Latest news with #StructuralIntegrityReserveStudy
Miami Herald
21-07-2025
- Business
- Miami Herald
Owning a condo has become harder after Surfside. Here's what to know before you buy
The latest reports about Miami-Dade County's condominium values show that a once hot market has now become more favorable to buyers. Overall, condo values dropped 1% as 2025 began compared to a 9% growth the previous year, the Herald reported in July. Steeper drops were seen in cities closer to the coast such as Aventura and Miami Beach while some communities still saw prices rise. But buying a condo — especially one that's decades old — feels like a risky proposition after the state imposed stricter maintenance and financial reserve requirements in response to the 2021 Surfside building collapse. The new safeguards are critical. The Champlain Towers South condo that fell in the middle of the night, killing 98 people, is a tragedy that must never happen again. The increased maintenance costs associated with the new laws have resulted in a softening condo also leaves prospective buyers in a tough spot, as they consider both safety and finances, wondering: Will I be hit with large special assessments and higher associations fees after I move in? These are important considerations given that Miami-Dade's condo inventory skews older. Of the 315,600 condo units in the county, 48% of them are at least 30 years old, according to a 2024 report compiled with data from the Florida Division of Condominiums, Timeshares and Mobile Homes. That 30-year mark is important because that's when the new laws require so-called milestone structural inspections to make sure buildings are safe, inspections that also are needed every 10 years thereafter. Ryan Poliakoff, a condo association lawyer, told the Herald Editorial Board that he hasn't seen restoration projects in older buildings that cost less than $5 million total. For an individual condo unit owner, that could mean a sudden bill for thousands in maintenance costs in the form of a special assessment. The Legislature this year gave associations more flexibility in meeting the new state requirements. But the long-term commitment of living in a condo still is more complex than before Surfside. That doesn't mean buying a condo is a bad idea, especially with prices dropping and expected to drop further, according to condo analyst Peter Zalewski. Still, here are some things you need to know first: Know before you sign: This is important if you're buying a 'vintage' condo — that's what Zalewski calls units that are at least 30 years old: First, the condo association must have completed the 30-year milestone inspection, if applicable, as well as a 'Structural Integrity Reserve Study' signed by an engineer, which is required by law every 10 years to determine the necessary reserve funds for future repairs and replacements. If this hasn't happened yet, then you'll be 'rolling the dice,' Zalewski said, as you can expect special assessments in the future. Or, you 'really need to negotiate' the selling price to make up for future expenses, he said. One thing to know about special assessments: If a building has 'gotten hit with a special assessment, understand that is the first special assessment. There are going to be additional ones,' Zalewski told Community News in to ask: Poliakoff said buyers should ask for the condo association's budget (check to see if reserves have been kept, which is now required under the law); the building's maintenance history and the last time it underwent concrete restoration; and whether there are any planned special assessments or discussions about it. The seller might not disclose an assessment that hasn't been approved, so it's important to 'ask around' if you Ask for an 'estoppel letter,' which must include an itemized list of all special assessments and other money owed by the to look for: Poliakoff advises walking around the building. Not every structural problem is visible to the naked eye, but look for signs of concrete spalling, which happens when reinforced steel rods known as rebar in a building's support beams rust and expand, a common consequence water intrusion. That visible results may be chunks of concrete missing from external walls, he the building has a garage: Check to see if there are formations hanging from the ceilings like a cave's stalactites, which can signal water intrusion, Poliakoff said. Pay closer attention to garages that are located underneath a pool, as was the case with the Surfside building, because they are especially vulnerable to water intrusion. These are just general tips and each purchase will require personalized professional advice. But the message is: Do your homework before you buy and understand the financial risks of condo living post Surfside. Click here to send the letter.
Yahoo
03-05-2025
- Business
- Yahoo
Financial Advisor: Wealthy Americans Are Flocking To Florida, but They Shouldn't Be
Many of the richest people in American have relocated to Florida, known for its lack of income taxes. Among the billionaire residents of the Sunshine State are Amazon founder Jeff Bezos and Ken Griffin, the financier behind the Citadel hedge fund. Learn More: Read Next: However, relocating for the tax savings doesn't always pay off for the super wealthy. GOBankingRates spoke with Henry Silva, wealth management advisor at Apollon Wealth Management, about why the ultra-rich should think twice before uprooting their lives and moving to Florida. Although Silva himself lives in Miami, he noted that moving to Florida won't be the right choice for everyone. 'For high-net-worth families, Florida's no state income tax alone shouldn't be the deciding factor when considering a major relocation,' he said. 'The financial picture here is far more complex than a single tax line item.' For one, there are certain necessities high-net-worth individuals will likely pay more for in Florida. 'Home insurance premiums have skyrocketed,' Silva said. 'Whether it's clients, friends or family, nearly everyone I know has faced a significant increase in their premiums, sometimes unexpectedly. And it's not just in Miami — this is impacting properties across the state. 'Add to that the cost of property taxes, flood zone assessments and limited public school options depending on the area, and suddenly, the move doesn't feel quite as tax-efficient,' he said. Silva believes that the move 'has to make sense beyond taxes.' 'It should align with your lifestyle and long-term vision,' he said. 'Without that, you're just chasing trends, and trends can be expensive.' Find Out: It's not just costly home insurance and property taxes that potential Florida homebuyers need to be aware of. 'One of the biggest surprises, especially for folks looking to buy near the beach or in older high-rise condominiums, is the Structural Integrity Reserve Study (SIRS) requirement,' Silva said. 'After the tragic Champlain Towers collapse, Florida has cracked down on how condos maintain reserves for structural repairs. Now, homeowners are suddenly being hit with massive special assessments or monthly increases to catch up.' These extra payments are often unanticipated. 'These fees vary widely, but they're often significant and can come with little warning,' Silva said. 'Without a well-informed team guiding you, what looks like a dream condo can quickly become a financial and emotional burden, simply because the true cost of ownership was buried in deferred maintenance.' High-net-worth Americans shouldn't assume moving to Florida is a good decision just because other people in their income bracket are doing it. 'Wealthy individuals didn't build their success by following the herd,' Silva said. 'But right now, I'm seeing a lot of families make emotional or reactive decisions — whether it's relocating for a tax break, buying in trendy ZIP codes or moving assets based on headlines.' The best financial decision for you is always the one that makes sense for your individual circumstances. 'What I remind my clients is this — just because a move is popular doesn't mean it's right for you,' Silva said. 'You need a personal strategy, not a crowd mentality. A move like this is more than a tax decision — it impacts your estate plan, asset protection, real estate exposure, cost of living and even how your legacy plays out.' Before making any big moves, Silva recommended seeking the advice of a professional. 'That's exactly where a skilled wealth advisor makes a difference,' he said. 'We help families go beyond surface-level planning and build a strategy designed around their life, values and long-term goals.' More From GOBankingRates 5 Types of Vehicles Retirees Should Stay Away From Buying How Far $750K Plus Social Security Goes in Retirement in Every US Region 4 Things You Should Do if You Want To Retire Early 12 SUVs With the Most Reliable Engines Sources Henry Silva, Apollon Wealth Management This article originally appeared on Financial Advisor: Wealthy Americans Are Flocking To Florida, but They Shouldn't Be Sign in to access your portfolio
Yahoo
10-03-2025
- Business
- Yahoo
Florida Condos in Jeopardy of Having Insurance Yanked Under Proposed Law if Buildings Don't Meet Requirements
Thousands of Florida condominium owners could be at risk of their building losing their state-backed property insurance coverage. A proposed bill aims at cracking down on condo associations that fail to comply with new safety requirements. Rep. Vicki Lopez, a Republican, has introduced a bill that would bar Citizens Property Insurance Corp., Florida's insurance of last resort, from issuing or renewing policies to condo associations that have not completed a Structural Integrity Reserve Study. Under a building safety law passed on the heels of the deadly 2021 collapse of the Champlain Towers South condo in the upscale Miami suburb of Surfside, FL, condo buildings that are at least three stories high and over 30 years old are required to undergo milestone inspections and reserve studies, and must have sufficient funds in their budget to carry out major repairs and maintenance. In total, about 90% of Florida's 1.6 million condominiums are more than 30 years old, reported the Associated Press. The deadline to complete the first reserve study was Dec. 31, 2024, but the majority of the 11,270 condo associations that fall under the requirement so far have not complied, the secretary for the Florida Department of Business and Professional Regulation told House lawmakers last month, as the Miami Herald first reported. Lopez's 99-page bill, known as HB 913, targets noncompliant condo associations by threatening them with insurance coverage termination—a move that could have an outsized impact on thousands of households throughout Southern Florida, particularly on retirees living on fixed incomes. According to a study by the Miami Association of Realtors, only 44% of condo buildings in Miami-Dade County and 41% in Broward County have completed their reserve studies to date. on Monday reached out to Lopez for comment on her bill and was waiting for a reply, but in an Instagram post last month, the GOP lawmaker said that her 'legislation addresses the need for modernized, efficient, and inclusive condo management, prioritizing safety and financial sustainability for Florida's communities.' However, concerns have been raised that Lopez's bill could deepen Florida's insurance crisis. State Sen. Ileana Garcia, Lopez's fellow Republican, told the Herald that HB 913 'threatens to significantly displace thousands of condominium owners in Florida, all in an effort to pave the way for private companies to enter the market.' Garcia went on to describe the bill as a punitive measure that offers no way for struggling condo associations to become compliant with the law. 'As a result, many Floridians could lose their insurance, compelling associations to implement steep special assessments that will hit seniors, retirees, and low-income residents the hardest,' the state senator told the outlet. Meanwhile, Peter Zalewski with a company that studies South Florida's condo market, told CBS News that there is a good chance that if the state-backed Citizens Property Insurance pulls the plug on coverage, private insurance companies will not be in a rush to step in. Those who get to keep their Citizens policies will likely face higher premiums to offset the elevated risk, according to Zalewski. Citizens currently covers 18,468 condo buildings overseen by 4,213 associations, more than half of which are located in Miami-Dade, Broward, and Palm Beach counties. It was not immediately clear how many of those condo associations insured by Citizen were noncompliant with the study requirement. Rep. Mike Caruso, a GOP ally of Gov. Ron DeSantis, has expressed fears about the potentially disastrous impact of the condo safety law adopted after the Surfside disaster, especially on senior citizens. If not amended, the strict measure could trigger the 'next wave of homeless people,' he warned earlier this year. Homebuilding Is Flatlining, but Renters Are Finding More Leverage This Surprising 'Quiet Luxury' Hot Spot Is No. 1 in the Nation for High-End Home Price Growth 'I'm Using My Thrifting Side Hustle Money To Create a Real Estate Portfolio'
