New Florida law pricing out condo owners

ST. PETERSBURG, Fla. (WFLA) — A new state law is making sure condominiums across Florida are more resilient after the Surfside condominium collapse. But complying with the legislation is pricing many condo owners out of their homes.

Right now, many buildings across the state are going through a very stringent inspection process to determine if there are any structural deficiencies.

However, many condo owners are unable to pay for the large assessment fees to cover the cost of repairs.

“I was shocked because I didn’t think it was going to be that high,” Rufina Cappelli said.

In many cases, the repairs needed to improve the structural integrity of the building are long overdue.

In June 2021, the Champlain Towers South condominium building in Surfside collapsed, killing 98 people inside.

Since then, Florida legislators have passed a new law that requires inspections for all condominiums and cooperative buildings that are three stories or higher.

Structural integrity reserve studies must be completed to determine if there are any issues with the structure or foundation of the building.

A “milestone” inspection is required for buildings that are more than 30 years old.

Complying with the new legislation comes with a steep cost that’s passed on to condo owners in the form of hefty special assessment fees.

“My condo has been kicking the can down the road for years,” Cappelli said. “Florida condos have allowed their reserves to go way down.”

There’s another challenge.

Condominium associations must have sufficient reserve money available to cover the cost of any structural repairs.

“They have to find a way to find the money,” said Mike Finn, an attorney based in St. Petersburg.  “The board can and will impose a lein on the condo and ultimately sell it in foreclosure and the condo owner could lose their home.”

The law also prohibits waiver of funding for certain structural reserves.

These new mandates from Florida legislators are prompting many condo owners to sell their properties before the assessment fees are due.

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