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crisis is unfolding in Florida's condo market, threatening the state's reputation as a haven for retirees and affordable beach living. Owners of older condos are facing steep special assessments, making it difficult to sell their homes and causing them to lose value quickly. Nearly 1,400 buildings have been blacklisted from receiving mortgage financing, further complicating sales.

    The root cause of this turmoil is the need for repairs in Florida's aging condo buildings. State officials are enforcing a law that requires condo boards to assess and pay for long-overdue upgrades after the tragic 2021 collapse of Champlain Towers South in Surfside. Condo boards must now set aside funds to fix issues found in structural integrity studies, which can be costly.

    Special assessments have ranged from $250 to $2,500 per month, per unit owner, for a three-year period. At Aventura's Mediterranean Village, some owners faced six-figure special assessments, while at Miami's Cricket Club, 23 of the building's 217 condos are currently for sale due to $134,000 special assessments per condo.

    The situation is dire, with thousands of Florida condo units facing special repair assessments that are making them difficult to sell. Many owners are seeking to off-load their units with little success, while others have dropped insurance coverage to manage the costs. Failure to pay these assessments can impact more than just individual owners; if 15% of unit owners default, the entire property could become ineligible for mortgage financing.

    The full extent of special assessments is still unknown, as only 39% of buildings in Southeast Florida have submitted their structural integrity studies by the state deadline. Some condo boards are shopping for lower-cost studies, while others are waiting for a potential silver bullet from the upcoming Florida legislative session.

    Despite some maintenance challenges, older condos still offer an affordable opportunity at homeownership for those who can't afford Miami's new luxury developments. Brokers view the new regulations and mandatory repairs as a necessary correction to Florida's once-lax condo standards, which could ultimately unlock greater value for owners.