ANALYSIS HB 913 (ER) -- CONDO 3.0

CHAPTER V

• POWER TO MANAGE CONDOMINIUM PROPERTY AND TO CONTRACT, SUE, AND BE SUED; CONFLICT OF INTEREST: Line 968 – 1065

Section 7.   The bill amends  paragraph (a) of subsection (11) (Insurance), paragraphs (a), (c), and (g) of subsection (12) (Official Records), and subsection (13 (Financial Reporting) of section 718.111, Florida Statutes, are amended, paragraphs (g), (h), and (i) are added to subsection (3) of that section, and subsection (16) is added to that section, to paragraphs (g), (h), and (i) are added to subsection (3) and conform to the duties and responsibilities of a CAM and/or  community association management firms dealing with the association, as described in Chapter 1 (CAM Regulation) of this analysis.

(3) POWER TO MANAGE CONDOMINIUM PROPERTY AND TO CONTRACT, SUE, AND BE SUED; CONFLICT OF INTEREST.

(g) If an association contracts with a community association manager or a community association management firm, the community association manager or community association management firm must possess all applicable licenses required by part VIII of chapter 468. All board members or officers of an association that contracts with a community association manager or a community association management firm have a duty to ensure that the community association manager or community association management firm is properly licensed before entering into a contract.

(h) If a contract is between a community association manager and the association, and the community association manager has his or her license suspended or revoked during the term of a contract with the association, the association may terminate the contract upon delivery of a written notice to the community association manager whose license has been revoked or suspended, effective on the date the community association manager became unlicensed.

(i) If a community association management firm has its license suspended or revoked during the term of a contract with the association, the association may terminate the contract upon delivery of a written notice to the community association management firm whose license has been revoked or suspended, effective on the date the community association management firm became unlicensed.

(11) INSURANCE.

Paragraph (a) of subsection (11)Subsection 11(a)1 is amended to reflect the term “of this state” inserted before the verbiage “State of Florida” is clarified that protections are to protect the safety, health and welfare of the people of this state of the State of Florida.”

The bill provides that all condominium association need adequate property insurance. 

The bill deletes specified required coverage to provide that amount of adequate insurance coverage may be based on the replacement cost of the property to be insured, as determined by an independent insurance appraisal or previous appraisal.

• The bill requires that such replacement cost be determined according to a specified timeframe.

• The bill provides that an association's obligation to obtain and provide adequate property insurance may be satisfied by obtaining and maintaining insurance coverage sufficient to cover a specified amount.

• The bill provides that an association or group of associations may provide adequate property insurance through a self-insurance fund that complies with the requirements of ss. 624.460-624.488, F.S.  

• The amount of 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 an update of a previous appraisal.

• The replacement cost must be determined at least once every 3 years, at minimum.

LEGISLATIVE SESSION

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