Understanding Condo Remediation Costs: A Realistic Guide for Boards and Managers

Special assessments for SB4-D remediation typically range from $10,000 to $150,000 or more per unit, depending on building size, the extent of structural deficiencies, the scope of remediation required, and the number of units sharing the cost. Smaller buildings with fewer units tend to have higher per-unit assessments because fixed costs like engineering, permitting, and mobilization are spread across fewer owners. Buildings with severe structural deterioration, particularly those with widespread concrete damage or post-tension cable issues, tend toward the higher end of this range. We strongly recommend that associations budget a 10-20% contingency above any initial estimate.

Construction costs in remediation work frequently exceed initial estimates because the full extent of structural damage is often not visible until demolition and investigation begin. Concrete may appear sound on the surface but contain corroded reinforcing steel throughout. Waterproofing membranes that appear intact may be delaminated beneath the surface. Post-tension cables may show corrosion beyond the areas tested during inspection. Each of these discoveries expands the scope of necessary repair. This is not unique to any contractor. It is inherent to remediation work on aging structures. We recommend budgeting a 10-20% contingency above any estimate and maintaining a reserve for unforeseen conditions.

Phasing is often possible when the structural engineer's findings support it. Not all deficiencies require immediate attention. Critical structural repairs, such as compromised load-bearing elements or safety-critical balcony damage, must be addressed promptly. However, less urgent items like cosmetic concrete repair, non-structural waterproofing, or preventive maintenance can sometimes be deferred to a second or third phase. We help associations distinguish between immediately critical work and deferrable items, developing phased plans that address safety priorities first while managing cash flow. HB 913 also now allows associations to pause reserve contributions for up to two fiscal years to fund immediate repairs.

Insurance coverage for remediation depends on the cause of the damage. Structural deterioration from aging, deferred maintenance, or normal wear is generally not covered by property insurance. However, if deterioration was caused or worsened by a covered event such as hurricane damage, water intrusion from a covered loss, or fire, portions of the remediation may be claimable. We provide the detailed documentation that insurance carriers need to evaluate claims, and we work with your association's public adjuster or insurance professional to support the claims process where applicable. Each situation requires individual assessment.

HB 913, effective July 2025, introduced several provisions that affect remediation financing. The baseline funding plan requirement means your SIRS must now demonstrate that structural reserves stay above zero throughout the study period. The $25,000 threshold for mandatory reserve funding, now indexed to inflation, determines which structural components require full funding. The two-year reserve pause option allows associations facing immediate remediation costs to temporarily redirect reserve contributions to fund urgent repairs. These provisions are designed to give associations more flexibility in managing the financial burden of compliance, but they also require more rigorous financial planning.

Condominium associations typically fund remediation through a combination of sources. Special assessments are the most common funding mechanism, either as a lump sum or installment plan. Reserve funds, where adequately funded, can cover portions of planned remediation. Association loans and lines of credit from banks that specialize in community association lending provide another option, allowing associations to spread costs over multiple years rather than imposing a single large assessment. Some associations use a combination approach: reserves cover immediate costs while a loan funds the remainder with repayment through regular assessments. Where applicable, insurance proceeds from covered events can offset portions of the total cost.