South Florida condo owners face rising association fees, higher insurance costs
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High rises in Miami Beach. Photo: Jeffrey Greenberg/Universal Images Group via Getty Images
Condo owners are facing rising association fees, higher insurance costs and a looming state deadline to fund reserves for big repairs.
Why it matters: Those who can't afford the upcharge are struggling to sell their units, especially those in older buildings. And those who do sell still have to deal with South Florida's affordability crisis.
The big picture: Condo life, once a dream for homeowners priced out of the single-home market, has turned into a nightmare after the 2021 Surfside condo collapse.
Catch up quick: The collapse of Champlain Towers South, which killed 98 people, shocked residents and lawmakers, who quickly imposed new safety regulations requiring fully funded reserves to pay for structural repairs at older buildings.
- As a result, condo associations — many already undergoing costly repairs — now face a December deadline to complete reserve studies and set aside money for maintenance projects.
The latest: The Miami Herald reports that condo association fees in Miami-Dade and Broward counties skyrocketed nearly 60% over the past five years.
- The increase is being driven by higher insurance costs and new special assessments to comply with new condo safety laws, per the report.
The bleak condo landscape has led to a surge of new listings, with most units in buildings over 30 years old, NBC 6 reported.
- Active listings in the tri-county area reached 20,293 in the second quarter of 2024 compared to 8,353 during the same period last year.
What they're saying: Former Florida Rep. Jeff Brandes, now president of the Florida Policy Project, urged lawmakers in a post on X to hold a special legislative session and fix the "catastrophic situation."
- "Lawmakers need to take immediate action to alleviate this crushing financial burden that will bankrupt Floridians, especially our seniors, to protect condo owners from this state sanctioned/caused disaster. This is not a drill!"
What's next: Gov. Ron DeSantis has said he would be open to a special session to address the condo crisis.
- Hialeah Rep. Alex Rizo told NBC 6 that he's aware condo owners are "hurting" and there has been discussion among lawmakers about figuring out a path forward.
- He told the outlet possibilities include extending the deadline to fully fund reserves and using a sliding scale "to have that fund filled by the age of the property owner."