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What you need to know about SIRS SB4D and how it impacts real estate in Florida

Ron-DeSantis-SIRS SB4D

Table of Contents

Are you a potential condo buyer concerned about the structural safety of your future investment, or an association struggling to comply with the new mandatory reserve requirements imposed by Florida’s SB 4D? Navigating the complexities of this legislation can be daunting, and non-compliance could have significant financial consequences. Don’t worry, we’ve got you covered! 1) Buyers: Consult an attorney and work with a qualified broker, like The James Ruff Group, to help you determine the information needed to assess purchase opportunities confidently. 2) Associations in need of financial assistance to achieve compliance with SIRS, look no further. The James Ruff Group offers financial options tailored to relieve the burden of compliance costs. Contact us today to protect your investment and ensure a safe, secure living environment for all residents! The information below will help you understand what you need to know regarding building compliance with this law and additional resources to help you make the most informed decisions regarding purchasing, selling, or managing real estate impacted by this law.

Summary of New Mandatory Reserve Requirements for Condominiums and Cooperative Associations

Disclaimer: This is not intended as legal advice, is for informational purposes only, and proper legal counsel may be required to interpret the law accurately.

  • Florida’s SB 4D, signed into law on May 26, 2022, imposes new legal requirements and restrictions on condominium and cooperative associations to protect the long-term structural safety and integrity of multi-story buildings [1].
  • Associations of buildings three stories or taller must complete a Structural Integrity Reserve Study (SIRS) at least once every 10 years [2].
  • A SIRS must be performed by a licensed engineer or architect, and it must identify and state the remaining useful life, replacement cost, or deferred maintenance expense of several specific structural components [2].
  • For new construction, developers must have a SIRS completed before turning over control of an association to unit owners [2].
  • For existing associations as of July 1, 2022, a SIRS must be completed by December 31, 2024 [2].
  • Failure to complete a SIRS is deemed a breach of fiduciary duty for association officers and directors [2].
  • Starting December 31, 2024, unit owners can no longer waive or reduce funding for structural reserve items required to be listed in the SIRS [2].
  • Associations are also prohibited from using reserve funds collected for structural items listed in a SIRS for any other purpose starting December 31, 2024 [2].
  • Associations should plan for compliance with the legislation now and consult qualified legal counsel with any questions or concerns regarding compliance [2].

The new Florida building safety legislation, House Bill 5D, was passed to address mandatory structural inspections and reserves for condominiums and cooperatives with buildings three stories or greater in height.

Here’s a summary of the law’s key aspects:

  • Reporting Requirements: By January 1, 2023, all existing condominiums and cooperatives must provide specific information to the Department of Business and Professional Regulation, Division of Condominiums, Timeshares, and Mobile Homes (DBPR) [2].
  • Milestone Inspection Requirements: Buildings 3 stories or higher must undergo a structural inspection by a licensed architect or engineer [2].
  • Inspection Deadlines: Inspections must be completed by December 31st of the year the building reaches 30 years of age and every 10 years thereafter. For buildings within 3 miles of the coastline, inspections must be completed by December 31st of the year the building reaches 25 years of age and every 10 years thereafter [2].

Milestone Inspections – Two Phases:

Phase 1: A visual examination by an architect or engineer, assessing the structural conditions of the building.

Phase 2: Required if Phase 1 reveals “substantial structural deterioration”, involving either destructive or nondestructive testing to assess areas of structural distress [2].
Structural Integrity Reserves Study (SIRS): All unit owner-controlled condominiums and cooperatives with buildings of 3 or more stories must complete a SIRS by December 31, 2024, and at least once every 10 years thereafter [2].

  • Funding of Reserves and Prohibition on Waiving or Reducing Reserves: Associations may not vote to waive or reduce fully funding reserves for SIRS building components, and they are also prohibited from voting to use such reserves for any other purpose [2].
  • Statutory Liabilities: Failure to obtain Milestone Inspection or SIRS can be considered a breach of fiduciary relationship to the unit owners [2].
  • Regulatory Enforcement: DBPR and local enforcement agencies have the power to enforce compliance regarding milestone inspection reports, structural integrity reserve studies, and reserve funding [2].
  • Developer Requirements: Developers of buildings 3 stories or more in height must complete a SIRS and provide it to the association before turnover [2].

Associations should consult with their attorney to determine the steps required to comply with House Bill 5D [2].

Additional Information:

Source 1: Florida’s Condominium and Structural Safety Law – 2022 Legislative Update [1]

This source provides an overview of the new building safety legislation passed in Florida for condominiums and cooperatives. The legislation primarily addresses mandatory structural inspections and reserves for buildings three stories or greater in height. Structural inspections of the buildings must be performed by a licensed architect or engineer attesting to life safety, adequacy of structural components, general structural condition affecting life safety, and any necessary maintenance, repair, or replacement of structural components [1].

Source 2: New Reserve Requirements [2]

This source focuses on the new reserve requirements for condominiums and cooperatives in Florida. New condominiums and cooperatives must complete a Structural Integrity Reserves Study (SIRS) within 3 years of the building’s original receipt of its certificate of occupancy, and no later than December 31, 2024 [2].

James Ruff owner of The James Ruff Group Miami Realtors

James R. Ruff

Principal Broker

About the Author

James R. Ruff – With 30+ years in real estate construction, investing, and brokerage, having studied at Harvard Business School, James Ruff leads The James Ruff Group Real Estate Brokerage Firm as Principal Broker and Owner. 

Operating from offices at Madison Park in Manhattan, New York, The South of Fifth in Miami, Florida, and Cambridge, Massachusetts, his team of expert advisors specializes in luxury residential and commercial properties throughout the USA.

James Ruff’s team is dedicated to helping you build wealth, security, and happiness through quality real estate guidance, one transaction at a time, for a lifetime.

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James Ruff Principal Broker Owner The James Ruff Group Realtors
James R. Ruff Principal Broker, Owner of The James Ruff Group Realtors

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This privacy policy also describes the choices available to you regarding our use of your personal information and how you can access and update this information.

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If you have questions or concerns regarding this policy, you should first contact us at info@thejamesruffgroup.com

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We adopt this Notice to comply with the California Consumer Privacy Act of 2018 (CCPA). Any terms defined in the CCPA have the same meaning when used in this Notice.

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Additional Policy Information

Our Web site includes Widgets, which are interactive mini-programs that run on our site to provide specific services from another company (e.g. displaying the news, opinions, music, etc.). Personal information, such as your email address, may be collected through the Widget. Cookies may also be set by the Widget to enable it to function properly. Information collected by this Widget is governed by the privacy policy of the company that created it.

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This Privacy Policy was last revised on October 1, 2022. We reserve the right to modify or amend this policy at any time by posting the revised Privacy Policy on the website.

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