A court decision worries developers eyeing Florida's aging condos

JULY 29, 2024 5:10 AM ET
HEARD ON MORNING EDITION
By Greg Allen

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Pressured by realtors, other owners did sell. A company, Two Roads Development eventually acquired all but ten units in the building. It took over the condo association’s board, voted to change its governing documents and authorized the building’s termination, allowing it to be torn down.

Many older condos in Florida, including Biscayne 21 require approval from 100 percent of the building’s unit owners for termination. By lowering that to 80 percent, a Florida appeals court ruled the developer violated the voting rights of unit owners and that the condo termination was illegal.

It’s a ruling with a broad impact on developers who are eyeing older condos for new projects. Attorney Susan Raffanello, who represents Two Roads Development says, “From my client’s position as well as other developers throughout Florida, they’re really taking a step back and evaluating whether or not to pursue redevelopment of properties when approached by these older and ailing condominium buildings.”

Regulations passed in Florida after the 2021 collapse of the Champlain Towers condominium have helped fuel the drive by developers to buy out and replace older residential buildings. The new rules have increased costs for residents in many older buildings, sometimes requiring sizeable special assessments that may be unaffordable.

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