Miami artist Tiffany Madera never expected to face a special assessment totaling tens of thousands of dollars. But like many Florida condominium owners, she found herself scrambling after her association levied fees to pay for building repairs and replenish reserve funds.
 

"To be hit with $10,000, $20,000 and a fast turnaround, that is gravely impactful," Madera said. The financial burden reflects a growing reality for condominium owners across Florida following the 2021 collapse of the Champlain Towers South condominium in Surfside. In response to the tragedy, state lawmakers strengthened condominium safety laws, requiring many associations to complete structural inspections and to set aside money for major future repairs. While the changes are intended to improve building safety, experts say many condominium associations remain financially unprepared. "We have so many people that have gotten comfortable with not paying the deterioration bill," said Robert Norlund, CEO of Association Reserves, a company that helps condominium associations evaluate their financial health and determine appropriate reserve funding. According to Association Reserves, Florida has a higher percentage of condominium associations with inadequate reserve funds than the national average. "Owning and maintaining real estate is fundamentally expensive," Norlund said. "Mother Nature and Father Time are unopposable forces. Boards are up against deterioration, plain and simple."

Florida’s stricter condo rules are designed to make buildings safer. But for many owners, they could also mean another costly special assessment. Consumer investigator Sasha Jones shows you how to find out if your condo association is putting away enough money for future repairs.

For condominium owners wondering whether their association is financially prepared, Norlund recommends reviewing several key documents.

First, examine the association's annual budget and determine how much is allocated to reserve funding. Ideally, he said, reserve contributions should account for 15% to 45% of the total budget, depending on the property's needs.

Next, review the association's most recent professional reserve study, which estimates the remaining life of major building components and outlines future repair and replacement costs.

Finally, read minutes from recent board meetings to identify planned repairs, maintenance concerns, and financial discussions that could affect future assessments.

"If you are deferring paying the cost of deterioration, it doesn't go away," Norlund said.

For Madera, the increased costs are outweighed by the importance of building safety.

"We want the ultimate safety for our building," she said.

To help pay for her assessment, Madera received approval through Miami-Dade County's Special Assessment Loan Program. The program provides eligible condominium owners with loans of up to $50,000 at 0% interest for as long as 40 years to help cover the cost of required building repairs.

"This program gave me an opportunity to feel safe in my home," Madera said.

Under Florida law, condominium buildings that are three stories or taller must undergo a Structural Integrity Reserve Study at least once every 10 years. However, Norlund said many associations should consider updating reserve studies more frequently, potentially every three years, depending on the condition of the property, maintenance needs and changes in construction costs or budgeting.