Featured Insights: Florida Condominiums - The perfect storm
Condominium Advisory Group
Florida Condominium Association Advisory Services
Florida’s condominium communities are grappling with rising insurance premiums and new state-mandated reserve funding requirements. These financial pressures are making it increasingly difficult for many associations to maintain stability, resulting in higher assessments for homeowners.
In response, some associations are considering the controversial option of condominium termination. This process allows homeowners to sell their properties, potentially at above-market values, to avoid costly repairs and escalating insurance costs.
While termination may seem drastic, it offers a path to financial security and the opportunity for communities to rebuild with more sustainable, long-term solutions.
In the News!
WESH 2 News interviews John Cadden on fees driving out Daytona Beach condo owners
WESH 2 News interviewed John Cadden on the financial challenges facing condo owners in Daytona Beach Shores, many of whom are still recovering from hurricane damage. Some have been hit with $20,000 special assessments, leading to a rise in unit sales.
Cadden highlighted the impact of new state laws requiring a structural integrity reserve study for condos over 30 years old, which has led to rising association dues. “Communities with no reserve money and deferred repairs are now facing huge cost increases,” he explained. “In the past, many voted to waive reserves to save money, but those decisions are catching up.”
As costs rise, more units are hitting the market. “There’s almost twice as many units for sale year over year,” Cadden added.
St. Pete Catalyst interviews John Cadden on the impending deadline affecting stagnant condo owners
A recent interview with John Cadden , featured in St. Pete Catalyst, highlights the serious financial implications of Florida’s new building safety regulations. These laws mandate stringent inspections and increased reserve funds, leading to steep special assessments for many condominium residents.
“Some communities I’m working with are really on top of it,” Cadden notes. “And I’ve got others in the ambulance, already heading to the emergency room, but they don’t believe it.”
Years of deferred maintenance and lax oversight have pushed many associations to the brink, with some condo boards still in denial about the changes. Cadden advises residents to stay informed and engaged, as these necessary steps will ultimately improve the safety and condition of their properties.
Insights!
Miami condo market in crisis as owners rush to sell before new regulations
A recent Newsweek article by Giulia Carbonaro reveals a dramatic shift in Miami’s real estate market. Nearly 90 percent of active condo listings are for buildings over 30 years old, as owners, particularly retirees, race to sell before new safety regulations take effect in 2025. These regulations, introduced after the tragic Surfside condo collapse, mandate stringent inspections and costly repairs for aging properties.?
This panic-selling has flooded the market with older condos, causing their values to plummet by up to 19 percent since 2023. In contrast, newer condos have surged in value as buyers seek safer investments. The new regulations are creating widespread uncertainty, and Miami's situation could set a precedent for coastal markets across the country.
We'll continue to share in-depth information on the Florida Building Safety Act and offer resources and success stories from our satisfied clients. We believe in knowledge-sharing and are excited to contribute to your understanding of the changes in the real estate landscape in Florida.
Please let us know if you have any questions or want us to cover a specific topic in our following newsletter. Your feedback is essential to us.
Enlist the support for your COA
Regards,
Condominium Advisory Group Team
Elder Law Attorney
2 个月Very informative…does this new law apply to all residential properties or only condos? Wondering what impact on, for example, a 5 story apartment building.
Ferrarri International Realty Real Estate
2 个月Insightful
Partner at Mommers & Colombo, Attorneys at Law
2 个月I am starting to defend the first, of what I fully expect to be many, condo special assessment lien foreclosure cases. The law is always evolving, I look forward to asserting some novel equitable affirmative defenses to these foreclosures based on past Board Of Directors inaction as to building maintenance and repairs. The Florida condo market is in for some rough sledding!