The Great Reset: Florida’s Evolving Building Inspections and Management Shifts

We have seen how the lack of active repair and maintenance on buildings has plagued the Florida market for a long time. The importance of proactive maintenance and reserve planning cannot be overstated and has sparked new legislation like Florida’s Condo 3.0 Law, which mandates everything from how a building is maintained to how condo associations are governed. Boards, residents, and property management firms need to not only be thinking about this but also be taking proactive steps to comply.

The Great Reset

While structural integrity reporting and planning is a big part of the new legislation, it’s truly a reset of how a building is operated, maintained, and managed. The sweeping legislation impacts inspections, association management and operation, record keeping, and bid requirements, among other things.

At the same time, it puts criminal penalties in place for violations, holding board members and property managers more accountable.

Futureproofing Buildings

Per the latest Structural Integrity Reserve Studies (SIRS) regulations, associations are required to comply with the new requirements by Dec. 31, 2024. SIRS provides a comprehensive overview of the building’s common areas, physical condition, and financial status to serve as a roadmap for funding replacements and building lifecycle improvements.

Milestone inspections, which assess the structural components of a building, are required for buildings 30 years or older, or buildings 25-plus years if within 3 miles of the coast. These must also be completed by Dec. 31, 2024, by a licensed engineer, architect, or reserve specialist.

For Buildings That Are Behind

Unfortunately, there are many more condominium associations in Florida than there are reserve and inspection specialists to complete this work, so it’s possible that some buildings will not be able to meet the end-of-year deadline, despite their best efforts. It’s recommended that associations do their best—contact a reserve specialist, execute an agreement to perform the study, schedule appointments on the calendar, and keep record of your efforts and progress. It is also important that you keep your membership informed of your progress as you work towards completing the study.

For buildings that are behind from a financial perspective, it’s best to start working towards meeting the regulations to be in a better position in 2025 and beyond. While there is a potential mechanism to extend funding out to 2026, we recommend a modest increase to any 2025 reserve funding to prepare members for the increased contributions that will be required Jan. 1, 2026.

Addressing Reports and Planning for Maintenance

Once an association completes its reports, boards must follow specific protocols related to actual work on the structure and the increased financial contributions of residents. Contrary to past practices, the structural components of buildings must have funded reserves to meet the timeframes for replacement and/or maintenance as outlined in the study.

Like reserve specialists, regional contractors are stretched thin due to increased work demand. Associations, building managers, and property managers should work closely to plan from a financial and workforce perspective, according to the SIRS and Milestone recommendations.

Financing projects is just as important as doing them and requires a thoughtful approach to balancing monthly dues increases and additional costs for financing expensive projects. Ultimately, associations that have funded their reserves in past years will be in a better financial position than those that have not.

Increased Transparency and Mandatory Training

Beyond structural requirements, this legislation now codifies how to operate and manage an association to provide more transparency for residents. A few key changes are included below, and the bill summary can be found here.

• Official Record Keeping: As of Jan.. 1, 2025, associations with 100 or more parcels must maintain a digital copy of official records, which can be downloaded through the association’s website.
• Meeting Cadence and Requirements: Associations with 10 or more parcels must meet quarterly with opportunities for members to ask questions. Meetings about assessments must include the cost, purpose, and a copy of any proposed contract.
• Vendor Proposals: There are new disclosure requirements and a process for associations to follow when approving contracts for goods or services that exceed $2,500 and may present a conflict of interest.
• Education: There are mandatory educational requirements that volunteer board members will need to complete by June 2025, as well as continued education for property managers.
• Digital Tools: Associations may need to upgrade their digital tools and/or websites to ensure they comply with the new disclosure requirements and provide the transparency stakeholders are now demanding of associations.

Setting the Stage for Better and Safer Properties

It’s yet to be seen how this will impact the market for condominiums in South Florida. As we look ahead, it will be important for all associations to adjust their financial practices to reduce risk and help buyers feel more comfortable investing in these properties.

Being fearful or resistant to change will only lead to mistakes, so properties should take this time to reset, apply thoughtful budgetary planning, and create clear direction to ensure safe conditions for all residents. The new reporting processes and ways of operating will help futureproof buildings from a documentation, physical asset, and financial perspective.

Education for property managers and residents is paramount—now is the time to be thoughtful and address changes. While associations and property managers work through the growing pains of these new rules, transparency and open communication with all community stakeholders can help to ensure a seamless approach to maintaining compliance.