June 19, 2024
Gov. Ron DeSantis Signs Law Affecting Power Balance in Condo-Hotels
Governor Ron DeSantis has signed a law addressing the power distribution between residents and investors in Florida’s condo-hotels. This legislation could significantly impact the management and control of these mixed-use developments.
Summary of Key Points:
- Purpose of the Law: House Bill 1021 primarily deals with issues of fraud, election meddling, and mismanagement by boards of directors and property managers in condo associations.
- Controversial Addition: A last-minute addition to the law addresses control in condo-hotels, granting commercial lot owners greater control over the maintenance of common areas and the ability to levy assessments on condo owners.
- Conflicts in Condo-Hotels: Florida condo-hotels have been sites of disputes between unit owners and commercial lot owners, who typically control common areas and can impose maintenance fees.
- Impact on the Carillon Case: The new law codifies the power of commercial lot owners in the condo act, potentially affecting cases like Carillon Miami Wellness Resort, where residents have challenged the current control structure.
- Differing Perspectives: Commercial lot owners argue that they need to control common areas to maintain brand standards. Conversely, unit owners feel this structure strips them of rights and can lead to financial abuses.
- Retroactivity and Clauses: The law is retroactive but does not reinstate rights nullified before October 1 of this year. This means previous court decisions will not be affected by the new law.
- Future Legal Implications: The new law is expected to trigger new lawsuits, including potential class action suits, and there may be efforts to amend it in future legislative sessions.
- Buyer Notices: The law also requires that buyers of condo-hotel units be notified about the governing structure, allowing them to make informed decisions before purchasing a property.
The law signed by DeSantis could significantly shift the power balance in Florida’s condo-hotels, benefiting developers and commercial lot owners at the expense of unit owners’ rights. This change has sparked controversy and may lead to new legal battles and legislative adjustments in the future.
Source: Lidia Dinkova, The Real Deal.
