Florida condo repair disaster

[VitaMan]

People can't afford the repairs. Many are being forced out of their condos.

The governor is to have a meeting Jan 27 to discuss if anything can be done.

They can't kick the repair can down the road. Grandpa can't afford the repair bill.

[Unique_Carpenter]

Btw, this is not just Florida, although the Florida laws from a few years ago are what bring this topic into the news.

For any condo assoc the "reserve" for repairs part of monthly dues is frequently intentionally ignored. I still have clients that ask me from time to time what I thought of them buying a condo, and numerous have walked away from a buy when condo assoc annual reports show no or inadequate reserves.

And this in Kansas, Missouri, Calif. New Jersey, New York, Texas, Illinois.

Frankly, any situation where there is not a decent reserve (like the Florida laws now call for) is simply a pyramid scheme where the early owners bail out. It's like selling a car with hidden known defects.

BTW, ALWAYS ASK for the Condo's Reserve study.
My old outfit is now seeing that Mortgage Lenders will not finance a buy unless the reserve study is also included in the mortgage application.

[VitaMan]

Condo owners don't want to pay in advance for something that may not be needed. Just like telemarketers wanting to sell you a vacation spot in the future. A very tough sell. Condo owners just want to pay for what they have to.

[VitaMan]

Regarding the governor meeting Jan 27, how can they change or backtrack now ? It would just be kicking the can down the road.....again.


Regarding condo reserve studies, there was one done on the condo I live in a few years ago. Recommended reserves for possible future repairs were something like 40% of the value of the building. Actual reserves were 2 %. A special assessment was floated, resulting in an uproar from condo owners. In the end nothing was done.

[Unique_Carpenter]

VM,

It's quite simple. All bldgs need a new roof every 20 +/- years.

The biggest issue is that condo boards skimp on normal maintenance and then that becomes deferred maint at a much higher expense.
Exterior painting/staining, window sealing, for example. 1/5th should be done every year out of normal maint budget, but no....
Parking lot sealing is a 5 year item also.

For your place, seriously keep an eye on the maintenance budget and consider selling before the next special assessment gets proposed. Sooner or later that assessment will have to be enacted so get out of the pyramid scheme there while you can.

[VitaMan]

It's not simple. You left out the money in your discussion.

Buildings need to be repaired. And condo owners don't want to pay for possible repairs in advance.
If you have not seen an uproar by condo owners when asked for extra money, you have not seen anything.
In many cases, the board gets voted out immediately.

Now Florida with their new laws, has demanded the condo owners pay. They can't.
Very similar to an unfunded government mandate. Good intentions that don't work.
The ones that work the best are to get out of town visitors pay for your sports stadium.s


Let's see what come out of the Jan 27 governor review. I am renting, not an owner.

[Salty Again]

... Not to be a wet blanket to yer good discussion, mates
- but WHAT in the blue-eyed world does THIS have to do with politics??

#### Salty

[VitaMan]

The governor of FL is holding a meeting Jan 27, to discuss this and existing FL laws.


That is state politics and policy. Does everything here have to be about Washington DC and federal politics ?

[Salty Again]

... Not as I understand things - prolly CAN discuss state issues.
Thanks for the explanation.

#### Salty

[VitaMan]

The Political Forum Discuss anything related to politics in this forum. World politics, US Politics, State and Local.


CA gets a lot of posts

[Unique_Carpenter]

Condo R&M is currently a very hot current Florida political item

VM, I have seen it.
My old outfit used to collect the repair bids and put together the "Reserve Studies". Yes owners get excited. Yes they frequently vote no. And then two years later they ask why the numbers changed. Yes board members get replaced. And then the new board members also get replaced at end of their terms cause they realize the issue is not going away and also propose an assessment. I have seen numerous ex-board members decide to sell due to this.

Btw, what Florida ha put into law is actually still a bit insufficient for funding. They should have also included requirements related to normal maint not being deferred.

[Precious_b]

Originally Posted by Unique_Carpenter

VM,

It's quite simple. All bldgs need a new roof every 20 +/- years.

The biggest issue is that condo boards skimp on normal maintenance and then that becomes deferred maint at a much higher expense.
Exterior painting/staining, window sealing, for example. 1/5th should be done every year out of normal maint budget, but no....
Parking lot sealing is a 5 year item also.

For your place, seriously keep an eye on the maintenance budget and consider selling before the next special assessment gets proposed. Sooner or later that assessment will have to be enacted so get out of the pyramid scheme there while you can.

Originally Posted by VitaMan

It's not simple. You left out the money in your discussion.

Buildings need to be repaired. And condo owners don't want to pay for possible repairs in advance.
If you have not seen an uproar by condo owners when asked for extra money, you have not seen anything.
In many cases, the board gets voted out immediately.

Now Florida with their new laws, has demanded the condo owners pay. They can't.
Very similar to an unfunded government mandate. Good intentions that don't work.
The ones that work the best are to get out of town visitors pay for your sports stadium.s


Let's see what come out of the Jan 27 governor review. I am renting, not an owner.

UC and VM, thanks for the enlightening info.

Originally Posted by Salty Again

... Not to be a wet blanket to yer good discussion, mates
- but WHAT in the blue-eyed world does THIS have to do with politics??

#### Salty

Originally Posted by VitaMan

The governor of FL is holding a meeting Jan 27, to discuss this and existing FL laws.


That is state politics and policy. Does everything here have to be about Washington DC and federal politics ?

VM, that was nice of you not to tell him to keep up.

[VitaMan]

Update from Jan 27 meetings........


The state Legislature continues to defy Ron DeSantis’ call to amend a new condominium-safety law that is putting financial pressure on condo owners and homeowners associations, prompting one Republican ally to the governor to predict elderly owners on fixed incomes will become the “next wave of homeless people” in Florida.


During an unprecedented speech Monday, House Speaker Daniel Perez, a Miami Republican, said legislation like the condominium law in question — passed in response to the deadly 2021 collapse of the Champlain Towers South in Surfside — was too complicated to take up during a special session, even though that is how the original law was passed in 2022.


The law, which took effect at the end of last year, requires condominium associations to fully fund their building maintenance reserves — a rule that some condo owners and associations have blamed for escalating maintenance fees and hefty special assessments. It is a departure from the previous law that allowed associations to vote to waive funding reserves, causing repairs in some older buildings to build up over decades, ballooning costs that may now be unaffordable. “The tragedy of the collapse in Surfside is a painful reminder of what happens when we don’t get the law right,” said Perez, who sponsored the post-Surfside condo legislation in the Florida House.


Rep. Mike Caruso, a Republican DeSantis ally from Delray Beach who filed 10 bills mostly centered on immigration for the governor’s special session, said elderly residents in condominiums will be soon foreclosed on because they “could no longer afford the triple reserves or the quadrupled dues” caused by legislation that went into effect at the end of last year requiring full funding of maintenance reserves for buildings.


“It’s sad, and we’re not going to address it here in the Florida House,” said Caruso, noting that his district includes tens of thousands of condominium units. “I’m shocked by it.”


“A special session that’s five days long, everything has to be pre-packaged so you can push it through,” said Fine, who has publicly feuded with DeSantis. “And so, to do a special session for five days on four topics with no bill, the whole thing was always a stunt.” Sen. Carlos Guillermo Smith, a Democrat from Orlando, agreed with Fine and Perez that special session wasn’t the right place to address the condominium crisis.


He said the current law, SB 4D, was jammed through during a special session nearly three years ago after the Legislature couldn’t find consensus during the regular one. “If you rush through half-baked policies in a special session, there’s going to be unintended consequences,” Guillermo Smith said.

[Unique_Carpenter]

Well a few Florida politicians are proposing to continue the Pyramid scheme (the special session proposal).
So a 70 year old condo owner gets a break now. Then later, can't sell, and the special assessments hit anyway. Or bldg get condemned or worse. My point is, if folks can't afford it now, there's no way they can afford it later.

My outfit has dropped condo association clients due to this issue.

Owners should request a printed copy of the reserve studies, not just listen to folks bitching at the condo meetings, and try to understand what is actually going to happen in the real world.

IMO, unless the reserve study is at least close to 90% (or more) funded, sell before the pyramid collapses.

Again, Lender's now realize this issue and it started showing up in condo unit mortgage financing about a year after the Surfside incident. Also being required for Condo Assoc loans, whether for cash flow or repairs financing.
And, btw, Condo Assoc insurance costs have gone through the roof (and Ins Cos are requiring the reserve study also) and all that has to be recovered in current dues, regardless of any objections. Also, Condo unit homeowners policies also heavily increasing.

[VitaMan]

From the January 27 meeting about this, they just kicked the can down the road.


No special session to discuss this. To be discussed in the regular session starting in March.