Florida is grappling with a condo safety crisis, and the state’s lawmakers are actively trying to tackle it head-on. Despite recent legislative action to improve building safety and avert potential disasters, many believe that more can be done to safeguard residents from not only physical danger but also financial peril. This crisis has seen condo owners face skyrocketing fees due to new safety requirements and, in some cases, leave Florida altogether due to the burden.
Recent Legislative Action
It’s been a hot-button issue for years. The condo crisis in Florida has been a festering problem, demanding immediate attention. Recent legislative action has indeed helped expose the underlying issues and set new safety guardrails. But according to condo industry experts, more action is needed.
- In the wake of the tragic building collapse in Surfside in 2021, which claimed 98 lives, the state’s lawmakers passed new requirements for condo associations. This includes mandatory “milestone inspections” for buildings three or more stories tall, once they reach 25 or 30 years of age, as well as structural integrity reserve studies (SIRS) to evaluate each condo’s condition and how much money associations need to set aside for future repairs.
- Consequences of these new requirements have been harsh for condo owners, with many seeing their fees skyrocket, in some cases by six figures. This has forced some owners to sell their units and leave Florida.
Insufficient Savings by Condo Associations
Fleming Island Sen. Jennifer Bradley pointed out that even in counties that had similar requirements before the Surfside-related legislation, condo associations have not been saving adequately. This financial strain is shifting the burden onto future owners, she explained.
Broward-based CPA Guy Strum, who has worked on SIRS policy for years, agreed. He highlighted that the most pressing issue in the condo crisis is how to pay for the necessary repairs, with the “overwhelming majority” of condos being “woefully underfunded”.
Proposed Solutions
Tara Stone, CEO of Stone Building Solutions, proposed swapping a requirement that condo associations be “fully funded” for repairs with one requiring them to be “adequately funded” for immediately needed ones. She also suggested expanding the legislation’s scope to include inspections of buildings as short as two stories and younger structures, which have also shown serious problems.
Engineer Matt Kuisle, Regional Executive Director for Milwaukee-headquartered Reserve Advisors, warned of the risk of condo owners being exploited by unscrupulous opportunists. He called for a stricter standard in Florida law regarding who can perform SIRS.
The condo safety crisis in Florida is complex and multi-faceted. With the physical safety of residents on the line, the financial burden of necessary repairs, and the threat of opportunistic predators, it’s clear that more needs to be done. The state’s lawmakers have taken steps to address the issue, but as the condo industry experts suggest, there are still many areas that require further action. With the right legislation and a focus on both immediate and long-term solutions, Florida can work towards resolving its condo crisis once and for all.
