TALLAHASSEE — A Miami lawmaker is
proposing to end state-run property insurance for condo
associations that shirk compliance with new building safety
laws passed after a 12-story residential tower in Surfside
collapsed in 2021.
Most condominium buildings three stories and higher must
have had a building safety inspection and study outlining
recommended budgets for future building maintenance by Dec.
31 of last year.
But so far, most of the more than 11,270 condominium
associations in Florida required to get the study for
funding future repairs haven’t followed through, the
secretary for the Florida Department of Business and
Professional Regulation told House lawmakers in a panel
discussion last week. There are no criminal penalties for
noncompliance.
Over the weekend, Republican Rep. Vicki Lopez, filed HB 913
— a 99-page bill refining the condominium laws that have
been the subject of every legislative session since the
Surfside tragedy.
One of the provisions addresses the problem raised by the
Department of Business and Professional Regulation secretary
last week.
Lopez proposes to bar the state-run property insurer
Citizens from providing coverage to condominiums that fail
to comply with the new requirements. She didn’t respond to a
request for comment, but wrote on social media that the bill
“addresses the need for modernized, efficient, and inclusive
condo management, prioritizing safety and financial
sustainability for Florida’s communities.”
The bill also expands access to electronic voting and allows
associations to take on loans or levy special assessments
“without the approval of the membership” to pay for the
now-required building maintenance and repairs.
But one of Lopez’s Miami-based colleagues, state Sen. Ileana
Garcia, told the Times/Herald the proposal “threatens to
significantly displace thousands of condominium owners in
Florida, all in an effort to pave the way for private
companies to enter the market.”
Garcia said Lopez is basically offering only a stick, and no
carrot.
“The bill ties insurance coverage” to “compliance, yet it
fails to offer a feasible way for associations to fulfill
these obligations,” Garcia said. “As a result, many
Floridians could lose their insurance, compelling
associations to implement steep special assessments that
will hit seniors, retirees, and low-income and residents the
hardest.”
Garcia added: “Citizens has long served as a safety net for
residents.”
Last week after the House panel met, the Miami Realtors
posted a video of Lopez at their condo summit on Feb. 14
saying there would be “no financial bailouts at all” related
to the building safety laws this legislative session after
the governor and associations around the state have asked
lawmakers to revisit the requirement that associations fully
budget for future building repairs.
“We’re not in the business of bailing people out who did not
do the right thing from the get-go,” Lopez said.
One of last week’s panel members said the idea was proposed
after the House discussion as Lopez, the Department of
Business and Professional Regulation secretary and others
were leaving the state Capitol.
“Someone simply suggested, well, they shouldn’t get the
benefits of Citizens if they’re not complying with the law,”
said Pete Dunbar, a Florida condominium law expert and
lobbyist who spoke to the House last week. “I believe that
both the secretary and Rep. Lopez heard the comment made.”
Should Lopez’s provision make it into law, it would impact
mostly South Florida.
More than half of the 18,468 condominium buildings insured
by Citizens are located in Miami-Dade, Broward and Palm
Beach counties, a Citizens spokesperson told the
Times/Herald on Monday. There are 4,213 associations
governing those condominium buildings.
It’s unclear how many of them have failed to comply with the
law.
During the discussion in the House last week, Department of
Business and Professional Regulation Secretary Melanie
Griffin said the state has had a difficult time confirming
that condominiums have completed the required studies to
fund future building maintenance. Just more than a third —
4,096 — of the associations required to comply with that
provision have done so.
And while they are supposed to notify the department that
their study is complete, they don’t have to provide any
additional information, making what the regulators can glean
from the studies limited.
Griffin said that “of the information self-reported to us,”
the median cost to procure a study was $6,000.