HOLMES BEACH – Duplex owner David Phillips was shocked to learn that if he pulls the permits to repair his hurricane-damaged structure himself, he can’t rent it out or sell it for one year.
Phillips has owned the duplex at 5404 and 5406 Holmes Blvd. since 2001 and another family member owned it before that. When addressing Holmes Beach city commissioners on Feb. 11, he said the duplex is not used as a short-term vacation rental.
“I went to the building department to see about the drywall permit. I was informed that if I take out the permit I cannot rent or sell that property for one year. I wish somebody would explain the reason behind that?” Phillips said.
In response, City Attorney Erica Augello said, “That is a state law. If you want to know the rationale behind that please feel free to contact your legislators.”
“Even under a state of emergency?” Commissioner Carol Whitmore asked.
“It’s something that the city is bound to,” Augello said in reference to Florida Statute 489.103. Item 4 in the owner’s disclosure statement contained in the statute says, “I understand that I may build or improve a one-family or two-family residence. I may also build or improve a commercial building if the costs do not exceed $75,000. The building or residence must be for my own use or occupancy. It may not be built or substantially improved for sale or lease unless I am completing the requirements of a building permit where the contractor listed on the permit substantially completed the project. If a building or residence that I have built or substantially improved myself is sold or leased within one year after the construction is complete, the law will presume that I built or substantially improved it for sale or lease, which violates the exemption.”
When addressing the commission, Phillips said, “That’s my income. You don’t care?”
“It’s not that I don’t care. State legislators make state statutes and we are bound to obey,” Augello replied.
“If I hang a sheet of drywall, I’m in violation and I’ll get tripled-fined,” Phillips said. “I heard the governor state they weren’t going to hold up people getting back into their homes. I’m not happy by any means.”
Mayor Judy Titsworth ventured a guess as to why the state law is in place.
“I don’t think they want the owner to pull the permit. They probably want to make sure it’s a certified contractor. If you live in it, you can pull a permit. You just can’t use it for a rental,” she said.
“Or sell it,” Augello added.
“Investors could buy up these places, pull the permits themselves, have unlicensed contractors do the work and we wouldn’t know,” Titsworth said. “It’s for public safety, to keep the people safe that are either buying the place or staying in it. That’s probably why they did it.”
“That doesn’t make sense to me because an investor has the money,” Phillips said. “They have a contractor that can fix it, get it done and put it back on the rental market or sell it.”
Commissioner Terry Schaefer suggested he contact State Rep. Will Robinson, adding, “I certainly understand your concern, your pain, and I certainly agree with your argument.”
Commission Chair Dan Diggins encouraged Phillips to make an appointment with Building Official Neal Schwartz to get a better understanding of this issue. Titsworth recommended he also speak with Building Department Office Manager/Emergency Operations Coordinator Kim Charron about SBA loans and FEMA regulations and noted property owners are informed of the statute when applying for a permit.
