Florida Condo Owners Face Higher Costs as New Safety Law Takes Effect
Increased Fees for Condo Associations
Condo owners in Florida are facing higher costs from their associations as a result of a new safety law passed by state lawmakers in 2022. The law requires condo associations to have sufficient reserves to cover major repairs and to conduct a survey of reserves every decade. This has led to a surge in fees for older condos, particularly those in South Florida, as they struggle to fund the necessary repairs and reserve funds.
The Law’s Origins
The law was passed 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 Owners’ Concerns
Condo owner Kelli Roiter, who lives in a 1971-built building in Hallandale Beach, sympathizes with those struggling to pay the higher fees but supports the new regulations. "I’m concerned that this building will collapse," she said. "There are nights I wake up hearing a creak, and I jump. And then I remind myself that, ‘no, no, no, we’re safe.’ But am I safe?"
Challenges for Condo Associations
Rick Madan, president of the Biscayne Neighborhoods Association, which represents 22 condo associations, argues that 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. "You’re making us do all these reserve studies. You’re making us fund our reserves more, so we have to come up with more money," he said.
State Senator’s Perspective
Democratic State Sen. Jason Pizzo, who represented Surfside at the time of the collapse, agrees with Madan’s point about property insurance. "It’s important for associations to have transparency with condo owners to ensure that the rising payments are truly related to repairs and not to amenity costs, and that it is done within a reasonable timeframe for residents’ safety," he said.
Inspections and Maintenance
Pizzo warned of transparency among associations about the required projects for repair costs to prevent structural damage. He emphasized the importance of objective inspections of older buildings to ensure that they are safe.
Industry Experts’ Views
Luis Konski, a Miami attorney who deals with construction and commercial liability cases, believes that previous condo regulations kept fees low by failing to save money for future repairs, leading to special assessments when repairs finally needed to be done. "It’s a question of do you save money or do you save lives?" he said. "You can’t do both."
Rebeca Castellon, a real estate agent, agrees with the idea of requiring condo associations to maintain reserves for future repairs but acknowledges that the timing is bad given the recent surge in insurance costs and inflation.
Conclusion
The new law may bring short-term challenges for condo owners, but it is crucial for ensuring the long-term safety and integrity of Florida’s condominium market. As the state continues to grapple with the condo crisis, it is essential to strike a balance between providing adequate protection for residents and promoting affordability and transparency in the industry.
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.
Q: What is the impact on condo owners?
A: Condo owners may face higher fees as a result of the new regulations, particularly for older condos.
Q: What are the challenges for condo associations?
A: Condo associations face increased costs and administrative burdens, which may lead to higher fees for owners.
Q: What is the role of the state in regulating the condo market?
A: The state has a crucial role in ensuring the safety and integrity of the condo market, including regulating associations and providing oversight.
Q: What is the outlook for the condo market?
A: The market may be impacted in the short term, but the long-term benefits of the new law will outweigh the challenges, according to industry experts.
