Florida House Advances Bill Targeting Condo Insurance and Structural Safety
In a move aimed at enhancing the safety and financial stability of condominium properties, a significant legislative proposal has successfully passed its initial review in the Florida House of Representatives. The bill, which seeks to prevent state-run Citizens Property Insurance Corp. from insuring condominiums lacking necessary inspections, is part of a broader reform effort.
Introduced by Rep. Vicki Lopez of Miami-Dade County, the Republican-backed bill received unanimous support from the House Housing, Agriculture and Tourism Subcommittee. The legislation stipulates that Citizens Property Insurance Corp. cannot offer or renew policies for condominiums unless they complete crucial inspections. These include a milestone inspection to assess immediate structural repairs and a comprehensive Structural Integrity Reserve Study required every decade after a building reaches 30 years of age.
The initiative follows legislation from 2021 mandating such inspections to avert tragedies like the Surfside building collapse that year.
Additionally, the bill empowers condominium governing boards to impose special assessments and secure loans for repairs identified during inspections without prior consent from unit owners.
Josh Burkett, representing Association Reserves Inc., raised concerns during a hearing about the bill’s clarity regarding whether boards could create new reserve accounts or manage existing ones without owner approval. “We have differing legal opinions,” Burkett stated.
Travis Moore, a lobbyist for the Carillon Beach Condominium Association, warned about provisions potentially limiting unit owners’ control over funding for common areas in properties serving as both hotels and condominiums. Moore highlighted an amendment from 2024 which allowed developers to claim ownership of shared facilities. This change led to a $16 million legal victory for Carillon Beach condo owners against a developer accused of overassessing them. The developer denied these claims and has appealed the decision.
Moore urged that the current bill should nullify the 2024 amendment unless contested in court by October 2024.
Additional provisions in the bill include:
- Mandating full insurance coverage for condo associations based on insurable value or replacement cost.
- Allowing the termination of a condominium setup if repair costs and market value surpass pre-repair values, with a rejection option by 5% of voting interests. A termination requires 80% approval if a bulk owner holds half of the units.
- Making arbitration decisions by the Division of Florida Condominiums binding for recalls or elections, with other binding decisions needing written party agreement.
- Requiring associations to cover all costs and attorneys fees for unit owners who prevail in disputes.
- Permitting electronic voting if requested by at least 25% of voting interests.
Currently, no Senate companion bill exists, though two separate Senate proposals related to condo reforms are pending committee discussions.
Ron Hurtibise covers business and consumer issues for the South Florida Sun Sentinel. He can be reached by phone at 954-356-4071 or by email at [email protected].
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