Responding to perceived abuses in condominium terminations, the 2015 Florida Legislature passed Chapter 2015-175, amending the termination provisions of the Condominium Act. This statute clears up certain problems experienced in prior terminations while imposing a number of impediments to future terminations. If a termination plan is rejected, the period in which it may be reconsidered is extended from 180 days to 18 months. Furthermore, condominiums created by conversions of rental properties cannot be terminated prior to five years following the recording of their declarations of condominium. If a termination is effected by a “bulk owner”—someone with affiliates that owns at least 80% of the units—the other owners are granted the following rights:
The statute also requires a bulk owner to include in any plan of termination:
Furthermore, if all of the board of directors has been elected by the bulk owner, the statute requires a new election for one-third of the board by owners, other than the bulk owner, before a plan of termination may be approved. Although some of these changes seem well intentioned, it is doubtful they can be applied to existing condominiums to address the perceived abuses. They may, however, have a perverse effect by preventing absorption of units of distressed condominiums in any future downturn.