A controversy continues involving condominium units that remain empty after they are sold.
A measure that would have mandated developers sell more condo units to owner-occupants is no longer advancing at the state Legislature.
House Bill 2239 would have mandated developers to designate at least 90% of residential units to be reserved for prospective owner-occupants in the 30 days following the initial sale.
State law currently mandates 50% of units be for owner-occupants.
The Senate Consumer Protection Committee discussed the measure Tuesday but deferred it indefinitely.
Evan Oue, with the Commercial Real Estate Development Association, opposed the measure in earlier testimony.
"The current 50% owner-occupancy requirement has proven to be aligned with historical residential demand. Rarely does the immediate demand exceed the current 50% offering, based on the composition of the market and legal obligation for purchasers to occupy the unit after closing," Oue said.
"Typically, there’s not enough owner-occupant demand to justify the 90% requirement in all condominium projects. And it’s likely that a developer will lose the ability to create the essential sales momentum that is necessary for a project to be built," he said.
Supporters of HB 2239 noted the bill wouldn’t hurt a developer’s profit margins, and would allow more residents to own property.
