Article
Courtesy of The Tampa Bay Times
Published
March 25, 2014
The best hope for condominium owners being forced out
of their homes as their buildings are converted to apartments is a
legislative fix. Two similar bills in the Florida House and Senate would
require that owners who object to the conversation be fully compensated
for their properties. While not a perfect solution, this is the most
reasonable way to ensure that homeowners are not subject to the double
disservice of being pushed out of their homes and given a pittance for
property they do not want to sell.
The Tampa Bay Times' Susan Taylor
Martin reported last Sunday that several condo owners at
Grande Oasis at Carrollwood, a Tampa condo community
that is poised to convert to apartment rentals, stand to
lose their homes with little recourse. A bulk buyer
already has snapped up nearly 800 of the complex's 1,000
units. Once a buyer reaches 80 percent ownership,
Florida law allows that owner to vote to convert the
complex to rental apartments and force the remaining
condo owners to sell their units, often at a significant
financial loss.
Bills filed by Rep. Chris Sprowls, R-Palm Harbor, and
Sen. Jack Latvala, R-Clearwater, seek to protect
homeowners from being exploited by aggressive investors.
The measures (SB 1172, HB 643) would require bulk buyers
to pay owners who object to condo terminations 110
percent of their unit's purchase price or fair market
value, whichever is greater. |
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The best hope for condominium owners being forced
out of their homes as their buildings are converted to
apartments is a legislative fix.
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They also would require the bulk buyer to pay a
relocation fee to former unit owners who had a homestead exemption on their
condominium. Neither payment will extinguish owners' anguish about an
unwanted move, but the proposals present a reasonable avenue of opportunity
to prevent large, unfair financial losses.
The changes could help condo owners such as Doreen Rosselli, a corporate
travel counselor who bought her two-bedroom unit for $183,300 in 2006.
Without the proposed protections, Rosselli likely will lose money on the
sale of her home. Under current Florida law, bulk buyers would only have to
pay Rosselli fair market value. According to Hillsborough County property
appraiser's records, her unit is worth about $43,000.
Some condo owners worry that the legislation contains a loophole that would
allow bulk buyers to forfeit payments to condo owners if they plan to sell
the property to a third party. The bills' authors say that concern is
misplaced. Still, the lawmakers should tweak their bills to eliminate any
possibility of such shady dealings.
The Legislature created this problem for condo owners who have no interest
in selling their properties. As more condo conversions take place around the
state, lawmakers should create relief valves for owners who do not support
condo terminations in their communities. Passing the changes proposed by
Latvala and Sprowls would be a good place to start.
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