New Florida Condo Bill: What Condo Owners and Buyers Need to Know

In 2021, the collapse of Champlain Towers South in Surfside, Florida marked a turning point for condominium safety regulations throughout the state. This catastrophic event brought to light the lapses in building maintenance and oversight. In response to this tragedy, Florida enacted the Building Safety Law (SB4D) in May 2022. Florida SB4D was designed to ensure condominiums and cooperative buildings with three or more stories were structurally sound.

While this new Florida Condo Bill is critical for safety, it is bringing many challenges to condo owners as well as potential buyers of condo units. With the compliance deadline of December 31, 2024, condo owners and buyers are looking for ways to navigate their new reality. Let’s take a look at what this deadline means for owners, buyers and what they can do if they need help with solutions.

What Does the Building Safety Law Mean for Condo Owners

This Florida law mandating condo inspections introduces new safety mandates requiring structural inspections for buildings 25 years or older (30 years if the building is located inland.) The milestone Florida inspection statute requires inspections to be performed by licensed engineers or architects and they determine the overall condition of critical structural elements. Roofs, foundations, and load-bearing walls are among the critical elements inspected.

SB4D requires condo associations to conduct reserve studies to determine the costs of maintaining these components. All condo associations must have a fully funded reserve by December 31, 2024 for any structural repairs.

This has many condo owners facing increased financial obligations, with many not knowing what to do or how to handle the increased obligation. According to recent data, this law will affect more than 900,000 of the over 1.5 million condo owners across Florida.

The Financial Blow to Condo Owners

The financial landscape of condo ownership in Florida has dramatically changed due to the requirements of Florida’s Building Safety Law. Owners are feeling the pressure of the special assessments, increased maintenance fees, and rising property insurance premiums. A recent AP News Report shows that some buildings have been levied special assessments ranging from $20,000 to $100,000 per unit.

Here are a couple of real-life examples of the financial burden being placed on condo owners in Florida.

Owners at a Miami Beach tower are facing $65,000 – $100,000 bills per unit for repairs.
Assessments at a Brickell high-rise range from $40,000 to $70,000 per unit.

When faced with these large dollar amounts, condo owners are often forced to consider two main financial options; financing these expenses or selling their units. Unfortunately, many traditional lenders refuse to work with condos in buildings that are flagged as “nonwarranted” or “nonwarrantable” because of inspection findings or underfunded reserves.

Want to learn more about how we can help guide you through these challenges?

Florida Condo Owners Getting the Financial Help They Need

While the financial challenges that Florida’s condo owners are facing may seem hopeless, DAK Mortgage specializes in navigating these challenges and can offer solutions to those looking for help.

Why Choose DAK Mortgage?

Exclusive Lender Partnerships – We have access to a wide range of lenders with the risk appetite to finance nonwarrantable condos that traditional lenders typically avoid.
Tailored Mortgage Solutions – DAK Mortgage has the experience to guide you through refinancing, selling, or purchasing nonwarrantable units. We work with those in complex ownership scenarios, foreign investors, and everyone in between.
Proven Track Record – DAK Mortgage has a history of helping condo owners and buyers overcome these challenging financial scenarios they come up against. Here are just a few examples:
- Super Jumbo Loan for a St. Regis Condo: Our client was under contract to purchase a new construction condominium at St. Regis for $8.2M and needed the highest loan amount possible. We secured a $6,146,900 loan at 75% LTV, a level of financing most banks cannot offer for super jumbo loans, especially for nonwarrantable properties.
- Jumbo Loan for a Brickell Luxury Condo: A client looking to purchase a luxury condo in the Reach and Rise project faced denial due to an ongoing divorce and tax returns spanning over 1,300 pages. Despite these challenges, we worked with an alternative lender to secure a $2,295,000 jumbo loan, enabling the client to complete the purchase.
- Non-Warrantable Condo Loan for an Argentinian Green Card Holder: When another lender denied a client financing for a new construction condo project with less than 50% occupancy, we stepped in. By working with a lender willing to make exceptions, we successfully closed a $2,020,000 loan, ensuring the client could secure their new property.
- More Success Stories – Read more of our Success Stories.

Whether you’re financing the cost of maintaining your condo to code, or buying a condo, we will help.

Your Next Steps

If you are a Florida condo owner, there are important things you can do now to prepare for what’s ahead.

Stay Informed – Be sure you are up to date on your building’s inspection schedule and the reserve funding plan.
Explore Your Options – Research your options now so that you are prepared for the possibility of assessments.
Plan for the Future – It’s critical to partner with experts who understand the Florida condo market regardless if you decide to stay, sell, or buy.

If you are currently a Florida condo owner, or interested in buying a condo in Florida, facing the financial realities of the Florida SB4D Building Safety Law can seem overwhelming. Having DAK Mortgage on your side to help guide you through these challenges will alleviate some of the stress. Contact us today to discuss your individual situation; even if the bank has denied your loan, we will work to secure your loan. When you partner with us, you would be navigating the Florida building safety act with confidence. Read more about the financial impact of these regulations of SB4D.