Imagine moving into your dream condo with manageable HOA dues — and within two years, those monthly payments quadruple. That's the reality facing residents at Winter Park Woods in Florida, where HOA fees jumped from around $400 to over $2,000 per month.
It's a staggering increase that's pushing some owners to the brink — financially and emotionally. Many are asking: How did this happen? And perhaps more importantly, could it happen to me?
In a recent FOX 35 interview, insurance and risk management expert Karl Susman explained what's really behind the surge in HOA costs — and why this isn't just a Florida issue. It's a nationwide wake-up call for condo owners, board members, and insurers alike.
The sharp rise in HOA fees isn't random. It traces back to the tragic Surfside condominium collapse in June 2021, which claimed 98 lives and exposed deep structural and regulatory failures in how condominiums were maintained and insured.
In response, Florida passed sweeping reforms — most notably Senate Bill 4-D, which requires condo associations to:
Conduct milestone structural inspections every 10 years (or sooner for older buildings).
Maintain fully funded reserve accounts for major repairs.
Provide transparent reporting to owners and the state.
Previously, many HOAs operated on "pay-as-you-go" budgets, postponing expensive projects or underfunding reserves to keep monthly dues low. Those days are over.
Susman explained the result succinctly:
"The inspector comes out and says, 'We have to shear the building up, do structural upgrades, and improve weather resistance.' Then the HOA is basically forced to go forward — and that means a lot of money."
In short, the Surfside tragedy reshaped the economics of condominium ownership. Deferred maintenance and underfunded reserves are no longer legally or morally acceptable.
At Winter Park Woods, fees increased over 400% in two years. Similar stories are emerging across Florida and other coastal states.
There are several compounding reasons:
The new laws require associations to build large financial cushions for roofs, foundations, balconies, plumbing, and other "critical elements."
For older complexes — especially those built in the 1970s or 1980s — these reserves often amount to millions of dollars in newly mandated savings.
Property insurance for HOAs has soared due to hurricane exposure, construction inflation, and stricter underwriting standards. Many insurers have pulled out of Florida entirely, forcing HOAs to rely on smaller regional carriers or the state-run Citizens Property Insurance Corporation, which charges higher rates.
Construction materials and labor have surged 30–50% since 2020. Concrete restoration, roof replacements, and waterproofing — all major HOA expenses — now cost significantly more.
Engineering studies, inspections, legal reviews, and documentation requirements also add up quickly.
Together, these pressures create the "perfect storm" for skyrocketing HOA assessments.
While Florida's reforms were sparked by Surfside, similar measures are now being debated or enacted nationwide.
States like California, Colorado, and Hawaii — all with large condominium populations and natural disaster risks — are reviewing their building codes, inspection rules, and reserve funding standards.
Susman cautioned:
"What's happening in Winter Park could happen anywhere there are aging condo buildings. When regulators raise safety and solvency requirements, someone has to pay for it — and that's the homeowners."
For millions of condo owners across the country, this means higher monthly dues are likely in the near future.
At Winter Park Woods, residents like Cindy Moran and Alexander Ostracko told FOX 35 that the fee increases are forcing them to consider selling or even returning to work.
Moran's HOA fees jumped from $400 in 2022 to $2,081 in 2025.
Ostracko, a retiree, said he may have to go back into the workforce just to afford the increase.
Both expressed frustration that, despite paying so much more, they haven't seen visible improvements to the property.
This disconnect is common, Susman explained.
Much of the money isn't for aesthetic upgrades — it's for unseen structural reinforcements, legal compliance, and insurance funding.
"Homeowners feel like they're paying more but getting nothing new. In reality, they're paying for the peace of mind that their building won't end up like Surfside."
It's a painful but necessary recalibration between safety and affordability.
Beyond infrastructure, insurance plays a pivotal role in rising HOA fees.
In Florida, most condominium associations must carry:
Property insurance on shared structures and common areas.
Liability insurance for injury or damage claims.
Directors & Officers (D&O) coverage to protect board members.
Flood insurance, especially in coastal zones.
These policies have all become more expensive — particularly property and flood coverage. As reinsurers raise rates globally, local insurers pass those costs on to HOAs.
Susman, who advises both consumers and insurers, highlighted a critical tension:
"Insurers are being asked to guarantee safety in an environment where construction and weather risks are escalating. The cost of that guarantee keeps going up."
Without reform to the reinsurance and rate-setting systems, these pressures will continue to cascade down to individual homeowners.
For homeowners in condominiums or HOAs, the lesson from Winter Park Woods is clear: Don't assume your fees will stay stable — and don't assume your insurance will cover everything.
Here's what every condo owner should do now:
Ask for the latest reserve study, insurance summary, and maintenance schedule. Transparency is your right under state law.
Your HOA's "master policy" likely covers only the building's structure and common areas. You still need a condo (HO-6) policy for your unit's interior, personal property, and liability.
Budget proactively. Even well-managed HOAs will see assessments rise as regulations tighten.
Stay engaged. Major repairs and insurance renewals are often decided in open meetings where few residents show up.
Deferred maintenance costs more in the long run. Push your board to act early, not reactively.
Insurance brokers familiar with community associations can help boards negotiate better coverage terms and explore group purchasing options.
The tension between safety and cost isn't going away. Regulators want safer, better-maintained buildings; homeowners want affordability; and insurers want solvency.
Finding equilibrium will take time, collaboration, and transparency.
Susman framed it as a necessary evolution:
"We're paying the price for decades of deferred maintenance. The question now is whether we rebuild responsibly or keep kicking the can down the road."
The good news? Properly funded reserves and adequate insurance make communities safer and more resilient. The bad news? Getting there will hurt financially — at least in the short term.
As other states evaluate their condominium laws, Florida's experience is becoming a test case. Lawmakers nationwide are monitoring whether mandatory reserves and structural reporting:
Improve building safety outcomes.
Stabilize insurance markets.
Or unintentionally price out middle-class condo owners.
If the latter happens, pressure will mount for new financing mechanisms — possibly state-backed reinsurance pools or tax incentives for compliance.
Until then, the burden falls squarely on homeowners.
The Winter Park Woods story is not just about one condo complex. It's a glimpse into the future of condominium ownership across the U.S.
After Surfside, regulators, insurers, and HOAs all agree: safety can't be optional. But the cost of achieving that safety is creating a new affordability crisis.
For current and prospective condo owners, knowledge is power. Understand your HOA's financial health, stay engaged, and prepare for the reality that "affordable" condos may soon be a thing of the past.
Because in the new era of post-Surfside regulation, peace of mind comes with a price tag — and it's one every homeowner needs to plan for.
