by Mike Colpitts 
A new condo law that will extend required condominium inspections on developments has been signed into law by Governor Ron DeSantis, giving condo owners a reprieve.
Two previous condominium reform laws were passed by the Florida legislature following the Surfside condominium collapse that killed 98 people in 2022. The new law requires “milestone inspections” to prevent additional condominium collapses.
New Condo Law Takes Effect July 1st
The law, which will go into effect July 1st, will also delay structural integrity reserves from being required for an additional two years. The inspections were supposed to be completed by the end of 2024 for buildings that were 30 years or older and higher than three stories.
“There were a lot of folks that had a lot of concerns about how some of these assessments were being done, whether people could even afford to even stay in their units,” Governor Ron DeSantis said.
Many condo associations started the inspections but were unable to raise the funds for condo assessments required by the new law without raising the monthly fees for condo owners to excessive levels, causing many owners to list their units for sale or sell their condos.
The bill (HB 913) gives condo associations flexibility on meeting the financial requirements to make needed improvements so that associations will have time to obtain loans to satisfy the work. Many condo associations have delayed needed repairs and restorations because of the heavy financial costs involved and have not planned for major improvements to be made to their developments.
Law Provides More Transparency
Under the new law condo associations are also required to provide condo meeting minutes on their website for the previous 12 months. The step is intended to help prospective purchasers learn about special assessments that have not yet been formally adopted.
The new condo law signed by Governor DeSantis also extends a buyer’s right to cancel a contract to purchase a condo unit to seven days after receipt of governing documents.
The state’s condo market has been in a crisis since the two new laws went into effect in 2022. Thousands of older condo buildings already inspected by state licensed building inspectors are in need of repairs.
DeSantis Top Priority
DeSantis made revising condo laws one of his top priorities of this year’s legislative session. The changes came after residents and associations argued that the laws passed two years ago were driving up costs and forcing condominium associations to raise their monthly fees.
The inspections are to be repeated every 10 years, detailing how much a condominium association needs to raise in additional association reserves to pay for structural repairs.
The repairs required by the inspections are hitting older buildings particularly hard. Those that are more than 30 years old are needing more repairs and replacement parts than newer dwellings. The governor is pushing for condo relief to aid hundreds of thousands of condominium unit owners who are unable to afford the higher association dues.
Condo Owners Hard Hit
Thousands of condo owners have put their units up for sale as a result of not being able to afford higher condo association fees and additional assessments. The condo crisis has left some retirees and older owners on fixed incomes particularly hard hit in older buildings. The new law should give condo owners a reprieve and the time needed to get financing to make necessary repairs.
The slow legislative process has also made it an opportunity for investors seeking to take advantage of the condo market at a time when some older condo owners were facing financial difficulties as a result of the legislation. Some cash-strapped owners are dumping their homes on the market and some are even selling at a loss to get out from under increasing debt.
Inventory is up more than 34% compared to last year but is now expected to ease as a result of the new law. The time it takes to sell has also increased.