‘I Feel Like I’m Being Milked,’ Miami Condo Residents Hit With A $21 Million Special Assessment For Repairs
Residents at 1060 Brickell, a condo complex in Miami, are facing a financial shock after being slapped with a $21 million special assessment fee for repairs to their 16-year-old buildings. For some, this means paying more than $40,000 out of pocket – and they’re unhappy about it.
“I think it’s excessive. I feel like I’m being milked,” said Nima Mahdjour, one of the condo owners, in a conversation with CBS News.
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The condo board approved the fee after a structural integrity reserve study (SIRS) identified several repair needs, including work on the facade of Tower 2, roof replacement and pool deck restoration. These studies, required every 10 years by Florida law for buildings three stories or higher, assess the funds needed for major repairs and replacements.
But many residents are questioning the process. They claim it was rushed, lacked transparency and bypassed a formal vote by unit owners. This has left some residents feeling blindsided and frustrated.
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The association’s attorney Marc Halpern defended the board’s actions, citing Florida’s stricter building laws enacted after the tragic Surfside condo collapse in 2021. These laws require boards to ensure repairs are carried out promptly to protect the safety of residents.
“The board is charged with the responsibility to adequately maintain and repair the common elements,” Halpern explained. “If owners were to vote against that, you would be putting the building and the owners in danger.”
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The financial strain isn’t limited to this condo. In Coconut Grove, homeowners at The Cloisters on the Bay are reeling from a $7.1 million special assessment. John DuBois, a longtime owner, was shocked to learn he owed $153,000, with the money due in just two weeks.
“I don’t have that kind of cash sitting around,” DuBois told CBS News. Like many others, he’s questioning the fairness of the process and the lack of clear communication. “You get people on boards that like to spend money. It can be a problem.”
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Some residents argue the repairs aren’t as urgent as the boards claim. They also feel the assessment’s financial burden is unfairly steep, especially given that some studies described many systems as “generally serviceable.”
The financial burden has been unbearable for at least one tenant of 1060 Brickell. According to CBS News, they are now considering selling their unit to avoid the high assessment. Similarly, DuBois in Coconut Grove is contemplating legal options or asking for more time to collect money.
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Other condo owners at 1060 Brickell and The Cloisters on the Bay are also exploring their limited options. To make the cost more affordable, some are asking for installment arrangements that will spread payments over a number of months. Others are considering taking out loans, such as home equity or personal loans. Additionally, some residents are looking into challenging the board if they believe bylaws or procedural rules were violated, though this approach offers no guarantees.
Despite these efforts, experts warn that Florida’s new building laws are making these high costs a reality for condo owners across the state. Still, experts warn that Florida’s new building laws are making these high costs a reality for condo owners across the state. “This is the new normal,” Halpern noted.
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This article ‘I Feel Like I’m Being Milked,’ Miami Condo Residents Hit With A $21 Million Special Assessment For Repairs originally appeared on Benzinga.com
As a journalist, Lauri Blackwell has always been interested in writing about the business world. She aims to keep her readers up-to-date on current events and trends in the business world, without sacrificing the journalistic integrity that made her want to be a writer in the first place.
