Florida is a big state, but not big enough to ignore disasters that happen four hours away.
In June, when the Champlain Towers South condo in Surfside collapsed, we all knew there would be more to this story, way more.
At that time, local politicians and engineers tried to put a positive spin on the disaster – if that was even possible in the wake of 98 deaths. The building had structural problems going back to the original construction; that was something we heard a lot about. But the fact that it was built basically on a sandbar surrounded by water could not be ignored.
In case you haven’t noticed the geography of Anna Maria Island, it too is built on a sandbar surrounded by water and the Island cities are starting to pay attention to that fact. Holmes Beach is the first of the cities to look into developing a recertification program for large buildings to identify structural issues, particularly in older condominiums. The recertification in Holmes Beach would apply to condos that are three stories over under-building parking.
The proposed program is structured so qualifying buildings would be inspected by a third-party engineer to determine if they are structurally sound. The inspections would occur every few decades subject to fines if any issues are not properly addressed. Holmes Beach will vote on this proposal at a future commission meeting.
This Holmes Beach proposition is modeled somewhat on the Florida Bar task force recommendation to the Legislature, also recommending structural inspections within the next three years for condominiums three stories or taller. It is still unclear if this recommendation means three stories above under-building parking or three stories from ground level. In addition, the Florida Bar task force recommends certifications for roof structures, fireproofing, elevators, plumbing, electrical systems and other items.
An interesting note is that the victims’ families of the Champlain Towers South collapse are suing the developers of a neighboring luxury condo. They are alleging that the nearby construction destabilized the building and helped lead to the collapse.
In spite of all the conversations about the stability of condo buildings, it doesn’t seem to be affecting the southeast Florida real estate market. The Miami area residential market is a popular destination for South American buyers. During the pandemic, however, this fell off because of travel restrictions into our country. Now that those restrictions have lifted, it is anticipated that the southeast coast of Florida will have a renewed sales boom from international buyers from Mexico, Columbia and Argentina.
On another note, I would be remiss if I didn’t point out that the federal government is about to back mortgages of nearly $1 million for the first time. Fannie Mae and Freddie Mac are expected to increase the maximum size of home mortgage loans early next year. This is a reaction to the rapid appreciation of home prices nationally over the past year.
The expectation is to raise their conforming loan limits to about $650,000 from $548,250 and up to about $1 million in what is considered “high-cost” markets from $822,375. There is no small controversy going on about this increase and the view that the American taxpayer is subsidizing affluent homeowners.
It’s pretty clear that what happens on Florida’s east coast doesn’t stay on the east coast. All barrier islands and waterfront communities throughout the state will be taking a serious look at the age and condition of condos in their area as well as the state of Florida setting future recertification guidelines. Hang on – there’s more to this story.
