess areas of structural distress in order to confirm that the building is structurally sound and safe for its intended use and to recommend a program for fully assessing and repairing distressed and damaged portions of the building.
    • When determining testing locations, the inspector must give preference to locations that are the least disruptive and most easily repairable while still being representative of the structure.
    • An inspector who completes a phase two milestone inspection shall prepare and submit an inspection report pursuant to subsection (8)

The Milestone Inspection Report (subsection (8))

  1. Must bear the seal and signature, or electronic signature, of the licensed engineer or architect who performed the inspection
  2. Indicate the manner and type of inspection forming the basis for the inspection report.
  3. Identify any substantial structural deterioration, within a reasonable professional probability based on the scope of the inspection, describe the extent of such deterioration, and identify any recommended repairs for such deterioration.
  4. State whether unsafe or dangerous conditions, as those terms are defined in the Florida Building Code, were observed.
  5. Recommend any remedial or preventive repair for any items that are damaged but are not substantial structural deterioration.
  6. Identify and describe any items requiring further inspection.

When are they required?

  • Must be completed by December 31st of the year in which the building reaches 30 years of age based on the Certificate of Occupancy (CO)
    • Then every 10 years thereafter

        For Buildings within three (3) miles of the coastline

  • Inspections must be completed by December 31st of the year in which the building reaches 25 years of age (based on CO)
    • Then every 10 years thereafter

        For buildings with CO’s issued on or before July 1,1992:

  • The initial milestone inspection must be performed before DECEMBER 31, 2024.
    • If the CO issuance date is not available, the date of occupancy shall be that which is evidenced in any record of the local building official.

What they are NOT:

  • The purpose of such inspections are not to determine if the condition of an existing building is in compliance with the Florida Building Code or the firesafety code.
  • Substantial Structural Deterioration does not include surface imperfections such as cracks, distortion, sagging, deflections, misalignment, signs of leakage, or peeling of finishes unless the licensed engineer or architect performing the inspection determines that such surface imperfections are a sign of substantial structural deterioration.”
  • Does not apply to single, two, or three family dwellings with 3 or fewer habitable stories above ground.

The Process (upon determining the building requires the milestone inspection)

  1. Local enforcement agency must provide written notice of the required inspection by certified mail, return receipt requested.
  2. Within 180 days after receiving the written notice, The Association much complete Phase 1 of the inspection.
    1. Completion of Phase 1 means : the licensed Architect or Engineer has performed and submitted the inspection report by email, United States Postal Service, or commercial delivery service to the local enforcement agency
  3. Upon completion of Phase 1 or Phase 2 inspections the Architect or Engineer must submit a sealed copy of the inspection report with a separate summary of, at minimum, the material findings and recommendations in the inspection report to the condominium association or cooperative association, and to the building official of the local government which has jurisdiction.
  4. The Association is required to:
    1. Distribute a copy of the inspector-prepared summary of the report to each condominium or cooperative unit owner, regardless of findings or recommendations
      1. By US mail, or personal delivery
      2. By electronic transmission to unit owners who previously consented to receive electronic notifications
    2. Post a copy of the inspector-prepared summary of the report in a conspicuous place on the condo/cooperative property
    3. Publish the full report and inspector-prepared summary on the Association’s website (if they are required to have a website)
  5. For substantial structural deterioration repairs identified in the Phase 2 report, the Association must commence such repairs within 365 days after receiving the report.
    1. Local enforcement agencies may prescribe timelines and penalties with respect to compliance
    2. A board of county commissioners may adopt an ordinance reducing the timeframe required to begin the repairs.
    3. If Association fails to submit proof that repairs are scheduled or have commenced within the required timeframe, the local enforcement agency must review and determine if the building is unsafe for human occupancy.

**Failure of the Association to perform the Milestone inspections and Structural Integrity Reserve Study is a breach of an officer’s and director’s fiduciary relationship under 718.111(1) **

Changes to FS Section 718/719

Key Definitions

  • Structural Integrity Reserve Study: “a study of the reserve funds required for future major repairs and replacement of the common areas based on a visual inspection of the common areas.”
    • A structural integrity reserve study may be performed by any person qualified to perform such study.
    • However, the visual inspection portion of the structural integrity reserve study must be performed by an engineer licensed under chapter 471 or an architect licensed under chapter 481.
    • At a minimum, a structural integrity reserve study must
      • identify the common areas being visually inspected
      • state the estimated remaining useful life
      • state the estimated replacement cost or deferred maintenance expense of the common areas being visually inspected
      • provide a recommended annual reserve amount that achieves the estimated replacement cost or deferred maintenance expense of each common area being visually inspected by the end of the estimated remaining useful life of each common area.
    • The “Division”: The Division of Florida Condominiums, Timeshares, and Mobile Homes of the Department of Business and Professional Regulation

Requirements/Changes

  • An Association must have a Structural Integrity Reserve Study completed at least every 10 years after the condominium’s creation for each building on the property that is 3 stories or higher in height.
  • Associations are required provide access and maintain:
    • The structural integrity reserve study for at least 15 years after the study is completed.
    • A copy of the inspection reports (553.899 (Milestone reports) and 718.301 (4) (p)) and any other inspection report relating to a structural or life safety inspection of the property, for 15 years after receipt of the report.
  • Associations existing on or before July 1,2022, controlled by unit owners other than the developer, must have the Structural Integrity Reserve Study completed by DECEMBER 31, 2024

Structural Integrity Reserve Study

The Study must address, at a minimum, the following items as related to the structural integrity and safety of the building:

  1. Roof
  2. Load-bearing walls or other primary structural members.
  3. Fireproofing and fire protection systems.
  4. g. Electrical systems.
  5. Waterproofing and exterior painting.
  6. Any other item that has a deferred maintenance expense or replacement cost that exceeds $10,000 and the failure to replace or maintain such item negatively affects the items listed in subparagraphs a.-i., as determined by the licensed engineer or architect performing the visual inspection portion of the structural integrity reserve study.

Reserves

  • In addition to the annual operating expenses the budget must include the reserve accounts for capital expenditures and deferred maintenance.
    • The amount to be reserved for an item is determined by the association’s most recent structural integrity reserve study that must be completed by December 31, 2024.
    • If the amount to be reserved for an item is not in the association’s initial or most recent structural integrity reserve study or the association has not completed a structural integrity reserve study, the amount must be computed using a formula based upon estimated remaining useful life and estimated replacement cost or deferred maintenance expense of the reserve item.
    • The association may adjust replacement reserve assessments annually to take into account any changes in estimates or extension of the useful life of a reserve item caused by deferred maintenance
  • Effective December 31, 2024, the members of a unit-owner controlled association may not determine to provide no reserves or less reserves than required by this subsection for items listed in paragraph (g).
  • Before turnover of control of an association by a developer to unit owners, the developer-controlled association may not vote to waive the reserves or reduce funding of the reserves.
  • Effective December 31, 2024,members of a unit-owner controlled association may not vote to use reserve funds, or any interest accruing thereon, that are reserved for items listed in paragraph (g) for any other purpose other than their intended purpose

Developer Turnover Requirements

Developer Turnover now required to submit to the Association a milestone inspection report in compliance with s. 553.899 included in the official records, under seal of an architect or engineer authorized to practice in this state, and attesting to required maintenance, condition, useful life, and replacement costs of the following applicable condominium property comprising a turnover inspection report:

  1. Structure, including load-bearing walls and primary structural members and primary structural systems as those terms are defined in s. 627.706.
  2. Fireproofing and fire protection systems.
  3. Heating and cooling systems.
  4. Electrical systems.
  5. Swimming pool or spa and equipment.
  6. Pavement and parking areas.
  7. Drainage systems.
  8. Irrigation systems.

(r) A copy of the association’s most recent structural integrity reserve study.

 

The law summary was written by Scott Harvey-Lewis, Building Mavens, President, and Owner.

 

 


Tags:
Law Summary, SB-4D, SB-4D Changes