County plans to offer 40-year condo recertification loans

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Written by Gabriela Henriquez Stoikow on May 3, 2022

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County plans to offer 40-year condo recertification loans

Condo associations that need financial assistance to make emergency structural repairs to pass their 40-year recertification inspection may soon get relief from Miami-Dade County and private financial institutions.

Commissioners postponed a resolution on Tuesday directing Mayor Daniella Levine Cava to explore creating a loan program alongside financial institutions to help associations and condo owners in need of funds for repairs.

The committee is now set to address the measure after the Legislature held a special session the week of May 23 to consider legislation relating to property insurance, reinsurance, changes to Florida’s building code to to improve the affordability of property insurance, the Office of Insurance Regulation, Civil Remedies and Credits.

The measure asks the mayor to detail within four months what is needed to create the program, list funding sources and say what else commissioners should do to launch the initiative.

Commissioner Danielle Cohen Higgins’ resolution calls for the program to be developed in conjunction with organizations such as Wells Fargo, Bank of America, TD Bank, Dade County Federal Credit Union and PNC Bank, among others.

The county and financial institutions should set maximum loan amounts, interest rates with favorable loan terms to attract condo associations, and 30-year loan terms.

The document proposes that the program require the loan to be secured by a mortgage and other related documents approved by the county. Loans are to be disbursed to the condominium corporation only for required structural repairs such as roof replacement, building painting and waterproofing, and pavement resurfacing.

Applicants must submit evidence of required repairs, such as inspection reports, and proof that the condominium board has the authority to apply for and receive the loan, including required votes from unit owners.

To be considered, associations would have to meet requirements such as being in Miami-Dade County, needing emergency structural repairs at the time of a recertification process, and not having the necessary funds.

County commissioners have already requested a report from the Commission’s Office of the Auditor that found federal, state and local initiatives to help condominiums and owners of single-family and multi-family homes with the costs of necessary maintenance repairs.

The report found that Minnesota has a program designed to provide direct financial assistance to condo associations for emergency repairs.

Minnesota’s Housing Improvement Areas Act allows cities to “finance housing improvements either by advancing funds available to the city and then recovering the costs by charging homeowners fees, or by issuing general bonds (GOB) and then imposing a fee on individual condominium unit owners to repay the bonds.The county is seeking a similar program, the resolution says.

Following the collapse of the Champlain South Tower, commissioners worked on various laws to help residents whose buildings are deemed unsafe.

Among these, a resolution by Sally Heyman and Jose “Pepe” Diaz approved in February requires municipal building officials to immediately notify the county’s Office of Emergency Management when they need to begin emergency actions so that the county can help temporarily displaced residents. from their homes.

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