What engineers look for during Florida's new condo inspection process

COCOA BEACH – For Jim Emory, tightened state laws on apartment inspections and repairs have made his busy inspection business even busier.

Emory is president and chief engineer of Keystone Technology and advicewith offices in two prominent Atlantic Coast communities: Cocoa Beach and Daytona Beach. His company conducts condo inspections along the east coast of Florida, from St. Augustine to Fort Pierce, conducting 200 to 300 inspections per year.

He says the state’s new inspection rules have “had a major impact on our industry,” as has the insurance industry’s demand for more proactive inspections and structural repairs at apartment complexes in the wake of the 2021 Treasury bond collapse. Champlain Towers South in Surfside which killed 98 people.

“They’re making that a condition of (insurance) coverage,” Emory said, referring to the inspections and required repairs.

What is involved in the process and what the result of the inspection is can differ per complex.

“Condos are like people,” Emory said. “They have different personalities.”

How the Florida condo inspection process works: There are two phases

State rules now require inspections of apartments that are at least 30 years old and at least three stories high.

For those apartments, the first ‘Phase One’ inspections should be completed by the end of 2024. Buildings with structural issues should then be subject to a more comprehensive ‘Phase Two’ structural milestone inspection report.

The Phase Two reports typically include a visual, acoustic and hands-on survey of the apartment building under the supervision of a licensed professional engineer or architect.

Emory said a phase one inspection by his company would typically cost $50 to $100 per residential unit, while a phase two inspection would cost $100 to $150 per unit. He uses a minimum amount of $3,500 for smaller apartment complexes.

Generally, the inspection of a coastal condominium focuses on the existing and potential future concrete damage that occurs due to chloride-induced corrosion of reinforcing steel. This electrochemical phenomenon is normally the driving force behind the maintenance and repair of coastal buildings.

As a result of the actual and potential concrete damage, affected building components – such as floor finishes, safety railings, glass doors, windows and storm shutters – are also evaluated.

“It’s a bit of a process,” Emory said. “People want to verify that their building was safe.”

Apartment balconies are a major problem during inspections

Emory said apartment balconies are typically a key area of concern, with particular concerns about structural deterioration over time, especially for buildings near the ocean. Balcony problems can also lead to problems with balustrades, sliding glass doors and shutters.

A major problem is “keeping the salt water out of the concrete,” Emory said.

“As part of that inspection, we provide budgets — what we believe will be the costs for the repairs — and then the state requires those budgets to be funded through the condo reserve process,” Emory said.

The first inspection reports should be ready by the end of this year and repairs should be budgeted for by the end of 2025.

For condo boards that want the service, Keystone also manages subsequent construction projects for necessary structural repairs. Emory said his company has overseen about 600 apartment restoration projects over the past two decades.

Emory said his company has also added a consulting team of roofing specialists to its staff because insurance companies are increasingly requiring roof repairs or replacements to get coverage.

How will the new condo inspection guidelines impact the cost of property insurance in Florida?

An additional financial burden for many condos is the higher cost of title insurance. Emory said many apartments have experienced a 50% to 100% increase in insurance premiums in recent years, both due to the impact of the new inspection rules and hurricane-related damage claims in Florida and elsewhere in recent years.

“They’re seeing huge premium increases,” Emory said.

Often, the needed condo repairs require a special assessment that can cost up to tens of thousands of dollars per condo unit owner, Emory said.

Normally, “the initial reaction is negative to the numbers,” Emory said.

At the Surfside apartment, water poured into the garage minutes before the collapse

Water was seen flooding into the basement garage of Champlain Towers South in Surfside, Florida, just minutes before it partially collapsed on June 24.

USA TODAY, story-filled

But ultimately, condo boards generally believe that timely repair work is the way to go.

“It’s really about education,” Emory said. “It’s an investment in the life of the building: being proactive and making structural repairs as early as possible.”

Once repair work begins, Emory says, the focus of condo boards and other residents often shifts to aesthetics.

“It’s all about the money until you get started,” Emory said. “Then they start getting engaged and saying, ‘Let’s do more.’ “

Emory said another impact of state laws on inspections is that some companies have difficulty hiring engineers with extensive experience in condo inspections, which he said is a specialized skill. As a result, Emory says, some companies’ inspection reports are not complete enough.

Florida Lawmaker: ‘Financial Hardship’ Worth Making Necessary Repairs

Florida Rep. Tyler SiroisHouse Regulatory Reform and Economic Development Subcommittee chairman, R-Merritt Island, supports increased state oversight of condo inspections.

“These inspections are necessary,” said Sirois, whose House district includes the beach communities of Cape Canaveral, Cocoa Beach and Satellite Beach in Brevard County. “It is important to remember what prompted this legislation – a structural collapse that killed 98 people. Champlain Towers was built in 1981. My understanding is that cracks and failing concrete were identified but not fixed in time, and the building collapsed. These inspections are necessary to be proactive.”

Sirois said he is aware that the costs associated with apartment repairs “have caused financial hardship for many people.”

“The reserve requirements and structural integrity assessments are costly for many condo owners, especially those with fixed income,” Sirois said. “The safety of residents depends on associations having funds to conduct inspections and make structural repairs. I know this is a challenge for older buildings with high maintenance costs.”

Sirois said he is open to considering “ways we can mitigate the financial hardship that the new requirements will place on condo owners.”

“There may be ways to ease the fully funded reserve requirements for some buildings that are considered less susceptible to structural issues,” Sirois said. “However, when you’re talking about a building that’s 30 or 40 years old, these inspections are a matter of life safety. We have to find the right balance.”

Dave Berman is business editor at FLORIDA TODAY. Contact Berman at [email protected]on X on @bydaveberman and on Facebook at www.facebook.com/dave.berman.54