The June 24, 2021, Champlain Towers collapse in Surfside was among the most lethal structural building failures this nation has ever witnessed, resulting in 98 lives lost. In the wake of this tragedy, there were many unanswered questions and concerns regarding safety and structural integrity. These concerns prompted parties to seek judicial relief via the filing of negligence claims and shareholder derivative actions. The Community Associations Institute (“CAI”), an international authority in community association education, governance, and management, recognized these concerns and considered policy reform recommendations related to building inspections, budgeting, reserve funds and risk management.
Subsequent to the collapse, CAI’s Government and Public Affairs Committee organized a special meeting with attorneys, insurance and risk management professionals, developers, engineers, architects, reserve specialists, community association managers, and owners to appoint three task forces. The goal of the task forces was to explore possible changes to existing law and recommendations of best practices for community associations to avoid tragedies of this sort in the future, and additionally, to provide a framework for legislators seeking to address building safety in their districts.
Throughout a three-month period, over 600 participants joined CAI’s efforts through conversations, surveys, research, and interviews. The task forces submitted a final report of public policy recommendations to the CAI Government & Public Affairs Committee, and final approval was then obtained by the CAI Board of Trustees. The report contained specific policy recommendations with three overarching categories: reserve studies and funding; building maintenances and structural integrity. Recommendations included the requirement for periodic baseline inspections to monitor a building’s structural integrity, the use of well delineated protocols found in the American Society of Civil Engineers Guideline for Structural Condition Assessment of Existing Buildings (SEI/ASCE 11-99), guidance for the disclosure of information concerning building safety, repair and maintenance to owners and residents, and recommendations to community association boards pertaining to funding necessary projects through special assessments. CAI’s goal is for these recommendations to be adopted into state law in keeping with its vision for the development, governance, and management of community associations.
In Florida, the Condominium Act (i.e., Chapter 718, Florida Statutes) has no express maintenance and repair standards or requirements for residential condominiums, unlike protocols imposed upon commercial buildings, despite that the Act, pursuant to Fla. Stat. § 718.113(1), provides that maintenance of the common elements is the responsibility of the association. Furthermore, Florida has no state-wide post-occupancy structural inspection requirement. While Miami-Dade and Broward Counties require a condominium to be inspected at the 40-year mark after initial certification and reinspected every 10 years thereafter, critics argue that the length of time between inspections is too lengthy.
In addition to the public policy recommendations contained in the CAI report, on October 12, 2021, the Florida Bar’s Condominium Law and Policy Life Safety Advisory Task Force issued its own report recommending the following: (1) expanding the Condominium Act to include structural maintenance, repair and replacement requirements, including, specifically waterproofing requirements; (2) amending the Act to shield associations from liability for alternative housing costs and lost rental profits when residents are required to vacate during necessary repairs; (3) clarifying the Act’s material alteration language to carve out an exception for necessary maintenance and repairs which may otherwise require an affirmative unit owner vote; (4) amending the Act to provide that limitations on a board’s authority to levy special assessments or borrow money for necessary repairs are against public policy, and therefore void; (5) amending Fla. Stat. 718.301 to require a developer’s turnover report to include maintenance protocols; (6) creating a private cause of action for unit owners in the event of an association’s failure to perform necessary work, including the appointment of a receiver; (7) amending the Act to require reserve studies (i.e., a determination of the amount of money to be allocated in an association’s budget for capital improvements) and deferred maintenance budget reserves, among several others.
In light of the Report’s extensive recommendations, it is likely that we will see significant changes to the Condominium Act in the future. Given that there are approximately 27,000 condominium associations statewide and approximately 3.5 million Florida condominium residents, the task force reports and recommendations provide invaluable resources to help prevent a tragedy like the Champlain Towers collapse from occurring again, in part, by educating directors, officers, property managers, and unit owners regarding their respective obligations when issues pertaining to life-safety arise. Our Firm remains able to assist as these necessary reforms are implemented.
For additional information, please contact Evelyn Greenstone Kammet at egreenstone@florida-law.com.