Impact of New Regulations
Maya Vander, a Miami-based realtor and star of “Selling Sunset,” discussed the recent regulations impacting Florida’s real estate market. The regulations, implemented after the 2021 Surfside condo collapse, require older buildings to undergo inspections and repairs. Buildings 30 years old, or 25 years old if near saltwater, must be inspected and repaired if issues are found. This has led to significant costs for homeowners, potentially reaching six figures, and has caused homeowners association (HOA) fees to skyrocket. This situation is particularly challenging for retirees on fixed incomes who are now struggling to afford these costs and are forced to sell their properties.
Market Conditions
Despite these challenges, Vander noted that the market remains active, with people still buying condos, including investors and those purchasing second homes. However, advises her clients to budget for additional costs related to reserves and potential HOA fee increases.
Government Response
There are questions about whether the Florida government, including the legislature and governor, will review the policy due to its impact on older homeowners. The implementation of the law has not been staggered based on building age, leading to a shortage of inspectors, engineers, and contractors, which complicates and delays necessary work.
Long-term Solutions
Vander emphasized the need for better regulation and experienced individuals running homeowner associations. She suggested that assessments for reserves should be built up gradually over the years rather than being imposed suddenly. There is also concern about the certification process for buildings and whether inspections and repairs are being done correctly.
Conclusion
While Florida’s real estate market remains good, the new regulations following the Surfside collapse have created financial challenges for many homeowners. The state’s approach to implementing these regulations has been criticized, and there is a call for a more regulated and gradual process to address these issues.
