Florida’s condo market is facing a serious crunch: According to a recent New York Post article, nearly 1,400 Florida condos were added to Fannie Mae’s “unavailable” list, effectively cutting these buildings off from conventional mortgage financing. This development follows the proposed HB 913 (also known as Condo Law 4.0), which was recently introduced by State Representative Vicki Lopez. The proposed legislation - as currently drafted - would eliminate Citizens insurance for condo associations that fail safety rules, according to a recent article in The Real Deal.
The Real Impact on Condo Owners
Under Florida’s updated safety regulations, older condo buildings must complete structural inspections and fund any necessary repairs. The result? Many associations are being forced to levy steep special assessments on residents — some in the six-figure range. These unexpected fees can dramatically reduce property values in the short term.
According to Joseph Hernandez, a Miami-based partner in the real estate group of Bilzin Sumberg, “What happens if nobody can get a loan to buy a unit in your building? It essentially makes the units unsaleable and their value goes down.”
The Blacklist Is Growing
Fannie Mae regularly updates its “unavailable” building roster. In February, nearly
1,400 condos in Florida were added to the list — and that number is likely to climb given the number of aging condos in the state of Florida. If your building has serious deferred maintenance or a high percentage of owners defaulting on special assessments, expect financing options to dry up.
Stay Ahead of the Curve
In my view, the stakes will only get higher for condos failing to become compliant. Financing will become more difficult for condos that neglect Florida’s new compliance standards.
To avoid landing on the blacklist, associations must act now. That means completing mandated inspections, making critical repairs, and ensuring a healthy reserve fund.
Get Skybridge Compliance™ Certified
At Skybridge Tech Solutions, our My Condo Compliance platform simplifies the entire process. We walk boards through the necessary steps — from initial inspections to final reports — helping to ensure compliance at every level, every year. Each year, you’ll earn our Skybridge Compliance™ certification, which you can post on your website and share with banks and lenders to demonstrate your condo’s commitment to meeting the new safety requirements.
For more information or to book a demo for My Condo Compliance, visit: https://www.skybridgetechsolutions.com/book-a-demo.
Authored by Laura Galeano, CEO of Skybridge Tech Solutions Disclaimer: This blog post is intended to provide general information and does not constitute legal advice. It is recommended to consult with an attorney for advice regarding specific situations.