Florida Condominium Owners Face Rising Costs Due to New Safety Regulations
MIAMI — Condominium owners across Florida are preparing for significant increases in their association fees starting in the new year, following a safety law passed by state lawmakers in 2022. This legislation mandates that condo associations maintain adequate reserves to cover future repairs and conduct reserve surveys every ten years.
The newly enacted regulations resulted from the tragic partial collapse of the Champlain Towers South in Surfside, which claimed 98 lives in June 2021. Governor Ron DeSantis signed the law into effect to enhance safety measures in older condominium buildings. As a consequence, many older condos, particularly in South Florida, are now facing substantial increases in their association payments to fund these reserves and repair costs.
Requirements for Condo Associations
Starting December 31, associations managing buildings with three or more stories must submit an inspection report detailing structural condition, maintenance, and future repair costs. This report reflects a step toward addressing broader concerns regarding Florida’s condo and property insurance crisis.
According to a May report from the Florida Office of Insurance Regulation, the average homeowner’s insurance premium in the state is around $3,600, which is approximately $1,000 above the national average. This financial strain is compounded for condo owners, leading to concerns about affordability.
Concerns from Residents
Kelli Roiter, a condo owner in Hallandale Beach, expresses empathy for those struggling to manage increased fees. However, she underscores the importance of the new rules, advocating for the necessary repairs to her building, which was built in 1971. Roiter shares her anxiety regarding the structural integrity of her condo, echoing fears reminiscent of the Champlain Towers South disaster. “I’m concerned that this building will collapse,” she stated, revealing her nightly worries.
Conversely, Rick Madan, president of the Biscayne Neighborhoods Association, believes the new law inadvertently burdens condo owners. He argues that by treating newer condos the same as older buildings in terms of reserve funds and inspection requirements, the law imposes additional financial stress. Madan described this situation as especially challenging for retirees living on fixed incomes. “You’re making us do all these reserve studies,” he said, voicing frustration over added financial pressures.
Legislative Perspectives
Senator Jason Pizzo, who represented Surfside during the time of the tragic collapse, shares similar concerns about property insurance. He co-hosted a condo summit in December, addressing the necessity of transparency among associations concerning repair costs. Pizzo stressed the importance of clear communication, ensuring that rising payments are attributed to legitimate repair needs and not excessive amenity costs.
With nearly 90% of Florida’s 1.6 million condos being over 30 years old, Pizzo notes a pressing need for inspections to determine any immediate structural issues that might arise.
Future Implications for Condo Associations
Attorney Luis Konski, specializing in construction and commercial liability, warns that previous regulations allowed associations to defer essential repairs, leading to unexpected financial liabilities through special assessments when maintenance inevitably became urgent. He questions the state’s capacity to enforce compliance with the new rules effectively, suggesting that insufficient oversight could result in repeating past mistakes, potentially endangering lives.
Market Reaction
The ongoing adjustments in association fees have cooled Florida’s condo market as potential buyers reconsider their options amid increasing costs. Real estate agent Rebeca Castellon notes the current financial environment challenges condo owners due to rising fees and insurance costs. However, she believes the new regulations can ultimately provide buyers with essential information that may guide their future decisions.
As condominiums in the state face increased scrutiny and rising expenses, the question looms: will these reforms ultimately lead to safer living conditions, or will they impose unsustainable financial pressures on Florida’s condo owners?
