Seniors in Florida who own condo units are now struggling with a financial nightmare due to the state's condominium assessment program.
Florida passed the Condo Safety Act, also known as HB 1021, on June 14, 2024. Under that bill, all condo buildings built 30 years ago or older must undergo milestone inspections by a qualified engineer or architect.
If the inspections find minor or substantial structural decay, the issues should be addressed within a year, per the bill.
Roughly a million condominium units in Florida meet the age requirement, as noted by the New York Times (NYT).
How This Affects Senior Condo Owners?
Condo owners associations are requiring their residents to cover the cost of any repairs necessary for older buildings. This is largely due to the associations not having enough money to cover the cost of repairs themselves, according to Moneywise.
The cost of the repair varies. Surfside Club South in Ormond Beach is billing its condo owners $100,000 each for the repairs. In the Cricket Club condominium tower, residents are charged at least $134,000 for repairs.
READ ALSO: More Than 170,000 Americans Have Already Lost Their Homes to Foreclosure in 2024: Report
Retirees and senior condo owners living on pensions or fixed incomes often cannot afford to cover the cost of the renovations. The special assessment is now putting some at risk of becoming homeless.
"I can't pay that, I have to leave, [live on] the streets, sleep in the car," Arturo Duharte, a resident of Lake Clarke Gardens condominium, told WPTV. "What worries me is if fees keep going up, I won't be able to hang on. I barely make it by with retirement."
Some retirees also said they may consider moving in with their family due to the high cost of required renovations.
In conjunction with Florida's high insurance premiums for condominiums, the special assessment fees are creating a financial "crisis," NYT reported, quoting State Representative Vicki Lopez.
Are There Any Solutions?
Gov. Ron DeSantis, R-FL, is expected to convene a special session of the Florida Legislature in the next three months to address the expensive repair fees condo owners are facing, as reported by NBC Miami.
DeSantis said they could offer no-interest loans to condo associations or condo owners to pay for the required repairs.
RELATED ARTICLE: JD Vance Blamed Immigrants for Soaring Home Prices