There are several bills and resolutions impacting Florida communities and property owners that our firm’s South Florida community association attorneys are keeping an eye on as they make their way through both chambers of the Florida Legislature. Here’s an overview (albeit not a comprehensive nor an exhaustive list of all pending bills) of some of the measures being considered:
A joint resolution from Sen. Blaise Ingoglia (R-Spring Hill), SJR 1016 proposes an amendment to the Florida Constitution to increase the homestead exemption in the state from $25,000 for school district levies and $50,000 for all other levies to $75,000 for all levies. This would lower property taxes and reduce revenues for local government services. If passed by the legislature, it would require at least 60 percent approval by voters in the next statewide election for it to be adopted as a new amendment to the state constitution.
HB 1415/SB 690 is a bill from Sen. Rosalind Osgood (D-Tamarac) and Rep. Bruce Antone (D-Orlando) that addresses condominium structural integrity reserve studies. Although the bill does not seek to modify provisions within Chapter 718, Florida Statutes, pertaining to structural integrity reserve studies, it would purportedly change the current safety requirements for such mandatory studies to apply only condos that are six stories or higher, rather than the current requirement for condos three stories or higher. Associations for condominiums five stories or less would be allowed to opt out of the inspection and vote to waive or reduce contributions to the mandated reserve.
A bill from Sen. Jennifer Bradley (R-Fleming Island), SB 1742 aims to revise various provisions of current statutes including some which, if adopted, would allow association boards to invest reserve funds and enable associations required to have a structural reserve study to secure a line of credit instead of maintaining all or part of the mandated reserve funds. It would also allow associations that have completed a milestone inspection within the previous two years to pause reserve fund contributions in budgets adopted on or before Dec. 31, 2028 until a structural integrity reserve study is completed.
The bill would also allow associations that complete milestone inspections to delay a structural integrity reserve study for up to two budget years. Associations would also be allowed to pause their reserve contributions or reduce reserve funding if a local building official determines the entire building is uninhabitable due to natural emergency, and to use reserve funds to make it habitable.
SB 1316 from Sen. Erin Grall (R-Fort Pierce) has also been filed and, if adopted, would allow communities to create special resilience districts to collect for projects for flood and sea-level rise mitigation, and provide for septic to sewer conversions. The districts would also provide for the redevelopment of mobile home parks, manufactured housing, and areas where most of the first floor is below base flood elevation.
HB 913 from Rep. Vicki L. Lopez (R-Miami) would require associations to maintain adequate property insurance and block Citizens Property Insurance Corporation from issuing or renewing coverage for condominium associations or owners unless the association has complied with structural integrity reserve study and milestone inspection requirements. It would also require structural integrity reserve studies every 10 years, and mandate that associations provide timely financial reports and disclosures related to inspections and studies to unit owners.
The bill would allow condo associations to levy special assessments and obtain loans to pay for necessary maintenance, repair, or replacement of the condominium property to address health and safety concerns without prior membership approval. Association members would be allowed to vote to secure a line of credit for up to 35% of the reserves required, and associations would be able to pool their reserve accounts for two or more required components.
It would also address conflicts of interest by banning anyone who performs structural integrity reserve studies from repairing, contracting to repair, or having financial interests in anyone else repairing any issues found via the inspection.
The bill would add stricter penalties for board members who violate record-keeping requirements, and it would clarify the rights for record access and transparency in board meetings. It would also bring added clarity to the process for recalling board members, and require condo associations to pay attorney fees and costs for an owner if the Department of Business and Professional Services or a state court rules against an association in a dispute. The bill also includes changes to the requirements to effectuate condominium terminations.