Florida legislative roundup: Here are real estate bills that passed and failed

In broad changes, the Florida Legislature passed bills related to condo safety laws enacted after the deadly Surfside condo collapse, and the state’s workforce housing law, known as the Live Local Act.

The bills, both approved just before the legislative session closed late last week, now head to Gov. Ron DeSantis’ desk for final approval.

Bills aimed at curbing mismanagement and fraud at homeowners associations fizzled early in the session. Roughly half of Florida’s residents live in communities governed by associations led by volunteer board members. For decades, residents at some associations have accused board members and managers of mismanagement.

Other bills tied to the industry failed to move forward. House Bill 1461, which called for the elimination of the Florida Real Estate Commission, the board that oversees agents, brokers and brokerages, was withdrawn.

Overall, Florida lawmakers filed nearly 2,000 proposed bills for the session, but just a fraction will end up becoming law.

Here are the real estate related bills that passed:

SB 1742/HB 913: Condo safety law updates

Laws passed after the collapse of Champlain Towers South in 2021, which killed 98 people, require condo buildings of at least 30 years old and at least three stories to have completed structural integrity reserve studies (SIRS) by the end of last year. Current law also requires associations to fund their reserves in their budgets starting this year, based on these studies. And it mandates milestone inspections for condo buildings that are at least three stories tall once they are 30 years old, and then every 10 years afterward.

The latest bills extend the deadline for SIRS to the end of this year. They also address inspections, reserve studies, funding, community association managers and more, including:

If condo associations completed their milestone inspections within the previous two years, their boards will be able to pause or reduce reserve fund contributions if the association approves it. This will apply to associations with budgets adopted by the end of 2028, and does not apply to developer controlled associations.
Associations will be able to use lines of credit or loans to fund specific reserves.
Licensed architects or engineers who bid on milestone inspection work will be required to disclose in writing their intent to bid on future work, which may be recommended by the milestone inspection. Contractors or design professionals who bid to complete work tied to the milestone inspection can’t have an interest in the company providing the milestone inspection or be related by blood or marriage to the person or entity completing the inspection.
Community association managers will be required to create and maintain online licensure accounts and disclose the company they work for. Such managers who had their licenses revoked can’t have an interest in or be employed by a property management firm anytime during the 10-year period immediately following that manager’s license being revoked.
The local enforcement agency (city or county) will be required, by the end of this year, to provide the state with information disclosing the number of buildings requiring milestone inspections, the number of buildings that have completed the first phases of their inspections, those granted extensions, those requiring phase twos, details on the permit applications required, and a list of buildings that have been deemed unsafe or uninhabitable. The state’s Office of Program Policy Analysis and Government Accountability will receive this information.
Condo association budgets are required to include reserves for major projects, such as roof replacements, building painting and pavement resurfacing. The legislation will raise the minimum cost threshold to $25,000, up from $10,000.

SB 1730/HB 943: Affordable housing/Live Local Act amendments

Tweaks to Florida’s Live Local Act broaden already significant state control over local municipalities, a win for developers. Last minute amendments to both versions of the bill alarmed preservationists, residents and local officials over concerns that historic neighborhoods such as Miami Beach’s Art Deco district could be wiped out.

Live Local, which became law in 2023, incentivizes developers that set at least 40 percent of their residential units for workforce housing into their projects with tax breaks and density and height bonuses, among other perks. It requires cities and counties to administratively approve applications for Live Local projects, in some cases bypassing city and county boards.

Developers have filed dozens of Live Local applications across the state.

The latest bills also apply to projects planned in historic districts, requiring only administrative approval of demolition of buildings in those areas. If proposed projects are on lots with contributing structures of buildings within historic districts, or on a property with a building listed on the National Register of Historic Places, a developer will be able to build as high as the tallest building within three-fourths of a mile.

Many buildings in Miami Beach’s Art Deco district, for example, are at risk because while they’re in historic districts, the majority of buildings aren’t on the national register. Miami Beach commissioner Alex Fernandez wrote in an email blast that the bill weakens the city’s historic preservation board.

While he was supportive of 11th hour compromises, such as allowing municipalities to require design standards like facade replication, he said that he hopes DeSantis will veto the legislation.

Fernandez also said that the level of uncertainty created by annual changes to Live Local in Tallahassee has “a chilling effect on good planning.”

The bills outline a number of other amendments, including requiring municipalities to reduce parking requirements by 15 percent if they comply with Live Local. Cities and counties will also also have to approve Live Local projects on land owned by religious institutions, and municipalities would have to allow developers to include adjacent land in their projects.

Beginning Nov. 1, 2026, local governments will be required to provide annual reports to the state with summaries of Live Local-related litigation and the status of those lawsuits, and a list of projects proposed and approved with details about the projects, including the number of workforce housing units and the targeted household incomes.

The legislation will also aim to crack down on cities holding up applications via litigation with developers by capping attorneys fees to $250,000 and having the courts prioritize these lawsuits over others.

Here are the real estate related bills that were withdrawn or failed:

House Bill 923, which would have expanded on affordable housing tax credits and developers’ ability to transfer them, was withdrawn.

HOAs ombudsman, fraud investigation program, recalls

This year, mismanagement at condo and homeowners associations was overshadowed by the urgency to address issues at condo complexes due to SIRS and milestone inspections, including the hefty cost burden on unit owners.

“They just decided, ‘We are going to get that done,’” said Travis Moore, a lobbyist for condo associations group Community Associations Institute. “They were like, ‘Let’s just get that 190-page bill [HB 913] done, allowing associations to use loans and lines of credit.”

At last year’s session, lawmakers approved a law addressing allegations of fraud, misappropriation of assessments and other types of mismanagement at condo associations and HOAs. The law, which criminalized kickbacks and concealment of records, largely was a response to the alleged massive fraud scheme at the Hammocks, South Florida’s biggest HOA. In 2022, authorities charged four former board members with misappropriating millions of dollars from the HOA. Police arrested family members and friends of the charged board members in subsequent years over their alleged role in the scheme.

This year, legislators decided to give the effects of last year’s law more time to be absorbed before they approve new association laws, Moore said.

“The thought was from the policymakers, ‘Let’s give this HOA thing a year to figure out how it’s working, and then we come back and do fixes,’” he said.

SB 120/HB 137: HOA ombudsman

The bill called for the appointment of an HOA ombudsman.

The Florida Department of Business and Professional Regulation (DBPR) has an ombudsman for condo associations, but not for HOAs. This is in line with state law that gives DBPR more oversight over condos than HOAs.

The administrative staff member would have served as a liaison between homeowners, the DBPR and HOA leaders, including managers and boards of directors. The HOA ombudsman would have reviewed homeowners complaints and recommended DBPR investigations of suspected election tampering.

Sen. Danny Burgess, a Republican whose district includes parts of Hillsborough and Pasco counties, and Rep. Jervonte “Tae” Edmonds, a Democrat representing a portion of Palm Beach County, introduced the bills. Neither returned a request for comment.

SB 368: Fraud investigation pilot program

The proposal would have created the Economic Crime, Fraud and Corruption Investigation Pilot Program for both condo and homeowners associations within the Florida Legal Affairs Department.

Under the bill, a newly created HOA ombudsman position would have had the power to void elections in cases of voting tampering, request a court-appointed receiver for an association, conduct association audits and issue subpoenas.

The investigation pilot program also would have reviewed complaints, deciding whether they should be escalated to the state or the state attorney’s offices.

The bill also eased repercussions, such as fines and suspensions from using common areas and amenities for homeowners.

In South Florida, some homeowners have alleged that their board members use fines and suspensions to retaliate against them for alleging mismanagement, The Real Deal’s investigation revealed. Generally, fines are levied for alleged violations of association rules such as leaving trash out for too long, painting homes in unapproved colors and similar infractions.

The legislation would have capped fines at $1,000. It also would have scrapped fines and suspensions for homeowners who fix issues before his/her hearing. Also, if an issue is fixed in 30 days after a hearing, the fine would have been halved.

The bill was introduced by Sen. Ileana Garcia, a Republican who represents part of Miami-Dade County. She didn’t return a request for comment.

HB 983/SB 1600: HOA recalls, amenity fees

At some South Florida associations, residents at HOAs have led recall elections against board members. But in reviewing the recall petitions, association attorneys have sometimes voided some residents’ signatures, citing overdue assessments or other issues, according to TRD’s interviews with homeowners and attorneys.

The bills would have lifted all suspensions on homeowners’ voting rights in recall elections. It also would have required boards to hold a meeting within five business days after receiving a recall petition to decide its validity.

But another provision in HB 983 had legislators concerned. It called for amenity fees at HOAs, which would be different from the maintenance and special assessments residents pay. The amenity dues would have been for pools, tennis courts, clubhouses or similar recreational facilities. Associations would have had to pay them to private companies that own the amenities.

Rep. Juan Carlos Porras, who co-introduced HB 983, said the bill wasn’t taken up because lawmakers were busy addressing the controversy with SIRS and milestone inspections. Porras, a Republican, represents parts of Miami-Dade County.

But Moore, the lobbyist, said the amenity fee provision raised a red flag for lawmakers.

Generally, after developers complete a new residential community and sell the majority of homes, control of the entire property is turned over to the association. HB 983 would have allowed developers to charge an amenity fee to associations even after turning over control of the communities.

“Homebuilders were trying to do amenity fees and club fees, where you are locked in in eternity to pay fees,” Moore said. “Essentially, you never own any of the stuff. … The Senate hated that language.”

HB 983 also was co-introduced by Rep. Meg Weinberger, a Republican representing a portion of Palm Beach County. SB 1600, which didn’t include the amenity fee provision, was introduced by Sen. Kristen Aston Arrington. Neither returned requests for comment.

Residential

South Florida

Florida bills aim to boost HOA and condo association oversight, ease structural integrity requirements