Condo reform laws affecting monthly assessments
DANIA BEACH, Fla. — Oct. 18, 2024
"I have beautiful sunsets, and I have a view of the Miami skyline," he said.
The building, built in 1968, has 225 units. Johnson owns his unit outright; he does not have a mortgage.
But he spends $1,200 a month on assessments, and that's before his own insurance and property taxes.
Johnson's monthly fees are relatively low in South Florida. Condominium associations are facing a reckoning of sorts. Their members are having to cough up money to make emergency fixes and begin socking away cash for regular maintenance. Both of these bitter financial pills come as a result of reforms passed and signed into law after the Champlain Towers South building in Surfside collapsed three years ago, killing 98 people.
Condo building associations in Florida have historically set aside little money for regular maintenance projects.
The new regulations are forcing associations to "catch up to other places that historically have put more money aside for reserves," said David Diestel, CEO of FirstService Residential, a prominent property management company based in South Florida.
"Everybody in the conversation would agree it is the right thing to do. It's just difficult to change immediately — saving, investing in the deferred maintenance — for the long-term health," Diestel said.
Condo buildings throughout the state that are at least three stories tall and 30 years old must conduct a milestone inspection by Dec. 31. This requires an engineer to inspect the structure of the building.
Condos in Miami-Dade and Broward older than 40 years have been subject to a recertification inspection for many years. The results of a milestone inspection may require a building to take fast action without having the financial reserves.
Miami-Dade condo buildings put aside significantly less money than those in cities such as Boston, Washington, D.C., and Los Angeles. Just nine cents of every dollar of a high-rise condo association’s budget in Miami-Dade goes toward reserves, according to the "BENCHMARK: High-rise" report by FirstService Residential of the buildings it manages. The average in the U.S. and Canada is 15 cents of every dollar.
The reform law also requires associations to begin building savings accounts for regular maintenance, such as plumbing and electrical systems, roofs, and fire safety. Associations need to start budgeting for those items and putting aside money beginning next year.
To read the full article, click here.
CEO David Diestel discusses condo reform laws and their effect on residents' monthly assessments with WLRN
Tim Johnson has owned his condo in Miami Beach for nine years. It’s about 900 square feet and has a balcony facing west."I have beautiful sunsets, and I have a view of the Miami skyline," he said.
The building, built in 1968, has 225 units. Johnson owns his unit outright; he does not have a mortgage.
But he spends $1,200 a month on assessments, and that's before his own insurance and property taxes.
Johnson's monthly fees are relatively low in South Florida. Condominium associations are facing a reckoning of sorts. Their members are having to cough up money to make emergency fixes and begin socking away cash for regular maintenance. Both of these bitter financial pills come as a result of reforms passed and signed into law after the Champlain Towers South building in Surfside collapsed three years ago, killing 98 people.
Condo building associations in Florida have historically set aside little money for regular maintenance projects.
The new regulations are forcing associations to "catch up to other places that historically have put more money aside for reserves," said David Diestel, CEO of FirstService Residential, a prominent property management company based in South Florida.
"Everybody in the conversation would agree it is the right thing to do. It's just difficult to change immediately — saving, investing in the deferred maintenance — for the long-term health," Diestel said.
Condo buildings throughout the state that are at least three stories tall and 30 years old must conduct a milestone inspection by Dec. 31. This requires an engineer to inspect the structure of the building.
Condos in Miami-Dade and Broward older than 40 years have been subject to a recertification inspection for many years. The results of a milestone inspection may require a building to take fast action without having the financial reserves.
Miami-Dade condo buildings put aside significantly less money than those in cities such as Boston, Washington, D.C., and Los Angeles. Just nine cents of every dollar of a high-rise condo association’s budget in Miami-Dade goes toward reserves, according to the "BENCHMARK: High-rise" report by FirstService Residential of the buildings it manages. The average in the U.S. and Canada is 15 cents of every dollar.
The reform law also requires associations to begin building savings accounts for regular maintenance, such as plumbing and electrical systems, roofs, and fire safety. Associations need to start budgeting for those items and putting aside money beginning next year.
To read the full article, click here.