"A reckoning is coming for Florida's condo owners as buildings face millions in repairs"

Across Florida, aging condominium buildings are grappling with rising expenses and millions in structural repairs to comply with new regulations enacted after the Champlain Towers collapse, which claimed 98 lives in 2021. While the new building requirements aim to prevent similar tragedies, the costs are pushing many condo owners to the financial brink, threatening one of the last relatively affordable housing options along Florida’s coastline.

“We need to get these buildings back in shape, but for renters and owners on fixed incomes, this could mean finding new housing,” said Florida House Rep. Vicki Lopez, who helped draft the legislation and represents a Miami district with over 600 condo associations. “We already have an affordable housing crisis in Florida, and now this perfect storm is hitting at a very challenging time.”

Like the rest of the U.S., housing costs in Florida have surged, putting pressure on household budgets. Home prices in the state have risen 67% since 2020, and homeowners insurance costs jumped 42% last year. In most Florida counties, median-income households cannot afford the median-priced home, according to NBC News’ Homebuyers Index.

For many, older condo buildings have been an alternative to single-family homes, offering a more affordable and lower-maintenance option. These buildings often house retirees, many of whom have lived there for decades, as well as single-income households and renters. However, even these homes are becoming unaffordable for some.

New legislation passed by the Florida state Legislature after the Champlain Towers disaster mandates that condo buildings over three stories and more than 30 years old must undergo a structural inspection by the end of the year. This affects roughly 900,000 condo units statewide. The law also requires condo associations to maintain minimum reserves for future repairs, leading many buildings to raise their monthly dues.

In Miami, residents of the Palm Bay Yacht Club, where two-bedroom units have sold for $400,000 to $500,000, are being charged $140,000 each for a special assessment covering a range of building improvements. At Surfside condos in Daytona Beach, where a two-bedroom unit is listed for $415,000, owners have paid between $50,000 and $60,000 for concrete repairs and window replacements. In Orlando, owners at Regency Gardens, where two-bedroom units are priced around $160,000, were informed they would need to pay $22,000 each for building upgrades, although residents have since removed the board and are working to reduce costs.

In some extreme cases, residents are being asked to evacuate their buildings due to structural deficiencies discovered during inspections, according to Greg Batista, an engineer with over 20 years of experience in Florida. He is currently working on a building in Miami Beach that may need to be vacated for safety reasons, and he recently worked on a 20-story condo in Hollywood, Florida, where a three-story parking garage was shut down until repairs could be made.

One such resident, Stone, purchased her condo at the Surfside Club in Ormond Beach to be closer to her daughter and grandchild. A widow, she expected condo living to provide a sense of community, lower maintenance, and added security compared to a single-family home. But within a year, she was hit with a $100,000 special assessment for concrete restoration, new windows, and increased reserves.

Stone, who had already used most of her retirement savings for the condo's down payment, couldn’t afford the assessment. Condo associations can foreclose on owners who fail to pay. Considering selling her unit wasn’t an option either, as the assessment had depressed property values. A similar unit to Stone’s, which she purchased for $400,000 in 2021, is now listed for $335,000 after several price reductions.

Her only solution was to return to work. Stone reapplied to her previous job teaching 3- to 5-year-olds with autism in Las Vegas and is now working full-time again. “I’m exhausted every single day,” she said. “I come home, fall asleep, and do it all again the next day.” She is using her entire paycheck to pay off the condo assessment, which she expects to settle in two years. After that, she plans to move back into her Florida condo, but for now, she’s living with her adult son.

“This was supposed to be my time to really retire, be close to my daughter and granddaughter, and enjoy life,” Stone said. “That didn’t happen.”

The rising costs of condo ownership have driven up the number of units on the market and caused prices to drop, according to real estate agents. Statewide, condo inventory has increased by 23% in the past six months, while prices have fallen by 4.5%, according to an NBC News analysis of Redfin data. In Volusia County, where Stone’s condo is located, inventory has surged by 28%, and prices have decreased by 9%.

“All the realtors are talking about how long their listings are sitting, how things aren’t moving, and that there just aren’t enough buyers,” said Krista Goodrich, a Daytona Beach-area realtor and vacation rental manager. “Condos are being hit the hardest because buyers have seen the damage hurricanes can do, they’ve seen the issues with poorly built condos, and now they’re hesitant to buy beachside condos.”