On Monday Florida Governor Ron DeSantis signed legislation that he says will provide relief to condo owners in Florida. DeSantis said, “We’re delivering reforms that will provide financial relief and flexibility, strengthen oversight for condo associations, and empower unit owners.”
DeSantis signed HB 913 and HB 393 and here’s how the Governor’s office described what he signed in a press release Monday.
HB 913 makes changes to the regulation of condos and cooperatives, increasing transparency and accountability on condominium associations, and providing needed financial relief for condo owners. The bill:
Addresses the affordability of mandated condo safety measures.
- Provides immediate relief from the sudden cost burden of fee assessments by extending the reserve study requirement for one year and allowing for a 2 year pause in reserve fund contributions to prioritize funding critical repairs identified in a milestone inspection.
- Increases the replacement cost of repairs required to be reserved and considered in the Structural Integrity Reserve Study (SIRS) from $10,000 to $25,000 to prioritize more critical repairs.
- Provides alternate funding options that give associations flexibility as they work to meet reserve funding requirements, including an on-ramp for funding of items that still have useful life left.
Enhances accountability for condo associations.
- Empowers boards and unit owners to terminate contracts if a manger fails to follow requirements of the state’s condo laws.
- Prohibits association managers whose license is revoked by DBPR from holding any role in a management firm or being licensed for 10 years.
Enhances oversight, transparency, and empowers condo owners to be more involved in the decision making of their associations.
- Requires full disclosure of potential conflicts of interest and mandates competitive bidding for contracts to make repairs on condominiums, protecting associations from self-dealing and ensuring fair value for owners.
- Requires associations to provide more information and records online, making it easier for residents to access records and understand how their communities are managed, and money is spent. Additionally, it provides associations with the ability to deliver documents electronically, saving time and money.
- Lays the groundwork for increased participation in community meetings by allowing for increased video conference usage and electronic voting.
- Requires condo associations to report information about their property to DBPR and provide additional association details, for state regulatory oversight.
- Mandates data sharing among local governments and state partners to better assess compliance with building safety requirements and understand the impact of reforms.
Promotes financial transparency.
- Includes requirements for increased financial transparency and requires that unit owners have access to their associations’ financial records.
- Allows associations more time to complete detailed financial reports.
- Requires funding method and related details for SIRS to be disclosed to unit owners and potential buyers and extends the time from 3 to 7 days prospective buyers have to review financial information.
HB 393 makes good improvements on the My Safe Florida Condo Pilot Program based on feedback and input from condo owners. The bill:
- Limits grant funding to improvements that will result in a mitigation credit, discount, or other rate differential for the building or structure to which the improvement is made.
- Lowers approval requirements from all unit owners to 75 percent of unit owners who reside in the affected structure.
- Updates eligible improvements to allow for replacement of the roof covering.
- Prohibits a condo from applying for an inspection or a grant if an association has not complied with SIRS and Milestone Inspection requirements.
- Restricts eligibility to buildings that are three or more stories in height and contain at least two single-family dwellings.