Florida Gov. Ron DeSantis has called for a special legislative session later this month to deal with several issues, including a new building safety law that could force some condominium owners out of their units because they can't afford the fees associated with compliance.
DeSantis said the special session is set for the week of Jan. 27. The main topic is Florida's response to President-elect Donald Trump's deportation program, but disaster relief, ballot integrity and the condo law will also be discussed, the governor said at a press conference.
Senate President Ben Albritton and House Speaker Daniel Perez, both Republicans like DeSantis, issued a statement calling the special session "premature" and chided DeSantis for not providing specifics. The governor didn't respond but filed a proclamation to make the special session official.
The Florida Legislature is requiring aging condo buildings at least three stories tall to have engineering safety inspections completed, as well as studies that estimate what funding reserves are needed for maintenance and repairs. Condo boards must start collecting the necessary reserves and get the inspections every 10 years.
To increase reserves to help pay for needed repairs, some condo boards in the state are increasing their operating budgets and levying special assessments, moves expected to lead to much higher dues for unit owners. Some owners who can't afford the added fees may have to move but they could have trouble selling because fewer buyers will be interested in taking on the costly maintenance expenses, even if the unit prices are deeply discounted, market observers say.
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The law is in response to the 2021 collapse of the 12-story Champlain Towers South in Surfside, north of Miami, that killed 99 people.
DeSantis called the tragedy "one of the worst moments in the state's history" and said lawmakers wanted to do something that would prevent a similar occurrence.
"But one piece of legislation was just not going to be able to solve all the problems," he said. "We're now seeing some problems that I think were unintended that have popped up, and we have a responsibility to act to make sure people can stay in their condo units. The legislature should not be doing anything that's going to cause residents to have to flee because of an artificial mandate."
DeSantis said his administration and other lawmakers in recent months have solicited input from across the state, "So, let's get our heads together and let's provide some relief," he said.
About 70% of the more than 25,000 listings in South Florida are in buildings at least 30 years old, according to a report from CondoVultures, a Miami-based CondoVultures consulting firm.
Many condo owners are trying to sell but buyers are reluctant to dive into such a contentious and potentially costly issue as owning an aging condo in need of updates or repairs, CondoVultures principal Peter Zalewski said in an interview.
Zalewski wonders what Florida lawmakers can do to address the need for expensive repairs, short of creating an insurer of last resort at taxpayer expense for aging condos that can't abide by the safety law.
"Ultimately, it comes down to insurance," he said. "I don't see how they square it."
Donna DiMaggio Berger, a condo lawyer with Becker & Poliakoff in Fort Lauderdale, Florida, who represents condominium boards statewide, said she doesn't believe the much-needed safety reforms will be eliminated. She said she hopes the special session focuses on the ongoing insurance crisis.
"I think the Governor's Office as well as the offices of many Florida legislators who have a large percentage of condominiums amongst their constituents have been flooded with calls and emails from struggling owners," Berger said in an email.
The state has 1.54 million condo units and nearly 27,000 condo associations, according to the Florida Department of Business and Professional Regulation.
Condos in densely populated Miami-Dade, Broward and Palm Beach counties account for much of the market. Some observers estimate the new law could affect 70% of the state's condo stock.