Bill Text: FL S1272 | 2010 | Regular Session | Introduced
Bill Title: Condominium and Homeowners' Associations [CPSC]
Spectrum: Slight Partisan Bill (Republican 2-1)
Status: (Failed) 2010-04-30 - Died in Committee on Regulated Industries [S1272 Detail]
Download: Florida-2010-S1272-Introduced.html
Florida Senate - 2010 SB 1272 By Senator Ring 32-00081A-10 20101272__ 1 A bill to be entitled 2 An act relating to condominium and homeowners’ 3 associations; amending s. 718.116, F.S.; providing 4 that a person acquiring title to a condominium by 5 foreclosure or recorded deed is liable for certain 6 additional unpaid expenses and assessments; clarifying 7 the definition of “successor or assignee”; requiring 8 that certain first mortgagees exercise property 9 preservation rights under certain circumstances; 10 authorizing a homeowners’ association to preserve or 11 maintain the unit in a safe condition under certain 12 circumstances; requiring that certain costs incurred 13 by an association be deemed an individual assessment 14 against the unit being foreclosed; providing that a 15 first mortgagee is liable for certain special 16 assessments levied against a unit during the pendency 17 of a foreclosure action under certain circumstances; 18 authorizing an association to initiate certain causes 19 of action; authorizing an association to recover 20 reasonable attorney’s fees incurred as a result of 21 pursuing certain causes of action; amending s. 22 720.3085, F.S.; providing that a first mortgagee is 23 liable for certain special assessments levied against 24 a unit during the pendency of a foreclosure action 25 under certain circumstances; requiring that certain 26 first mortgagees exercise property preservation rights 27 under certain circumstances; authorizing a homeowners’ 28 association to preserve or maintain the unit in a safe 29 condition under certain circumstances; requiring that 30 certain costs incurred by an association be deemed an 31 individual assessment against the unit being 32 foreclosed; providing an effective date. 33 34 Be It Enacted by the Legislature of the State of Florida: 35 36 Section 1. Paragraphs (b) and (g) of subsection (1) of 37 section 718.116, Florida Statutes, are amended, and paragraphs 38 (h), (i), and (j) are added to that subsection, to read: 39 718.116 Assessments; liability; lien and priority; 40 interest; collection.— 41 (1) 42 (b) The liability of a first mortgagee or its successor or 43 assignees who acquire title to a unit by foreclosure or by 44 recorded deed in lieu of foreclosure for the unpaid assessments 45 that became due beforeprior tothe mortgagee’s acquisition of 46 title is limited to the lesser of: 47 1. The unit’s unpaid common expenses and regular periodic 48 assessments thatwhichaccrued or came due during the 12649 months immediately preceding the acquisition of title and for 50 which payment in full has not been received by the association; 51 or 52 2. One percent of the original mortgage debt. The 53 provisions of this paragraph apply only if the first mortgagee 54 joined the association as a defendant in the foreclosure action. 55 Joinder of the association is not required if, on the date the 56 complaint is filed, the association was dissolved or did not 57 maintain an office or agent for service of process at a location 58 which was known to or reasonably discoverable by the mortgagee. 59 (g) For purposes of this subsection, the term “successor or 60 assignee” as used with respect to a first mortgagee includes 61 only a subsequent holder of the first mortgage who acquires the 62 first mortgage before any action to foreclose the first mortgage 63 is filed. 64 (h) In addition to the first mortgagee’s obligations set 65 forth in paragraph (b), as to an individual unit, if the first 66 mortgagee institutes a foreclosure action against the unit 67 owner, the first mortgagee must exercise any property 68 preservation rights available under the mortgage being 69 foreclosed. If the first mortgagee fails to timely fulfill its 70 obligations under this section, the association may undertake 71 any reasonable action to otherwise preserve and maintain the 72 unit in a safe condition. Costs incurred by the association in 73 exercising this right shall be deemed an individual assessment 74 against the unit for which the association may pursue a lien or 75 foreclosure action. 76 (i) In addition to the first mortgagee’s obligations set 77 forth in paragraph (b), if the first mortgagee institutes a 78 foreclosure action against the unit owner, the first mortgagee 79 is liable for any special assessments levied against the unit 80 during the pendency of such action for damage to the common 81 elements, roof, structural components of the building, and 82 mechanical, electrical, and plumbing elements serving the 83 building caused by windstorm, fire, or other casualty or act of 84 God, the purpose for which is to repair, restore, or replace the 85 common elements to pre-loss conditions, and which are needed to 86 pay for any deductibles or increase in the association’s 87 casualty insurance premiums. 88 (j) The association may bring an action in its name to 89 foreclose a lien for assessments in the same manner that a 90 mortgage of real property is foreclosed, as well as an action to 91 recover a monetary judgment for the unpaid assessments without 92 having any claim of lien. The association is entitled to recover 93 its reasonable attorney’s fees incurred in a lien foreclosure 94 action or an action to recover a monetary judgment for unpaid 95 assessments. 96 Section 2. Subsection (2) of section 720.3085, Florida 97 Statutes, is amended to read: 98 720.3085 Payment for assessments; lien claims.— 99 (2)(a) A parcel owner, regardless of how his or her title 100 to property has been acquired, including by purchase at a 101 foreclosure sale or by deed in lieu of foreclosure, is liable 102 for all assessments that come due while he or she is the parcel 103 owner. The parcel owner’s liability for assessments may not be 104 avoided by waiver or suspension of the use or enjoyment of any 105 common area or by abandonment of the parcel upon which the 106 assessments are made. 107 (b) A parcel owner is jointly and severally liable with the 108 previous parcel owner for all unpaid assessments that came due 109 up to the time of transfer of title. This liability is without 110 prejudice to any right the present parcel owner may have to 111 recover any amounts paid by the present owner from the previous 112 owner. 113 (c) Notwithstanding anything to the contrary contained in 114 this section, the liability of a first mortgagee, or its 115 successor or assignee as a subsequent holder of the first 116 mortgage who acquires title to a parcel by foreclosure or by 117 recorded deed in lieu of foreclosure for the unpaid assessments 118 that became due before the mortgagee’s acquisition of title, 119 shall be the lesser of: 120 1. The parcel’s unpaid common expenses and regular periodic 121 or special assessments that accrued or came due during the 12 122 months immediately preceding the acquisition of title and for 123 which payment in full has not been received by the association; 124 or 125 2. One percent of the original mortgage debt. 126 (d) In addition to the first mortgagee’s obligations set 127 forth in paragraph (c), if the first mortgagee institutes a 128 foreclosure action against the unit owner, the first mortgagee 129 is liable for any special assessments levied against the unit 130 during the pendency of such action for damage to the common 131 elements, roof, structural components of the building, and 132 mechanical, electrical, and plumbing elements serving the 133 building caused by windstorm, fire, or other casualty or act of 134 God, the purpose for which is to repair, restore, or replace the 135 common elements to pre-loss conditions, and which are needed to 136 pay for any deductibles or increase in the association’s 137 casualty insurance premiums. 138 (e) In addition to the first mortgagee’s obligations set 139 forth in paragraph (c), as to an individual unit, if the first 140 mortgagee institutes a foreclosure action against the unit 141 owner, the first mortgagee must exercise any property 142 preservation rights available under the mortgage being 143 foreclosed. If the first mortgagee fails to timely fulfill its 144 obligations under this section, the association may undertake 145 any reasonable action to otherwise preserve and maintain the 146 unit in a safe condition. Costs incurred by the association in 147 exercising this right shall be deemed an individual assessment 148 against the unit for which the association may pursue a lien or 149 foreclosure action. 150 151 The limitations on first mortgagee liability provided in this 152 subsectionby this paragraphapply only if the first mortgagee 153 filed suit against the parcel owner and initially joined the 154 association as a defendant in the mortgagee foreclosure action. 155 Joinder of the association is not required if, on the date the 156 complaint is filed, the association was dissolved or did not 157 maintain an office or agent for service of process at a location 158 that was known to or reasonably discoverable by the mortgagee. 159 Section 3. This act shall take effect July 1, 2010.
