Annabelle Lastre, CEO / Commercial Insurance Advisor at Highlight Risk Services; Marianne De La Sierra, Regional Director at Affinity Management Services; Meredith Singer, Attorney / Shareholder at Greenberg Traurig; Chaveli Moreno, Chief, Enforcement Support and Special Services Division at Miami-Dade County Department of Regulatory and Economic Resources. (Photo Credit: Allegory PR Services)
On June 19th, Commercial Real Estate Women Miami (CREW Miami), hosted a lively panel discussion titled “Florida Condo Regulations: Recent Changes in Building Codes and Reserve Requirements”. Designed to help condo developers and owners, the program aimed to:
- provide updates on upcoming building codes and reserves in Florida;
- learn why these regulations have been put into place; and
- hear a variety of perspectives in key areas: property management, law, insurance, and Miami-Dade County.
The guest speakers were Marianne De La Sierra, Regional Director at Affinity Management Services; Meredith Singer, Attorney/Shareholder at Greenberg Traurig; Annabelle Lastre, CEO/Commercial Insurance Advisor at Highlight Risk Services; and Chaveli Moreno, Chief of Enforcement Support and Special Services Division at Miami-Dade County Department of Regulatory and Economic Resources.
Key Discussion Points
Code Compliance:
When speaking about code compliance, Moreno remarked, “We are trying to do a lot of community outreach so that the associations have all documents available to them. I would say that the county is a great tool right now, whether it’s the industry or a regular property owner, as a communication component to provide that guidance. We’re trying to put as much as we can online and provide a breakdown of the laws. The public should reach out.”
Property Insurance:
Regarding property insurance, Lastre noted that if recertification is not completed on time, the building is at risk of losing property insurance. She said, “Reports have to be from a licensed inspector, and the licensed inspector only includes items on the report from a licensed contractor. Even if the building is considered ‘safe,’ we would not give credit for it if not completed by a licensed contractor.”
Reserve Requirements:
Singer, who represents developers, remarked, “Obviously they’ve always had to have a budget that includes reserves. There was a time that they could waive reserves, but they can no longer do that. The turnover report will have to have a reserve. Make sure that the HOA has a healthy reserve.”
Condo Conversions:
De La Sierra asked if there will be an influx of condo conversions to apartments because residents don’t have the funds to meet the requirements. Singer felt that there may be a short window, but once everything is up to standards, terminations would not be popular.
Long-Term Outlook
Although there currently seems to be more challenges than positives, De La Sierra asked panelists to shed some light on the long term.
Insurance Predictions:
Lastre said, “I suspect that once the reserves and structural integrities are improved, property insurance specifically will most likely be extended for accidents and sudden occurrences rather than a maintenance ‘piggy bank’ that it is treated as now. That’s a systemic problem. I feel that once all these changes occur, it should overall bring down the property insurance.”
Transparency and Buyer Confidence:
Singer and Moreno agreed that transparency is key. Moreno concluded, “New buyers can have peace of mind and not face safety issues down the line. And transparency regarding the fees that they will have to pay. It’s that ‘knowledge is power’ situation where you are going to educate them and give them the tools that they need to make a good judgment and decision and they feel comfortable buying into that. I think that’s the standard that we are trying to set right now across the board.”
About CREW Miami
CREW Miami is dedicated to advancing women in the commercial real estate industry (CRE). We are committed to bringing more women into commercial real estate by offering programs like CREW Careers and UCREW that educate young women about the career opportunities in the industry; supporting CRE higher education and training through college scholarships and internships; and providing mentoring to those new or looking for change within the industry. Additionally, CREW Miami hosts monthly forums for professionals actively involved in the commercial real estate industry. These events encourage professional interaction and networking while providing a support network for commercial real estate professionals. CREW Miami is part of a global organization of 14,000+ members and 80+ chapters and affiliates providing our members with global access to professionals in our industry.
For more information, visit CREWMiami.org and follow @CREWMiami.
