The collapse of the Champlain Towers South in Surfside, Florida, in 2021 was a heartbreaking tragedy. It claimed more than 90 lives and shook communities across the state. This disaster highlighted the urgent need for reform in how condos are managed and maintained.
Governor Ron DeSantis recently signed House Bill 1021 into law, commonly known as Condo 3.0. The new law aims to increase building safety and protect condo owners from board members' abuses.
Keep reading to learn more about what this means for Florida's condo residents...
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Key Takeaways
✅ New Safety Measures and Inspections: The Condo 3.0 law requires condo buildings three stories or higher to undergo Structural Integrity Reserve Studies every ten years, starting at either 25 or 30 years old depending on their proximity to the coast. These studies identify necessary repairs and enforce regular inspections for long-term safety. If a building’s 2025 budget is adopted after January 1, 2025, boards cannot waive or reduce funding for reserves – full compliance is required by the 2026 budget cycle.
✅ Increased Transparency for Owners: Condos with 25 units or more must create webpages displaying important documents like bylaws, budgets, and contractor lists by October 1, 2024. Associations with 25+ units now must launch an accessible online platform by January 1, 2026, with expanded recordkeeping requirements including emails, invoices, permits, and documentation of board training.
✅ Mandatory Training for Management: The new law mandates that condo managers complete four hours of education on association management. Board members also need to finish an educational curriculum within one year or within 90 days of appointment/election, ensuring responsible governance. All board members now must also complete one hour of continuing education each year.
✅ Stricter Oversight and Enforcement: HB 1021 grants the Department of Business and Professional Regulation (DBPR) $7.5 million annually to hire staffers for stricter enforcement actions against mismanagement or corruption in condos. This includes criminal penalties for kickbacks, fraudulent voting activities, and withholding records. DBPR’s authority has been expanded to include attending board meetings as observers, and enhanced conflict-of-interest rules have been instituted.
✅ Implementation Timeline: Most provisions take effect on July 1, 2024. Some transparency requirements start on October 1, giving associations time to adapt while aiming to prevent future incidents similar to the Surfside collapse. Additional deadlines have been clarified, including the new online record posting requirement effective January 1, 2026.
Brief overview of the Surfside tragedy and the need for condo law reform
The collapse of the Champlain Towers South condo in Surfside, Florida, on June 24, 2021, highlighted severe flaws in existing condo regulations and underscored the urgent need for change.
Many blamed poor maintenance and lax oversight for this disaster.
Governor Ron DeSantis signed House Bill 1021 (HB 1021), also known as Condo 3.0 law. The bill aims to improve building safety by addressing gaps that previously allowed issues to fester unchecked.
It empowers the state's Department of Business and Professional Regulation (DBPR) with greater authority to enforce stricter standards and transparency for condo associations. These reforms intend to prevent another tragedy like Surfside from ever happening again.
Governor DeSantis signs House Bill 1021 (HB 1021) - Condo 3.0 into law
Governor Ron DeSantis signed House Bill 1021 (HB 1021), known as Condo 3.0, into law on June 14, 2024. The bill was worked on by Fleming Island Republican Sen. Jennifer Bradley and co-sponsored by Miami Democratic Sen. Jason Pizzo This new legislation aims to address issues revealed by the Surfside tragedy in South Florida and enhance condo safety and governance.
This bill was unanimously passed by the Florida Legislature in March and includes a $7.4 million allocation for additional staffing and enforcement. These measures seek to improve protections for Florida condo owners while holding management accountable, with a $7.4 million allocation, including $6.1 million recurring and $1.3 million nonrecurring funding.
The law takes effect on July 1, 2024, bringing significant changes to structural integrity requirements and reserve funding mandates for condo associations across Miami-Dade County and beyond.
The law takes effect on July 1, 2024, bringing significant changes to structural integrity requirements and reserve funding mandates for condo associations across Miami-Dade County and beyond, with some transparency requirements starting on October 1, 2024.
Key Provisions of HB 1021 (Condo 3. 0)
Florida's new condo law, signed by Governor Ron DeSantis, aims to improve building safety and governance. The law requires Structural Integrity Reserve Studies every ten years for condos three stories or higher.
These studies identify key repairs needed for the future.
Managers and board members must now complete training courses on their roles and responsibilities. More transparency is enforced; condos must set up websites to post important documents like bylaws and budgets.
Strict rules are also in place against corruption within condo boards to maintain fairness in managing funds and operations. Additional clarifications and new requirements have been integrated throughout the following sections.
Structural Integrity Reserve Studies and Mandatory Reserve
Under HB 1021, condo buildings three stories or higher must undergo milestone inspections. These inspections are required at 30 years old and every ten years after. Inspections for buildings within three miles of the coast start at 25 years old and occur every ten years after that.
A Structural Integrity Reserve Study (SIRS) is mandatory. This study includes visual inspections of major components like roofs, plumbing, and electrical systems. The SIRS also outlines a schedule for repairs to ensure long-term safety.
While the law requires condo associations to fund reserves, it does allow for some flexibility in the process. Associations must follow a more stringent procedure to waive or reduce reserve funding, which includes obtaining approval from a majority of the unit owners.
Condo associations must provide detailed financial reporting, including monthly income and expense statements along with annual reports. These regulations will help protect condo owners by ensuring their buildings remain safe and sound over time.
If a condo’s 2025 budget is adopted on or after January 1, 2025, the board may no longer waive or reduce funding, with full compliance required by the 2026 budget cycle.
Increased Transparency
Condo owners will now have greater access to important documents. HB 1021 requires condos with 25 units or more to set up webpages displaying bylaws, budgets, and contractor lists.
This new rule aims to make everything clear and easy to find.
Building records must also be posted online for all owners to see. The law mandates that these building records go public, ensuring everyone stays informed about the property's condition.
These steps mean less guesswork and better decisions for condo buyers, real estate investors, and realtors alike. Associations with 25+ units now must launch an accessible online platform by January 1, 2026, with expanded recordkeeping that includes emails, invoices, permits, and board training documentation.
Regulations for Managers & Board Members
The new Condo 3.0 law mandates that condo managers undergo four hours of education on how to run a condo association. Directors must also complete an educational curriculum within one year or within 90 days of their appointment or election.
These requirements ensure that everyone involved has the knowledge they need to manage condo buildings effectively and ethically. The bill also includes anti-SLAPP provisions preventing associations from using funds for lawsuits against unit owners related to their right to petition or free speech on association matters.
The bill revises Florida’s anti-SLAPP laws, preventing board members from using association funds for defamation actions. It grants the Department of Business and Professional Regulation more power to investigate wrongdoing by boards and includes criminal penalties for kickbacks, fraudulent voting activities, and withholding records.
This will lead to more accountable governance in condos across Florida, as the new law prevents associations from using funds for any claims against unit owners based on their right to petition or free speech related to association matters.
All board members now must also complete one hour of continuing education annually.
Strengthened Enforcement
Governor Ron DeSantis signed House Bill 1021 to bolster condo laws in Florida, granting the Department of Business and Professional Regulation (DBPR) more power to enforce these rules. The bill includes a $7.5 million annual allocation for the DBPR to hire 62 new staffers dedicated to investigating mismanagement and corruption in condo associations.
Under this law, the Division of Condominiums has enhanced authority to remove board members found guilty of fraud or conflicts of interest. The funding for these enforcement actions consists of $6.1 million in recurring funds and an additional $1.3 million one-time allocation, ensuring strong oversight and compliance with safety standards to prevent future tragedies like the Surfside collapse.
“For further clarification on these legal provisions, consider consulting condominium law experts.” DBPR now has the authority to attend board meetings as observers and enforce new conflict-of-interest protocols.
Timeline for Implementation
Most changes from HB 1021 will kick in on July 1, 2024. Some transparency rules will start on October 1, 2024, giving condo associations time to get ready and comply with the new standards.
Most provisions effective July 1, 2024
Many of the new regulations under HB 1021 will take effect on July 1, 2024. This allows condo associations time to prepare for these significant changes. Key aspects include mandatory inspections for buildings over 30 years old and the requirement to build up reserve funds by December 31, 2024.
These measures aim to prevent another tragedy like the Surfside condominium collapse.
Condo board members must ensure compliance with these provisions. They have until December to complete their first structural reserve study. Transparency is also a major focus—condo boards must set up web pages displaying important documents like bylaws and financial statements by October 1, 2024.
Note that some online transparency requirements for associations with 25+ units now extend to January 1, 2026.
Some transparency requirements begin October 1, 2024
Some transparency requirements in Florida's new Condo 3.0 law will begin on October 1, 2024. This phase targets greater public access to crucial building records. These changes prohibit condo board members from using association funds for defamation lawsuits, ensuring accountability and protecting owners' rights.
Condo buyers, real estate investors, and realtors should prepare for these upcoming rules. The guidelines aim to foster trust by promoting openness within condo associations. Enhanced transparency makes it easier to inspect financial and structural documents before making investment decisions.
The new website mandate for 25+ unit associations now extends to January 1, 2026.
Deadline for existing buildings to complete first structural reserve study
The deadline for existing condo buildings to complete their first structural integrity reserve study is December 31, 2024. This requirement ensures that each building has a clear understanding of its structural needs and financial responsibilities.
Missing this deadline counts as a breach of the board’s fiduciary duty. Associations are mandated to conduct these comprehensive studies every ten years.
These new regulations came in response to the tragic collapse in Surfside, aiming to prevent future accidents. Reserve funding requirements become non-negotiable if the 2025 budget is adopted after January 1, 2025, with full compliance required by the 2026 budget cycle.
Condo owners must be aware that failure to adhere may result in significant legal consequences for their associations. Ensuring compliance will not only meet legal obligations but also enhance safety and property values over time.
Impact on Condo Owners & Associations
Condo owners might see higher fees to meet new reserve fund rules. More transparency will protect owners better and prevent misuse of funds. Safety checks will improve building conditions, boosting property values in the long run.
Meeting these standards could be hard for condo boards, but they must comply to ensure safety and trust.
Greater protections for owners through transparency and oversight
House Bill 1021 (HB 1021) ensures condo owners receive greater protection through increased transparency and oversight. The DBPR now has jurisdiction to step in when mismanagement or corruption occurs, giving owners a clear avenue to voice concerns. New anti-SLAPP provisions safeguard owners from being silenced for raising valid concerns.
This gives owners a clear avenue to address their concerns.
Condo boards can't use defamation lawsuits to silence dissent anymore. New rules require managers and board members to follow strict guidelines, ensuring accountability. These measures aim to build trust among residents and protect property values over time.
Potential for increased condo fees to fund required reserves
The law mandates that condo associations set aside funds for structural repairs, which may lead to higher fees. Board members are now personally liable if reserve requirements are not met, ensuring sufficient funding is set aside.
Recent DBPR guidance clarifies the timing of reserve funding, emphasizing full compliance by the 2026 budget cycle.
Long-term benefits for building safety and property values
Improved building safety will attract more buyers, as the new standards enhance property conditions and security. Well-maintained buildings with clear reserve funds are more valuable, making condos a smart investment.
While short-term financial impacts may be challenging, long-term safety and property value improvements are expected.
Challenges for associations in complying with new requirements
Condo associations face big challenges with the new Condo 3.0 law. The requirement for Structural Integrity Reserve Studies and mandatory reserves means more administrative work. Many will need to raise condo fees to meet these costs, making housing less affordable.
This could cause confusion and disputes among owners about common area control.
Education requirements for condo managers and board members add another level of complexity. Associations must ensure that everyone understands their new roles and responsibilities under the law, which can be time-consuming.
Mixed-use condos present unique issues, leading to potential legal battles between owners, associations, and developers over property rights defined in declaration documents.
New language now clarifies responsibilities in mixed-use or vertical subdivisions to reduce ambiguity.
Bennett Capital Partners Mortgage Florida Condo Specialists
Bennett Capital Partners has been helping people in the Florida condo market for over 20 years. They serve clients all over Miami and the state, providing specialized real estate financing for both homes and businesses.
They offer many types of mortgages, including FHA, VA, conventional, and jumbo loans. Their deep knowledge of Florida condo regulations, like the new HB 1021, helps condo owners and associations stay informed and compliant.
With their expertise, Bennett Capital Partners ensures that every client gets the best advice and service.
Our Experience in the Florida condo market
Bennett Capital Partners has over 20 years of experience in the Florida condo market. They have served thousands of clients, focusing on specialized mortgage solutions for condos. Their expertise helps navigate the unique challenges and opportunities that come with Florida’s condo landscape.
With detailed knowledge of regulations, Bennett Capital Partners ensures compliance with new laws like HB 1021. They help clients understand requirements for structural reserve studies and mandatory reserves.
By staying updated on current condo news and guidelines, they provide valuable insights to condo buyers, real estate investors, and realtors alike.
Stay up to date on current condo news and guidelines
Condo buyers, real estate investors, and realtors must stay current on the latest condo regulations and news. Following developments like House Bill 1021 (HB 1021), known as Condo 3.0, helps them avoid penalties and stay compliant with new laws.
Governor Ron DeSantis signed this bill to defend the rights of condo unit owners against board member abuses. The law creates new education requirements for condo managers and demands more transparency.
Bennett Capital Partners Mortgage keeps clients informed through regular updates like newsletters, blog posts, and social media. They offer expert advice on the latest developments in condo regulations so clients can navigate changes smoothly.
Condos with 25 units or more now need webpages with important documents due to HB 1021's provisions, making compliance essential for avoiding fines and ensuring safety standards are met.
Contact Bennett Capital Partners Mortgage to access these valuable resources today!
Contact Us
Bennett Capital Partners is here to assist with all your condo financing needs. Reach out by phone at (800) 457-9057 or email info@bcpmortgage.com. Visit our office on Brickell Ave in Miami for a face-to-face consultation.
Our experienced team offers personalized service and expert guidance. Whether you’re buying, investing, or need advice on the latest condo regulations like HB 1021—Condo 3.0—we're ready to help.
Get in touch today!
Conclusion
Understanding the new Condo 3.0 law is crucial for all condo owners and associations in Florida. This law aims to improve safety and transparency, which benefits everyone involved.
It introduces new rules on structural studies, reserve funds, training for board members, and more oversight.
Adapting to these changes might seem hard at first. But, they will lead to safer living conditions and better property values in the long term. Bennett Capital Partners Mortgage is here to help with these updates—ensuring you remain informed and compliant.
While there are short-term challenges such as increased fees, the long-term benefits promise a safer and more resilient condo market.
FAQs
What is the "Condo 3.0" law?
Ron DeSantis signed the "Condo 3.0" law on Friday June 17, 2024. It aims to make Florida's condo associations safer and more transparent.
Who spearheaded this bill?
Miami Republican State Rep Vicki Lopez led the effort. The bill aims to improve condo oversight and management.
What are some key provisions of the new law?
New board members must undergo four hours of training and condos with 25+ units must set aside reserves for repairs, among other measures. Enhanced transparency, updated reserve funding deadlines, and expanded recordkeeping requirements are also key provisions.
How does this law impact condo owners?
The law gives condo owners more rights and ensures board members cannot avoid their duties through loopholes. Owners now enjoy greater protections through anti-retaliation provisions and improved transparency.
Will there be funding for these changes?
Yes! Condo boards will receive funding to enforce these new laws. DBPR’s $7.5 million annual allocation supports enforcement, and additional grant programs like the My Safe Florida Condominium Program are now available.
Why was this law created?
This bill also addresses complaints from condo owners. They are about bad board members. The complaints follow incidents like the 2021 collapse of the Champlain Towers South building in Surfside.
Philip Bennett
Philip is the owner and principal mortgage broker at Bennett Capital Partners, Business NMLS# 2046828. He earned his degree in Accounting and Finance from Binghamton University and holds a Master's Degree in Finance from NOVA Southeastern University. With over 20 years of experience in the mortgage industry, Philip has been a leader in his field and has personally originated over $2 billion in residential and commercial mortgages.
Learn more about Philip Bennett's background and experience on our Founder's page. Whether you're a first-time homebuyer or a seasoned real estate investor, our team is here to help you achieve your real estate goals. Don't wait any longer; contact us today and let us help you find the right mortgage for your needs.
Sources
Florida's New Condo Law Hailed as 'Game-Changer' | Newsweek
A Year After the Surfside Collapse, Florida’s Condo Safety Act | New America
Gov. DeSantis signs ‘Condo 3.0’ bill aimed at boosting board accountability, building safety | Florida Politics
DeSantis signs law to overhaul condo transparency, accountability, safety. Here's what changed | TC Palm
