How New Safety Legislation Will Impact Florida Condo Market

New regulations governing condo construction in Florida, inspired by the disaster in Surfside, are facing pushback from industry leaders who say the law, as written, “presents a huge financial burden,” reports Robyn Griggs Lawrence for Construction Dive.

“By the end of 2024, the legislation requires condominiums that are at least three stories tall and within 3 miles of the coast be inspected by a licensed engineer or architect when they reach 25 years of age and buildings more than 3 miles inland at 30 years.” New buildings will also be required to install sprinkler systems as of January 2024.

The law would apply to around 1.5 million condo units in the state. Sensing the dilemma faced by many property owners unable to afford the new assessments, developers with deep pockets are swarming around property owners to buy up aging beachside buildings.

Long known as an affordable refuge for retirees, Florida quickly became the least affordable housing market in the country during the pandemic as demand grew and increasingly powerful storms threatened coastal areas. “Florida is also dealing with an insurance crisis, with homeowners paying nearly triple the U.S. average for property insurance and many insurance companies declaring insolvency, leaving the state or refusing to write new policies there.”

Attorneys in the industry say Florida’s legislation should serve as a model for other communities with aging condo buildings. According to Eric Glazer, a partner at Glazer & Sachs, “This is going to happen in every condominium everywhere in the United States that’s not requiring reserves. Florida clearly leads the country when it comes to condominium law.”