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1200 Park Central Blvd. S., Pompano Bch, FL | 954-928-0680
9121 N. Military Trail, Ste. 200, Palm Bch Gdns, FL  | 561-241-4462
1211 N. Westshore Blvd., Ste. 409, Tampa, FL | 813-375-0731

CAI Leadership Meets With HUD to Discuss Condo Safety

by Dawn Bauman, CAE and C. Scott Canady | Jun 9, 2022 | Federal Advocacy
This article is from the CAI Advocacy Blog, and can also be view HERE.

This week, CAI government and public affairs volunteers and staff met with leaders from the U.S. Department of Housing and Urban Development to discuss condominium safety regulatory and legislative solutions. CAI identified financial resources that may help homeowners and condominium associations finance structural integrity projects.

  1. Clarifying Community Development Block Grant and/or other Department-administered grant funds may be used by local and state governments to fund initiatives for condominium safety, soundness, and habitability of condominium and cooperative housing.
  2. Endorsing the SAFER Condos Act by U.S. Rep. Charlie Crist, D-Florida, to authorize Federal Housing Administration (FHA) insurance of loans and mortgages under the Title I property preservation and 203(k) rehabilitation programs that fund condominium association special assessments for structural repairs and financial reserves for future repairs. For the SAFER Act to pass, we need your help.  Please click here to contact your U.S. House of Representatives member to urge them to support the SAFER Condos Act.
  3. Working to modify FHA multifamily mortgage insurance programs to authorize blanket mortgage insurance for loans obtained by condominium associations to finance structural repairs.
  4. Exploring policies to enable participation by cooperative unit owners and cooperative corporations in Department programs that support financing project-level structural repairs.

This meeting was another step in our conversations with HUD leaders to explore and support financial solutions for condo safety. A special thank you to the meeting participants, including:

Ron Perl, Esq.

Hill Wallack, LLP (New Jersey): Chair, CAI Federal Legislative Action Committee; CAI National Past President; CAI New Jersey Chapter; CAI New Jersey Legislative Action Committee; Fellow, College of Community Association Lawyers

Ronald L. Perl is a partner in the Princeton, N.J. office of Hill Wallack LLP and a member of the firm’s Management Committee. He is partner-in-charge of the firm’s Community Associations practice group.

Lisa Magill, Esq., BCS

Kaye Bender Rembaum (Florida): Member, CAI Government and Public Affairs Committee; Member, CAI Federal Legislative Action Committee; Member, CAI Florida Legislative Alliance; Co-Chair, CAI Surfside Response Reserve Study & Funding Plans Policy Taskforce

Mitch Frumkin, PE, RS

Kipcon Engineering, Inc. (NJ, PA, NY): CAI National Past President; Co-Chair, CAI Surfside Response Reserve Study & Funding Plans Policy Taskforce; CAI New Jersey Chapter; CAI Keystone Chapter; Member, CAI New Jersey Legislative Action Committee; Co-Chair, CAI Surfside Response Reserve Study & Funding Plans Policy Taskforce

Mitchell H. Frumkin founded Kipcon, Inc. in 1986 and fosters its growth with constant innovation and education. A Licensed Professional Engineer in eighteen states, Mr. Frumkin holds the Community Associations Institute’s (CAI) Reserve Specialist designation. A recognized industry expert, Mitch Frumkin is a frequent speaker, writer, and committee member on the state and national levels for the CAI, NAHB, and many other professional organizations.

Don Plank

(Virginia) Assistant Vice President, National Cooperative Bank: Member, CAI District of Columbia Legislative Action Committee

Mr. Plank provides financing solutions to condominium associations, homeowner associations and housing cooperatives throughout the DC Area, including term loans (amortized), lines of credit, and balloon loans.

Webinar June 1, 2022| The Whirlwind Condo Safety Legislative Session is Passed: Now What?

This webinar is for educational purposes and is not to be considered as legal advice. Watching this video does not satisfy any state or local requirements.

Learn about how this will affect your associations. The following (and more) was discussed:

  • Mandatory structural inspections, reserve studies and timelines for repairs
  • Changes to florida building code concerning roof repairs and replacements
  • New rules on deductibles and time limits for filing claims
  • What is RAP and will it reduce insurance premiums
  • Changes for contractors and AOBs -Immediate and long term impacts on associations

The panel of professionals include:

News from CAI | Condo Safety Legislation Passed in the Special Session

Per a May 26, 2022 email we received from CAI: This week the Florida legislature was in special session and condominium safety was one of three initiatives addressed. CAI Florida Legislative Alliance is pleased to announce that SB 4D – Building Safety Act for condominium and cooperative associations passed unanimously through both the House and Senate on May 24th and 25th respectively, after a powerful and heartfelt appreciation for the sponsors, Sen. Jennifer Bradley (R-5), Senator Jason Pizzo (D-38) and Rep. Daniel Perez (R-116) was expressed by Members in both the House and Senate. Governor DeSantis signed the bill on May 26th. This bipartisan legislation is the result of tireless advocacy by you, our membership; thanks to your determination, CAI Florida Legislative Alliance was able to work with legislators in both chambers to craft an effective condo safety bill that will protect Floridians. CAI representatives were in Tallahassee this week during the legislature’s special session and were the only ones to speak on behalf of the new bill.

The legislation includes a framework largely based on CAI public policy recommendations for:

  • Building inspections as structures reach 30 years old and every 10 years thereafter.
  • Mandatory reserve study and funding for structural integrity components (building, floors, windows, plumbing, electrical, etc.).
  • Removal of opt-out funding of reserves for structural integrity components.
  • Mandatory transparency—providing all owners and residents access to building safety information.
  • Clear developer requirements for building inspections, structural integrity reserve study, and funding requirements prior to transition to the residents.
  • Engagement of the Florida Department of Business and Professional Regulation and local municipalities to track condominium buildings and the inspection reporting.

Associations will have two years to comply with these requirements. CAI will be working closely with policymakers before the bill takes effect in 2024 to be certain the new requirements and directives are workable and practical for Florida’s impacted associations.

Since June 24, 2021, the tragic collapse of Champlain Towers South where 98 people perished and many others lost their homes, CAI mourned, prayed, and committed to doing whatever we could to make sure this never happened again. Following the collapse, CAI members and volunteers worked closely with Florida Sens. Jennifer Bradley and Jason Pizzo, as well as Rep. Daniel Perez to lead the efforts to pass this important legislation.

The comprehensive legislation makes certain that no matter in what county a condominium or cooperative is located, they will be periodically inspected with information shared with unit owners, local building officials, and prospective buyers. CAI will continue working with policymakers to make certain that associations have the time to meet these changes and that these new processes are practically workable for associations while making certain they are fiscally sound and physically safe.

Sincerely,
CAI Florida Legislative Alliance

News from CAI | Florida Lawmakers Fail to Reach Agreement on Condominium Safety Bill

Legislators failed to reach an agreement on a bill to improve building structural integrity before the session’s adjournment.
 
Mar. 11, 2022 — Falls Church, Va. — Members of the Florida legislature did not reach an agreement on legislation that would require building inspections and mandatory reserve studies for certain condominium and cooperative communities prior to this session’s adjournment, despite the tireless efforts from Sen. Jennifer Bradley (R-Orange Park) and Rep. Daniel Perez (R-Miami) as well as CAI advocates to pass legislation that would contribute to condominium safety after the tragic collapse of Champlain Towers South in Surfside, Fla., last June.
 
Condominium safety is CAI’s top priority this legislative session.  Our advocates will continue efforts and support sensible laws that benefit an estimated 9.6 million Floridians living in 48,500 community associations. There may be as many as 20,000 condominium buildings impacted by this legislation and many owners or residents of those buildings may be unaware of building conditions that require immediate attention. (Estimates from the American Communities Survey).
 
“While CAI is disappointed that condominium safety legislation didn’t pass in Florida, we certainly appreciate the complicated nature of these legislative proposals,” says Dawn M. Bauman, CAE, CAI’s senior vice president of government and public affairs. “CAI applauds the efforts of Sen. Bradley and Rep. Perez to develop legislation that attempted to balance condominium safety without imposing regulations that create undue and unanticipated financial burdens and compliance concerns.”
 
CAI’s Florida Legislative Alliance began working with state legislators after the condominium collapse in Surfside in June 2021 to provide support, research, subject-matter expertise, and public policy recommendations. We remain committed to condominium safety and to working with legislators in Florida and around the country to pass legislation that will result in safe and well-maintained condominiums with properly funded budgets.
 
To date, condominium safety legislation pertaining to building inspections for multifamily buildings has been introduced in Florida, Hawaii, Maryland, and Virginia.
 
The Virginia General Assembly recently passed legislation introduced by Sen. Scott Surovell (D-Fairfax, VA) that requires the Virginia Housing Commission to study condominium safety issues, specifically building inspections. The Maryland legislature is considering funding for condominium buildings in need of critical repairs, while Hawaii is considering building inspection requirements for condominiums.
 
Learn more about CAI’s efforts to improve condominium safety HERE.