Article on Florida condos- but everyone might want to read this

I'm sure Lori and other Florida posters know this all too well, but it appears changes in state law regarding reserves and structural studies will prompt some tough decisions by HOA boards and residents. Check out this article-

https://www.palmbeachpost.com/story/opinion/columns/2024/03/23/florida-condo-ownership-safety-surfside-real-estate/73055077007/

I think everyone should have a look at this. You might not live in a high rise condo in the sunshine state, but it may be there hasn't been enough thinking on making sure the association has the money to ensure common areas are being maintained, especially if that includes roofing, elevators, streets, etc.

To tie this to other discussions we've had, I fear that the ultimate solution for a number of these condominiums will be de-conversion. Investors like to snap up distressed properties, and owners who can no longer afford their homes can be targets for buyers who hand them cold hard cash.

I guess that's better than letting buildings fall apart and maybe kill more people. But it only worsens the problem of unaffordable housing. You know that the de-converted properties will end up as luxury rentals that are unaffordable by the people who used to live in them.

As is typical of Florida HOA and COA legislation, they put in place knee-jerk legislation without thinking about the consequences. I agree that a lot of these buildings are just going to be sold to developers because there's simply no way to fund the repairs that need to be done AND fund the reserves correctly. I understand the safety issue, but there had to be a better way to do this. And if you remember, at Surfside they KNEW they had issues but the owners would not approve the large special assessments needed to fund them.

The other side of this is the legislation exempted condos under 3 stories. So they may not have all the issues that the taller buildings do, but in my experience they still chronically underfund their reserves. It's a real problem.

We still have condos in our area that are uninhabitable from Hurricane Ian. The top floors are fine, but the lobby and first floors were destroyed. That means two seasons of rentals have gone by with no income for the owners. Most did not have enough in reserves to pay for the damage. Special assessments are huge. Insurance payouts are very low, if you can even get them without a long legal fight. I predict that many of those owners will simply walk away because they can't seel - since you can't get a mortgage for a condo where there is an ongoing insurance lawsuit or the building is uninhabitable. Plus the looming special assessments.

It's a mess.