Introduction
In Orlando, condo owners are facing significant financial challenges due to steep assessment fees imposed to comply with new state regulations. These fees have become a burden, potentially pricing many out of their homes.
Background of the Issue
The issue stems from new condo regulations put into place after the tragic Surfside condo collapse in 2021, which resulted in the deaths of nearly 200 people. The new regulations require condos that are three stories or higher to undergo a milestone inspection at their 30-year mark, or at 25 years if near the coast, and then every 10 years thereafter. Additionally, condos must conduct a structural integrity reserve study to identify necessary funds for future repairs and maintenance.
Financial Impact on Condo Owners
At Regency Gardens Condominiums in Orlando, the association recently announced a shortfall of more than $17 million in its reserves. As a result, condo owners were blindsided by notices stating the need for significant financial contributions to cover the gap. Florida law now mandates that condo boards show fully funded financial reserves for maintenance inspections and potential future repairs by December 31st.
Assessment Fees and Their Consequences
Residents are facing special assessments, with smaller condo owners potentially seeing their monthly dues increase by about $900 and flat assessments as high as $11,000. Larger condo units might face assessments exceeding $22,000. Half of these amounts are due by June 30th, with full payment required by July 31st.
Concerns and Legal Implications
Residents, including long-time resident Greg Craig, express concerns about affording these assessments. John Epstein, another resident, questions the alternatives if owners cannot pay. Legal counsel for the condo association, Attorney Keith Scolaro, mentions that Florida law provides a process for notice and payment opportunities. However, the ultimate consequence for non-payment could be foreclosure, potentially displacing many families.
Conclusion
The steep assessment fees resulting from new regulations have placed a heavy burden on Orlando condo owners, raising concerns about affordability and the risk of foreclosure. As the deadline approaches, many are unsure how they will meet the financial demands, highlighting the broader impact of these regulatory changes on communities.
