The world of real estate laws can be a bit tricky to navigate, especially when it comes to the rules governing condominiums and cooperative buildings. One recent development that current and prospective homeowners need to be aware of is Senate Bill 154. This law brings significant changes to how condominium and cooperative buildings are managed, inspected, and insured. Let's unpack what this means for you as a homeowner.

Increased Inspection Requirements

One of the significant changes brought by the law is the revised milestone inspection requirements for condominium and cooperative buildings that are three or more stories in height. If your building is residential (or even partially residential), you'll have to adhere to these new requirements.

What's critical to know is that the responsibility of ensuring compliance and sharing the costs of the inspections falls on all owners, regardless of whether they own the entire building or just a part of it. If you happen to live in a building that has both residential and commercial parts, you still need to make sure that the building complies with these requirements.

If your building is 30 years old before the end of 2024, you need to have an inspection done by December 31, 2024. But don't worry if the inspection can't be completed on time due to valid reasons, as the law allows for an extension upon request.

Importance of Regular Communication

Communication is key when it comes to these new regulations. Condo or cooperative associations must notify unit owners about the inspection deadlines within 14 days of receiving the initial notice from the local agency. Additionally, a summary of the inspection reports must be distributed to unit owners within 45 days of its receipt by the association.

Insurance and Budget Changes

Insurance wise, all personal residential policies issued by the Citizens Property Insurance Corporation are not required to include flood coverage, which can make a big difference in your insurance policy costs.

In terms of association governance, any unit owner or a person they authorize now has the right to inspect the official records of the association. Also, if assessments increase by over 115%, insurance premiums are now excluded from the calculations that allow members to petition for a different budget.

New Reserve Funding Requirements

The law also brings changes to the reserve funding requirements for condominium and cooperative associations. Starting from January 1, 2025, associations must base their budgets on the findings and recommendations from their most recent Structural Integrity Reserve Study (SIRS).

Dispute Resolution and Turnover Process

Starting July 1, 2027, disputes related to the inspection or SIRS requirements can be resolved through mediation, offering a streamlined way to manage conflicts.

Also, the developer is now required to provide a turnover inspection report when they hand over the building to the association. What's new is that this report can be prepared not just by engineers and architects but also by reserve specialists and professional reserve analysts.

What This Means for Prospective Buyers

For those looking to buy a unit, the developer and non-developer must provide a turnover inspection report and a summary of the milestone inspection. Failing to do so gives the buyer the option to cancel the contract before closing.

In a nutshell, the new law brings changes designed to ensure better maintenance, increased safety, and more transparency for condo and cooperative buildings. While it does mean more requirements to comply with, it's all aimed at enhancing the living conditions and protecting the rights of homeowners like you. This may come at a cost of higher home owner association fees along the way.

If you are looking to purchase a condo yourself give us a call at the office at 727-376-6900 or click here to start your application today!