Budgeting For Your Wesley Chapel Association: Insights on Insurance Premiums under the SB 154 Bill

The Surfside Glitch Bill, also known as SB 154, has brought about significant changes concerning insurance and premiums for condominium associations in Florida. Condo associations must now reevaluate their budgeting for insurance and regular inspections to remain compliant.

At Wise Property Management, Wesley Chapel’s leading association management company, we understand the challenges associations face in adapting to new legislation. That is why we are committed to helping associations understand and implement the operational changes required by the Glitch Bill.

 

Enhancing Building Inspection

Under the Glitch Bill, several key amendments have been made to building inspection requirements. First, questions regarding building height are now referred to the Florida Building Code, ensuring consistency and accuracy. Additionally, insurance premiums are excluded from operating budget calculations, providing associations with a clearer financial picture. 

Milestone inspections have gained significance, and professionals responsible for inspection reports play a vital role in ensuring thorough assessments. For example, any building reaching 30 years of age before July 1st, 2022 requires the building’s first milestone inspection to be performed and completed before December 31st, 2024, whereas a building reaching 30 years of age on or after July 1st, 2022 must have its inspection performed and completed before December 31st, 2025. Stay informed of the deadlines and related costs associated with building inspections to avoid penalties and maintain compliance.

 

Impact of Insurance Premiums on Budgeting

Insurance premiums are an important consideration in the budgeting process for condo associations. The Glitch Bill has now amended the calculation of operating budgets by excluding insurance premiums. This change emphasizes the need for associations to be proactive in carefully assessing and accounting for insurance costs to maintain financial stability. 

Additionally, the Glitch Bill now excludes insurance premiums from the already-in-place 115% calculation. This change is beneficial as it accounts for large increases in insurance premiums. With Wise Property Management’s top-of-the-line association management for Wesley Chapel communities, your condo association can rest assured that we can help your budget account for all of these new changes while remaining compliant.

 

Rethinking Reserve Funding

Reserve funding plays a vital role in the financial planning of condominium associations. The Glitch Bill has influenced regulations related to reserves, including an increased percentage of members required to approve a waiver of reserves, from the previous stipulation of members present and voting to a majority of the total membership. 

The establishment of a Building Safety Program by the Florida Building Commission further enhances the importance of reserve funding. Reserves must now be funded based on the most recent SIRS and may potentially include an inflation factor. Additionally, multicondominium associations operating at least 25 condominiums are now allowed to use a line of credit as an alternative funding source, though there are hopes that this will be extended to all impacted condominium communities in need.

 

Clarifying Compliance and Oversight

Compliance with the Glitch Bill’s provisions is of utmost importance for condo associations. Associations hold the responsibility of notifying unit owners about milestone inspections, ensuring transparency and cooperation. Completing inspection phases within specified timelines and sharing inspection reports allows for timely repairs following the discovery of the damage, ultimately keeping associations safe and in compliance. 

Breaching reserve mandates can have severe consequences for directors, highlighting the need for diligent oversight. The Division has expanded jurisdiction to oversee owner complaints regarding non-compliance, further emphasizing the importance of adherence to the Glitch Bill.

 

Navigating SB 154 With Wise Property Management

The Surfside Glitch Bill is bringing about significant changes in the procedures of condominium associations in Florida. With decades of experience as the leading Wesley Chapel association management company, at Wise Property Management, we recognize the importance of staying informed and compliant in these changing times. By understanding and implementing the Glitch Bill’s regulations, associations can create secure and prosperous communities. 

We ensure that we are actively up-to-date on any new legislative changes that could affect associations and communities in the Sunshine State. Navigating the Glitch Bill may present challenges and raise questions, but with our comprehensive services, your Wesley Chapel association can confidently adapt to and thrive with the new legislative landscape.

To schedule an appointment with Wise Property Management, Wesley Chapel’s top association management company call us at (813) 968-5665 or request a proposal today.

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