Is this new Florida law giving anyone pause over buying in Florida due to possible big increases in fees?
Would it likely be a one-time hit or annual impact to overall fees?
Structural Reserve Funding Requirement
This law was actually passed back in May of 2022, exactly four months before Hurricane Ian whacked part of SW Florida. I claim no expertise on this law, but do own weeks at several impacted FL timeshare properties at or over 3 stories in height and therefore subject to the “4D“ requirements, so I have some limited first hand experience regarding its’ application.
My (and my Board and Board attorneys) understanding is that a structural engineer must be “engaged” before 12/31/23, with the actual engineering assessment having to be completed by 12/31/24. Absent discovery of any structural problems, projected costs for this process (to be repeated only once every 10 years thereafter) don’t seem to be prohibitive in the opinion of the Boards and (two different) management companies of our two respective resorts.
That said, the more immediate (and permanent) “killer” as far as FL owner fees go is the fact that insurance costs (at least for coastal SW FL) have literally TRIPLED in just the past two years or so. At our small, independent resorts, we‘re talking about INCREASES of well over $350k per year. Unlike “4D” compliance costs, this hit will occur each and every year and, it may be safely assumed, will also see annual increases to boot. Certainly a factor to consider for prospective FL buyers, as well as those entirely reasonable (and only periodic) “4D” requirements.
