Florida’s condominium market is experiencing a significant structural shift as associations navigate mandatory post-Surfside safety laws, including milestone inspections and fully funded reserves. The regulations, enacted following the 2021 collapse of Champlain Towers South, mandate 30-year structural inspections (25 years for coastal properties) and require associations to establish full reserve funding for structural maintenance. Data indicates that nearly 750 buildings statewide are likely past due for compliance, creating financial strain and operational challenges for associations across the state.

The legislative shift and stricter underwriting criteria from mortgage giants Fannie Mae and Freddie Mac have created a widening divide between well-maintained properties and distressed older inventory. Condo sales under $1 million fell 27 percent in the first half of the year compared to 2019 levels, while sales above $1 million rose 143 percent. Lenders now enforce rigid reserve requirements and require conventional loans to meet a 15 percent minimum reserve allocation threshold starting in early 2027. Legal and risk experts warn that managing these multimillion-dollar renovation projects presents severe risks, particularly for smaller or self-managed associations lacking professional management oversight.

(source: The Real Deal, picture: Sergio Arteaga)