House Bill 913: Change Is Coming—Is Your Association Ready?

House Bill 913 is making its way through the legislative process, and while it has not yet become law, it has already cleared one committee and is gaining strong momentum. If passed, this bill would bring significant changes to condominium governance, particularly in safety, financial responsibility, and transparency. While the intent behind the bill is clear, implementing these changes will ultimately fall on the boards and management teams responsible for compliance.

Understanding the Impact of House Bill 913

Compliance does not happen automatically. It requires time, organization, and continuous oversight. For onsite teams and managers, this bill means increased responsibilities, including additional tracking, coordination, and administrative tasks.

One of the most significant potential changes involves the insurance landscape. If the bill passes, insurance providers—especially Citizens Insurance—would be prohibited from issuing or renewing policies for associations that fail to meet their structural obligations. Associations that have delayed milestone inspections or have not completed their Structural Integrity Reserve Study (SIRS) could face policy cancellations or non-renewals.

The Financial Consequences for Associations

Without proper insurance, associations could face severe financial consequences. Lenders may call loans due to lack of coverage, leaving associations scrambling for emergency financing. Unit owners may struggle to sell their properties if buyers cannot secure loans in a building without proper insurance. In the worst cases, associations may be forced into expensive last-resort insurance markets, driving up costs for all owners.

This places management teams in an incredibly difficult position. Boards may have no choice but to impose significant special assessments to resolve these issues—costly measures that could have been avoided with proactive planning. Unfortunately, many associations wait until they receive a cancellation notice before taking action, at which point their options become limited and expensive.

Board Authority for Special Assessments and Loans

Another key provision in the bill would grant boards the authority to levy special assessments and secure loans without requiring membership approval in cases necessary for safety and compliance. While this makes sense from a governance standpoint—as waiting for owner votes could delay critical repairs—managers will be responsible for handling the resulting challenges.

Owners will still demand explanations, and not every board is comfortable making tough financial decisions. Management teams will need to spend significant time educating boards, crafting clear communication strategies, and addressing concerns from owners. Processing loans and assessments requires research, documentation, and financial coordination. While this bill removes bureaucratic barriers, it does not eliminate the effort required to execute these financial decisions effectively.

Transparency and Record-Keeping Requirements

Another major component of the bill would require associations to upload seven years of meeting minutes to their website. While transparency is essential, many associations have struggled with proper record-keeping. Missing financial records, incomplete meeting minutes, and disorganized historical data could create challenges for compliance.

For management teams, this presents a two-fold challenge:

1. Recovering Lost or Incomplete Records – Managers may need to track down, reconstruct, or explain missing documentation, which is a time-consuming and labor-intensive process.
2. Managing Resident Scrutiny – Once documents are published, residents will likely scrutinize past decisions, question missing records, and demand explanations.

Preparing for Compliance: What Associations Should Do Now

Handling this proactively will be critical. Before rushing to upload documents, associations should assess their current record-keeping practices and identify any gaps. If records are missing, it is better to address this early rather than react to complaints later. A clear explanation such as:

“The association has made every effort to compile and publish past meeting minutes. Some historical records may be incomplete, but we are committed to ensuring proper record-keeping moving forward.”

This approach helps manage expectations while demonstrating a commitment to transparency. Additionally, managers and boards should prepare for resident scrutiny and be ready to address concerns diplomatically.

Be Proactive: Stay Ahead of Legislative Changes

Although House Bill 913 has not yet become law, its progress signals that change is coming. Boards and management teams should start preparing now to ensure compliance and avoid last-minute crises. A proactive approach includes:

• Conducting Required Inspections and Reserve Studies – Ensure your association meets structural obligations to avoid insurance issues.
• Developing a Clear Communication Plan – Prepare messaging for special assessments and loans to minimize owner resistance.
• Organizing Records for Transparency Compliance – Assess current document availability and address any gaps before new requirements take effect.

If your association is unsure how to navigate these potential changes, now is the time to act. The best way to protect your community is to prepare in advance. Contact your management team today to discuss a strategy for compliance and financial stability before these new regulations take effect.