(The Center Square)— A new Florida condominium law is affecting the Sunshine State’s real estate market. The new measure requires costly inspections, significantly increasing homeowners’ costs.
The law — Senate Bill 4D — was passed during a special session in 2022 and requires condominium associations to retain adequate funds for building repairs. Buildings three stories or higher are subject to inspection requirements.
Florida Senate President Kathleen Passidomo, R-Naples, is currently working to address complaints about the new regulations, but said in a memorandum to state senators in mid-August that the Legislature would not be having a special session to address concerns.
“I am increasingly concerned by what I see as a growing narrative, ripe with misconceptions and inaccuracies, regarding the condo safety legislation passed in the years following the devastating collapse of the Champlain Towers in Surfside. Some have suggested a special session be called to address or alter existing safety and reserve funding requirements and other related issues. I do not agree, and for the reasons outlined in detail below, I have no intention at the present time of utilizing my authority as Senate President to convene a special session,” Passidomo said.
Jennifer Levin, a realtor with Compass in Fort Lauderdale, said in mid-August that the collapse of Miami’s Surfside condominium building is still producing fallout through rising insurance costs and significant increases to homeowners association fees to cover inspections and repairs.
“The big pullback in the condo market is the rising insurance costs and new laws that require buildings to have full reserves by next year. Prices are pulling back, because nobody can afford the association fees anymore,” Levin told Realtor.com.
According to the ISG World second quarter Miami report, a condo crisis is coming to Florida. Data shows that total active condo listings in Miami-Dade, Broward, and Palm Beach counties increased from 8,497 listings in the first quarter of 2023 to 20,293 listings by the second quarter of 2024.
The report notes that in the second quarter of 2024, 7,961 condos listed for sale in Miami-Dade were over 30 years old. Broward has approximately 5,166 condo listings over 30 years old, while Palm Beach has 4,669. Less than 1,000 condos across all three counties were less than 10 years old.
