Noncompliance with Building Safety Laws Draws Scrutiny
A Miami lawmaker is spearheading efforts to hold condominium associations accountable for adhering to Florida’s newly implemented building safety regulations. These laws, adopted in the aftermath of the tragic Surfside condo collapse in 2021, are designed to ensure the safety and sustainability of residential buildings, particularly those three stories and higher.
Under state law, condominium associations were required to complete a building inspection and conduct a funding study for future repairs by December 31, 2022. However, of the 11,270 associations mandated to comply, only about one-third have followed through, according to Florida Department of Business and Professional Regulation Secretary Melanie Griffin. Alarmingly, there are no criminal or financial penalties for noncompliance, leaving many associations to skirt the requirements with little consequence.
The lack of enforcement and apathy among some associations has prompted Republican Rep. Vicki Lopez from Miami to file HB 913—a comprehensive 99-page bill aimed at modernizing condo management while pushing for greater compliance with building safety provisions.
Insurance Coverage Tied to Compliance
One of the most debated provisions in Lopez’s bill proposes that Citizens Property Insurance, the state’s insurer of last resort, cease providing coverage to associations that fail to meet the required standards. This measure would create a definitive link between compliance and financial liability.
Lopez has been vocal about her stance, stating that associations must take responsibility for their obligations. Speaking at a recent condo summit hosted by Miami Realtors, she made it clear that there would be “no financial bailouts” for associations that neglected their funding studies.
Her position is not without opposition. Critics, including state Sen. Ileana Garcia, worry that the bill could cause significant upheaval. Garcia argued that tying insurance to compliance places undue pressure on associations and risks pushing lower-income residents, seniors, and retirees into financial distress due to the steep special assessments needed to fund required repairs.
“Citizens has long served as a safety net for residents,” Garcia remarked, cautioning that the legislation could disrupt thousands of Floridians relying on this lifeline for property coverage.
The Financial Strain of Compliance
A key hurdle for many associations is the financial burden of completing the required studies and budgeting for future repairs. According to Griffin, the median cost of a study is approximately $6,000, though the actual expenses can vary depending on the building’s size and condition.
Once completed, these studies often recommend significant budget increases for reserves, forcing associations to levy special assessments or take out loans—an option Lopez’s bill explicitly allows, even without a vote from members. This aspect has triggered heated debates, with detractors arguing that such measures would disproportionately impact vulnerable condo owners.
Adding to the complexity is the state’s limited oversight capacity. While associations are required to notify the Department of Business and Professional Regulation (DBPR) upon study completion, they typically provide minimal additional information. This has left state officials struggling to monitor compliance and assess the true financial needs of associations.
The Fallout in South Florida
If Lopez’s proposal becomes law, its impact is expected to hit South Florida the hardest. The region is home to more than half of the 18,468 condo buildings currently insured by Citizens, spanning Miami-Dade, Broward, and Palm Beach counties. According to a Citizens spokesperson, 4,213 associations govern those properties, many of which could risk losing coverage if found noncompliant.
Some experts argue this dynamic could open opportunities for private insurers to step in, but others worry it would leave vulnerable residents facing higher premiums or even uninsured properties. Pete Dunbar, a condominium law expert, noted that the idea linking insurance coverage to compliance didn’t emerge from rigorous analysis but rather as a suggestion made during informal discussions among lawmakers last week.
Balancing Safety and Financial Feasibility
The push for accountability stems from a genuine need to address building safety and avoid another tragedy like Surfside. However, critics stress that any reform must include feasible pathways for associations to achieve compliance without uprooting residents’ financial stability.
Unveiling the complicated interplay between safety, financial feasibility, and market forces has raised essential questions for lawmakers, condo boards, and property owners across Florida. Is the stick approach—penalizing noncompliance by withholding insurance—the best path forward? Or does the legislation need to incorporate incentives or alternative solutions to ensure widespread adherence to safety laws?
Charting a Way Forward
Lopez’s legislation highlights the delicate balance between enforcing safety standards and maintaining affordability for condo residents. As the Florida legislature debates this proposal, the stakes remain high for homeowners, associations, and the broader real estate market.
For now, condo owners should ensure their associations are proactive in meeting state requirements. This may mean engaging with condo boards, staying informed about inspections and budgeting processes, and questioning how reserve funds are allocated. For board members, the conversation is equally critical—choosing transparency and prioritizing compliance could not only protect residents but also safeguard the property’s long-term value.
While debates surrounding HB 913 continue, one takeaway is clear. Addressing building safety is no longer a choice but a necessity, both to prevent future tragedies and to create a more sustainable future for Florida’s condo communities.