Condominium in difficulty: state of deficiency

1Referral to the President of the Judicial Tribunal

In principle, the state of deficiency procedure is initiated at the initiative of the mayor of the commune where the building is located or the president of the public inter-communal cooperation institution (EPCI) responsible for housing.

With their agreement, this request may also be submitted by the prefect, the trustee, theprovisional administrator where designated or by co-owners representing 15% at least votes of syndicate of co-owners.

In all cases, the application must be submitted to the president of the judicial court of the place where the building is located.

They appeal to the judge to:

• Notes the situation of the building (inability to ensure conservation, safety or health of the occupants)
• And take into account the serious financial or management difficulties and the importance of the work to be carried out.

2Appointment of an expert

Before deciding on the state of deficiency, the president of the judicial court appoints one or more experts to carry out an in-depth study of the condominium.

The mission of expertise consists in:

• Recognize the importance of the financial imbalance of the syndicate of co-owners

• Establish the distribution of debts by co-owner
• Describe the nature and condition of common areas
• Determine the nature and cost of the work required to ensure the health and safety of the occupants.

It thus makes it possible to objectively establish the financial and material situation of the condominium.

3Preparation of the expert report

The designated expert(s) must submit their report to the judge within a maximum period of 3 months, renewable 1 time.

This report thus shows the extent of the financial imbalance of the syndicate of co-owners, the distribution of debts between co-owners, as well as the state of the common parts. It also determines the nature of the work to be carried out and estimates its cost, in order to guarantee the health and safety of the occupants.

Attached to his report, the expert must also report disorders in the units affecting the safety and health of persons. The absence of that annex or its content cannot be relied on to challenge the validity of the procedure or the conclusions of the expert’s report.

4Judgment pronouncing the state of deficiency

In the light of the conclusions of the expert report and after hearing or calling the parties, the President of the Court of Justice shall verify that the referral and the reality of the facts (financial difficulties, condition of the building, importance of the work, health and safety risks, inability to manage).

It then has 3 options:

• Declare the application inadmissible (this is the case if the application comes from a person who does not have standing or if the formal or procedural rules have not been respected)
• Reject the application if it considers that the conditions of the state of deficiency are not justified
• Declare the validity of the application and declare the union of co-owners to be deficient. In this case, the judge may appoint a provisional administrator to prepare the liquidation of debts and ensure urgent security interventions.

The judgment pronouncing the state of deficiency is:

• Notified the syndicate of co-owners, co-owners, the provisional administrator (if one exists), the mayor of the commune and the president of the EPCI
• And forwarded to the prefect.

The conclusions of the expert report shall be communicated with the decision of the judge.

The syndicate of co-owners or the syndic may challenge the pronouncement of the state of deficiency and the possible appointment of a provisional administrator in a 2 months delay from the notification of the judgment.

1Simplified public procurement project

When the mayor or the president of the EPCI has referred the matter to the judge, they must present at the 1^re deliberative assembly (municipal council or EPCI assembly) following the judgment a simplified public procurement project that has one the following objects:

• The expropriation of common areas of the condominium. This situation leads to the transfer of ownership of the common parts belonging to the syndicate of co-owners to a public person or a designated operator, for the purpose ofgeneral interest. These become goods of collective interest. The public person where the designated operator is then responsible for the management, maintenance and conservation of the expropriated property. If the financial imbalance proves to be too great, the total expropriation of the building can be requested.
• Rehabilitation for habitat (or other use). This is important work to rehabilitate the building. This may include, for example, maintaining residential use by improving the health, safety and performance of the building or transforming the use of the building (e.g. into activity premises, public facilities, etc.), when the housing is no longer suitable.
• The total or partial demolition of the building.

The project must include a summary (simplified) cost assessment and a plan to relocate the occupants involved. It also specifies the public authority or body for whose benefit the expropriation is sought.

2Comments from the public

The approved public procurement project is then made available for public inspection.

The public may make comments for a minimum period of1 month, under the conditions specified by order of the mayor or the president of the public inter-municipal cooperation institution.

This consultation allows the inhabitants to be informed and to gather their comments before the implementation of the project.

3Prefect's arrest and expropriation

Once the state of deficiency has been declared, expropriation, i.e. the seizure of the immovable, may be decided in favor of one of the following entities:

• Municipality
• EPCI competent in habitat matters
• Operator responsible for maintaining and ensuring the conservation of goods of collective interest
• Body responsible for the management of expropriated common areas
• Concessionaire of a development operation
• Business of construction in which the State holds the majority of the capital.

Once the public consultation period is over, the prefect will review the decision declaring the deficiency, the simplified public procurement project, the draft relocation plan and the public comments.

It then issues an order who:

• Declare thepublic utility of the proposed acquisition and determines the list of immovable or part of immovable, common parts, parcels or rights in rem in immovable property to be expropriated and the identity of the owners of those rights in rem
• Declares transferable immovables or parts of immovables, common parts, parcels or rights in rem in immovable property
• Indicates the public authority or body for the benefit of which the expropriation is being pursued
• Sets the amount of the provisional compensation granted to the owner or co-owners and commercial and professional leaseholders
• Sets the date on which the property may be taken over. This takeover takes place at least 2 months from the publication of the order declaring the public utility of the project.

This decree is published in the collection of administrative acts of the department and posted at the town hall of the location of the property.

THEexpropriating notified the decree owners and holders of rights in rem in immovable property.

Within one month of taking possession, the expropriator must continue the expropriation procedure under the conditions of an expropriation for reasons of public utility.

The expropriation compensation is also set in the conditions of an expropriation for reasons of public utility. The value of the property is assessed by taking into account the amount of work necessary for the conservation of the building provided for in the appraisal report or those prescribed for dwellings that have been the subject of a unsanitary order.