Buying a condo in Florida used to be about location, amenities and price. Now buyers are faced with a more complicated question: How healthy is the condo association?
In the wake of the 2021 Surfside condominium collapse, sweeping new requirements have forced thousands of condo associations to confront financial realities many had long deferred. Aging buildings must now undergo structural reviews and build up cash reserves — costs that, in many cases, are landing on owners as six-figure special assessments. The result: a market flooded with anxious sellers and wary buyers struggling to gauge the financial stability of a building.
Former state Sen. Jeff Brandes is offering a solution that works sort of like a “Carfax for condos.” The new Florida Communities Certification Association (FCCA) is the state’s first independent, third-party rating and certification system for condominium associations. The goal is to provide transparency into the health of condo associations by analyzing data and assigning ratings of gold, silver, bronze — or “no rating” at all.
Associations that choose to participate will submit three years of audited financials, their Structural Integrity Reserve Studies and other key documents. The FCCA evaluates cash on hand, operating expenses, reserves, governance and more, helping owners and buyers understand the health of their association.
Brandes says the FCCA’s “secret sauce” is its multidisciplinary team of experts that created the rating rubric — and he sees the FCCA as a gamechanger, not only for buyers and owners, but also for insurance companies. “We think insurers will benefit because the insurers will be able to see which buildings are well run, and we believe, ultimately will provide a discount for the services of a well-rated condo.”
Several large insurance companies are already helping to fund the FCCA’s work, Brandes says. In the future, the organization will introduce a membership model in which associations would pay to participate. In addition to receiving a rating, members would have access to a range of tools and resources, such as security assessments.
There’s a big potential market for the service. About 1.5 million condo units in Florida have crossed the 30-year mark, and there are 27,000 condo associations across the state. The FCCA, which is based out of St. Petersburg, is currently in the pilot phase of rating several condo associations in the Tampa Bay area but aims to eventually offer its services statewide within the next several years.
Florida Trend readers can learn more about the FCCA and its mission in the Editor’s Page of the upcoming April issue of Florida Trend.