Florida Senate District 37: A Truck Full of Condos
District 37 runs from Sunny Isles Beach up to the Palm Beach County line. It is one of the Florida senate districts with the highest concentration of condo units.
Condo Reserves and the Financial Impact
State Senator Jason Pizzo, a Democrat who represents district 37 in Tallahassee, said, “We’re a truck full of condos.” Pizzo also lives in a condo and says he hears from concerned condo constituents every day.
NBC6 sat down with Pizzo to talk about the financial impact of some of the reforms passed by the state legislature in the wake of the Surfside condo tragedy in 2021, specifically about the requirement for condo reserves to be adequately funded by the end of 2024.
Reforms and the Looming Deadline
Pizzo explained, “We saw for an entire generation people were waiving reserves, which was allowed by law, and really just sort of passing the buck, kicking the can, deferring maintenance.”
Several state leaders have suggested changing the looming reserve funding deadline as a way of easing some of the financial burdens of the reforms. However, the incoming speaker of the Florida House, South Florida Republican Daniel Perez, said they have already delayed the deadline enough.
Perez stated, “It’s for their own benefit. This is not a special interest push. This has nothing to do with politics. This has to do with saving lives because I never want to see another Surfside take place.”
The Reality of Condo Maintenance
Pizzo said, “The reality is you can’t slow down father time and mother nature is undefeated, right? So whatever we do up in a chamber in Tallahassee is not gonna slow down or stop the aging of a roof or other structural components.”
Special Assessments and the Condo Market
Condo associations may use special assessments to replenish reserves. Real estate experts warn the recent surge in the number of condo associations in older buildings that are imposing special assessments is having a real impact on the condo market.
A recent analysis by the South Florida real estate company ISG World showed in the third quarter of 2024, there were 20,080 active condo listings in Palm Beach, Broward, and Miami-Dade counties. Of those listings, 85% (17,041) were for condos in buildings that were older than 30 years.
ISG World CEO Craig Studnicky said, “The 30-year plus, that is very, very difficult to sell right now because of the fear of special assessments. I think the state of Florida is gonna have to help these condominium associations finance these special assessments.”
Conclusion
While some lawmakers have suggested changing the looming reserve funding deadline, Pizzo and Perez said that is not likely to happen. Instead, Pizzo would like state lawmakers to explore ways to bring down insurance costs, which is another big factor that is driving up the cost of condo ownership.
FAQs
Q: What is the current situation with condo reserves in Florida?
A: The state legislature has passed reforms requiring condo reserves to be adequately funded by the end of 2024.
Q: Are there efforts to change the looming reserve funding deadline?
A: Some lawmakers have suggested changing the deadline, but the incoming speaker of the Florida House, Daniel Perez, has said they have already delayed the deadline enough.
Q: What is the impact of special assessments on the condo market?
A: Real estate experts warn that the recent surge in special assessments is having a real impact on the condo market, making it difficult to sell older condos.
Q: Is a state bailout possible for condo associations?
A: State Senator Jason Pizzo and Speaker Daniel Perez have said that a state bailout is not likely to happen, and that condo associations will need to find other ways to finance special assessments.
