South Florida condo owners are struggling with hefty special assessments that are forcing many to sell their homes. Maria Tkachun and her husband invested nearly $600,000 in their condo at the Cricket Club, only to be hit with a six-figure special assessment two years later. This charge is meant to finance property renovations or replenish a reserve fund that may be underfunded. Following the Surfside condo collapse in 2021, Florida is enforcing stricter safety standards, leading many condo associations to raise fees in order to build larger reserves for repairs and maintenance.
The Cricket Club’s condo board proposed a nearly $30 million special assessment for repairs such as roof replacement and facade waterproofing, equating to over $134,000 per unit owner. Some owners, like Ivan Rodriguez, who paid $190,000 for a unit in 2019, are unable to afford these additional fees and are opting to sell their condos. The South Florida condo market has seen a significant increase in inventory for sale, mainly due to rising insurance costs and repair fees for older buildings that are not meeting inspection requirements. Sellers are struggling to find buyers, with many being forced to reduce prices significantly.
Real estate experts anticipate that the issues facing South Florida condo owners are just beginning, as the market continues to be impacted by rising fees and assessments. Condo fees in areas like Fort Myers have increased by up to 25% on average, leading to a spike in condo listings. Buyers are becoming more cautious, fearing the possibility of facing unexpected assessments and fees in the future. Older condo buildings that have neglected reserve funding are now being required to ramp up fees to cover maintenance and repairs, leaving many unit owners in a challenging financial situation.
To avoid getting hit with a significant special assessment, potential condo buyers should thoroughly review an HOA’s reserve fund to ensure it can cover maintenance, repairs, and unexpected expenses. Filing a complaint with the board when receiving a special assessment may be an option, particularly if it can be proven that the fees are excessive or unnecessary. At the Cricket Club, tensions have risen among unit owners who can afford the assessments and those who cannot, leading to resentment within the community. Some residents are gathering evidence to challenge the fees and seek a lower assessment amount.
Overall, the South Florida condo market is experiencing a wave of uncertainty and financial strain as owners grapple with mounting special assessments and rising fees. The aftermath of the Surfside condo collapse has prompted stricter safety standards and increased inspection requirements, impacting condo associations and individual owners alike. As sellers struggle to offload their properties at reduced prices, potential buyers are urged to exercise caution and conduct thorough due diligence before purchasing a condo in the current market conditions.
