Florida condo owners face unretiring or selling homes after being hit with $100,000 in special assessment fees
“We don’t have hundreds of thousands of dollars set aside,” says retired teacher.
Florida condo owners face unretiring or selling homes after being hit with $100,000 in special assessment fees
Bethan Moorcraft
Updated Wed, Jul 24, 2024, 4:26 AM EDT3 min read
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Florida condo owners face unretiring or selling homes after being hit with $100,000 in special assessment fees
Yet another torrid tale has emerged of Florida homeowners being hit with eye-watering special assessment fees as building managers race to be in compliance with a new state law.
This time, it’s the residents of SurfSide Club South in Ormond Beach crying foul after they were billed over $100,000 per condo owner.
Per the new Florida law, all three-story-plus condo buildings and at least 30 years old must undergo a mandatory engineering assessment before Dec. 31, 2024. Condo associations must also shore up repair funding reserves. This law was introduced after the Surfside tragedy in 2021, in which 98 lives were lost when a 12-story condo collapsed.
While few condo owners would argue against the need to make their buildings structurally sound, many at Surfside Club South are at a loss as to where they’ll find the money to fulfill these new obligations.
“I’m a retired teacher, so we don’t have hundreds of thousands set aside somewhere that we can contribute,” resident Janet Stone told WKMG News 6 on June 26. “It put me in a position where I needed to return to work.”
Many other condo owners are suffering a similar fate and feeling blindsided by the mega bills landing on their doorsteps. Here’s what’s going on.
Addressing critical building issues
After the Surfside incident, Senate Bill 4-D was rushed into law to require older condo buildings to perform inspections, address critical issues and build up their reserve funds for future repairs.
The law, which applies to about two-thirds of condos in the Sunshine State, caught some condo associations off-guard. Many did not have adequate funds in their reserves to pay for the required engineering assessments and potential repairs — and as a result, that cost was passed on to the individual unit owners.
But it doesn’t stop there. The condo associations are also required to beef up their reserves to meet their future maintenance needs, which is adding to condo owners’ fees — money they must pay on top of their mortgages, property taxes and home insurance — three other living costs that have climbed in recent years.
Parks Huffstetler, a snowbird who bought a condo unit at SurfSide Club South in late 2021, told News 6 he had no idea about the upcoming assessment fees — and he certainly hadn’t budgeted for a six-figure bill.
“It’s over $100,000 per owner,” Huffstetler said. “The hope is, once we get the restoration part done, then the units will be worth more and I can sell.”
No option but to sell
Some condo owners facing whopping special assessment fees may have no option but to sell their unit — especially retirees on fixed incomes, or younger Americans who used all their savings to buy their first home.
If you can’t pay a special assessment fee, there may be consequences, depending on your contract with the condo association. This may include a fine or late fee — only adding to your financial burden. And in the most severe cases, they may elect to place a lien on your home or even foreclose on your property.
Before letting things spiral out of control, you may want to negotiate with your association or set up a regular payment plan to reduce the immediate burden.
It’s also worth speaking out if you have questions about your responsibility to pay or how the community is managing its funds because, as the situation in Florida has revealed, there are many struggling condo owners in the same boat. You may want to seek out legal advice or approach advocacy groups if you need help resolving issues with a condo association.
This article provides information only and should not be construed as advice. It is provided without warranty of any kind.
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