It’s Crunch Time for Condos As Florida Deadlines Loom
Category: Financial and taxes in retirement
October 15, 2024 — As if Florida condo owners didn’t have enough to worry about. A deadly duo of hurricanes caused suffering and loss of human life. But Condo buildings 3 stories face other kinds of challenges, as December 31 deadlines for Florida’s stringent new engineering inspections and reserve studies go into effect.
If condo and HOA boards aren’t nervous about all this – they should be.
The original Building Safety Law (SB 4), and later clarified by SB 154, was a reaction to the tragic Surfside building collapse in Miami in 2021. It specifies 2 key requirements for condominium associations that will fundamentally those will affect their finances. The first is a Milestone Inspection Study, the second is the Structural Integrity Reserve Study. We will explain those in greater detail, later. But first, let’s talk about how this will unfold in the real world.
Comments on "It’s Crunch Time for Condos As Florida Deadlines Loom"
Admin says:
It is not a happy story, but it feels a little better when Topretirements scooped the NY Times on one. They just published a similar article to the one we wrote last week, "Why Owning a Florida Condo Is Turning into a Nightmare", talks in great detail about what we covered here. Theirs has many more facts and stories about real people and how they are affected. Some face ruinous $200,000 assessments, and probably the loss of their apartments. Worth reading on a topic that is very timely.
Admin says:
This article from the Tampa Bay Times puts more dimension on the issue. A lot of people living on Social Security and in older condo buildings are seeing huge increases in HOA fees. Listings for sale in FL are up 65%, sales and prices down. See "Homeowners Priced Out of Condos".
Admin says:
According to the Florida News Service, newly elected Republican Speaker of the Florida House says that lawmakers will start addressing condominium issues when they hold committee meetings prior to the 2025 regular session in March. Lawmakers are expected to address condominiums during the regular session, rather than a special session.
“I have heard the call for a special session on condos, just like the rest of us have,” Perez told reporters. “The question shouldn’t be when. The question should be, what? What is the solution that people are offering to the issue before condos? It’s an issue we’ll be discussing during session.”
Admin says:
The condo and HOA crisis continues to generate headlines, particularly in Florida. This article from the AP can help explain it. https://apnews.com/article/florida-condo-association-cost-increase-62de80fcc5de498309d9fea2b78a2984
Admin says:
Here is another article on this subject in the South Florida Sun Sentinel. A prominent condo lawyer points out the defects of Florida's well intentioned laws, hoping that other states can avoid creating problems while creating similar laws. https://www.sun-sentinel.com/2024/12/11/floridas-condo-market-faces-a-tough-test-opinion/?utm_source=XP+Dispatch+1+-+Becker+Lawyers+-+Managers+of+Community+Assoc&utm_campaign=44ee914afc-EMAIL_CAMPAIGN_2024_12_11_09_00&utm_medium=email&utm_term=0_52cfadc688-44ee914afc-569677924
Admin says:
Crunch time has come and gone for Florida's new condo laws - they are now in effect. But in the land of unintended consequences, condo owners are deeply upset by the impact. Dramatic increases in reserve requirements and building repairs, along with exploding insurance costs are starting to drive owners into selling or losing their investments. The Florida legislature is considering several bills to try to address the problem. But it might be too little too late. See https://www.sun-sentinel.com/2025/03/08/desantis-requested-help-for-elderly-condo-owners-here-are-the-proposals/