Launch Pad

June 30, 2023

Public Policy Update

Hello everyone. I’ve got great news to share as we head into a “hopefully” long weekend for many of you. On the eve of the effective date for the majority of legislation passed during the 2023 session, Governor DeSantis signed our remaining two legislative priorities, HB 1417 (Residential Tenancies) and SB 170 (Local Ordinances).

HB 1417 was one of our signature priorities this year because of the beneficial impact it will have on rental housing inventory in the state. In many cities around Florida, local governments have been passing landlord/tenant regulations that go far beyond what is prescribed in state law. 

Their intentions were certainly in the right place as they sought out ways to keep high rent prices in check. The problem, however, is the long-term implications of these types of policies which cause a cooling effect among builders who would much rather go elsewhere than build new units in a highly regulated environment that diminishes their rights in favor of others. Once builders leave an area, competition gets worse, rent goes even higher, and the housing problem gets worse for anyone who can still afford to live there. 

Now that HB 1417 is signed, the regulation of residential tenancies will fall under state law. As these local ordinances go through the process of being rolled back, there will eventually no longer be a patchwork of local regulations that drive away builders, and cause confusion between landlords and tenants. Even better, this new law works in concert with the Live Local Act which is set to create a wave of new affordable rental housing in the state over the next 10 years. Without HB 1417, builders would continue to be uneasy about creating new units in heavily regulated areas despite all the incentives the law provides. This would have actively worked against all the good that the Live Local Act is trying to accomplish.

Switching gears, we are also very excited to see SB 170 become law. This bill has the potential to help many local businesses, including vacation rental companies, fight back against harmful regulations that are causing them economic harm. 

The fact of the matter is that local governments routinely pass ordinances that directly and indirectly impact local businesses. Many of these local ordinances often have unintended consequences felt throughout the business community. SB 170 makes local governments show the impact of a new ordinance on businesses and suspend enforcement of an ordinance being challenged in court. This law effectively gives businesses some new tools to challenge unnecessary and burdensome regulations. 

So there you have it folks, 10 legislative priorities passed, and 10 legislative priorities signed into law. This truly was a fantastic legislative session and I look forward to getting reports from you all about how these new laws are being implemented, including what’s working and maybe some things that we need to continue to work with lawmakers on that need some tweaking.

Post-Session Bill Signing Activity 

All our 2023 legislative priorities have now been signed into law. Here is the final  summary of those priorities as well as the bills of interest that passed this year:

• Priority – SB 102 (Live Local Act): The comprehensive affordable housing bill that was a major priority for Florida Realtors® this year. This bill includes the statewide ban on rent control that we advocated for.
• Priority – HB 7063 (Tax Package): Includes a 1% cut to the Business Rent Tax, bringing it down from 5.5% to 4.5%, saving businesses approximately $260 million. This cut will take effect on Dec. 1, 2023, followed by the planned reduction to 2% in August 2024. 
• Priority – HB 761 (Telephone Solicitation): Amends certain provisions of the Florida Telephone Solicitation Act (FTSA) to clarify definitions and written consent requirements to put an end to frivolous lawsuits against brokerages and other businesses.
• Priority – SB 7052 (Insurer Accountability): Contains a number of provisions intended to increase consumer protection and insurer accountability in Florida. 
• Priority – HB 881 (My Safe Florida Home Program): Expands eligibility requirements of the home hardening grant program known as My Safe Florida Home and allocates an additional $100 million for the program. 
• Priority – SB 154 (Condominium and Cooperative Associations): Clarifies previous condo reforms, such as who can perform milestone inspections, flood insurance requirements, the specific items subject to a structural integrity reserve study, and the resale disclosure requirements associated with milestone inspections, reserve studies and newly added turnover inspection reports. 
• Priority – HB 213 (Limitation of Actions Involving Real Estate Appraisers): Prevents frivolous lawsuits against appraisers and appraisal management companies by establishing a four-year statutory limitation on the time in which a civil cause of action can be brought against a real estate appraiser, or appraisal management company, following the date the appraisal was performed.
• Priority – SB 2500 (State Budget): Allocates significant funding for projects that improve Florida’s water quality. The 2023-2024 fiscal year budget includes money for Everglades Restoration ($574 million), Indian River Lagoon ($100 million), Caloosahatchee River Watershed ($25 million), springs restoration ($50 million), beaches ($206 million), Biscayne Bay ($20 million), the Wastewater Grant Program ($200 million) and the Resilient Florida Grant Program ($320 million). Also includes $811 million for housing programs linked to the Live Local Act. 
• Priority – HB 1417 (Residential Tenancies):  HB 1417 corrects the issue of local landlord/tenant ordinances that negatively impact private property rights and local housing markets by preempting regulation of residential tenancies to the state. This is a retroactive preemption, meaning this bill will void all current local ordinances which expand beyond current state law. 
• Priority – SB 170 (Local Ordinances):  SB 170 makes local governments show the impact of a new ordinance on businesses and suspend enforcement of an ordinance being challenged in court. 
• Bill of Interest – SB 770 (Residential Loan Alternative Agreements): Created to stop certain very long-term listing agreements that were causing consumer harm. The original bill penalized legitimate real estate practices. Worked with lawmakers to amend the bill so long-standing real estate practices were not prevented.
• Bill of Interest – HB 133 (Fees in Lieu of Security Deposits): Provides the option for a landlord to offer a tenant to pay a fee in lieu of a security deposit.
• Bill of Interest – SB 574 (Termination of Agreements by a Servicemember): Provides clarity about the type of housing eligible for lease termination if a service member receives military orders.
• Bill of Interest – HB 1091 (Licensing Fee Relief): Instructs the Florida Department of Professional and Business Regulation (DBPR) to waive 50% of the initial licensing fee and 50% of a licensee’s renewal fee for the 2023-2024 and 2024-2025 fiscal years.
• Bill of Interest – HB 1379 (Environmental Protection): Comprehensive water quality bill that focuses on areas of the state with a Basin Management Action Plan (BMAP), reasonable assurance plan or other pollution reduction plan.
• Bill of Interest – SB 678 (Disposal of Property): Allows the Florida Department of Transportation to transfer property to a governmental entity without consideration if the property will be used for affordable housing.
• Bill of Interest – SB 264 (Interests of Foreign Countries): Limits and regulates the sale, purchase and ownership of certain properties in Florida by specific foreign principals, persons and entities.
• Bill of Interest – HB 793 (Collateral Protection Insurance on Real Property): Establishes a legal framework for the writing of forced-placed insurance coverage on real property in Florida. The bill specifies the coverage and premium must be based on a home’s “last known” replacement cost, maintains the separation between lenders or servicers and insurers or insurance agents, and minimizes the possibilities of unfair competition practices in the sale, placement, or solicitation and negotiation of CPI.
• Bill of Interest – HB 1419 (Real Property Fraud): Requires the Lee County Clerk of Court to implement the Title Fraud Prevention Through Identity Verification Pilot Program. An earlier version of the bill required real estate licensees to mail up to two fraud prevention notices to the potential seller of a listed property. Florida Realtors® advocacy efforts convinced legislators that this expensive and time-consuming burden would not have reduced real property fraud, and the notice requirements imposed upon Realtors – and title agents – were removed before final passage.
• Bill of Interest – HB 919 (Homeowners Associations): Creates an HOA Bill of Rights, provisions to reign in kickbacks, and fraudulent voting activities and conflicts of interest. It also allows for the removal of officers and directors under certain circumstances, and prevents fines from becoming a lien against homeowners.
• Bill of Interest – HB 869 (Department of Business and Professional Regulation): Modernizes communications between the Division of Hotels and Restaurants (H&R) and public lodging establishment licensees. The bill requires public lodging establishment licensees to create and maintain an online account and provide an email address to function as the primary contact for all communication from H&R. Each vacation rental or timeshare project must also submit any change in the street or unit address, or number of houses or units included under the license within 30 days of the change through the online system.

Interests of Foreign Countries Law Webinar

I hope you were able to tune into the webinar held yesterday by Florida Realtors Vice President of Law and Policy & General Counsel Juana Watkins on the new Interests of Foreign Countries law that goes into effect tomorrow. Juana and Marcia Tabak discussed the impact of the new law as it is currently known and went through the changes you can expect to see on the Florida Realtors Contracts for Sale and Purchase. The webinar was not recorded but registrants will receive the slide presentation that was given.

If you were not able to tune in, the big takeaway for you is this: if you receive questions about the new law from clients and others, direct them to their attorney for information. DO NOT be the source of information on the law and DO NOT try to advise people regarding it. This is the best possible way to ensure you avoid any Fair Housing violations.

My Safe Florida Home Program Update

Florida Chief Financial Officer Jimmy Patronis provided an update regarding the My Safe Florida Home Program today which was one of our legislative priorities in 2022 and 2023. The CFO said that to date, the program has completed more than 39,790 free home inspections and obligated more than $114 million in home hardening grant funds to Floridians.

Florida Realtors successfully advocated for an expansion to the program this past session which resulted in several beneficial changes. My Safe Florida Home program changes effective July 1, 2023 include:

• Additional $100 million allocated for the program.
• Homes outside the wind-borne debris region are now eligible.
• Insured value of eligible homes for the home hardening grant was increased from $500,000 to $700,000.
• Townhomes are now eligible for opening protection (doors and windows) grants.
• Available grants for low-income homeowners increased from $5,000 to $10,000.

Learn more and apply for a free home inspection and home hardening grant here.

Please reach out to us at publicpolicy@floridarealtors.org with any questions you may have.

Sincerely,

Andy Gonzalez
Vice President of Public Policy
Florida Realtors®