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LET’S GO TO THE NUMBERS
By
Eric Glazer, Esq.
Published September 12, 2022
A few weeks ago on the Condo Craze and HOAs radio show, I was
sent a chart by a listener that showed that just under 50% of
condominiums were funding a reserve account in full each month.
As I was broadcasting this information, I felt that it sounded
a little high. It turned out that I was referring to a national
chart of condominiums, and not the State of Florida. Florida is
apparently much worse and the actual figure is more like 10
percent at most. This is not good.
It’s scary that owners did not put away money for roof, pavement
and painting because they thought it cost too much money and
starting January 1st, 2025 the budget must include
reserves for ten categories after a structural reserve study is
done by an architect or engineer. Your Board will no longer be
able to do the reserve study either. If you have never been
putting money away for reserves by waiving them year after year,
your budget and your monthly assessment will be going up. Way
up. And I’m sorry to say that you have nobody to blame but
yourself.
It always irked me that owners waived reserves because they
thought that that might not be living in the condo twenty years
from now so why fund the roof, why fund the plumbing and
painting? The problem with that argument is that the people who
lived in your unit twenty years ago thought the same way and now
you got stuck with a BIG BILL because the prior owners didn’t
put money away for the future. If they put even half of a
properly funded reserve budget away each month, none of you who
live in a 3 story or higher condo would be facing the huge
financial issues that are heading you way.
Just to remind everyone who lives in a 3 story or higher
condominium:
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If your building is 75 feet or higher, ou have to have
either fire sprinklers or an engineered life safety system
by January 1st, 2024. THAT CAN COST 7 FIGURES.
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If your building is 3 stories or higher, You have to have
the building undergo a PHASE ONE INSPECTION by an architect
or engineer by December 31st, 2024.
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If the Phase One inspector finds signs of possible
structural deterioration, You have to have the building
undergo a PHASE TWO INSPECTION by an architect or engineer.
Just the costs of the two inspections will be six figures.
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If the Phase Two inspector finds that necessary structural
repairs need to be made, you will be forced to make them
timely. Again, a likely seven figure cost.
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You have to have a structural integrity reserve study done
by a Florida architect or engineer by December 31st,
2024.
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You have to fully fund your structural integrity reserve
account starting January 1st, 2025 and cannot
waive this requirement.
Ladies and gentlemen, your bill is due if you kicked the can
down the road and avoided necessary assessment, the funding of a
reserve account and necessary repairs. Under Florida law and as
a tribute to the 98 victims at Champlain Towers in Surfside,
these laws do all they can to ensure another tragedy does not
happen again.
But I ask you……….what is your plan now that you know these
massive costs are coming? If you don’t think you will be able
to afford it, now is the time to try and sell and either move to
an HOA, or a condo that is less than 3 stories, something like a
townhouse.
I truly think sharing your plan on-line will help promote others
to think now about what they need to do. Waiting for the last
minute, when special assessments are already passed and massive
construction is necessary along with a fully funded reserve
account may make it impossible to sell your unit. PLEASE
DON’T WAIT UNTIL 2025 TO DEAL WITH THE STICKER SHOCK THAT IS
COMING. If you cannot afford it, no doubt you will be
foreclosed on and may wind up losing your condominium.
Everyone……please share your plan and help motivate others to ACT
NOW.
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About
HOA & Condo Blog
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Eric Glazer graduated
from the University of Miami School of Law in 1992 after
receiving a B.A. from NYU. He has practiced community
association law for three decades and is the owner of
Glazer and Sachs, P.A. a five attorney law firm with
offices in Fort Lauderdale and Orlando.
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Eric is Board Certified by The Florida Bar in
Condominium and Planned Development Law.
Since 2009, Eric has been the host of Condo Craze
and HOAs, a weekly one hour radio show that airs at 11:00 a.m.
each Sunday on 850 WFTL.
See:
www.condocrazeandhoas.com.
Eric is the first attorney in the State of
Florida that designed a course that certifies condominium and
HOA residents as eligible to serve on a Board of Directors and
has now certified more than 20,000 Floridians all across the
state. He is certified as a Circuit Court Mediator by The
Florida Supreme Court and has mediated dozens of disputes
between associations and unit owners. Eric also devotes
significant time to advancing legislation in the best interest
of Florida community association members.
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