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DEADLINE: JANUARY 2026
By
Jan Bergemann
Published June 2, 2023
SB 154 determined that each hi-rise building (3 stories or 75
ft.) -- condo or co-op – has to create fully funded reserves –
like it or not -- starting in January of 2026.
But that doesn’t mean that much higher monthly fees have to be
paid by the owners immediately, paying for insurance, studies
and engineering reports. Smart owners will already start
building up reserves now, not just waiting to start at the
deadline. We will see what happens when the owners are being hit
with big increases of monthly maintenance fees.
We already pushed in 2006 for mandatory fully funded reserves,
knowing that owners will take the easy way out, voting to not
fully fund the reserves. But Florida’s legislators allowed
owners to make this decision – and we see the results now! We
were absolutely correct. Many of these older hi-rise buildings
don’t have any reserves worth mentioning, a disaster for the
owners who, year for year, voted to not fund the reserves.
I’m already getting e-mails and telephone calls from owners who
are already facing much higher monthly maintenance fees: Fees
they can’t afford!
But I have to say one thing, even if it isn’t very popular among
condo-owners in the moment: If you own real-estate property you
have to pay for the upkeep, maintenance and repair of this
property – no matter if you live in a condo or a single family
home. There are only two options: Put money aside to pay for
expensive repairs so you have it when needed (like a reserve
fund) or be prepared to have enough money to pay for the
maintenance and/or repair by writing a check (like a special
assessment).
No matter what: The money has to be there when needed!
I know: Condo owners were promised: EASY LIVING!
But buyers beware: Developers always keep monthly fees
artificially low since property with low monthly maintenance
fees is easier to sell, but in the end the owners have to pay
the piper: Contractors who take care of maintenance and
repair of the building.
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Jan Bergemann is president of Cyber Citizens For Justice,
Florida
's largest state-wide property owners' advocacy group.
CCFJ works on legislation to help owners living in
community
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associations. He moved to
Florida
in 1995 - hoping to retire. He moved into a HOA, where the
developer cheated the homeowners and used the association dues
for his own purposes. End of retirement!
CCFJ was born in the year 2000, when some owners met in
Tallahassee
- finding out that power is only in numbers. Bergemann was a
member of Governor Jeb Bush's HOA Task force in 2003/2004.
The organization has two websites to inform interested
Florida
homeowners and condo owners:
News Website: http://www.ccfj.net/.
Educational Website: http://www.ccfjfoundation.net/.
We think that only owners can really represent owners, since all
service providers surely have a different interest! We are
trying to create owner-friendly laws, but the best laws are
useless without enforcement. And enforcement is totally lacking
in
Florida
!
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