Title: Senate Bill 4D (SB4D), Senate Bill 154 (SB154), and the requirements for Structural Integrity Reserve Studies (SIRS).

Summary: This blog post discusses the significant legislative changes impacting community associations and their reserve studies in the current year. It focuses on Senate Bill 4D (SB4D), Senate Bill 154 (SB154), and the requirements for Structural Integrity Reserve Studies (SIRS). Here are the key points covered:

1. **SB4D Jurisdiction**: SB4D affects a wide range of community associations. To determine if your association is subject to SB4D, consider factors like the operational timeline (before July 1, 2022) and building height (3 stories or higher).

2. **SB154 ("Glitch Bill")**: SB154 introduced some changes to reserve studies but largely retained existing procedures. It promised extended timelines, less stringent rules, and clarifications.

3. **Fully Funding Reserves**: "Fully funding reserves" means having enough financial resources to cover projected maintenance, repair, and replacement costs for assets over $10,000. This prevents the need for special assessments or property value impact.

4. **Components Covered by SIRS**: The Structural Integrity Reserve Study mandates reserves for specific components, including the roof, exterior painting, electrical systems, fire systems, plumbing systems, doors/windows, load-bearing walls, and other elements over $10,000 impacting structural integrity.

5. **Separation of Structural Funds**: Structural funds cannot be mixed with non-structural funds, ensuring that funds allocated for structural components are used exclusively for those purposes.

6. **Waiving Reserves**: SB4D and SB154 prohibit waiving reserves for structural components, though reserves for non-structural items may still be waived by a majority vote.

7. **Frequency of SIRS**: A Structural Integrity Reserve Study must be conducted every 10 years, but annual updates for all required studies are recommended due to economic uncertainties and fluctuating costs.

8. **Effective Dates**: As of December 31, 2024, associations cannot vote to waive reserves, and reserve funds collected for structural items listed in a SIRS cannot be used for other purposes. This requires proactive planning.

9. **Closing Thoughts**: Understanding and complying with SB4D and SB154 is crucial for the financial health of community associations. Collaborating with management companies and adhering to these regulations ensures preparedness for future maintenance and repair needs.

This information provides a comprehensive overview of the legislative changes and requirements affecting community associations and their reserve studies.

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