New Post-Surfside Law Creates Problems For Condo Buyers
In 2021, the partial collapse of Champlain Towers South in Surfside, FL killed 98 people and led to major legislative changes in how condo boards do business in the state. The legislature passed significant reforms in 2022-23, requiring recertification of buildings over three stories tall, as well as a mandate for each building to undergo a ‘structural integrity reserve study’ (SIRS). However, these reforms have led to new problems that can have potential complications for both condo associations and those wanting to purchase units.
Safety Leads To High Assessments
Historically, it was common in Florida for condo boards to fail to fully fund reserves that might have been necessary to conduct repairs on the buildings – the board of Champlain Towers did this for many years, only approving a $15 million assessment for that purpose mere months before the June 2021 collapse. The laws passed in 2023 effectively forbid that – after December 31, 2024, a condo association must, by law, approve reserves in their budget – specifically enough reserves to cover any necessary major repairs.
On paper this is a highly desirable outcome, with the reserve requirements helping to ensure that condominiums are better constructed and better maintained. However, because so many buildings waived reserves for years, increased special assessments are necessary now in order to make required repairs. The increased assessments required to fund these initiatives are pushing some condo owners (and prospective condo owners) out of the market – in some situations, unit owners are being asked to pay special assessments in six figures, and many simply cannot afford to do that.
Are These Assessments Valid?
Data from the real estate website Redfin estimates that condo prices and availability have both risen in the last three years for condominiums, However, because of the hefty special assessments being asked of many condo owners, a significant number of condo owners are looking to sell – but in turn, many are unable unless they find all-cash buyers. It is perhaps understandable that many Florida condo owners feel left in the lurch.
The Florida Condominium Act grants a condominium association the right to levy special assessments, provided that they do so appropriately, for the purpose of funding proper common expenses. While these assessments are expensive, they are generally held to be lawful. A condo association has the duty to act in the best interests of the association and the unit owners, and increasing the safety of residents will generally be seen to fulfill the association’s fiduciary duty.
Call A Tampa Community Association Attorney
While the ultimate outcome of these disputes between condo associations and their unit owners will play out over time, it is important to be aware that not every special assessment is appropriately requested. If you are unsure as to whether your association is seeking funds they have no right to request, a Tampa community association attorney from the Seward Law Office may be able to assist you. Call our office today to schedule a consultation.
Source:
apnews.com/article/politics-ron-desantis-building-collapses-surfside-collapse-af69251e6040cd11134e1595bf4f3f27
