THE ANTI-CONDOMINIUM CONVERSION MOVEMENT: A VIOLATION OF CONSTITUTIONAL PROPERTY RIGHTS
A condominium conversion ("condo conversion") occurs when an existing building under a single ownership, such as rental apartment, is converted into individual for-sale condominium units. Until recently, demand for for-sale units in the real estate market grew to such extent that along with the increase in newly constructed homes, property owners have joined in the ring to convert their rental properties to individual condominiums which they can then sell to buyers. To preserve rental stock and affordable housing for tenants who cannot afford to purchase a home, more local jurisdictions have imposed restrictions to limit, and sometimes even stop, conversions from being processed.
Excessive governmental regulations on condominium conversions, however, is not a valid exercise of police power but an unconstitutional taking of private property from private citizens and a restraint on alienation. Ensuring affordable housing should not be the responsibility of private landlords and property owners, but rather the state and local government. While local jurisdictions may regulate development for zoning and overall urban planning purposes, dictating how private citizens should handle their personal investments and how much profit they may acquire is contrary to constitutional principles and is more akin to a socialist economy than the market economy America is built upon.
When a property owner determines that his investment is no longer turning a profit as an apartment, it is his constitutional right to seek a more profitable alternative. By converting a rental property to condominiums, the owner offers the opportunity to more buyers to become ...