Florida condominium owners are increasingly worried about being forced out of their properties by rising fees stemming from a new building safety regulation introduced in the aftermath of the Surfside collapse.

"I'm scared," Georgie Pratt, the owner of a one-bedroom condo at Winter Park Woods in northern Orange County, told WESH 2 reporter Justin Schecker.

"My mortgage is a percentage of what these fees are," said Pratt, who has owned the unit since 2006. "My mortgage is about $300 a month, and my fees are now $2,100."

Why It Matters

After the collapse of the Champlain Towers South condo in Surfside in June 2021, which killed 98 people, Florida lawmakers passed legislation requiring aging condos three stories high or taller to conduct regular inspections and maintain sufficient reserves to fund the necessary maintenance and repair works.

As a result of the new rules, homeowner association fees are rising significantly, and the timing couldn't be worse. Homeowners in Florida are already struggling with rising property insurance premiums and other growing housing costs, and many—especially retirees—are increasingly finding themselves unable to keep up with these additional expenses.

What To Know

In the lead-up to the new building safety legislation coming into effect, the Florida condo market has seen an explosion in inventory, as many owners are trying to get rid of their properties before facing fees they cannot afford.

However, the units are not finding many interested buyers. One reason is that inventory in Florida has grown considerably in recent years as a result of a boom in construction, and demand remains bogged down by high mortgage rates and historically elevated home prices. Another reason is that buyers know the trouble they may get into with the new requirements, and they are not willing to purchase even when sellers are slashing prices considerably.

According to a recent Redfin report, in February, eight of the 10 U.S. metropolitan areas with the highest share of condos selling for less than their original price were in Florida, with Miami reporting 92.5 percent of condos going under contract at a reduced price.

State officials have taken stock of the dramatic effects the new legislation is having on many Florida condo owners and are trying to correct the course taken by the market—though the state's House and Senate have come up with dueling solutions.

Governor Ron DeSantis, who has repeatedly asked lawmakers in Tallahassee to fix the legislation so as to help struggling condo owners, has recently criticized the proposal made by House Republicans, saying it favors developers above residents.

DeSantis has instead praised the solution proposed by Florida Senate Republicans, which he said would increase accountability for condo association managers and add transparency around the milestone inspection reports required by the new legislation.

What Solutions Are Being Considered?

The Florida House is supporting HB 913, a bill introduced by Miami Republican Vicki Lopez. The legislation is designed to tighten regulations on condo inspections and would ban the state's insurer of last resort, Citizens, from covering condos that have not complied with the inspection and reserve study requirements necessary under the new bill.

The legislation would also allow condo associations to take out loans to cover necessary repairs without requiring approval from association members.

The state Senate, on the other hand, has passed SB 1742, a bill sponsored by Fleming Island Republican Jennifer Bradley. That bill would allow condo associations to invest money in reserve funds meant for repairs.

DeSantis has praised Bradley's bill and criticized the House's solution. Newsweek contacted Lopez's and Bradley's offices for comment by email on Friday.

What People Are Saying

Florida Governor Ron DeSantis said during a news conference in Miami on Thursday: "There has not been meaningful action in the Florida House of Representatives to give Floridians relief from the condo crisis that the legislation itself has caused, and we've got to be willing to step up and do the right thing. … I want to thank the folks in the Florida Senate who have moved credible legislation forward. I don't know what has gotten into the Florida House of Representatives."

DeSantis wrote on X on the same day: "Florida has a condo crisis that is impacting many of our residents, especially seniors living on a fixed income. While recent legislation was well-intended, it has resulted in unaffordable fee assessments pushing many from their homes.

"Senator Bradley's bill includes many of the ideas I have prompted on this issue, including increased accountability, stronger association voting integrity, and flexible funding options for repairs. However, the House's proposal prioritizes special interests and developers and exacerbates the problem. We must act now to protect Floridians and ensure they aren't priced out of their homes."

State Representative Vicki Lopez told the Florida Phoenix news site on Thursday: "He should probably wait to see which condo bill actually passes from the House before he opines on it."

What Happens Next

The time is ticking for Florida lawmakers to offer relief to struggling condo owners. Whatever solution the GOP-led legislature decides to back, it has to do so by the close of the regular legislative session, which ends on May 2.