Florida Condo Owners Given Unique Opportunity To ‘Swap' Their Unit for House Down Payment Amid State's ‘Condo Crisis'

Yahoo

14 hours ago

Florida condo owners are battling a wave of housing issues, including rising HOA fees and skyrocketing insurance costs, with little to no relief from government officials.
But Phil Thompson, owner of a luxury custom homebuilder and home-renovation company, is hoping to quell the concerns of millions of condo owners in the Sunshine State with an innovative housing solution.
In a swap that seems too good to be true, Thompson is offering to take condos out of the hands of frustrated Floridians and use their value as a down payment for a home under his own company, Coral Reef General Contracting in Fort Pierce.
'As far as the rules of condos, we're entertaining every offer from sellers,' Thompson tells Realtor.com®.
Despite a general shift toward single-family homes in Florida, real estate agents still have a vested interest in condos, which serve a clientele who prefer their convenience, lower maintenance, or specific lifestyles.
The median list price of Florida homes in May was $439,999, and condo ownership has become less affordable, particularly for those on fixed incomes in Florida, and many are looking for a way out.
In what Thompson claims is a first-of-its-kind 'condo-swap' in Florida, he says he's not worried if a condo appears battered, broken, or run down. With prior experience working with New York City's high-rises, he assures Florida owners that the sky's the limit when it comes to taking in a less-than-perfect condo.
'We'll take a look from the best to the worst conditions,' says Thompson. 'We're not adverse to taking condominiums that have structural problems. I'm not concerned with that because of my structural experience from Manhattan.'
Thompson sympathizes with condo owners in Florida who are scrambling to sell their property and saw an opportunity to aid those looking to level up their housing situation.
'So we're not worried about any of these problems,' he adds. 'They're all fixable. Our main concern is to get our buyers here and take the burden off our buyers' backs and make it a nice, transparent, smooth transaction for them.'
Coral Reef is offering housing options on South Hutchinson Island that range from $1,500,000 to $3,000,000—depending on the property's proximity to the coastline and other amenities.
Thompson says the incentive to ditch an old condo has drummed up enough marketing by itself. Despite a small loss here and there, Thompson is satisfied with the program and its impact.
'On a case-by-case basis, I may lose a few dollars on the condo, but the fact is that we bring our buyer from a negative situation into a positive situation. And it's all about word of mouth—that's how you grow, and that's how you make it in this business,' he adds.
In April, both chambers of the Florida Legislature voted unanimously to pass House Bill 913, addressing endless complaints over the rising fees for condominium owners, despite pushback from Gov. Ron DeSantis.
Essentially, the bill would aid condominium associations in setting up credit lines and investing funds that would contribute to necessary building repairs instead of immediately looking to owners for the money.
'You had people that were going to be forced out of their condos potentially because of legislation that had come down the pipe,' DeSantis said during a May 20 appearance in Tampa, referencing recent safety laws, as reported by NBC Miami.
Condo reform laws continue after a devastating collapse of the Champlain Towers South condo in Surfside in 2021, which killed 98 people. After the incident, there was a massive effort to improve safety conditions regarding condos over 30 years of age and three stories tall. The new safety laws called for 'milestone' inspections and sought to invest in reserve funds for repairs and maintenance.
Lawmakers such as state Rep. Vicki Lopez (R-Miami) have backed the bill, claiming it balances the need for structural safety with financial flexibility, particularly in the context of the rising costs of repairs and insurance for Florida condos, as reported by the Florida Phoenix.
'This incredible bill addressing the condominium crisis we have all heard about for the last year gives a lot of financial relief,' Lopez says.
The bill also introduces electronic voting, making it easier for condo owners to participate in decisions, which could be DeSantis' main point of objection.
Despite some reservations, Florida lawmakers are confident that the governor will sign the bill, as he's spoken about the condo issue on several occasions in the past couple of months.
'We have this condo issue, that legislation that caused these crushing assessments,' DeSantis said during a press conference in Fruitland Park. 'We know people need relief from that. We've got to do it. The Senate's got a great product that can do it.'
HB 913 has been sent to the governor's desk for his signature. Once signed, the bill goes into effect on July 1.
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