Amid closer scrutiny, will condo owners foot the bill?
Three years ago, Florida lawyer Eric Glazer offered a dire warning: The state’s condo buildings faced an “absolutely avoidable” crisis stemming from years of willfully neglected maintenance combined with lax government oversight.
Writing on his blog “Condo Craze and HOAs,” Glazer warned that building after building lacked the savings to fund increasingly common repairs. He understood, he wrote, why it’s hard to get condo and homeowners associations to set aside money for maintenance, especially for retirees on limited incomes.
Still, he said, hoping that cracking concrete and leaky roofs would fix themselves was gambling with property and lives.
“So many people, especially seniors, are rolling the dice thinking that none of these repairs will be necessary while they own the property. That may be true for now, but eventually, everyone rolls a 7,” Glazer predicted. “I see buildings getting older and unavoidable repairs coming on strong. I also see hurricane seasons becoming active with the potential to cause catastrophic results to our communities.”
In the wake of the June 24 Surfside condo collapse that has caused 90 confirmed deaths through Sunday, Glazer takes no pleasure in his prediction being right. While investigators have not yet determined a cause, owners of Champlain Towers South had been told in 2018 of structural issues with cracking concrete – and then argued for years about paying for repairs.
That tragedy has jolted some local governments into deploying building inspectors and condo associations into hiring engineers to look for damage, a USA TODAY Network survey of communities along the Atlantic and Gulf coasts found. Others are discussing options while waiting for more information.
Yet even those that take action face a challenge in pushing condo associations to foot the bill for more inspections and the repairs they may uncover, experts caution.
Compounding risks ignored
A largely hands-off, low-tax approach helped Florida’s economy boom during the late 1970s and early 1980s as retirees flocked south from more expensive states. But that has led to what some experts describe as widespread complacency from both governments and the HOA and condo boards responsible for maintaining the buildings.
In Florida, government building inspectors typically set foot in a condo building only before it’s occupied. Condo associations routinely waive a state requirement requiring them to set aside money for repair costs. Only a few jurisdictions in Florida, including Miami-Dade County, require inspections of tall buildings, and the 12-story Champlain Towers South was in the midst of the county’s 40-year recertification process when it collapsed.
And money that might have gone toward educating HOA and condo associations about their legal responsibilities has routinely been diverted by the Florida Legislature, a USA TODAY Network investigation found. Lawmakers siphoned off $65 million funded through condo association fees since 2008, nearly 40% of the $167 million raised during that time.
Unlike single-family homes where the owner is solely responsible for a property, condo owners bear responsibility for the interior of their units and pay monthly maintenance fees to share the costs of upkeep for the building, its grounds and common areas. But that can mean elected boards must persuade their neighbors to pay more so that the association can build reserves sufficient to cover the costs of major repairs. Under Florida law, condo associations are supposed to set aside money each year so they can afford to replace, for instance, the roof at the end of a 20year lifespan. But the law also allows associations to skip that step if they wish.
The Surfside collapse demonstrated the potential consequences.