Condo Market Overhaul
The Impact of Champlain Towers South Legislation on South Florida Condos
Credits: Miami-Dade County Fire Rescue
In the early hours of June 24, 2021, the Champlain Towers South, a 12-story condominium building in Surfside, Miami, partially collapsed, resulting in loss of lives and rendering the remaining wing uninhabitable. This tragedy prompted urgent legislative action to address safety concerns in Florida’s aging condos. In response, Governor Ron DeSantis signed Senate Bill 154 into law on June 9, 2023. This legislation introduced a number of measures aimed at enhancing condo safety and compliance, reflecting the unanimous agreement within the Florida legislature to prevent similar disasters. However, the impact on condo owners, particularly in South Florida, has been significant.
Senate Bill 154 mandates regular milestone inspections for condo buildings, requiring architects or engineers to assess structural integrity and submit progress reports to local enforcement agencies. The bill also revises requirements related to budget meetings, emphasizing transparency and financial planning within associations. Furthermore, it changes the dispute resolution process, mandating presuit mediation for certain conflicts that were previously subject to nonbinding arbitration.
Despite its good intentions, SB 154 has inadvertently created challenges for condo owners, particularly those in South Florida. The bill’s focus on structural safety has led to higher reserve requirements, with associations needing to set aside more funds for maintenance and repairs. While essential for long-term stability, this has placed a financial burden on owners who struggle to meet these increased obligations. Additionally, insurance costs have surged across Florida, impacting condo associations and contributing to overall expenses. Many condo owners, especially those on fixed incomes, find it difficult to absorb these additional costs.
SB 154’s emphasis on safety has also prompted associations to address deferred maintenance promptly, leading to more frequent and substantial special assessments. Some owners face assessments reaching six figures, an overwhelming burden for those living paycheck to paycheck. Retirees and individuals on fixed incomes are particularly vulnerable, as they lack the disposable income to cover sudden assessments. The financial strain can result in associations placing liens on properties, and if the situation persists, foreclosure becomes a real possibility. Losing one’s home due to financial strain is a heartbreaking outcome, especially for seniors who have invested years in their condos.
The South Florida condo market has seen dramatic changes due to SB 154. Before the bill, the market was healthy, with approximately 8,300 condo listings in Miami-Dade, Broward, and Palm Beach County as of Q2 of 2023 - just before SB 154 was signed into law by Governor Ron DeSantis. In the wake of this, the number of condos on the market has soared, with Q2 2024 figures seeing more than 20,000 condos on the market. Notably, nearly 90% of these listings are in buildings 30 years or older - with sellers either anticipating mountainous assessments, or reacting to fees already imposed. These aging structures now bear the weight of SB 154’s requirements, affecting both owners and potential buyers.
