Yet another torrid tale has emerged of Florida homeowners being hit with eye-watering special assessment fees as building managers race to comply with a new state law. This time, it’s the residents of Surfside Club South in Ormond Beach crying foul after being billed over $100,000 per condo owner.
Under the new Florida law, all three-story-plus condo buildings that are at least 30 years old must undergo a mandatory engineering assessment before December 31, 2024. Condo associations are also required to shore up repair funding reserves. This legislation was introduced following the Surfside tragedy in 2021, where 98 lives were lost in a 12-story condo collapse.
While few condo owners dispute the necessity of ensuring their buildings are structurally sound, many at SurfSide Club South are struggling to find the funds to meet these new requirements. “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 experiencing a similar plight, feeling blindsided by the enormous bills landing on their doorsteps. After the Surfside incident, Senate Bill 4-D was quickly enacted to mandate inspections for older condo buildings, address critical issues, and build up reserve funds for future repairs.
The law applies to about two-thirds of condos in Florida and caught many condo associations off-guard. Lacking sufficient funds in their reserves to cover the required engineering assessments and potential repairs, the cost has been passed on to individual unit owners.
But the financial burden doesn’t stop there. Condo associations must also bolster their reserves to meet future maintenance needs, further increasing fees for condo owners. These additional costs come on top of mortgages, property taxes, and home insurance — all of which have also risen 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 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.”
The rush to comply with the new law has left many condo owners in a precarious financial situation, with some considering drastic measures such as returning to work or selling their units once repairs are completed. The intent of Senate Bill 4-D is to prevent another tragedy like the Surfside collapse, but its implementation has brought significant financial strain to many Florida condo owners.
As the deadline approaches, condo owners across the state are grappling with the reality of these steep assessment fees and the challenge of securing the necessary funds. The situation at SurfSide Club South serves as a stark reminder of the financial impacts of ensuring structural safety and compliance with new regulations.