Latest news with #AlessandraStivelman
Daily Mail
24-06-2025
- Business
- Daily Mail
Condo owners wake up to reality that homes are worthless
Florida's condo market has become a nightmare for many residents trying to sell. The Sunshine State's retirees who flocked there for affordable condos now find themselves stuck with old properties worth virtually nothing that they are desperate to escape . Pending mandatory repairs and rising HOA fees on aging towers have driven owners to list in a flooded market. In Boynton Beach for example, a two-bedroom, two-bathroom condo at Hunters Run Country Club with access to a resort-style pool and high-end amenities is selling for just $10,000. The owner paid $60,000 for it in 2001. It's now worth $3 per square-foot. On Marco Island, a one-bedroom, two-bathroom condo complete with water access at Sunrise Bay Resort is listed for $9,000. In contrast, a newer build nearby on Marco Island with an oceanfront entrance is selling for $629,000. But the rock bottom prices still won't move inventory. Buyers aren't biting. Instead, most are opting for newer builds, which come with modern storm protections, amenities and HOA fees that won't skyrocket any time soon. The dramatic shift comes after a new Florida law — passed in response to the deadly 2021 Surfside collapse that killed 98 people — imposed strict inspection and funding requirements for aging buildings. Condo associations must now conduct structural safety assessments and collect hefty reserve funds for future repairs. 'I think we are going to see a growing divide,' attorney Alessandra Stivelman of Eisinger Law tells 'New condos built to modern codes and with fully compliant reserves will thrive — while older buildings may struggle to survive and face termination, bulk sales, or redevelopment.' Now, owners are trying to dump their condos. The problem is, no one wants them. The State of Florida Property Management Association (SFPMA) reports that at Miami's Cricket Club, a 50‑year‑old tower, each of the 217 owners were hit with an extra $134,000 in assessments. Summit Towers in Hollywood, Florida, faced a $56 million assessment, or $99,000 for each of the 567 condos, which completely tanked the value of the building. Condos built over 30 years ago have seen a staggering 22 percent drop in value over the past four years, reports SFPMA. Meanwhile, new units have climbed in value 12 percent in just two years. Mortgage insurer Fannie Mae has now blacklisted more than 1,400 Florida condos due to deferred repairs or insurance lapses, which halts any attempt at a sale. Hard‑hit condo dwellers on fixed incomes and retirees see no way out. 'That's the million-dollar question – what will happen next and when,' Stivelman says. 'While this cycle of new and replacement buildings may help improve the safety and durability of Florida's condo inventory, it also raises concerns about displacement, affordability, and access for long-time residents. 'Many may not be able to absorb escalating costs or compete in a market shifting toward luxury redevelopment.' Despite the crisis, Governor DeSantis has acknowledged the 'serious problem' in the condo market, but offers no immediate bailout. DeSantis did sign a new law that kicks in July 1, that will rein in homeowners associations (HOAs) long accused of slapping residents with surprise fees and fines for petty infractions. DeSantis signed HB 1203 into law earlier this month, ushering in sweeping reforms aimed at making HOA boards more transparent and less intrusive. Under the new rules, any HOA with more than 100 homes or condos must post key documents — including budgets, covenants, and bylaws — on a publicly accessible website by January 1. Board members and property managers will also have to complete 4 to 8 hours of state-approved education each year. And homeowners must now get at least 14 days' notice, along with an agenda, before any board meeting. The changes are being welcomed by property owners who say they've been blindsided with arbitrary violations and ballooning fees with little warning or recourse. And this could be just the beginning of nitpicky HOAs. Lawmakers have signaled more limits may be on the way, in Florida and other states. But it's not enough for many retirees. As the crisis continues in Florida, the state may lose them as they didn't anticipate repair bills, high insurance rates and sagging condo values that are squeezing seniors out. More frequent natural disasters such as hurricanes and flooding have also led to more repairs and mitigation needs. As a result, the number of condos on the market has soared, and a 'mass exodus' is expected. There were 20,293 condo listings in the Palm Beach, Broward and Miami-Dade counties in the second quarter of 2024, ISG World reports. The figure is an 143 percent leap from the 8,353 in the same period 2023. Almost 90 percent of those for sale are in buildings more than 30 years old.
Daily Mail
24-06-2025
- Business
- Daily Mail
Florida condo shock as law change wipes out home values
Florida 's condo market has become a nightmare for many residents trying to sell. The Sunshine State's retirees who flocked there for affordable condos now find themselves stuck with old properties worth virtually nothing and are desperate to escape. Pending mandatory repairs and rising HOA fees on aging towers have driven owners to list in a flooded market. But buyers aren't biting. Instead, most are opting for newer builds, which come with modern storm protections, amenities and HOA fees that won't skyrocket any time soon. The dramatic shift comes after a new Florida law — passed in response to the deadly 2021 Surfside collapse — imposed strict inspection and funding requirements for aging buildings. Condo associations must now conduct structural safety assessments and collect hefty reserve funds for future repairs. 'I think we are going to see a growing divide,' attorney Alessandra Stivelman of Eisinger Law tells 'New condos built to modern codes and with fully compliant reserves will thrive — while older buildings may struggle to survive and face termination, bulk sales, or redevelopment.' Now, owners are trying to dump their condos. The problem is, no one wants them. The State of Florida Property Management Association (SFPMA) reports that at Miami's Cricket Club, a 50‑year‑old tower, owners were hit with an extra $134,000 in assessments. Summit Towers in Hollywood, FL, faced a $56 million assessment, completely taking the value of the building and its condos. Condos built over 30 years ago have seen a staggering 22 percent drop in value over the last 4 years, reports SFPMA. Meanwhile, new units have climbed in value 12 percent over the same 2 years. Fannie Mae has now blacklisted more than 1,400 Florida condos due to deferred repairs or insurance lapses, which halts any attempt at a sale. Hard‑hit condo dwellers on fixed incomes and retirees see no way out. 'That's the million-dollar question – what will happen next and when,' Stivelman says. 'While this cycle of new and replacement buildings may help improve the safety and durability of Florida's condo inventory, it also raises concerns about displacement, affordability, and access for long-time residents. 'Many may not be able to absorb escalating costs or compete in a market shifting toward luxury redevelopment.' Despite the crisis, Governor DeSantis has acknowledged the 'serious problem' in the condo market, but offers no immediate bailout. DeSantis did sign a new law that kicks in July 1, that will rein in homeowners associations (HOAs) long accused of slapping residents with surprise fees and fines for petty infractions. DeSantis signed HB 1203 into law earlier this month, ushering in sweeping reforms aimed at making HOA boards more transparent and less intrusive. Under the new rules, any HOA with more than 100 homes or condos must post key documents — including budgets, covenants, and bylaws — on a publicly accessible website by January 1. Board members and property managers will also have to complete 4 to 8 hours of state-approved education each year. And homeowners must now get at least 14 days' notice, along with an agenda, before any board meeting. The changes are being welcomed by property owners who say they've been blindsided with arbitrary violations and ballooning fees with little warning or recourse. Florida law now requires more transparency and financial responsibility from associations And this could be just the beginning of nitpicky HOAs. Lawmakers have signaled more limits may be on the way, in Florida and other states. But it's not enough for many retirees. As the crisis continues in Florida, the state may lose them as they didn't anticipate repair bills, high insurance rates and sagging condo values that are squeezing seniors out. More frequent natural disasters such as hurricanes and flooding have also led to more repairs and mitigation needs. As a result, the number of condos on the market has soared, and a 'mass exodus' is expected. There were 20,293 condo listings in the Palm Beach, Broward and Miami-Dade counties in the second quarter of 2024, ISG World reports. The figure is an 143 percent leap from the 8,353 in the same period 2023. Almost 90 percent of those for sale are in buildings more than 30 years old.
Daily Mail
18-06-2025
- Business
- Daily Mail
Florida's already fragile condo market faces devastating final blow
Florida 's already faltering condo market is about to get hit again — quite literally —with hurricane season headed the state's way. 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 '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.
