A new legislative proposal in Florida aims to bar state-run insurer Citizens Property Insurance Corp. from covering condominium associations that fail to comply with recently enacted building safety requirements.
The bill, introduced by Republican Rep. Vicki Lopez (pictured above), is part of an ongoing effort to strengthen condominium regulations following the 2021 Surfside building collapse.
Under Florida law, most condominium buildings of three stories or more were required to complete safety inspections and reserve studies for future maintenance by December 31, 2023.
In a report from the Tampa Bay Times, Florida Department of Business and Professional Regulation Secretary Melanie Griffin told lawmakers last week that most of the 11,270 associations subject to the requirement have not yet complied. There are no criminal penalties for noncompliance.
In recent years, Florida's condominium insurance segment has undergone significant changes, driven by new legislation, regulatory updates, and mounting challenges within the sector.
A bill called Senate Bill 4-D was also enacted in response to the Surfside condominium collapse. This law mandates that condominium associations maintain adequate reserves for major repairs and conduct structural integrity reserve studies every 10 years. The legislation aims to enhance building safety and prevent future disasters.
The requirements of Senate Bill 4-D have also introduced financial and administrative challenges for many associations. The necessity to fund reserves adequately and perform mandatory structural assessments has resulted in increased fees and special assessments, exacerbating affordability concerns for unit owners.
Citizens insures 18,468 condominium buildings, with more than half located in Miami-Dade, Broward, and Palm Beach counties, according to a Citizens spokesperson.
Lopez’s proposal, House Bill 913, seeks to refine existing condominium laws and would make Citizens coverage contingent on compliance with the inspection and reserve study requirements. She has not commented on the bill directly but has stated that it is intended to modernize condominium management while prioritizing safety and financial sustainability.
The bill also includes provisions that expand electronic voting access for associations and allow boards to secure loans or impose special assessments without member approval to pay for required maintenance and repairs.
State Sen. Ileana Garcia has raised concerns that the bill could lead to displacement for many condominium owners. She argued that making insurance coverage conditional on compliance could force associations to impose steep assessments, which would disproportionately impact seniors, retirees, and low-income residents.
“Citizens has long served as a safety net for residents,” Garcia said, warning that the bill does not provide a feasible solution for associations struggling to meet the legal requirements.
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