What is FL SB-4D?
Florida SB-4D is a piece of legislation that addresses condominium building inspections and reserve requirements. It was signed into law by Governor DeSantis on May 26, 2022.
If a building is three or more stories in height and is located within three miles of a coastline, a condominium association must have a milestone inspection performed by December 31 of the year in which the building reaches twenty-five years of age, based on the certificate of occupancy date, and every ten years thereafter.
If a milestone inspection is required under this statute and the building’s certificate of occupancy was issued on or before July 1, 1992, the building’s initial milestone inspection must be performed before December 31, 2024.
A milestone inspection consists of two phases:
Phase One - For the phase one milestone inspection, a licensed architect or engineer must perform a visual examination of the building, including the major structural components, and provide an assessment of its condition. If they find no signs of substantial structural deterioration upon visual examination, phase two of the inspection is not required.
The architect or engineer who completes a phase one milestone inspection will also prepare and submit an inspection report.
Phase Two - A phase two milestone inspection must be performed if any substantial structural deterioration is identified during phase one. A phase two inspection may involve destructive or non-destructive testing at the inspector’s direction.
The inspector who completes a phase two milestone inspection will prepare and submit an inspection report.
Post-milestone inspection requirements:
Upon completion of a phase one or phase two milestone inspection, the architect or engineer will submit a copy of the inspection report with a separate summary of the material findings. Recommendations will be made to the condominium association and to the building official of the local government, and this agency may prescribe timelines and penalties with respect to its compliance. Upon completion of a phase one or phase two milestone inspection and receipt of the inspection report, the association will distribute a copy of the summary to the membership.
Structural Integrity Reserve Studies (SIRS) and Mandatory Reserves:
A SIRS is a study of the reserve funds required for future major repairs / replacements of the common areas based on a visual inspection of all condominium buildings three stories or higher (regardless of age).
At minimum, the study must contain the following items as related to the structural integrity and safety of the building:
1. Load-bearing walls or other primary structural members
2. Roof
3. Floor
4. Foundation
5. Fireproofing and fire protection systems
6. Plumbing
7. Electrical systems
8. Waterproofing and exterior painting
9. Windows
10. Any other item that has a deferred maintenance expense or replacement cost that exceeds $10,000 and the failure to replace / maintain such item negatively affects the items as determined by the SIRS.
A SIRS will identify the common areas being inspected and state the estimated remaining useful life and the estimated replacement cost. Additionally, it will provide a recommended annual reserve amount that achieves the estimated replacement cost by the end of each area’s estimated remaining useful life. Owners may not vote for no / partial reserves for items set forth in the SIRS report as stated in SB-4D.
Sellers of Units:
Once available, the seller of a condominium unit must provide to potential purchasers a copy of the summary of the milestone inspection report and a copy of the association’s most recent structural integrity reserve study.