Florida Legislators Shoot Down 'Bailout' For Owners Of Aging Condos
Florida lawmakers have a message for condo owners hoping for financial relief from the state: don’t count on it.
Condo associations of buildings 30 years or older had until Dec. 31 to complete a structural integrity assessment and start funding reserves to cover repairs as a result of a law passed in the wake of the 2021 Champlain Towers South condo collapse that killed 98 people.
Many have expressed concern that the law will lead to displacement of longtime residents who can't afford to cover the cost of special assessments. In January, Gov. Ron DeSantis called for a special legislative session to address the concerns, but the state legislature's Republican leaders said they would take up the issue when their regular session begins March 4.
Florida House Speaker Daniel Perez and Rep. Vicki Lopez, a Republican from Miami, discussed potential changes to condo laws on Tuesday at the Florida Chamber of Commerce Legislative Fly-In event in Tallahassee. They said subsidies to cover assessments wouldn't be considered, News Service of Florida reported.
“The Legislature is not in the business of bailing condo owners out, especially when they haven’t done what they should have done over the years,” Lopez said. “If you live in a single-family [home] and you have to replace your roof or your exterior doors and windows, I’m sure you’d be asking, ‘Well, where’s my bailout?’”
It seems there is no clear plan for what the anticipated legislation will include, but ideas are circulating, Senate President Ben Albritton said at the event Tuesday.
In 2022, Senate Bill 4-D was enacted to mandate condo owners in buildings three stories or higher and 30 years or older contribute to reserve funds and undergo structural evaluations every 10 years. Lawmakers said they wouldn't hold a special session because they were concerned about loosening safety precautions intended to prevent future tragedies and wanted more information.
While there is no clear solution for condo owners struggling to grapple with these economic forces, they are forced to confront the harsh reality that the situation may worsen as reserve fund requirements start settling in.
Older condo values are expected to drop by about 38% this year, Florida Daily reported. Condo association costs more than doubled since June 2022, South Florida Sun Sentinel reported in September.
Real estate agents have said that the increasing financial burden for condo owners has kicked off a “doom loop” for those trying to sell their units, driving prices down and competition up, Bisnow reported last week.
