House Bill 913 UPDATE 2

This is our second article in a series of articles addressing the breadth of changes to Chapter 718 (Condominiums); Chapter 719 (Cooperatives); and Chapter 468, Part VIII (CAMs and CAM Firms) that will take effect upon HB 913 becoming law. On June 18th, HB 913 was transmitted to the Governor. It is expected that he will sign the bill into law after receiving it. If the bill becomes law, it will take effect on July 1, 2025.

This second article addresses changes to the Milestone Inspection and SIRS requirements. It should be noted that this article is summary in nature and has been compiled to identify provisions which are of extra importance to our condo and cooperative association clients. Because it is summary in nature, this article should not be relied upon as a definitive guide for any condominium association or cooperative association.  

HB 913 SUMMARY – PART II

SIRS & MILESTONE INSPECTIONS
 

Milestone Inspections: (Condos & Co-Ops with buildings of 3 or more habitable stories) 

• Adds “habitable” to the number of stories needed to be subject to the milestone inspection requirement (“three habitable stories or more in height”) 

• New disclosure requirements: 
  - architect / engineer who bids on the milestone inspection must disclose if she/he intends to bid on any recommended repairs
  - architect / engineer / contractor who bids on repairs must disclose any interest in the company that did the milestone inspection
  - Failure to disclose: Contract is voidable by the association & architect / engineer / contractor is subject to potential DBPR discipline

• Each city / town / county must submit the following info to the DBPR each year:
  - # of buildings required to have a milestone inspection (phase 1 and/or phase 2)
  - # of buildings that have completed a phase 1 and/or phase 2 inspection
  - # of buildings given an extension to complete a phase 1 inspection
  - A list of buildings deemed unsafe or uninhabitable by a milestone inspection 

SIRS: (Condos & Co-Ops with buildings of 3 or more habitable stories)  

• Adds “habitable” to the number of stories needed to be subject to the SIRS requirement (“three habitable stories or higher in height”) 

• SIRS deadline is bumped back from 12/31/24 to 12/31/25   

• Entire SIRS (not just the visual portion) must be done by licensed architect, engineer, reserve specialist 

• New disclosure requirements:
  - architect / engineer / contractor who bids to do a SIRS must disclose if they intend to bid on any maintenance, repair, or replacement recommended in the SIRS
  - architect / engineer / contractor who bids to do any services recommended by SIRS must disclose any interest in the company that did the SIRS
  - Failure to disclose: Contract is voidable by the association & architect / engineer / contractor is subject to potential DBPR discipline   

• SIRS must, at a minimum, include recommendation for baseline funding plan sufficient to keep reserves above $0.00 

• if SIRS includes non-structural reserves, those have to be identified separately from structural reserves 

• must take into account the association’s funding method(s) (i.e., regular assessments, special assessments, lines of credit, or loans) 

• SIRS may be updated to reflect changes in useful life and the effect repairs/replacement will have 

• Association must adopt an updated SIRS before adopting any budget in which reserve funding from regular assessments, special assessments, lines of credit, or loans do not align with the funding plan from the most recent SIRS 

• Exempts 4-family dwellings with 3 or few habitable stories above ground 

• allows the association to delay a SIRS for up to 2 years if the association completes a milestone inspection (or similar inspection based on a local requirement) to allow the association to focus its resources on the repairs required by the inspection 

• officer / director of the association must sign an affidavit acknowledging receipt of a completed SIRS

• DBPR must adopt a standardized form for a SIRS

Stay tuned for further updates and analysis on HB 913.