A look at the soaring cost of condo ownership, especially for those who live in older buildings. NBC6’s Alina Machado took concerns to state lawmakers to discuss what could be on the horizon.
District 37 runs from Sunny Isles Beach up to the Palm Beach County line. It is one of the Florida senate districts with the highest concentration of condo units.
“We’re a truck full of condos,” said State Senator Jason Pizzo, a Democrat who represents district 37 in Tallahassee.
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Pizzo also lives in a condo and says he hears from concerned condo constituents every day.
NBC6 sat down with Pizzo to talk about the financial impact of some of the reforms passed by the state legislature in the wake of the Surfside condo tragedy in 2021, specifically about the requirement for condo reserves to be adequately funded by the end of 2024.
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“We saw for an entire generation people were waiving reserves, which was allowed by law, and really just sort of passing the buck, kicking the can, deferring maintenance,” Pizzo said.
Several state leaders have suggested changing the looming reserve funding deadline as a way of easing some of the financial burdens of the reforms. But the incoming speaker of the Florida House, South Florida Republican Daniel Perez, said they have already delayed the deadline enough.
“It’s for their own benefit,” Perez said. “This is not a special interest push. This has nothing to do with politics.This has to do with saving lives because I never want to see another Surfside take place.”
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“The reality is you can’t slow down father time and mother nature is undefeated, right?” Pizzo said. “So whatever we do up in a chamber in Tallahassee is not gonna slow down or stop the aging of a roof or other structural components.”
Condo associations may use special assessments to replenish reserves. Real estate experts warn the recent surge in the number of condo associations in older buildings that are imposing special assessments is having a real impact on the condo market.
A recent analysis by the South Florida real estate company ISG World showed in the third quarter of 2024, there were 20,080 active condo listings in Palm Beach, Broward and Miami-Dade counties. Of those listings, 85% (17,041) were for condos in buildings that were older than 30 years.
“The 30-year plus, that is very, very difficult to sell right now because of the fear of special assessments,” said Craig Studnicky, CEO of ISG World. “I think the state of Florida is gonna have to help these condominium associations finance these special assessments.”
But Perez and Pizzo said that is not likely to happen.
“There’s no state bailout coming,” Pizzo said. “There’s no financing coming from the state. It’s just, the numbers are not there. The resources aren’t there.”
Instead, Pizzo said he would like state lawmakers to explore ways to bring down insurance costs, which is another big factor that is driving up the cost of condo ownership. Both Pizzo and Perez told NBC6 they expect condo reform to be a legislative priority next year.
NBC6 emailed the Republican leadership of the Florida senate, but did not receive a response.
