Governor Ron DeSantis recently signed a controversial bill into law, shaking up the Florida condo world. The law, set to take effect on July 1, has spurred a vocal group of unit owners to threaten legal action. Their contention? Certain aspects of the law could strip them of rights and control over their living spaces.
DeSantis Signs Condo Bill Amidst Concerns
The legislation, known as HB 1021, is over 154 pages long. Its main goal is to increase accountability for condominium homeowners associations and their managers. However, a late addition to the bill has raised eyebrows and ire among some unit owners. This provision hands developers increased authority over the common areas in mixed-use buildings, spaces where residential units coexist with commercial entities like hotels.
The Mixed-Use Development Debate
Mixed-use developments have surged in popularity. They offer a resort-like living experience managed by reputable hotel brands. Locations like the Ritz-Carlton Bal Harbour and the Carillon on Miami Beach exemplify this trend. These developments merge commercial and residential functions, leading to unique legal challenges over control and ownership of shared spaces.
Developers argue that their control over common areas is vital. It ensures that these spaces meet their high standards. Yet, some, like attorney Stevan Pardo, who has been involved in high-profile cases, disagree. They argue this arrangement leaves condominium associations and, by extension, unit owners out in the cold.
Ownership and Control Debate
Pardo highlights a worrying scenario. Under the new law, unit owners might only own the "air rights" of their units. This means no ownership or control over essential common areas like lobbies, elevators, or hallways. "It doesn't make any sense," Pardo states, suggesting that associations are more invested in the property's upkeep.
Despite these concerns, Mark Grant, a consultant in a notable Miami Beach case, sees the situation differently. He believes the law will clarify ownership and control issues, benefiting all parties involved. The law mandates disclosure summaries for mixed-used condo buildings, informing buyers upfront about who controls the building.
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Surfside Tragedy Looms Over Discussion
The backdrop to this legal joust is the Surfside condo collapse in 2021. That disaster spurred a reevaluation of condo associations' responsibilities regarding structural repairs. In response, new structural integrity reserve studies regulations were introduced in 2022.
Legal Battles and Legislative Ripples
The controversy over HB 1021 isn't just about control and maintenance. It also concerns how expenses are allocated for the upkeep of shared facilities. Critics argue that the current model unfairly burdens unit owners. Richard Ortoli, president of a condominium association embroiled in a lawsuit over this issue, has opposed the bill. Despite reaching out to the bill's sponsor, Rep. Vicki Lopez, he and others remain concerned that their voices are unheard.
As July 1 approaches, the tension is palpable. Unit owners and their legal representatives are considering their options. Some are hoping for amendments to the bill that would address their concerns. If not, the courtroom might become the next battleground in this ongoing saga over Florida property rights and condominium living.
