Special Assessments: The Looming Crisis and Ripple Effect from Florida to Toronto Threatening the Condo Market

?? Deferred Maintenance and Special Assessments: Lessons for Toronto from Florida’s Condo Crisis

The Florida condo crisis is a stark reminder of the economic risks older condominiums face, and the story unfolding in Toronto isn’t much different. A recent article in U.S. News highlighted how Florida’s aging condos are increasingly facing special assessments for significant repairs—often due to deferred maintenance. This has led to financial instability for condo owners, with some facing assessments so large that they’re forced to sell or even risk insolvency. These challenges stem from a mix of infrastructure age, rising insurance premium costs, and stricter building safety requirements in the wake of the tragic Florida Surfside condo collapse in 2021 causing the death of 98 people.

In Toronto, we are witnessing similar patterns emerge. A recent example involves a 7 year condo in North York where owners have been handed a $70,000 special assessment each to cover parking garage upgrades. This news underscores a major vulnerability in our city’s condo market—many of our high-rise buildings are aging beyond 20+ years old or not well maintained or engineered, and therefore significant investments are now needed to keep up with necessary maintenance and modernization.

Ontario's condo market has experienced rapid growth over the last few decades, with many buildings now approaching the age where significant retrofits and repairs are required. Mechanical systems such as HVAC, elevators, and plumbing are aging, and the need for major upgrades is inevitable. As an HVAC services provider in Toronto, we have seen firsthand the increasing need for building-wide retrofits, which often require collaboration with engineers and property managers, board and even homeowners to achieve today’s industry level standards of efficiency and safety.

?? The Economic and Social Impact on Condo Owners

Special assessments can place an immense financial burden on owners, many of whom did not anticipate these costs. In Florida, such fees have led to a sharp decline in condo sales along with higher HOAs, as prospective buyers are wary of potential liabilities. In Toronto, the situation may soon mirror this trend. When owners are presented with higher increased fees and unexpected bills of tens of thousands of dollars, some may be forced to move or sell their units, leading to potential instability in the market. Moreover, the social fabric of these communities is at risk as owners, faced with financial strain, become more disconnected from the very homes they once saw as their long-term investment or primary residence.

?? A Call for Proactive Planning

In an ideal world, Toronto’s condo boards, property management companies, and building engineers should continuously support and collaborate with another to adopt a more proactive stance against unexpected costs. A strategic reserve fund study, completed with real foresight, can make all the difference. Instead of delaying urgent repairs, residents should be educated for upcoming upgrades to avoid disputes during emergency assessments.

??? Building-Wide Retrofitting and Modernization

The Florida condo crisis serves as a warning to our community here in Toronto. It is crucial that condo boards and management corporations understand that the time to act is now.

Investing in proactive maintenance and building modernization—especially in mechanical energy efficient systems like HVAC—can reduce financial burden for the corporation and save thousands down the line and safeguard both property values and resident wellbeing. For example, replacing HVAC units like boilers, chiller, pumps, fan coils and heat pumps before they fail will help mitigate the risk of downtime, water damage and ultimately reduce the likelihood of triggering expensive special assessments due to imminent hazard.

One major overlooked aspect is the condition of in-suite HVAC systems, such as fan coils and heat pumps. These systems, often original to the building, can suffer from wear and tear over time. Failing to maintain or replace them can result in costly water damage due to fatigue or leaks, triggering significant expenses for condo corporation and ultimately individual condo owners. Not addressing these issues promptly can lead to special assessments, increased insurance premiums, and even lawsuits—compounding the financial burden on condo owners.

At Home Trade Standards, we are committed to assisting condo owners and property managers with these urgent upgrades. We work closely with engineers to plan and execute building-wide retrofits, helping older condos meet modern standards of comfort, efficiency, and safety. Let’s work together to protect the future of Toronto’s condo market—before we find ourselves facing the same challenges our southern neighbors are experiencing.

#CondoManagement #HVACRetrofit #SpecialAssessments #TorontoRealEstate #BuildingModernization #HomeTradeStandards

Need Help With For Your Building?

Contact Information:

Kevin Moeini – Business Development Manager

Home Trade Standards – Condo HVAC Specialists – Serving Toronto & GTA

Email: [email protected] | Tel: 416-736-7001

???Reference:

For more information on the Florida condo crisis and its impact, you can refer to the U.S. News article “Florida’s Condo Crisis: Why Condo Sales Are Plummeting”. Additionally, the story about the recent special assessment imposed on Toronto condo owners can be found in the CTV News article “‘No One Has $70,000 Lying Around’: Toronto Condo Owners Facing Massive Special Assessment”.