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A federal appeals court in the U.S. recently upheld the implementation of the SB 264 Law, a controversial piece of legislation pushed by Florida Governor Ron DeSantis regarding the purchase of properties by foreign citizens.
The law imposes restrictions on property purchases in the state by citizens from several countries considered "foreign adversaries," including Cuba, Venezuela, China, Iran, North Korea, Russia, and Syria.
The judicial ruling, issued by the Eleventh Circuit Court of Appeals based in Atlanta, represents a political victory for the state administration and a warning signal for various civil rights advocacy organizations.
A split decision that authorizes territorial restrictions
With a decision of two votes to one, the court allowed Florida to implement Law SB 264, passed in 2023, which prohibits the majority of Chinese citizens from acquiring land or property within a 16-kilometer radius of facilities deemed strategic for state security, such as military bases or critical communication infrastructure.
For citizens of other nations -including Cubans and Venezuelans- the restrictions are less severe, but still significant: they are also prohibited from purchasing properties in certain areas if they do not have permanent residency or U.S. citizenship.
The state's attorney general, James Uthmeier, celebrated the decision on social media with a strong statement.
"We scored a major victory in the U.S. Court of Appeals for the Eleventh Circuit, defending our law that prevents the possession of land in Florida by the Chinese Communist Party," he wrote.
Who is affected and what exceptions exist?
According to the terms of the law, the restrictions primarily affect citizens of the mentioned countries who are not permanent residents or citizens of the U.S.
Those who hold visas other than tourist ones -such as workers, students, or asylum seekers- can, however, acquire a single property of up to 8,000 square meters, provided it is located more than eight kilometers away from any military or critical facilities.
This legal margin has been interpreted as a loophole to allow certain legal immigrants to continue investing in real estate within the state, but it has not quelled the criticisms that label the law as openly discriminatory.
Various organizations such as the American Civil Liberties Union (ACLU) and the Chinese-American Legal Defense Alliance (CALDA) have strongly spoken out against the legislation.
Both entities filed lawsuits in an attempt to block its implementation, arguing that it represents a modern version of the so-called alien land laws, regulations that in the first half of the 20th century prohibited Asian immigrants from acquiring land in several U.S. states, including Florida.
Clay Zhu, president of CALDA, pointed out that SB 264 "explicitly discriminates against Chinese immigrants and has chilling effects among Asian Americans in Florida who simply want to buy a home."
For her part, Ashley Gorski, senior attorney for the ACLU's National Security Project, stated that "everyone, regardless of where they came from, should be free to buy homes and build their lives in Florida without fear of discrimination."
In a dissenting vote, Judge Charles Wilson warned that this law could revive a modern resurgence of exclusionary policies based on nationality.
He also questioned the legality of a state regulating foreign investment, a duty that constitutionally falls under the federal government through the Committee on Foreign Investment in the United States (CFIUS).
Judicial arguments and legal controversy
Despite the criticisms, the majority of the court backed the validity of the regulatory framework promoted by DeSantis.
Judge Robert Luck, author of the majority opinion, found that the plaintiffs did not meet the requirements to be considered direct affected parties.
In particular, he cited the case of Yifan Shen, a Chinese citizen residing in Florida with a work visa since 2019, stating that the law did not apply to him as his "domicile" was not legally established in China.
The initial complaint, filed in 2023 in a federal court in Tallahassee, alleged that SB 264 violated constitutional rights related to equal protection and the Fair Housing Act, but the court dismissed these arguments, finding that the registration requirements for foreign buyers did not contravene federal housing regulations.
Economic impact: A blow to the international real estate market
Florida is the leading state in the United States for real estate transactions with international buyers.
According to 2024 figures from the Miami Realtors association, nearly 20% of all foreign home purchases in the U.S. are concentrated in Florida, with buyers from Venezuela, Argentina, Colombia, and Canada particularly active.
There is also a notable presence of Cuban investors, many of whom are looking to secure a property for family use, investment, or future migration.
Economists warn that the implementation of this law could slow down the growth of the real estate sector, especially in the counties of South Florida, where foreign investments have historically been an economic pillar.
The decline in demand could result in less market dynamism, a decrease in property values, and collateral effects in sectors such as construction, financing, and residential tourism.
Ron DeSantis's government has introduced the law as part of an effort to "protect state sovereignty" against foreign interference, particularly from the Chinese government.
However, critics argue that behind this narrative of security lies a dangerous strategy of exclusion that could strengthen anti-immigrant sentiments and stigmatize entire communities based on their country of origin.
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