Key Takeaways from City Hall Meeting on Condo Law and Property Insurance Changes
On Monday, July 17th, Representative Vicki Lopez and Senator Bradley hosted a Townhall meeting which covered updates to condo law and property insurance. Attendees listened to Senator Jennifer Bradley, who sponsored the original SB 4D in response to the Surfside tragedy, Representative Vicki Lopez, and Senator Alexis Calatayud. The primary focus of the discussion was centered around the common interests and rights of condo owners, particularly emphasizing the need for transparency and compliance with new legislative measures. This blog post provides a comprehensive overview of the main points covered during the meeting.
Transparency and Compliance: One of the major concerns highlighted was the lack of transparency experienced by condo owners. The speakers emphasized the importance of Senate Bill 154, which aims to ensure that all parties involved are working from the same set of facts. Miami Dade County is setting the standards, and the City is responsible for enforcement. The Deputy Director of the Miami Dade County Recertification Department also acknowledged the mistakes they have already identified, underscoring the need for improved compliance.
Structural Inspection and Reserves Study (SIRS): The speakers discussed the average cost of engineering reports for SIRS, which ranges from $25,000 to $50,000. They addressed the fears of inspectors, who may be held personally liable for even minor issues. The importance of timely completion of SIRS was stressed, urging condo owners not to wait, as noncompliance would be against the law. Owners were advised to be proactive and persistent if their board was not taking appropriate action.
Access to Records and Legal Requirements: The importance of owners having access to records was emphasized, particularly regarding the legal requirements for information that should be available on condo websites for buildings with over 150 units.
True Reserves and Insurance: The speakers discussed the connection between true reserves and obtaining insurance and loans. They emphasized the need for sufficient reserves, separate from those required by SIRS. The changes allow SIRS reserves to be pooled under a structural/separated account for specific items. The ability to secure insurance was tied to the financial health of the building, as banks and insurance companies scrutinize management practices more extensively than before.
Reinsurance and Insurance Rates: Representative Lopez addressed the impact of the global reinsurance market on insurance rates, which increased due to factors such as hurricanes and the Ukraine conflict. To address this, a state reinsurance pool has been established, but its full effects will take time to materialize. Representative Lopez shared her personal experience with insurance bids, including an exorbitant quote from Citizen and three fair bids from other providers. She also mentioned the challenges related to flood insurance requirements.
One notable observation from the meeting was the respectful and collaborative demeanor of the speakers, who patiently listened to all attendees, including those who spoke at length. This stood in stark contrast to the dismissive behavior displayed by some current commissioners in similar settings none whom which were present at this particular meeting.
The meeting provided valuable insights into the changes in condo law and property insurance regulations, emphasizing the importance of transparency, compliance, and financial stability for the well-being of condo owners and the community as a whole.