A new report says many Florida condo owners could be pushed into financial ruin as HOA fees soar to cover insurance costs and mandated building upgrades.
The Florida Policy Project paints a dire future for older condos in the state that according to new state laws may require major updates.
There are about 73 condo owners in the Fort Myers neighborhood of Stratford Place, a 55 and up community. All of them have seen their HOA rates increase, and in many cases, become unaffordable. Those who live in three-story or higher units are among those suffering the most.
Renea Nedierman lives there and is on a fixed income.
“It's food or condo fee you know,” Neiderman said.
She just purchased a condo at Stratford Place after shopping for years.
“The one thing we noticed over time is how the condo fees have escalated. They're really pricey right now,” Neiderman said.
So pricey that condos are having a tough time selling statewide.
Vicky Berry also lives in the neighborhood and said a neighbor with a unit next to hers has been for sale since last March.
“They've had several open houses, but it has been defunct,” Berry noted.
Cathy Michiels has lived here since 2018 and said that her HOA fees have nearly doubled in that time.
A new state law requires older condos like hers that are three stories or higher to make needed repairs-- those costs along with rising insurance for the properties causing HOA fees to skyrocket.
“You can't afford to pay the fees. It's more than mortgage. So what's the end,” Michiels questioned.
Her HOA fees have become like a second mortgage.
A new report from the Florida Policy Project shows Collier and Charlotte counties with some of the highest numbers of condos on the market.
Realtor Sue Christiano with Engle and Volkers said the flipping market, which was so popular has come to an end in for Florida condos.
Christiano points out that impacts from Hurricane Ian caused costly assessments passed onto condo owners.
“What is frightening and what people are afraid of and what I'm hearing across the board is astronomical assessments. I have to tell you yes. We're all suffering from shell shock from Ian,” Christiano said.
However, she points out there are some good deals on the condo market now and offers this advice for anyone looking to buy.
“Do your homework. If you're working with an agent have that agent help you. They should be looking at the budget, the reserves, the y should be looking at maintenance,” Christiano noted.
However current condo owners are looking to state lawmakers for relief.
“The problem is being on a fixed income…my income doesn't go up… I don't earn anything but my money keeps going out,” Berry said.
Many condo owners say they're paying close attention to the upcoming legislative session. They're hoping the governor and lawmakers do something to help.