‘It’s excessive’: Miami condo owners slapped with shocking $21 million special assessment fee for repairs to their 16-year-old buildings — some owners ‘being milked’ for over $40,000

A special assessment fee is paid by condo owners on top of their usual monthly maintenance fees. According to the report, the condo board approved the special assessment fee based on findings from a structural integrity reserve study, which noted most systems were "generally serviceable" but some require immediate repairs, maintenance and replacements.

However, building residents claim the process was rushed, needed more transparency, and bypassed the formal unit-owner vote. They're questioning both the necessity and speed of the decision.

When asked about this, the Association's General Counsel, Marc Halpern, cited Florida laws put in place after the Surfside Champlain Towers collapse in 2021, which claimed the lives of 98 people.

What is the special assessment fee for?

The $21 million special assessment fee for the Brickell buildings stems from the findings of a structural integrity reserve study (SIRS). The law defines it as a study of the reserve funds required for future major repairs and replacement of the common elements based on a visual inspection of the common elements. According to a new state law passed in 2023, condominium associations have to complete such a study every 10 years for each building in an association that is three stories or higher in height.

The SIRS study identified several repair needs at 1060 Brickell, including the Tower 2 facade, roof replacement, and pool deck restoration.

"Florida law primarily is the justification," Halpern explained to CBS News when asked why residents didn't have a say in the matter. "The board is charged with the responsibility to adequately maintain and repair the common elements. If owners were to vote against that, you would be putting the building and the owners in danger."

At least one resident is now contemplating selling his unit due to the financial strain, reported CBS News.

What are the residents' options?

For now, the special assessment seems unavoidable for Brickell unit owners. The condo's board is preparing for an election, and some owners hope new leadership will review the timeline and cost of the repairs.

Homeowners do have some options to ease the financial strain of a special assessment. A condo board may allow it to be paid over several months in installments, giving residents time to gather the funds. Taking out personal loans or home equity loans may help them cover the costs. If residents believe the board violated the condo's bylaws, legal action might be appropriate.

Florida's stricter building laws in the wake of the Surfside condo collapse mean high fees could become commonplace. Residents should consider bolstering personal savings accounts to prepare for potential assessments. They can also explore insurance coverage for special assessments.

As for residents at 1060 Brickell, many residents are probably reconsidering their future in the buildings.