Florida's already fragile condo market faces devastating final blow
As hurricane season ramps up, forecasters are warning of an 'above normal' number of storms — threatening to push an already fragile sector to the brink.
Condo communities across the Sunshine State are still reeling from skyrocketing HOA fees, steep maintenance costs, and tough new building laws passed in the wake of the Surfside collapse.
Now, experts say a major storm could deliver a knockout punch.
'As a Florida resident, I certainly hope we are spared a direct hit this hurricane season,' Alessandra Stivelman, partner at Eisinger Law, told DailyMail.com.
'But from a legal and structural perspective, Florida condominiums are currently facing what I would describe as a perfect storm of vulnerability — both physical and financial.'
'After several relatively quiet hurricane seasons on the east coast, any significant storm now has the potential to inflict far more than just wind or water damage.
'It could expose and magnify deep-seated issues that have been building for years, including deferred maintenance, underfunded reserves, insurance gaps and a lack of readiness for new legal requirements.'
Many of Florida's condos were built decades ago — long before modern hurricane codes. That means no storm-rated windows, no reinforced roofs, and poor waterproofing.
But even newer buildings aren't necessarily safer. Some suffer from poor upkeep or are ill-equipped to handle storm surge and prolonged flooding.
'Condominiums, especially those located in coastal and flood-prone regions like Florida, are inherently vulnerable to hurricanes due to their high-density, multi-story construction and shared infrastructure,' Stivelman says.
Heavy rains, even outside of hurricane season, can overwhelm existing infrastructure and lead to water seepage, flooding and mold—problems that are difficult and expensive to fix.
Over 8 million homes in Florida are at risk of suffering moderate or greater risk of hurricane wind damage this year, while over 2 million are at risk of significant storm damage, says a new report by Cotality.
The National Oceanic and Atmospheric Administration (NOAA) predicts a dangerous hurricane season, which officially began on June 1 and will continue until November 30.
They project 13 to 19 heavy storms, 6 to 10 hurricanes and 3 to 5 major hurricanes.
With predictions of up to 19 named storms and five major hurricanes, residents of the Sunshine State – many already paying the highest home insurance premiums in the nation – are petrified.
Over the last five years, several major natural disaster insurance providers have pulled out of Florida entirely or have slashed their coverage options, citing unsustainable catastrophe exposure.
While many homeowners have watched their premiums triple, NerdWallet reports the annual cost of home insurance in Florida is now $2,625, which is 24 percent above the national average.
Champlain Towers was in the midst of its 40-year structural review when it collapsed without warning in the early morning hours of June 24, 2021, killing 98 people
Florida's condo owners are facing even more challenges, many of them tied to sweeping legislation introduced in the aftermath of the tragic 2021 Surfside condo collapse.
The new building safety law, which includes mandatory inspections and strict reserve funding rules, has had a major effect on HOAs and reserve funds.
'With the recent implementation of Florida's Milestone Inspection and Structural Integrity Reserve Study (SIRS) laws, associations are under immense pressure to fund repairs and reserves simultaneously,' Stivelman says.
'A hurricane event could trigger emergency structural assessments, accelerate statutory deadlines, and force boards to make immediate financial decisions, often without sufficient insurance proceeds or reserve funds in the bank.'
Stivelman adds that In some cases, associations may find themselves unable to meet both the regulatory obligations and the financial burden of post-storm recovery.
'The impact is not just property damage; rather, it's about legal compliance, market stability, and the long-term viability of aging buildings across the state,' she says.
Florida condominiums are undeniably more vulnerable today than in prior years, not solely due to physical aging or deterioration, but as a result of a complex convergence of financial, regulatory, and environmental pressures layered atop existing structural risks, according to Stivelman.
'Many of the state's condominium buildings include aging structures that are increasingly susceptible to significant damage under storms and post-storm conditions,' she says.
The aftermath of Hurricane Helene in 2024 leaves buildings demolished
'Additionally, continued urban development without commensurate investment in stormwater infrastructure has increased the flood risk across the state—even in the absence of hurricanes.'
With all of the problems at hand, many are choosing to sell—but the flood of listings has left the market oversaturated and buyer interest has been sluggish.
There are a few things condo owners can do to prepare for hurricane season.
First of all, condo owners should understand that living in a condominium means sharing financial responsibility for the upkeep of the entire building, not just their individual unit.
A multi-residential housing model, and major repairs like roof replacements, structural work, or waterproofing must be planned and funded collectively.
'If you are an owner and you are not consistently contributing to reserves through your dues, then when a major repair is needed, the cost will come due all at once, whether through a special assessment, a personal loan/refinance, or even being forced to sell,' says Stivelman.
'Owners should expect these expenses and plan accordingly.'
She adds that in addition, active participation in condominium meetings and staying informed are essential.
Florida condominium owners may qualify for assistance through several state and local programs designed to ease the financial burden of storm-resilient upgrades
'Understanding the building's financial health, upcoming repair needs, and the legal obligations of both the owners and the association is critical,' Stivelman says.
'Florida law now requires more transparency and financial responsibility from associations, but it's up to the owners to remain engaged, ask questions, and hold boards accountable.
'Knowledge and involvement are key to avoiding unnecessary surprises and ensuring the long-term stability and value of your property.'
Florida condominium owners may qualify for assistance through several state and local programs designed to ease the financial burden of storm-resilient upgrades and regulatory compliance.
For instance, the My Safe Florida Home Program offers matching grants for improvements such as impact-resistant windows and doors, while Miami-Dade County's Condominium Special Assessment Program provides low-interest loans to eligible owner-occupants facing significant assessments related to building repairs and recertification.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Daily Mail
26 minutes ago
- Daily Mail
McDonald's fans revolt as price of only 'fair' menu item skyrockets: 'I'm done'
McDonald's loyalists are complaining on social media after the chain's famous $5 meal deal jumped in price — in some locations, now costing $7 in less than a month. The four-item meal deal launched in May last year and quickly sparked copycat offers from Burger King and Wendy's. It was introduced to counter growing frustration among Americans at soaring fast food prices, with a $17 Big Mac becoming the poster child for soaring burger costs. The move worked, helping lure customers back to McDonald's 18,000 US restaurants. But fans are frustrated as prices creep up in some areas'. One Reddit user said: 'I stopped going to McDonald's for a couple of years because of the prices, but the $5 meal deal seemed fair. 'Well, a couple of weeks ago it became $6. And today it's $7.40 percent more in less than a month is wild. I'm done again.' The deal includes a sandwich — either a McChicken, McDouble, or Daily Double — four chicken nuggets, fries, and a drink. Depending on location and choices, the Daily Double option can push the price to $7. Some fans slammed McDonald's for 'dropping the ball,' while others point out the meal still offers 40–50 percent off compared with ordering items individually. A Reddit user claimed a $5 meal deal at McDonald's cost $7 at their local restaurant A few customers defended the chain, saying the meal still costs $5 at their local restaurants. 'Mine is still $5 for the McChicken meal,' one said. 'Along with either a free six piece nuggets or free Big Mac if the Phillies win or Eagles get a sack, I consider that a really good deal.' 'The deals are pretty fair if you use them in conjunction with a promo,' another customer commented. 'Besides, these meal deals were only supposed to be around for like a month anyway.' The debate comes after McDonald's recovered from its first quarter sales slump — to post a 2.5 percent rise in US sales. It was boosted by the Minecraft Meal offer and the roll-out of McCrispy Strips. With consumers fearing skyrocketing prices of Big Macs, some have opted to skip McDonald's and head over to another restaurant. Some gave brief shout outs to the all-new McDonaldland Meal — a limited-time offering bring back beloved characters Grimace, Ronald McDonald, Birdie, Fry Friends, Hamburglar and Mayor McCheese. While customers were eager to get their hands on the meal, employees were aggravated to learn they would debut a month after the Snack Wrap relaunch. 'Seriously!?! One more thing to shove in my already overloaded tiny walk-in cooler!,' a worker wrote on a Reddit post. Multiple social media users believed the prices were 'more than fair' and were not higher than usual The negative hype and humiliating loss for the nation's favorite fast food chain, is not affecting the company's plan to boost employment and customer satisfaction. Customers were ecstatic to earlier this summer that a 'vast majority' of McDonald's restaurants permanently extended operating hours. The chain is also completing its biggest job push since 2020 — 375,000 Americans. The hiring wave will span to over 13,000 US locations while the chain prepares to open 900 new restaurants by the end of 2027. Working to implement more AI technology into its 43,000 restaurants, the company has not revealed which of the new locations will include the technological updates. It is continuing to work with its franchisees in ensuring menu prices are affordable for all customers.
Daily Mail
26 minutes ago
- Daily Mail
Appalling text Phoenix news anchor sent husband that ended with their lives in ruins
A glamorous ex-news anchor convicted of a billion-dollar fintech scheme sent a text to her husband admitting they were fraudulently applying for government funds. Stephanie Hockridge-Reis's appalling message to her husband Nathan Reis emerged as Reis took a plea deal over his part in the Covid-19 funding scam. The couple were accused of submitting false applications for Payment Protection Program (PPP) loans during the height of the pandemic. Hockridge-Reis, 42, pleaded not guilty, but a federal jury convicted her of one count of conspiracy to commit wire fraud in June this year. She was acquitted of four counts of wire fraud. Prosecutors allege the couple coached borrowers to submit fraudulent PPP loan applications and received kickbacks once the funds were secured. The former KNXV-TV anchor claimed her actions were a 'sincere effort to support small businesses' in navigating a chaotic government problem during an era of 'unprecedented need'. But a text message she reportedly sent to Reis, 47, that appears to admit guilt has re-emerged after he pleaded guilty to their crime. 'This is us trying to apply for free money — when we don't quite qualify. lol,' she texted Reis, according to a federal indictment obtained by The Arizona Republic. Stephanie Hockridge-Reis allegedly sent a text to her husband admitting that she knew they were 'trying to apply for free money — when we don't quite qualify' Reis was scheduled to stand trial this month but entered into a plea deal on Monday, court records show. He will be sentenced in November. A federal jury found Hockridge-Reis guilty of conspiracy following the end of her trial in June. The case centered on Blueacorn, the fintech firm the couple co-founded in April 2020, just weeks after Hockridge-Reis left her anchor job. Blueacorn claimed to help small businesses navigate the PPP loan process, a lifeline created by Congress to keep workers employed during the Covid crisis. In reality, investigators say the company became a fraud factory. According to a congressional subcommittee, Blueacorn processed over $12.5 billion in loans and pocketed up to $300 million for its ownership group, while spending virtually nothing on fraud prevention. While many small businesses struggled to survive during the pandemic, the Reis family were living large, filming videos with bricks of cash, flaunting Rolex watches, and vacationing on the balconies of tropical locales. The court was shown photos of her holding stacks of $100 bills in a bathtub and video captured at a luxury beachfront apartment in Puerto Rico, where the couple had relocated to avoid US capital gains tax. The jury also saw internal messages encouraging staff to 'push through' loan applications with no regard for red flags and a so-called 'VIPPP' list that allowed high-dollar clients to bypass security checks. 'Who the f*** cares,' she allegedly said in one message about improperly rejected applicants. 'We're not the first bank to decline borrowers who deserve to be funded… They can go elsewhere.' Another text cited by prosecutors reportedly described her as 'the MVP' of the operation. Hockridge-Reis, an Emmy-nominated journalist who once graced magazine covers as ' Arizona 's Favorite Newscaster', will appear in court for sentencing on October 10. She faces up to 20 years in prison for the conspiracy conviction. According to court filings, the couple submitted fraudulent PPP applications for themselves, including one claiming Reis was both African American and a military veteran - both lies. They received at least $300,000 in personal PPP funds. They also charged borrowers illegal 'success fees,' violating SBA rules, and even struck kickback deals with banks, collecting percentages of loans that were funded, prosecutors alleged. Blueacorn's practices were so brazen that Congress launched a formal investigation, revealing that while the company collected over $1 billion in taxpayer-funded processing fees, it spent only $8.6 million on fraud prevention, less than 1 percent of its intake. She spent seven years as a respected anchor for the Phoenix-based ABC affiliate and previously worked for CBS News Radio in London. Her career accolades include an Emmy nomination and features in local lifestyle publications One congressional report summarized the company's internal directive succinctly: Speed over accuracy. Some employees, with zero financial training, were reportedly processing hundreds of loans in under 30 seconds each. 'This was not about helping small businesses,' a federal official close to the investigation said. 'It was about siphoning off a national crisis for personal gain.' During the trial, federal attorneys also introduced a superseding indictment alleging that the couple fabricated payroll records, tax documents, and bank statements. In one application, Hockridge-Reis and Reis claimed to own an Amazon business generating six figures. Another loan was issued to a nonexistent company they claimed had multiple employees. The couple allegedly rerouted money through a chain of bank accounts, using interstate wires to disguise their tracks. Federal investigators say that Reis played a central role in overseeing Blueacorn's day-to-day operations and financial distributions - and helped foster the toxic culture that prioritized profit above all else. Reis plead guilty to one count of conspiracy to commit wire fraud on Monday. He is scheduled to be sentenced on November 21 and also faces a maximum penalty of 20 years in prison. The couple's case was also connected to Eric and Anthony Karnezis, two men who earlier this year pleaded guilty to PPP fraud in a related case. Eric Karnezis agreed to pay between $25 million and $65 million in restitution; Anthony agreed to repay between $3.5 million and $9.5 million. The convictions underscore what federal watchdogs have called the largest fraud wave in US history - fueled by emergency Covid aid programs and exploited by thousands of bad actors. The Paycheck Protection Program, meant to protect workers, became a cash cow for predators.
Reuters
26 minutes ago
- Reuters
Fed grappling with impact of tariffs as it ponders rate decisions, Goolsbee says
Aug 13 (Reuters) - Chicago Federal Reserve President Austan Goolsbee said on Wednesday the U.S. central bank is grappling with understanding whether tariffs will push up inflation just temporarily or more persistently, which would inform its decision on when to cut interest rates. "As we go into the fall, these are going to be some live meetings and we're going to have to figure it out," Goolsbee told the Greater Springfield Chamber of Commerce in Springfield, Illinois. "The hardest thing that a central bank ever has to do is to try to get the timing right when there are moments of transition." Goolsbee said he is uneasy assuming tariffs will be just a one-time shock to inflation and wants to see more data including wholesale price data due out this week and broader inflation data next month before coming to a view on whether a rate cut is warranted. The Fed left its benchmark overnight interest rate in the 4.25%-4.50% range at its meeting last month, a decision that drew dissents from Fed Vice Chair of Supervision Michelle Bowman and Fed Governor Christopher Waller. Bowman and Waller wanted to cut rates to head off what they worried was incipient weakness in the labor market. Two days after the end of that policy meeting, the U.S. Labor Department revised its earlier estimates of job growth in May and June sharply downward and reported a smaller-than-expected job gain in July. President Donald Trump called the data rigged and fired the commissioner in charge of producing it. Even so, allies including Treasury Secretary Scott Bessent have seized on the recent jobs report to call for rate cuts that Trump has pushed hard for all year. Some Fed officials also feel the July jobs report bolstered the case for easing policy. Goolsbee cautioned against reading too much into slowing job growth since that may reflect the sharp drop in immigration. He said he puts more weight on data like the unemployment rate, which at 4.2% is historically low. "I think the state of the labor market is pretty strong, pretty solid," Goolsbee said. Data earlier this week showed consumer prices rose 0.2% on a monthly basis in July, a downshift from the 0.3% reported for the prior month. Goolsbee said he took note of the rise in services inflation, which is not directly related to tariffs, and would be concerned if upcoming data continued to show a broadening of price pressures.
