By: Adam Walser
Condo boards may be forced to increase fees by six times
TARPON SPARES, Fla. – Condo owners living in Tampa Bay may face a double whammy between homeowner’s insurance and inspection fees.
As a result of the failure or relocation of private insurance providers, rates have increased. Citizens Property Insurance, which is backed by taxpayers, also plans to drop thousands of policies.
ABC Action News I-Team also learned that new laws passed in the wake of the Surfside condominium collapse may have double-whammy effects for condo owners throughout Tampa Bay.
Dan Severson worked previously as a safety and health officer in a nuclear energy plant. As President of Green Dolphin Condominium Association, he is now retired and focuses on the wellbeing of 96 condo residents. There are 27,000 condo associations throughout Florida.
Severson explained that he and the maintenance worker walked through the building together every week.
Built between 1982 and 1986, the units are located at Tarpon Springs – about two miles south of Gulf of Mexico.
They’re all slabs of concrete. He said that they were all built with metal studs.
The insurance quotes are now 13 times as high as in 2019.
The last insurance policy we had was over 50 pages. Severson stated that “it is full of exclusions with high deductibles. It’s like having no insurance.”
In 2019, the Association paid $600,000. This is 13 times what they received in 2018.
The cost of this condominium could be quadrupled. He said that this would be devastating for many senior citizens on fixed incomes.
There’s also a big problem with a law that was passed following the 2021 collapse of Champlain Towers Condo in Surfside FL which killed 98.
The governor said: “I am sure they will have engineers look at it to see what happened.” Ron DeSantis was at the scene for a day-after press conference.
The new law requires inspections as well as the creation of reserve funds
A building inspection revealed that concrete columns as well as the pool deck did not meet construction codes. Documents show the Champlain Towers condominium board had been warned of issues but ignored recommended repairs.
Jason Pizzo (Surfside) introduced a law calling for condo inspections statewide.
Florida has 4.5 million condominiums. Pizzo stated that the law was needed to ensure it doesn’t occur again.
In a recent special session, the law passed last year required condo buildings with at least three floors to undergo structural inspections thirty years after their construction. This is followed by ten-year intervals.
Inspecting a building that is close to a coastal area begins at the age of 25.
The way they’re approaching it is wrong
Severson fears that condo boards will be forced to reserve millions of dollars under the new law.
The structural integrity study must be finished by 2024. Reserve accounts are required to fund future major repairs including roof, foundation, walls and load-bearing wall replacement.
No one wants another Surfside. Everyone wants safe buildings. Severson says, “They’re doing things wrong.”
Seversen fears that in the worst-case scenario, his association could be forced to raise dues monthly from $500 to $3,000 and force some residents out. The increase in monthly dues could also make the apartments in the complex almost impossible to sell.
Severson: “It’s about twice the amount that an average worker receives as Social Security benefits.”
Severson was only able to negotiate with Citizens Property Insurance a policy of $98,000 after spending $262,000 on the replacement roof for a building installed in 2016. Severson says his association has proposed a $3,000 tax this year for insurance costs and repairs.
His concern is that the financial state of his association may be worsened next year.
“I asked the attorney what would happen to us if just refuse to comply.” Severson replied that she had told him he could be sent to jail.
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