Learn how new reserve requirements are raising condo dues for owners
WESH 2 News recently spoke with John Cadden about the financial challenges condo owners in Daytona Beach Shores face after hurricanes Ian and Nicole. Like those at Castaways Beach Resort, many residents are still recovering from millions of dollars in damage, including new roofs and seawalls. Some homeowners were hit with a $20,000 special assessment fee to cover these costs, causing a wave of unit sales.
The new state law adds to the challenge, requiring condos over three stories high, and 30 years or older, to complete a structural integrity reserve study by December 31st, which determines the necessary reserves for long-term maintenance. This mandate has increased association dues, placing further financial strain on owners.
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“Communities that have no reserve money, have not done repairs, and basically have done everything using the lowest cost method they can are now faced with huge increases to cover those costs,” explained Cadden. He highlighted that, in the past, condo associations could vote to waive reserve requirements, which many did to save money. “And of course, when people are asked to spend less money, they always agreed,” he added.
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Why are condominium reserves essential?
Due to these increased fees, many homeowners are now facing heavy additional costs ranging from hundreds to thousands of dollars, “There’s more units on the market year over year now, almost twice as many,” said Cadden, indicating the financial pressure is causing a significant shift in the local real estate market.
Read the WESH 2 News article here
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