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Article
Courtesy of The Business Observer
By Louis Llovio
Published January 17, 2025
Gov. Ron DeSantis is calling the Legislature in for a
special session later in January to address, among other issues, condominium
reform.
In a proclamation issued Tuesday afternoon, the governor says that the
session is meant to address “challenges to ensure that Florida residents can
continue to afford to live in their homes.”
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Other topics that will
be covered: agriculture relief in response to recent
hurricanes, the My Safe Florida program, “citizens’
initiative petition process” and illegal immigration.
The session is scheduled for Jan. 27, just weeks ahead of
the start of the regular legislative session March 4.
The condominium reform piece of the special session is meant
to address issues that have popped up since condo safety
rules were passed in 2022 and 2023.
Because of these rules, DeSantis says in the proclamation,
condo owners continue “to face challenges including soaring
costs related to assessments, repairs, and inspections.”
The rules were originally passed in response to the collapse
of the 12-story Champlain Tower South in Surfside June 24,
2021 which killed 98 people.
They called for a building to be inspected once it reaches
its 30th birthday — based on when it received its
certificate of occupancy. For buildings within three miles
of the coast, the inspection needs to be done at the 25th
birthday.
The deadline for the inspections was Dec. 31, 2024. From
then on, inspections have to occur every 10 years. |
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The 12-story Champlain Tower South in Surfside
collapsed June 24, 2021, killing nearly 100. Legislation passed by
Florida lawmakers meant to protect against another tragedy.
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While safety was, and officials say remains, the goal by
making sure older building are shored up and to prevent condominium
associations from deferring repairs, there have been some unintended
consequences. Chief among these are harsh special assessments and rising
association fees needed to make sure building meet needed safety
requirements.
Particularly hard hit have been people living on fixed incomes who own
condos in older buildings. They are often left with fees and assessments
they are unable to pay.
While in times gone past selling may have been an option, in order to sell
now they often have to offer huge discounts to adjust for the assessments
and fees, eating in whatever equity there was.
This, in turn, has led to a significant downturn in the condominium resale
market.
While there are no immediate bills tied to the special session, industry
insiders say some corrections that may be considered during the 20-day
session include:
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Clarification of the language used in the law to
better explain the Structural Integrity Reserve Study requirements.
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Clearer definitions to better meet the Legislature’s
intent.
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Creating incentives for no interest or low-interest
private loans for unit owners and associations to meet repair needs.
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Streamlining process to allow associations to access
lines of credit.
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Cleaning up loopholes that currently seem to
insinuate developers of mixed-use buildings don’t have to comply.
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