Proposed Bill Would End Citizen's Coverage for Noncompliant Condos

cliggittvaluation • February 25, 2025

Florida Lawmaker Proposes Cutting State Insurance for Non-Compliant Condo Associations

A new bill proposed by Miami Republican Rep. Vicki Lopez is making waves in Florida’s condominium market. The legislation, HB 913, aims to enforce compliance with updated building safety laws by preventing state-run property insurer Citizens from covering condominium associations that fail to meet inspection and budgeting requirements.


Background: Surfside Collapse Spurs New Regulations

Following the tragic 2021 collapse of a 12-story residential tower in Surfside, Florida lawmakers implemented stricter safety regulations for condominiums. The law mandates that condominium buildings of three stories or higher undergo safety inspections and conduct reserve studies to ensure they have sufficient funds for future maintenance and repairs. These studies were supposed to be completed by December 31, 2023, yet compliance has been sluggish.


According to the Florida Department of Business and Professional Regulation (DBPR), most of the 11,270 associations required to comply have not followed through. There are currently no criminal penalties for non-compliance, leading to concerns about enforcement.


HB 913: Tougher Measures for Non-Compliant Associations

Lopez’s bill seeks to address this issue by linking insurance coverage to compliance. If passed, condominium associations that fail to meet safety requirements would lose access to coverage from Citizens, the state-backed property insurer.


In a statement on social media, Lopez defended the bill, emphasizing its goal of modernizing condominium management and ensuring financial sustainability without state bailouts. “We’re not in the business of bailing people out who did not do the right thing from the get-go,” Lopez said at a recent Miami Realtors condo summit.


The bill also introduces new provisions for electronic voting and would permit associations to take on loans or levy special assessments without requiring membership approval. This measure aims to ensure critical repairs and maintenance can be funded without lengthy delays.


Opposition and Concerns

While proponents argue the bill promotes accountability, critics worry about its potential financial burden on condo owners. Miami-based Sen. Ileana Garcia has voiced strong opposition, warning that the proposal could displace thousands of Floridians.

“The bill ties insurance coverage to compliance, yet it fails to offer a feasible way for associations to fulfill these obligations,” Garcia stated. “Many Floridians could lose their insurance, compelling associations to implement steep special assessments that will hit seniors, retirees, and low-income residents the hardest.”


Garcia argues that Citizens has long served as a vital safety net for residents who might struggle to secure private insurance. She sees the bill as a move to push private insurers into the market, potentially leaving condo owners with fewer options and higher costs.


Implications for South Florida

Should Lopez’s proposal become law, it would have the greatest impact on South Florida, where over half of the 18,468 condominium buildings insured by Citizens are located. Miami-Dade, Broward, and Palm Beach counties would be particularly affected, as they house 4,213 condominium associations.


DBPR Secretary Melanie Griffin highlighted the challenge of tracking compliance. Of the required associations, only 4,096 have confirmed completing the mandated reserve studies. However, the department lacks the authority to verify the accuracy of self-reported information.


What Comes Next?

As Florida lawmakers continue to debate the bill, condominium associations and owners must prepare for potential changes. If the legislation passes, non-compliant associations will need to act quickly to secure alternative insurance or face steep consequences.


Lopez remains firm on her stance, insisting that financial bailouts are not on the table. With mounting concerns from both lawmakers and condo owners, the fate of HB 913 will be closely watched in the upcoming legislative session.

Thank you for your interest. Have questions regarding the local market? Navigate the Real Estate Market with confidence, and contact us at Cliggitt Valuation for your appraisal, consulting, and valuation needs today.


Mike Cliggitt, MAI, MRICS, CCIM

813.405.1705 | 863.661.1165 - Direct Lines

findvalue@cliggitt.com

Appraisal & Valuation Markets


Questions about our blog? Contact our Director of Sales & Marketing, Sydney Avolt.

Sydney Avolt

727.403.7418 - Direct Line

sydney@cliggitt.com


Source: Tampa Bay Times

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