House Bill 913 – Let’s take a look at a few of the pros and cons:
✅ Pros of HB 913
- Enhanced Safety Compliance
The bill mandates stricter enforcement of safety inspections, including milestone inspections and Structural Integrity Reserve Studies (SIRS). - Financial Flexibility for Associations
Associations have the option to pause reserve funding for two years post-inspection and also have the option to utilize loans or lines of credit to meet reserve requirements upon approval from a majority of the membership. The goal is to provide some financial relief to cash-strapped condominium communities. - Improved Transparency and Governance
Professionals bidding on inspections or SIRS must disclose their intent to bid on subsequent repair work, if applicable. This section is intended to enhance transparency. - Streamlined Condo Termination Process
HB 913 aims to simplify the process for dissolving / terminating condominium associations.
❌ Cons of HB 913
- Potential Loss of Insurance Coverage
Associations who fail to meet the inspection / funding requirements under Chapter 718, F.S., may be ineligible for coverage from Citizens Property Insurance, potentially forcing them into private insurance markets at a higher cost or, worse, leaving them uninsured. - Increased Financial Burden on Owners
Noncompliance could lead to higher insurance premiums or special assessments, increasing the financial burden on owners (those lines of credit / loans will need to paid back at some point…). - Risk of Redevelopment / Loss of Homes
Simplifying the condominium termination process could lead to pressure for redevelopment, which may cause more owners to lose their units to termination against their will. - Administrative Challenges for Associations
Understanding and implementing these changes presents its own concern.
