RESIDENTS have expressed concerns over their HOA fears jumping from $500 to $3,000 a month thanks to a new law - they say they need protection but not this way.
|
Dan Severson, a condo association president in Tarpon
Springs, Florida says he's worried about the rising rates of
insurance and |
"The maintenance guy and I walk through
this building every week," Dan Severson, President of the
condo association told a local ABC affiliate.
Severson used to work as a health and safety officer at a
nuclear power plant but, in his retirement, says he's
looking out for the wellbeing of the 96 condo owners in the
association.
|
Severson said fees could go up as $3,000 a month, which could cause condo owners to leave |
State Senator Jason
Pizzo introduced a bill calling for statewide condo
inspections, which was passed in a special session last
year.
Condo buildings with three stories or more are required to
have structural inspections 30 years after being built and
once every 10 years thereafter.
If a building is located near a coastline, it must be
inspected within 25 years of construction.
However, Severson worries the law will force condo boards to
fork over millions of dollars in reserve.
Structural integrity studies need to be completed by the end
of 2024 and reserve accounts must be funded for future
repairs, such as the replacement of the roof, load-bearing
walls, and foundation.
"Nobody wants a Surfside to happen again. Nobody wants
unsafe buildings. But they’re going about it wrong," said
Severson.
He is concerned that a worst-case scenario will have his
association's monthly dues from $500 to $,3000, which will
force some residents to move.
Increased rates will also make it next to impossible to sell
vacant units.
"That’s almost twice what the average person collects in
Social Security," said Severson.
He told the outlet he was able to negotiate a policy for
$98,000 from Citizens Property Insurance, but only after a
payment of $262,000 is made to replace a roof on a building
that was installed in 2016.
Severson said his association is also proposing a nearly
$3,000 assessment this year to cover insurance increases and
the repairs.
However, he still worries that the association's financial
future could be much worse in 2024.
"I’ve asked the lawyer what would happen if we just refused
to comply. And she said, well, you could go to jail," he
said.