Florida Real Estate Bombshell Could End Up ‘Bankrupting’ Many Floridians, Say Market Experts

ABOVE VIDEO: Florida’s condo reserves law will ‘end up bankrupting a lot of people’: Joe Pinion

(FOX NEWS) – Last May, Florida Gov. Ron DeSantis passed legislation mandating emergency reserve funds for condominiums statewide after the tragic collapse of the 12-story Champlain Towers South in Surfside.

While lawmakers hope the condo law overhaul will protect residents from similar events, some market experts have warned that the mandatory reserves could destroy Floridians’ wallets.

“These costs, they get passed on to the consumer in one way or another,” Pinion Enterprises founder and CEO Joe Pinion said on “Mornings with Maria” Monday. “Here comes the budget buster: this stipulation [was] put in place by Gov. DeSantis to secure lives, but it’s going to end up bankrupting a lot of people that didn’t see this 50% hit coming.”

Florida’s Senate Bill SB 4-D includes requirements for preventative maintenance and construction inspections on buildings three stories or higher, and for condo associations to collect and maintain structural integrity reserve studies and funds.

Associations are required to perform a reserve cost analysis every 10 years for repair costs that meet or exceed $10,000. Associations must then mail their structural integrity studies to condo owners, who will contribute to the reserve together through an association-approved payment plan.

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