{"id":6292,"date":"2025-04-24T16:50:09","date_gmt":"2025-04-24T20:50:09","guid":{"rendered":"https:\/\/propertyonion.com\/education\/?p=6292"},"modified":"2026-02-22T10:39:15","modified_gmt":"2026-02-22T14:39:15","slug":"florida-condo-crisis-experts-warn-of-safety-and-financial-risks-as-boards-stall","status":"publish","type":"post","link":"https:\/\/propertyonion.com\/education\/florida-condo-crisis-experts-warn-of-safety-and-financial-risks-as-boards-stall\/","title":{"rendered":"Florida Condo Crisis: Experts Warn of Safety and Financial Risks as Boards Stall"},"content":{"rendered":"\n

Florida Condo Crisis: Experts Warn of Safety and Financial Risks as Boards Stall on Reserve Studies<\/strong><\/h3>\n\n\n\n

Florida Condo Crisis: Boards Face Fallout as Reserve Study Deadline Passes<\/strong><\/h3>\n\n\n\n

More than two years after Florida enacted sweeping new condo safety laws in response to the 2021 Surfside collapse<\/a>, many condominium boards have failed to comply \u2014 and the consequences are mounting.<\/p>\n\n\n\n

The law,\u00a0Florida Senate Bill 4-D<\/a>, required that by\u00a0December 31, 2024<\/strong>, condo buildings three stories or higher and at least 30 years old must undergo structural integrity reserve studies (SIRS) and begin funding reserves accordingly. Now that the deadline has passed, noncompliant buildings\u00a0are facing\u00a0higher insurance costs<\/strong>,\u00a0market devaluation<\/strong>, and increasing scrutiny from insurers, engineers, and state officials.<\/p>\n\n\n\n

At the recent\u00a0Bisnow South Florida Condo Summit<\/a>, experts warned that many boards are either unaware of the law or actively choosing to delay necessary work, risking financial collapse and resident safety.<\/p>\n\n\n\n

\u201cThey immediately start wanting to figure out how they can take shortcuts and slash,\u201d said Audrey Ortiz-Blackmon, VP of Coast to Coast General Contractors. \u201cThey get very creative.\u201d<\/p>\n\n\n\n

The Deadline Has Passed \u2014 and So Has the Grace Period<\/strong><\/h3>\n\n\n\n

While condo associations had a final opportunity to waive reserves in 2023 with a majority vote, that option is no longer available. Yet, according to a\u00a02023 South Florida Business Journal report<\/a>, only\u00a044% of Miami-Dade<\/strong>,\u00a041% of Broward<\/strong>, and\u00a028% of Palm Beach<\/strong>\u00a0condo buildings subject to the law completed their SIRS on time.<\/p>\n\n\n\n

Some boards tried to satisfy the law with visual-only inspections or reports from unqualified firms \u2014 only to find they must restart the process from scratch. In one case, an engineer was offered a $5,000 bribe to falsely certify a building\u2019sreport.<\/p>\n\n\n\n

\u201cI can’t go and certify something made on somebody else’s assessment,\u201d said Misha Mladenovic, president of m2e Consulting Engineers.<\/p>\n\n\n\n

Mladenovic added that some boards are simply hoping enforcement will never arrive or that the law will be weakened \u2014 what he called a strategy of \u201ckicking the can down the road.\u201d<\/strong><\/p>\n\n\n\n

Financial Pressure Mounts<\/strong><\/h3>\n\n\n\n

The impact on the real estate market<\/a> has been swift and harsh. According to\u00a0ISG World<\/a>, the\u00a0average sale price of condos over 30 years old dropped by 21%<\/strong>\u00a0between late 2023 and early\u00a02025,\u00a0due to uncertainty over reserves, upcoming assessments, and insurance instability.<\/p>\n\n\n\n

At the same time, the average cost of condo insurance\u00a0more than doubled<\/strong>\u00a0\u2014 from\u00a0$72,570 in 2022 to $147,381 in 2024<\/strong>, according to the\u00a0Sun Sentinel<\/a>.<\/p>\n\n\n\n

\u201cThe less that you can show as being active on the front foot to comply with these issues, the harder it is to find a limit taker to insure your risk,\u201d\u00a0said Matthew Maffai, senior vice president at\u00a0Marsh<\/a>.<\/p>\n\n\n\n

Insurers are already exiting buildings that haven\u2019t complied. Even for repairable structures, companies are declining to renew policies<\/a> unless reserves are allocated and repairs are scheduled \u2014 a risk now being realized in dozens of older buildings across Florida.<\/p>\n\n\n\n

State Officials No Longer Patient<\/strong><\/h3>\n\n\n\n

Despite ample media coverage and official outreach campaigns, some condo associations remain unaware or in denial. Attorney Joe Hernandez of Bilzin Sumberg<\/a> shared that he\u2019s still receiving calls from board members just learning about the new law in 2025.<\/p>\n\n\n\n

\u201cIt\u2019s stunning to me,\u201d Hernandez said. \u201cBut I think that explains why there\u2019s so much noncompliance.\u201d<\/p>\n\n\n\n

And the Florida Legislature has taken note. While the statute does not impose direct penalties for missing the deadline, enforcement is happening through other channels. For example,\u00a0Rep. Vicki Lopez<\/a>\u00a0introduced a bill prohibiting\u00a0Citizens Property Insurance<\/a>\u00a0\u2014\u00a0Florida\u2019s\u00a0insurer of last resort \u2014 from covering noncompliant condos.<\/p>\n\n\n\n

That would make some units uninsurable and unsellable \u2014 a death knell for buildings that failed to prepare<\/strong>.<\/p>\n\n\n\n

Delays Are No Longer an Option<\/strong><\/h3>\n\n\n\n

Experts agree that this is no longer a matter of warnings or projections. The financial and safety risks are real, and they are here now.<\/p>\n\n\n\n

Insurers and lenders are already flagging some buildings as \u201chigh risk,\u201d making it difficult for unit owners to refinance or sell. Others are facing emergency special assessments totaling millions of dollars \u2014 often more than earlier planning would have required.<\/p>\n\n\n\n

\u201cNobody is trying to create panic,\u201d Mladenovic said. \u201cBut when engineers or inspectors sound the alarm, it\u2019s because lives \u2014 and livelihoods \u2014 are on the line.\u201d<\/p>\n\n\n\n

What Boards Must Do Now<\/strong><\/h3>\n\n\n\n

If your condo board has missed the deadline, all is not lost \u2014 but action is critical.<\/p>\n\n\n\n

    \n
  1. Engage a qualified engineering firm immediately<\/strong>\u00a0to complete a full SIRS, not just a visual walkthrough.<\/li>\n\n\n\n
  2. Develop a reserve funding plan<\/strong>\u00a0based on the study and begin collecting.<\/li>\n\n\n\n
  3. Communicate transparently<\/strong>\u00a0with unit owners. Resistance often comes from a lack of information.<\/li>\n\n\n\n
  4. Prepare for potential lender or insurer audits<\/strong>. Be ready to show documentation of compliance efforts.<\/li>\n\n\n\n
  5. Stay informed on evolving state legislation<\/strong>\u00a0related to insurance eligibility and funding requirements.<\/li>\n<\/ol>\n\n\n\n

    Conclusion<\/strong><\/h3>\n\n\n\n

    The Surfside tragedy was a wake-up call. Florida\u2019s 2022 legislation was the response. But now, in 2025, the time for awareness and planning is over. The only question that remains for many boards is: what will non-compliance cost you now?<\/strong><\/p>\n\n\n\n

    For condo owners and investors, verifying the reserve study status<\/a> of any property is no longer optional \u2014 it\u2019sessential. And for boards, the message is clear: inaction is no longer tolerated<\/strong>.<\/p>\n\n\n\n

    t\u2019s a current reality.<\/p>\n","protected":false},"excerpt":{"rendered":"

    Florida Condo Crisis: Experts Warn of Safety and Financial Risks as Boards Stall on Reserve Studies Florida Condo Crisis: Boards Face Fallout as Reserve Study Deadline Passes More than two years after Florida enacted sweeping…<\/p>\n","protected":false},"author":11,"featured_media":6298,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[71,318,221,415,67,43,1016,20],"class_list":["post-6292","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-real-estate-investing-articles","tag-condo","tag-condo-association","tag-condo-board","tag-florida-market","tag-real-estate","tag-rehab","tag-reserve","tag-south-florida"],"_links":{"self":[{"href":"https:\/\/propertyonion.com\/education\/wp-json\/wp\/v2\/posts\/6292","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/propertyonion.com\/education\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/propertyonion.com\/education\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/propertyonion.com\/education\/wp-json\/wp\/v2\/users\/11"}],"replies":[{"embeddable":true,"href":"https:\/\/propertyonion.com\/education\/wp-json\/wp\/v2\/comments?post=6292"}],"version-history":[{"count":7,"href":"https:\/\/propertyonion.com\/education\/wp-json\/wp\/v2\/posts\/6292\/revisions"}],"predecessor-version":[{"id":10101,"href":"https:\/\/propertyonion.com\/education\/wp-json\/wp\/v2\/posts\/6292\/revisions\/10101"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/propertyonion.com\/education\/wp-json\/wp\/v2\/media\/6298"}],"wp:attachment":[{"href":"https:\/\/propertyonion.com\/education\/wp-json\/wp\/v2\/media?parent=6292"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/propertyonion.com\/education\/wp-json\/wp\/v2\/categories?post=6292"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/propertyonion.com\/education\/wp-json\/wp\/v2\/tags?post=6292"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}