Florida Lawmakers Face Impasse Over Condo Safety Law Adjustments

Florida lawmakers are encountering challenges in adjusting condo safety laws, particularly two key proposals. One proposal, led by Sen. Jennifer Bradley, would allow condo associations to invest reserve funds saved for future repairs. The second, backed by Rep. Vicki Lopez, would prohibit associations that fail to comply with new safety laws from obtaining insurance through the state-run Citizens program.

These proposals stem from the aftermath of the tragic 2021 Surfside condominium collapse, which killed 98 people. In response, Florida mandated that condo associations conduct building inspections and set aside funds for future maintenance, leading to immediate repair costs. However, the state has not provided financial assistance, leaving unit owners struggling to cover the expenses, with some facing foreclosure.

Sen. Bradley’s proposal, SB 1742, seeks to allow associations to invest saved funds to offset costs, with the earnings designated for capital repairs. While her bill has made progress through the Senate, it faces concerns about potential fraud and misuse of funds, particularly from board members who may lack financial sophistication, as noted by Rep. Lopez.

Lopez, sponsoring HB 913, has proposed an alternative: prohibiting non-compliant associations from accessing insurance through Citizens Property Insurance Corporation, as a way to enforce compliance. While this proposal is designed to apply pressure, Sen. Bradley argues that denying access to state insurance would worsen the insurance crisis in the state’s condo market.

Both proposals are currently in their respective committees, with further negotiations to take place before potentially being brought before the full legislature.