Dec. 31 deadline for condo inspections
Condo associations are required to submit what’s called a Milestone Inspection report that determines whether buildings show signs of substantial structural deterioration. They must also obtain a separate report, called a Strategic Integrity Reserve Study. It estimates the remaining lifespans of such components as roofs, structural elements, fire protection systems, plumbing, electrical systems, exterior painting and waterproofing and windows, and determines how much money associations must fund for future repairs or replacements.
Part of the issue is:
“Thirty, sometimes 40 years have passed and we’re seeing the same person when they weren’t 80 but they were 40, joined in and voting to waive reserves and never put any money away for any repairs or replacements, and never asked, and very often maybe served on the board or had a position and wanted all the economies of scale and benefits of multifamily living with zero of the burden,” he said.
Ideas and some help:
“It took 30 to 40 years for some of these problems to flare up and they want to solve it in one year,” Ensey said. “They want new reserves put in — full reserves that are mandatory — and they want it by the end of this year,” Ensey said.
But Senate President Kathleen Passidomo, in her August letter, said condo associations won’t be required to accumulate all of the funds “necessary to account for the remaining useful life for each reserve component” — such as electrical and plumbing systems — “by 2025.”
“Unless there is an immediate safety problem, the law does not require reserves to be fully funded at the completion of the reserve study,” she wrote. “The amount that needs to be reserved is calculated based on the estimated remaining useful life and estimated replacement cost of the item.”
If the cost to replace a roof in 10 years is $100,000, she wrote, the association is not required to immediately fund the full $100,000. “Instead, the association must reserve sufficient funds each year to have the required funding available at the time of anticipated repairs.”
