Mar 24, 2025
A new building safety law that was passed in the wake of the Surfside tragedy in Florida has resulted in a tremendous amount of financial pressure on condo owners. Now, one state lawmaker warns it could prompt the "next wave of homeless people," with elderly residents living on fixed incomes at the forefront.
The law requires associations for condos three stories or higher to fully fund their maintenance reserves. Previously, they could waive filling these reserves, which potentially allowed damage to build up over decades. It's also mandatory for buildings at least 30 years old to undergo structural assessments and address any critical issues. Many owners have blamed these rules for adding upwards of tens of thousands of dollars in new fees.
Advertisement
Rep. Mike Caruso rang the alarm after the issue was dropped from a special session in January.
"It's sad, and we're not going to address it here in the Florida House," Caruso told the Miami Herald. "I'm shocked by it."
Here's what has Caruso concerned about elderly condo owners.
New building safety law
Following the 2021 collapse of the Champlain Towers South, a 12-story condominium in the Miami suburb of Surfside, in which 98 people died, legislators rushed to pass safety reforms. A new bill was signed into law that includes the above requirements.
But there was a problem. Many condo associations were short on reserves. So, the costs to fill them, pay for required inspections and fund any potential repairs, in a number of cases, was passed on to unit owners.
Caruso said that many condo owners, especially those who are elderly and on a fixed income, are at risk of losing their homes due to the legislation because they can "no longer afford the tripled reserves or the quadrupled dues."
Many residents of these condos have lived there for a long time, he says, and they need help now.
Advertisement
Some lawmakers argue, however, the situation is too complicated to be effectively solved over the course of a brief special session and more time is needed. Florida legislative sessions resumed in March.
Must Read
- Dave Ramsey warns nearly 50% of Americans are making 1 big Social Security mistake — are you doing the same?
- Thanks to Jeff Bezos, you can now become a landlord for as little as $100 — and no, you don't have to deal with tenants or fix freezers. Here's how
- Robert Kiyosaki says this 1 asset will surge 400% in a year and begs investors not to miss this ‘explosion’
Join 250,000+ readers and get Moneywise’s best stories and exclusive interviews first — clear insights curated and delivered weekly. Subscribe now.
Another source of financial stress
New condo fees can be a big problem by themselves, but the situation is made worse by other high living costs.
Home insurance prices in Florida, for example, are among the highest in the nation. The average annual premium for a $300,000 dwelling in the state was $5,340 as of March 21, nearly two-and-a-half times the national average of $2,242, according to Bankrate.
Those entering the market or want to make a move may also struggle. Mortgage rates nationwide are floating near the 7% mark, while the median sales price of a house in the U.S. remained elevated at $419,200 as of the fourth quarter of 2024.
Some Florida retirees have also reported going back to work because they can no longer pay the bills.
It's uncertain how soon condo owners in the state might get any relief, however, it isn't an issue that's going away. Florida Gov. Ron DeSantis himself has called on the legislature to amend the law.
"We’re now seeing some problems that I think were unintended that have popped up, and we have a responsibility to act to make sure that people can stay in their condo units," DeSantis said, according to Florida Politics.
You May Also Like
- Turning 50 with $0 saved for retirement? Most people don’t realize they’re actually just entering their prime earning decade. Here are 6 ways to catch up fast
- Inside a $1B real estate fund offering access to thousands of income-producing rental properties — with flexible minimums starting at $10
- Vanguard’s outlook on U.S. stocks is raising alarm bells for retirees. Here’s why and how to protect yourself
- Here are 5 easy ways to own multiple properties like Bezos and Beyoncé. You can start with $10 (and no, you don’t have to manage a single thing)
Christy Bieber has 15 years of experience as a personal finance and legal writer. She has written for many publications including Forbes, Kilplinger, CNN, WSJ, Credit Karma, Insurify and more.
