Should Florida Condo Associations Finance Special Assessments?
Lender Richard Alfonso of U.S. Century Bank explains how condo associations can finance special assessments and capital improvements in order to comply with the newly revised Florida Condo Law.
Florida condo owner and board members are facing a 2025 deadline to comply with a series of safety requirements required under the state’s newly revised condo law.
In many cases, condo associations are facing multimillion dollar construction bills to ensure that their communities meet safety standards put in place to protect residents.
Failure to comply with the law could result in residents being forced to vacate their units for months - and even years - until the their communities can satisfactorily meet the new measures of the Florida Building Code.
Keep in mind, condo owners - who were forced to vacate - are still responsible for their monthly expenses and any new special assessments. Plus, these residents have the added cost of temporary housing until their communities are habitable again.
Not every unit owner has the means to simply write a check or send a digital payment to cover the costs of the necessary construction work.
In the last few months, a series of news stories have been published locally, nationally and internationally documenting the new charges - ranging from a few thousand dollars to more than $100,000 - that condo owners are facing in Florida.
As a potential workaround, financial institutions such as U.S. Century Bank are willing to finance the necessary repairs over a period of time than can range from a few years to as much as 12 years in certain circumstances.
Richard Alfonso, the Director of Specialty Products for U.S. Century Bank, discussed the condo association financing options, costs and processes in a one-hour podcast with consultant Peter Zalewski, the founder of the Miami Condo Market Investing Club™..
During the podcast, Alfonso discussed his institution's criteria for potential borrowers, shared insights on interest rates and fees and outlined the typical timeline for the loan application process.
Alfonso also explained how banks maneuver to collect their money if - and when - condo associations default on their loans.
Watch The Interview
A transcript of the conversation between Miami Condo Expert Peter Zalewski and Richard Alfonso of U.S. Century Bank is available behind the paywall for members of the Miami Condo Market Investing Club. To join the Club, click this link.
Condo maintenance fees have always been a focal point for unit owners but nothing like the current situation.
In the aftermath of the June 24, 2021 collapse of the Champlain Towers South in the town of Surfside on the barrier island of Miami-Dade County, everyone from residents to building inspectors, politicians to bankers understand better than ever the importance of ensuring that no Florida condo building ever unintentionally collapses again.
Nearly 100 people died and a $1 billion settlement was reached with the families of the victims.
A federal investigation is currently underway but the preliminary reports suggest a flawed design coupled with a lack of upkeep by the condominium’s association contributed to the disaster.
The Florida Legislature has taken a number of steps - prompted by insurance companies threatening to withdraw coverage in the state - to ensure that nothing like this ever happens again.
Up until now, the state’s measures were being implemented slowly but that all changes in 2025 when many of the measures take effect.
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