In a late special session, the Florida Legislature passed and the governor signed House Bill 5D that enacted significant changes to the Florida Condominium Act and several other sections of the laws of Florida. These amendments were enacted in response to the 2021 Champlain Towers disaster in which the condominium’s structure collapsed and 98 people died. The new laws impose new obligations and liability upon condominium associations regarding structural inspections of their condominiums, disclosure of the results of those structural inspections and the obligation to collect reserves to pay for maintenance and repairs of the structural components of the condominiums.

Many condominiums now abruptly face very large financial obligations to comply with the amendments to the condominium statute. Absent “curative” amendments, every association will be required to engage licensed engineers to prepare the milestone inspection and the structural integrity reserve studies that will be required no later than Dec. 31,2024. Simply obtaining these reports may be expected to cost associations tens of thousands of dollars. The funding of capital reserves which in many cases have been waived for years creates the requirement to retroactively fund those capital reserves. Depending upon the age and current condition of the condominium, such retroactive funding could run into hundreds of thousands of dollars. If an association’s milestone ispection reveals underlying conditions that must be remedied, such reconstruction could run into millions of dollars. Failure to obtain the reports, to fund the reserves or to perform the recommended reconstruction could result in fines levied against the association and even closure and condemnation of the condominium building, leaving unit owners without housing. Boards of directors should also be aware that the amendments create the possibility of personal liability on their part for noncompliance.

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