LEGISLATIVE SESSION 2025

ANALYSIS OF BILL HB 913

HB 913 (SUMMARY)

Condominium Associations

GENERAL BILL by State Representative Vicki Lopez

Companion Bill:

Last Action:   2/23/2025 filed in House

The bill amends s. 627.351, F.S. relating to insurance coverage with Citizens Property Insurance Corporation (“Citizens”). The bill provides that Citizens cannot issue or renew insurance policies to unit owners or associations if they are not in compliance with 553.899 F.S. (mandatory structural inspections for condominium and cooperative buildings) and F.S. 718.112(2)(g) (residential condominium association structural integrity reserve study).

The bill amends s. 718.110 (4) F.S.; providing that the declaration of a nonresidential condominium may be amended to change certain provisions if all affected record owners join in the execution of such amendment. The bill requires certain documents to be served at a unit owner's address as reflected in the association's official records.

The bill amends s. 718.111, F.S.; requiring (rather than authorizing) an association to provide adequate insurance coverage for full insurable value, replacement cost, or similar coverage may be based on the replacement cost of the property to be insured as determined by an independent insurance appraisal or update of a previous appraisal. The replacement cost of property covered and must be determined every 3 years, at a minimum.

The bill revises the requisite criminal intent necessary of a board member by omitting the word “repeatedly” (two or more violations within a twelve-month period) and inserts “willfully”. In addition, the bill requires associations to maintain the most recent annual financial statement and annual budget on the condominium property. The bill removes the requirement that an association provide unit owners with specified notice that the most updated financial report will be provided to the unit owner upon request. The bill also authorizes the association to levy special assessments and obtain loans to perform necessary maintenance, repair, or replacement of the condominium property required by the milestone inspection report and structural integrity reserve study report without the approval of the membership.

The bill also amends s.718.112, F.S . allowing an association to adopt written reasonable rules governing unit owner questions at a meeting; The bill provides that nonresidential condominiums may provide for different notices on voting and election procedures in its bylaws, or by an amendment to its bylaws. The bill provides that a majority of the total voting interests of certain associations are needed to approve the provision of a specified line of credit to be used for certain purposes.

The bill authorizes an association's reserve accounts to be pooled. The bill specifies that a conflict of interest exists if the person conducting a structural integrity reserve study or milestone inspection provides or contracts to provide services. In addition, if there is an annual budget adopted on or before December 31, 2027, the members of a unit-owner-controlled association may approve, by a majority vote of the total voting interests of the association, the provision of a secured line of credit for up to 35 percent of the amount of the reserves required to meet the reserve funding schedule recommended by a structural integrity reserve study on items with an estimated remaining useful life of greater than 10 years. The bill also requires the Department of Business and Professional Regulation to initiate rulemaking by October 1, 2025, to establish criteria for determining the estimated useful life of the building components.

It is unclear why revising and changing recall procedures are necessary since the current method used works just fine. It makes no sense to have owners encumbered to pay the filing fee, not the association. And the possibility exists that associations may attempt to thwart the process by not picking up certified or registered mail. Currently, the process server serves the association and can verify that the association was served. Such changes on recall procedures include prohibiting the suspension of a voting interest of condominium when voting to recall a member of the board of administration; that service of a recall agreement be served on the association by registered mail. An owners recall agreement is rejected if: (i) improperly served; (ii) executed by a person who was not a unit's record owner or designated voter; (iii) was previous marked for the removal of any board member; (iv) not contain any markings that indicate the selection by a unit owner to either remove or retain a board member; and does not contain the signature of the unit owner.

The bill establishes a rebuttable presumption that a unit owner executing a recall agreement is the designated voter for the unit and that revocation of a unit owner's recall agreement be in writing and delivered to the association before an association is served with the written recall. The bill revises the timeframe in which a certain petition or action must be filed and requires an association be named as the respondent in such petition or action. The bill provides that a director or an officer is delinquent if payment is not made by the first day of the assessment period if they are not found in the governing documents.

The bill amends s. 718.113, F.S. to require the board to determine whose responsibility it is to pay for removal or reinstallation of hurricane protection.

The bill amends s. 718.117, F.S.; and authorizes termination of a condominium if the estimated costs of replacement, in addition to certain construction or repair costs, exceed the estimated fair market value. In addition, if at least 50 percent of the total voting interests are owned by a bulk owner, approval of at least 80 percent of all the voting interests in the condominium for termination.

The bill amends s. 718.1255, F.S. on requirements for bringing an action to challenge election or a recall; authorizing certain persons to file a notice of removal and complaint in circuit court within a specified timeframe after service of a complaint to bring an action to challenge the arbitration decision.

The bill amends s. 718.128, F.S. and removes the requirement for written notice of certain meetings. The bill provides that, after a specified percentage of voting interests adopts a resolution, a board to hold must hold a meeting within a certain timeframe. The bill also an association to have a designated e-mail address for receipt of ballots transmitted electronically.

EFFECTIVE JULY 1, 2025