Related: Special Report: Condo costs: A sudden storm
By Rich Pollack
A few South Florida state legislators are quietly working on creating a “condo caucus” to consider future legislation aimed at addressing myriad issues facing condominiums, including those outlined a month ago in a special report by The Coastal Star.
While details are still being worked out, the proposed bipartisan caucus will include representatives from house districts that contain an abundance of condominiums.
State Rep. Peggy Gossett-Seidman of Boca Raton says plans are in their early stages. She thinks the caucus members can have greater impact by working together on pressing issues.
Those issues include condominium governance and financial challenges due to rising insurance premiums and strict legislation requiring inspections and potentially costly renovations — as well as mandating reserve funds to address future projects. The laws are a reaction to the collapse of Champlain Towers South in 2021 in Miami-Dade County.
A caucus is an informal group of legislators created to share expertise and ideas prior to formulating and filing bills. Traditionally, legislation created through the caucus process navigates the Legislature more easily because nuances are fine-tuned and details are ironed out, according to Gossett-Seidman and state Rep. Mike Caruso, whose district includes much of coastal Palm Beach County.
“You can focus on the issues of that caucus and create legislation that addresses those issues,” Caruso said.
He said the caucus likely will receive input from condo residents and listen to their concerns.
“We’re going to know what these condos are facing and get ideas on what they think needs to be fixed,” he said.
Rising costs are likely to be a major topic of discussion.
In its special report, The Coastal Star looked at the cumulative impact that rising insurance premiums and mandates for structural integrity recertification and reserve funds is having on coastal condominium residents in southern Palm Beach County.
The report detailed how the multiple factors combined into what some labeled a tsunami, forcing condo boards to raise maintenance fees and impose special assessments to levels that are driving longtime unit owners to consider fleeing their homes.
Condo owners in one Highland Beach building are facing an assessment of more than $200,000 per unit. Many condo boards can’t find insurance that will cover the full replacement cost of their buildings.
With mandated costs expected to continue rising, in part because of the requirement to have enough money in reserves to cover replacement of critical items once they meet the end of their useful lives, some condo leaders are hoping the state can help out.
In a letter to Gossett-Seidman, the president of the Beach Condo Association of Boca Raton, Highland Beach and Delray Beach asked for help in getting the state to create a long-term low-interest loan fund that would provide financial relief for residents.
“We cannot help but believe that if we got hit with a category 4 or 5 storm that the state and cities would be here aiding,” wrote Emily Gentile, who sent copies of the letter to Florida House Speaker Paul Renner as well as the mayors of Boca Raton, Highland Beach and Delray Beach.
For condo residents on fixed incomes, “they can no longer afford to stay or pay,” she wrote.
Gentile, who included copies of The Coastal Star report with her letter, acknowledged that the state has made progress in assisting condos. During this year’s session, House representatives unanimously approved a bill that would create the My Safe Florida Condominium Program, which would provide condos within 15 miles of the ocean with up to $175,000 for roof, door and window improvement projects.
Legislators have set aside $30 million for the pilot project, which has already passed the state Senate and awaits the governor’s signature.
Gossett-Seidman says the caucus will tackle issues head-on but that no immediate miracle solution exists.
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