Condo Reform Is Making Retirement Housing Unaffordable in Florida

Written by:

Steve Marcinuk

Date:

23 Dec 2025

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Florida’s post-Surfside condominium safety reforms were intended to prevent another deadly building collapse. But according to Chad Cummings, a managing attorney at Cummings & Cummings Law, specializing in real estate law, the new inspection and reserve requirements have created an affordability crisis for elderly and retired residents on fixed incomes.

“If your HOA dues were previously $200 a month, now they’re $1,000 a month,” Cummings says. “If they were $1,000 a month, maybe now they’re $3,000 or $4,000 a month. That’s a big problem for anybody. That’s an even bigger problem if you are retired or elderly and living on a fixed income or a fixed budget, and you’re relying on Social Security.”

Immediate Costs for Decades of Deferred Maintenance

The new law, which amended Chapter 718 of the Florida Statutes after the 2021 Champlain Towers collapse in Surfside, requires condominiums to adhere to far stricter inspection and reserve funding rules. The collapse, which killed 98 people, prompted legislators to eliminate the ability for condo associations to defer maintenance or keep minimal reserves. Now, buildings must set aside funds for future repairs to structural elements, HVAC, electrical, plumbing, and other major systems.

Cummings says the impact is especially severe in older coastal buildings from the 1960s to the 1980s, where decades of exposure to salt air have accelerated deterioration. “When we think about the coastline, we think about salt water, and we think about the corrosive effects of that salty air,” he notes. Many of these buildings had postponed essential repairs for years, but the new law forces immediate action.

The $200,000 Assessment—And No Good Way to Pay

The financial burden extends beyond monthly HOA dues. Some residents now face special assessments running as high as $200,000 per unit, Cummings says. “You’re stuck with a $200,000 bill, and that’s not an exaggeration,” he explains, referencing recent assessments in certain buildings.

Residents may be offered the option to pay these assessments over time or upfront, but neither is practical for retirees. Monthly payment plans still mean a dramatic increase in living expenses, while lump-sum payments require cash reserves that most elderly residents do not have.

Cummings is clear that safety reforms were needed: “I’m not saying it’s a bad law, but one of the effects is that it has dramatically increased the cost of living for people in condominiums.” While the intention was to prevent future tragedies, the result has been a sharp rise in housing costs for a vulnerable segment of the population.

Stuck Between Soaring Costs and a Slow Market

Current market conditions compound the pressure on retirees. Florida’s real estate market, which surged during and after the pandemic, has now slowed. Cummings notes there is “an oversupply of inventory in virtually every market in Florida and Texas right now, with minimal exceptions.”

This oversupply makes it harder for residents to sell their units and move to more affordable housing. Even if they find a buyer, the proceeds may not be enough to purchase a comparable property elsewhere, especially as Florida’s cost of living continues to rise.

This creates a problematic situation: retirees cannot afford to stay as HOA dues and special assessments skyrocket, but they also cannot easily leave due to slow sales and limited equity.

Developers Step In—But Solutions Are Limited

The crisis has created opportunities for developers, particularly through condominium terminations. In this process, developers purchase enough units to dissolve the condominium association, buy out remaining owners, demolish the building, and redevelop the site.

“If some developer knocks on your door and says, ‘Hey, I’m going to buy your unit for 20% above market value,’ that’s an easy solution. You take the 20%, and you leave,” Cummings says. For residents facing unaffordable repair bills, a premium buyout may be their only viable exit.

However, even this option has limits. “Can you find another place you want to live in with that, even with that 20% premium? Not always,” Cummings acknowledges. High costs across the state mean even generous buyouts may not secure comparable housing.

Unintended Consequences for Florida’s Retirees

Florida’s condominium reform law aimed to fix a critical safety issue, but has instead created a new crisis for thousands of retirees. Elderly residents, particularly those relying on fixed incomes, now face impossible choices: absorb unaffordable increases in HOA dues and special assessments, or attempt to relocate in a challenging market.

Whether lawmakers will address these unintended consequences remains uncertain. For now, many Florida retirees are grappling with financial pressures that threaten their ability to stay in the homes they once expected to keep for life.