Key Takeaways
- Post-Surfside laws are in full effect: SB 4-D (2022) and HB 913 (2025) now require structural inspections and fully funded reserves for all Florida condos 3+ stories, with no more reserve waivers allowed
- Orlando condo owners face massive assessments: Special assessments of $10,000 to $100,000+ per unit are hitting buildings across Orlando as associations scramble to comply with mandatory reserve funding
- Orlando condo market is declining: Condo sales are down 26.4% year-over-year, with the median condo price at just $195,000 amid surging inventory
- Non-payment carries serious risk: Associations can charge 18% interest on unpaid assessments and foreclose on your unit through judicial proceedings
- Cash sales are the fastest exit: Selling as-is to a cash buyer in 7-14 days lets you avoid the assessment, skip repairs, and protect your remaining equity before conditions worsen
If you own a condo in Orlando and you have just received a special assessment notice for $20,000, $50,000, or even six figures, you are not alone. Across Central Florida, condo owners are opening letters from their associations that are turning their financial plans upside down.
These assessments are not coming out of nowhere. They are the direct result of Florida's post-Surfside safety legislation, which ended decades of deferred maintenance and reserve waivers. The laws are necessary. But for individual Orlando condo owners, the financial impact is immediate and often devastating.
This guide explains the laws driving these assessments, what they mean for your Orlando condo, and how to sell quickly if paying is not an option.
The Post-Surfside Laws: SB 4-D and HB 913
The collapse of Champlain Towers South in Surfside on June 24, 2021, killing 98 people, triggered the most significant condo safety legislation in Florida's history. The Florida legislature responded with two landmark bills that fundamentally changed how condo buildings are maintained and financed.
SB 4-D (2022): The Initial Safety Overhaul
Signed into law in May 2022, Senate Bill 4-D established the framework for mandatory structural safety compliance across Florida. The key provisions include:
- Milestone inspections: All condominiums three stories or taller must undergo a structural inspection when the building reaches 30 years of age (25 years for buildings within 3 miles of the coast), with re-inspections every 10 years thereafter
- Structural Integrity Reserve Studies: Every qualifying building must complete a SIRS to assess the condition and remaining useful life of major structural components
- End of reserve waivers: Condo associations can no longer vote to waive or reduce reserve contributions for structural components including roofs, load-bearing walls, foundations, plumbing, electrical systems, waterproofing, and fire protection
- Baseline funding requirement: Associations must adopt a funding plan based on the SIRS that ensures reserves are adequate to cover anticipated structural repair and replacement costs
HB 913 (2025): Closing the Loopholes
House Bill 913, signed in 2025, refined and strengthened the original legislation. Key additions include:
- Clarified SIRS timelines: Associations must complete their first SIRS by the building's milestone inspection date, with updates every 10 years
- Stricter enforcement mechanisms: The bill provided clearer penalties for associations that fail to comply with inspection and reserve requirements
- Transparency mandates: Enhanced requirements for associations to disclose reserve funding levels, SIRS results, and upcoming financial obligations to current and prospective owners
- Phase-in completion: All compliance deadlines from the original SB 4-D legislation are now fully in effect as of January 1, 2026
The combined effect of these laws is straightforward: if your Orlando condo building is three stories or taller and has been deferring maintenance for decades, the bill is now due. And it is landing on individual unit owners in the form of special assessments.
Structural Integrity Reserve Studies Explained
A Structural Integrity Reserve Study is a professional engineering assessment required by Florida law for every residential condominium three stories or taller, repeated every 10 years. The SIRS evaluates the condition and remaining useful life of major structural components including roofing systems, load-bearing walls, foundation, floor structures, plumbing, electrical systems, waterproofing, and fire protection.
The study determines the estimated replacement cost for each component and the annual reserve contribution the association must collect. A SIRS for a 40-year-old, 80-unit mid-rise in Orlando might identify $8 million to $12 million in structural reserves needed over the next 15 years. If the association has $200,000 in reserves, which is common for buildings that waived contributions for decades, the shortfall must be addressed immediately. The association cannot legally waive or underfund it. That shortfall is what drives special assessments.
Before the post-Surfside laws, Florida condo associations could vote each year to waive reserve funding. Most did, keeping monthly fees artificially low. That option is permanently gone for structural components. Associations must now collect and maintain reserves based on their SIRS, regardless of what unit owners want to pay.
How Special Assessments Are Hitting Orlando
Orlando condo owners are seeing assessments across a wide range depending on building age, size, location, and how severely maintenance was deferred.
| Building Profile | Typical Assessment Per Unit | Primary Cost Drivers |
|---|---|---|
| Newer mid-rise (built 2000-2010) | $10,000 - $25,000 | Reserve catch-up, roof funding, elevator reserves |
| Older mid-rise (built 1985-1999) | $25,000 - $60,000 | Concrete restoration, plumbing overhaul, waterproofing |
| Older high-rise (built 1970s-1980s) | $50,000 - $100,000+ | Full structural work, electrical upgrades, fire protection |
| Tourist corridor condos (pre-1995) | $40,000 - $80,000+ | Deferred everything, high-turnover wear, code upgrades |
To put these numbers in context, the median Orlando condo is worth just $195,000. A $50,000 special assessment represents more than 25% of the unit's total market value. For many owners, the assessment exceeds their available savings or even their remaining equity in the property.
On top of the one-time assessment, monthly HOA fees are climbing sharply as associations increase regular contributions to meet ongoing reserve requirements. Orlando condo owners are commonly seeing their monthly fees double from $300-$400 to $600-$800 or more, with further increases expected.
Orlando Condo Market in 2026
The Orlando condo market was already softening before special assessments accelerated the decline. Condo sales are down 26.4% year-over-year, with fewer buyers willing to purchase into buildings facing uncertain financial futures. The median Orlando condo price has dropped to just $195,000, reflecting both the broad market correction and the specific drag from assessment-burdened buildings.
Inventory is surging as owners rush to sell before conditions deteriorate further, creating a downward pricing spiral. Meanwhile, financing is drying up as Fannie Mae's warrantability requirements disqualify a growing number of Orlando buildings. When buyers cannot get conventional mortgages, the buyer pool shrinks to cash purchasers and investors. Buildings with unfunded reserves, pending assessments, or incomplete SIRS documentation are particularly likely to be flagged as non-warrantable.
Orlando Neighborhoods Most Affected
Not every Orlando condo is equally impacted. The worst-hit areas share common characteristics: older buildings, high-rise construction, decades of deferred maintenance, and association boards that aggressively waived reserves.
Downtown Orlando: The downtown core has a concentration of mid-rise and high-rise condos built during the 2000s boom and earlier, many now reaching their milestone inspection windows. Downtown condos that attracted young professionals with low HOA fees are now seeing those fees double or triple. Units purchased for $180,000-$250,000 face assessments representing a significant percentage of their current value.
International Drive and Tourist Corridor: The I-Drive corridor and areas near Universal Orlando and Walt Disney World have a high concentration of condo-hotel and investor-owned units built in the 1980s and 1990s. Heavy tourist use accelerated wear on common elements, and associations prioritized keeping fees low to attract investor buyers. The result is some of the largest reserve shortfalls in the metro, with assessments of $40,000 to $80,000+ common in this corridor.
Kissimmee and Osceola County: Older condo communities south of Orlando have a high percentage of investor-owned and short-term rental units, which complicates assessment collection. When a significant portion of owners are absentee investors, non-payment risk increases, putting additional financial pressure on remaining owners.
MetroWest and West Orlando: Several large condo complexes built in the late 1980s and 1990s are hitting their 30-year milestone inspections with substantial deferred maintenance. Concrete restoration, roof replacement, and elevator modernization are common assessment drivers in this area.
What Happens If You Cannot Pay
Understanding the timeline of non-payment is critical for Orlando condo owners evaluating their options. Here is how the process typically unfolds.
Day 1: Assessment becomes due. Your association sends a formal payment demand. Most assessments are due in a lump sum within 30 to 90 days.
Day 31-90: Late fees and interest begin. Under Florida Statute 718.116, associations can charge interest up to 18% per year on unpaid assessments. A $50,000 unpaid assessment at 18% accrues $9,000 in interest in the first year alone.
Day 90-180: Lien recorded. The association records a claim of lien against your unit, which must be satisfied before you can sell or refinance. The lien includes the unpaid assessment, accrued interest, late fees, and attorney fees.
Day 180+: Judicial foreclosure. The association files a lawsuit to foreclose, a process that typically takes 6 to 12 months. Interest and legal fees continue to accumulate, potentially adding $10,000-$20,000+ to your total liability.
End result: You lose your unit, may owe a deficiency balance, and your credit is severely damaged for years.
The time between receiving a special assessment notice and facing a lien is often just 90 days. Once a lien is recorded, selling becomes more complicated and expensive. If you are considering selling, acting before the lien stage gives you the most options and the best financial outcome.
Your Options: A Side-by-Side Comparison
Orlando condo owners facing a special assessment have four realistic paths. Each comes with distinct financial and practical tradeoffs.
| Option | Pros | Cons | Best For |
|---|---|---|---|
| Pay assessment and list traditionally | Potentially higher sale price; building improvements may support value | Requires $10K-$100K+ upfront; 60-180 day sale timeline; ongoing HOA increases; risk of additional assessments; financing challenges for buyers | Owners with cash reserves who plan to hold 2+ years |
| Sell as-is to a cash buyer | Close in 7-14 days; no repairs; no commissions; avoid assessment payment; certainty of closing | Offer may be below retail market value | Owners who need speed, cannot pay the assessment, or want to avoid financial risk |
| Negotiate a payment plan | Spreads cost over months or years; avoids immediate lump sum | Not all associations offer plans; interest may apply; monthly costs still increase significantly; does not eliminate the total obligation | Owners who want to stay and can absorb higher monthly costs |
| Walk away (risk foreclosure) | No upfront payment required | Lien at 18% interest; judicial foreclosure; severe credit damage; potential deficiency judgment; lose all equity | Last resort only; consult an attorney first |
For most Orlando condo owners who cannot comfortably pay a five- or six-figure assessment, Option 2, selling as-is to a cash buyer, offers the best combination of speed, financial protection, and certainty.
The Cash Sale Advantage
When your condo building has a pending or active special assessment, selling through traditional channels becomes extremely difficult. Mortgage lenders flag buildings with large unfunded liabilities. Financed buyers back out when they learn about the assessment during due diligence. A cash sale bypasses all of these obstacles.
No financing contingency. Cash buyers do not need mortgage approval, Fannie Mae warrantability, or appraiser validation. The deal does not collapse because an underwriter flagged your association's reserve funding levels.
Sell as-is. Cash buyers purchase condos in their current condition. No repairs, no staging, no cosmetic updates. In a building facing structural work, spending money on unit improvements before selling is money you are unlikely to recover.
Close in 7 to 14 days. A traditional Orlando condo sale averages 60 to 90 days right now. A cash sale closes before most assessment payment windows expire.
Assessment handled at closing. Any outstanding assessment is settled from the sale proceeds at closing. The title company handles the payoff as part of the closing process.
The Propcash Marketplace Difference
When you sell to a single "we buy houses" company, you are negotiating against one buyer with no competition. Propcash operates differently. When you submit your property, it goes to our network of over 500 active real estate investors. Multiple investors compete to purchase your condo, driving offers higher than what any single buyer would offer alone. You receive multiple competing cash offers within 24 to 48 hours, choose the best one, and close on your timeline.
This model is particularly valuable for Orlando condo owners facing assessments because investors who specialize in Florida condos understand the assessment landscape and are actively looking for these opportunities.
A Real Seller's Experience
"My association hit us with a $38,000 special assessment in November, and I had 60 days to pay. I am retired and living on Social Security. There was no way I could come up with that kind of money. My real estate agent said it would take months to sell traditionally, and the financing issues with my building made it even harder. I submitted my condo on Propcash and had three cash offers within two days. I closed in 11 days, the assessment was paid out of the proceeds at closing, and I walked away with enough to put a deposit on a rental apartment. It was not the outcome I wanted when I bought the place, but it saved me from foreclosure." - Maria T., downtown Orlando condo owner
Florida Condo Disclosure Requirements
Under Florida Statute 718.503, sellers must provide buyers with the declaration of condominium, bylaws, most recent financial statement and budget, the SIRS (if applicable), any pending or approved special assessments, reserve funding status, and building inspection reports. Buyers have a statutory right to cancel after reviewing these documents.
If an assessment is pending or the SIRS reveals significant unfunded liabilities, many traditional buyers will exercise that cancellation right. Cash buyers and investors, by contrast, review this information before making an offer and have already accounted for the assessment. This is why cash offers are far less likely to fall through during due diligence.
Frequently Asked Questions
Can I sell my Orlando condo if there is an unpaid special assessment?
Yes. In Florida, unpaid special assessments typically must be settled at closing, either by the seller from sale proceeds or through negotiation with the buyer. Cash buyers and investors frequently purchase condos with outstanding assessments, factoring the amount into their offer price. This allows you to sell without paying the assessment out of pocket, as long as your sale proceeds cover it.
What happens if I cannot pay my condo special assessment in Orlando?
If you cannot pay a special assessment, the condo association can place a lien on your unit and charge interest up to 18% annually on the unpaid balance. After recording the lien, the association can initiate judicial foreclosure proceedings in Florida court. The process typically takes 6 to 12 months, during which interest and legal fees accumulate. Selling to a cash buyer before the lien escalates is often the fastest way to avoid foreclosure.
How fast can I sell my Orlando condo to avoid a special assessment?
A cash sale can close in 7 to 14 days, fast enough to sell before many assessments become due. Traditional sales in Orlando currently average 60 to 90 days for condos, making them too slow to beat most assessment deadlines. If your association has announced an assessment with a 30- or 60-day payment window, a cash sale is likely your only path to closing in time.
Do I have to disclose a special assessment when selling my Orlando condo?
Yes. Florida law requires sellers to provide buyers with condo association documents including financial statements, budgets, and any pending or approved special assessments. Under Florida Statute 718.503, buyers have a right to review these documents and can cancel the contract within a specified period. Failing to disclose a known assessment can expose you to legal liability after closing.
Which Orlando condo buildings are most affected by special assessments?
The hardest-hit buildings are older condos built in the 1970s through 1990s that are three stories or taller, particularly in downtown Orlando, the International Drive tourist corridor, and communities near Universal and Disney. These buildings have decades of deferred maintenance and severely underfunded reserves, resulting in the largest assessments.
What is the Surfside condo law and how does it affect Orlando condo owners?
The Surfside condo law refers to Florida legislation passed after the 2021 Champlain Towers collapse, primarily SB 4-D (2022) and HB 913 (2025). These laws require condominiums three stories or taller to undergo structural inspections at 30 years, complete a SIRS every 10 years, and maintain fully funded structural reserves. Associations can no longer waive or underfund reserves, meaning buildings with decades of deferred maintenance must now fund massive repair reserves through special assessments of $10,000 to $100,000+ per unit.
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Data Sources: This analysis draws from Florida Realtors market statistics, Orlando Regional Realtor Association data, Florida Division of Condominiums records, Florida Statutes Chapter 718, Fannie Mae condo project data, and reporting from the Orlando Sentinel and South Florida Sun-Sentinel. Data as of February 2026. This article is for informational purposes only and does not constitute legal or financial advice. Consult a licensed attorney or financial advisor regarding your specific situation.