DeSantis Signs Controversial Condo Bill; Owners Threaten Lawsuits Over Developer Control Provisions

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Governor Ron DeSantis has quietly signed a controversial bill into law that has already sparked threats of lawsuits from condominium owners. The new legislation, which is set to take effect on July 1, has drawn criticism for provisions that potentially increase developer control over common areas in mixed-use condominium buildings.

The 154-page bill, known as HB 1021, was primarily designed to enhance accountability for condominium homeowner associations and managers. However, a late addition to the bill has become the focus of contention. This addition grants developers more control over common areas in mixed-use buildings where residential units share space with commercial entities like hotels.

The new law has stirred significant concern among condo owners, particularly in luxury mixed-use developments. “Imagine you’re living in a condominium building and all you own is the air rights of your unit. You don’t own your front door. You have no rights to have ownership or control or maintenance of your lobbies, your elevators, your hallways—none of that,” said Stevan Pardo, an attorney representing condo owners in several high-profile cases. Pardo argues that these changes could allow developers to retain control over critical common areas indefinitely, to the detriment of the residents.

On the other hand, proponents of the bill, including real estate attorney Mark Grant, argue that the provisions are necessary to maintain the quality and standards of common areas, especially in buildings that operate under a hotel or resort model. Grant contends that there is no incentive for developers to maintain control over these areas once a majority of the units are sold. “In a residential condominium, the developer wants to sell all the units and after 90% of the units are sold, the developer wants nothing more to do with the common elements,” Grant said.

Despite these assurances, the bill has already prompted threats of legal action from condominium owners who feel their rights may be infringed upon. They argue that the law could be applied more broadly than intended, potentially affecting even purely residential buildings.

As the law’s July 1 effective date approaches, tensions between developers and condo owners are expected to escalate, with lawsuits likely to challenge the new provisions. The controversy surrounding this bill adds to the ongoing debate over property rights and the balance of power between developers and residents in Florida’s growing mixed-use real estate market.