A group of Florida condo owners are fighting back after facing a potential $3,000 increase in fees every month due to the real estate crisis.
Residents of Harborage Condos in Palm Beach are joining forces to pass nationwide regulations that could saddle them with eye-watering costs by the end of the year.
Under the Structural Integrity Reserves Study (SIRS), Florida is requiring condo owners to undergo investigations for repairs to comply with new state laws passed after the collapse of Champlain Tower South in Miame-Dade County, which killed 98 people were killed.
Darlene VanRiper, who is leading Harborage Condos’ efforts to scrutinize the new laws, said an engineer has recommended $6,480,000 in repairs to the buildings to meet SIRS’ needs – or an additional $3,000 per house per month.
“We have to do something, and we have to do it now,” Darlene VanRiper told NBC WPTV. ‘It’s time to come together. You’d be amazed at what people can do when they’re united.’
‘If you look at everything people have on their plates now: inflation, insurance and now this? It is unsustainable,” she added.
A group of Florida condo owners are fighting back after facing a potential $3,000 increase in fees every month due to the real estate crisis. In the photo: Miami
Darlene VanRiper (pictured), who is leading Harborage Condos’ efforts to scrutinize the new laws, said an engineer has recommended $6,480,000 in repairs to the buildings to meet SIRS needs – or Additional $3,000 per home per month
“We have seen that this legislation can be passed virtually overnight. It was forced on us. We hire a lobbyist so we have a voice at the table. We really need to let them know what the practical problems are.’
“If those fees keep going up like that, I’m not sure I can do it,” resident Candy Raulerson also told WPTV. “I would have to budget and reconsider everything.”
“If we don’t make our views known to the state, how can we bring about change?” Raulerson added. ‘You also think about seniors. … It’s going to have a big impact on them. I can’t imagine that they can afford that, someone living on social security.’
Condo owners’ battle against rising costs comes as top investor Grant Cardone, who owns 15,000 properties, told Dailymail.com that 80 percent of Florida condo owners are at risk of losing money on their properties, thanks in part to the new laws.
“If those costs keep going up like that, I’m not sure I can do it,” said resident Candy Raulerson (pictured)
Top investor Grant Cardone, who owns 15,000 properties, told Dailymail.com that 80 percent of Florida condo owners are at risk of losing money on their properties, thanks in part to the new laws
Florida condo owners have been forced to cut prices by as much as 40 percent to sell their properties rather than pay huge repair costs to comply with SIRS laws.
In South Florida alone, an estimated 360,000 property owners may not be able to afford the repairs required by the new law.
Cardone predicted that because as many as 80 percent of Florida condo owners are affected, the crisis would likely spread across America.
“It has all already started and will continue to spread to the point where residential HOAs and apartments are being penalized,” he told DailyMail.com.
Cardone said that if the federal government doesn’t “step in,” the reserves of condo associations across America are “at risk” of going bankrupt.
“There is no more time to solve this problem – it is a bigger problem than global warming,” Cardone warned.
“I have always been against investing in condos because of the endless cost increases for taxes, insurance and out-of-control condo association fees and dues.”
ISG World reported that there were a whopping 20,293 condos for sale in Palm Beach, Broward and Miami-Dade in the second quarter of this year, up from 8,353 in 2023.
State legislation introduced following the 2021 collapse of Champlain Tower South in Surfside (photo)
The tragedy killed 98 people, meaning hundreds of thousands of condo owners now have to pay hefty sums for previously neglected maintenance
The properties with the biggest price drops were in St. Petersburg, Sarasota and Venice on the West Coast and Miami, Fort Lauderdale, Boca Raton and West Palm Beach on the South and East Coast.
The Champlain Tower disaster has lifted the tide of widespread neglect of old apartment buildings, with associations delaying crucial repairs to save money.
The collapse prompted lawmakers to introduce the SB 4-D Bill in May 2022, which would require all state apartment buildings age 30 and older to undergo an inspection by the end of the year.
Apartment owners and associations must commence the repair and maintenance work specified in the report within one year of receiving the report.
Nearly 90 percent of the more than 20,000 units for sale in Palm Beach, Broward and Miami-Dade are in buildings that are at least 30 years old.
Miami real estate agent Steven Kupchan told DailyMail.com earlier this month that people are flocking to Georgia, Texas, the Carolinas and even leaving the country for places like Mexico or Central America.