Florida's latest proposed condominium law, HB-913, introduces critical changes that will have a direct impact on condominium associations, unit owners, property managers and insurers. With new requirements for financial transparency, dispute resolution, and structural compliance, these updates aim to mitigate financial and legal risks while ensuring long-term property stability. However, the added regulatory burdens may pose challenges for associations and insurers, particularly regarding compliance with milestone inspections, reserve funding, and insurance eligibility. The bill is currently under review in committee and if passed will go into effect on July 1, 2025.
Insurance Restrictions for Condominiums Regarding Citizens Property Insurance Corporation
Under HB-913, Citizens Property Insurance Corporation is prohibited from issuing or renewing insurance policies for condominium unit owners or associations unless the condominium association complies with specific statutory requirements, which include:
- Milestone Inspections (§553,899, Fla. Stat.)- Structural evaluations required at certain intervals to assess the safety and integrity of aging condominium buildings.
- Structural Integrity Reserve Studies (SIRS) (§718.112(2)9g). Fla. Stat.)- Financial assessments ensuring sufficient reserves for critical structural repairs.
Condominium associations that fail to meet these obligations may render their unit owners ineligible for coverage through Citizens.
Amendments to Condominium Declarations
For non-residential condominiums formed after July 1, 2025, the bill provides a streamlined process for amending declarations to:
- Change unit size or configuration in a material way.
- Materially alter or modify a unit's appurtenances.
- Adjust the proportion of common expenses or common surplus ownership.
Unlike previous requirements, the amendment process does not require approval from owners of unaffected units. Instead, it must be executed by all record owners of affected units and lienholders of those units.
Insurance Requirements for Condominium Associations
The bill mandates that all condominium associations maintain adequate property insurance as defined under §718.111(11)9a), Fla. Stat., regardless of any conflicting provisions in the Declaration of Condominium or alternative coverage preferences. This requirement standardizes insurance expectations across all associations, prioritizing financial protection for unit owners and common areas.
To ensure proper coverage, the bill specifies that the full insurable value or replacement cost of the property must be determined through an independent insurance appraisal or an update of a previous appraisal. Associations must reassess and update these replacement costs at least every three (3) years to reflect current property values and avoid underinsurance.
Furthermore, the condominium's obligation to obtain and provide adequate property insurance coverage for a group of at least three communities under chapters 718-721, Fla. Stat., may be satisfied by maintaining insurance coverage sufficient to cover an amount equal to the probable maximum loss for such communities for a 250-year windstorm event.
Governance and Financial Transparency Changes
HB-913 introduces new requirements aimed at improving board transparency, unit owner engagement, and financial management for Florida condominium associations.
Board Meeting Requirements
The bill ensures greater unit owner participation by requiring at least four times per year, condominium board meetings include an agenda item allowing members to:
- Ask questions about ongoing construction and repair projects.
- Inquire about current-year revenue and expenditures.
- Raise other concerns affecting the condominiums.
To maintain order, the association may adopt written rules regulating the frequency, duration, and manner of unit owner questions and statements.
Financial Flexibility for Reserve Funding
For annual budgets on or before December 31, 2027, unit owner-controlled associations may, by majority vote, approved a secured line of credit for up to 35% of the reserves required under the SIRS for components with more than 10 years of remaining useful life. This provision offers associations a means to manage long-term financial planning while ensuring necessary reserves for major repairs.
Structural Integrity Reserve Studies (SIRS) and Milestone Inspections Compliance Updates
The legislation introduces stricter regulations to prevent conflicts of interest, clarify exemptions, and refine reserve funding requirements related to SIRS and milestone inspections for Florida condominiums.
Conflict of Interest Prohibitions
The bill prohibits individuals or entities conducting a SIRS or milestone inspection from:
- Providing repair or replacement services for the inspected property.
- Holding any financial interest in any company performing such repairs.
This restriction aims to eliminate potential conflicts and maintain objective assessments of a condominium's structural integrity.
New Rulemaking for Building Component Assessments
By October 1, 2025, the Department of Business and Professional Regulation must establish formal criteria for determining the estimated useful life of condominium building components subject to SIRS. This standardization is aimed to improve accuracy in reserve funding projections.
Reserve Funding Emergency Flexibility
Under the bill associations will be permitted to pool reserve funds for two or more required building components as identified by the SIRS, rather than maintaining separate accounts. In addition, proposed annual budgets must allocate enough funds to ensure available reserves meet or exceed projected expenses for all pooled components, based on the latest SIRS. If a local building official determines that a condominium is uninhabitable due to a natural emergency, the board may pause reserve contributions without any member approval.
Revised Board Member Recall Procedures
HB-913 significantly overhauls the process for recalling condominium board members, ensuring unit owners' voting rights are protected and establishing stricter procedural requirements for recall agreements.
Hurricane Protection Responsibilities
The bill establishes clear guidelines regarding the cost and responsibility for the removal and reinstallation of hurricane protection in condominium properties. Unless otherwise stated in the association's declaration, a unit owner is not responsible for the cost of removing or reinstalling hurricane protection (e.g., exterior windows, doors, or other openings) if removal is required for the maintenance, repair, or replacement of condominium property that falls under the association's responsibility. If the declaration does not specify who is responsible for the hurricane protection costs, the board must decide whether the unit owner or the association will handle the removal and reinstallation.
The bill eliminates the association's ability to assess costs to a unit owner if the association itself undertakes the removal or reinstallation of hurricane protection that would otherwise be the unit owner's responsibility.
Board Authority to Levy Special Assessments and Obtain Loans
Some association governing documents limit a board's ability to levy special assessments or obtain loans without unit owner approval, which can delay urgent repairs required by milestone inspection reports and SIRS. The bill establishes that restricting access to necessary funding is contrary to Florida's public policy, as it jeopardizes the health and safety of unit owners and tenants. The bill grants condominium association boards expanded authority to secure funding for critical maintenance, repairs, and replacements without requiring prior approval from unit owners, overriding any restrictions in an association's governing documents.
Alternative Dispute Resolution in Condominium Elections and Recalls
The bill introduces key procedural changes to the resolution of election and recall disputes in condominium associations, clarifying when arbitration decisions are binding and outlining the process for court challenges. If an election or recall dispute is arbitrated by the Florida Division of Condominiums, Timeshares, and Mobile Homes, the division's decision is binding on all parties, except in specific circumstances. For other disputes, arbitration decisions are only binding if all parties agree in writing. Further, if a challenge to an election or recall dispute is filed in circuit court, it must be brought as a summary proceeding, ensuring a fast-track resolution.
A party challenging an election may request a temporary injunction to delay the election while the case is pending. Courts must hold an immediate hearing on the dispute and may limit testimony based on the timing of a scheduled election. The cases are tried without a jury, and the prevailing party is entitled to recover reasonable attorney's fees and costs.
Electronic Voting in Condominium Elections
HB-913 updates and expands the electronic voting process for condominium associations, providing an alternative method for adopting electronic voting while removing outdated notice requirements.
Of particular significance, Associations are no longer required to mail, deliver or electronically transmit a 14-day advance notice of a meeting where a resolution will be considered. The bill also eliminates the affidavit requirement, which previously mandated a sworn statement confirming compliance with the notice period.
Insured Warranty Program Coverage
The bill expands eligibility for insured warranty programs to include non-residential condominiums. Under the bill, these warranty programs must be underwritten by a licensed insurance company registered in Florida and meet all minimum statutory requirements.
Transfer of Association Control
Effective July 1, 2025, certain provisions regarding the transfer of Association control will not apply to non-residential condominiums with 10 or fewer units. For these condominiums, unit owners- other than the developer- will be entitled to elect a majority of the board upon the first occurrence of any of the following events:
- Three months after 90% of the condominium's units have been sold to purchasers.
- The developer files for bankruptcy protection.
- A court-appointed receiver for the developer remains in place for more than 30 days, unless the court determines that transferring control would be detrimental to the association or its members.
Agreements Entered into by the Association
The bill updates provisions related to agreements entered by condominium associations, specifically addressing non-residential condominiums with 10 or fewer units. It clarifies when owners, excluding the developer, may cancel certain agreements, such as grants, reservations, or contracts. Unit owners may cancel an agreement if:
- Single- Condominium Associations- If an association operates only one condominium, unit owners (excluding the developer) may cancel an agreement when they hold at least 75% of the voting interest, or 90% of the voting interest if the condominium is non-residential with 10 or fewer units. Cancellation requires the approval of at least 75% of the non-developer voting interest.
- Multi-Condominium Associations: If the association operates multiple condominiums and unit owners (excluding the developer) have not yet assumed control, agreements related to maintenance, management, or operations may be canceled when the owners hold at least 75% of the voting interest, or 90% of the voting interest for non-residential condominiums with 10 or fewer units (effective 7/1/25). Cancellation requires the approval of 75% or 90% (if applicable) of the non-developer voting interest.
Condominiums Within a Portion of the Building
The bill clarifies the rights of condominium associations formed within part of a larger building under §718.407 F.S. It ensures transparency and accountability in managing shared facility costs by granting associations the following rights:
- Access to financial records- The association may inspect and copy the records detailing the costs of maintaining and operating shared facilities.
- Annual Budget Review: The association must receive an annual budget outlining costs.
- Within 60 days after the fiscal year ends, a complete financial report of both maintenance and operation costs of the shared facilities must be provided, including receipts and invoices.
- The association can challenge the allocation of shared facility costs, but must do so within 60 days of receiving the financial report. Such challenges will be handled under the Homeowner Associations dispute resolution provisions.
Clarification of 2024 Amendments and Pending Adjudications
The bill clarifies that certain amendments made to the Condominium Act do not revive, reinstate or retroactively apply to any rights or interests of a condominium unit owner or condominium association in matters pending adjudication before October 1, 2024. However, the amendments will apply retroactively to matters pending adjudication before October 1, 2024.
Rulemaking
The bill requires the Department of Business and Professional Regulation to begin rulemaking by October 1, 2025, to establish criteria for determining the estimated useful life of building components subject to SIRS.
Predicted Fiscal Impact of the Bill
Citizens Property Insurance Corporation will no longer be required to insure properties lacking adequate reserve funds for necessary repairs, replacements, or maintenance. Since Citizens often serves as an insurer of last resort for properties unable to obtain more traditional private insurance. As such situations, affected condominium associations may face significant challenges when attempting to secure adequate insurance coverage.
Conclusion
These sweeping changes to Florida's condominium laws signal a shift toward stricter oversight and accountability, requiring property managers and insurers to adapt their practices accordingly. Associations that fail to comply with new inspection and reserve requirements may find themselves ineligible for coverage, increasing financial risks for unit owners and stakeholders. As these provisions take effect, insurers and property managers must stay ahead of the regulatory curve, ensuring compliance while managing increased responsibilities. Understanding and preparing for these legal updates will be essential in navigating Florida's evolving condominium market.