Sweeping bill aimed at condo reforms advances in state House

Ron Hurtibise, South Florida Sun-SentinelSouth Florida Sun Sentinel

A sweeping legislative bill that would, among other reforms, bar state-owned Citizens Property Insurance Corp. from covering condominiums that have not completed required inspections, cleared its first hurdle in the Florida House of Representatives on Tuesday.

The bill was sponsored by Rep. Vicki Lopez, a Republican from Miami-Dade County, and approved unanimously by the House Housing, Agriculture and Tourism Subcommittee with limited discussion.

It would prohibit Citizens Property Insurance Corp. from issuing or renewing commercial condominium or private owner policies if their association has not completed a milestone inspection to identify structural problems in immediate need of repair, or a more comprehensive Structural Integrity Reserve Study that’s required when a condo building reaches 30 years old and every 10 years afterward.

Lawmakers voted in 2021 to require both the milestone inspection and structural reserve studies to prevent another tragedy like the 2021 building collapse in Surfside.

The bill that passed its committee vote on Tuesday would also allow — without prior approval of association unit owners — governing boards of condominiums to levy special assessments and obtain loans to cover repairs identified by inspections.

During the hearing, Josh Burkett, a lobbyist for Association Reserves Inc., a California-based provider of reserve studies, said the bill currently does not clarify whether governing boards will only be able to create new reserve accounts without unit owner approval or if boards would also be given control of existing reserve accounts.

“We have differing legal opinions,” Burkett said.

Travis Moore, a lobbyist representing the Carillon Beach Condominium Association in Miami Beach, cautioned against language in the bill that could eliminate unit owners’ power to decide how to fund repairs and maintenance of common elements in properties that are used as both hotels and condominiums.

After the hearing, Moore told the South Florida Sun Sentinel that he was referring to an amendment to a bill enacted in 2024 that allows developers of mixed-use condo properties to retroactively claim ownership of common elements, such as lobbies, pools and elevators, while assessing unit owners for the costs of maintaining those elements.

Owners of Carillon Beach condo units won $16 million after accusing a developer of overassessing them after taking over common elements of the property in the mid-2000s. The developer denied overcharging the unit owners and the award is under appeal.

The new bill, Moore said, would retain the 2024 language unless unit owners challenged the takeover in court prior to Oct. 1, 2024.

The pending bill should include language overturning the amendment completely, Moore told the Sun Sentinel.

The bill also would:

— Require condo associations to insure properties for full insurable value or replacement cost.

— Enable termination of a condominium form of ownership if the total estimated cost of repairs plus the combined estimated fair market value of the condo units before the repairs take place exceed the pre-repair fair market value of the units. However, a termination plan could be rejected by 5% or more of the total voting interests. Also, at least 80% of voting interests must approve any termination if a bulk owner controls at least 50% of the units.

— Make resolutions of disputes involving recalls or elections by arbitrators of the Division of Florida Condominiums, Timeshares and Mobile Homes binding. For all other types of disputes, decisions would be binding only if the parties agree in writing.

— Require the association to pay all costs incurred by the unit owner plus the owner’s attorneys fees if the unit owner prevails in a dispute resolved by the division or by a court.

— Allow electronic voting if requested by at least 25% of voting interests.

The bill does not have a Senate companion. Two bills in the Senate that would provide separate reforms have not yet come before committees.

Ron Hurtibise covers business and consumer issues for the South Florida Sun Sentinel. He can be reached by phone at 954-356-4071 or by email at [email protected].