Surfside collapse law means Fla. condo owners face high costs
By Xavier Walton,
2024-08-12
( NewsNation ) — Florida condominium owners are having to foot hefty bills for structural repairs because of laws connected to the 2021 Champlain Towers South collapse in Surfside that killed 98 people.
While residents support changes being made to prevent similar tragedies, some of those living in the more than 900,000 condominium units in Florida say rising costs have made it hard for them to stay in the area.
Under SB 4-D, which was signed into law in May 2022 , condo buildings over 30 years old must pass a structural integrity inspection by the end of this year. Units near bodies of saltwater, like Champlain Towers, will have to do so if they’re more than 25 years old.
Condominium associations are required to keep funds in their reserves for maintenance and repairs needed to bring them up to code, meaning many are upping monthly association dues, according to NBC News .
Condominium owners have been charged “special assessment fees” for a wide range of building improvements.
NBC News reported two-bedroom units at Miami’s Palm Bay Yacht Club sold this year for between $400,000 and $500,000, with $140,000 each toward a special assessment for a range of building improvements. One retiree who spoke to NBC had to return to work teaching preschoolers with disabilities and moved in with her son in Las Vegas, Nevada, to pay off a $100,000 bill from her condo association.
The outlet notes this is happening at a time when housing costs have spiked in Florida by more than 67% since 2020. The NBC News’ Homebuyers Index shows that most median-income households in Florida counties can’t afford the median-priced homes. Homeowners insurance increased by 42% last year as well, NBC wrote.
It’s not just the new state laws that contribute to these high association fees. The Miami Herald wrote that spiraling insurance also plays a part. Hurricanes in the state and lawsuits drove up insurance costs, which companies passed along to customers, Bill Hughes, an expert at the University of Florida, told the newspaper.
Some condominium owners are asking for more time to comply with state lawmakers’ regulations. NBC writes that this way, they would be able to spread out the costs.
Champlain Towers South collapse fallout
Federal officials said last year an investigation into one of the deadliest building failures in United States history is expected to be finished by 2025.
The probe led by the National Institute of Standards & Technology is looking into two dozen scenarios that might explain how the 12-story building collapsed.
In June 2022, a judge approved an over $1 billion settlement for victims of the collapse. Much of that money went to those who lost family members. There was $96 million set aside for owners who lost one of the 136 units in the building, and $100 million earmarked for legal fees.
Settlement money came from 37 sources who did not admit to any wrongdoing. These include insurance companies, engineering firms and a luxury condominium next door.
That’s why it is important for unit owners to attend the meetings and question the board & or property manager. You have every right to know what’s going on and where the money is going. Your board or property manager has not addressed your questions then you need to report it.
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