Article Courtesy of Tampa Bay Times

EDITORIAL

Published  August 29, 2024

The tougher requirements for condominium safety that Florida lawmakers adopted after the Surfside tower collapse are essential for the welfare of millions of Floridians and the state’s residential housing market. But make no mistake: These rules also present a clear and immediate burden for countless thousands of condo owners who don’t have the means or even enough information to move forward in protecting their property. The Legislature needs to address these concerns with a more considered approach.

Condominium associations across Florida are facing a Jan. 1 deadline to have an engineer inspect their buildings for safety and determine how much they need to set aside for repairs. The change is one of several new safety measures Florida instituted after the 12-story Champlain Towers South suddenly collapsed on June 24, 2021, wiping out half the building and killing 98 people.

The repairs could cost the associations millions of dollars, in turn presenting condo owners with five-figure special assessments and higher monthly fees to keep reserve accounts stable. In response to being flooded with calls from constituents, some lawmakers are calling for the Legislature to convene in special session to modify the law before the regular session begins in March.

In a letter to state senators on Friday, Senate President Kathleen Passidomo, R-Naples, rejected the idea of a special session. “Let me assure you, I hear the anger and frustration of condo owners,” Passidomo wrote to her colleagues. But she insisted that “no law is perfect” and warned against rushing reforms, saying the upcoming committee meetings and the spring legislative session provided “the best opportunity” to deliberate and hear “from all stakeholders.”

Passidomo sent the right signal by using her letter as a robust defense of the 2022 changes, which came in response to maintenance needs that some condominium complexes had delayed for years if not decades, jeopardizing residents and the condo market alike. The new rules require condos three stories and higher to undergo a structural inspection after 30 years and every 10 years thereafter. Associations must regularly review their reserves to determine the funds needed to maintain their buildings. And condo boards are barred from waiving or underfunding reserves. The net effect is many owners are facing sticker shock for costly, critical repairs and future uncertainty over their monthly fees.

Florida has more than 1.5 million residential condos, and of those, nearly 600,000 are at least 40 years old. An estimated 2 million people live in condos 30 years or older. While it’s easy to think of condo living as luxurious, many of these units are aging, mid-market properties, bought decades ago by residents now on fixed incomes. Not everybody has $10,000 or $20,000 on hand to pay for immediate repairs. Coupled with rising insurance costs, many residents are afraid the higher assessments and fees could push them from their homes. And the condo market is already being impacted; across the state, the number of condos and townhomes on the market has shot up 92% since last year, according to the most recent data from Florida Realtors. Meanwhile, sales have fallen 20%.

Former state Sen. Jeff Brandes, R-St. Petersburg, has called for lawmakers to meet in special session, and for lawmakers to explore a longer timeline for bringing condos in compliance with the law. The House and Senate should consider appointing a special committee on the issue when lawmakers meet in organizational session in November. That would provide time for staff to solicit public input and expertise before the regular session in March. Another idea would be to expand a Miami-Dade program statewide. That local initiative, the only of its kind in Florida, offers lower-income residents access to zero-interest loans for major repairs, with any balances being due when the condominium is sold.

These new safety standards were long overdue, but Florida must also be careful not to push cash-strapped residents from their homes. Florida also has an economic interest in stabilizing the condominium market, and preserving housing choices for Floridians as their needs and lifestyles change. The sooner the Legislature gets started, the better.