Florida Condos Face Crunch Time on Repairs — and Bank Loans Are Emerging as a Lifeline

At a time when everyday expenses are climbing, millions of Florida condominium owners are staring down an even steeper financial hill. New state mandates, born from tragedy, are forcing aging condo buildings to undergo costly structural repairs — and many associations simply don't have the cash on hand.

For years, many condo boards kept HOA fees artificially low by skimping on reserve funds. That strategy unraveled after the 2021 collapse of Champlain Towers South in Surfside, which killed 98 people. In response, Florida passed a 2023 law requiring older condo buildings — those 30 years or older and three stories or more — to complete milestone inspections and maintain adequate reserves for major repairs. The law effectively ends the era of deferred maintenance.

Now, associations across Tampa Bay and the state are scrambling. Engineers are being hired, repair schedules drawn up, and boards are exploring creative ways to raise money. For many, the solution may come in the form of a bank loan.

“It’s like being told you need a new roof on your house tomorrow, but you’ve been paying next to nothing into a savings account for years,” said Maria Gonzalez, a 68-year-old retiree living in a 35-year-old condo complex in St. Petersburg. “We’re looking at special assessments that could run $30,000 per unit. Some people here are going to have to sell.”

Others are more blunt. “This is what happens when boards kick the can down the road for decades,” said James Callahan, a real estate attorney in Fort Lauderdale. “Now the bill is due, and it’s coming with interest. The state had to step in because nobody had the spine to do the right thing.”

For associations that can’t collect enough from owners all at once, bank loans offer a way to spread the cost over time. The HOA — not individual owners — takes out the loan, secured by the association’s right to collect fees and assessments. Repayment is folded into future dues.

But not every condo qualifies. Lenders typically prefer professionally managed properties with at least 20 units and a high percentage of owner-occupied units. They also rarely cover 100% of repair costs, and the loan amount usually shouldn’t exceed 20% of the value of individual units.

“It’s not a perfect fix, but for many associations, it’s the only realistic path forward,” said Tim Coop, Tampa Bay regional president for Hancock Whitney Bank. “A good banking partner who understands the unique structure of condo HOAs can make all the difference.”

Still, some residents remain skeptical. “A loan just means we’re paying for yesterday’s neglect with tomorrow’s money,” said Diane Miller, a 54-year-old nurse and condo owner in Clearwater. “But what choice do we have? The law says fix it or face fines. So we borrow, we pay, and we hope the building doesn’t fall down in the meantime.”

With more than two million Floridians living in condos built before 1994, the scale of the challenge is enormous. The new law may ensure safer buildings, but the financial aftershocks will be felt for years.