Addressing critical building issues
After the Surfside incident, Senate Bill 4-D was rushed into law to require older condo buildings to perform inspections, address critical issues and build up their reserve funds for future repairs.
The law caught some condo associations off-guard. Many did not have adequate funds in their reserves to pay for the required engineering assessments and potential repairs — and as a result, that cost was passed on to the individual unit owners.
But it doesn’t stop there. The condo associations are also required to beef up their reserves to meet their future maintenance needs, which is adding to condo owners’ fees — money they must pay on top of their mortgages, property taxes and home insurance.
Parks Huffstetler, a snowbird who bought a condo unit at SurfSide Club South in late 2021, told News 6 he had no idea about the upcoming assessment fees — and he certainly hadn’t budgeted for a six-figure bill.
“It’s over $100,000 per owner,” Huffstetler said. “The hope is, once we get the restoration part done, then the units will be worth more and I can sell.”
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Read MoreSelling option
Some condo owners facing whopping special assessment fees may have no option but to sell their unit — especially retirees on fixed incomes or younger Americans who used all their savings to buy their first home.
If you can’t pay a special assessment fee, there may be consequences depending on your contract with the condo association. This may include a fine or late fee — only adding to your financial burden. And in the most severe cases, they may elect to place a lien on your home or even foreclose on your property.
Before letting things spiral out of control, you may want to negotiate with your association or set up a regular payment plan to reduce the immediate burden.
It’s also worth speaking out if you have questions about your responsibility to pay or how the community is managing its funds because, as the situation in Florida has revealed, there are many struggling condo owners in the same boat. You may want to seek out legal advice or approach advocacy groups if you need help resolving issues with a condo association.
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