Latest news with #ChamplainTowersSouth
CBS News
13-03-2025
- Business
- CBS News
Condo owners frustrated as Florida House advances condo bill that allows boards to borrow money without consent
A new condo safety bill looks to shore up safety, but it comes at a cost. A Florida House panel has advanced legislation that allows condo boards to borrow money without member consent. CBS News Miami reviewed the bill and spoke to condo owners dealing with the fallout from state reforms since the Surfside collapse. "Assessments have been tough to handle," shared Brickell condo owner Julian Donado. Donado told CBS News Miami he never imagined paying so much to live in Brickell by the Bay when he purchased his condo in 2019. "I did the math at the time," explained Donado. "My mortgage was actually going to be cheaper. Now, not by a long shot, a lot more expensive." And now, a new financial cliff could await him and others. House Bill 913, approved unanimously by a panel Tuesday in Tallahassee, allows condo boards to get loans without the approval of their wider association membership. The bill specifies that boards can "levy special assessments to obtain a loan for necessary maintenance, repair... as required by the milestone inspection report" and structural reserve requirements. It allows associations a new path to meet state mandates put in place after the Champlain Towers South collapsed in 2021. A recent study by the Miami Association of Realtors found that only 44% of condo buildings in Miami-Dade County and 41% in Broward County have completed their required reserve studies, which had to be done by the beginning of this year. Miami State Rep. Vicki Lopez sponsored the bill and had this to say on Tuesday. "It won't be the last," shared Lopez on Tuesday. "I did not come to the Florida House to be affectionately known as the 'Condo Queen,' but I'm here, and I'm committed to doing the work." Condo owners told CBS News Miami they're trying to keep up with the changing laws and the cost that comes with it. "It's just a lot of money to keep up with all the repairs to meet the state requirements, really just trying to get ahead," said a Brickell condo owner who goes by Kurd. "I just wish that it happened a little bit sooner, probably before I bought in and I had a little bit more of an idea of what I was buying into," added Donado. CBS News Miami did ask to speak with State Rep Lopez today, and we are still waiting to hear back. Other items in the bill call for additional condo board transparency measures and insurance requirements.
Yahoo
02-03-2025
- Business
- Yahoo
Inside Florida's brewing condo crisis as property values drop in once-coveted retirement haven
A slow-motion crisis is unfolding in Florida's condo market, threatening to upend the state's image as a haven for retirees and reasonably priced beach living. Owners of the state's older condos are bracing for steep special assessments, while racing to sell their homes and receiving only tepid buyer response. Amid a property market that's still vibrant for nearly every other segment, Florida's aging condominiums are losing value. And nearly 1,400 buildings are now blacklisted from receiving mortgage financing, making those apartments an even-tougher sell. At the heart of this turmoil is a basic reality: Florida's aging condo buildings desperately need repairs, and state officials are forcing them to assess (and pay for) those long-overdue upgrades. Under a law enacted after the tragic 2021 collapse of Champlain Towers South in Surfside, which saw 98 people lose their lives, condo boards may no longer defer major structural improvements to another day — or decade. The 'Building Safety Act' required every condo tower in Florida aged 30 years or older to complete a structural integrity study by the end of 2024, to get a full grasp of what problems need fixing. This year, the tab for those repairs comes due. Condo boards must now set aside funds to fix the issues found in those studies — from concrete restoration to balcony overhauls. And the assessments on individual condo owners are looking both pricey and unsettling. 'You're going to see a massive reduction in the value of these buildings based on these giant special assessments and the work that has to be done,' said Orest Tomaselli, CEO of Strategic Inspections, which advises condo boards nationally on how to shore up their reserves. In Florida buildings he's worked with, Tomaselli has seen special assessments as low as $250 per month, to a property that levied $2,500 per month, per unit owner, for a three-year stretch. 'There are real people in these units that may be displaced,' Tomaselli said of the assessments, 'that may lose their nest egg and may lose tremendous amounts of value in their units.' At Aventura's Mediterranean Village, a waterfront condo complex with a marina out front, unit owners were hit with six-figure special assessments last year, some as high as $400,000, according to published reports. At Miami's Cricket Club, a 50-year-old waterfront tower burdened with $134,000 special assessments per condo, 23 of the building's 217 condos are currently for sale, according to brokerage Compass. In a Miami market where the median condo price was $445,000 in the fourth quarter of last year, condos at the Cricket Club are seeking buyers with prices as low as $220,000 for a 1,950-square-foot two-bedroom on the 19th floor. (The owner initially sought $330,000). Meanwhile, at Summit Towers in Hollywood, a building-wide special assessment of $56 million led to the ousting of four board members in a January election, in favor of new members who promised 'a more moderate approach' to building up reserves, said Amy Greenberg, a broker and resident of the building with several listings there. 'A lot of people moved here to be able to retire and live their life here, and they're on fixed incomes,' said Kathleen DiBona, a 50-year resident of Hollywood who serves as president of the Hollywood Beach Civic Association. 'They're having a difficult time being able to manage all that's coming and hitting them.' Many owners whom DiBona knows in Hollywood, a city dotted with older towers, are seeking to off-load units with little success. Others, she said, have dropped insurance coverage for their condos so they can manage to pay their special assessments. Failure to pay these assessments will impact more than just the individual owners who can't afford them. If 15% of unit owners in a building default, the entire property could become ineligible for mortgage financing, according to Tomaselli of Strategic Inspections. 'What happens if nobody can get a loan to buy a unit in your building?' says Joseph Hernandez, a Miami-based partner in the real estate group of law firm Bilzin Sumberg. 'It essentially makes the units in your building unsaleable and it makes the value of those units go down. 'We may see a lot of condo projects go into distress.' Some could already be getting close. In February, Fannie Mae, the national mortgage finance agency, updated its running list of 'unavailable' US condo buildings, meaning they are no longer eligible for mortgage financing. Of the 4,885 buildings currently on the list, 29% are located in Florida, the highest share of any state. The top reason: 'critical repairs or deferred maintenance,' according to a person familiar with the roster. One newly flagged example is 4000 Island Blvd., a 32-story condominium in Aventura's exclusive Williams Island, which was built in 1985 and added to Fannie Mae's no-lending list in January. At least 24 unit owners are trying to sell, according to Compass. Barry Sytner, the condo board's president, called the building's inclusion on Fannie Mae's list 'incorrect,' noting that the property just secured a bank loan commitment to cover expenses tied to its 40-year inspection. There are roughly 1.1 million condo units in Florida that are 30 years old or more, and subject to the new law, according to the Florida Policy Project. Of those, 58% are concentrated along the Southwest and Southeast coastal counties, in places like Tampa, Clearwater and the greater Miami metro area, including Fort Lauderdale and Palm Beach County. That means the law's reach extends to more than half of all condo owners in Florida's famed retirement enclaves. According to brokerage ISG World, apartments that are over 30 years old accounted for 86% of all Southeast Florida condo listings in the fourth quarter of 2024 — a total of 17,198 properties for sale across Miami-Dade, Broward and Palm Beach counties. Yet even as thousands of newcomers flock to the region, these abundant and discounted units are languishing on the market, weighed down by the threat of special assessments and uncertainty over looming repair costs. 'The fear of the unknown is scaring the hell out of potential buyers,' said Craig Studnicky, ISG's chief executive officer. 'Remember that show, 'Let's Make a Deal?' ' Studnicky said. 'They may get a special assessment and it could be quite modest, which means you just made one hell of a deal. But what if you're wrong, and the special assessment is gargantuan? Not only is the special assessment big, but the scope of construction is big, and you're going to be living in a construction site for the next two years.' The full extent of special assessments is still an open question for many Florida properties. While the state deadline for condos to submit their structural integrity studies was on Dec. 31, only 39% of buildings in Southeast Florida have done so, according to the Miami Association of Realtors. Some of that's because engineers were simply not available, amid a statewide rush to get these studies completed. Others could be gambling that enforcement won't be robust or swift, said Peter Zalewski, a Miami-based broker, analyst and condo investment consultant. 'You have buildings that are shopping for studies, because maybe they're coming in too high, and maybe they can find someone who can lowball it,' Zalewski said. 'People are figuring out what to do,' Zalewski added. 'They think there will be a silver bullet, some kind of cure in the upcoming Florida legislative session' amid outcry from condo owners The state legislature, which convenes its 2025 session March 4, has no plans to bail out condos or offer reprieve from the deadlines to fund repairs, Florida legislative leaders said at a condo conference last month held by Miami Realtors, according to Lawmakers, however, might consider financing solutions to help condos cover the cost of structural studies and maintenance, including allowing reserve funds they set aside to be invested. Despite some maintenance challenges, Florida's older condos still reflect the only affordable opportunity at homeownership for those who can't swing the price tags of Miami's new crop of ultra-luxury developments, says Scott Diffenderfer, a Miami-Beach-based broker for Compass who specializes in sales of older units. He says he's pretty upfront with potential buyers these days about the scope and costs of repair that some of his listings will undergo. Brokers view the new regulations and mandatory repairs as a necessary correction to Florida's once-lax condo standards, Diffenderfer explained. Previously, buyers had little insight into a building's true condition — much like purchasing a used car without a Carfax report. Now, with stricter enforcement requiring proper reserves and full disclosure of maintenance history, brokers say the condo market could become more transparent and ultimately unlock greater value for owners. 'For probably 75% of the buildings in South Florida, when the dust settles, people are going to say, 'You know what? That was painful. But look at these buildings!' ' Studnicky said. 'They're in great shape.' Oshrat Carmiel is the publisher of Highest & Best, a newsletter on South Florida real estate and wealth migration, and a former real estate reporter for Bloomberg News.
CBS News
29-01-2025
- Business
- CBS News
Luxury condo planned for site of Surfside collapse
A Dubai-based developer plans to build a 12-story luxury condominium project on the South Florida site where a building collapsed in 2021, killing 98 people. DAMAC International said Tuesday that it planned to build The Delmore on the site where the Champlain Towers South partially collapsed in Surfside in June 2021. Construction has already started and the project is expected to be finished in 2029, the company said in a news release. The building with staggered floors designed by Zaha Hadid Architects will have 37 "mansions" with units averaging 7,000 square feet. The price of a four-or-five-bedroom unit will start at $15 million, and the project will include a private restaurant, residential butlers, a wellness spa and other resort-style amenities, according to the company. "We have been focused on delivering an ultra-luxury product to the South Florida market that is unlike anything the area has seen previously," Jeffery Rossely, senior vice president of development for DAMAC International, said in the statement. The news release makes no mention of the tragedy. Surfside tragedy In June 2021, the 12-story, 136-unit oceanfront condo building came down with a thunderous roar, leaving a giant pile of rubble and claiming 98 lives — one of the deadliest structure collapses in U.S. history. Only two teenagers and a woman survived the collapse, while others escaped from the portion of the building that initially stood. A judge in 2023 approved a settlement topping $1 billion for victims of the Champlain Towers South collapse. The money comes from 37 different sources, including insurance companies, engineering firms and a luxury condominium whose recent construction next door is suspected of contributing to structural damage. None of the parties admitted any wrongdoing. The cause of the collapse remains under investigation by the National Institute of Standards and Technology. National Institute of Standards and Technology investigators told an advisory panel that tests show that some of the steel-reinforced concrete columns at Champlain Towers South were half the strength they should have been and were not up to construction standards in 1980 when the 12-story tower was built. The steel in some columns had become moderately to extremely corroded, weakening them further. Investigators have also confirmed eyewitness reports that the pool deck fell into the garage four to seven minutes before the beachside tower collapsed. Champlain Towers South had a long history of maintenance problems, and shoddy construction techniques were used in the early 1980s. Other possible factors include sea level rise caused by climate change and damage caused by saltwater intrusion. After the collapse, Florida Gov. Ron DeSantis signed into law new regulations requiring condo associations for buildings with three or more stories to file an inspection report focused on structure, maintenance and expected costs for repairs or renovations. The regulations require associations to have sufficient reserves to cover major repairs and to survey reserves every decade. Because of the law, older condos — found largely in South Florida, according to state records — face hefty increases to association payments to fund the reserves and repair costs.
Associated Press
29-01-2025
- Business
- Associated Press
A South Florida luxury condo project is planned for site where building collapse killed 98 people
SURFSIDE, Fla. (AP) — A Dubai-based developer plans to build a 12-story luxury condominium project on the South Florida site where a building collapsed in 2021, killing 98 people. DAMAC International said Tuesday that it planned to build The Delmore on the site where the Champlain Towers South partially collapsed in Surfside, Florida, outside Miami in June 2021. Construction has already started and the project is expected to be finished in 2029, the company said in a news release. The building with staggered floors designed by Zaha Hadid Architects will have 37 'mansions' with units averaging 7,000 square feet. The price of a four-or-five-bedroom unit will start at $15 million, and the project will include a private restaurant, residential butlers, a wellness spa and other resort-style amenities, according to the company. 'We have been focused on delivering an ultra-luxury product to the South Florida market that is unlike anything the area has seen previously,' Jeffery Rossely, senior vice president of development for DAMAC International, said in the statement. The news release makes no mention of the tragedy. What happened In June 2021, the 12-story, 136-unit oceanfront condo building came down with a thunderous roar, leaving a giant pile of rubble and claiming 98 lives — one of the deadliest structure collapses in U.S. history. Only two teenagers and a woman survived the collapse, while others escaped from the portion of the building that initially stood. A judge in 2023 approved a settlement topping $1 billion for victims of the Champlain Towers South collapse. The money comes from 37 different sources, including insurance companies, engineering firms and a luxury condominium whose recent construction next door is suspected of contributing to structural damage. None of the parties admitted any wrongdoing. The cause of the collapse remains under investigation by the National Institute of Standards and Technology. The investigation National Institute of Standards and Technology investigators told an advisory panel that tests show that some of the steel-reinforced concrete columns at Champlain Towers South were half the strength they should have been and were not up to construction standards in 1980 when the 12-story tower was built. The steel in some columns had become moderately to extremely corroded, weakening them further. Investigators have also confirmed eyewitness reports that the pool deck fell into the garage four to seven minutes before the beachside tower collapsed. Champlain Towers South had a long history of maintenance problems, and shoddy construction techniques were used in the early 1980s. Other possible factors include sea level rise caused by climate change and damage caused by saltwater intrusion. Legislation After the collapse, Florida Gov. Ron DeSantis signed into law new regulations requiring condo associations for buildings with three or more stories to file an inspection report focused on structure, maintenance and expected costs for repairs or renovations. The regulations require associations to have sufficient reserves to cover major repairs and to survey reserves every decade. Because of the law, older condos — found largely in South Florida, according to state records — face hefty increases to association payments to fund the reserves and repair costs.
