Bad news for Florida condo owners: New law raising fees remains in effect

The president of Florida’s Senate has confirmed that no special session will be convened to reconsider condominium safety legislation despite growing concerns from owners about the financial burden it imposes.

Senate Bill 4D, which became law following the tragic collapse of a condo building in Surfside, was designed to fund necessary repairs and enhance safety measures. However, some condo owners struggle to afford the steep fees associated with these requirements. In many cases, these fees are significant, with some residents facing bills of tens of thousands of dollars.

Despite the financial strain, the alternative — neglecting essential repairs — poses serious risks to the safety of building residents. Deborah Alejandro, a condo owner in Kissimmee, is facing a $3,000 special assessment from her HOA. While she acknowledges the importance of the repairs, she wishes the process had been more strategic.

"I'm not against it. Obviously, these things need to occur to improve our community," Alejandro said. "However, we could have done it in a more strategic, more intelligent way."

The law mandates that three-story or taller condominiums and cooperative association buildings must be inspected once they reach 30 years old (or 25 years old if the building is within three miles of a coastline). Subsequent inspections are required every decade.

The legislation was introduced in response to the Surfside condominium collapse, which claimed 98 lives. John Cadden, who runs the Condominium Advisory Group, emphasized that the law is intended to prevent such tragedies.

"For many years, people have elected to kick the can down the road," Cadden said. "It was pay now or pay later, and later is here."

Under the new law, if an inspection reveals that a building will need a new roof within ten years, and the estimated cost is $100,000, the HOA must accumulate that amount in reserve funds over the next decade. A building with 20 units equates to about $40 extra per month for each resident. However, if an inspection reveals an immediate need for a new roof, residents could be required to pay $5,000 upfront.

"No one has that type of money!" Alejandro, a single mother working two jobs, exclaimed. She expressed frustration that her HOA waited until the last minute to address the need for new electrical panels, now demanding $3,000.

Real estate attorney Karen Wonsetler pointed out that these costs come on top of another financial challenge: rising insurance premiums for condominium associations in Florida, which have increased from 30% to 300%.

If Alejandro fails to pay the assessment, a lien could be placed on her property. Wonsetler warns that many condo owners could face similar situations.

"If you can't afford it, you’ve got to sell your condo or watch it go through foreclosure. There's not much in between."

The Condominium Advisory Group advises residents to attend HOA meetings, stay informed, and ensure their voices are heard. Cadden believes that greater involvement could help prevent such situations in the future.