Stories of hardship
Courtesy Colbyt
One of the issues the Florida Legislature will take up in its upcoming March 4 session is what to do about condominiums. Specifically, whether to adjust its previously approved law requiring building inspections and reserve studies in order to ensure proper property maintenance and repair. The high cost of compliance with the new law has scared some condo owners into selling; others don’t know what to do, as we’ve reported in previous newsletters. Formal discussion on any adjustments to the law will begin tomorrow (Tuesday, January 14) at the Senate Regulated Industries Committee meeting and could have far reaching impacts on condo living affordability in the Sunshine State.
Condos on both sides of Florida’s famous coastline and in between have been affected by the regulations, with some having to close their doors to residents for emergency repairs after warnings from engineers. This past September, residents of Springbrook Gardens in Fort Lauderdale were informed they had 48 hours to move out of their condos after the 18-unit building, built back in 1947, was found to have progressive deterioration and corrosion in its foundation. Many opted out on repairs once they saw the $4.5 million price tag, and insurance premiums that reflected the imminent risk. The residents scrambled to find temporary housing in the meantime, as the building was put up for sale – most likely to be purchased by a developer, demolished and have a modern condo erected in its place.
While the move was heartbreaking for some residents, it came as a relief to others, who were happy to cut their losses. And they’re not the only ones, as per WPTV-TV, “Market analysts report that condo supply is increasing, prices are dropping, and sales are diminishing. In Tampa alone, the number of condos for sale surged by 57.2% from the previous year in July. Florida’s major metropolitan areas show HOA dues increasing by more than 15% year over year.”
Further south, alarming studies have shown that around 3 dozen high-rise buildings along the 12-mile stretch from Miami Beach to Sunny Isles Beach are sinking into the sand – some up to 3.1 inches and many are less than a decade old. You can see the list of condominiums and hotels here.
Some are blaming higher insurance costs for contributing to current condo affordability problems. But remember that Insurance is not a warranty policy that pays for maintenance and its price is based on risk. If you’re in a building that’s deemed unsafe or lacking property maintenance records, it’s unreasonable to expect the insurance premiums wouldn’t reflect that. It’s why, following the deadly Surfside Condo Collapse, the Florida Legislature passed condo reforms to help prevent the very sad scenario that these residents and others in Florida condominiums now find themselves.
LMA Newsletter of 1-13-25
