A federal appeals court has affirmed Florida’s controversial law restricting property purchases by individuals from China. The ruling allows the state to enforce the ban, which targets "foreign principals" deemed a concern, and could pave the way for similar legislation in other states. The law, signed in 2023, prohibits Chinese nationals not residing in the U.S. as citizens or permanent residents from buying land and certain properties.
Key Takeaways
- A federal appeals court has upheld Florida’s law banning most Chinese citizens from buying real estate.
- The court ruled that the law does not violate federal statutes or discriminate based on national origin.
- The decision allows Florida to enforce the ban, impacting the state’s housing market.
The Florida Law and Its Intent
In May 2023, Florida Governor Ron DeSantis signed Senate Bill 264 into law. This legislation specifically identifies China as a "foreign country of concern" and prohibits individuals domiciled in the People’s Republic of China, who are not U.S. citizens or lawful permanent residents, from acquiring agricultural land and specific real estate within the state. Governor DeSantis stated the bill’s purpose was to combat "foreign malign influence" and protect the state’s security from entities like the Chinese Communist Party.
Legal Challenges and Court Rulings
Shortly after the law’s enactment, the American Civil Liberties Union (ACLU) filed a lawsuit on behalf of four Chinese citizens residing in Florida and a real estate brokerage. They argued the ban violated the 14th Amendment and the Fair Housing Act, asserting it constituted discrimination based on national origin. The case reached the 11th U.S. Circuit Court of Appeals, which, in a 2-1 decision, ruled that the plaintiffs lacked the legal standing to challenge the ban. The court determined that the law’s restrictions applied to individuals "domiciled" in China, and the plaintiffs involved in the case had resided in Florida for years. The court also found no violation of federal anti-discrimination laws, citing national security and land security concerns as motivations for the law.
Impact on Florida’s Housing Market
With the court’s decision, Florida can now enforce the ban. Experts suggest this could affect the state’s real estate market, particularly the luxury segment, as Chinese buyers often purchase higher-value properties. While the ban might lead to decreased competition for luxury homes, its overall impact on the broader housing market is expected to be limited, as Chinese nationals represent a smaller portion of international buyers in Florida compared to Canadians and Latin Americans. Many believe the law is more of a politically popular move than a measure significantly benefiting middle-class Floridians.
Broader Implications
The ACLU expressed disappointment with the ruling, vowing to continue fighting laws they deem discriminatory. The court’s decision has raised concerns among civil rights advocates, who draw parallels to historical "alien land laws." The ruling not only allows Florida to enforce its ban but also sets a precedent that could encourage other states to implement similar restrictions on foreign property ownership.
Sources
- Florida Issues Crackdown on Chinese Citizens Buying Real Estate, Newsweek.
- Florida Cracks Down on Chinese Citizens Buying Property, WFTV.
- Chinese Citizens Eye South Florida Property Market, Newsweek.
- Court Refuses to Block Chinese Property Law, | Florida Realtors.