Florida’s condominium sector is facing unprecedented challenges, putting pressure on both owners and communities. On January 27th, Governor Ron DeSantis will convene a Special Legislative Session to address key issues stemming from post-Surfside condo safety regulations, deferred maintenance, and skyrocketing repair costs. These discussions are not only critical for the future of condo ownership but also intersect with the state’s broader affordable housing crisis.
The Impact of Post-Surfside Legislation
In the wake of the tragic Surfside condo collapse, the Florida Legislature passed new laws to ensure safety. Among these were heightened reserve funding requirements and stricter assessments for maintenance and repairs. While these measures aim to prevent future tragedies, they have also created financial challenges for condo owners.
For example, a 79-year-old owner faced a staggering $224,000 special assessment, alongside monthly fees that doubled from $1,500 to $3,000. These hefty costs are becoming unsustainable for many Floridians, particularly retirees and fixed-income households. According to a Redfin analysis, homeowners association fees in Tampa and Fort Lauderdale rose by 15% from 2023 to 2024, illustrating the broader financial strain.
The Affordable Housing Angle
Historically, older condominiums provided a critical affordable housing option. In Miami-Dade County, nearly half of all condo sales in 2024 were priced below $300,000, filling an essential niche for buyers in the lower price segment. However, increased financial burdens tied to compliance and repairs have eroded this affordability.
The Florida Policy Project’s recent report highlights that the percentage of listings for condos over 30 years old has surged by 56% year-over-year. This flood of properties reflects the growing inability of owners to meet rising costs, pushing many to sell and destabilizing communities.
Market and Legal Challenges
Efforts to redevelop aging buildings face significant roadblocks. Developers, who could otherwise step in to modernize properties, are hesitant due to legal uncertainties. A notable example is Biscayne 21 in Miami, where developers acquired nearly all units for redevelopment but were sued by holdout owners. Legal battles like these discourage further investment and delay potential solutions.
Special Session Goals and Potential Solutions
Governor Ron DeSantis has acknowledged the unintended consequences of the 2022 legislation, emphasizing the need for balance. “The Legislature should not be doing anything that’s going to cause someone to have to flee because of an artificial mandate,” DeSantis stated.
The Special Legislative Session aims to address these challenges by exploring actionable solutions, including:
Expanding the pool of qualified inspectors.
Reevaluating funding mechanisms for repairs and reserve contributions.
Addressing insurance challenges that compound financial pressures.
Former Senator Jeff Brandes, whose Florida Policy Project conducted the report, stressed the urgency of these measures. “We must prioritize solutions that will ensure safety without sacrificing the ability of residents to remain in their homes,” he said.
A Path Forward
As Florida grapples with these complex issues, it’s clear that a balanced approach is needed to ensure safety while protecting affordability. Stakeholders, including condo board members and property managers, must remain proactive. Tools like My Condo Compliance by Skybridge can help associations navigate regulatory demands, providing transparency, centralized management, and compliance tracking.
The Special Legislative Session marks an opportunity to stabilize Florida’s condo market and address its affordable housing crisis. State leaders must act with urgency and collaboration to safeguard communities and ensure a sustainable path forward.