Florida’s New Condo Safety Law Causing Financial Hardships for Owners

Florida’s new condo safety inspection law, passed in the wake of the devastating Surfside condo collapse, is creating significant financial strain for many condo owners. The law, officially known as SB 4-D, mandates stringent safety inspections for buildings three stories or taller, requiring initial “milestone inspections” for any building that reaches 30 years of age. As a result, condo associations are required to set up financial reserves for long-term repairs, and many property owners are now facing steep assessments they cannot afford.

One such case occurred at the Villa Del Sol condominium complex in St. Lucie County. On August 8, 2024, structural engineer Gustavo Alvarez conducted an inspection at the complex and made an urgent call for the evacuation of several buildings due to severe structural damage. The findings included exposed rebar, deteriorating concrete, and large cracks, making the buildings unsafe. If not for the new state law, the inspection may never have happened, and the dangers could have gone unnoticed.

Thomas Murphy, the president of the Villa Del Sol Homeowners Association (HOA), stated that he was informed by the engineer of the imminent danger after reviewing conditions under the foundation. Following the evacuation, residents were forced to find alternative housing, and many were left scrambling for rental units. For Eric Johnson, one of the affected residents, the financial burden is overwhelming. He purchased his unit in 2017 for $209,000 and is now facing an estimated $9.2 million in repairs, which would be divided among the 72 homeowners. This translates to nearly $173,000 per resident, a cost Johnson and most of the other homeowners cannot afford. Additionally, Johnson is already dealing with a $43,000 special assessment for unrelated repairs.

While Johnson and other residents are coping with the aftermath of the evacuation order, the situation is even more complicated by the law’s requirement for Structural Integrity Reserve Studies (SIRS). These studies assess the immediate and long-term repairs needed to bring buildings into compliance. Unfortunately, for many owners, this new legislation means they could face significant repair bills they were unaware of when purchasing their homes.

Similar challenges are unfolding elsewhere in Florida. In Pembroke Pines, Broward County, a court-appointed receiver is looking to sell off the Heron Pond condominium complex after engineers found extensive water damage, termite activity, and further deterioration at the 36-year-old property. The residents of Heron Pond, like those at Villa Del Sol, were forced to evacuate. The HOA, which had collected funds for maintenance, had not addressed critical issues. Some residents have been given the option to pay a $40,000 special assessment for repairs or sell to developers. Many have voted to sell, and the receiver is preparing to do so.

In Fort Lauderdale, residents at the Springbrook Gardens condo were evacuated after a safety inspection deemed the building uninhabitable. Similar to the situation at Heron Pond, Springbrook Gardens residents were given short notice and had to find temporary housing. State Rep. Vicki Lopez, R-Miami, who helped write the law, expressed concern that such buildings could be sold off to developers, further reducing the availability of affordable housing in the state. The new law also creates a risk of increasing housing costs, particularly in areas like South Florida where affordable housing is already scarce.

As Florida faces a growing condo crisis, lawmakers are discussing potential solutions, such as low-interest loan programs to assist homeowners with the costs of repairs. Until then, condo owners like Johnson and many others across the state will continue to struggle with the financial burdens created by this new law. As Rep. Lopez recommends, potential condo buyers may want to wait until at least 2026 to fully understand the scope of repairs that may be needed and the associated costs.

In Southwest Florida, similar issues are arising, with several buildings in unincorporated Collier County requiring Phase Two reports. Owners of two buildings in East Naples have already received violation notices for missing the Phase Two report deadlines.

While the new law aims to prevent another tragedy like the Surfside collapse, it has put a spotlight on the financial challenges facing condo owners. The long-term effects of SB 4-D remain uncertain, and many residents are calling for more support to help them navigate the complex and costly process of complying with the new regulations.

Original Article by Mike Diamond /// Palm Beach Post