Imagine getting a letter from your homeowner’s association demanding a six-figure assessment. Imagine further that you can’t afford it.
Under HOA rules, failure to pay means foreclosure. Selling the unit isn’t an option either since disclosing the assessment will scare off potential buyers. This is the unfortunate reality for an increasing number of Florida condominium owners.
Florida’s insurance crisis, which is being worsened by extreme weather, has dominated headlines. However, a lesser-known yet equally devastating issue is emerging. Soaring insurance premiums are causing HOA fees to skyrocket, while personal insurance on individual units also becomes more expensive. Many condo owners now find themselves facing unmanageable financial burdens.
One such owner, 79-year-old Howard Konetz of Aventura, Florida, recently shared his ordeal, with his monthly fees doubling from $1,500 to $3,000. On top of that, he was hit with a $224,000 assessment. These assessments are a portion of the costs for repairing common areas shared by all residents.