Condo residents bracing for costly assessments after governor vetoes fire bill
Sun Sentinel
By: Paul Owers
30 June 2017
Hundreds of thousands of condominium owners in South Florida and across
the state are facing financial pressure to install fire-safety devices
in older buildings following Gov. Rick Scott’s veto of a bill that
would have allowed them to avoid the work altogether.
Many unit owners could face thousands of dollars in costs to install
fire sprinklers where there are none, while associations face the
possibility of levying special assessments to fund upgrades in common
areas.
At least 5,600 condo developments statewide could be affected, although
buildings standing less than 75 feet tall would be exempt. Owners in
structures built after 1994 need not worry as sprinklers for newly
constructed projects were mandated that year.
Association leaders, condo lawyers and residents called the veto a bad
deal, while those in enforcement noted that owners have had more than
enough chances to install upgrades mandated nearly two decades ago.
Pio Ieraci, president of the 16,000-resident Galt Mile Community
Association in Fort Lauderdale, said the veto will force buildings to
spend millions of dollars on sprinklers and other equipment, leading to
expensive special assessments — $15,000 to $25,000 per owner, in some
cases.
He said many residents in older buildings are on fixed incomes and
could lose their homes in foreclosure if they can’t come up with the
money. And he said the assessments could jeopardize the financial
stability of condo associations, reduce property values and make it
harder for owners to sell individual units.
“It’s unconscionable and unbelievable,” Ieraci said. “The impact is huge.”
Pio Ieraci,
president of the Galt Mile Community Association in Fort Lauderdale,
says condo owners face expensive special assessments. (Carline Jean /
Sun Sentinel)
Under state law, condos taller than 75 feet and built before 1994 must
be retrofitted with sprinklers or “engineered life safety systems” by
the end of 2019.
House Bill 653 — sponsored in the House by Rep. George Moraitis, R-Fort
Lauderdale, and in the Senate by Kathleen Passidomo, R-Naples — would
have extended that deadline until 2022 and allowed condo residents,
with a two-thirds vote, to opt out of the retrofits.
In a 2009 report, the state Department of Business and Professional
Regulation, which oversees condos, estimated that 5,600 projects in
Florida needed retrofits, though the agency says it doesn’t have a more
recent figure.
In South Florida, the number could top 200 projects, said Donna
DiMaggio Berger, a Fort Lauderdale attorney and shareholder with the
Becker & Poliakoff law firm representing condo associations
statewide.
The thousands of condos built in South Florida over the past 17 years
are not affected. The requirements don’t apply to condo buildings
shorter than 75 feet or those built after 1994, when a state law
mandated that new buildings have fire sprinklers.
In a letter to Scott urging him to veto the bill, Julius Halas,
director of the Division of State Fire Marshal, said most of the
equipment used by firefighters can’t reach a height of more than 75
feet.
“It has been proven that fire sprinklers are the best means of life safety and property protection available,” he wrote.
In an interview following the veto, Halas said condo associations
should seek multiple bids from contractors in an effort to lower costs
and to contact their insurance carriers about cost savings that may
result from installing the fire protection systems.
Halas said it’s “disingenuous” for supporters of the bill to complain
about costs now, considering that the retrofit requirement was first
adopted in 2000 with a compliance deadline of 2012. The deadline has
been extended twice.
“They’ve had 17 years, and they still have two and a half years, but time is getting shorter,” he said.
Supporters of the bill insist residents in older buildings should have
the choice whether to install the fire-safety equipment. They say fire
officials may be pushing for stricter requirements as a way to make up
for deficiencies in resources and training.
“You’ve got a lot of frail residents who can’t move,” said Berger, the
attorney. “They are literally shut-ins. They don’t let the pest-control
person in, let alone someone to retrofit their unit.”
Condos that haven’t already opted out of sprinklers have no choice but
to install the life-safety systems, which haven’t been clearly defined,
supporters of the bill say.
Berger said condo boards will have to decide on the timing of hiring an
engineer to produce life-safety reports for their buildings, entering
into contracts for the installation and applying for permits.
Depending on local fire marshals, some associations could face
penalties if they don’t undertake those steps immediately, while other
boards may have more leeway in waiting to see if a similar bill can
pass during next year’s legislative session, she said.
Berger said she hopes state officials will advise local fire marshals
not to pressure associations, given the legislature’s near-unanimous
support for the bill.
Howard Elfman, a Broward County real estate agent and a past president
of the Greater Fort Lauderdale Realtors, said the retrofits are a
“messy process” that likely will curtail buyer demand in buildings
while the work is being performed.
But Elfman doesn’t expect it to lead to a sustained decline in property values.
“Quite the opposite — it makes the property more appealing,” he said. “It ultimately will be a benefit to any owner.”
Moraitis said he hopes to sponsor another bill next year. In the
meantime, he will work with the governor and fire marshals on
less-expensive alternatives for condos.
Still, owners are worried.
Fred Nesbitt, 73, owner of a two-bedroom condo at Galt’s Playa Del Mar
and president of its association, said he and other residents already
feel safe. Their 347-unit building has smoke detectors and fire alarms
throughout.
In 2015, the building completed $4.5 million in structural repairs, and
many of the residents can’t afford another assessment, Nesbitt said.
“Coming on top of that, it would be devastating,” he said.
Eric Berkowitz, 67, who lives in a three-bedroom Galt Ocean Mile condo,
said he and many of his neighbors live on modest means and wonder
whether assessments will force them to leave.
“We’re frightened, is basically what it comes down to,” he said. “I
live on a pension and Social Security. Most of the people here are not
masters of the universe. We can’t afford something capricious like
this.”
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