Proposal to Withhold Citizens Insurance is Sticking Point in Florida Condo Bill
TALLAHASSEE — Discussions surrounding adjustments to Florida’s condo safety laws have hit a snag. The impasse centers on two key proposals: one that would allow condo associations to invest funds saved for future building repairs and another that would bar non-compliant associations from obtaining insurance through the state-run Citizens program.
Lawmakers are attempting to bring condominium associations into compliance with regulations enacted in the wake of the 2021 Surfside building collapse, which resulted in 98 fatalities. These laws require Florida condominium associations to conduct building inspections, triggering immediate repair costs, while also mandating savings for future maintenance.
Senator Jennifer Bradley is spearheading a bill, SB 1742, that would enable associations to invest funds set aside for future repairs. She believes this will help offset costs for condo owners.
“We’re going to have a lot of dollars in reserves, and these associations should be able to leverage those dollars,” said Senator Bradley.
The Senate Committee on Regulated Industries, which Senator Bradley chairs, approved her proposal. However, the bill must pass two more Senate committees before it reaches the full chamber.
Senator Bradley explained that the bill establishes safeguards similar to those used for state employees’ retirement funds. The returns on these investments would be directed towards capital repairs and improvements.
However, Representative Vicki Lopez expressed concerns that the provision could lead to fraud. She worries about the lack of sophistication of some association board members, particularly those in her district who are elderly.
“I worry. I worry every day because not all association board members are sophisticated,” said Representative Lopez.
She added, “I’m worried that someone may take advantage of them. … What happens to those funds if they’re not invested properly and they lose their shirts? So I don’t think it’s a good idea.”
Representative Lopez is sponsoring HB 913, a bill that Senator Bradley does not support. This bill would prevent condominium associations that fail to comply with post-Surfside laws from acquiring insurance through the state-run Citizens Property Insurance Corp.
Currently, there are no criminal penalties for associations that neglect to conduct a “structural integrity reserve study.” Experts have indicated that failing to complete this study will complicate obtaining loans or insurance from the private market. Representative Lopez seeks to enforce this requirement with the state-run insurance.
Earlier this month, Representative Lopez described her provision as the “stick” to encourage compliance. Her bill still needs to pass one more House committee before reaching the entire chamber.
Senator Bradley previously voiced her opposition on social media, suggesting the condo insurance market is “held together by duct tape.” She believes denying access to Citizens would worsen the situation.
On Tuesday, Senator Bradley reaffirmed her stance, stating that while she wouldn’t rule out compromise in negotiations, she doesn’t support the concept.
