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Condo bill passed to protect condo owners from rising costs. Will DeSantis sign HB 913?
In trying to solve one huge problem, Florida lawmakers added a big headache for condo owners in the form of a sudden need for a lot of money. A bill passed this legislative session is intended to alleviate the financial pressure a bit. In 2021, a 12-story condominium in Surfside collapsed without warning, leaving 98 people dead. Investigations into the cause discovered degraded concrete supports from water penetration, among other issues, and delays in maintenance. Lawmakers responded to the deadly event and the likelihood of future tragedies by overhauling state condo laws and mandating all condo developments over 30 years old — which is about two-thirds of all condos in Florida —to undergo "milestone inspections," and all condos three stories or higher to get "structural integrity inspections." Condo associations were ordered to maintain enough reserve funds to cover any necessary maintenance or repair those inspections turned up. However, many condo associations didn't have that much money in reserves, and for some the amount required to be in compliance was staggering. Condos scrambled to catch up and many hiked up condo association fees — in some areas drastically — or added assessment fees to make up the cash before the deadlines. Rising insurance premiums from last year's powerful storms haven't helped, either. All of that has resulted in an exodus for residents who could afford to move (or were abruptly priced out of their homes) and much higher monthly bills for those who stayed. Sales of condos in Florida are also down. House Bill 913, which overwhelmingly passed in the House and unanimously passed in the Senate, seeks to lighten the load while still addressing dangerous structures in the state. It pushes the structural integrity inspection deadline off a year for some condo associations, allows associations in some situations to use special assessments, lines of credit or loans to fund their reserves and to pool reserve accounts, and changes which buildings need structural integrity inspections, among other things. As of June 10, HB 913 has been enrolled (passed by the Legislature) to be turned into an act to present to Gov. Ron DeSantis to sign, but it has not been sent to him yet. DeSantis initially called for a special session in January to address rising condo costs, among other issues, but the Legislature pushed it off until the regular session when they'd have more information. The governor said in early May that at first he preferred the Senate version of the bill (SB 1742, from Sen. Jennifer Bradley, R-Fleming Island) because he felt it was geared more toward condo owners than developers, but most lawmakers made substantial adjustments to their bills before passage. 'It should have been done in January," he said at a stop in Miami. "It did get done. I'm glad that the Bradley bill is basically what passed.' Lawmakers take on condo fees: 8 Florida condo bills aim to ease, relax burden of inspections. Here are the details HB 913, from Rep. Vicki L. Lopez, R-Miami, is a big bill that seeks to protect condo owners and clarify association accountability and responsibilities. Among its many changes, the bill: Extends the deadline for certain associations to have a structural integrity reserve study (SIRS) to Dec. 31, 2025, rather than Dec. 31, 2024 Changes requirement for mandatory structural inspections to apply to buildings that are three habitable stories or more, rather than just three stories or more, adds four-family dwellings Allows condo association members to vote to create special assessment or secure a line of credit or a loan to fund the maintenance reserves required by law Allows condo associations to pool for two or more required components rather than earmarking amounts for each item, without a vote of the unit owners Allows condo associations to invest reserve funds in certificates of deposit or depository accounts without a vote of the unit owners Changes the minimum deferred maintenance expense or replacement cost for reserve fund budgeting from $10,000 to $25,000, to be adjusted annually for inflation Allows multi-condominium associations to use approved alternative funding method to satisfy reserve funding obligations Requires SIRS inspections to include a recommendation for a reserve funding schedule Allows condo associations who have completed a milestone inspection to delay a SIRS for not more than two consecutive budget years to enable them to focus on the recommendations of the milestone inspection Allows some condo associations who have completed a milestone inspection in the previous two years to vote to temporarily pause fund contributions to the maintenance reserve fund for no more than two consecutive annual budgets, for budgets adapted on or before Dec. 31, 2028 Requires local enforcement agencies responsible for milestone inspections to annually report to Department of Business and Professional on the following stats for their area: number of buildings subject to inspections, number of inspections completed, the number and type of permit applications received to complete repairs, and a list of buildings deemed unsafe or uninhabitable, among other things Bans anyone performing structural integrity reserve studies from repairing, contracting to repair, or having financial interests in anyone else repairing any issues found in the inspection, adds other restrictions to prevent collusions, kickbacks and bribes by blocking connections between design professional and licensed contractors and the firm or person providing the milestone inspection. Creates additional requirements relating to the licensure and regulation of community association managers and community association management firms. Require associations to maintain adequate property insurance based on the replacement cost of the property, which must be determined every three years at a minimum. Allows video meetings and electronic voting (if agreed upon by a majority of the association) but requires full notification ahead of time, recordings become an official record and links or downloads must be provided to members Exempts nonresidential condominiums with 10 or fewer units from restrictions on who can vote to elect members of the board of administration or cancel contracts Requires the association to provide timely financial reports and disclosures related to inspections and studies to unit owners. Requires condo associations to create and maintain an online account with the Division of Florida Condominiums, Timeshares, and Mobile Homes by Oct. 1, 2025, to track contact information, basic info, assessments, inspection results and more Requires official documents to be made available on the association's website or made available for download through an application on a mobile device within 30 days after it is created or received Allows condo association boards to pause or reduce contributions to the reserve funding if the building has been determined to be uninhabitable due to a natural emergency until the local building official determines it is habitable again, allows reserve funds to be used to make it habitable Clarify that unit owners are not responsible for the cost of necessary removal or reinstallation of hurricane protection unless previously agreed otherwise If Gov. DeSantis signs it, the bill becomes law on July 1, 2025. This article originally appeared on Tallahassee Democrat: Florida condo costs would see relief if DeSantis signs bill into law
CBS News
23-04-2025
- Business
- CBS News
Florida House approves plan allowing credit lines, reserve contribution pauses for condo associations
The Florida House on Wednesday overwhelmingly approved a plan that aims, in part, to ease financial strains on condominium owners, setting up negotiations with the Senate before next week's scheduled end of the 2025 legislative session. Bill hopes to strengthen laws established after the Surfside tragedy The House and Senate bills address condo-safety laws passed after the 2021 collapse of the Champlain Towers South condominium building in Surfside that killed 98 people. The laws, passed in 2022 and tweaked in 2023, included requiring "milestone inspections" of older buildings and "structural integrity reserve studies" to determine how much money should be set aside for future major repairs. Milestone inspections were supposed to be completed by Dec. 31 for certain older buildings that are three stories or higher. Some condo associations hit owners with large assessments in the race to comply with the deadline. Assessments are in addition to homeowners' regular association fees. Bills hope to clear up confusion and establish credit lines House bill sponsor Vicki Lopez, R-Miami, said Wednesday her proposal (HB 913) seeks to clear up confusion over current requirements and provide "financial relief" for condo associations by allowing them to use lines of credit in lieu of reserves. Rep. Vicki Lopez, R-Miami, is spearheading efforts to change condominium laws Colin Hackley/News Service of Florida A similar Senate proposal (SB 1742) would allow condo associations to use lines of credit or obtain loans to fund repairs. The Senate bill, sponsored by Fleming Island Republican Jennifer Bradley, also would allow condo associations to "temporarily pause" reserve-fund contributions for up to two years. Rep. Anna Eskamani, D-Orlando, said the line-of-credit part of Lopez's bill would "be very helpful" to condo owners in her district. "A lot of our condo owners are on a fixed income, and their ability to meet the costs that we established a few years ago is just not realistic. So I do hope this makes it easier to ensure the safety of these buildings will not force the individuals to leave their homes," Eskamani said before the House voted 113-2 to pass the bill, with Rep. Mike Caruso, R-Delray Beach, and Rep. Kiyan Michael, R-Jacksonville, dissenting. Lopez said her bill also clarifies that only buildings with three habitable stories will have to comply with the milestone inspections, an issue she said has caused confusion. The House bill also includes changes that would allow condo owners to cast votes electronically in condo-association elections. Lopez said that many condo owners who do not live in their units "have been disenfranchised" under current law, which requires in-person voting. The proposal would allow electronic voting if at least 25 percent of owners request it. The bill also would prohibit companies or people that perform structural reserve studies from conducting repairs, to avoid what Lopez called "a clear conflict of interest." The Senate version of the bill would require any contractor or "design professional" who bids to perform a structural reserve study to disclose in writing that they intend to bid on the repairs. Both the House and Senate plans would require the state Department of Business and Professional Regulation, which oversees condo boards, to create a standard form for structural integrity reserve studies. Under current law, the studies target features that affect buildings' structural integrity or safety, including roofs, plumbing, structures such as load-bearing walls, electrical systems, waterproofing and exterior painting, and windows and exterior doors. The studies also include other items that have deferred-maintenance expenses of more than $10,000, which the House and Senate proposals would raise to $25,000. Lopez said Wednesday the proposed change would "provide flexibility to exclude certain low-cost repairs or replacements from the studies." Approval came after pressure from DeSantis Approval of the House bill came amid a clash between Republican House leaders and Gov. Ron DeSantis. The governor wanted lawmakers to revise the condo requirements during a special legislative session early this year. The regular session started March 4 and is scheduled to end May 2. Appearing at an event Wednesday in Fort Pierce, DeSantis swiped at the House over myriad issues, including the condo legislation. "You know, you have people that are getting hit with these crushing assessments. They're on a fixed income. A lot of them own their condos outright. They can't afford to fork over $100,000, and this is being put forward basically because of policies that were implemented by the Florida Legislature, so you have a responsibility to … recognize those unintended consequences and help people stay in their homes," DeSantis, who signed the 2022 and 2023 laws, said. "That's what you should be doing, but they haven't been willing to do that yet, either."
Miami Herald
23-04-2025
- Business
- Miami Herald
Florida House approves condo bill. Can a deal be reached with the Senate?
The Florida House on Wednesday overwhelmingly approved a plan that aims, in part, to ease financial strains on condominium owners, setting up negotiations with the Senate before next week's scheduled end of the 2025 legislative session. The House and Senate bills address condo-safety laws passed after the 2021 collapse of the Champlain Towers South condominium building in Surfside that killed 98 people. The laws, passed in 2022 and tweaked in 2023, included requiring 'milestone inspections' of older buildings and 'structural integrity reserve studies' to determine how much money should be set aside for future major repairs. Milestone inspections were supposed to be completed by Dec. 31 for certain older buildings that are three stories or higher. Some condo associations hit owners with large assessments in the race to comply with the deadline. Assessments are in addition to homeowners' regular association fees. House bill sponsor Vicki Lopez, R-Miami, said Wednesday her proposal (HB 913) seeks to clear up confusion over current requirements and provide 'financial relief' for condo associations by allowing them to use lines of credit in lieu of reserves. A similar Senate proposal (SB 1742) would allow condo associations to use lines of credit or obtain loans to fund repairs. The Senate bill, sponsored by Fleming Island Republican Jennifer Bradley, also would allow condo associations to 'temporarily pause' reserve-fund contributions for up to two years. READ MORE: Florida's Surfside law helps developers as condo owners face spiking fees and foreclosures Rep. Anna Eskamani, D-Orlando, said the line-of-credit part of Lopez's bill would 'be very helpful' to condo owners in her district. 'A lot of our condo owners are on a fixed income, and their ability to meet the costs that we established a few years ago is just not realistic. So I do hope this makes it easier to ensure the safety of these buildings will not force the individuals to leave their homes,' Eskamani said before the House voted 113-2 to pass the bill, with Rep. Mike Caruso, R-Delray Beach, and Rep. Kiyan Michael, R-Jacksonville, dissenting. Lopez said her bill also clarifies that only buildings with three habitable stories will have to comply with the milestone inspections, an issue she said has caused confusion. The House bill also includes changes that would allow condo owners to cast votes electronically in condo-association elections. Lopez said that many condo owners who do not live in their units 'have been disenfranchised' under current law, which requires in-person voting. The proposal would allow electronic voting if at least 25 percent of owners request it. The bill also would prohibit companies or people that perform structural reserve studies from conducting repairs, to avoid what Lopez called 'a clear conflict of interest.' The Senate version of the bill would require any contractor or 'design professional' who bids to perform a structural reserve study to disclose in writing that they intend to bid on the repairs. Both the House and Senate plans would require the state Department of Business and Professional Regulation, which oversees condo boards, to create a standard form for structural integrity reserve studies. Under current law, the studies target features that affect buildings' structural integrity or safety, including roofs; plumbing; structures such as load-bearing walls; electrical systems; waterproofing and exterior painting; and windows and exterior doors. The studies also include other items that have deferred-maintenance expenses of more than $10,000, which the House and Senate proposals would raise to $25,000. Lopez said Wednesday the proposed change would 'provide flexibility to exclude certain low-cost repairs or replacements from the studies.' Approval of the House bill came amid a clash between Republican House leaders and Gov. Ron DeSantis. The governor wanted lawmakers to revise the condo requirements during a special legislative session early this year. The regular session started March 4 and is scheduled to end May 2. Appearing at an event Wednesday in Fort Pierce, DeSantis swiped at the House over myriad issues, including the condo legislation. 'You know, you have people that are getting hit with these crushing assessments. They're on a fixed income. A lot of them own their condos outright. They can't afford to fork over $100,000, and this is being put forward basically because of policies that were implemented by the Florida Legislature, so you have a responsibility to … recognize those unintended consequences and help people stay in their homes,' DeSantis, who signed the 2022 and 2023 laws, said. 'That's what you should be doing, but they haven't been willing to do that yet, either.'
Yahoo
23-04-2025
- Business
- Yahoo
House passes condo bill following DeSantis' criticism
Miami Republican Rep. Vicki Lopez. (Photo courtesy of the Florida House of Representatives) The Florida House on Wednesday approved in a near-unanimous vote this year's condominium bill, which Gov. Ron DeSantis has criticized as part of his feud with the chamber's leadership. With a little more than a week until the scheduled end of the session, House lawmakers approved Miami Republican Rep. Vicki Lopez's bill, HB 913, which would allow condominium associations to open lines of credit instead of raising cash from owners to fund building repairs. The legislation attempts to address escalating association fees following last year's deadline for condominiums to complete studies detailing how much each needs to save to pay for roof and structural maintenance. Lawmakers passed legislation, requiring those studies and milestone inspections 30 years after the buildings' construction, after the 2021 collapse in Surfside of a 12-story condo that killed 98 people. 'I did not come to the Florida House to become a housing expert, but here we find ourselves,' Lopez said Wednesday. 'So, this affectionately known as the condo queen is prepared to continue to do the work to make sure that we have listened. I'm telling you, this is landmark legislation that finally does provide relief, the financial relief that all of our condo owners deserve.' SUBSCRIBE: GET THE MORNING HEADLINES DELIVERED TO YOUR INBOX The vote followed criticism from DeSantis, who in press conferences said that language allowing condo owners to vote electronically on matters brought by their associations would incite fraud. The version the House approved Wednesday requires 25% of condo owners who can vote to ask the association to hold an electronic voting option, which Lopez said is needed because a lot of owners live outside of the state or country. 'The House condo bill seems to be something that favors developers and puts the interest of developers over the interests of Florida residents,' DeSantis said during an April 10 press conference at the City of Sweetwater Community Center. The only two votes against the bill came from DeSantis allies: Republican Reps. Michael Caruso of Delray Beach and Kiyan Michael of Jacksonville. Multiple Democrats praised Lopez on the House floor, saying she took the time during the summer to meet with their constituents about the rising condominium fees burdening elderly people on fixed incomes. The Senate is set to take up its proposal, from Fleming Island Republican Sen. Jenifer Bradley, SB 1742, on Thursday. There are still some key differences between the two proposals. For example, Bradley's bill would allow condominium associations to invest their funds for repairs and to pause their contributions for reserve funds for repairs for up to two years after the milestone inspection. However, one provision that intensified disagreement between the sponsors early on is no longer a part of the House bill. Lopez originally wanted to prohibit Citizens Property Insurance Corp., the state's property insurer of last resort, from issuing or renewing policies for condominium buildings that haven't completed their building inspections. 'We want to make sure that associations comply, but I'm also very concerned about making sure that they don't compound their troubles by not being able to secure insurance,' Bradley told Florida Phoenix in March. House lawmakers also voted unanimously to extend a pilot program for grants for condominiums to take on projects that would make buildings more resilient against hurricanes. HB 393, co-sponsored by Lopez and Parkland Democratic Rep. Christine Hunschofsky, lowers the requirement of 100% approval from condo owners to 75% for the association to apply for a grant. However, the House is not adding additional funds for the pilot other than the $30 million appropriated last year, of which $29.6 million remains unspent because of the timeline of the application process. The Senate bill, SB 592, has passed all of its committee stops but it has not been scheduled for a floor vote. SUPPORT: YOU MAKE OUR WORK POSSIBLE
CBS News
15-04-2025
- Business
- CBS News
Bills advance in Florida Legislature to ease financial burden on condo owners
Bills to help condo owners manage high costs from safety inspections and structural integrity reserve studies, required for condominium associations after the deadly 2021 Champlain Towers South collapse in Surfside, are progressing through the Florida Legislature. After the collapse killed 98 people, lawmakers passed laws in 2022 and refined them in 2023 to ensure condo safety. However, these laws led to higher costs for residents. On Tuesday, Florida House and Senate committees approved plans to revamp laws dealing with condo associations. The new bills — HB 913 and SB 1742 — aim to revamp laws governing condo associations. Sponsored by Rep. Vicki Lopez (R-Miami) in the House and Sen. Jennifer Bradley (R-Fleming Island) in the Senate, the bills propose allowing condo-association boards to obtain lines of credit. The change is intended to help residents manage the financial difficulties associated with necessary repairs and reserve building. Currently, the House bill is set to be reviewed by the full House, while the Senate version must still pass through the Rules Committee before reaching the full Senate. These legislative efforts aim to offer financial relief to condominium owners while maintaining the safety and integrity of their homes.
