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SB 154 – PART THREE – NEW LAWS
By
Eric Glazer, Esq.
Published May 29, 2023
Again, in a budget adopted by an association that is required to
obtain a structural integrity reserve study, reserves must be
maintained for these items:
a. Roof.
b. Structure, including load-bearing walls and or other
primary structural members and primary structural systems as
those terms are defined in s. 627.706.
c. Floor.
d. Foundation.
e. Fireproofing and fire protection systems.
f. Plumbing.
g. Electrical systems.
h. Waterproofing and exterior painting.
g. Windows and exterior doors.
h. 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
sub-subparagraphs a.-g. as determined by the licensed
engineer or architect performing the visual inspection
portion of the structural integrity reserve study.
This applies only where the association is responsible for these
items pursuant to the declaration of condominium, and the
reserve amount for such items must be based on the findings and
recommendations of the association’s most recent structural
integrity reserve study. With respect to items for which an
estimate of useful life is not readily ascertainable or with an
estimated remaining useful life of greater than 25 years, an
association is not required to reserve replacement costs for
such items, but an association must reserve the amount of
deferred maintenance expense, if any, which is recommended by
the structural integrity reserve study for such items. So,
it’s now up to the reserve guy who may say a useful life cannot
be ascertained or the estimated life is greater than 25 years
and therefore no reserve for these items are necessary.
The association may adjust replacement reserve assessments
annually to take into account an inflation adjustment and
any changes in estimates or extension of the useful life of a
reserve item caused by deferred maintenance. The members of a
unit-owner controlled association may determine, by a
majority vote of the total voting interests at a duly called
meeting of the association, to provide no reserves or less
reserves than required by this subsection. This is a change
from a majority vote of only a quorum. This only applies until
2026.
For a budget adopted on or after Effective December 31, 2024,
(So starting in 2026) the members of a unit-owner controlled
association that must obtain a structural integrity reserve
study may not determine to provide no reserves or less reserves
than required by this subsection for items listed in paragraph
(g), except that members of an association operating a
multicondominium may determine to provide no reserves or less
reserves than required by this subsection if an alternative
funding method has been approved by the division.
Reserve funds and any interest accruing thereon shall remain in
the reserve account or accounts, and may be used only for
authorized reserve expenditures unless their use for other
purposes is approved in advance by a majority vote of all the
total voting interests. This is a change from a majority vote
of only a quorum.
For a budget adopted on or after Effective December 31, 2024,
members of a unit-owner-controlled association that must obtain
a structural integrity reserve study 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
the replacement or deferred maintenance costs of the
components listed in paragraph (g).
So mandatory SIRS RESERVES START IN 2026
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About
HOA & Condo Blog
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Eric Glazer graduated
from the University of Miami School of Law in 1992 after
receiving a B.A. from NYU. He has practiced community
association law for three decades and is the owner of
Glazer and Sachs, P.A. a five attorney law firm with
offices in Fort Lauderdale and Orlando.
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Eric is Board Certified by The Florida Bar in
Condominium and Planned Development Law.
Since 2009, Eric has been the host of Condo Craze
and HOAs, a weekly one hour radio show that airs at 11:00 a.m.
each Sunday on 850 WFTL.
See:
www.condocrazeandhoas.com.
Eric is the first attorney in the State of
Florida that designed a course that certifies condominium and
HOA residents as eligible to serve on a Board of Directors and
has now certified more than 20,000 Floridians all across the
state. He is certified as a Circuit Court Mediator by The
Florida Supreme Court and has mediated dozens of disputes
between associations and unit owners. Eric also devotes
significant time to advancing legislation in the best interest
of Florida community association members.
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