Florida Bill Threatens Condo Insurance Over Safety Compliance
A new bill in Florida aims to tie state-run insurance coverage for condominiums to compliance with recent building safety regulations. The proposal, introduced in the wake of the 2021 Surfside building collapse, seeks to strengthen existing condominium laws, but has raised concerns about potential impacts on affordability and resident displacement.
House Bill 913, proposed by Republican Rep. Vicki Lopez, would prevent Citizens Property Insurance Corp. from insuring condominium associations that fail to meet safety requirements. Under Florida law, most condo buildings of three or more stories were required to complete safety inspections and financial reserve studies by December 31, 2023.
According to a report in the Tampa Bay Times, Florida Department of Business and Professional Regulation Secretary Melanie Griffin told lawmakers that many associations have yet to comply with these requirements. The bill, if passed, would make Citizens coverage contingent on compliance with these inspection and financial reserve study mandates.
“It is intended to modernize condominium management while prioritizing safety and financial sustainability,” Rep. Lopez said of the bill, though she has not directly commented on the specifics of the proposal. The bill also includes provisions for expanded electronic voting access and allows boards to secure loans or impose special assessments without member approval for necessary repairs and maintenance.
State Sen. Ileana Garcia has voiced concerns over the potential consequences of the bill, particularly for low-income residents, seniors, and retirees. She warned that by making insurance coverage conditional on compliance with building standards, the bill could force associations to significantly increase fees and assessments, leading to displacement.
“Citizens has long served as a safety net for residents,” Senator Garcia stated, adding that the bill does not offer a feasible solution for associations struggling to meet the legal requirements.
Background on Florida Condo Regulations
In recent years, Florida’s condominium insurance segment has undergone significant changes, driven by new legislation and regulatory updates. Senate Bill 4-D was enacted after the Surfside condominium collapse. This law requires associations to maintain adequate reserves for major repairs and conduct structural integrity reserve studies every 10 years. While aimed at enhancing building safety, these requirements bring financial and administrative hurdles for many associations. The need to fund reserves and conduct assessments has led to increased fees and special assessments, raising concerns about affordability for residents.
Citizens currently insures 18,468 condominium buildings. According to a spokesperson for the company, over half of these buildings are located in Miami-Dade, Broward, and Palm Beach counties.
This bill represents another step in an ongoing effort to address the challenges faced by condominium associations in Florida and ensure the safety and financial stability of these communities. The debate surrounding House Bill 913 highlights the complex balance between building safety, affordability, and protecting the state’s residents.
