Florida Condo Owners Face Higher Costs Amid New Safety Law
Florida condominium owners are facing higher costs from condo associations in the new year, a consequence of a safety law passed by state lawmakers in 2022.
Background
The law requires associations to have sufficient reserves to cover major repairs and to conduct a survey of reserves every decade. This has led to significant increases in association payments for older condos, which are largely found in South Florida, according to state records.
Gov. Ron DeSantis Signs Law
Gov. Ron DeSantis signed the law in response to the partial collapse of Champlain Towers South, which killed 98 people in Surfside in June 2021. The law requires condo associations for buildings with three or more stories to file an inspection report focused on structure, maintenance, and expected costs for repairs or renovations by December 31.
Condo Owner Concerns
Kelli Roiter, a condo owner in Hallandale Beach, sympathizes with people having trouble paying the higher fees, but she supports the rules requiring associations to maintain reserves for repairs if it means her oceanfront building gets the repairs it needs.
Industry Concerns
Rick Madan, president of the Biscayne Neighborhoods Association, which represents 22 condo associations, said the law is bringing condo owners strife by forcing buildings to take full coverage and bringing forth a blanket solution that doesn’t holistically address the crisis.
Legislative Response
Democratic State Sen. Jason Pizzo, who represented Surfside at the time of the collapse, agrees with Madan’s point about property insurance. Pizzo and state Sen. Jennifer Bradley held a condo summit in early December, where Pizzo warned of transparency among associations about the required projects for repair costs to prevent structural damage.
Industry Expert Insights
Luis Konski, a Miami attorney who deals with construction and commercial liability cases, said previous condo regulations kept fees low by failing to save money for future repairs, and then owners were hit with special assessments when repairs finally needed to be done. He said this encouraged many associations to ignore necessary but expensive maintenance, which is what likely led to the Surfside building collapse.
Conclusion
The new law is aimed at ensuring the safety of condo residents, but it has led to significant increases in association payments for older condos. While some condo owners are concerned about the higher costs, others support the measures to ensure their buildings receive the necessary repairs. The state is working to address the issue, but more needs to be done to ensure the long-term sustainability of the condo market.
FAQs
Q: What is the purpose of the new law?
A: The law requires condo associations to have sufficient reserves to cover major repairs and to conduct a survey of reserves every decade to ensure the safety of condo residents.
Q: How will the law affect condo owners?
A: The law will likely lead to significant increases in association payments for older condos, which may be a burden for some owners.
Q: What is the impact of the law on the condo market?
A: The law may lead to a cooling of the condo market, as buyers may be deterred by the higher costs and regulations. However, condos are still the most affordable form of home ownership, and the new regulations will provide buyers with more information to make informed decisions.
Q: What is being done to address the issue?
A: The state is working to address the issue by providing guidance to condo associations and ensuring that they are following the new rules. The state may also need to make legislative changes to ensure that the Department of Business and Professional Regulation has the necessary resources to review structural integrity and inspection reports.
