What HB 1021 Actually Requires

Florida’s HB 1021 changed the rules after Surfside collapsed. Buildings three stories or taller now face mandatory structural inspections at 30 years (25 years if you’re within three miles of the coast). Reserve waivers for structural components are gone. You can’t vote your way out of funding roofs and building painting anymore.

Your board either complies or faces personal liability.

The Inspection Requirement

Does your building need one? Three criteria determine this: height (three stories or more), age (30 years, or 25 near the coast), and location (anywhere in Florida). If all three apply, you need an inspection by December 31st of the year your building hits the milestone age.

Buildings that were already past the milestone when the law took effect had until December 31, 2024. That deadline is behind us. If you missed it, you’re operating in violation right now.

What Gets Examined

A licensed engineer or architect inspects six categories: load-bearing elements, fireproofing systems, exterior waterproofing, roofing and drainage, and the electrical, mechanical, and plumbing systems that serve common elements. This isn’t a walk-through. The inspector measures, probes, and documents every structural component that keeps your building standing.

The report comes back with findings. You don’t get to ignore them. Florida law requires disclosure to owners, and prospective buyers can void their contracts within three days if they don’t like what they read.

Reserve Studies: No More Waivers

Before HB 1021, boards could vote to waive reserve funding. That option is gone for structural and life safety components. Starting December 31, 2024, you must fund reserves for roof replacement, building painting, pavement resurfacing, pool resurfacing, and any other structural component your reserve study identifies.

What does this mean for your budget? It depends on how long you’ve been deferring. If your association has been voting to waive reserves for years, expect sticker shock. A 200-unit building that never funded reserves might need to collect an extra $500 to $1,000 per unit annually just to catch up. Some buildings face special assessments in the six figures.

How to Actually Comply

Start with your building’s age and location. Calculate whether you’ve hit the milestone. If yes, commission the inspection now. Don’t wait for the deadline. Engineers are booked months out, and rushing leads to mistakes.

Next, get a reserve study. Not the cheap online version. Hire a firm that sends someone to your building, measures every roof membrane, counts every balcony railing, and calculates replacement costs based on current Florida construction pricing. You’re required to update this study at least every 10 years, but smart boards do it every three to five.

Then adjust your budget. Take the reserve study’s recommended annual contribution and add it to next year’s assessment. Yes, owners will complain. Show them the numbers. Explain that the law changed. Point out that deferring maintenance doesn’t make it cheaper, it makes it catastrophic.

Finally, set up separate reserve accounts. Don’t commingle reserve funds with operating funds. Florida law requires separation, and auditors check.

What Happens If You Don’t

Board members face personal liability for non-compliance. That’s not theoretical. If your building fails inspection and you didn’t act, or if you keep waiving reserves after the deadline, individual board members can be sued. Your D&O insurance might not cover willful violations.

Units become harder to sell. Buyers receive inspection reports during due diligence. If the report shows deferred maintenance and unfunded reserves, they walk. Or they demand price concessions. Either way, property values drop.

Local building departments can fine you. Fines accumulate daily. $500 per day adds up to $182,500 in a year.

And if something fails because you didn’t maintain it? The liability is personal.

How CenturySync Helps You Stay Compliant

We built CenturySync for Florida COAs dealing with exactly this problem. The platform stores your inspection reports, reserve studies, and board decisions in one searchable location. Automated deadline tracking reminds you when the next inspection is due or when reserve study updates are required. Owner communication tools let you explain assessment increases without drowning in emails.

Every document gets timestamped and archived. When a lawyer asks for your compliance records three years from now, you’ll have them.

Common Questions

Can we phase in reserve funding? Yes. The law allows phasing over a reasonable period, but you need a documented plan. Work with your attorney to determine what “reasonable” means for your association.

How often do we repeat inspections? Every 10 years after the first milestone inspection.

What if our building is exactly 30 years old this year? Your deadline is December 31st of this year. Start now.

Can owners vote to delay this? No. The inspection and reserve requirements aren’t optional. Majority vote doesn’t override state law.

What to Do Right Now

Calculate your building’s age. Check your distance from the coast. If you’re at or near the milestone, schedule the inspection this week. Commission a reserve study if yours is older than three years or if you’ve never had one. Review your current reserve balance and compare it to the study’s recommendations. The gap between those two numbers is your problem.

Then communicate with your owners. Don’t sugarcoat it. Explain what the law requires, what compliance costs, and what happens if the board does nothing. Show them the math. Most owners prefer higher assessments to lawsuits.

HB 1021 compliance isn’t optional. But you already knew that.

Need help managing HB 1021 compliance documentation? CenturySync provides purpose-built tools for Florida COAs. Schedule a demo or visit our office hours every Wednesday, 2-5 PM at 100-110 Century Blvd, Suite 202.

Understanding HB 1021: Essential Compliance Guide for Florida COAs