December 7th, 2024

The Honorable Ron DeSantis
Governor of the State of Florida
Office of the Governor, The Capitol
400 S. Monroe St. 
Tallahassee, FL 32399-0001  

Senator Ben Albritton
President of the Florida Senate
404 South Monroe Street, Suite 409 

Senator Jason Brodeur
President Pro Tempore of the Florida Senate
404 South Monroe Street, Suite 318 

Senator Jim Boyd
Majority Leader of the Florida Senate
404 South Monroe Street, Suite 326

Senator Jason W. B. Pizzo
Minority Leader of the Florida Senate
404 South Monroe Street, Suite 214

Dear Governor Ron DeSantis, Senator Ben Albritton, Senator jason Brodeur, Senator Jim Boyd, and Senator Jason Pizzo,

We write to you as concerned Floridian citizens regarding the devastating impact of Senate Bill 4-D (SB 4-D) on condominium owners across the state. While the tragic collapse of the Champlain Towers South highlighted safety issues, the broad implementation of SB 4-D overlooks the financial realities of many Floridians, placing countless homeowners at risk of losing their homes.

This well-intentioned legislation disproportionately affects first-time homeowners, retirees on fixed incomes, and long-term residents who now face assessments exceeding $150,000—often more than half the value of their homes—driving many into financial despair and bankruptcy through no fault of their own.

Key Issues with SB 4-D:

1. Unfair Burden on New Owners and Associations:

The mandate for fully funded structural reserves imposes undue financial strain on new condominium owners and associations who were not responsible for historical underfunding or deferred maintenance. It is inequitable to compel these individuals to bear the entire cost of rectifying issues resulting from prior mismanagement. Moreover, the government shares responsibility for this shortfall, as it previously did not enforce stringent reserve funding requirements or inspections to ensure structural integrity. Subsidizing the transition to compliance would acknowledge this shared responsibility and distribute the burden more equitably.

2. Unsustainable HOA Fee Increases:

Homeowners are experiencing HOA fee increases exceeding 120%, exacerbated by unchecked insurance premium hikes. Mandatory assessments further strain finances, making homeownership unsustainable for many.

3. Faulty SIRS Assessments Due to Resource Shortages:

A shortage of qualified engineers, inspectors, and assessment companies has led to rushed and often flawed Structural Integrity Reserve Study (SIRS) assessments. Inaccuracies and unnecessary requirements place undue financial burdens on homeowners. More time is needed to ensure these assessments are conducted thoroughly and justly.

4. Economic Fallout and Market Destabilization:

The financial strain on homeowners is causing property values to decline, leading to mass selloffs and an exodus of tax-paying residents. This destabilizes Florida’s housing market and erodes the middle class. The financial pressures from SB 4-D could destabilize Florida’s condominium market, with many associations facing insolvency as they attempt to meet new requirements. This could lead to a widespread condo market collapse, resulting in devalued properties, reduced tax revenues, and significant disruption to local economies reliant on real estate transactions. Additionally, the financial uncertainty surrounding condominiums may deter prospective residents, undermining Florida’s competitive edge as a desirable destination and threatening the state’s long-term growth.

5. Financial Inequities:

Florida State departments spend tens of millions of dollars annually on support programs for a myriad of groups including the homeless, yet hardworking, taxpaying condo owners face financial ruin due to SB 4-D’s extreme measures. This law’s one-size-fits-all approach overreacts to a single tragedy and unfairly punishes responsible citizens.

6. Economic Impossibility for Residents:

With a median household income of $72,200, many Floridians cannot afford doubled HOA fees, six-figure assessments, and rising living costs. Expecting residents to shoulder this burden is unrealistic and punitive.

7. Litigation Overload in Florida Courts:

The financial strain caused by SB 4-D is likely to result in a surge of litigation, inundating Florida’s courts and delaying resolutions. Proactively addressing these issues through subsidies can alleviate this burden on the judicial system and foster greater cooperation between stakeholders.

Call to Action:

Providing government support to assist associations with compliance costs would demonstrate a commitment to fairness, economic stability, and the well-being of Florida residents. As such, we urgently request the following actions:

1. Allocate Additional Time for Comprehensive Assessments: Extend deadlines to ensure thorough and accurate evaluations, preventing errors and deterring price gouging.

2. Provide Financial Relief through Subsidies and Tax Abatements: Implement state-funded subsidies and property tax abatements to cover a significant portion of mandated assessments, thereby preventing financial ruin for responsible, hardworking residents.

3. Establish Oversight Mechanisms: Implement stringent checks on engineers, architects, and contractors to prevent conflicts of interest and ensure repair mandates are legitimate and necessary.

4. Offer 0% Interest Loans for Unsubsidized Amounts: Provide interest-free loans to cover any remaining assessment costs not addressed by subsidies, assisting condo owners in managing their financial obligations.

5. Extend Timelines for Funding Structural Reserves: Allow more reasonable timeframes for associations to fund structural reserves, enabling compliance without imposing immediate financial hardships on owners.

Governor DeSantis, during the 2008 financial crisis, the federal government allocated approximately $500 billion to stabilize financial institutions. Similarly, during the COVID-19 pandemic, airlines received substantial support, with over $50 billion awarded through programs such as the Payroll Support Program. It would be a profound injustice if similar efforts were not extended to safeguard your own Florida citizens facing financial ruin due to SB 4-D. As a sponsor of SB 4-D, it is clear your administration has taken decisive action to address structural safety. However — it is not enough to enact laws; ensuring their sustainable implementation is equally vital.

Florida needs solutions that protect its residents, not push them toward financial ruin. We, the undersigned, urge you to act decisively to address the unintended consequences of SB 4-D.

Sincerely,

Condo Owners of the State of Florida