Florida’s New Condo Rules: What Buyers Need to Know Before Signing the Dotted Line

Condo Journey is committed to providing prospective or current condo owners in South Florida the latest in regulations that could impact their condo living decisions. Major legislation meant to improve the safety of condominiums was enacted in 2022 following the partial collapse of the Champlain Towers South in Surfside in June 2021.

With an aging population of condo buildings in Florida the legislation was necessary but several repercussions occurred that impacted the financial viability of many condo associations. The state realized that aspects of the new law were damaging to existing owners so modifications to the current law have been signed into law.

If you're considering purchasing a condominium in Florida, the passage of House Bill 913 and Senate Bill 1742 introduces several factors to keep in mind. These laws modify existing condominium safety regulations, particularly regarding inspections, reserve funding, and financial flexibility for associations. Here are key considerations prospective buyers should evaluate before making a decision:

1. Structural Integrity Reserve Requirements

• Condominium associations must conduct structural integrity reserve studies to ensure buildings maintain adequate funding for future repairs which will add significantly to the reserves that must be kept increasing HOA fees.
• Reserve funding requirements can now be met using lines of credit or loans if approved by a majority of unit owners so understand the funding mechanism before you purchase to fully understand your risk.
• Some associations may have paused reserve funding for up to two years, which could impact long-term maintenance planning and increase the risk for a special assessment to fix any emergency repairs.

2. Inspection and Safety Compliance

• Buildings three stories or higher must undergo milestone inspections to assess structural integrity.
• Buyers should verify whether the building has already completed its inspections or if upcoming inspections could lead to potential repair costs.
• Local governments must report unsafe or uninhabitable buildings to the Florida Department of Business and Professional Regulation, adding another layer of oversight.

3. Financial Implications for Unit Owners

• The revised law allows for additional financing options, but buyers should inquire about any pending assessments or loans the condominium association may take to cover reserve requirements.
• If reserve funding has been paused, future costs could increase once funding resumes.
• Online voting for associations may streamline decision-making, but buyers should be aware of potential policy changes impacting fees and assessments.

4. Location-Based Considerations

• Coastal and older buildings as seen extensively in South Florida may face higher compliance costs due to stricter safety regulations.
• Buildings with past structural concerns could have higher association fees as they adjust to meet updated requirements so research past building inspection reports.
• As a buyer, you may want to consider condominiums that have already undergone milestone inspections and structural integrity reserve studies to minimize future uncertainty.

5. Overall Impact on the Condominium Market

• These legislative changes are designed to improve safety, but they also introduce financial and regulatory complexities that could influence pricing and demand.
• Some condominiums may adjust monthly fees or special assessments to comply with these laws.
• Buyers should carefully review association documents for details on reserve funding status, pending inspections, and potential future costs.

Living in a condo in South Florida can be a wonderful lifestyle but the complexities of ownership and financial risks have increased significantly to improve safety. By thoroughly researching these aspects, prospective buyers can make informed decisions while ensuring the condominium they purchase aligns with their financial and long-term living expectations.

Condo Journey will continue to inform its users of future legislative changes and risks to assess as a condo owner so check back often for updates.