What Is Condo Deconversion?
Condominium deconversion is a process by which a condo building is converted back into apartments or into single-family homes (depending on the size of the building). While there are several different reasons why a condo board might choose to pursue deconversion, it can still be a nasty shock to condo owners who planned to retire in their units. If you are experiencing this situation, consulting an attorney can clarify what options you may have going forward.
Why Does It Happen?
While the process of deconversion can feel laborious, the reasons why some elect for it are fairly simple. The most common is that with an older building, the cost of repairs and modernization can often outweigh the influx of dues and special assessments. Deconversion can, in theory, free up unit owners to buy elsewhere and potentially allow the owner or a real estate developer to newly develop the plot, which in turn may increase the profit margin for both developer and owner.
In addition to economic realities surrounding the cost of maintenance and amenities, some evolutions in Florida condominium law have made older buildings unprofitable. For example, after the collapse of Champlain Towers South in 2021, the state legislature passed new laws requiring condominiums to fund their reserves instead of kicking the responsibility down the proverbial road. While higher safety standards are generally a good thing, they have been directly linked to the closing of many older buildings simply because there is not enough money for the reserves and for modernization.
Voting Interests Must Agree
If deconversion is on the table for your condo board, the first thing that must be checked is whether or not the condominium declaration regulates terminations like this in any way. If it does, its rules will generally trump Florida’s relevant statute unless the two are directly at odds with one another. The statute holds that if “economic waste” is a factor, the condominium ‘form of ownership’ can be terminated if the plan to do so is approved by an appropriate number of unit owners, though determining the exact benchmark can be difficult.
If you are an owner being removed from your home because of deconversion, it can feel grossly unfair that you may be forced to trade a guaranteed residence for a situation where you have to find a new home fast. However, the process is legal as long as the termination process is conducted according to the condo declaration (and the relevant state law), and the property rights of the owners are respected. An attorney may be able to help you understand your rights and obligations, smoothing out the process for you and your loved ones.
Contact A Tampa Condominium Association Attorney
Given Florida’s current real estate market, deconversion is seen as a way out for many associations that can no longer meet their obligations. If you have questions or concerns about your condominium association’s deconversion, contacting a Tampa condominium association attorney from the Seward Law Office may help to get them resolved. Contact our office today to schedule a consultation.
Source:
nbcmiami.com/responds/condo-owners-bracing-for-impact-of-condo-reform-new-reserve-funding-requirement/2788269/
