Tough New FL Condo Laws Getting Pushback
Category: Active adult communities
March 10, 2025 — The 2021 Surfside Towers collapse near Miami killed 98 people and injured many more. The Florida legislature’s response was swift and strict. Now, as those laws go into effect, backlash from the hardships they created is leading to efforts to soften the regs.
Already burdened by exploding insurance premiums, condo owners now also face huge assessments to catch up on their new reserve requirements. Added to those woes, newly required building inspections have discovered costly building repairs that need to be made. All of these combined factors have led to special assessments and/or significant dues increases. The result is a spate of homeowners who are unable to pay. Many have no choice but sell and and then find a new, more affordable place to spend the remainder of their retirement years.
“They can’t sell their multimillion-dollar condos because of these assessments. Buyers don’t want to take on units with assessments and sellers can’t meet their bottom line if they pay the assessments.”
Dawn Munera, a real estate broker for Pembroke Pines-based Essential Realty Solutions, as quoted in the Sun Sentinel
How 2 Associations have been affected
Your editor knows of at least two Florida condo associations that have been severely impacted by the new laws. In both cases the required inspections unearthed severe spalling issues like the ones that caused the Surfside building collapse. Those repairs easily cost a million dollars to repair. One of the HOAs had been diligent about keeping up with reserves for future replacement items like elevators and roofs. Unfortunately, the new requirements were far higher than what the actual reserves the community had built up. In both cases the new reserve requirements forced significant dues increases. One of these communities implemented large (more than $10,000 assessments), another borrowed money to pay for the repairs and increased dues to pay those loans back. In that community quarterly condo fees have doubled in the past 5 years (insurance is another factor in those increases).
Remedies
The Florida legislature is considering several possible remedies to the situation. One idea being floated is a special grant of $2500 to eligible low income residents to help with those special assessments. While a nice gesture, in many condos or HOAs special assessments can sometimes go over $50,000. To many people it seems like the idea of a $2500 grant is like putting on a bandaid when a tourniquet is required.
Other changes to SB 154 include loosening of some of its requirements. One of those is changing the number of stories for buildings affected by the law. Currently, those that are 3 stories or more are subject to the new reserve and building inspection requirements. A proposed change would loosen those requirements so it would only apply to buildings of 6 stories or more. Another, more controversial change would allow HOAs to borrow without owner approval to make repairs or even fulfill their new reserve requirements. While that might allow communities to get into compliance, critics counter that it would merely postpone the problem. Some legislators also say that they did not want the State to bail out communities that kicked the can down the road for years, keeping fees low but ignoring their future requirements.
Meanwhile in other states
It is generally accepted that Florida, with its thousands of HOAs and community associations, has the most robust laws governing them. But other states are watching closely to see how these issues get resolved.
Future of this legislation is uncertain
Who knows how, or if, changes to SB 154 will be made. Certainly the stories of elderly Floridians being forced into bankruptcy or losing their homes is having an effect on legislators. We will try to keep you posted on progress.
Comments? If you live in an HOA or condo association, especially in Florida, what is your experience on costs, dues, and assessments? Please share in the Comments section below.
For further reading
See — South Florida Sun Sentinel – Desantis Requested Help for Seniors
Comments on "Tough New FL Condo Laws Getting Pushback"
Clyde says:
Glad you mentioned that condos under three stories are exempt from the new inspection, repair and reserve funding requirements. That’s because the likelihood of collapse of such a building is virtually nil. Those 2 story or less condos are the ones to look for these days in Florida. They are the best value currently and going forward. We bought our condo (under three stories) in south Palm Beach County 12 years ago after reviewing the finances of the HOA. It was fully funding all reserves and still does. The monthly HOA fee when we bought was $400. It’s now $700. That’s a compounded average annual increase of 4.7%, which seems pretty reasonable for Florida. We have had no additional assessments, mostly due to adherence to fully funding of reserves. But that’s a result of good board management, even in the face of significant insurance increases. There are still many good condo values in Florida because prices are down during the past two years. It just takes diligence in looking for the right one that has had good HOA board management on a continuing basis.
Editor's note: Thanks Clyde for the update. Just a note that the move to exempt buildings under 6 stories is only a proposal. Who knows what will actually get passed, although I think it has a good chance. We will keep you posted. Certainly it will make other states wary of getting too strict in their laws.
Darren E Rivchin says:
I have been in property management for 45 years. Many HOA's are the good ole boys who take bids for golf carts or club memberships. When a community has an HOA and they pay say 600.00 a quarter, they should no where every goes and how it was decided. Example. A recent concrete project forced a special assessment to the community. I had asked to review the bid. I never was sent the docs. After reviewing the work we could have had the work done no assessment and would have put 118k into reserves, this happens every day around the world ! Can you imagine ? Take your HOA sometimes there is 1 2 or 3 , add them up and then multiply say all 3 are 1000.00 dollars and you have 20k homes in your community . That is 20 million a year. Obviously the community does not benefit 20 million a year or 10 million or even 5 million. The money dicipates or vanishes. Here is a great example.go to the website openthebooks.com it shows where the money really goes in illinois. Imagine the billions all you folks give away in FLA. If you pay 1000 in HOA it should be 225.00 if priced fairly. Check that website out. I believe there are attorneys getting ready to gear up on the HOA saga. Here we go!!
Yolande says:
Mmph, mmph, mmph...my Mom told us whatever you do in the dark will come to the light eventually. It's true! I hate HOAs and don't want to live in an HOA run community. I might be forced to if I want to buy. I get what they're for but still don't like them.
edinanmn says:
We have friends who own a condo a 6 story beachfront building. So, I was interested in your comment on exemption from new inspection rules. See below article referencing the proposed bill. It would apply to 5 story buildings, not 6 story.
https://www.tallahassee.com/story/news/politics/2025/03/03/florida-condo-crisis-legislature-bills-lower-fees-ease-requirements/80516308007/
HB 1415/SB 690: Condominium Structural Integrity Reserve Studies
This bill from Sen. Rosalind Osgood, D-Tamarac, takes direct action against the current safety requirements by changing the requirement for the mandatory structural integrity reserve study to only condos that are six stories or higher, rather than the current requirement for condos three stories or higher. Rep. Bruce Antone, D-Orlando, filed a matching bill. Condo associations for condominiums five stories or less may opt out of the inspection and may vote to waive or reduce contributions to the mandated reserve, the major reason behind the surging fees.