A Florida lawmaker has introduced a bill that could revoke state-run property insurance coverage for condominium associations that don’t adhere to new building safety laws. The proposal, which comes in the wake of the 2021 Surfside building collapse, targets an issue of non-compliance with safety and maintenance regulations.
Most condo associations have not completed mandatory safety inspections and studies, according to the Florida Department of Business and Professional Regulation.
Republican Rep. Vicki Lopez, a Miami-area legislator, filed HB 913, a 99-page bill that refines condominium laws. The bill addresses a problem highlighted by the Department of Business and Professional Regulation: a lack of compliance with new safety measures outlined after the Surfside tower collapse. The bill aims to prevent state-run insurer Citizens from covering condominiums that don’t meet the requirements.
Lopez’s bill also expands access to electronic voting and permits condo associations to take out loans or levy special assessments to cover necessary building repairs. Lopez, in social media posts about the bill, stated it “addresses the need for modernized, efficient, and inclusive condo management, prioritizing safety and financial sustainability for Florida’s communities.”
However, not everyone shares the same enthusiasm for the bill. State Sen. Ileana Garcia, also from Miami, expressed concerns that the proposal “threatens to significantly displace thousands of condominium owners in Florida, all in an effort to pave the way for private companies to enter the market.”
Garcia further stated the bill “ties insurance coverage” with compliance, yet it lacks a “feasible way for associations to fulfill these obligations.” Consequently, she fears, many Floridians could lose their insurance, leading associations to impose large special assessments that would disproportionately affect seniors, retirees, and low-income residents. She mentioned that “Citizens has long served as a safety net for residents.”
According to a spokesperson, over half of the 18,468 condominium buildings insured by Citizens are in Miami-Dade, Broward, and Palm Beach counties. This encompasses 4,213 associations that govern these buildings. The bill, if enacted, would primarily impact South Florida.
During a recent discussion, Department of Business and Professional Regulation Secretary Melanie Griffin noted the difficulty in confirming the completion of required studies. Somewhat over a third, 4,096, of the associations mandated to comply, have fulfilled the provision.
Griffin added that the median expense for obtaining a study was $6,000, according to the information self-reported to the department.
