Yet another torrid story has emerged about Florida homeowners being hit by Eye-watering special assessment fees as building managers race to comply with a new state law.
This time it’s the residents of SurfSide Club South in Ormond Beach complaining after being charged more than $100,000 by condo owner.
Under Florida’s new law, all condominium buildings taller than three stories and at least 30 years old must undergo a mandatory engineering assessment before December 31, 2024. Condominium associations must also bolster security reserves. financing for repairs. This law was introduced following the 2021 Surfside tragedy, in which 98 lives were lost when a 12-story condominium collapsed.
While few condo owners would argue against the need to make their buildings structurally sound, many in Surfside Club South don’t know where they will find the money to meet these new obligations.
“I’m a retired teacher, so we don’t have hundreds of thousands set aside somewhere we can contribute,” said resident Janet Stone. WKMG 6 News on June 26th. “It put me in a position where I had to go back to work.”
Many other condominium owners are suffering a similar fate and feeling blindsided by the mega bills arriving at your door. Here’s what’s happening.
Solving critical construction problems
After the Surfside incident, Senate Bill 4-D was hastily enacted to require older condominium buildings to conduct inspections, address critical issues, and build their reserve funds for future repairs.
The law, which applies to about two-thirds of condominiums in the Sunshine State, caught some condominium associations off guard. Many did not have adequate funds in their reserves to pay for necessary engineering assessments and potential repairs – and as a result, that cost was passed on to individual unit owners.
But does not stop there. Condo associations are also required to bolster their reserves to meet their future maintenance needs, which increases condo owners’ fees — money they must pay in addition to their expenses. mortgagesproperty taxes and home insurance — three other costs of living that have increased in recent years.
Parks Huffstetler, a snowbird who purchased a condo unit at SurfSide Club South in late 2021, told News 6 she had no idea about upcoming assessment fees — and certainly hadn’t budgeted for a six-figure bill.
“It’s over $100,000 per owner,” Huffstetler said. “The hope is that once we finish the restoration part, the units will be worth more and I can sell them.”
There is no option but to sell
Some condominium owners facing exorbitant special assessment fees may have no option but to sell their units – especially retired on fixed incomes, or younger Americans who used all their savings to buy their first home.
If you are unable to pay a special assessment fee, there may be consequences depending on your contract with the condominium association. This could include a fine or late fee – only adding to your financial burden. And in the most serious cases, they may choose to place a lien on your home or even foreclose on your property.
Before you let things get out of hand, you can negotiate with your association or set up a regular payment plan to reduce the immediate burden.
It’s also worth speaking up if you have questions about your responsibility to pay or how the community is managing its funds because, as the situation in Florida has revealed, there are many struggling condo owners in the same boat. You can seek legal advice or approach advocacy groups if you need help resolving issues with a condominium association.
This article provides information only and should not be construed as advice. It is provided without warranty of any kind.
