Condominium Advisory Group offers consultancy services to navigate new condo laws and deadlines
The new year is here, and the countdown to the deadlines associated with Senate Bill 4-D has begun. As 2024 unfolds, Florida’s community associations are facing pivotal deadlines and transformative changes brought about by Senate Bill 4-D. This legislation, which became law in 2022, signals a significant departure from past practices in managing reserve funds.
By December 31, 2024, associations across the state are mandated to adhere to two crucial requirements: the cessation of waiving reserve contributions and the completion of a Structural Integrity Reserve Study (SIRS).
As an association, you must examine the financial impacts of the new laws and how they affect your property to determine the best course of action.
These mandates impose a huge financial and logistical burden on COAs as they rush to collect funds and determine construction-related needs. Our team can ease this burden through our financial and construction consultancy services that allow our experts to guide you through the complicated process of complying with the new mandates.
The End of Waiving Reserve Contributions
One core tenet of Senate Bill 4-D prohibits waiving reserve contributions by community associations. This shift in policy emphasizes the need for responsible financial planning and ensures that associations allocate funds toward the long-term well-being of their properties. By eliminating the option to defer contributions, the legislation encourages associations to prioritize the maintenance and upkeep of essential components, preventing the accumulation of deferred maintenance issues.
Associations are urged to review their financial policies and adjust their budgets accordingly to align with the new mandate. Our team of experts can help your association determine the best course of action.
Structural Integrity Reserve Study (SIRS) Requirement
CAG’s financial and construction consultancy services can also assist your COA with navigating the Structural Integrity Reserve Study (SIRS) Requirement.
In tandem with the cessation of waiving reserve contributions, community associations must complete a Structural Integrity Reserve Study (SIRS) by December 31, 2024. This comprehensive study is designed to assess the physical condition of a community’s assets, providing a roadmap for effective maintenance and capital planning.
The SIRS involves a meticulous examination of buildings, infrastructure, and common areas to identify potential issues before they become critical. Associations are required to collaborate with qualified professionals to conduct the study, ensuring a thorough and unbiased assessment of their properties. The findings of the SIRS will guide associations in making informed decisions about the allocation of reserve funds and prioritizing maintenance projects based on urgency and importance.
Adapting to Change
As the deadlines for Senate Bill 4-D approach, community associations are urged to adapt to these changes proactively. Associations must communicate transparently with residents, providing information about the new requirements and the benefits they bring to the community as a whole.
Associations should also seek out professionals experienced in conducting Structural Integrity Reserve Studies to ensure compliance with the legislation and to gain valuable insights into the state of their properties. This proactive approach not only helps meet legal obligations but also positions associations for long-term success in terms of financial health and community well-being.
Conclusion
The 2024 deadlines associated with Florida’s Senate Bill 4-D represent a turning point for community associations.
As the deadlines approach, it is essential for associations to navigate these changes with diligence, transparency, and a commitment to the well-being of their communities.
The new mandates set up by SB 4-D can be complicated for Florida associations to navigate, but it can be stress-free with the right partner to guide you. Our team has the knowledge and experience to assess and determine your association’s best course of action.
About Condominium Advisory Group
With the support of our reserve advisor, contractor, and real estate attorney partners, Condominium Advisory Group (CAG) has the knowledge and experience to assess and determine the best course of action for Condominium Owners Associations affected by the passage of Florida Senate Bill 4-D. Unlike commercial brokers who are solely focused on selling condos, CAG will be there to determine the best course of action for your unique circumstances, whether it be undergoing a deconversion, receivership, or construction. Learn more about Condominium Advisory Group at https://www.coadvisorygroup.com/.
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