More than 2.5 million Floridians enjoy the benefits of a condominium lifestyle. Multi-story towers allow residents to live close to beautiful views, their workplaces, their families, and/or fun recreational activities.

However, owning a condominium unit also comes with a significant financial obligation. It is not just the cost of purchasing a unit, but investments must be made to maintain and support the infrastructure to protect the value of your investment and the people who reside in it. In 2022, the Florida Legislature passed a law to protect residents of condominiums from unsafe conditions, like those that led to the tragic collapse of Champlain Towers South in Surfside three years ago, killing 98 people. It was a devastating loss and fueled fear among other Floridians living in condos about their own safety. The new law requires inspections for condominiums that are 30 years old or more. If the inspection reveals substantial structural deterioration, the condo association must act to repair the building. What’s more, the new law will prevent condo associations from deferring critical maintenance – and require fully funded reserves so that can be used to support the safety and integrity of the building. While this imposes a financial obligation on many, it is intended to reverse the course of so many associations that have looked the other way when faced with safety obligations.

At the heart of the new ruling is Biscayne 21 condo (center). Most owners opted to sell, but 10 did no and felt they were being pushed out. They sued.

 

In addition to the structural integrity reserve requirements, Florida property owners have also been struggling with skyrocketing insurance premiums. These escalating costs contribute to a growing crisis for condo owners. For many, the condo lifestyle may soon be out of reach.

Given the circumstances, condominium owners throughout Florida may be considering their options to protect their property rights and the value inherent in what they own, one of which is to sell their unit for often three times the market price for the purpose of redevelopment.

However, a new ruling in Florida’s Third District Court of Appeals last month diminished the property rights of condo owners and gave veto power to any one unit owner who held out from the opportunity to sell.

The opinion was issued in a case against Biscayne 21 in Miami.

In this situation, 96% of the 192 units on North Bayshore Drive opted to sell to a developer, which began the process for terminating the condo association. The building is six decades old, and many owners recognized that the costs to maintain it could exceed its current value or their means to pay for it.

The court sided with ten owners unwilling to terminate the association who argue that current state law does not apply to them. The building is currently uninhabitable. And without a pathway to redevelopment, it is losing value by the minute.

While this ruling centers around just one building, its ramifications impact the entire state. There are more than 1.5 million condo units across Florida.

If the ruling in Miami-Dade last month on Biscayne 21 stands, Florida condo owners are left with fewer rights and even fewer options. Just one individual could stand in the way of the desires – and what may be in the best interest – of the vast majority of owners.

Without options, condo owners across the state will be saddled with financial burdens and obligations, even the possibility of foreclosure.

As lawmakers, it is our responsibility to strengthen the safety of our communities as we have done with the new inspection requirements for old buildings. We work to ensure that Floridians have every opportunity to prosper, and that they are not held back by flawed decisions that effectively undo decades of legislative progress.

If there is not a rehearing on this case, we will be forced to take swift action to mitigate the impacts of this opinion statewide and uphold Floridians’ property rights. If we do not, what is a brewing condo crisis will become an economic catastrophe.