The Hidden Costs of Florida's Condo Regulations: A Crisis for Older Residents and Economic Stability

As a veteran real estate and community association attorney with decades of experience, I’ve witnessed the transformative impact of legislation on our housing markets. Florida’s recent condominium safety regulations, born from the tragic collapse of the Champlain Towers South, are well-intentioned measures aimed at ensuring structural integrity and protecting lives. However, their unintended consequences are creating a crisis that disproportionately impacts older residents in Palm Beach County—and the ripple effects could reshape the region’s economic landscape.

The regulations mandate milestone inspections for older buildings and require full funding of reserves for critical repairs. While these measures are critical for safety, they come at a steep financial cost. For older condos, many of which were built decades ago with minimal available reserve funds, compliance often necessitates significant monthly or quarterly fee increases or hefty special assessments.

For retirees living on fixed incomes, this new financial burden is untenable. In Palm Beach County, where many condominium residents are retirees who moved here for an affordable, sunny lifestyle, these new costs have forced a wave of sales—many under duress. Owners are being priced out of their own homes, unable to cover mounting repair bills.

Economic and Community Impacts

At first glance, one might assume this turnover presents opportunities for real estate developers to revitalize older buildings or construct new ones. But the forced displacement of older residents has economic and social consequences that extend beyond individual hardship.

1. Loss of Affordable Housing: Many older condos serve as de facto affordable housing for middle-income retirees. As these properties are sold and redeveloped into high-end units to recoup costs, the county’s stock of affordable housing shrinks further, leaving few options for fixed-income residents.
2. Disruption of Community Fabric: Long-term residents contribute stability and character to communities. Their forced departure erodes the sense of community, transforming once-tight-knit neighborhoods into transient spaces dominated by seasonal or investment buyers.
3. Economic Displacement: Older residents, who support local businesses and services year-round, are being replaced by higher-income seasonal residents. While this shift may initially seem like an economic boon, the loss of steady, year-round consumers can harm small businesses and disrupt the local economy.
4. Stagnant Redevelopment: Developers face their own challenges, including navigating the complex web of zoning laws, environmental regulations, and skyrocketing construction costs. Without clear incentives, the redevelopment of aging properties may stall, leaving buildings in limbo and communities in decline.

A Balanced Path Forward

Florida must seek a balanced approach that addresses safety while considering the economic realities of its residents. Several steps may mitigate the current crisis:

• Phased Implementation: Extend compliance deadlines for older buildings, allowing associations to gradually build reserves without imposing overwhelming costs on owners.
• Financial Assistance Programs: State or local governments could provide grants, low-interest loans, or tax incentives to help associations fund necessary repairs without forcing residents out.
• Creative Redevelopment Incentives: Encourage developers to integrate a percentage of affordable or workforce housing into redevelopment projects to ensure a more inclusive housing stock.
• Educational Outreach: Boards and property managers need resources to educate residents about their options, including reverse mortgages (not currently available to condo owners)^[1], government programs, or financial planning strategies to manage new costs.

We stand at a crossroads. The safety of our buildings is non-negotiable but the economic fallout of these regulations requires immediate attention. Responsibility for addressing this issue extends beyond condo boards or governmental entities. Real estate developers, lenders, insurance companies, and local governments must collaborate to create solutions that prioritize safety, affordability, and community cohesion.

Palm Beach County has long been a beacon for retirees seeking an affordable, enriching lifestyle. Let’s ensure that the policies we implement to protect residents don’t inadvertently undermine a lifetime of hard work performed to attain retirement or their ability to stay in the place in the condo unit they have called ‘home’ for decades.

Peter S. Sachs is a founding partner of Sachs Sax Caplan P.L. in Boca Raton, Florida. He is board certified in Condominium and Planned Development Law by the Florida Bar. Visit ssclawfirm.com.

^[1] Current federal regulations do not permit condo owners to receive reverse mortgages.