Article Courtesy of  The Miami Herald

By Rebecca San Juan

Published January 8, 2024

Demand remains strong for a county loan program dedicated to condo owners facing high special assessments. The only challenge? It’s so popular, the money is running out.

The Condominium Special Assessment Program launched in late 2022, a year after the collapse of Champlain Towers South in Surfside. County officials wanted to provide a financial solution to condo owners needing to address timely structural issues. The loan program is dedicated to those earning less than 140% of the area median income, and the cap ranges depending on the number of people in a household. For instance, a single person qualifies if they earn $111,160 or less. A household of two people can earn up to $127,120 a year, while a household of four can qualify if they earn less than $171,640. The U.S. Department of Housing and Urban Development determines the area median income and thresholds per household, which means these restrictions may change.

Those who are approved for the loan have 40 years to pay it back with a 0% interest rate.

So far, the county has approved 1,054 loans out of a total of 1,700 applicants. The total amount disbursed is up to $28 million. Now, the pot of money set aside for the program is running thin, with about $5 million remaining — enough money for about 400 applicants.

Champlain Towers South collapsed in the summer of 2021, killing 98 people. Before the catastrophe, owners there were in the middle of ironing out a financial plan to address dire structural concerns that had gone unaddressed for years. Soon after the collapse, county and state policies changed for condominiums three stories or higher. Associations must now enforce frequent checks on structural components of buildings, address structural issues, and save toward large-scale renovations or changes. Associations may start to save this January or in 2026, depending on whether the association decided to waive reserve contributions in 2025 for one last time.

The county’s loan program was meant to address condo owners who couldn’t afford to pay for a special assessment out of pocket.

“If we were not to provide this, we run the risk of a lot of our residents facing being unhoused,” said Alex Ballina, Miami-Dade’s housing and community development director. “We want everybody to live a quality of life in Miami-Dade County, and because of a situation that may most likely have been out of their control to a certain extent, we don’t want people to leave or having to search or giving up their condo or give up their roots or having to move because of a special assessment.”

Future of condo loan program

Funding for the loans comes from the county surtax. The county receives about 45 cents for every $100 of commercial transactions occurring in the state. Since 2022, the county has administered loans amounting to a total of $28 million, ranging from a low of $3,000 to the highest amount allowed of $50,000.

The county wants to expand funding for the program, Ballina said, but for now it’s working with a limited budget.

“Apply as soon as possible,” Ballina said. “We don’t have the money to fund everyone in Miami-Dade County. The sooner they can get their application in, the better for us so that way we can make decisions.”

How to apply

Step 1: Submit an application online
Condo owners should be prepared to share a variety of details and documents, including a copy of a driver’s license, pay stubs and utility bills. Only condo owners with homestead exemptions qualify. The heads of associations or board members cannot apply on behalf of residents. Applications can be found online in English, Spanish and Creole.

Step 2: Underwriting processing
A condo owner may hear back from a county representative within 30 to 60 days. At times, a county representative may have follow-up questions or require more documentation. Once an application receives approval, the head of an association or board members receive the payment on behalf of the owner. An owner will never receive any portion of the loan.

Step 3: Repayment

Repayment begins 30 days after all of the special assessment work has been completed. The county requires a certificate of completion before requesting any payments be made on the loan. Loans are provided at a 0% interest rate and with a 40-year repayment schedule. However, for those who miss payments, Ballina said the county would move forward to put a lien on the residence.