Many South Florida condo owners are facing financial difficulties as they are hit with six-figure special assessments after the 2021 Surfside condo collapse prompted stricter safety standards and more frequent inspections. The Cricket Club condominium tower, for example, recently proposed a nearly $30 million special assessment for repairs, causing financial strain on unit owners like Maria Tkachun and Ivan Rodriguez. Many owners are finding it difficult to afford these unexpected fees and are instead choosing to sell their condos, leading to a significant increase in condo inventory for sale in South Florida.
The increase in condo inventory for sale in South Florida has been attributed to rising insurance costs and repair fees for older buildings that aren’t passing inspections. Real estate agents in the area have noted a higher number of condos on the market and a rise in association fees, which are deterring potential buyers who fear being hit with additional assessments. As a result, sellers like Ivan Rodriguez are having to lower their asking prices significantly in order to offload their properties. The situation has created uncertainty and nervousness among potential buyers who are wary of the possibility of facing unexpected fees.
Many older condo buildings in Florida have historically waived reserve funding, but new laws are now requiring them to ramp up fees in order to adequately cover maintenance and repairs. It is important for potential buyers to carefully consider the financial stability of the HOA’s reserve fund before purchasing a property to avoid getting caught off guard with a large special assessment. In cases where owners are facing hefty fees, they may try to file a complaint with their board, although success in reducing the assessment amount is not guaranteed.
The special assessments at the Cricket Club have caused tension among residents, with some able to afford the fees and move on, while others are being forced to sell due to financial constraints. The situation has prompted some residents to gather documentation in an attempt to prove that the fees should be lower. The uncertainty and financial strain faced by condo owners in South Florida highlight the challenges of homeownership in a high-risk area prone to unforeseen expenses. The increase in condo inventory for sale, along with rising association fees and special assessments, is creating a challenging real estate market for both buyers and sellers in the region.
