State Senator Files Bill to Allow Condo Boards to Invest Reserve Funds

First Anniversary Of Surfside Condo Collapse Nears In Florida

SURFSIDE, FLORIDA - JUNE 22: In an aerial view, a cleared lot where the 12-story Champlain Towers South condo building once stood is seen on June 22, 2022 in Surfside, Florida. This week marks the first anniversary of the tragic event where 98 people died when the building partially collapsed on June 24, 2021. (Photo by Joe Raedle/Getty Images)Photo: Joe Raedle / Getty Images News / Getty Images

Legislation aimed at helping condo boards manage large amounts of reserve cash is moving forward in Tallahassee.

State Senator Jennifer Bradley is sponsoring the bill that allows boards to invest the mandatory reserve money needed for repairs to prevent another Surfside collapse.

Board certified condominium law expert Eric Glazer says currently boards have no guidance on how to manage the millions.

SB 1742 would set parameters on hiring an investment firm and for making "prudent" investment decisions.

"The investment committee would have to come up with advisors and the fund would have to be invested with these advisors prudently," says attorney Glazer. "So, the investors would have their hands on the money, not the board of directors anymore."

The bill is part of a series of condo reforms proposed since the Surfside condo collapse four years ago.

Because of the new condo safety laws, many condo owners complain they can't afford the assessments and those who can are concerned about who is in charge of all the millions.

A senate committee passed the bill yesterday, but it has to pass two more committees before it goes before the full senate.


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