As the third anniversary of the tragic Champlain Towers collapse in Surfside approaches, Florida condo owners are facing a critical and financially burdensome deadline directly linked to that disaster. The tragedy caused a ripple effect in legislation at the state level in the form of Senate Bill 4D and the subsequent Senate Bill 154, requiring preventative maintenance for all condo associations moving forward.

The Dec. 31 deadline mandated by SB4D and SB154 could cause widespread chaos and disruption for many of Florida's 25,000 condo associations. Under the act, any building reaching 30 years of age before year-end must undergo a mandatory "milestone inspection" of its structural integrity, conducted by a licensed structural engineer or architect. SB154 further specifies that a progress report outlining the necessary work to meet safety requirements must be submitted within 180 days of the inspection. Buildings that have not been adequately maintained will likely require upgrades, resulting in special assessments and increased condo association fees to maintain compliance. Once viewed as an affordable homeownership option, condo living has devolved into a costly nightmare for some residents due to an unexpected side effect of the law — saddling condo owners with millions of dollars in mandated preventative repairs, and with Florida's housing affordability crisis leaving few alternatives, many now find themselves displaced with nowhere to go. The crux of the financial burden lies in a provision that from Jan. 1, 2025, onward, associations must base their budgets on findings from the most recent structural integrity reserve study. Essentially, they can no longer choose to underfund reserves intended for critical structural repairs and maintenance identified in these studies.

The Dec. 31 deadline mandated by SB4D and SB154 could cause widespread chaos and disruption for many of Florida's 25,000 condo associations.

 

This reserve funding requirement means countless condo owners now potentially face multimillion-dollar special assessments to make up for past shortfalls in underfunded structural reserve budgets. Assessments of $50,000 to $150,000 per unit — representing up to 40% of a condo's value — are becoming increasingly common.

Buildings like The Cricket Club in Miami already exemplify the crisis, offering units at a 50% discount due to special assessments exceeding $100,000 per unit on top of regular fees. It's imperative that condo boards and owners take responsible action now to ensure full compliance ahead of the Dec. 31 deadline.

SB4D mirrors legislation passed following Hurricane Andrew's devastating impact in South Florida in 1992, which required subsequent upgrades to Florida building codes. Similar to post-Hurricane Andrew, local authorities and building departments must now enforce stringent condo safety procedures under SB4D.

However, structural concrete maintenance is much more complex than new construction. Unfortunately, the severity of degradation can often only be defined when concrete is removed, akin to restoring an old car — "you can't see it until you open the hood." This unpredictability contributes to ballooning restoration costs.

Interpretation and enforcement of building codes fall under the authority having jurisdiction, which is typically the local building department. Some counties like Miami-Dade and Broward have already revised existing requirements for all commercial buildings 40 years or older to match the milestone standards set for condos. This means hotels, office buildings, and all asset classes will need structural inspections and certifications aligned with the milestone criteria. Whether larger building departments in cities like Tampa, St. Petersburg, West Palm Beach and Orlando/Orange County will follow suit remains to be seen.

By being proactive, condo associations can create a safer, more transparent living environment while properly addressing Florida's unique environmental challenges that accelerate structural deterioration. The aim of these new regulations is to prevent lapses like those that enabled the Champlain Towers tragedy. However, the costs of making up for decades of underfunding cannot be ignored.