News

The venerable New York Times has proclaimed the Florida condo situation a “nightmare” as owners get hit with huge fees to inspect and repair older buildings. New regulations and homeowner association requirements are shocking unsuspecting buyers, who now find their life savings caught up in red tape and demand special assessment fees.

The new regulations are the government’s response to the horrific collapse in 2021 of the Champlain Towers South condo building in Surfside, which killed 98 people.

The headline for the New York Times article sums up the result: “Why Owning (and Buying) a Florida Condo Has ‘Turned Into a Nightmare’”

It’s another horror story for the Florida market and we’ve already seen a significant uptick in Florida residents exploring Panama and the booming condo market. We’ve seen this happen many times. When turbulence (and hurricanes) strike Florida again — as they always do — a light bulb goes off and people see Panama City as the stable alternative. Panama City has a proven track record through good times and bad, providing security to investors and second-home owners. 

The New York Times article details the real tragedies of buyers who have discovered they are liable for fees they cannot afford. According to The Times’s reporting, the situation has risen to a crisis level. It’s a sad situation for many people who thought they were buying the home of their dreams.

“For the people living in [these condos] — many of them retirees or second-home owners — the dream of living in Florida has curdled into a financial nightmare,” The Times reports.

One couple interviewed by the Times is facing a $224,000 bill to help pay to renovate and repair their 36-year-old building. 

“I don’t want to end up on the street, but consequently that’s what will happen,” said the owner, who is in his 70s. “All of our money is tied up in this albatross.”

 It says something about the rollercoaster ride of Florida real estate that in 2021 only two of Florida’s 67 counties mandated that buildings 40 years and older undergo inspections and renovations to “pass what’s known as a recertification,” the Times wrote. Now all condominiums 30 years and older must undergo inspections, make critical improvements, and amass reserve funds for future repairs.