Real estate experts warn about surge of South Florida condo listings

Summary

Following the Surfside tragedy, Florida has seen a significant increase in condos for sale, driven by new safety reforms requiring condo associations to have substantial reserves. These reforms have led to special assessments soaring up to $350,000 per unit to fix structural issues in older buildings, making some properties unsellable. With nearly 90% of the listings in buildings over 30 years old, many retirees on fixed incomes are struggling to meet these financial demands. State Representative Alex Rizzo discusses potential relief measures, but no concrete plans have been developed yet.

Takeaways

• 📈 The number of condo units up for sale in South Florida has soared since last year.
• 🏢 Real estate experts are worried about the reasons behind this surge in listings.
• 🏠 Kristi Rojas has lived in her southwest Miami-Dade condo for about 20 years and pays over $600 a month in HOA dues and special assessments.
• 💸 Special assessments often double what some residents pay for their mortgages, making it hard for them to keep up.
• 🛠️ Since the Surfside tragedy, new laws in Tallahassee require condo associations to have enough reserves by the end of the year.
• 📊 This requirement may lead to significant special assessments, making some condos unsellable.
• 📉 The number of condos for sale in Palm Beach, Broward, and Miami-Dade counties has risen from 8,300 to over 20,000 in a year.
• 👴 Many of these condos are in buildings over 30 years old, and residents are often retired and on fixed incomes.
• ⚠️ State Representative Alex Rizzo mentions possible measures to alleviate the financial burden on condo owners.
• 🔄 Potential solutions include extending the deadline for reserves and a sliding scale based on property owner age.
• 📢 The governor is open to discussing these issues, but no specific plan has been developed yet.
• 📞 Residents struggling with special assessments can submit complaints through NBC6's website.

Q & A

Who is the consumer investigator mentioned in the transcript?

Alina Machado is the consumer investigator mentioned in the transcript.

What significant change has occurred in the number of condo units for sale in South Florida?

The number of condo units for sale in South Florida has soared from about 8,300 in the second quarter of last year to over 20,000 a year later.

What might be driving the surge in condo listings in South Florida?

The surge in condo listings may be driven by new reforms requiring condo associations to have enough reserves on hand, leading to significant special assessments that many owners cannot afford.

Who is Kristi Rojas and what is her situation regarding her condo?

Kristi Rojas has lived in the same condo unit in southwest Miami-Dade for about 20 years, pays over $600 a month in HOA dues and a special assessment, which is double what she pays for her mortgage.

What is a special assessment in the context of this transcript?

A special assessment is an additional fee imposed by condo associations on unit owners to cover unexpected expenses, often related to repairs or safety improvements.

What impact have the Surfside tragedy and subsequent reforms had on condo owners?

The Surfside tragedy and subsequent reforms have led to requirements for condo associations to have sufficient reserves, resulting in significant special assessments that many owners, particularly those in older buildings, cannot afford.

How much can the special assessments amount to per unit, according to the transcript?

Special assessments can amount to $100,000, $200,000, or even as high as $350,000 per unit to fix structural imperfections in older buildings.

What demographic is particularly affected by these special assessments?

Older, retired individuals living on fixed incomes are particularly affected by these special assessments.

What are some potential solutions being discussed to alleviate the financial burden on condo owners?

Potential solutions include extending the time to have the reserve fund filled or using a sliding scale based on the age of the property owner.

What has the governor expressed regarding the issue of financial burden due to special assessments?

The governor has expressed openness to discussing the issue, but no specific plan has been developed so far.

What should individuals do if they are struggling with special assessments or worried about future ones?

Individuals struggling with special assessments or worried about future ones are encouraged to reach out to the NBC6 team by submitting a complaint through the response page of their website, NBC6.com.