The primary ‘Action Items’ of Senate Bill 4-D passed in May of 2022 involve:

  • An amendment to the Milestone Inspection Requirements
  • A requirement to conduct a Structural Integrity Reserve Study
  • A clear statement of responsibility for Board Members, including being held personally liable for failing to perform their fiduciary duties.

Milestone Inspection Amendments: Passed in May of 2022 the Florida Senate Bill 4-D changed and clarified the deadline dates for Milestone Inspections as stipulated by the earlier Senate Bill 1702. Please note that the later 2023 Senate Bill SB154 will subsequently alter the deadlines and criteria of the chart below. Criteria changed by Senate Bill 154 May 2023. Please refer to the section on Senate Bill 154, click here to view.

Structural Integrity Reserve Study: Senate Bill 4-D also set two additional requirements of critical importance to Florida Condominium Owners, namely:

All condominium or cooperative buildings 3-stories or higher in Florida must conduct a Structural Integrity Reserve Study by December 31st, 2024, and every ten years thereafter.

Moreover, the previous option for Homeowner Associations to not fully fund these Structural Reserves identified in the study will no longer be allowed as of December 31st, 2024. Monies collected for Structural Reserves may only be used for the item for which it has been earmarked. In essence, there is no option for the pooling of monies for the Structural Reserve Items.

Structural Integrity Reserve Study – Elements

An association must have a structural integrity reserve study completed at least every 10 years after the condominium’s creation for each building on the condominium property that is three stories or higher in height which includes, at a minimum, a study of the following items as related to the structural integrity and safety of the building:

  • Load-bearing walls or other primary structural members.
  • Fireproofing and fire protection systems.
  • Electrical systems.
  • Waterproofing and exterior painting.

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 subparagraphs a.-i., as determined by the licensed engineer or architect performing the visual inspection portion of the structural integrity reserve study.

Responsibility of Board Members:

It is a breach of a board member or officer’s fiduciary duty:

  • if the association fails to complete a structural integrity reserve study in a timely manner.
  • if an association fails to properly fund reserves related to items identified in the Structural Integrity Reserve Study.

Failure to comply with SB-4D can result in personal liability on the part of board members.

Note: Because SB-4D is a new law and still open to interpretation and commentary through the end of 2023, additional work may be required to comply with changes to the law as new information is issued by the Florida Legislature, Florida Building Commission and Florida State Fire Marshall.

Citing: https://www.thorntontomasetti.com/florida-sb4d-building-safety-lawere