Senate sends amended condo safety package with reserve funding considerations back to House

How to balance condo safety with financial concerns over the hefty price tag to achieve it is still an open-ended question, as legislation bounces back to the House for further consideration.

Senators voted unanimously for an amended version of HB 913, which updates laws the Legislature passed after the 2021 collapse of the Champlain Towers South condo in Surfside.

The bill’s Senate sponsor, Fleming Island Republican Sen. Jennifer Bradley, noted the “sweeping reforms” she and Miami Republican Rep. Vicki Lopez carried in the past several Sessions, including a measure last year targeting corruption, mismanagement, fraud and condo board election abuse.

But the cost of adhering to the new obligations, particularly for reserve funding to make necessary structural repairs, has led to calls for relief as condo owners face financial difficulty that in some cases prompted them to sell their units.

“As we’ve watched the implementation of post-Surfside regulations, the process has revealed some very real pressure points both financially and otherwise. And that is no surprise; big change is difficult, but it’s our duty to adjust thoughtfully when circumstances demand,” Bradley said.

“That’s what this bill does. It addresses those pressure points to provide financial relief and flexibility, a more forgiving timeline and better oversight and accountability.”

HB 913, which Bradley substituted for her version of the legislation (SB 1742), aims to address the cost issue by enabling condo associations to use lines of credit to pay for pricey structural integrity reserves studies (SIRS) and clarifying that only buildings with three habitable stories must comply with SIRS requirements.

The bill retained a provision not included in the Senate version permitting condo associations to invest reserve funds without a vote of the unit owners. This allowance comes with a proviso that each board “use best efforts to make prudent investment decisions that carefully consider risk and return in an effort to maximize returns on invested funds.”

It guarantees condo associations a route to voting online, requires the Department of Business and Professional Regulation to create a standard form for SIRS and set criteria for determining the useful life of condo components, and allows more flexibility for excluding certain low-cost repairs from the SIRS total.

It also mandates that the minutes of a condo board’s meetings from the past year must be available online to association members, requires more transparency from hotels that also contain condos and prohibits the person or company that conducted the SIRS from having a financial interest in the person or company that performs the repairs.

Portions Bradley added extend the deadline for condo associations to complete their SIRS by one year to Dec. 31, allows for a two-year pause in reserve funding following a milestone inspection so associations can make vital structural safety repairs, and requires a substitute budget to be presented to owners for consideration that excludes discretionary funding if a proposed budget exceeds 115% of the prior year’s assessments.

There’s a lot more.

Bradley, Miami Republican Sen. Ileana Garcia and Hollywood independent Sen. Jason Pizzo received ample praise ahead of the 37-0 vote Wednesday for their work on the legislation, which included dozens of meetings with thousands of residents across the state in the past few years.

“I want to thank you all for just being gracious and carrying this legislation,” said Miami Gardens Democratic Sen. Shevrin Jones, whose district added Surfside after redistricting in 2022. “I’m sure we will have to come back and do more work, but you all are great listeners, and I appreciate all the work that you’ve done.”

Republican Sens. Jim Boyd, Nick DiCeglie and Gayle Harrell and Democratic Sens. Mack Bernard, Rosalind Osgood and Darryl Rouson expressed similar appreciation.

“This is one of the most complicated, complex issues that we’ve dealt with,” Boyd said. “It’s a huge, huge issue. You all have poured your heart and soul into it.”

HB 931 now pends scheduling on a future agenda for the House floor, where Lopez will again advocate for its passage.