Sarasota Real Estate News

Before the June 2021 collapse of the Champlain Towers condominiums in the Miami suburb of Surfside, Florida, where 98 people tragically lost their lives, owners had the voting power to defer maintenance on the major systems and infrastructure. The Champlain Towers tragedy was the beginning of Florida Statute 553.899 designed to protect the property and lives of current and future owners. 

These new laws are intended to require Boards of Directors to adequately fund operating and reserve budgets to cover future replacement costs of association property. The old days of Florida condo owners hoping to get to heaven before their condominium community goes to hell are over. 

I'm personally pretty sore about this issue because four years ago, I purchased a condominium that is now 50 years old. The owners voted not to increase the fees for 12 years--not even for inflation. According to my family history, I'll be around until I'm 81, which means my government retirement pension "ain't gonna cut" getting this community brought up to standards. 

These are important things for buyers to understand if they are on a fixed income and think they want to buy an older Florida condominium. They may face higher monthly fees and special assessments to pay for deferred maintenance. If they purchase a condo today with fees $300-$400 per month, those fees could easily double a few years down the road.

Here are some things for buyers and their Realtors to carefully consider: 

1. Cast iron pipes were the industry standard until preempted by PVC in 1975.  The cast iron pipes were designed to last approximately 50 years, but harsh climate and high humidity can shorten the life to 20 years. Replacing the pipes is an added financial burden to condominium associations that may not have replaced or lined these pipes.

2. Reserve studies should be done every three years in condominiums. Conducted by engineers or licensed appraisers, the reserve study determines life expectancy of major systems in the common areas and projects replacement costs. Sometimes the price tag is staggering. 

3. Florida statute requires condominiums three stories or higher that are 30 years old to have a milestone inspection by the end of 2024 and every ten years thereafter. Condominiums within 3 miles of the coastline must have their milestone inspections at 25 years. 

4. The reserve studies and milestone inspections are often resulting in increased monthly fees and special assessments. 

5. Ask, ask, and ask if the operating budget and reserve budgets are fully funded. If not, what percentage are they funded? If the budget is less than 30 percent funded, I'd say run away like your hair's on fire. Try to get a copy of the milestone or reserve study and spend the time looking this information over before deciding if that condo community is headed for demolition in the next few years because owners can't afford to pay for deferred maintenance. 

I realize this is going to sound very jaded, but here's the situation as I see it in Florida condominiums. We have many "snowbirds" who are here during the season to enjoy the Florida lifestyle, golf, and party with their neighbors. They don't want to take the position of making other owners angry if they were to complain about maintenance and repair issues because they will likely be making their golf buddies mad. For those of us who live here year-round, it's different. We want to see our community maintained. 

Thank you for reading my blog. I'm happy to help you with your Florida homebuying and selling. You can call me at 941-914-4914.

Most sincerely yours,

Linda Holley, Realtor, GRI, SRES, CIPS, Fine Properties, Sarasota, Florida